Why did agriculture become less central to the Dominican economy in the late 20th century?

Agriculture ceased to be the economic mainstay of the Dominican Republic in the late 20th century as the nation’s economy became more diversified. This shift was driven by several key factors:1

• Economic Diversification: The economy expanded into sectors such as manufacturing, telecommunications, construction, finance, and trade. The government notably encouraged the establishment of foreign-owned factories, known as maquiladoras, in tax-free zones.1
• Growth of Tourism: Since the mid-1980s, tourism emerged as a vital source of foreign exchange. The development of resorts and infrastructure on the country's coasts significantly bolstered the service sector.2
• Market Challenges: While sugarcane remained a primary cash crop, the global decline in sugar prices during the 20th century reduced the relative economic importance of traditional agricultural exports.13

This transition toward a mixed economy accelerated urbanization and contributed to the growth of the middle class, though agriculture remains an important component of the national economy today.1