Scaling-up small and microenterprise programs in the context of political-economic crisis : the case of the Dominican Republic

Abstract

This study critically assesses the relevance of the scaling-up process to the resolution of unemployment and poverty as they exist in the urban informal sector in the Dominican Republic. This thesis includes chapters reviewing current theories of the informal sector, the progression of SME programs from conceptualization to scaling-up, the political-economy of the Dominican Republic, and finally, an evaluation of the scaling-up institution, FONDOMICRO. The conclusion of this study is that FONDOMICRO is irrelevant in resolving the fundamental problems of unemployment and poverty because it lacks the capacity to alter the political and economic structures from the status-quo. Rather, FONDOMICRO is designed to give assistance to relatively large businesses that are being squeezed from credit sources in the formal system due to restrictive monetary policies. FONDOMICRO is a parallel intervention supportive of traditional economic development strategies. (Abstract shortened by UMI.)