The Cracks in Our Foundations

The narrative often presented in the media tends to frame Latin America's infrastructure challenges as unfortunate consequences of systemic failures—mismanagement, corruption, or insufficient investment. However, a closer examination reveals that these vulnerabilities are not merely accidental but are, to a significant extent, the result of deliberate design. By maintaining weak infrastructure, both local and global powers can exert control over the region’s development and, by extension, its role on the global stage.

Weak infrastructure in Latin America serves multiple purposes for those in power. On a local level, political elites may benefit from the status quo, as fragile infrastructure allows them to manipulate resources and maintain patronage networks. The cyclical need for emergency responses and reconstruction efforts provides opportunities for corruption and the entrenchment of power. In this environment, investments in long-term, sustainable infrastructure are deprioritized in favor of short-term projects that offer immediate political gains but do little to address the underlying vulnerabilities.

Global powers, through international financial institutions and economic policies, have historically influenced infrastructure development in the region. Loans and aid packages often come with strings attached, ensuring that infrastructure projects serve the interests of the lenders rather than the long-term needs of the local population. By keeping Latin America dependent on external assistance, these global actors can maintain a grip on the region’s economic and political autonomy.

Impact of Infrastructure Failures

In the Dominican Republic, recent unauthorized modifications to the traffic control system in Santo Domingo led to severe traffic disruptions, highlighting the risks posed by inadequate oversight and coordination between public and private entities. The incident not only disrupted daily life but also revealed significant gaps in the management of critical infrastructure.

This is but a symptom of a larger systemic problem.?

Santo Domingo, the capital of the Dominican Republic, has experienced rapid population growth over the last two decades, with an annual increase of 2 to 3%. This surge has added over 3 million people to the city's population, placing significant strain on its already fragile infrastructure. The city now houses more than 4 million residents in its metropolitan area, yet much of its urban planning and essential services—such as plumbing, transportation, and electricity—have lagged behind.

The issue of transportation, in particular, is a major concern. As of 2023, there are approximately 1.2 million registered vehicles in Santo Domingo, which means that for every three people, there is nearly one vehicle. This figure does not account for unregistered vehicles, taxis, or motorcycles, which further congest the city’s streets. The existing road infrastructure was not designed to handle this level of vehicular traffic, leading to chronic traffic jams, poor air quality, and high accident rates. According to estimates, residents spend an average of three to four hours in traffic each day, costing the economy close to a billion dollars a year in lost productivity.

Public transportation is also insufficient, with the Santo Domingo Metro and OMSA buses covering only a fraction of the city’s commuting needs. Despite recent expansions, the metro system transports roughly 350,000 passengers per day, a small portion of the population, leaving many dependent on cars or informal transit systems like "carros públicos" and motorcycles. This not only exacerbates the traffic problem but also contributes to environmental concerns, as the increase in vehicles has led to higher emissions, contributing to poor air quality in many parts of the city.

In terms of infrastructure, the city's plumbing and electrical grids are outdated and under-resourced. Many neighborhoods face intermittent water supply, and there are frequent electricity blackouts, especially during peak demand. This combination of rapid urbanization and weak infrastructure presents a significant challenge to the city’s sustainability and the quality of life of its residents.

One of the primary obstacles to business growth in the Dominican Republic is its transportation infrastructure, which has struggled to keep pace with economic expansion. Roads and highways, particularly those connecting major trade routes, are vital to economic activity, yet approximately 30% of the country's roads remain unpaved, according to the World Bank. This lack of investment increases transportation costs, hampers access to markets, and disproportionately affects smaller businesses in rural areas.

Urban congestion, especially in the capital, Santo Domingo, is another pressing issue. Traffic delays and inefficiencies cost the country an estimated USD 1 billion annually due to lost time and fuel wastage. These challenges limit the mobility of goods and people, creating bottlenecks that slow economic progress. Expanding road infrastructure, improving public transportation systems, and enhancing connectivity to less-developed regions are necessary steps to ensure more equitable economic growth across the country.

Approximately 25% of the population is at risk of flooding, and a significant portion of the country's population lives in coastal areas that are increasingly threatened by rising sea levels and storm surges. This vulnerability underscores the urgent need for climate-resilient infrastructure.

The Global Facility for Disaster Reduction and Recovery estimates that natural disasters cost the DR approximately USD 420 million annually in damages, with major events like Hurricane Maria in 2017 causing USD 1.2 billion in destruction. Improving urban drainage systems, reinforcing coastal defenses, and updating building codes to withstand earthquakes are essential strategies for protecting infrastructure from future disasters. In addition to these traditional measures, investments in "green infrastructure," such as mangrove restoration and watershed management, offer cost-effective solutions that can enhance climate resilience.

A Three-Dimensional Approach: Building for the Future

The Dominican Republic is at a critical juncture. The country's infrastructure problems are no longer just inconveniences but are growing daily, creating stress, anger, and frustration among its citizens. These issues are seriously affecting the productivity of the private sector, limiting the response capabilities of emergency services, and damaging public perception of a government that aspires to position the country as a regional financial hub.?

From clogged roads in urban centers like Santo Domingo to the inconsistent power supply, the inability to handle these fundamental challenges limits the country's growth potential. If these problems persist, they could derail efforts to transform the Dominican Republic into a more modern and competitive nation. However, solutions exist, and they require thinking beyond the present. It's time to adopt a bold, three-dimensional approach to planning.

The key idea here is that “if you plan for today’s problems, you’ll end up building for yesterday’s needs”. Solutions that only address current pain points are insufficient because they are outdated by the time they are completed. The future will soon catch up, and the cycle of inadequacy will continue.?

Addressing the growing congestion and transportation challenges in the Dominican Republic requires more than incremental improvements. A three-dimensional solution that includes both an underground road network and a second overground layer dedicated to independent public transportation systems is essential. This bold vision redefines how transportation is managed, making it more efficient and scalable for future urban growth.

A three-dimensional infrastructure approach would also have significant implications for the country's ability to respond to emergencies. With a decongested surface and alternative underground routes, emergency services could move faster, reducing response times and saving lives. An efficient, multi-layered transport system would also allow for more effective disaster evacuation plans in the face of hurricanes or other natural disasters, enhancing national resilience.

The TEDCAP Approach

The path forward for Latin America requires a holistic approach to infrastructure development and management. This involves not only addressing the immediate issues but also planning for future challenges. Governments must prioritize infrastructure resilience in their policy agendas, while also fostering a culture of responsibility and accountability among citizens and the private sector.

The Dominican Republic, like many Caribbean nations, faces the critical challenge of modernizing its infrastructure while preparing for the growing threats of climate change and natural disasters. In recent years, the country has seen significant economic growth and investment, but this progress is hampered by vulnerabilities in key sectors, such as energy, transportation, telecommunications, and water management. To ensure long-term resilience and economic sustainability, a strategic approach is needed that incorporates private sector investment, regulatory reforms, and disaster preparedness.

Energy Infrastructure: Modernization and Diversification

The Dominican Republic’s energy sector is a mix of public and private ownership, with both sectors playing critical roles. However, the country's energy infrastructure faces significant challenges. The national grid, much of which is outdated, experiences high transmission losses (estimated between 30-35%), leading to inefficiencies and power outages. These problems are exacerbated by the country’s heavy reliance on fossil fuels—over 85% of energy generation depends on oil and coal, making the system vulnerable to price fluctuations in global energy markets. Furthermore, hurricanes and tropical storms frequently disrupt energy supplies, as seen during Hurricane Maria in 2017, when widespread outages occurred.

To address these vulnerabilities, it is crucial to modernize the energy grid, reduce transmission losses, and invest in renewable energy sources. While there has been some progress, such as the construction of the Punta Catalina coal plant, which has improved energy stability, more is needed. The government should target increasing renewable energy’s share to 30% by 2030. This can be achieved by incentivizing private investment through public-private partnerships (PPPs) that focus on solar and wind energy, particularly in regions with high potential, such as Pedernales and Barahona. In addition, investments should be made to underground critical transmission lines in hurricane-prone areas to protect them from storm damage.

Disaster preparedness in the energy sector must also be a priority. Establishing microgrids in rural and vulnerable areas can ensure that local communities have access to power during large-scale outages. This would not only improve resilience but also provide sustainable energy solutions that can operate independently during natural disasters.

Transportation Infrastructure: Enhancing Connectivity and Resilience

Transportation infrastructure, encompassing roads, ports, and airports, is the backbone of economic growth in the Dominican Republic. However, the country’s road network, largely publicly owned, suffers from congestion and vulnerability to natural disasters, particularly in urban areas like Santo Domingo, where traffic density is among the highest in the Caribbean. The country has more than 4.8 million registered vehicles as of 2022, and the number continues to grow, placing increasing strain on roads that are already in poor condition.

Flooding poses a significant risk to transportation infrastructure, with coastal roads and low-lying areas frequently impacted during the rainy season. Floods can cause severe damage to roads and bridges, disrupting trade and economic activities. Upgrading the country’s transportation network to improve resilience is essential. This includes elevating and reinforcing key routes, such as the Malecón in Santo Domingo, which is vulnerable to storm surges. The government should also focus on improving drainage systems to prevent water accumulation during storms.

Public transportation also requires modernization to reduce congestion and environmental impact. Expanding the Santo Domingo Metro and integrating smart traffic systems could significantly alleviate the burden on roads while providing a more sustainable means of urban transport. By streamlining the approval process for transport projects and offering co-financing opportunities with private investors, the government can attract the necessary funds to upgrade and expand critical infrastructure.

Telecommunications and Digital Infrastructure: Bridging the Digital Divide

In today’s rapidly digitizing world, telecommunications and digital infrastructure are vital for economic competitiveness and social inclusion. In the Dominican Republic, this sector is primarily in the hands of private companies like Claro and Altice, who have made strides in expanding services, particularly in urban areas. However, there remains a significant digital divide between urban centers and rural regions, where reliable high-speed internet access is limited. In rural areas such as Elías Pi?a and Pedernales, digital infrastructure is insufficient, limiting access to critical services such as education, healthcare, and e-commerce.

To bridge this divide, targeted investments in expanding broadband access to underserved regions are necessary. This would involve building more communication towers, especially in isolated areas, and upgrading existing infrastructure to improve connectivity. Moreover, strengthening telecommunications infrastructure to withstand hurricanes and tropical storms is vital, as recent storms have shown that towers and cables are highly vulnerable to damage, leading to widespread communication disruptions.

Disaster resilience in telecommunications can be enhanced by using hardier materials for communication towers and incorporating more underground wiring to reduce the impact of high winds and flooding. Rapid-response telecom teams should also be established to restore services quickly after disasters, ensuring that emergency communication lines are functional when needed most.

Water and Waste Management: Securing Resources and Sustainability

Water and waste management are two critical infrastructure sectors in the Dominican Republic, both predominantly managed by public entities such as CAASD (Corporación del Acueducto y Alcantarillado de Santo Domingo) and INAPA (Instituto Nacional de Aguas Potables y Alcantarillados). These sectors face significant challenges due to water scarcity and inadequate waste disposal systems. The southern region of the country, in particular, is prone to droughts, and water systems often struggle to meet demand. Additionally, waste management in urban areas like Santo Domingo is severely overburdened, with landfills such as Duquesa frequently overwhelmed.

The government must prioritize investments in sustainable water management systems, particularly in drought-prone areas. Desalination plants, such as the project underway in Pedernales, offer a long-term solution by providing reliable freshwater to regions that suffer from shortages. Similarly, modernizing waste management facilities and implementing more comprehensive recycling programs would significantly reduce the pressure on existing landfills and mitigate environmental pollution.

In the face of natural disasters, water and waste infrastructure must be made more resilient. Flood-resistant water treatment plants and improved stormwater drainage systems are essential to protect water quality during storms and prevent contamination. Additionally, ensuring that waste disposal services remain operational after disasters is critical to public health, as delayed waste collection can lead to outbreaks of disease.

Regulatory Reforms and Incentives for Sustainable Infrastructure

To attract the necessary investment for infrastructure improvements, the Dominican government must focus on regulatory reforms and transparency initiatives. Establishing a one-stop regulatory framework that streamlines the approval process for infrastructure projects will reduce delays and encourage private sector participation. This framework should include transparency measures, such as mandatory public disclosure of project details and regular audits by independent agencies, to ensure accountability and efficient use of funds.

Moreover, offering incentives for sustainable infrastructure projects is essential for encouraging green development. Introducing green bonds and tax credits for projects that meet sustainability criteria—such as those that incorporate renewable energy or climate-resilient design—will help ensure that new infrastructure is both modern and environmentally responsible. A regional Climate Resilience Fund, supported by both public and private sectors, could also provide crucial financial support for projects that enhance the country’s ability to withstand the impacts of climate change.

By focusing on these critical areas—energy, transportation, telecommunications, and water management—the Dominican Republic can build an infrastructure network that is not only modern and efficient but also resilient to the growing threats of climate change and natural disasters. With the right combination of private investment, public oversight, regulatory reform, and disaster preparedness, the country can lay the foundation for sustainable, long-term growth that benefits all its citizens.

Recovery and Restoration: Better than Normal

The recovery and restoration of critical infrastructure following damage is a pivotal step in ensuring the resilience and functionality of society.

As a sad case study, on a particularly rainy day in Santo Domingo, the collapse of a wall at the 27 de Febrero and Máximo Gómez underpass led to a tragic event. The collapse resulted in the death of 9 people—5 women and 4 men—who were trapped in five vehicles beneath the rubble. Heavy rainfall compounded the difficulty of the rescue operation, which lasted over 5 hours. The structural damage and necessary repairs cost over 250 million pesos (around $4.3 million USD), and it took 5 months to restore the underpass.

Though localized, this incident highlights the significant resources required for a comprehensive and holistic recovery strategy.The event also exposed weaknesses in emergency response and infrastructure resilience, raising concerns about the preparedness for larger-scale disasters.

This process goes beyond mere repairs; it encompasses the strategic rebuilding and enhancement of systems that are essential for the safety, health, and economic stability of communities. Effective recovery and restoration efforts not only address immediate damage but also integrate lessons learned to bolster infrastructure against future disruptions. By prioritizing these efforts, we safeguard the continuity of essential services, minimize economic losses, and reinforce our collective ability to withstand and recover from future challenges.

As the frequency and intensity of hurricanes in the Caribbean are projected to increase due to climate change, it is vital that recovery efforts not only aim to restore pre-disaster conditions but also focus on building resilience against future events.

Current projections indicate that by 2050, annual losses from natural disasters in the Caribbean could reach $22 billion, highlighting the urgent need for investment in disaster-resilient infrastructure, especially in energy grids, water management systems, and transportation networks. For the Dominican Republic, strengthening public-private partnerships and mobilizing international funds will be critical in ensuring that recovery efforts lay the foundation for a more resilient and sustainable future. By adopting these measures, the country can better withstand future disasters, ensuring quicker recovery times and minimizing long-term economic and social impacts.

A Call for Sovereign Infrastructure Development

Understanding that the systemic weaknesses in Latin American infrastructure are, in part, by design rather than by accident, highlights the need for a strategic shift. The region must move towards sovereign infrastructure development, where investments are made with the long-term interests of the local population in mind rather than the short-term gains of political elites or the strategic interests of global powers.

This requires a rethinking of how infrastructure projects are planned, financed, and executed. Local governments, in collaboration with the private sector and civil society, must take control of their development agendas, prioritizing projects that enhance regional integration, economic resilience, and social equity. Additionally, there must be a push to reduce dependency on foreign capital and expertise, fostering the growth of local industries and capabilities that can sustain infrastructure development over the long term.

The path forward is not without challenges, but by recognizing the true nature of the systemic vulnerabilities in their infrastructure, Latin American nations can begin to chart a course towards greater independence and stronger, more resilient economies.

With visionary leadership and investment in innovative infrastructure, the Dominican Republic can overcome its current challenges and establish itself as a resilient, future-ready nation capable of thriving in a complex global landscape.