Dominica has a Westminster-style parliamentary government, and there are two major political parties–the Dominica Labour Party (the majority party), and the Dominica United Workers Party. The Dominica Freedom Party has lost its party base and is no longer a factor in elections. A president and prime minister make up the executive branch. Nominated by the prime minister in consultation with the leader of the opposition party, the president is elected for a 5-year term by the parliament. The president appoints as prime minister the leader of the majority party in the parliament and also appoints, on the prime minister’s recommendation, members of the parliament from the ruling party as cabinet ministers. The prime minister and cabinet are responsible to the parliament and can be removed on a no-confidence vote.
The unicameral parliament, called the House of Assembly, is composed of 21 regional representatives and nine senators. The regional representatives are elected by universal suffrage and, in turn, decide whether senators are to be elected or appointed. If appointed, five are chosen by the president with the advice of the prime minister and four with the advice of the opposition leader. If elected, it is by vote of the regional representatives. Elections for representatives and senators must be held no later than 5 years after the first meeting of parliament, although the prime minister can call elections any time. The last election was held in December 2009.
Dominica’s legal system is based on English common law. There are three magistrate’s courts, with appeals made to the Eastern Caribbean Court of Appeal and, ultimately, to the Privy Council in London.
Councils elected by universal suffrage govern most towns. Supported largely by property taxation, the councils are responsible for the regulation of markets and sanitation and the maintenance of secondary roads and other municipal amenities. The island is also divided into 10 parishes, whose governance is unrelated to the town governments.
The Dominican economy has been dependent on agriculture – primarily bananas – in years past, but increasingly has been driven by tourism as the government seeks to promote Dominica as an “ecotourism” destination. In order to diversify the island’s production base, the government also is attempting to develop an offshore financial sector and has signed an agreement with the EU to develop geothermal energy resources. In 2003, the government began a comprehensive restructuring of the economy – including elimination of price controls, privatization of the state banana company, and tax increases – to address an economic and financial crisis and to meet IMF requirements. This restructuring paved the way for an economic recovery and helped to reduce the debt burden, which remains at about 80% of GDP. Hurricane Dean struck the island in August 2007 causing damages equivalent to 20% of GDP. In 2009, the economy contracted as a result of the global recession and growth remains anemic