Since its recovery of macroeconomicstability in 1991, the Dominican Republic has experienced aperiod of notable economic growth. Poverty has declined inthe 1990s. Nevertheless, a segment of the population-mainlyin rural areas-does not seem to have benefited from thisgrowth. Poverty in this country in 1998 is less than that ofother countries if one adjusts for the level of economicdevelopment. The principal poverty characteristics are thefollowing: Disparity in poverty levels in rural areasrelative to the rest of the country. Destitution in the"bateyes," the communities arising near the sugarcane plantations, that are mainly composed of women,children, and the aged. Urban vulnerability to environmentalproblems while access to basic services is restricted.Vulnerability to natural disasters that destroy the means ofproduction. Poverty is high among children--especially thosewho have abandoned formal education-female-headedhouseholds, and the aged-the latter due to lack of socialsafety nets and the absence of pension systems. There is astrong correlation between poverty and health indicatorslike the presence of malnutrition, and poverty andeducation, and poverty and the absence of basic services.Government transfers and foreign remittances play animportant role in reducing poverty.