The Italian Legacy in the Dominican Republic

THE ITALIAN LEGACY IN THE DOMINICAN REPUBLIC

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Carlos Loynaz, a naturalized Cuban-American, built La Isabela sugar mill in Puerto Plata, which he re-

vamped using advanced technology. He sold his sugar from an office that he established in New York.

Local and foreign producers introduced new production technologies into the country, specifically a steam

mill incorporated into the Bayona, Santa Ana de Engombe, and Guagimía de los Caballeros plantations.

They also imported machinery and equipment at a cost of millions of pesos to replace traditional animal-pow-

ered mills, the technique employed since early colonial times.

The production process of the new factory was characterized by the extraction of the juice from the cane,

utilizing wooden rollers and moved by the force of a horse or an ox.

The

guarapo

or juice was then strained

and cooked in large copper vessels to manufacture molasses and sugar for internal consumption.

Italian Investments in the New Mills

Augmented production of sugar, along with that of cocoa, tobacco, and other products, strengthened the

commercial link of the country’s producers with markets in the United States and Europe. This phenomenon

underscored the effectiveness of liberal market policies, such as tax exemptions and exemptions on the import

of machinery, equipment, and supplies for industry and agriculture; the donation of land; and the easing of

immigration caps aimed at increasing the working population in the sugar cane fields.

These factors were essential for increasing the flow of foreign direct investment and attracting busi-

ness talent. Along with the country’s rich natural resources, and the hospitality and productivity of the popu-

lation, these aspects were recurring themes in Dominican diplomatic discourse within European settings.

In addition to the sugar mills built in Azua and Baní in the 1870s, between 1875 and 1882 around thirty sugar

factories were constructed that incorporated major technological improvements, including one in Azua, three in

Baní, two in San Cristóbal, one around Santo Domingo, and the rest in the eastern part of the Dominican Republic.

Joaquín Delgado built and operated the La Esperanza steam-powered mill in 1875, and in the same year,

the Cuban Juan Amechazurra began construction of the Angelina mill on the eastern bank of the Iguamo Riv-

er in San Pedro de Macorís, which began operations in 1879.

Italian investments were particularly noteworthy, most importantly those of Juan Bautista Vicini Cánepa,

who invested heavily in sugar cane plantations and mills. According to the consensus of most historians, his

contributions were considerable, especially with regard to his involvement in the General Industrial Corpora-

tion and the Vicini Estate Corporation.

Vicini Cánepa’s deep involvement in the sugar business began in 1878. With his own capital he entered

into a partnership with Sánchez-Damiron in the construction and operation of the Santa Elena sugar mill,

located near Santo Domingo.

The Encarnación plant, founded by the Cuban Francisco Saviñón, became the property of Vicini Cánepa,

who also bought two other mills, the Constancia and the Santa Elena, which merged with the Constancia

hacienda founded by Joaquín Heredia and subsequently purchased by Cánepa. The result was a significant

increase in productivity that put him in a position to compete in export markets.

Due to his successes in buying bankrupt mills, and with the management skills he applied to successful

production units, in the 1880s Vicini Cánepa became the main sugar producer in the country. He acquired

the Encarnación estate, which Francisco Saviñón had established in Santo Domingo in 1892;

the Ocoa estate

founded by the Italian company Zanetti y Compañía;

and the Angelina sugar mill formerly owned by the

Cuban Juan Amechazurra. He also installed the Italia Sugar Mill in Azua.

In 1896 and 1897 the companies owned by Vicini Cánepa imported new crushing machines and sugar

processing equipment from Great Britain.

As a result of these and other investments by Italian and other

national entrepreneurs, in the 1880s foreign direct investment in the Dominican economy totaled US$14.86

million with the following distribution: a) 79.4% or US$11.8 million in sugar plantations and mills; b) 0.57%

or US$85,000 in cacao plantations; c) 3.4% or US$500,000 in tobacco plantations; d) 2.7% or US$400,000 in

banana plantations; and e) 14% or US$2.075 million in other production activities.