Santo Domingo
Americas' oldest European city (1496), lost its empire niche when Mexico and Peru were discovered, then built 75 free trade zones employing 200,000+ — 40 consecutive years of ~5% GDP growth, rarely discussed.
The oldest continuously inhabited European city in the Americas spent most of its history in decline — then quietly became one of the Western Hemisphere's most consistent growth stories. When Bartholomew Columbus founded Santo Domingo at the mouth of the Ozama River in 1496, it became the administrative capital of the entire Spanish New World: first university, first cathedral, first castle, first monastery, first fortress. For roughly thirty years, every conquest, every colonial appointment, and every treasure shipment was organized from this Caribbean port.
Then Mexico and Peru were discovered. The gold and colonists drained away to richer frontiers, and Santo Domingo spent the next four centuries as a secondary city — occupied by Haiti for 22 years (1822-1844), ruled by the brutal Trujillo dictatorship (1930-1961), and largely forgotten by the world economy. The competitive displacement was total: the first-mover pioneer species lost its niche to later arrivals with more resources.
The adaptation came through free trade zones. Beginning in the late 20th century, the Dominican Republic established 75 special economic zones hosting over 690 companies with 100% tax exemptions on income, imports, and exports — a commensalism model where foreign manufacturers benefit from tax-free production while the host economy gains employment. These zones now employ over 200,000 workers directly and generated $8.6 billion in exports in 2024. Medical devices, electronics, and textiles replaced sugar and coffee. Call centers multiplied — 103 nationally, with nearly half in Santo Domingo — drawn by time zone alignment with the US, competitive costs, and cultural affinity with American consumers.
The Dominican Republic has averaged approximately 5% GDP growth for 40 consecutive years — one of the most consistent expansion records in the Western Hemisphere — yet remains one of the least-discussed economic success stories in development literature. Remittances from the US diaspora contribute roughly 7% of GDP, functioning as a parallel export industry. The metropolitan area of 3.3 million generates the bulk of national output. Santo Domingo demonstrates that first-mover advantage is recoverable: a city that lost its original niche can find a new one, provided it offers geography (Caribbean proximity to the US), infrastructure (World Economic Forum ranks it best in Latin America), and institutional flexibility (the free zone model) that later competitors cannot easily replicate.