Under Heureaux, the Dominican government considerably expands…

Under Heureaux, the Dominican government considerably expands its external debt, even as there is considerable blurring between his private holdings and the state's financial affairs.

Some improvements in infrastructure result, such as the completion of the first railroads.

Initial attempts at professionalizing the army and bureaucratizing the state are made, and educational reforms are introduced.

As a result of favorable state policies, modern sugar estates begin to replace cattle-ranching estates, even as exports of coffee and cocoa expand.

Yet, onerous terms on the major external loan, corruption and mismanagement, and a decline in world sugar markets, all exacerbate both domestic budget deficits and external balance of payments shortfalls.