THE 17 TH CABINET OF PUERTO

Transcription

1 THE 17 TH CABINET OF PUERTO RICO

2 Esteemed Delegates, Bienvenidos a FLCS VIII! My name is Claudia Tio, and I will be serving as your director for the 17th Cabinet of Puerto Rico. I am a junior at the University of Florida, majoring in Political Science with minors in Portuguese and History. I have been involved in UF Model United Nations since coming to the university, by competing in several conferences. I have also staffed both UF s high school and collegiate conferences, most recently serving as a crisis staffer for Ad-Hoc at FLCS VII. Outside of studying and Model United Nations, I completed an internship at the US Embassy in the Dominican Republic last summer and one in a congressional office right here in Gainesville. I also work part-time as a math tutor, feverishly keep up with the news, and play numerous video games. My decision to direct this committee stems from my passion for my own heritage and culture. I was born and raised in Puerto Rico, but my family emigrated to Florida in search of better opportunities. Puerto Rico is facing several structural problems, including an economic recession, high unemployment and poverty, emigration, and debt. These issues came to a peak when, in September of 2017, the island was hit by two back-to-back Category 5 Hurricanes, Irma, and Maria. As Puerto Rico struggles with recovery, both from its short-term and long-term problems, the island faces an uncertain path forward. Committee will begin in October of 2017, immediately after the two hurricanes. The goal for this committee is for delegates to address the issues that face the island and ultimately create a better Puerto Rico. To do so, collaboration is a must. In making decisions, delegates should consider the opinions of the members of the committee, the residents and the best interests of the island as a whole. Additionally, delegates should consider the interconnected nature of the issues facing Puerto Rico in devising solutions to the various problems. Through these avenues, I very much look forward to seeing what delegates come up with. This committee will serve as a simulation of the government of Puerto Rico under the current governor Ricardo Rossello. You will notice that positions include Puerto Rican government officials as well as influential individuals from the private sector, members of different political parties, and government officials from the United States. It is my hope that the structure of this committee will allow for lively and varied debate on the best way for Puerto Rico to move forward. Although Spanish is the predominant language spoken in Puerto Rico, knowledge of it will not be required in order to participate in the committee. However, research beyond the background guide into Puerto Rico's history (especially its history post-american colonization), culture, and politics are highly encouraged. I am excited to work with all of you in this committee. I urge you to research both your character and their positions on the situation in Puerto Rico and come prepared with ideas on how to respond to the problems that the island is experiencing. Keep in mind that the decisions you make should not be taken lightly, as they will affect the lives of over 3 million people. If you have any further questions about the committee, please do not hesitate to contact me at flcssecretariat@gmail.com. Best of luck to you all! Viva Puerto Rico! Claudia Tio Director 17 th Cabinet of Puerto Rico 2

3 History of Puerto Rico Introduction Prior to European colonization, an estimated thirty to sixty thousand indigenous people, known as the Taíno, resided on the island then-named Boriquén. The Taíno resided on the island for centuries, developing intricate systems of agriculture and complex social structures. These native peoples were organized into chiefdoms led by a cacique or a native chief. However, their way of life was radically disrupted by the arrival of Europeans on the island. In 1508, at the time of European arrival, there was an estimated 20 to 50 thousand Taíno on the island. By 1515, their numbers had dwindled to just 4,000. Regardless, the legacy of the Taíno is still alive on the island. The towns of Caguas, Utuado, and Mayagüez, among others, retain their traditional Taíno names. The Spanish word for hurricane, huracàn, comes from the name of one of the Taíno Gods, Jurakán. Puerto Ricans retain a strong connection to Taíno culture, with frequent celebrations, including festivals and parades, of their heritage. 1 Puerto Rico was discovered by Europeans when Christopher Columbus landed there in 1493 during his second voyage. The island was originally named San Juan Bautista, after the biblical figure Saint John the Baptist. The island was left largely unexplored until the arrival of Juan Ponce de León in Ponce De León founded the city that would come to be known as San Juan, while the rest of the island would take on the name of Puerto Rico, meaning rich port. Initially, Puerto Rico s economy relied on the exportation of gold, which could be found in Puerto Rico s rivers. However, after the gold was depleted, many on the island turned to growing sugarcane and other crops on plantations using African slave labor. Sugar would remain the backbone of Puerto Rico s economy for years to come. 2 The island of Puerto Rico, and more specifically the city of San Juan, became one of Spain s primary military outposts in the Americas. The San Felipe del Morro, or El Morro, castle was built on San Juan s harbor, along with a palace for the governor known as La Fortaleza - the fortress - and the fortress of San Cristóbal on the northeastern side of the city. France, Great Britain, Denmark, and the Netherlands were all involved in the military skirmishes related to San Juan in one way or another, with the occasional takeover of the city. Later on, Puerto Rico s military importance, especially given its prime location within the Caribbean, would make it an attractive acquisition for the United States of America. 3 Driven by the Bourbons, the new royal family in Spain, reforms came to Puerto Rico beginning in the 1700s. Massive reforms to Puerto Rico s political and economic systems promoted trade between Puerto Rico and Spain, stimulated agricultural production, and integrated the island's various military units into a unified command. 4 The island's prime location regarding ports and its stability under the new style of Spanish rule made it a highly successful hub for commercial agriculture, causing it to develop a prosperous economy. Furthermore, the population increased, partly due to economic success combined with to the influx of migrants from various areas of Latin America, the Caribbean, and Europe who were drawn to the island s newfound prosperity. Coffee and sugarcane were grown on large 1 Rivera, Magaly. Taino Indian Culture. Welcome to Puerto Rico! Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. Encyclopedia Britannica. 3 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. Encyclopedia Britannica. 4 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. Encyclopedia Britannica. 3

4 plantations worked on by African slaves - the African slave population peaked at more than thirteen thousand during this time. 5 Movement for Independence: El Grito de Lares By the 19th century, the population of Puerto Rico was split among three political groups: conservatives, who supported the status quo of Spanish rule; liberals, who wanted more political participation for local Puerto Ricans and economic reforms away from mercantilism; and the proindependence group, which wanted the island to completely break free from Spain. The changing nature of Spanish colonial rule, from a more free approach in the 1700 s to more direct control a century later, increased the strain on already tense political divides within the population. Perceived repression and Spanish economic control over the island upset many of the criollos, men of Spanish descent who had been born on the island. It was the criollos who spurred the first significant revolutionary movement on the island, El Grito de Lares. 6 El Grito de Lares, or the Cry of Lares," occurred in the town of Lares, on the western side of the island, on September 23, An armed group of men, led by Manuel Rojas, marched towards Lares, a town that was relatively isolated from Spanish rule and was close to the location of Rojas s makeshift army, and were able to take control of it without any resistance. It was there that the Republic of Puerto Rico was declared and a short-lived provisional government was established. The president of the newly formed government was Francisco Ramírez Medina. Matías Brugman, the second-in-command of the newly formed government, as well as military leaders Baldomero Baurén and Joaquín Parilla led the armed forces, but unfortunately, they ended up being killed along with other revolutionaries in the fight against Spain. The Republic was guided by principles developed by Dr. Ramon Emeterio Betances, another leader of the Grito de Lares movement. The basis for the republic were standards, known as Diez Mandamientos del Hombre Libre, the Ten Commandments of Free Men. These guiding principles were the following: 1. The abolition of slavery 2. The right to vote on all impostions 3. Freedom of religion 4. Freedom of speech 5. Freedom of the press 6. Freedom to trade 7. The right to assembly 8. Right to bear arms 9. Inviolability of the citizen 10. The right to choose on our own authorities Unfortunately for the revolutionaries, Spanish colonial forces were able to subdue the revolt within the day. After taking over Lares, the insurgent group marched to San Sebastian, where the Spanish military station overcame them. 551 individuals, of diverse backgrounds, were arrested and subsequently 5 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. Encyclopedia Britannica. 6 Moscoso, Francisco. El Grito de Lares, Enciclopedia de Puerto Rico. Encyclopedia of Puerto Rico. 4

5 charged as a result of the revolt. 7 The fact that most of these individuals were eventually freed mitigated the discontent among the population. Still, despite the movement s demise, Spain enacted liberal political reforms to appease the citizens and prevent a second revolt like the one that occurred at Lares. Puerto Rico became an official province of Spain, and the criollos were granted Spanish citizenship. As a result of this, Puerto Ricans were granted the right to vote in elections for representatives in Spain s legislative body and form political parties. 8 The political parties that were formed mirrored the liberal-conservative divide that existed earlier in the 1800s. The Partido Liberal Reformista (Liberal Reform Party) included two liberal factions, one that advocated for total integration with Spain and another that wanted autonomy but under the umbrella of the Spanish government. On the other hand, the conservative party, Partido Republicano Español (Spanish Republican Party), pushed for maintaining slavery and the privileges of the ruling class. 9 Slavery was eventually abolished in 1873 due to demands from the liberals. Although slave owners argued that this would decrease sugar production on the island, production did in fact increase, boosting the economy. The Afro-Puerto Rican community was able to flourish on the island, having cultural influences that are still felt to this day. 10 While unsuccessful in its original goal, El Grito de Lares led to many political changes and has been remembered for its influence in creating the province of Puerto Rico. The Spanish-American War Before the beginning of the Spanish-American War, Spain was having tense relations with all of its colonies, especially Cuba. Cubans had been demanding independence from Spain, culminating in the Cuban Insurrection that began in Initially, the United States was a neutral party, but pressure within the country was building to support American intervention. In some areas there was even a desire for the American takeover of Spain s colonies. As the fighting between Cuba and Spain progressed, newspapers in the United States used yellow journalism with eye catching headlines and less than legitimate information to influence the government into taking a tougher stance towards Spain and pressure them towards war. In response to U.S. political and economic pressure, Spain attempted to liberalize relations with its colonies. Specifically, in 1897, Puerto Rico was granted an autonomous constitution, giving the islands residents more political power. Puerto Rico had representatives in the Spanish legislature, as well as its own bicameral legislative body. Power was given to local town councils, with the Spanish-appointed governor only allowed to act with the approval of Puerto Rico s Cabinet Grito de Lares, El Boricua. Marknet Group, Inc. 8 Grito de Lares, El Boricua. Marknet Group, Inc. 9 Politics and Reform in the Later Nineteenth Century, Library of Congress. 10 Acosta, Ivonne. Abolition of Slavery (1873), Enciclopedia de Puerto Rico. 11 Chronology of Puerto Rico in the Spanish-American War, Library of Congress, United States Congress. 5

6 The 17th Cabinet of Puerto Rico The sinking of the USS Maine in the Havana harbor, and Spain being blamed for it, spurred the start of the Spanish-American War. On April 19, 1898, the American House of Representatives and the Senate authorized the Joint Resolution For War against Spain. This included the Teller Amendment, which prevented the United States from annexing Cuba. However, the amendment made no prevention to the annexation of Puerto Rico and Spain's other colonial territories. The war between Spain and the United States officially began on April 25. The initial fighting on Puerto Rico began on May 10, when American forces attacked the fortress of San Cristobal in San Juan, and subsequently bombarded the city on May 12. On July 26, the United States took control of Ponce, the largest city on the island, and proclaimed that they had invaded Puerto Rico to bring "a banner of freedom." Troops moved throughout the island to take over various cities, including the major port of Mayagüez on August 11. A day later, the United States and Spain signed an armistice, and Spain ceded its control of Cuba, the Philippines, and Puerto Rico.12 Implemented by the end of the year was the Treaty of Paris, which officially ended the SpanishAmerican War. With this, the United States obtained Guam and Puerto Rico as territories under U.S. control, Cuba became independent, and the Philippines were purchased from Spain for 20 million dollars. From that point until today, Puerto Rico would be part of the United States.13 Early American Rule The 1900 Foraker Act established a civilian government in Puerto Rico. On the island, the act created a House of Representatives with 35 members, a judicial system with a Supreme Court, and the role of Resident Commissioner, a non-voting representative for Puerto Rico in Congress. The House of Representatives was voted in directly by the Puerto Rican people, but the U.S. government appointed the Resident Commissioner. In its functions, the system was exceedingly similar to that of the United States. The Act also allowed for free trade between the island and the mainland United States; however, it also created a system of taxation by which tariffs were placed on Puerto Rico through their imports to the United States.14 Shortly following Puerto Rico s annexation to the United States, disputes arose over its exact legal status. These disputes would come to be heard in the highest court in the U.S., the Supreme Court. The insular cases were a series of Supreme Court opinions that cemented the legal foundation for the relationship between the United States and its newly acquired territories, including Puerto Rico. The 12 Chronology of Puerto Rico in the Spanish-American War, Library of Congress, United States Congress. Chronology of Puerto Rico in the Spanish-American War, Library of Congress, United States Congress. 14 Foraker Act (Organic Act of 1900), Library of Congress, United States Congress. 13 6

7 first of these cases was De Lima v. Bidwell in It challenged the constitutionality of collecting customs duties on sugar that was imported from Puerto Rico to the United States. De Lima argued that because the U.S. had annexed Puerto Rico, customs fees should not be charged, because Puerto Rican products were not foreign. The Supreme Court sided with De Lima, stating that Puerto Rico was not a foreign country for the purpose of tariffs. 15 This decision allowed Puerto Rico to flourish economically, as it linked the island to the massive American market, creating jobs and prosperity in Puerto Rico. Downes v. Bidwell, also in 1901, was a similar case, but it specifically challenged the taxes levied on Puerto Rican imports by the Foraker Act. Downes argued that, since Puerto Rico was part of the United States, it should not be subject to different taxes than the rest of the states. In this case, the Supreme Court held that the Constitution did not fully apply to the territories of the U.S. until they had been officially incorporated. 16 This decision laid the foundation for legally justifying different legal treatment towards Puerto Rico. Replacing the Foraker Act was the Jones Shafroth Act of 1917, creating new institutions for the governance of Puerto Rico. Perhaps most notably, the Jones-Shafroth Act granted United States citizenship to all Puerto Ricans born after April 25, The Act further developed Puerto Rico s legislative and executive branches. It created a bicameral legislature composed of a 19-member Senate and a 39-member House of Representatives. In addition, the Resident Commissioner, Puerto Rico s representative in Congress, would now be elected by the people of Puerto Rico for four-year terms, instead of being selected by the United States government. Regarding the executive branch, six cabinet departments were created; these were the Departments of Justice, Agriculture, Health, Interior, Finance, and Education. The governor, appointed by the mainland government, appointed the department heads and also had the power to veto legislation. Finally, the law created a bill of rights for the residents of Puerto Rico. Puerto Rico s Bill of Rights is similar to that of the United States, but there are some key differences. Freedom of speech, assembly, religion, and press are enumerated as key rights, as well as protections from unreasonable, warrantless searches. Discrimination in all of its forms is prohibited. Notably, the Bill of Rights of Puerto Rico does not include the right to a trial by jury, something that is incorporated into the U.S. Bill of Rights. 17 The Merchant Marine Act of 1920, also known as the Jones Act, is another law that profoundly affected Puerto Rico. The law was meant to encourage the American shipping industry in the area following World War I. It required that goods shipped between American ports be transported on American ships. This sharply increased the costs of shipping across many American states and territories, but the Jones Act s effects were felt acutely in Puerto Rico, an island relatively isolated from the rest of the United States. The economy s potential was slightly stunted by the lack of options when it came to exporting and importing goods. Furthermore, the population became more concentrated in the port cities of San Juan, Ponce, and Mayagüez. These effects are still felt in Puerto Rico today, becoming most prominent during the recent crisis of Hurricanes Irma and Maria. 18 Along with political changes, American rule brought on social and economic changes to Puerto Rico as well. Puerto Rico was able to develop a robust sugarcane industry in these early years, through American investments that were focused on large-scale production. Such investments involved the importation of disease-resistant plants and the building of more extensive and more efficient transportation systems and sugarcane mills. By 1899, two-thirds of Puerto Rican sugar was being exported to the United States. With this agricultural boom, the population burgeoned from nearly a million in 1899 to over 1.5 million in The tobacco industry also saw significant, albeit smaller, growth; the industry was dominated by small farmers, who saw significantly more success due to the 15 De Lima v. Bidwell, FindLaw, Thomson Reuters. 16 Downes v. Bidwell, FindLaw, Thomson Reuters. 17 The Jones Act of 1917, 18 The Jones Act, Investopedia. 7

8 new trade connection with the United States. Unfortunately for these tobacco farmers, however, Americans shifted from preferring cigars to cigarettes in the 1930s, which use a different variety of tobacco, deeply hurting the businesses of these small farm owners. Society changed rapidly, with the U.S. government imposing the English language in schools and Americanizing its political institutions. 19 Most Puerto Ricans were receptive to these changes, however, Americanization of the culture was not entirely successful. In regards to public schools, there were not enough American teachers willing to travel to Puerto Rico to staff the newly created English language schools; thus, many teachers were Puerto Ricans who did not teach in English, rendering efforts to Americanize ineffective. Missionaries from the Protestant faith established churches on the island, which eventually grew to have Puerto Rican leadership. 20 Modern sanitation practices and medical developments were brought to the island, contributing to the increase in population. Although the island as a whole was more economically prosperous, much of the riches became concentrated in the hands of wealthy landowners, with small-scale farmers losing out due to a lack of government focus on their needs. This caused a resentment and class divide that can still be felt to this day. 21 Establishment of the Commonwealth The Great Depression of the 1930s had an enormous impact on the Puerto Rican economy. When the stock market crashed in 1929, Puerto Rico had already been struggling to recover from the 1928 Hurricane San Felipe, the deadliest hurricane in the island s history. The hurricane moved directly across the island as a Category 5 storm, causing hurricane-force winds of 150 to 160 miles per hour, the highest ever winds for a storm recorded at the time. There was also intense rainfall - over the 13th and 14th of September, Puerto Rico experienced its heaviest-ever rainfall, with areas in the central mountain region, for example, experiencing around 26.9 inches of rain. Entire crop fields and towns were destroyed. Total property damage was estimated to be worth $50 million. 22 As a result of the combination of the hurricane and the Great Depression, prices of exports, such as sugarcane, coffee, and tobacco, dropped and the agriculture industry lost access to credit and capital due to the collapse of the banks. This caused massive layoffs of farmworkers and agricultural workers were most affected by the economic crash. Within the island, prices of essential commodities increased, making life worse for the already struggling workers. Eventually, the sugarcane industry was able to recover; however, agriculture's role in the Puerto Rican economy diminished and was replaced by government spending that aimed to stimulate the economy in areas such as manufacturing. Economic troubles caused tensions within society. Infant mortality increased due to disease and malnutrition. There were various strikes and protests throughout the early 1930s. On March 21, 1937, the Nationalist Party, which advocated for Puerto Rican independence, held a peaceful march in Ponce, but protestors were killed and wounded when police opened fire on the march. This event has become known as the Massacre of Ponce. The Great Depression resulted in tensions between the United States and Puerto Rico, with Puerto Ricans feeling that they were not being treated equally by the United States because they were not receiving the same amount of relief. Many on the island called for a different relationship with the United States, with some advocating for increased ties, and others for independence. Either way, the Depression created the need for change Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. 20 Torres, Pablo Samuel. The Americanization of Puerto Rico, Enciclopedia de Puerto Rico, National Endowment for the Humanities. 21 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. 22 Fassig, Oliver L. San Felipe - The Hurricane of September 13, 1928, at San Juan, P.R. Monthly Weather Review, vol. 56, no. 9, 1928, pp Mota Maldonado, Yanelba. The Crisis of the 1930s, Enciclopedia de Puerto Rico, National Endowment for the Humanities. 24 August

9 The 17th Cabinet of Puerto Rico In 1941, President Franklin D. Roosevelt appointed Rexford G. Tugwell as governor, who wanted to bring economic prosperity to Puerto Rico. At the same time, Luis Muñoz Marín, the president of the Senate and the leader of the Popular Democratic Party (PPD), was pushing change in Puerto Rico s political status. Essentially, Puerto Rico s political leaders wanted a greater degree of self-determination and democracy on the island. In February 1943, the Puerto Rican Senate unanimously passed a resolution that pushed the United States to provide democratic change to Puerto Rico, pushing forth initiatives including having the Puerto Rican people themselves elect the governor. In response to this, President Roosevelt created a commission, including Tugwell and Muñoz Marín, to reevaluate the laws surrounding Puerto Rico's status as a territory of the U.S.. The commission recommended that the opinions of the Puerto Rican people be taken into account when making any changes to the existing laws, and promoted the idea of a governor elected by the people. Thus, the 1947 Elective Governor Act was passed to do just that. Luis Muñoz Marín became the island s first elected governor in He was a widely popular politician and was re-elected for four straight terms, becoming the longest-serving governor in Puerto Rican history. He set the foundation for many of Puerto Rico s democratic institutions and oversaw a period of substantial economic growth.25 After World War II, Puerto Rico s status would change to what it currently is today. In October 1950, President Harry S. Truman signed the Puerto Rico Commonwealth Act, creating the opportunity for Puerto Rico s people to write and adopt their own constitution. The Commonwealth of Puerto Rico was established by the Constitution of Puerto Rico, approved by the people in a 1951 referendum and officially adopted, after approval from the United States government, on July 25, With this, the territory was taken off the United Nations list of colonies, as it was considered a self-governing territory.27 Operation Bootstrap, also known as Operación Manos a la Obra, was an economic effort led by the state to further develop and modernize Puerto Rico's economy by drawing American investment to the island. This strategy was led by Governor Luis Muñoz Marín and Puerto Rico s economic development agency, Compañia de Fomento (Development Company), led by Teodoro Moscoso. The state first directly invested in establishing paperboard and glass bottle factories, in order to demonstrate to private investors that manufacturing had the potential to succeed on the island. These factories created jobs, and, in the long term, they prompted more companies, from diverse industries, to set up shop on the island. Puerto Rico was able to attract investors primarily through federal tax exemptions for companies that established themselves on the island. The Internal Revenue Service (IRS) tax code exempted American corporations from paying taxes on profits made on the island. With Puerto Rico s May 1947 Industrial Incentives Act, repealing Puerto Rico s corporate tax, corporations paid virtually no taxes on items produced on the island. Manufacturing investments led to massive economic growth. By 1967, the manufacturing sector in Puerto Rico had revenues of $621 million. The manufacturing sector employed over 120 thousand people. The growth in manufacturing also led to the growth of other 24 Akiboh, Alvita. Puerto Rico s Relationship with the United States? U.S. History Scene. Luis Muñoz Marín, Encyclopedia Britannica. 26 Akiboh, Alvita. Puerto Rico s Relationship with the United States? U.S. History Scene. 27 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. 25 9

10 economic sectors, including trade and finance. Puerto Rico s economy was transformed and modernized as a result of Operation Bootstrap. 28 Despite vigorous debates, the commonwealth status remains to this day. There have been multiple referendums held to decide the island's status. In July of 1967, a vote, supported by the Luis Muñoz Marín and his pro-commonwealth party, the Partido Popular Democratico (PPD, or Popular Democratic Party) but boycotted by pro-statehood and pro-independence groups, showed that 60.4 % of the population supported the commonwealth, 38.9 % supported statehood, and 0.6 % supported independence. Several referendums in between them have reaffirmed the Puerto Rican people s support for the current commonwealth status, albeit statehood has become an increasingly popular option while the independence movement has become stagnant. 29 The most recent referendum was held in June of In this vote, 97 percent of the population voted for statehood - however, the voter turnout rate was only 23 percent, partly because opposition parties boycotted the vote. The PPD argued that the vote would be invalid because it referred to Puerto Rico as a colony - a term that the party has fought against - and because the Commonwealth was not an option on the ballot. 30 Although all of these plebiscites have been non-binding, since Congress has the final say, their results show significant trends in the increased popularity of statehood. 31 Puerto Rico has borne the brunt of several hurricanes, the most severe of which was Hurricane Hugo in The storm killed 12 people and caused over $1 billion in damages, including the destruction of tens of thousands of homes and key agricultural crops such as bananas and coffee. 32 Much of Puerto Rico s tourist attractions - hotels, beaches, etc. - were damaged by the storm. In rebuilding, Puerto Rican authorities focused a lot of their energy on alleviating the problems of the tourist industry that the hurricane had caused. This focus on rebuilding tourism allowed Puerto Rico s economy to get back on its feet quickly, thus speeding up the recovery process overall. 33 Puerto Rico Today Puerto Rico is a territory of the United States of America, officially known as the Estado Libre Asociado de Puerto Rico. It is located in the Caribbean Sea, east of the Dominican Republic and west of the Virgin Islands. Puerto Rico has a population of approximately 3.4 million people; all of those who were born in Puerto Rico are considered U.S. citizens. The official languages are Spanish and English, although Spanish is used more often in daily life. Economy Puerto Rico has a diverse, developed economy, but in recent years, it has suffered from a recession and crippling debt. Retail and manufacturing are the largest sectors of Puerto Rico s economy, accounting for 18.4 % and 14.9 % of the people employed on the island, respectively. The most prominent part of Puerto Rico s manufacturing industry is pharmaceuticals. Section 936 of the IRS tax code had encouraged pharmaceutical companies to invest on the island. 3.7 % of Puerto Rico s population is employed in the pharmaceutical sector and most of these jobs have very low wages. While 28 Ruiz Toro, Juan. Puerto Rico s Operation Bootstrap, Modern Latin America. Brown University. 29 Mathews, Thomas G., Olga J. Wagenheim, & Kal Wagenheim. Puerto Rico. Encyclopedia Britannica. Encyclopedia Britannica. 30 Torres, Ismael. PDP to boycott status referendum. Caribbean Business. Latin Media House. 20 April Dwyer, Colin. Puerto Rico Overwhelmingly Votes On U.S. Statehood In Nonbinding Referendum, National Public Radio. NPR. 11 June Fritz, Angela. "Puerto Rico has a long history with tropical storms. None of them were like Hurricane Maria. The Washington Post. 19 September Yenckel, James T. The Damage, the Recovery, and the Future. The Washington Post. 15 October

11 highly developed compared to the rest of Latin America, Puerto Rico lags behind the rest of the United States in economic and social indicators. The island has strikingly high levels of poverty. The poverty rate is 44.9%, nearly double that of the most impoverished state, Mississippi, with a poverty rate of 24.9%. 34 The average wage in Puerto Rico is only two-thirds of what it is in Mississippi, the state with the lowest average wage. On the other hand, the gross domestic product (GDP) per capita, a measure of the standard of living, is close to that of the United States as a whole. 35 Puerto Rico is currently in the midst of an economic crisis. It has been suffering from an economic recession since 2006 and GDP is expected to decrease by 2.8% in After the elimination of the Section 936 tax exemption in 2006, companies began to leave the island, resulting in a 20% loss of jobs that Puerto Rico has been unable to recover from. Because of this, the unemployment rate is 10 percent, much higher than the United States overall unemployment rate of 4.4 percent. In addition, the labor force participation rate, a measure of how many adults are participating in the workforce, is only 40 percent compared to 63 percent in the United States. This indicates that much of the population is without work and thus, at risk of poverty. The poverty rate on the island is more than 40 percent. There has been a large amount of emigration from the island due to worsening economic conditions; the current population of 3.4 million is 10 percent less than the 3.8 million figure in The departure of many of Puerto Rico s skilled workers has worsened the prospects of an economic recovery. Unfortunately, Puerto Rico s economy shows no signs of improving anytime soon. 37 Puerto Rico's debt crisis emerged as a result of its economic woes. Puerto Rico issued billions of dollars in bonds to fund its government. Puerto Rican bonds were favorable to investors because they were triple tax-exempt - exempt from national, state, and local taxes. As Puerto Rico s government lent out money, its deficit grew to the point where the island was unable to pay out its debts. Public debt reached 100 percent of GDP in The government also has to deal with paying out retirement and health benefits to government employees, which also cost the island billions. 38 Because Puerto Rico is a U.S. territory, it cannot file for Chapter 9 bankruptcy, unlike other states and municipalities, such as Detroit which did so in Instead, Puerto Rico has filed for special bankruptcy protection under the PROMESA law, indicating that it cannot pay its over 70 billion dollars in debts. In additional response to its debt, the Puerto Rican government has instituted austerity measures, including deep cuts in social spending, which have proved very unpopular and have only served as bandages on a deep wound. 39 Such 34 Foxman, Simone. Puerto Rico is living an impoverished debt nightmare reminiscent of southern Europe or Detroit. Quartz, Atlantic Media. 19 September Bram, Jason, Francisco E. Martinez, & Charles Steindel. Trends and Developments in the Economy of Puerto Rico. Current Issues in Economics & Finance, vol. 14, no. 2, 2008, Bomey, Nathan. 6 reasons why Puerto Rico slid into financial crisis. USA Today, Gannett Company. 4 October Nelson, Eshe. Puerto Rico s eye-popping economic situation, in charts, Quartz, Atlantic Media. 30 September Rosenkranz, Robert. The Puerto Rico Debt Crisis, Explained, Huffington Post, Oath. 27 July Dwyer, Colin. Puerto Rico Makes Unprecedented Move To Restructure Billions In Debt, National Public Radio. 3 May

12 cuts for social spending could prove disastrous if another hurricane were to hit Puerto Rico, damaging both its short-term and long-term recovery, if no additional aid is received. Puerto Rico s government spending cuts have impacted nearly every aspect of public life. The education system, for example, has been dramatically affected. 167 public schools were closed at the end of the school year in 2017 due to a lack of funds to keep them open. The schools that remain open have experienced reduced resources, partially due to declining enrollment due to more and more students moving away from Puerto Rico. 40 Universities have seen their budgets drastically reduced - when the PROMESA law took effect in 2016, the University of Puerto Rico saw a budget cut of $201 million. This has resulted in the near-doubling of tuition rates for students, creating fears that higher education in Puerto Rico will become inaccessible for low-income students. 41 Political Parties Partido Nuevo Progresista (PNP) The Partido Nuevo Progresista (PNP) - or the New Progressive Party - is the party that is currently dominating Puerto Rico s government. While its policies are centrist, the primary factor that defines the PNP, and differentiates it from all of the major parties on the island, is the issue of Puerto Rico s political status. The PNP advocates for Puerto Rico becoming the 51st state. 42 As the years have gone on, the party s push for Puerto Rican statehood has only grown stronger. During the 2016 gubernatorial campaign, then-candidate Ricardo Rossello pledged that Puerto Rico would become a state within his term. In addition, the party does not fit neatly into the definitions of Democrat and Republican; in fact, PNP leaders have come from both parties. For example, current Resident Commissioner Jenniffer Gonzalez-Colon is a Republican, while former Resident Commissioner Pedro Pierluisi is a Democrat, but they are both aligned with the PNP. 43 Despite this, the party in recent years has implemented policies that lean to the right. The last PNP governor, Luis Fortuño, implemented austerity measures, including cutting public sector jobs, and proposed a $450 million natural gas pipeline in order to cut electricity costs. The austerity measures contributed to protests against Fortuño and a drop in his popularity. 44 Although Fortuño was defeated in 2012 by PPD candidate Alejandro Garcia Padilla, the party has made a comeback. As of the 2016 elections, the PNP holds the governor and Resident Commissioner seats, as well as the majority of the seats in the Senate and the House of Representatives. 45 Partido Popular Democrático (PPD) The Partido Popular Democrático (PPD) - or the Popular Democratic Party - is the largest party in opposition to the PNP government. The PNP and PPD are the largest parties by far in Puerto Rico. The Popular Democratic Party has a more nationalist platform, advocating for maintaining Puerto Rico s current status as a commonwealth of the United States and seeking more autonomy. In further contrast to the New Progressive Party, the PPD has a leftist economic platform. 46 Alejandro Garcia Padilla was 40 Robles, Frances. Puerto Rico s Debt Crisis Claims Another Casualty: Its Schools. The New York Times. 10 May Bartfai, Lisa. Puerto Rico's public university system is in disarray. But it's not just because of Hurricane Maria. Public Radio International. 11 June Disalvo, Daniel. Is Puerto Rico Our Greece? Daily Beast. InteractiveCorp, 30 August Disalvo, Daniel. Is Puerto Rico Our Greece? Daily Beast. InteractiveCorp, 30 August Costa, Robert. Luis Fortuño: Puerto Rico s Scott Walker. National Review. 25 June Associated Press. Puerto Rico: Pro-Statehood Candidate Ricardo Rosselló Wins Governor Race. NBC News. NBC Universal, 8 November Disalvo, Daniel. Is Puerto Rico Our Greece? Daily Beast. InteractiveCorp, 30 August

13 the PPD governor who immediately preceded current governor Rossello. The PPD s policies became widely unpopular during Garcia Padilla s tenure - at one point, the governor s approval rating was as low as 12 percent. Policies of the PPD under Garcia Padilla included raising taxes, giving tax breaks to potential investors on the island, and requiring more pension contributions by government workers. These efforts were meant to stimulate the Puerto Rican economy; however, the measures failed to improve the island's economic recession or reduce its massive debt. All of this contributed to Garcia Padilla s decision to not run for a second term. 47 Furthermore, the unpopularity of the PPD led to gubernatorial candidate David Bernier s defeat in 2016 against PNP candidate Ricardo Rossello, as well as the party failing to win the Resident Commissioner position or a majority in either of the two legislative chambers. Still, the PPD remains in the majority when it comes to control over Puerto Rico's municipalities. 48 Partido Independentista Puertorriqueño (PIP) The Partido Independentista Puertorriqueño (PIP) - or the Puerto Rican Independence Party - advocates for independence from the United States and full sovereignty for Puerto Rico. The party also advocates for a leftist economic model. Members advocate for varied plans, from social democracy to full-on Marxism. It is the smallest of Puerto Rico s major parties, only getting small percentages of the vote in recent elections. Independentistas, as proponents of independence are called, argue that American imperialism is stunting Puerto Rico s growth, preventing the island from becoming economically prosperous. They blame problems like high poverty rates on the policies of the United States. The support for independence on the island, despite being a minority, cannot be ignored, due to the consistent presence of independentistas in the Puerto Rican Senate and House of Representatives, as well as their activity and popularity among college students and faculty. 49 Current Issues PROMESA The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) is the American federal government s effort to address the debt crisis in Puerto Rico. The law established the Financial Oversight and Management Board (FOMB) to supervise the Puerto Rican government s finances by approving the fiscal plan and budget, ordering spending cuts where needed, and providing an overall review all aspects of fiscal policy. 50 The PROMESA law has come under attack from critics, many of whom say that the junta fiscal - the colloquial name in Puerto Rico for the FOMB - is yet another example of American colonialism on the island. Upon passage of the law, one Puerto Rican critic wrote: [Then-governor] Alejandro Garcia Padilla will pass in history as the last elected governor of the island. Although the years in which the United States named and imposed a governor of Puerto Rico have passed, the ample powers of the FOMB will have the practical effect of removing from us the liberty to elect our leaders. 51 The Board s first official meeting was held on September 30, The meeting was met with fierce protests, including shouts of Sounds like slavery to me! when the board members discussed the financial status of the island. Others objected to the meeting s location as it was held in New York, not in Puerto Rico. Opponents interpreted this as a symbol of where the real control of the island lay - with 47 Alvarez, Lizette. Puerto Rico s Embattled Governor Says He Won t Run for 2nd Term. New York Times. The New York Times, 14 December Associated Press. Puerto Rico: Pro-Statehood Candidate Ricardo Rosselló Wins Governor Race. NBC News. NBC Universal, 8 November Gruber, Ruth. There Are Few Independentistas in Puerto Rico, But - The New York Times. 21 May U.S. Congress. H.R PROMESA. Congress.gov. United States Congress. 51 Pico, Jaime E. Junta colonial. El Nuevo Dia. GFR Media, 30 March

14 Wall Street bankers. 52 With this meeting, the FOMB took control of the Puerto Rican government s finances and the corporations the government owns, the most notable of which is the Puerto Rican Electric Power Authority (PREPA). 53 Not even a year later, PREPA declared bankruptcy under Title III of PROMESA, on the grounds that it cannot afford to pay its over $9 billion in debts. Certain political factions on the island have called for Puerto Rico s electric company to be privatized, but it is unknown whether or not the FOMB will push for this becoming reality. 54 Hurricane Irma After wreaking destruction on other islands in the Caribbean, Hurricane Irma grazed Puerto Rico as a Category 5 storm on September 6, It was the largest hurricane to affect the island since Hurricane San Felipe in 1928, which killed 2,748 people across the Caribbean. Because Irma did not directly hit Puerto Rico, the island was spared the destructive damage that had occurred in islands like Barbuda, Anguilla, and St. Martin. However, over half of the island lost electrical power after the storm. 55 Because of the poor quality of Puerto Rico s electrical infrastructure, those who lost power were expected to remain without it for four to six months. To exacerbate the problem, 14 of the island s major hospital were among the buildings who lost power, having to rely on generators and making it difficult for Puerto Ricans to access healthcare resources. Furthermore, around 50 thousand people had no drinking water in the immediate aftermath of the storm. 56 In total, Irma caused an estimated $1 billion in damage to the island. 57 Hurricane Maria Exactly two weeks after Irma hit, on September 20, 2017, Puerto Rico was slammed by Hurricane Maria. It was the worst natural disaster on record in the history of Puerto Rico. The storm passed directly over the island as a Category 4 storm with 155 mph winds, wreaking destruction on the entire island and its infrastructure. All of Puerto Rico's residents were left without power by the time the storm passed through. Without power, residents also lost access to municipal water. With 1,360 out of 1,600 cell phone towers knocked down due to the powerful winds, there was also a widespread outage of cell phone service. 58 Damage on the island has been so widespread that conditions have been described as apocalyptic by Puerto Rican officials and residents. 59 Hurricane Maria exposed critical flaws in Puerto Rico's infrastructure and caused lasting damage to the island that will take years to repair, especially in regards to the electricity. The power distribution system in Puerto Rico was already weak and outdated, due to a lack of funds to upgrade the power grid, and the hurricane has only worsened this problem. Some of the electricity infrastructure dates back to the 1960s. The system has fragile connections; while most of Puerto Rico s population is in the northern part of the island, the vast majority of the power plants are in the south, meaning that power lines have to stretch for many miles over rugged, mountainous terrain. In addition, unlike power plants on the US 52 PROMESA Board Meets in NY Amidst Protests. Puerto Rico Report. 3 October Valentin Ortiz, Luis J. Puerto Rico government and public corporations under control of fiscal oversight board. Caribbean Business. Latin Media House, 30 September Williams Walsh, Mary. Puerto Rico s Power Authority Effectively Files for Bankruptcy, The New York Times, 2 July Johnson, Alex, Daniel Arkin, Jason Cumming, & Bill Karins. Hurricane Irma Skirts Puerto Rico, Leaves 1 Million Without Power. NBC News. NBC Universal, 7 September Guzman, Natasha. How Much Damage Did Hurricane Irma Cause In Puerto Rico? The Island Is Running On Generators. Bustle. Bustle, 7 September Sullivan, Brian K. & Fieser, Ezra. Maria Latest Threat to Puerto Rico After $1 Billion Irma Hit. Bloomberg. Bloomberg, 19 September Resnick, Brian & Barclay, Eliza. What every American needs to know about Puerto Rico s hurricane disaster. Vox. Vox Media, 16 October Narayan, Chandrika. 'Apocalyptic' devastation in Puerto Rico, and little help in sight. CNN. Turner Broadcasting System. 26 September

15 mainland, which run mostly on coal and natural gas, Puerto Rico gets most of its energy from oil, meaning that outdated technology is being used and that electricity overall is more expensive and vulnerable to sudden price changes. Some have proposed modernizing Puerto Rico s older electrical infrastructure, but this will be difficult to do when much of it has been destroyed by the hurricane. 60 Violence has marred the streets of the island since the hurricane struck. According to Puerto Rican police officials, many criminals are taking advantage of the chaos that the storm has caused. 34 murders have occurred thus far in the aftermath of the hurricane. Crime overall is also increasing, with more home burglaries, car break-ins, and assaults taking place. The police have struggled to take control of the situation. With 13 thousand police officers on an island of over 3 million people, coupled by the fact that the island has lost 4,000 officers due to a combination of emigration and resignations, the police department is simply overwhelmed and unable to deal with all of the crime taking place in the aftermath of Maria. 61 The economic impact of Hurricane Maria on Puerto Rico is expected to be devastating. The total damages to Puerto Rico are estimated to be $30 billion; this includes $20 billion in physical and infrastructure damages as well as $10 billion in lost economic activity. In addition to this, many people are expected to leave Puerto Rico permanently from the United States. This would result in a reduced workforce, which in turn would decrease Puerto Rico s economic output. 62 There was a decline in employment before the hurricane - 29 thousand jobs were lost by the beginning of October - and the future situation looks even grimmer. 175 thousand people have been unable to work due to the conditions caused by the hurricane. Overall, because of the hurricane combined with the island s existing economic weaknesses, the economy of Puerto Rico is expected to shrink by 8%, making it the slowest-growing economy in the world. 63 Puerto Rico s healthcare system has been dramatically affected by Hurricane Maria. According to FEMA, 58 out of the 69 hospitals on the island lack electricity. Most of the hospitals are operational through generators, but even these are unreliable due to shortages of fuel. These hospitals are also being overwhelmed by patients. This is only being exacerbated by the lack of even basic resources at these hospitals. A lack of electricity and running water means that hospitals are struggling with keeping medications properly preserved and sterilizing medical equipment. 64 Certain health problems are surging among the population. For example, mold due to water-damaged homes is causing an increased incidence of respiratory issues. Mental health problems are also on the rise, due to the stress many face after being impacted by such a large disaster. 65 The island has begun to receive aid from the federal government, Following the hurricane s landfall, President Donald Trump declared a disaster zone in Puerto Rico, allowing the island to receive aid from FEMA. This declaration was later altered so that, instead of Puerto Rico having to pay half of the costs of emergency relief on the island, the federal government would cover all of the costs. This provides significant relief to Puerto Rico, as the government now has money to put aside for long-term aid programs and infrastructure repairs. In addition, President Trump has temporarily waived the Jones Act on the island, allowing more ships to come to Puerto Rico to deliver aid. 66 To address the health problems on the island, the military has sent the USNS Comfort to Puerto Rico. The USNS Comfort is 60 Rogers, Adam. Why Can t We Fix Puerto Rico s Power Grid? Wired. Condé Nast, 18 April Ovalle, David. On the streets of San Juan, police struggle to rein in crime after Hurricane Maria. Miami Herald. 20 October Horowitz, Julia. Hurricane Maria is a nightmare for Puerto Rico's economy. CNN Money. 25 September Campoy, Ana. Puerto Rico is set to become the world s worst economy next year. Quartz, Atlantic Media, 23 November Khazan, Olga. The Crisis at Puerto Rico's Hospitals. The Atlantic, 26 September Murphy, Michael Joe. Commentary: Puerto Rico health care under unimaginable stress after Hurricane Maria. Orlando Sentinel. 19 December Manchester, Julia. Timeline: Trump's response to the crisis in Puerto Rico, The Hill, 30 September