I am usually one of those who cannot wait to celebrate the 4 of July. Last year I wore blue pants and a red shirt in New York City to celebrate (maybe I looked somewhat weird…). But in all seriousness, this year I do not feel the same excitement to dress up and drink to celebrate America’s 240 birthday.
Most people who know me probably expect a post about the 4 of July because I am as pro-statehood as anyone can get. But this year, this is my post and I hope you understand why.
The Fiscal Control Board imposed by the U.S. Congress (see the PROMESA Law) is the most evident form of modern colonialism. It strips Puerto Rico of its Constitutional right to self-government. The law, signed by President Obama last week, imposes a seven-member Fiscal Control Board with control over Puerto Rico’s budget, laws, and fiscal plans. The Board, whose members are not required to be Puerto Rican, will have the authority to decide all fiscal and public policy decisions as it deems convenient.
To add insult to injury, the two recent U.S. Supreme Court decisions (see Commonwealth of Puerto Rico v. Sanchez Valle and Commonwealth of Puerto Rico v. Franklin California Tax-Free Trust) clearly expose what the local pro-statehood and pro-independence parties have been claiming since 1952: Puerto Rico is a U.S. colony.
However, it is true that the herd of incompetent leaders we have had in the island have been accomplices of the economic and social disaster Puerto Ricans now witness. Many Puerto Rican politicians lack management skills, while others have been in government only to enrich themselves (and their egos) at the expense of the people of Puerto Rico. To them I say: enough is enough.
This Board, despite its shortcomings, is perhaps a necessary evil because of two main reasons:
Economic Reasons: The Control Board should understand that Puerto Rico is going nowhere without economic development. To be able to pay back its creditors, the local economy needs to generate sufficient tax revenues. How can this be done? The Board can implement major economic development initiatives, such as private mega-projects that have been stuck for years because of a ridiculously inefficient bureaucracy (perhaps justified by politicians by lack of permits). Some examples are the Port of Ponce, Roosevelt Roads, the Ramey Base, renewable energy projects, public-private partnerships, among others. These projects will employ thousands of people, which in turn will pay taxes and get the economy going.
Political Reasons: Enough lamentation. The “Commonwealth” as it is now does not provide a long-term solution for Puerto Rico. The Board should pressure Congress to provide binding solutions to the U.S. citizens that call Puerto Rico home. Also, it can ignite Puerto Ricans to engage in significant discussions about the status of the island.
The Board, and more importantly its Executive Director, should understand that not only are bondholders important, but also Puerto Ricans and their future. Economic development will jumpstart Puerto Rico’s economy. And a no-clearer display of colonialism will hopefully lead Puerto Rico and the United States to solve the status issue with statehood or independence as a final solution. The Board’s success will ultimately depend on the capacities and intentions of its members and how they relate to the reality of the island.
I hope to wear my red, white, and blue to celebrate the 4 of July soon. In the meantime, I celebrate in an interlude… eager that this Board will help us move forward once and for all.
*The author was born and raised in Puerto Rico, and is a recent graduate of the University of Pennsylvania’s Wharton School. He wrote his senior thesis on Puerto Rico’s fiscal crisis. He recently gave his graduation speech at The Wharton School’s undergraduate graduation ceremony. Contact: Sebastian.Negron-Reichard.w16@wharton.upenn.edu