Puerto Rico’s economic outlook is not rosy at the moment. The island is sinking under the accumulated weight of roughly $72 billion in debt and a declining population as inhabitants flee to the mainland in search of better jobs and opportunities.
The island is twice as poor as the poorest U.S. state, Mississippi, based on per-capita income, but the cost of living is 13 percent higher than in the United States, according to the Council for Community and Economic Research.
Due to Puerto Rico’s colonial relationship with the United States, with 3.6 million inhabitants and no voting power in Congress, its economy is by and large subject to the whims of U.S. interests. The economy is dominated by U.S. corporations that have the power to fix high prices for everyday goods. Puerto Rico famously has more Walgreens and Wal-Mart stores per square mile than anywhere else in the United States and the world.
For the past decade, the island’s economy has steadily declined. Now the situation is such that some have compared it to Greece and Detroit. Many believe the only options to resolve the current debt crisis are restructuring or default.
Economist and former United Nations consultant Jose Villamil said in June to The Associated Press that “the last four administrations have kicked the can down the road. At this point, there is no more can to kick. So we’re going to take some very strict measures and some very profound measures. It’s going to hurt, but there’s no way out.”
Educational lifeline
A strong system of education typically is a lifeline for economies, producing workers prepared to take on the needs of society. For Puerto Rico to rebound, at the most simplistic level, it will need educated workers.
