“The US Bureau of the Census predicts that in the year 2050 the population of Puerto Rico will be 2.3 million of which 50 percent will be elderly, an island where 50 percent of people are elderly cannot support the University of Puerto Rico – Mayagüez”, said Doctor Orlando Sotomayor.
Puerto Rico’s intellectuals are leaving the island. Graduates are being recruited by large companies or are choosing to leave the island to join the mainland’s workforce.
Companies like General Electric, Microsoft, and other U.S. government agencies attend yearly job fairs with the hope of luring in young graduates in the science, technology, engineering and math disciplines with the opportunity to work within the U.S.
Sotomayor said “Puerto Rico has been experiencing a migration of young professionals because of a combination of high unemployment rate in the island, employment opportunities for professionals as key motivators for the increase in migration in recent years”.
U.S. encroached necessities that expand costs and lessen aggressiveness, such as the Jones Act, which requires U.S. ships, signals, and workers on all ships transporting merchandise between U.S ports. As an island, Puerto Rico depends a great deal on shipping than any U.S port city, and has been harmed relatively that considerably increasingly consequently.
A transportation framework on the island with inadequate vicinity of railroads, and over-dependence on trucking over an arrangement of poorly administered streets.
Productivity that ranks around the most noticeably awful on the planet, by the World Bank. A delicate money framework with impeded capital and over-dependence on outside financing instead of store collecting.
The fragile money saving segment restrains the accessibility of financing to organizations, making the accessibility and cost of capital for business extension and entrepreneurial action risky.
Puerto Rico has been in a recession since 2006. The obligation emergency is not new and has been growing for a long time with major government plan shortages secured by bond bargains. In 2008, the representative cut 38,000 legislature occupations, diminished salary assets considerably, and cut the corporate charge rate.
These deliberations accelerated humble development by 2012, however since one-third of the nation is utilized by the administration, the individuals who lost their occupations were not satisfied with these changes and voted for another governor in 2012.
While Puerto Rico’s debt challenges are not original, its province status and vicinity to the U.S. make conquering these tests more troublesome. It is for every capita salary is less than any U.S. state, yet it does not have the adaptability to address work and other investment approaches that could make it more aggressive in the worldwide commercial center.
Given the assessment free status of its city securities, Puerto Rico’s obligation has become colossally as the expense of acquiring cash was very low. While bankruptcy is not an alternative for the island, speculators all around will work with Puerto Rico to lessen the obligation and give it possibility to let the later changes enhance the economic climate.