Technology industry in Puerto Rico

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The technology industry in Puerto Rico represents 28.3% of the manufacturing sector in the economy of Puerto Rico. [1]

Economy of Puerto Rico

The economy of Puerto Rico is classified as a high income economy by the World Bank and as the most competitive economy in Latin America by the World Economic Forum. The main drivers of its economy are manufacturing, primarily pharmaceuticals, textiles, petrochemicals, and electronics; followed by the service industry, notably finance, insurance, real estate, and tourism. The geography of Puerto Rico and its political status are both determining factors on its economic prosperity, primarily due to its relatively small size as an island; its lack of natural resources used to produce raw materials, and, consequently, its dependence on imports; as well as its suzerainty to the United States which controls its foreign policies while exerting trading restrictions, particularly in its shipping industry.

Contents

History

In 1999, the technology sector in Puerto Rico was ranked 16th in exports and 37th in employment among the United States. [2]

United States Federal republic in North America

The United States of America (USA), commonly known as the United States or America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe's 3.9 million square miles. With a population of more than 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the most populous city is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico. The State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean. The U.S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The extremely diverse geography, climate, and wildlife of the United States make it one of the world's 17 megadiverse countries.

As a result of the Puerto Rican government-debt crisis, interest in revitalizing the economy through the technology sector was expressed, with Alberto Bacó Bagué describing it as "one of the pillars of our economic development program". [3]

The Puerto Rican government-debt crisis is a financial crisis affecting the government of Puerto Rico. The crisis traces back its history to 1973 when the government began to spend more than it collected. To cover that imbalance, the government issued bonds rather than adjust its budget. That practice continued for four decades until 2014 when three major credit agencies downgraded several bonds issues by Puerto Rico to "junk status" after the government was unable to demonstrate that it would be able to pay its debt. The downgrading, in turn, prevented the government from selling more bonds in the open market. Unable to obtain the funding to cover its budget imbalance, the government began using its savings to pay its debt while warning that those savings would eventually be exhausted, rendering it unable to pay its debt. To prevent such a scenario, the United States Congress enacted a law known as PROMESA, which appointed an oversight board with ultimate control over the commonwealth's budget. As the PROMESA board began to exert that control, the government sought to increase revenues and reduce its expenses by increasing taxes while curtailing public services and reducing workers' benefits. Those measures further compounded the crisis by provoking social distrust and unpleasantness in the general population. In August 2018, a debt investigation report of the Financial Oversight and Management Board for Puerto Rico reported the Commonwealth had $74 billion in bond debt and $49 billion in unfunded pension liabilities as of May 2017.

Alberto Bacó Bagué is a lawyer, a certified public accountant (CPA), and a legal and commercial advisor that served as Director of the Puerto Rico Economic Development Bank from 1990 to 1993. Previous to that Bacó served as Executive Vice President of the Puerto Rico Government Development Bank from 1989 to 1990. He also served as General Counsel at the Office of the Commissioner of Financial Institutions from 1986 to 1989, and was a member of the Board of Trustees of the University of Puerto Rico from 2004 to 2006. In his private life Bacó served as President and Chief Executive Officer (CEO) of Marvel International and Bohío International from 2005 to 2011.

See also

Manufacturing in Puerto Rico is the largest economic sector in the economy of Puerto Rico; composing almost half of the gross domestic product (GDP) of Puerto Rico. All manufacturers in Puerto Rico are in some way interconnected with the Puerto Rico Industrial Development Company (PRIDCO) which provides substantial incentives for companies that manufacture in Puerto Rico. Manufacturers are also voluntarily interconnected through the Puerto Rico Manufacturers Association which serves as their primary trade association and their main lobby group upon the Legislative Assembly of Puerto Rico. Most manufacturing in Puerto Rico today is the product of Operation Bootstrap.

The pharmaceutical industry in Puerto Rico encompasses more than half of all manufacturing done in Puerto Rico. As the island's most prominent industry, pharmaceutics generates more than 18,000 jobs, pays more than $3 billion USD in taxes, comprises about half of total exports, and has generated more than 25% of the island's GDP for the past four decades. Comparatively, Puerto Rico is the fifth largest area in the world for pharmaceutical manufacturing with more than 80 plants, including:

Telecommunications in Puerto Rico includes radio, television, fixed and mobile telephones, and the Internet.

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References

  1. Benetti, Raffaello (2003). Survival of Weak Countries in the Face of Globalization: Puerto Rico and the Caribbean. La Editorial. UPR. p. 96.
  2. Valentin-Mari, Jeffry (2000-06-01). "U.S. High-Tech Workforce Zoomed To 5 Million In 1999: Puerto Rico Ranked 37th In The Nation In High-Tech Employment And 16th In Technology Exports". Caribbean Business. Puerto Rico Herald . Retrieved 2017-05-08.
  3. Glade, Jim (2017-01-15). "Puerto Rico turns to tech and entrepreneurialism to revitalize the economy". TechCrunch . Retrieved 2017-05-09.