Professional Documents
Culture Documents
▪ US Commonwealth - Territory
▪ Residents are US Citizens
▪ But Puerto Rico is treated different to states in terms of funding
▪ Puerto Ricans can’t vote for US elections while on the island
▪ US decides on trade and monetary policy
▪ PR has very little policy space
Economic Decline
▪ Attacks labor rights and blames them for the problems in the economy
The New Fiscal Plan
▪ The Board estimates that its structural reform agenda will more than offset
austerity’s drag on economic growth
▪ These estimates are not realistic
▪ The reforms are modelled after what the IMF did in Europe
▪ So proven track record is underestimating negative feedback
Debt Restructuring