This week marked the beginning of Hispanic Heritage Month. September 16 was Mexican Independence Day celebration. During this Hispanic Heritage Month I am thinking about Puerto Rico, a part of the U.S. often ignored unless in tourist ads.
Cristóbal Colón was in such awe when he set foot on Borinquén (Taíno Indians name) that he called it ‘La Isla del Encanto’, the Enchantment Island. The island-nation preserves its natural beauty in the middle of a bustling society. Sustained economic development, although superior than most of Latin America, lags its potential. I am referring to the potential to raise a stagnant economy and living conditions of Puerto Ricans as well as an investment that could complement the U.S. economy.
How? Here are some examples:
Ready talent: About 25% of the 3.5M Puerto Ricans living on the island are bilingual and many, through Pell Grant aid, are also college educated yet underemployed. This relatively young, educated and English-speaking population could become a catalyst in filling hundred of thousands open high-tech jobs both at the professional and trade levels.
Culture: Puerto Ricans have lived in a dual – American and Latin – society for over 100 years, already mastering multidimensional approaches to the challenges of an increasingly diverse society. They are also primed as easy bridges between Latin America and the U.S.
Puerto Rico is a good economic partner for the U.S. Stable politically, Puerto Ricans are proud of who they are, but also value the relationship with the U.S. Setting aside referendums for full statehood, during the last century over 95% of the population consistently voted for a relationship with the United States.
Facing economic challenges that are exponential in nature versus the mainland, Puerto Ricans demonstrated integrity in the way they have handled investors during the recent crisis. Some are taking note. Quoted The New York Times this week: “hedge funds, including Perry Capital, Fir Tree Partners and other members of the self-styled Ad Hoc Group of investors, have bought $4.5 billion of Puerto Rico government guaranteed and tax-supported bonds — or roughly 10 percent of the total — making them a financial and political force on the island.”
Armed forces: Already active in the Armed Forces since the 1920s, Puerto Ricans are passionate patriots. Building on multi-cultural and multi-lingual background, soldiers could become an asset in learning Arabic languages and connecting with diverse groups around the world.
Geography: Most of Puerto Rico has rich, moist soil. My mother used to throw seeds out of the window and the next week plants were growing. The land is ready for a sustainable, yet organized way to produce exotic fruits and vegetables, organic produce or to build biomes that would mimic world forests as laboratories for new medicine discoveries.
I would not want to see all pristine land disappear, but there are many undiscovered treasures in real state at prices that are frankly a bargain. Investors need to think beyond the tourist industry.
Deep ports: The name Puerto Rico means rich port. The San Juan Bay is one of the deepest points in the Atlantic Ocean. Could these ports house ships from a new local assembly or manufacturing center? There are plenty tourists ships.
Investment through high interest debt is an opportunity but not enough. The ecosystem in support of the investment must also be addressed.
As a Puerto Rican I know that on the island, you think small. The investor side and the local governments often ignore the potential that a small and rich island can offer. It is time to change that.
Let’s do not ignore Puerto Rico’s beauty nor its economic potential enchantment.
Happy Hispanic Heritage Month!
