Business View Caribbean - April 2016 45
Other cities, states, and countries have confronted the
same situation only to regroup in order to rebound and
prosper. Our current financial situation was caused by
decades of prioritizing on short-term, expedient deci-
sions over long-term plans. But a problem of decades
in the making will not disappear overnight.
We have taken firm steps to solve our current situa-
tion by reforming our pension system, implement-
ing spending restraint measures, and presenting the
most austere budget to ensure liquidity of the govern-
ment. Also, we are addressing energy - one of our most
challenging hurdles in economic development - with
a complete restructuring process that will incorpo-
rate additional sources of energy production, and will
translate into savings and a more reliable system for
our people. The fact that we are seeing progress at the
negotiating table is a clear sign of our commitment to
reform and to be more effective. This represents an
invaluable opportunity to collaborate and for strategic
alliances in the region.
Our geographical location is our most prized posses-
sion. We are all unique but at the same time, just by
being neighbor countries in this strategic, geographi-
cal location called the Caribbean, we are in some ways
perceived as the same. Perception is reality, and we
should all take it as a huge opportunity. No matter
how you place the map, all the Caribbean countries
will appear at the center of the Americas. Center is a
powerful word and we must use it to our advantage
with carefully designed business collaborations to be-
come the world’s center for the new economy. As such,
we can be the focal point where forward thinkers of
all matters and expertise coincide to exchange knowl-
edge and create ideas.
We have invested time and energy over the last three
years to restart key sectors of the economy that hold
tremendous potential to generate growth. With the
right legislation and leadership we partnered with
the likes of Lufthansa, Honeywell, PricewaterhouseC-
oopers, Santander, and other well-established inves-
tors who decided to break ground in the island to do
business much beyond the short term. They are world
leaders in technology, real estate, and finance. They
did it because they are convinced that Puerto Rico rep-
resents a sound investment.
The unemployment rate has gone down to from 16.5
percent to 11.4 percent, the lowest for this time of
year since 2008; retail sales have had a steady in-
crease over the past years and will reach a projected
$39.5 billion by the end of the year; and we are finally
closing the gap between revenue and expenditure.
Key sectors are flourishing: aerospace, bio-pharma,
live sciences, technology, tourism, agriculture, re-
search, finances, insurance, and film, among others.
Investors and companies of grand international stat-
ure have taken advantage of a four percent corporate
tax rate. We have designed a highly competitive set of
laws that have resulted in alluring foreign capital to
stimulate the local economy. By virtue of our unique
commonwealth relationship with the United States,
Puerto Rico enjoys fiscal autonomy, which means that
it can offer very attractive tax incentives not available
elsewhere in the U.S. Yet, all federal laws apply to
Puerto Rico and companies can enjoy the benefits and
protection of operating within a U.S. jurisdiction, with
the benefit of doing so under a foreign tax structure.
But that is not all. The bilingual and bicultural nature
of its people, have placed Puerto Rico as one of the
most competitive business destinations in the world.
We have the necessary transportation infrastructure:
a port that ranks at #10 in container movement in the
United States; an international airport that handles
thousands of direct flights to all major cities; and a
communication infrastructure to host any type of glo-
