Challenges and opportunities for the Puerto Rico economy : a review of evidence and options following Hurricanes Irma and Maria in 2017 / Craig A. Bond, Aaron Strong, Troy D. Smith, Megan Andrew, John S. Crown, Kathryn A. Edwards, Gabriella C. Gonzalez, Italo A. Gutierrez, Lauren Kendrick, Jill E. Luoto, Kyle Pratt, Karishma Patel, Alexander D. Rothenberg, Mark Stalczynski, Patricia K. Tong, Melanie A. Zaber.

Format:

Book

Author/Creator:

Bond, Craig A. (Craig Andrew), author.

Contributor:

Strong, Aaron.

Smith, Troy D.

Andrew, Megan.

Crown, John S.

Edwards, Kathryn A., 1964-

Gonzalez, Gabriella.

Gutierrez, Italo.

Kendrick, Lauren.

Luoto, Jill.

Pratt, Kyle.

Patel, Karishma.

Rothenberg, Alexander D.

Stalczynski, Mark.

Tong, Patricia K.

Zaber, Melanie A.

Rand Corporation. Homeland Security Operational Analysis Center.

Rand Corporation.

United States. Federal Emergency Management Agency.

Language:

English

Subjects (All):

Hurricane Irma, 2017.

Hurricane Maria, 2017.

Hurricane damage--Puerto Rico.

Hurricane damage.

Economic conditions.

Puerto Rico--Economic conditions--21st century.

Puerto Rico.

Economic history.

Physical Description:

xxiv, 357 pages : illustrations (some color), color maps ; 28 cm

Place of Publication:

[Santa Monica, CA] : RAND Corporation , 2020.

Summary:

Recovery of the Puerto Rico economy in the aftermath of Hurricanes Irma and Maria means not only rebuilding the public and private infrastructure, supply chains, human capital, and other contributors to economic output but also reversing negative economic trends that existed and presented major challenges to growth even before the storms hit. In their report, the authors explain the history of economic development and policy in Puerto Rico and discuss the state of the pre storm economy, including key economic challenges. They use the historical data on overall economic activity (unrelated to the hurricanes) to construct a counterfactual to assess the net causal effect of Hurricanes Irma and Maria on Puerto Rico's economy. The counterfactual examines what would have happened to employment, labor, population, and tourism, as well as the government of Puerto Rico's fiscal position, had the hurricanes not occurred. Observed economic indicators following the storms are then compared to this counterfactual to estimate the real net economic consequences of the hurricanes, including overall damage from the storms and the effect of the recovery effort. The analysis provides considerable detail on the conditions in Puerto Rico before and after the 2017 hurricane season so that decisionmakers can adopt better policies in rebuilding a sustainable and healthy economic sector and, more broadly, the whole of Puerto Rico. The authors recommend a set of principles based on economic theory and provide courses of action included in the recovery plan compiled from their findings about pre storm conditions and trends and the input/observations of on-the-ground partners and stakeholders in the recovery effort.

Contents:

Machine generated contents note: ch. 1 Introduction

Objectives of This Report

pt. I The Economic History of Puerto Rico

ch. 2 Brief History of Economic Development in Puerto Rico

Conclusion

ch. 3 Detailed Economic Prestorm Conditions and Trends in Puerto Rico

Gross National Product and Gross Domestic Product

GDP by Sector

Economic Activity Index

Establishments

Employment and Unemployment

Establishments, Employment, and Industry Cluster Wage Location Quotients

Tourism

Trade and Transportation

Agriculture

Manufacturing

Fisheries and the Ocean Economy

The Nonprofit Sector

Sociodemographics

Puerto Rico Revenue and Public Debt

Federal Spending and Public Benefits

The Informal Economy of Puerto Rico

Total Formal Plus Informal Economic Activity

ch. 4 Challenges to Economic Development in Puerto Rico

Ease of Doing Business

Tax Structure

Labor Policy

Transportation and the Jones Act

Challenges to the Tourism Sector

Federal Entitlement Programs

pt. II Estimates of Economic Damage from Hurricanes Irma and Maria

ch. 5 Methodology for Economic Damage Assessment Following Hurricanes Irma and Maria

Process

Analysis and Analytic Outputs

Difference Modeling

Data Gaps

Additional Assumptions and Uncertainties

ch. 6 Economic Damage Assessment Following Hurricanes Irma and Maria

Summary of Key Impacts

Predictive Estimates of Damage

Estimated Damage to Overall Economic Activity

Trade

Sociodemographic Impacts

pt. III Economic Recovery Options

ch. 7 A Set of Principles for Public Investment Consistent with Economic Growth in Puerto Rico

Principle 1 Invest Primarily in Infrastructure, Including Electricity, Roads, Bridges, and Other Transportation Assets, Communications, and Water Systems

Principle 2 Lower the Costs of Doing Business Imposed by Government Policy and Actions

Principle 3 Reform Labor Market Policies and Social Welfare Programs to Reduce Barriers to Formal Work and Provide Incentives for Workforce Training

Principle 4 Invest in Data Gathering and Information Products to Enable Better Public and Private Decisionmaking

Principle 5 Pursue Investments That Create an Economic Environment to Support Multiple Development Initiatives, Both Known and Unknown

ch. 8 Potential Courses of Action for Economic Development in Puerto Rico Following Hurricanes Irma and Maria

Background

Approach to COA Development

COA Themes for the Economy of Puerto Rico

Strategic Initiatives

Summary of Economics Courses of Action

ch. 9 Conclusions

Limitations of This Report

Appendix A Detailed Courses of Action

ECN 1 Increase Ease of Doing Business

ECN 2 Implement Workforce Development Programs

ECN 3 Assist the Sport Fishing Industry

ECN 4 Enact Sound Fiscal Policies

ECN 5 Improve Retention of Educated Workforce Through Policy Change

ECN 6 Improve Data Collection, Analysis, and Presentation

ECN 7 Create Research Centers and Partnerships

ECN 8 Define and Develop Economic Development Zones

ECN 9 Invest in Agricultural Recovery Assistance

ECN 10 BLUEtide Initiative

ECN 11 Medical Tourism Initiative

ECN 12 Provide Innovation and Entrepreneurial Training

ECN 13 Develop PRIDCO's Abandoned Buildings for Incubators

ECN 14 Direct Small Business Investment

ECN 15 Redevelop Former Roosevelt Roads Naval Station

ECN 16 Revitalize the Santurce Neighborhood of San Juan Through Business Development Activities

ECN 17 Construct the Puerto Rico Science, Technology, and Research Trust's Research and Development Center at Science City

ECN 18 Compensate Farmers for Crop Losses

ECN 19 Recover and Restore Fishing Facilities and Equipment

ECN 20 Rehabilitate Plaza Darsenas

ECN 21 Study Hurricane Impacts on the Local Economy

ECN 22 Rehabilitate Paseo de la Princesa and Princesa Building

ECN 23 Implement Job Creation Initiative

ECN 24 Revitalize the PR-127 Petrochemical Corridor in Guayanilla-Penuelas

ECN 25 Assist Dislocated Workers Through the Use of Existing Grants

EGN 26 Conduct Studies for Workforce Development and Rapid Response

ECN 27 Rehabilitate Esperanza Boardwalk and Waterfront

ECN 28 Implement Initiative to Promote Entrepreneurship

ECN 29 Design Puerto Rico "Open for Business" Campaign

ECN 30 Help Revitalize Eco and Beach Adventure and Fleet Boat Assistance

ECN 31 Change Social Welfare and Benefits Policy

ECN 32 Create Business Resiliency Hubs

ECN 33 Establish Business and Industrial Development Corporations (BIDCOs)

ECN 34 Establish Matching Fund Set-Aside

ECN 35 Center of Excellence for Agricultural Technologies Training

ECN 36 Agricultural Financial Support for Access to Capital

ECN 37 PRIDCO Agriculture Parks

ECN 38 Agricultural Industry Support

ECN 39 Exemption of Puerto Rico from the Jones Act

ECN 40 Enable Puerto Rico to Become an International Air Cargo and Passenger Hub

Appendix B Notes on Electricity Deregulation and Privatization

Appendix C Supplemental Information on the Jones Act

Appendix D Case Studies of Economic Growth

Appendix E Government Promotion of Entrepreneurship

Appendix F Recovery Spending and Impacts.

Notes:

"HSOAC, Homeland Security Operational Analysis Center."

Includes bibliographical references (pages 332-357).

See also RAND/RR-2595-DHS, RAND/RR-2597-DHS, RAND/RR-2598-DHS, RAND/RR-2599-DHS, RAND/RR-2602-DHS, RAND/RR-2603-DHS, RAND/RR-2604-DHS, RAND/RR-2605, RAND/RR-2606-DHS, RAND/RR-2607-DHS, RAND/RR-2608-DHS, RAND/RR-2856-DHS, RAND/RR-2858-DHS, RAND/RR-2859-DHS, RAND/RR-2861-DHS, RAND/RR-3040-DHS, RAND/RR-3041-DHS, RAND/RR-3042-DHS.

ISBN:

1977403255

9781977403254

OCLC:

1202435273