fc46_lecture 12 (10-24-07)

fc46_lecture 12 (10-24-07) - Jodi Krakower FC 46 Caribbean...

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Jodi Krakower FC 46 – Caribbean Societies Lecture 12 10-24-07 Puerto Rico (con’t.) Puerto Rican Development Strategies - Objectives o self-sustained growth o full employment o ending poverty - Strategy o industrialization o modernization - Method o foreign investment of capital technology - Incentives for which were… o cheap labor o tax holidays to US firms o government assistance re infrastructure subsidies Development Phases - 1941-45: state led reforms - 1945-47: import substitution - 1947-73: Operation Bootstrap o 1947-49: labor intensive strategy o 1960-73: capital intensive strategy - 1973-76: severe economic crisis - 1976: section 936 of US tax code enacted o Gave tax free status on profits to US firms in PR - 1976-96: tax subsidy strategy - 1996: section 936 repealed o Corporations already in PR given 10 years grace - severe consequences for PR economy o flight of industries from PR A balance sheet - Gains o Modernization Structural change
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Per capita income gains
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fc46_lecture 12 (10-24-07) - Jodi Krakower FC 46 Caribbean...

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