The Taino Indians were the first Puerto Rican inhabitants. The island was ‘discovered’ by Columbus in 1493 on his second voyage to the New World and was governed by Ponce de Leon from 1508. Puerto Rico (Rich Port) was eventually ceded to the USA in 1898 at the end of the Spanish-American War. In 1917 Puerto Ricans were granted US citizenship and in 1952 the island became a self-governing ‘Commonwealth in association with the USA’. Many people regard this situation as a compromise between full membership to the USA and full independence. In practice, this gives Puerto Ricans
an American passport and makes them eligible for military draft but they do not pay US federal taxes and cannot vote in US elections. Of the main political parties, the
Partido Popular Democrático (PPD) is broadly in favor of the existing Commonwealth status, while the
Partido Neuvo Progresista (PNP) supports full state membership. In December 1998, the third referendum in 30 years was held on the issue: voters were asked whether they wished Puerto Rico to become the 51st state of the USA, become independent, enter a compact of Free Association (similar to that which operates in a number of Pacific micro-territories) or retain the status quo. By a narrow majority, they voted for the status quo. There is still a strong lobby for full independence for Puerto Rico, and the issue remains a sensitive issue on the island: its advocates received a boost in 2003 when the US military ended its use of the island of Vieques for military exercises after 60 years.
Puerto Rico has a representative in the US House of Representatives; the inhabitants of the island are US citizens, but they may not vote in presidential elections. The election for Governor, held in November 2000, was a three-way fight between PNP candidate Carlos Pesquera, Sila Maria Calderón of the PPD and Ruben Berrios Martine of the small
Partido Independentista. Calderon won with just under half the total poll. Elections to the Senate and the House of Representatives on the same day gave the PPD a small majority in both houses. At the end of 2004, Calderón was opposed by Anibal Acevedo Vila. After two months of wrangling and recounts, the leader of the pro-Commonwealth Popular Democratic Party was confirmed as the new Head of Government.
GovernmentExecutive power is held by the Governor, who is elected by universal adult suffrage for a four-year term, assisted by a 15-member Cabinet staffed by appointees. A bicameral assembly, a scaled-down version of the US Congress, is responsible for legislation. The House of Representatives has 54 members; the Senate has 28.
EconomyPuerto Rico has few natural resources, although some nickel and copper have been located. Manufacturing has overtaken agriculture as the main source of income following an intensive program of industrialization by the government.
The main products are pharmaceuticals, electrical and electronic equipment, processed food, textiles, clothing, rum, petrochemicals and refined oil. There is a foreign free-trade zone at Mayagüez. In the agricultural sector, dairy and livestock produce is now more important than sugar cane, the island’s main crop. Fresh fruit and vegetables are grown for export.
Tourism is the main service industry and has undergone steady growth in recent years; the sector is now worth more than US$2 billion annually. Another major source of revenue for the territory derived from a US naval base on the island of Vieques. Although employing over 6,000 people and injecting an estimated US$300 million annually into the economy, it was widely unpopular with islanders; after sustained pressure, the closure of the base was announced in 2003.
Puerto Rico has observer status at the Caribbean trading bloc, CARICOM. The USA and its corporations dominate both the domestic economy and overall trade patterns, although Puerto Rico has important trading links of its own with Japan, the Dominican Republic and Venezuela. The US government is in the process of removing certain tax exemptions enjoyed by US and foreign investors in Puerto Rico; the economic impact of this is as yet unclear but is causing concern in the territory.
Next Page »
