In July 2016, Puerto Rico defaulted on its debt for the third time. This follows a multi-year debt crisis in the unincorporated territory, stemming from expired tax incentives for US companies, an economic depression, and government inefficiency. Although some are optimistic about Puerto Rico’s future, others have already referred to it as a “failed state”.
So, is Puerto Rico a failed state? Well, the term itself is widely debated, but according to the non-profit Fund for Peace, there are four main characteristics of a “fragile” or “failed state”. One characteristic is that a fragile state loses the legitimate authority to make collective decisions. This is a bit of an interesting question for Puerto Rico, which relies heavily on the United States. Their economic boom was predicated on giving tax incentives to US businesses, and there was even a law from 1917, requiring all imports to be done on American ships with American crews. In fact, the current debt crisis has only been managed through the direct authority of the United States, after President Obama signed 2016’s PROMESA law, establishing the federal board to restructure Puerto Rico’s debt.
Another hallmark of fragile states is “an inability to provide public services”. The monopolized energy service, Puerto Rico Electric Power Authority, is pushing to raise electricity prices by 26% in early 2017, and all residents, even those with little to no income, will be forced to pay. But despite the rapidly rising costs, and the fact that more than a third of those who live in housing projects have reported an income of “zero,” Puerto Rico itself has been able to provide utilities to those who are able to pay for them.
A fragile state also often loses control of its territory and/or police force. Puerto Rico’s police force has been plagued by corruption and human rights abuses for decades. According to a report by the Department of Justice, from 2005 to 2010 roughly 10% of the police force was arrested for murder, assault, drug trafficking and other crimes. The ACLU put out a similar report, calling Puerto Rico: the Island of Impunity.
Finally, fragile states are unable to interact with other states as full members of the international community. Simply put, Puerto Rico is not a full member of the international community, as a dependent and unincorporated territory of the US. The downgrade of its credit rating to a D for “default”, as well as an influx of the Zika virus around Summer 2016, has made it risky to invest in, and even visit, and has made negotiations with other countries relatively fruitless. But while there are shades of a “fragile state” within Puerto Rico, it does not fulfill the basic characteristics.
Despite widespread poverty, mass emigration, and a slow breakdown in the day-to-day social order, as an unincorporated territory, it will be likely one day see a return to some form of normalcy with support from the United States. Puerto Rico is in a difficult position since it can’t declare bankruptcy because of its territorial status. So does the US have a responsibility to bail out its territories?
Thanks for coming by, make sure to give comment and subscribe for new articles every day. Bye!
So, is Puerto Rico a failed state? Well, the term itself is widely debated, but according to the non-profit Fund for Peace, there are four main characteristics of a “fragile” or “failed state”. One characteristic is that a fragile state loses the legitimate authority to make collective decisions. This is a bit of an interesting question for Puerto Rico, which relies heavily on the United States. Their economic boom was predicated on giving tax incentives to US businesses, and there was even a law from 1917, requiring all imports to be done on American ships with American crews. In fact, the current debt crisis has only been managed through the direct authority of the United States, after President Obama signed 2016’s PROMESA law, establishing the federal board to restructure Puerto Rico’s debt.
 |
| Puerto Rico via thenation.com |
A fragile state also often loses control of its territory and/or police force. Puerto Rico’s police force has been plagued by corruption and human rights abuses for decades. According to a report by the Department of Justice, from 2005 to 2010 roughly 10% of the police force was arrested for murder, assault, drug trafficking and other crimes. The ACLU put out a similar report, calling Puerto Rico: the Island of Impunity.
Finally, fragile states are unable to interact with other states as full members of the international community. Simply put, Puerto Rico is not a full member of the international community, as a dependent and unincorporated territory of the US. The downgrade of its credit rating to a D for “default”, as well as an influx of the Zika virus around Summer 2016, has made it risky to invest in, and even visit, and has made negotiations with other countries relatively fruitless. But while there are shades of a “fragile state” within Puerto Rico, it does not fulfill the basic characteristics.
Despite widespread poverty, mass emigration, and a slow breakdown in the day-to-day social order, as an unincorporated territory, it will be likely one day see a return to some form of normalcy with support from the United States. Puerto Rico is in a difficult position since it can’t declare bankruptcy because of its territorial status. So does the US have a responsibility to bail out its territories?
Thanks for coming by, make sure to give comment and subscribe for new articles every day. Bye!
0 komentar