NEWS

The same story as in 2002: the PR Government is short of money and is scratching all pockets across the island. Once again, the Government has decided to balance the fiscal equation by raising taxes. The authorities refuse to trim an already huge budget. The question still remaining is: will we eventually find a cure to the wounds of the public budget? In this issue, we address the other side of the equation and analyze the way the PR Government spends the taxes we pay and other resources. We will travel backwards in time to confront the real source of our fiscal woes.

Fiscal 2004 closed with the highest rate of growth since 2000. Although far from spectacular, the economy performed well with significant gains in many aspects. However, the happiness will not last too long since the economy is expected to decelerate slightly this year. The PR economy will operate in a global context featuring growth, but also a big uncertainty stemming from the island’s huge public debt, trade deficit in the mainland, and a battered dollar. The Puerto Rico economy will have to fight its way, through a structural deficit and new increases in taxes. Find out how the economy will perform through 2007, what setbacks it could face, and what will it take to overcome them.

The PR government faces an enormous challenge to keep expenses aligned with revenues. For decades, the government has provided more goods and services to citizens than it can afford, thus confronting a structural deficit. The need to co-govern finds a fertile ground with two party platforms calling for tax reductions and more efficient public services. In sum, PR needs to increase revenues and reduce expenses to avoid further damage. In the end, the real challenge is fiscal reform. This issue discusses how revenues can increase via two types of taxes: the Value Added Tax and the Sales Tax. We present the facts; you decide which system is better for you and PR.

After good behavior in the 90’s, the oil market has gotten wrathful again. Since the very beginning of this century, oil prices have bounced back to put more strain on an already fragile world economy. Wars and conflicts might end, but oil prices keep pointing towards the sky and rattling the nerves of consumers and producers. An importer of more than 80 million barrels a year, PR cannot disregard the ravages of oil. This issue reviews the turmoil in the oil market and its causes. We navigate through the vast grid of oil in the economy and analyze how fit is our economy to deal with soaring oil prices. Don’t miss this interesting journey across the black gold world.

Drug costs are the fastest growing part of Health Care spending in the US. This fact made drug prices one of the hot buttons in the 2004 election. Public opinion is charged against the pharmaceutical companies and voters are expecting changes over the next four years. The consensus? Patients, and particularly seniors, are paying too much for drugs, and prices need to go down. Reforms proposed? Some of these include re-importation from Canada, Medicare, and more flexibility for generic drugs. Find out about the issues discussed in the election debate, the proposed reforms, and what the PR pharmaceutical industry should expect in the near future.

Electoral times have never been short of new proposals. All parties bid for the best ideas on issues such as: education, health, and crime. However, one important issue remains untouched: how to reduce the size of government, the same government that doles jobs while squeezing the pockets of taxpayers; the same government that invests while swelling the public debt and is so powerful that no candidate dares to defy. This issue targets the almighty giant and provides insights on how to unravel this pernicious trap that entangles the whole society. Find out how we can tackle successfully a long postponed challenge.

The world is aging. By 2050, the population of seniors will triple, forcing nations to reform pension plans and invest large amounts to provide adequate living standards for the elderly. PR is not an exception. Over the next 20 years, we will need to make tough decisions that will impact our economy and competitiveness, if we want to provide seniors what they need and deserve. Are we getting ready for the upcoming seniors’ explosion? Will we fulfill our social responsibility of taking care of those that built the modern PR? It is time for action. This issue reviews the demographic transition that PR and the World are experiencing. Find out how this population trend will reshape our society for the 21st century.

Election 2004 is around the corner. This election will take place in a new international context, a new world marked by the fever of globalization and free trade. The next four years will be decisive and we will have to face some postponed challenges. Will we definitely take the path of modern development and join the international contest? Will we retreat once again and dismiss current warnings? It is time to see what each party proposes to reshape our economy. This issue reviews the economic platforms of the three contenders in this election. Find out what these platforms propose and how they may impact you.

Confronted with some structural problems, Puerto Rico needs a strategic plan to fight back. This is precisely what PR 2025 is: a long run socioeconomic plan built upon our flaws and also upon our dreams. In this issue, we introduce the highlights of this strategic plan, without missing any of the important components of our reality, from economic to social to environment and infrastructure development. After one year of hard and exhilarating work by twenty-five task forces, the plan is ready. Now is the time for action. We review what needs to be done in order to fulfill our dreams.

Once praised as an economic miracle, Puerto Rico is now confronting structural problems, which threaten its economic and social goals. Loss of competitiveness, strong reliance on federal transfers, high rates of unemployment, and poor participation of local firms in cutting edge sectors are some of the flaws dragging the economy down. This is Part I of two issues that review the main challenges of our society and introduce PR 2025 as a novel effort to regain the lost edge. This initiative is the first comprehensive, long run strategic plan for Puerto Rico. It builds on our vision of the island, our dreams, and our opinions. Unless we get behind PR 2025, our challenges will remain.