A Look at Institutions in Socio-Economic Development for Puerto Rico

Los Suenyos de Pan

2010-10-08T17:12:00.003-04:00

Pan, Tierra, y Libertad
Ceno de la patria,
la esperanza de la verdad.
El Pan Nuestro de cada dia,
era tan vital de nuestro alimento.
Pero hoy en dia,
la perspectiva nueva de tu encuentro
Primero era pan blanco,
luego fue pan de trigo,
el consejo sigue siendo,
pero el pan es que yo consigo
La mejor dieta,se evita los carbohidratos,
según el doctor Atkins.
Los sueños de pan,se encuentran en mis hallazgos,
y una soledad en la barriga y el plato.

Tierra y Libertad.
Tierra llena de sol, de gracia, y de vida.
¡Tierra que se sembraba el pan ahora se siembra nada!
Solo se produce el plan nuevo,
la nueva era,
el nuevo puerto,
el rico nuevo,
la nueva época
En mi Viejo San Juan.
La tierra, de donde viene la comida,
el alimento se compra, se vende, lo sagrado es segundo.

¿Donde está la libertad?
Se encuentra entre el estado
y el asociado.
El estado se defiende
y el asociado a tu lado.
El ELA es donde vivo, entre
un estado
ya asociado
y libre
solo en mi corazon.

¿Atkins, Tierra, y Asociado?
El nuevo logo
del ELA que falta algo,
el sagrado ante el mercado,
lo barato sale caro,
el gobierno
y el privado,
se encuentra bueno
y se encuentra malo.
La libertad o la muerte.
Se confunde los dos,
lo que la isla se herede,
un orador sin voz.
El Estado Libre Asociado.
¡Nuestra ironia colectiva!
Una creencia dudado,
la muerte de una vida.
El nuevo puerto,
el charco nuevo,
en mi Viejo San Juan.
Parar el tiempo y haciendolo,
los sueños de pan.

Puerto Rico to lay off 16,000 workers, cut deficit

2009-09-26T21:50:00.000-04:00

http://www.google.com/hostednews/ap/article/ALeqM5h5FLy2hlHxqdpNON10_imUuncHHgD9AUKD0O0

Who can help Puerto Rico with its fiscal crisis?

2009-09-26T10:56:00.004-04:00

The PR government should consult with Felix Rohatyn on the island's fiscal crisis for his ability to help NY avert the crisis inthe 1970s.

http://en.wikipedia.org/wiki/Felix_Rohatyn

No te pierdas el anuncio de los despidos en el Gobierno en directo desde el Banco Gubernamental de Fomento

2009-09-25T14:25:00.000-04:00

http://www.elnuevodia.com/transmisionenvivo-619433.html

PPP Authority requesting public commentary on regulations of procurement activity

2009-09-08T17:17:00.003-04:00

You know the ELA is in trouble when they are soliciting public commentary on the procurement process. http://p3.gov.pr/Eng/News.html

The following is a my public commentary on regulations governing procurement for Puerto Rico:

PPP should set up a procurement policy board to oversee the procurement policy board rules that govern procurement of public sector resources for various contract purposes. The procurement policy board would clarify procurement rules and policies that pertain to soliciting funds for the purpose of doing business with all public sector agencies and missions (as long as all public sector agencies fall under one public sector jurisdiction).

NYC is an example of a procurement policy board that governs the clarification of procurement policies and rules that determine how contracts are administered.
http://www.nyc.gov/html/mocs/ppb/html/rules/rules.shtml

Although it is important for the government to work effectively and in a timely manner, it should not sacrifice speed with transparency and oversight. Very important.

Also, any office that is responsible for procurement of services cannot simultaneously be in charge of any budget. Budgeting and procurement should be separate, so as to avoid corruption and lack of oversight. Procurement should never be confused with the budgeting process and ensuring that resources are available for the said project.

A procurement policy board should clarify whether existing contracts will fall under a general body of procurement policy that is written under an independent procurement board, and it should determine which contracts fall under this general body of procurement. Ideally, all procurement should fall under a body of procurement rules that are created by an Independent policy procurement board.

The rules on procurement should avoid any language that ties procurement methods to ideology, particularly the preference for "privatization" or "nationalization" but on the the most efficient manner of procuring goods and services for the people of Puerto Rico.
it should be assumed that every manner of procurement may not be the best solution to solving a particular issue for the government and people of Puerto Rico.

Procurement contracts should demonstrate measurable outputs and the contracts should report to an independent committee to determine contract measurables, efficiency requirements, and intended outcomes for the government and the people of Puerto Rico.

Procurement Offices should ensure that funds are available (from an independent functioning budget office), but should ensure that contracts are administered in a fair and judicious manner. Procuring private services should not replace public sector functions, when the costs exceed public sector functions, unless it is deemed that contracted services serve as a low risk investment and does not take away from the basic services and needs that are provided by the government for the people of Puerto Rico.

A procurement oversight committee should review the daily functioning of a procurement office that is implemented with the PPP. This procurement oversight committee can consiste of a public advocate, ombudsman, Independent Budget Examiner, and Comptroller personnel to oversee and audit any procurement practices that are occurring throughout this system.

The stated efficiency goals shoudl exceed the net total increase in resources that were committed to creating the PPP process inthe first place. So if an additional net $1million are added (after some existing resources have been allocated for this purpose) to implement this system, then the PPP stated goal is to exeed $1million in savings throughout the system, whether by contracting out existing services, re-allocating existing contracts to more efficient vendors or re-examining other contracts to extract savings.

national infrastructure bank act of 2007

2009-09-04T09:16:00.000-04:00

http://dodd.senate.gov/multimedia/2007/080107_InfrastructurePacket.pdf

Response to Posting CPR for a Flatlining Economy

2009-09-04T08:39:00.002-04:00

CNE Blog was launched recently, very new, and very interesting commentary on solutions to economic problems facing the island's economy. I was surprised to hear about the "famous Keynesian" stimulus plan, although the island's fiscal policy response (like many states) has been contractionary, or to cut spending and increase taxes.
I think some of the things to simultaneously keep in mind when coming up with recommendations and possible scenarios for responding to the economic crisis in Puerto Rico is to ALWAYS keep in mind how the hell the PR economy got to where it's at. It has nothing to do with a particular political party. But I think that many economists would agree that Puerto Rico's economy has become much more dependent to the US economy. And regardless of your preferred island status, economic dependency towards the mainland United States exposes and undermines the island's economic stability. Regardless of your feelings towards the island's status, everybody knows NOW that many states (and cities) in the United States have fared better than others because certain economies have diversified and become less dependent on one particular sector or region. The same rule applies to Puerto Rico. For much too long, PR has drifted towards economic dependency on the mainland US, an obscure economic relationship that has driven the island's economy into disaster.

What to do now??? Long term stuff

If the island values enhancing their infrastructure (roads, bridges, public transportation), it must support and lobby for the National Infrastructure Bank Act of 2007, created by Senator's Dodd and Hagel. This bank will support implementing a national covered bond will utilize the federal government's leveraging ability to amass local municipal bonds together and avoid systemic risk for investors. It's not the tell all solution solver for PR's problems, but since their bond ratings have suffered (probably more so than other municipalities nationwide), it has very much to gain, and very little to lose in standing behind this bill.

I do concur with AD=C+I+G+NX as a national model for looking at the economy.

If the government is going to increase their spending, I would say that SMART government spending is better than ANY government spending, yes. The same way a private business must be conscious about their capital investments, so a government must be concerned with increasing the overall tax base (for the long term, ie, inflation, productivity growth, etc.) and providing better services for the economy.

If the government continues to cut spending and increase taxes, it will perpetuate the recession, since these policies are contractionary. But there is something more complicated than this. On the revenue side, if there is a gap of $3.2billion, why can't corporate taxes cover about half while the government either finances the other half and/or cut additional spending.

I think the short-term recommendations to appoint an economic reconstruction "czar" is in order because it will allow the government to re-dedicate a portion of its resources to allocate funding in an efficient manner. But the goals of "czar" MUST produce savings that will offset the new office, and the distribution of the office's funds.

Solution 2 on Multiplier Effects
Although construction IS one of the largest multiplier effects, one must keep in mind how much of the housing market (that started the economice decline nationwide) contributed to the expansion of the construction industry. Construction should focus primarily on public infrastructure projects as indicated in the report (roads, low-income housing, hotels), BUT should also include transportation improvements as well.

Medium Term Recommendations
I think that private sector development should be focused on small business development that has a local consumption and customer base. Many of the school reforms that were addressed for medium term recommendations are intimately connected with the resources that students have outside of schools, particularly after-school and other extra-curricular programs, and other career track programs (that continue to be cut nationwide for budget balancing).

I think a larger more aggressive approach is to reform shipping (export and import) laws that allow a larger possibility of imports and exports for the island's economy. This will not only primarily decrease shipping costs to and from the US but also open ports regionally as well.
More to come on international shipping and trade...

Old Post with some interesting relevance to covering budget deficit in ELA

2009-08-25T16:53:00.003-04:00

http://www.prensacomunitaria.com/sector-publico-y-privado/sector-privado/corporaciones/249-corporaciones-deben-1400-millones-a-hacienda.html

"Mientras la reducción en la nómina gubernamental recibe la mayor atención en la discusión pública sobre la crisis económica del País, la legislatura sigue aprobando leyes sin saber el impacto que tendrán en los fondos públicos."

Public Private Partnership Authority?

2009-08-24T11:03:00.002-04:00

I recently submitted an email to the newly created Public Private Partnership Authority, asking if the creation of the Authority would increase the government's operation expenditures, and by how much? I also asked what savings and efficiencies does the Authority anticipate through its proposed operations, given the island's fiscal climate.

I also wanted to know what performance metrics or scorecards will be used to determine if a contractor is providing the right kind of service at a minimum reasonable cost? Will the PPP Authority come up with a procurement rules to determine what are reasonable terms and conditions for existing and proposed vendors?

I was also curious to know what oversight will be needed for the PPP Authority, especially if the PR Treasury, GDB President, and Planning Board President reside over island government contracts. This is nothing personal against the people in those positions, as much as this question arises from the apparent conflicts of interest that contracts/procurement has with budgetary/fiscal functions in government.

I also asked if redundances in services can be eliminated in other ELA agencies in order to eliminate wasteful spending in government operations.

Hopefully, I can post their response as well.

response to fiscal situation report and structural deficits

2009-08-24T10:34:00.000-04:00

On page 2 of the Fiscal Situation report, the term "structural deficit" was defined as "...the excess of recurring expenditures over recurring revenues." The report goes further saying that "...It thus may be necessary, at some points in the analysis, to make subjective analytical judgments as to what items should or should not be included in calculating the structural deficit..."

I have no problems with that approach. Every quantitative analysis MUST lend itself some degree of subjectivity, particularly its philosophical approach in identifying the issues, and coming up with solutions. These are quite standard and normal in any scientific observation.

The report states that the structural is $354million less the stated ELA structural, because early retirement plans from EQ Board, interest payments on TRANS, swap transactions, and GDB loan payments should not be a part of recurring expenses. Fair enough.
But I was wondering why CNE feels these line items are non-recurring expenditures.

Also, if the structural deficit is between $3.2b to $2.8b, then what would be the solution proposals for this? Will PR decide to further reduce operating expenditures? And if so, from where would these reductions/savings go to? Will the ELA increase the total revenue base by increasing taxes and if so, where?

Although unpopular, I did support imposing the IVU or sales tax because not only did it increase the ELA base, but it supposedly offset inflation and spending, something that the island's economy (and the U.S.) has been too dependent on (70% of GDP?). This dependency exposes the island's economy to a larger risk of prolonged recessions, despite short term fiscal stimulus spending.

I think PR has to consider a combination of cutting operating expenditures with raising revenues, 2 items that are contractionary, but can be offset by re-structuring the island's debt payments, and invest in capital projects that crowd in investments inthe island's metropolitan periphery, not its center. That way, investor confidence will not be as high enough to absorb systemic investor risk (investor pull-out) and enough capital flows will continue at a sustainable pace.

Fiscal Situation Update for PR

2009-08-21T17:13:00.003-04:00

A report dated May 2009 by Center for New Economy was the Fiscal Situation Update. In the next week, I will be posting commentary on this article and hopefully some responses by CNE or other Analysts.

A New Direction for CNE?

2009-01-26T16:16:00.003-05:00

http://www.grupocne.org/about_us_summary.html

Center for the New Economy is an indy research institution, dedicated to do some serious economic development research. One of my previous blog postings is precisely my critique of CNE's earlier mission statement or goals, which were to promote a free enterprise system on the island. While I have been unapologetically critical towards this, I must say that after reviewing CNE's "About Us" REVISED webpage, I was rather impressed by CNE's change in organizational direction.

I DO NOT want to sound like I am blindly supporting CNE without being critical on some front (after all, how will we learn??) but I will say that CNE's faculty lineup (http://www.grupocne.org/cne_faculty.html) on their website and their change in organizational mission/vision has been impressive.

Whose ideas were these???

New Think-Tank should not look at just Institutions but Developmentalism itself

2007-09-09T20:03:00.000-04:00

For Puerto Rico's new think tank, I THINK that whatever projects it decides to investigate [housing, job creation, social welfare, small business development, etc.], the new think- tank should examine the advantages and challenges that Institutions play with respect to people-centered development, particularly
1. the private [for-profit] sector
2. the public sector [government] and
3. the private [non-profit] sector.

I think a people-centered approach to Development in Puerto Rico [and elsewhere for that matter] would benefit from examining the Role and influence that Institutions play in these 3 sectors. I think there are UNIQUE advantages and challenges in the 3 sectors.

I have often observed that there are arguments on all sides regarding the efficacy of a particular sector, its viability and contribution to long-term sustainability.
My argument in looking at the advantages that all sectors can and may provide is that each sector is too broad of a category to unfairly accuse as being a Deficient Institution.
My imperfect examples for advantages and challenges for all 3 groups include:

organizational governance, risk management, socio-economic investment, technological innovation, employment, transparency, corruption, etc.

To advocate for people-centered Development in Puerto Rico should not automatically imply the advocacy for promoting a particular Institution.
The advocacy for a people-centered Development in Puerto Rico should imply, assume and start off with PROMOTING DEVELOPMENTALISM ITSELF.

Although I intentionally do not mean to speak about promoting markets in Puerto Rico, my arguments for Development in Puerto Rico may sometimes sound as such, only because a people-centered Development include aspects of this. However, markets are not solely solutions to people problems. They can also be problematic.
At the same token, my criticism of markets is not an admission of anti-market but also a part of a wider dialogue in Developmentalism in Puerto Rico. Besides, some market criticism can actually enhance them.

Besides words on a blog, this discussion is a truce to conflicting Institutions, and a truce to understanding DEVELOPMENTALISM that works within different forms of Institutions.

Can a practical approach to people-centered Develoment blur the lines that distinguish Institutions?

Ideas Nuevas para la isla del encanto

2007-08-24T16:13:00.000-04:00

I do not want to promote a particular political party with this blog.
But I just wanted to at least state that Puerto Rico's NEW political party the PPR, has something on its website that I thought was a great idea and I wanted to post to this blog.
On the party's website, there is a section that explains what the party is trying to promote.
The following is an excerpt from that view.

http://www.porpuertorico.com/quienes_somos_english.html
"...The necessary people to form a government characterized by effective administration and citizen participation, whose objective is creating sustainable economic development and quality of life for all in Puerto Rico..."

It seems as if the Development policy will base itself on the Puerto Rican people.
I would like to know what people in Puerto Rico think about this idea.

Puertorriqueñistas?

2007-08-24T12:46:00.000-04:00

I'm not sure if anybody would agree with me, but I think Puerto Rico's next think-tank should have original ideas, that is, it should not necessarily be something of a philosophical legacy of ideas from the United States. It should be a think-tank that is Puerto Rican-based, Puerto Rican-centered. Of course the next Puerto Rican think-tank will borrow and discuss ideas from the continental US.
But what about Puerto Rican originality? My sense is that for Puerto Rico's next think-tank to be successful and have a positive impact that will guide and improve the public benefit for Puerto Ricans, it should be original in the sense that this think-tank should play a decisive role and cultivate Puerto Rico's next top talent in the field of Puerto Rican Developemnt.

Originality and a people-centered approach for scholars interested in the field of Puerto Rican Development should not imply that the island is closed off from external influences such as European, or Asian Development experiences or just succumbed to the experiences of the United States.
I think that Puerto Ricans as a group should question the US approach to Development, and what makes or made the US an economic hegemon and what it means for Puerto Ricans to enter into an international/global dialogue on people-centered Development.

I think the Discussion of the United States historical role of Puerto Rican Development is a mixed bag. My intention here is NOT to criticize NOR TO congratulate and US involvement, but I think Puerto Ricans need to focus more so on OUR OWN contributions to Puerto Rican Development.
Of course, the United States had an influence, some good and some bad, but to go beyond this, and towards a dialogue of "what Puerto Ricans have done and what Puerto Ricans will be doing in the future" is critical and even pivotal.

My focus and borderline obsession with having Puerto Rico and Puerto Ricans in the center of its own Development is NOT an attack on the US.

It is an inquiry into how Puerto Ricans would re-formulate its Development approach for years to come.

A Community of Exceptions

2007-08-20T14:25:00.000-04:00

Have you ever heard of blind bigotry? That's when somebody meets you and is so impressed by your work ethic or some other value you portray but have a hard time believing you're Puerto Rican.
"Nooooooooo! You are the exception to the rule!"
Some people are so blind to believe that an ethnicity determines the personality of the individual.
"You are the exception to the rule".
I have met so many people who think and/or say these things and do not consider themselves bigoted or racist or what-have-you.
But besides finding the "blind bigot" once in a while, I also find those "exception's to the rule" so much that I now call us "the community of exceptions".

You know that you belong to "the community of exceptions" when you know and identify with who you are and where you came from, AND there are no excuses to your success. You are aware of your accomplishments in your life but know dam well that you are not the only one from your background to be doing what you do.

Because I belong to the Community of Exceptions, I think a new think-tank is an exceptional idea for Puerto Rico's Development.
But I am certainly NOT the only one thinking about ANOTHER think-tank for Puerto Rico.
Why?
If there is one thing that any post-war state/colony/commonwealth has done to improve the education level of its population, it is Puerto Rico. And since Puerto Rico has historically been successful in increasing education levels in its population, it should follow that the culmination of this success should be rooted in the pursuit of development, knowledge, and the useful role that people have played in the Development process.

Is it true that another think-thank in Puerto Rico that is not centered on its people has not materialized because it is too much to handle?

Puerto Ricans, let's NOT be reactive. Let's be proactive.

Does Another Think-Tank Replace Prior Ones?

2007-08-17T20:56:00.000-04:00

We can say "correo electronico" for email, but how do we say blog in Spanish??

Anyways, it is good to have a sense of humor especially when you talk about Puerto Rican politics and development issues.

It is very important to understand the intention behind this blog.
My interest in a public dialogue for Puerto Rico's next think-tank is NOT to replace existing think-tanks on the island.

The idea behind another think-tank is a new approach to Puerto Rico's economic development policies whose development approach is people-centered.

Obviously new think-tanks will differ in opinion to previous ones, but most importantly for this blog, my hope is to create a new way of thinking for development policy in Puerto Rico.

I think some of the major challenges facing development policy and implementation is ideology and a theoretical approach to problem solving.

Even though it is important to have some understanding of different theoretical disciplines, I think it is also important to not be restricted to a particular ideology.
A practical approach to problem solving is at least as important to understanding the complexities and challenges in development issues as understanding a theoretical basis.

The POINT is that Puerto Rico's next think-tank should be different than previous ones.

But let's be honest. If my think-tank were the only one around, it wouldn't be challenged and that's not an ideal environment for a think-tank, right?

Puerto Rico appoints think-tank to solve budget crisis, May 9, 2006

2007-08-16T23:21:00.000-04:00

"...The solution is to create a four member comission, including a noted economist, a member of the supreme court, a former director of the budget office, and an aide to the Senate president, a comission which is to decide which of the solutions by the political parties is best, and that further, the government is to abide by whatever conclusion is drawn by the comittee..."

When Puerto Rico was undergoing its budget crisis, the Governor of Puerto Rico appointed a four member commission.

Who were they and why?

My thoughts are that it is a pretty powerful committee if the committees conclusion is finite for the Governor

http://lacic.fiu.edu/new/lanews_view.cfm?article_id=719

The Birth of a New Party

2007-08-16T23:08:00.001-04:00

the birth of a new partido... puertorriqueños for puerto rico

what does this new party mean?

Is the new party the best thing that ever happened to Puerto Rico OR the worst?

YOU DECIDE

http://www.reuters.com/article/worldNews/idUSN1734404620070523

http://www.porpuertorico.com/index_english.html

Should there be another think tank for Puerto Rico???

2007-08-16T23:01:00.000-04:00

I wanted to discuss why the hell it is or is not important to have another think tank in Puerto Rico for Puerto Rico.

Is it really worth it??

Does another think tank in Puerto Rico really matter?

Who cares?

Is Puerto Rico too small to have a second think tank???

Is one think tank not enough?

If Puerto Rico has PR Community Foundation and CNE, then what is the point of having another think tank?

Does another think tank really matter, or should Puerto Rico's intellectual energy be focused only in what it has produced now?

Your thoughts, ideas and opinions are invited.

The Role of Institutions in Socio-Economic Development in Puerto Rico

2007-08-16T15:12:00.000-04:00

Puerto Rico's next think tank should not just focus on the private sector but also its other institutions. Let's not assume that non-profit organizations [OSFL] are part of the private sector. Before embarking on a more progressive Research Institute, let's look at the complex Roles that Institutions play in Puerto Rican society.

The range of types of private companies, public companies/agencies, and non-profit institutions are so vast, even for an island as small as Puerto Rico.

What about Center for New Economy?

2007-08-16T14:59:00.000-04:00

CNE's Mission is the following:

"The Center for the New Economy (CNE) is a private, non-profit, non-partisan, Puerto Rico corporation dedicated to developing economic development policies that will improve the economic well-being of Puerto Rico and its citizens. The organization is founded on the principles of a strong and progressive free enterprise economy..."

Although I am not against private sector growth in Puerto Rico, I do think that it is important for Puerto Rico's Development to have an Institute that has an approach that is centered on the improvement and advancement of its people.