Observations from the "Island of Enchantment"

Fuzzy Numbers

2012-09-27T00:25:00.001-03:00

With Election Day less than 50 days to go, the Department of Labor in Puerto has been accused of fudging the unemployment numbers. Judith Rodriguez, a demographer, says the local agency obtained a much lower unemployment rate by using the population number from the 2000 Census instead of the most recent one conducted in 2010. From 2000-2010, the island's population shrunk by 350,000 inhabitants as an increasing number of Puerto Ricans emigrate to the mainland for better economic opportunities. The island's official unemployment number for 2011 was 15.7%, according to the local labor department. However, the Bureau of Labor Statics puts the actual number at 18.5%. Rodriguez also criticized the government for both manipulating the labor force population number, as well as the number of those looking for work, and estimates the unemployment number for 2012 is about 20.7%. The government claims it was at 13.5% this past August.

The labor force participation rate in Puerto Rico was 39.2% in August, which is 0.7% less than the number published the month before. Unsurprisingly, some people become disillusioned and decide to stop looking for work altogether. Thus, decreasing the size of the labor force as those who are not actively seeking a job are not included in this group. Meanwhile, a recent visit by Irene Mia of the Economist predicts that Alejandro García Padilla (he hails from the pro-status quo party, PPD) will become the next governor of Puerto Rico. This is due to voters' discontent with Gov. Fortuño, and not because of García Padilla's substance as a candidate. Mia says Fortuño's austerity measures were necessary, and will help the island achieve an estimated 1.4% growth next year. Regardless of who wins the elections, Mia asserts that the island will continue to undergo a difficult economic period. Touché.

Drowning in Sorrow

2012-06-27T00:36:00.002-03:00

Crushed Medalla cans, empty Coke cans, and all sorts of garbage were strewn across the island's beaches the day after La Noche de San Juan this past Saturday. This year's aftermath was certainly not an anomaly. Nevertheless, it drew much ire on social networks. "Thanks Puerto Rico, for maintaining our country as one of the worst," wrote M. Lopez on El Nuevo Día's Facebook page. This scathing remark was in response to an article which appeared in the island's largest newspaper, titled "Indiferencia total hacia el ambiente" (translation: "Total Indifference Towards the Environment"). Sadly, it's not just Mother Nature taking a beating though. When people have such complete disregard for one of their island's most treasured assets, it demonstrates a tremendous sense of disillusion and hopelessness.

As in the mainland U.S, this is also an election year for Puerto Rico. Confidence in the local government is practically nonexistent. Not surprisingly, voter turnout is expected to be much lower than previous years. It wouldn't surprise me if voters decide to simply flip a coin right before they head to the voting booth. The candidates from the two leading parties, the pro-statehood (PNP) and pro-status quo (PPD), are deemed to be the same dog but with different collar ("el mismo perro con diferente collar" is a popular saying in Spanish). Mired in corruption, crime, and economic recession, unsurprisingly, most Boricuas' outlook on the future of their island is less than rosy. Neither the pro-independence or any other party has gained any momentum despite the failings of the PNP and PPD.

Over the past year, a number of politicians and government officials from both main parties were forced to leave office because they didn't pay their electric or water (sometimes both) bills. Shockingly, it turns out that one of Gov. Fortuño's nominees to head the Puerto Rico Electric Power Authority had allegedly tampered with his electric meter to reflect a lower reading. The guy was also behind on his electricity bills. No, I'm not joking. Let's not even get started on those involved in bribes and other skulduggeries. Let's focus on a bit of good news though. Last year, the murder rate in Puerto Rico was just over 1,130, making it the most violent in the island's history. This year is expected to be just a bit lower. There were 364 murders reported at the end of last month, this is 97 less than the year before.

There is no good news when it comes to the economy. The island is heading towards a financial cliff of its own. Earlier this month, Standard & Poor's downgraded Puerto Rico's debt rating from stable to negative. Unemployment still stands at over 14%, although many work in the underground economy and don't file any income taxes. The island keeps borrowing to cover its debts, but it will one day max out its credit and will surely ask Washington for a bailout. What Puerto Rico lacks is strong vision and leadership, someone who can stay above the political fray, and work with people of all political colors. Another crucial factor ailing this island is the absence of a strong work ethic and the willingness to hustle. Until then, the partying continues and the garbage will keep piling up.

(Photo Credit: El Nuevo Día/ Ramon Zayas)

Destinations: Cueva Ventana & Cueva del Indio

2012-03-06T20:14:00.008-04:00

For most people traveling to Puerto Rico, the island conjures images of sandy beaches with clear blue water. Unbeknownst to most, however, is the existence of hundreds of caves scattered throughout the island. Perhaps the most popular, and the one I would least recommend, is the Rio de Camuy Cave Park. Although it is certainly interesting to visit and explore, my favorites are Cueva Ventana ("Window Cave") and Cueva del Indio ("Indian Cave") because you get to venture at your own leisurely pace. Unlike Rio de Camuy, there are no mandatory guided tours at either Cueva Ventana nor Cueva del Indio. They're also situated close enough to one another, the former is located in Utuado and the latter in Arecibo, so that you can visit both in one day. We left the metro San Juan area at around 10:30AM and had plenty of time to explore these two caves. Amazingly, we even had lunch at Lago Dos Bocas in between visiting both places.

Our first stop was Cueva Ventana. The trail leading up to this cave is located next to a Texaco gas station (note: they were charging $2 for parking per car and $0.50 per person to use the bathroom) on route 10 towards Utuado. It's an easy hike up to the cave but it is unmarked. When you reach a fork on the trail, hang a left and soon you'll reach the first entrance to the cave on your lefthand side. We took the second entrance, which is lies further up the trail, because it was much easier to navigate. Do bring a flashlight, since it gets dark inside. After walking around in darkness for a few minutes or so, you'll start to see a bit of light filtering in. Shortly thereafter, you'll encounter the opening of the cave, which offers a breathtaking view of the very lush and green Utuado countryside.

Cueva del Indio, on the other hand, is located right on the beach and you'll have to descend a wooden ladder in order to reach it. Once you reach down inside the cave, you'll see petroglyphs which reportedly date back to the days of the Taino Indians. Before you this point though, you'll have to walk and climb along a jagged limestone surface. Needless to say, I would recommend wearing sneakers or walking shoes. There were also quite a few sinkholes, so watch your step! We easily found Cueva del Indio, which is located on Road 681 at km 7.8 in Arecibo, since there was a huge sign posted at the parking lot entrance (note: they also charge $2 to park). Both caves are visited more often by locals than tourists. There is no entrance fee to visit either Cueva Ventana or Cueva del Indio. Both caves are well worth a visit!

The San Blas Half Marathon

2012-02-10T21:06:00.008-04:00

The hill, aka "el ajogillo," loomed frighteningly in front of me as I approached mile 7, the very peak, of Puerto Rico's most iconic running event, the San Blas Half Marathon last Sunday. Geoffrey Mutai, the winner of both the New York and Boston Marathons in 2011, won the race and finished at 1:03:53. The course is known to be quite challenging, since it involves a lot of uphill running. Given its level of difficulty, I always had this notion that San Blas was out of my reach. My sentiments changed last year, when I achieved one of my lifelong dreams of running a marathon. Feeling a bit more confident, but yet still considering myself very much an average runner, I decided to run San Blas for the first time this year, and I'm extremely happy that I did! I really enjoyed it, even though it was my third half-marathon and it was my slowest finish time. The experience was wonderful but grueling. As Mutai said though, San Blas is not a race where you'll obtain your personal record. My official finish time was just over 2 hours and 6 minutes.

I've been consistently running for the past 12 years, but didn't take part in any races until I moved to the island in 2006. It has been a really important part of my life, it helps keep me healthy both mentally and physically, and it's something which I feel extremely fortunate to be able to do. One of the best things I love about living in Puerto Rico is the weather, which permits runners to train throughout the year. Since San Blas takes place in Coamo, heat and humidity are of utmost concern. Needless to say, staying hydrated is extremely important. According to my running buddy, there weren't enough water stations scattered along the course. I did run with a fuel belt. Luckily, I was also warned in advance that were wouldn't be any mile markers or pacers, so I brought my Garmin watch with me.

Simply said, the San Blas Marathon is not well-organized. Those of you who are interested in registering for it, I urge you to do so in advance. I sent the registration form by regular mail back in December, and I did not get any confirmation. You are not given your BIB number and race packet until the day of the event. Some of the runners who registered on the same day were not able to get their chips. Others finished without being given a medal, as they apparently ran out. Something which I would also strongly suggest is to get to Coamo early, before the police closes down many of the roads. Although the race didn't start until almost 5PM, we left San Juan at around 8:30AM. Despite having left so early, we still ran into quite a bit of traffic.

Upon arrival, San Blas will feel much like a street party, where you'll encounter many more drunken people than runners. The mood is extremely festive. It has become an annual tradition for many families who live in the area, and even from other parts of the island, to cheer and support those of us who run. They'll be barbecuing and having a beer, or two, while at it. We were transported to the starting line by school buses. The driver was honking his horn during the entire 10 minute ride, while the spectators waved and shouted at us. San Blas is undoubtedly a race like no other. Sadly, the day ended on a tragic note. Shortly after we left, a shooting occurred during the closing ceremony of the half marathon.

Destination: the Running town of Jájome

2012-01-08T18:48:00.009-04:00

The sun was barely out, but the early morning air was crisp, and fog still hung on top of the mountains as my friend and I began running this narrow, two-lane road up and down the hills of Jájome today. Located in the municipality of Cayey, this mountainous town attracts hordes of runners during the weekends. Given its challenging route, it is officially six miles long and considered to be moderately difficult, people from many different parts of the island head to Jájome to train for upcoming races. Naturally, some also make the trip to simply enjoy the beauty of the mountains of central Puerto Rico.

During our run, between mile 3 and 4, we came across the country home of the governor ("Casilla del Gobernador"). It sits right in front of what looked like a blue-colored house. This turned out to be a police station, coincidence? Along the way, we were able to enjoy some gorgeous views of the mountains, despite having to be on the look out for oncoming cars. Unfortunately, the trail is not strictly for runners but is actually a road that runs through various residential neighborhoods. Luckily, it is not a heavily transited stretch of road. There are also mile markers and road signs clearly indicating that it's an area frequented by runners. Most of the cars, the majority are probably locals, observed the speed limits and were very respectful of runners.

The most challenging part from today's run began at mile 6, where the trail officially ends and we turned around to make our way back. It was all uphill for about a mile. Afterwards, there would be brief periods of leveling off before hitting small hills. Sadly, in Puerto Rico, there aren't many trails designed exclusively for runners or cyclists. Jájome is one of the prettiest places I've gone running on the island. We ran a total of 12 miles today, and it felt absolutely amazing. If you're interested in checking out this popular running area, I suggest an early start, definitely get there before 7AM.

To get to Jájome from the San Juan metro area, head South and take exit 39 (it's right after the famous pork-eating town of Guavate), on the expressway 52. Make a left once you exit the highway, and you'll see a sign which says Jájome with a right arrow. Take this road all the way straight and you'll eventually be making your way up a mountainous road, PR-15, and you'll see mile marker 1 on your lefthand side. It took us about 45 minutes or so to get there. Have a great run!

Turning to Divine Intervention

2011-11-29T11:38:00.013-04:00

Crime and the economy were two of the recurring themes at a special church service I attended on Thanksgiving morning. Most who expressed their gratitude towards God were particularly grateful for having a job, though most still find it difficult to make ends meet. A gentleman stood up and said how grateful he felt for being able to spend Thanksgiving with his family, something which over 1000 people were not able to do. This represents the number of people murdered on the island thus far this year. According to the latest numbers published in El Nuevo Dia, the island's most widely read newspaper, as of November 27th, there have been at least 1,034 murders committed. This alarming statistic makes 2011 the most violent year in the island's history. During the same period last year, there were 889 registered murders.

In a recent survey conducted by El Nuevo Dia, public safety was ranked as the most worrisome issue facing the island. The economy, specifically unemployment, came in second. It was also revealed that nearly all of those surveyed have little or no trust in government institutions. The situation has become so dire that an increasing number of people are turning towards the church for a solution. Most believe the island is undergoing a social crisis, where morals and values have gone out the window. As 85% of Puerto Ricans profess to be Catholics, having the church intervene on societal issues is nothing anomalous. On numerous occasions, such as the student strike at the University of Puerto Rico as well as some labor strikes, the church has been called to intervene and serve as a mediator.

Puerto Rico has one of the highest concentration of churches per square mile in the world. Religion has exerted a huge influence in the island's culture and society, calling into question the existence the separation of church and state. The exact number of those who are actively practicing (i.e those who regularly attend church services) their religion is unknown. However, just from my observations, the majority of those who do go to church belong to a graying population. This phenomenon is also witnessed on the mainland U.S, where there is a notable decrease of church attendance amongst the younger generation. While listening to a brilliant debate on National Public Radio over the question, "Would the World Be a Better Place Without Religion?" I couldn't help but ponder over many of the excellent points which both sides were making.

A descendant of Charles Darwin was arguing in favor of this motion. In his closing statement, he argued that most societies with a highly religious population experience the most violence and have a high level of teenage pregnancies. He used the U.S as an example during the debate, but he could have easily used Puerto Rico as an example as well. On the other hand, a rabbi from the opposing team against this motion, argued that religion gave people faith and hope. Furthermore, a world without religion would be a very dark place. I would surmise that in Puerto Rico, religion has certainly not been a panacea to society's ills, despite the fact that many wear their religion on their sleeves, not to mention their car's bumper. However, it does inspire a sense of hope and community for some. Perhaps the bigger question is, can religion help a society, as a whole, instill a sense of values, morals and ethics, and act upon them? Thus far, unfortunately, the answer has been "no."

A Shining Star

2011-10-20T16:23:00.006-03:00

Earlier this week, U.S Education Secretary Arne Duncan spoke at the Puerto Rico Education Summit regarding the urgent need for the island to improve the quality of its public school system. In his speech, he highlighted some important factors, which includes "embracing innovation, academic rigor, accountability, and effective strategies for accelerating learning for all students." He used The School of San Juan as an example, given that it was one out of hundreds of schools worldwide to be selected into Microsoft's Partner in Learning program. Two of the things that make The San Juan School so unique, besides the fact that it's a bilingual public school, is the existence of a pre-school program and its 7:30AM-5PM schedule.

Studies have shown that children who were enrolled in pre-school programs, compared to those who didn't, have higher incomes, attain a higher education level and are less likely to be involved in criminal activity when they become adults. This is particularly true for children who come from poverty-stricken homes. Nowadays, most local and state governments are spending more money building and maintaining prisons rather than investing in establishing pre-schools. The controversial Head Start program exists in Puerto Rico though.

While much attention has been given to the dilapidated conditions in many public schools throughout the island, the U.S Department of Education announced a $153 million grant to remodel an estimated 63 schools, not enough focus has been given on teacher performance and school curriculum. I live near a public high school, as well as a private one. Those who attend the former are probably in class no more than six hours a day, while those in the latter group less than five hours a day. As for the number of school days, I can say with much confidence, that for most of the island's schoolchildren, it is nowhere near those of top academic performing countries such as Singapore and South Korea.

In discussing how Puerto Rico can improve its public education system, Education Secretary Duncan did not bring up the issue of charter schools. This can largely be attributed to the huge resistance from the teacher's unions, as expected. Governor Fortuño, a strong supporter of public-private partnerships, has also gone craven when the topic of charter schools emerges. As local educators and government officials look for ways to overhaul the island's public school system, perhaps they should emulate The School of San Juan model. Much is at stake when it comes to the continuing laggard performance of schoolchildren, which speaks volumes on the island's future.

Note: The image above was obtained from the official Web site of the City of San Juan.

Occupying Beyond Wall Street

2011-10-10T17:45:00.007-03:00

From the streets of Athens to those of New York, an increasing number of people are voicing their anger and frustration over the economy, the lack of jobs, and a mounting sense of injustice as the rich continue to get an even greater share of wealth. In a recent PBS Newshour story, it was found that the median salary of CEOs have quadrupled over the last four decades while average salaries for most workers remain stagnant. A torrent of fury was unleashed when it was revealed that Miguel Cordero, now the former Executive Director of the Puerto Rico Electric Power Authority (PREPA), took home $400,000 in salary and bonuses last year. This revelation came at a particularly infelicitous moment when most island residents saw their electricity bills, which are already astronomically high, skyrocket even further. PREPA, a government entity, has also been operating at a loss for the past few years.

In Puerto Rico, there never seems to be a governmental agency not subject to corruption. The latest involves the Department of Education, where a number of officials have been charged with bribery and money laundering. Another controversial case involves the Fortuño administration, which has yet to receive final approval on the construction of the gas pipeline but has already assigned millions of dollars to contractors (many of whom are buddies of the Governor). Meanwhile, Medical Card Systems (MCS) has accused the government of falling back on its payments under the Mi Salud health plan, which is the Puerto Rican version of Medicaid. Government officials have emphatically denied such accusations. In the end, thousands of beneficiaries (mostly low income and the elderly) under the MCS plan of Mi Salud were temporarily left without coverage as the finger-pointing ensued.

On Oct. 15th, the island will be joining the Occupy Wall Street movement to express their indignation over a litany of issues ranging from governmental corruption to the demise of societal values. Critics of the Occupy Wall Street protests argue that the demonstrators lack a unified message. Nevertheless, there are indeed commonalities in all these demonstrations whether it be in San Juan or Madrid. Perhaps the most pronounced is the growing chasm between the haves and the have-nots, and the urgent need for the latter (and the shrinking middle class) to collectively raise its voices. Let's hope that those in office are listening and will pay heed to this ever-growing movement.

(Note: the image above was obtained from www.occupypuertorico.org)

A Grim Outlook on Poverty

2011-09-23T15:24:00.007-03:00

The U.S Census Bureau released some staggering numbers underlining the precarious economic situation in which many families in Puerto Rico are facing. According to the latest statistics from 2010, 45% of the island's families are living below the poverty level, defined as those having an annual income of $22,314 or less for a household of four. Back in 2000, the poverty level was at 44.6%. (Note: the island's population experienced a notable decrease over the past ten years). Moreover, the Census also revealed that 36.7% of the island's households are beneficiaries of the Nutrition Assistance Program (PAN). In theory, PAN (colloquially known as "cupones") functions similarly to the mainland's food stamp program. At the root of the problem is the high level of unemployment and the historic low level of labor participation rate, which is estimated at just under 40%. Both factors have pushed an increasing number of families on the precipice of financial disaster.

Particularly heartrending is a report published by the National Council of La Raza (NCLR), which revealed that 56% of the island's children live below the poverty level. To help remedy this egregious problem, the U.S federal government has consistently provided economic assistance to the island. However, despite such social transfer programs, the island remains stuck in a sort of twilight zone. The reasons for this are numerous, ranging from a sclerotic local government to the misuse of public funds. A perfect example of the latter is exemplified by the Special Community Trust Fund, an initiative which begun under the administration of former Governor Sila María Calderón. This $1 billion social program designed to help families living in poverty has sparked a tremendous amount of controversy as the money in the trust fund has mostly dried up. Furthermore, it has far from achieved its intended goal to help the island's poorest communities. The purpose of this fund was to help construct homes in hundreds of communities that are currently living in dilapidated conditions. Many of the island's social problems, a skyrocketing crime rate and an increase in the high school dropout rate, can be attributed to the high level of poverty.

(Photo Credit: The image above was obtained from www.prensacomunitaria.com).

A Force to be Reckoned With

2011-09-10T17:34:00.006-03:00

The U.S Department of Justice (DOJ) lambasted the Puerto Rican Police Department in a report released last Thursday condemning it of civil rights violations, corruption, and other "illegal activities." The findings confirm what many have long known about most police officers on the island. In fact, the American Civil Liberty Union (ACLU), along with other organizations, have long called for the U.S Congress to look into the abuses committed by the island's police force. Instances where the police have been accused of using excessive force have occurred on a countless number of occasions, most notably during the University of Puerto Rico student demonstrations. The report also stated that the PRPD, which is comprised of over 17,000 officers, has consistently failed to investigate domestic violence cases, and many police officers have been found to discriminate island residents of Dominican descent.

As expected, Police Chief Emilio Díaz Colón has come out in defense of his underlings. During a press conference, he stated that "not one single police officer has come to commit civil rights violations." Furthermore, he contends that the police force will continue to do its job with dignity and respect." He did concede that the PRPD will have to implement "some" changes, and will have to provide its officers with the necessary training as suggested in the DOJ's report, which put forth 133 recommendations. Nevertheless, specific details on how the island's police force will be transformed were not provided by the Police Chief. To his credit, the PRPD suffers from a severe shortage of funding, which raises questions as to how it will be reformed.

Meanwhile, Gov. Fortuño has stated that his administration has sent a proposal, back in March, specifying how 110 of the 133 recommendations listed on the DOJ's report will be put into place. As there seems to be no end in sight to the island's crime wave, the homicide rate is 22.5 per 100,000 residents (it is nearly double that of Louisiana's, which has the U.S' highest rate), most have long had little or no confidence in the PRPD's ability to keep the streets safe. By the same token, little trust is bestowed upon other local government agencies, i.e Department of Education, the Department of Family, among others. This latest blow from federal authorities will hopefully bring about some substantive changes in the PRPD, but nobody is holding their breath. According to Gov. Fortuño, it can take as long as 15 years for the reform process to come full circle.

(Photo credit: Ricardo Arduengo/Associated Press)

A Rude Awakening

2011-08-31T16:32:00.003-03:00

Our electricity bill arrived the other day, and my eyes nearly popped out of its sockets when I saw how much we owed. Adding insult to injury, we had received the bill just after having lost power for three days due to Irene. Those of us who live in Puerto Rico have always had to spend much more on our electric bills than our counterparts on the mainland. According to the U.S Energy Information Administration, the average retail price of electricity per kilowatt in the U.S is $0.11 cents back in February of this year. On the island, the average cost per kilowatt for households this past June was $0.28. If Puerto Rico was a state, it would have the second most expensive electric costs. The most expensive is Hawaii, at $0.31.

As a blog reader once pointed out to me, those of us who pay our electric bills (at unsubsidized prices) are subsidizing those who aren't. In fact, some churches, hotels, public housing projects (aka caserios) and municipalities can keep their lights on 24 hours a day, as they practically get electricity for free (and some in fact do). Another reason why electricity is so expensive in Puerto Rico is because many people steal electricity (not to mention water as well). This has led to an estimated $700 million loss between 2009 and 2010. The fact that 70% of the island's energy comes from petroleum exacerbates the problem. The situation has gotten so dire that some restaurants are directly passing the high energy prices on to its customers, listed as the "AEE Adjustment" on their bills.

During the past few weeks, la Autoridad de Energía Eléctrica (the Puerto Rico Power Authority), a government corporation, has come under fire in its billing tactics. The AEE uses a formula which weighs heavily current oil market prices. Jeniffer González, President of the island's House of Representatives, has promised to implement significant changes as to how the AEE charges its customers. High energy costs is a serious impediment to the island's economy, as consumers have less money to spend on other household goods. In addition, for businesses, it increases operating costs to a much more dramatic level. Meanwhile, the Fortuño administration is placing its bets on the Via Verde gas pipeline to help alleviate the island's skyrocketing energy prices.

Waiting for Irene

2011-08-21T18:44:00.005-03:00

In the eve of tropical storm Irene's impending arrival, parking lots at most supermarkets on the island have been jam-packed with cars and shopping carts that have been left behind as soon as stores opened today. In fact, people were able to shop earlier than 11AM (the time when most stores on the island are legally allowed to open on Sundays) since Secretary of State Kenneth McClintock had suspended the Closing Law and ordered a price freeze on items of utmost necessity. The National Hurricane Center initially billed Irene as a tropical storm advisory but has since issued a hurricane warning for Puerto Rico. This evening, the entire island of Vieques is already said to have lost electricity. As the island's power grid and water pipelines are quite antiquated, it doesn't take much rain or wind to provoke a disruption of such basic services.

The lack of confidence on the government's part to confront any sort of natural disaster is precisely the reason why people clear out supermarket shelves, even when Puerto Rico isn't in the storm or hurricane's direct path. This afternoon, at a press conference, Gov. Fortuño announced that 13,000 homes are already without electricity. In addition, 400 homes are without water. Keep in mind that this occurred hours before Irene's arrival. The governor has also announced that all local government agencies and public schools will be closed tomorrow. He also took the same measures several weeks ago, when Emily passed by the island and most of the island emerged unscathed. In fact, some people in the metro San Juan area enjoyed the time off at the beach. Unlike Emily though, which (thankfully) did not wreak much havoc, Puerto Rico is in Irene's direct path.

(Photo credit: The image above was obtained from www.endi.com)

Believing in Miracles

2011-07-29T17:19:00.005-03:00

"It's the miracle of the Caribbean," proclaimed Kenneth McClintock, the Secretary of State of Puerto Rico, when asked about Gov. Fortuño's handling of the economy. Mr. McClintock made this recent statement at the annual meeting of the National Lieutenant Governor's Association, which was held on the island this year. During this gathering, Gov. Fortuño encouraged the lieutenant governors in attendance to follow in his footsteps and adopt austerity measures as a means to solving the budget problems afflicting the majority of the states on the U.S mainland. The Governor boasted that he has reduced the government's payroll by 17% and underscored the fact that no other state had ever laid-off 23,000 public employees. Most were weary (and rightfully so) of Fortuño's approach though. This would include Yvonne Prettner, the Lieutenant Governor of Minnesota, who hails from a state which just had the U.S' longest government shutdown in a decade.

As Congress wrangles over raising the debt ceiling, and the so-called "great recession" (in Puerto Rico it's officially the "great depression") continues, the fact is that there is no silver bullet which can solve all these economic problems. Gov. Fortuño argues that his fiscal plan has now put the Puerto Rico's economy on the right path, but didn't quite address why the island's unemployment rate remains staggeringly high (it varies between 15% to 17%), and why GDP growth remains negative. This truly can't be what McClintock referred to as the "Caribbean miracle."

Perhaps it is somewhat of a "miracle" that things haven't drastically worsened since the Fortuño administration's implementation of the infamous fiscal emergency law (aka "Ley 7"). Many do agree that the public sector needed to be trimmed down, but it has most certainly come at a great cost. Take, for example, goverment services. It has been estimated that in 2009, the Department of Family was unable to investigate over 27,000 child abuse cases. Officals claim that there aren't enough social workers working at the deparment. Simply said, to call Puerto Rico's economic situation a "miracle" is utterly preposterous.

The "D" Word

2011-07-21T23:05:00.003-03:00

While listening to National Public Radio's Planet Money, which recently did a podcast titled "How Much Debt is Too Much?" and analyzed the debt to GDP ratio (the amount of money you owe divided by your annual income) of countries such as Greece, Italy and the U.S, I couldn't help but look up Puerto Rico's figure. As mentioned in the podcast, when a country takes on too much debt, it can stifle economic growth. This would subsequently make the country borrow even more money, and lead to a potentially dire future if no budget changes are implemented in the long run. Turns out that the island's debt to GDP ratio in 2010 was 56.7% (an estimated $14,289 worth of debt per resident in Puerto Rico). In comparison, California, for all its budget problems, the ratio is currently a little over 19% (or roughly $10,009 per resident in the Golden State). As for the U.S, the ratio is almost at 100%. Greece, which has of course made worldwide headlines for its huge economic woes, has a ratio of a whopping 150%.

Historically, according to Harvard economist Ken Rogoff, countries start running into trouble when the debt to GDP ratio goes above 90%. Puerto Rico is certainly not considered to be a Greek tragedy but, if it were a state, the island would have the worst per capita debt in the U.S. In an effort to reign in spending and decrease its debt (as well as improve its standing with credit rating agencies such as Moody's and Standard & Poor's) thousands of government workers have been laid off and certain governmental agencies have even ceased to exist, as they have merged with other departments. In the latest attempt to decrease government debt, and beef-up its coffers, Gov. Fortuño decided to cede the operations of one of the most heavily transited highways on the island to a Goldman Sachs-led consortium. This group had reportedly placed a $1.08 billion bid for this venture. The government is now also hoping to privatize the island's largest airport and is looking for takers. Puerto Rico also has a severly underfunded public pension system, which Moody says is worse than what most states in the U.S mainland are confronting.

On Doing it Better

2011-07-14T21:33:00.004-03:00

"Puerto Rico lo hace mejor," ("Puerto Rico does it better") said Gov. Fortuño in closing his recent press conference announcing the extension of Impulso a la Vivienda, a housing incentive program which the government hopes will lead to the monthly selling of at least 500 new homes. It is a phrase that has become increasingly vacuous. The slogan was initially used by the Puerto Rico Tourism Company to promote the island as a vacation destination, but many boricuas often use it as a tongue-in-cheek response to the government's countless shortcomings. Moreover, it also reflects Puerto Rico's general malaise. The latest scandal includes the island's disastrous Medicaid program, Mi Salud, which threatens to leave thousands of people without medical coverage. Many physicians claim they have not been paid for their services, and some have already refused to treat Mi Salud patients. The current system, as it stands, is plagued with inefficiencies and lack of coordination. Ideas on how to improve Mi Salud have already been circulating, some suggest the government adopt the Medicare model in emiting payments to medical insurance companies.

The impending collapse of Mi Salud (in its current form) came as no surprise to many in the health care industry, as was the forced resignation of the Police Superintendent José Figueroa Sancha. His departure is largely due to the steady increase in crime. The murder rate this year is expected to be much worse than the year before. Meanwhile, the Governor has appointed Emilio Díaz Colón, a former commander of the Puerto Rican National Guard, to lead the U.S' second largest police force (the NYPD is the nation's biggest). Many have already written the Major General off, saying he will not be effective in lowering the island's notorious crime rate. So long as the island's judicial system remains weak and feeble, only 7.5% of the island's murders result in a conviction, crime will remain pervasive. To be sure, much work lies ahead in order to put some substance behind the phrase "Puerto Rico lo hace mejor."

Celebrating Independence

2011-07-06T13:01:00.005-03:00

With much pomp and circumstance, Puerto Rico celebrated America's 235th birthday complete with fireworks and cultural activities in the Condado section of San Juan. For most on the island, as with their counterparts on the mainland, July 4th is a day to grill and to spend at the beach. Although Puerto Rico is a U.S territory, you'd be hard-pressed to find a flying American flag, with the exception of federal buildings and some federally-funded infrastructure projects. The festivities of the Fourth is in many ways a much politicized event, one which is more widely celebrated in the PNP (the pro-statehood party) circle. For most boricuas, the U.S is mostly viewed as a foreign country. The majority see the island as having closer cultural ties to Spain rather than to the U.S. Needless to say, those who support the PIP (the pro-indpendence party) see the island's July 4th celebrations as outlandish.

As many countries in Latin America (the latest is Venezuela) have been commemorating their bicentennial anniversary of independence from Spain, Puerto Rico is the only place in the region which has been excluded. This is obviously nothing shocking, as the island is not considered to be a sovereign country, but a U.S colony. In a BBC Mundo article titled "Puerto Rico: el país sin bicentenario" (translation: "Puerto Rico: the Country Without a Bicentennial"), it explores the complexities of the status issue. No official date has been set, but Gov. Fortuño and his PNP ilk have been pushing for another referendum vote on the island's political status. President Obama has vowed to support the outcome, whether it be statehood, the status-quo ("commonwealth") or independence. If the past is any indication of the future, and obviously this doesn't always hold true, the island remains very much split on this topic.

One of the predominant reasons for this divisiveness is pure economics. Until Puerto Rico can truly obtain a dynamic economy, and survive without receiving a single penny from the U.S treasury, it will continue to observe the declaration of independence of its colonizer. Imagine an adolescent being thrown out of his parents' home without the financial wherewithal to support himself. This year, the official Fourth of July activities were held at the Condado Lagoon, site of the re-inauguration of the Dos Hermanos Bridge, which was partially built with federal funding. I suppose the venue befits the occasion.

A War of Failure

2011-06-25T17:53:00.002-03:00

The global war on drugs has officially been declared a failure by the Global Commission on Drug Policy, and the numbers speak for themselves. From 1998 to 2008, the global consumption of opiates increased by 35%, cocaine by 27% and cannabis by 8.5%. This increased usage of illicit drugs, and the fierce battle to combat drug trafficking, has resulted in a upsurge of violence in many countries that serve as a conduit to the transportation of drugs from South to North America. Mexico, as it shares a border with the U.S, is a country which best exemplifies this sad reality. It has been reported that more than 34,600 have died since Mexican President Felipe Calderó n declared war on drug traffickers four and a half years ago. Puerto Rico, being a U.S territory, has also served as a gateway for drug traffickers who seek the lucrative North American market. Nearly half of the island's homicides are drug-related, according to local law enforcement officials.

Drug trafficking was one of the central themes which Gov. Fortuño brought to the attention of President Obama during the latter's recent visit to the island. Gov. Fortuño emphasized the importance in the cooperation between local and federal authorities in the "war on drugs," which many have long considered as a complete failure. One of these critics includes former U.S President Jimmy Carter, who recently wrote an Op-ed piece in the New York Times. He extolled the Commission's recommendations, one of which urges "to substitute treatment for imprisonment for people who do no harm to others." Moreover, he has called for decriminalizing the possession of less than an ounce of marijuana. Politically, it is highly inconceivable that this would happen in Puerto Rico and on the mainland U.S, as a whole. Then again, when we've already begun to focus more resources on fighting drug traffickers, and at the same time laying off schoolteachers, it's time to forge a new way of thinking.

(Note: The image above was obtained from www.greenchange.org)

Casey & Ana

2011-06-18T13:56:00.006-03:00

"Justicia para Lorenzo," read the back of the t-shirt of a runner who was ahead of me at a recent 10K running event. His statement was a stark reminder that it has been over a year since the death of Lorenzo González, the 8-year-old boy who was mysteriously killed in his home. To date, no arrests have been made. While the mainland U.S has been riveted by the Casey Anthony case, in which she is accused of killing her 2-year-old daughter, Lorenzo's murder has yet to receive much media attention from the mainland at all. Ana Cacho, Lorenzo's mother, has been named the prime suspect by one of the leading prosecutors, who fell short of officially charging her with murder. Cacho has been found lying to law enforcement authorities, she claimed not to have used drugs and engage in sexual intercourse on the night of the murder. This was later found to be untrue. She also allegedly told her two daughters not to cooperate with the police.

The Lorenzo case is replete with unimaginable twists and turns that goes far beyond the typical mystery novel. To commemorate the first anniversary of Lorenzo's death, Ana Cacho wrote a publicly released letter (addressed to her dead son) stating: "...there is no doubt that you gave up your life for us (Cacho and daughters) and I promise that your death will not be in vain." Similar to Casey Anthony, nobody on the island doubts that Ana Cacho was somehow involved with the murder of her child. However, unlike the Anthony case, it is highly unlikely that Ana Cacho will find herself in a courtroom to defend herself for killing her own son. Aside from Puerto Rico's feckless judicial and law enforcement systems, justice can sometimes turn a blind eye to those who can afford to hire a former Secretary of Justice as an "advisor." Since the beginning, Cacho has maintained her innocence and said that the "truth will come out." Thus far, the only truth is that there has been no justice done in the case of Lorenzo.

Photo Credits: Casey Anthony (top)/Orlando Sentinel, Ana Cacho (bottom)/El Nuevo Día

Welcome Mr. President

2011-06-11T14:58:00.006-03:00

Dear President Obama,

Bienvenidos a la isla del encanto! Welcome to the island of enchantment! Since your last visit to Puerto Rico back in 2008, as a presidential hopeful, it seems like much of the world has changed. Unfortunately, one would be remiss to say things have made a turn for the better. This small island which measures at just 100 x 35 miles, as you are aware, has been in a recession way before it hit the mainland U.S. I won't bore you with the statistics, as I'm sure your advisors have briefed you in on this already, but the economic outlook hasn't been looking too bright for quite some time. It is said that your upcoming visit is to focus, aside from garnering more Puerto Rican votes on the mainland, on the island's political status. Do not be fooled by those who insist that this is the most pressing issue on the agenda, because it isn't, despite what is stated in the 2011 Presidential Task Force Report.

The voter participation rate during the previous political status referendums have historically always been lower when compared to gubernatorial elections. Although the last referendum was held more than 10 years ago, back in 1998, the political status of the island vis-a-vis the U.S remains to be a topic that is the least of concern for most who live on the island. The reason why this is such a divisive issue is because the island itself is so ambivalent about it. In the end, to use a phrase coined by another prominent Democrat during his presidential campaign, "It's the economy, stupid." Just as in the mainland, the lack of jobs and the sluggish economy is what worries most people on the island as well.

Puerto Rico is a place with tremendous economic potential, it is considered a gateway between the U.S and Latin America, but the government must help in laying a firm foundation so as to build a brighter future. One of my father's perennial complaints, as an entrepreneur, was the egregious bureaucracy of the Puerto Rican government which has stifled commerce, and in general, the economy. If you are sincere in wanting to help the island overcome its economic stagnation, don't just simply shove money into programs such as the Nutrition Assistance for Puerto Rico (aka "PAN" or "cupones"). Instead, help improve the island's dilapidated public education system, promote scientific research and development, and make the island a better place to do business in order to create a more vibrant economy. Focus on areas in which you'll get the greatest bang for your taxpayer buck, and get the highest possible return on investment. As you well know, small businesses and startups are the two key engines in creating jobs. Some of the island's economic troubles are quite similar to those we see happening in many states on the mainland, i.e the laying off of thousands of public employees, an underfunded public pension system and increasing budget woes, just to name a few.

As you'll be hobnobbing with a select group of benefactors, some of whom can afford to fork out over $35,000 for the mere opportunity to see you, please be aware that the majority of us who live on the island have quite a long list of concerns which may be quite different from theirs. I understand that you are a very busy man, and that you face enough problems on the mainland as it is. Despite what many critics have said, it has been 50 years since a sitting U.S President has visited the island. Your visit is quite symbolic, and quite indicative of the growing importance of the Latino vote. I thank you for taking the time for coming to la isla del encanto.

(Note: the image above was obtained from www.endi.com)

Focus on the Jobs

2011-06-04T13:45:00.005-03:00

To the casual observer, it might seem mind-boggling to see a 14 yr old drive a Ford 350 van to pick up merchandise for his father's convenience store (colmados, as they're called in Puerto Rico). This adolescent, who needless to say is too young to possess a driver's license, helps out at his family business because they're short-staffed. In Puerto Rico, where the unemployment rate is now very close to 17%, you would assume that finding hired help should be cakewalk. This is clearly not the case, and there are two reasons for this disconnect. One, most businesses on the island simply aren't hiring. Second, for most minimum wage jobs, it's actually not easy to find and retain employees.

The labor participation rate is at an estimated 40.6%, meaning that less than half of the people on the island work, and yet this does not seem to be a worrisome issue for government officials. Perhaps the reason why nobody has proclaimed a state of emergency in the lack of jobs, is that the last time the labor participation rate hit above 50% was back in 1950. One way in which countries around the world have helped increase employment and create jobs in the long-run is by attracting foreign investment, as well as investing in its own education system. The Puerto Rican government has dropped the ball in both regards. This is perfectly exemplified in the case of E l Fideicomiso de Ciencia y Tecnología (the Puerto Rico Science, Technology and Research Trust), a quasi-government entity whose objective is to foment a knowledge-based economy on the island.

The greatest obstacle for the PRSTRT has been, ironically, the government itself. As it turns out, the public officials who sit on the board of directors have not been attending meetings and fulfilling their fiduciary roles. This has resulted in the stalling of projects, many of which are expected to create jobs in the long-run and lead to the creation of start-up companies. Politics has often served as a hindrance to economic growth. Another reason why there aren't enough jobs created is due to the government's failure to reform the island's sclerotic labor laws. Businesses often find it very difficult to fire employees without paying an "indemnity" ("mesada" as it is called on the island). This results in much greater hesitation, for the employer, to hire full-time employees. In addition, as the economic outlook for the island is less than optimistic, companies are even more unlikely to invest.

The unemployment situation on the island warrants much greater focus on the government's part. Governor Fortuño, while campaigning for governor back in 2008, once pledged to "generate" 100,000 jobs. The numbers are quite fuzzy, but the fact of the matter is that the unemployment rate has crept up since he took office. Just a few weeks ago, Pfizer announced it will eliminate 1500 jobs in Puerto Rico. According to the Puerto Rico Labor Department, from March 2010 to March 2011, 37,000 jobs have been lost on the island. Based on the current employment statistics, the amount of jobs created has obviously not exceeded the amount that have been eliminated. It is said that of the estimated 1.057 million who work on the island, each is supporting nearly 4 people. The numbers clearly speak for themselves, this is an economic situation which is utterly unsustainable. Little wonder why President Obama's upcoming June 14th visit is said to focus primarily on the island's economy.

Stopping the Violence

2011-05-28T15:21:00.010-03:00

As we reach the midway point of 2011, if the homicide rate in Puerto Rico continues at its current trajectory, this will yet again prove to be another violent year. There have been a total of 419 official murders reported just two weeks ago. This number surpasses, during the same period, 2011's statistics by 88 murders. Remarkably, last year was the second most violent in the island's history. Police Superintendent José Figueroa Sancha has attributed this dramatic increase to the law enforcement community's combat against drug traffickers. Nevertheless, the police chief insists that there has been a decrease in burglaries, robberies and sexual assault cases. For most people on the island though, Figueroa Sancha seems to have lost touch with reality. As if to add insult to injury, the Police Department has been mired in yet another controversy. They have reportedly been involved in fudging crime statistics, so as to make "the numbers look pretty," as one police officer puts it.

Meanwhile, in the mainland U.S, criminologists are baffled by the seemingly pretty numbers as violent crimes have hit a 40 year record-low. Crime has been cited as one of the reasons in which Puerto Ricans have been leaving the island for the mainland in droves, especially in the past decade or so. Most people are simply fed up with this wave of violence, which has even led an increasing number of people to apply for gun permits. Most recently, a hair stylist was hailed for being "daring" when she fired her gun during a robbery attempt at her beauty salon.

Violence is, of course, not solely restricted to guns and drug traffickers. Domestic violence is also quite rampant on the island. According to some mental health experts and criminologists in Puerto Rico, a large percentage of the island's population suffers from depression, as well as other psychological illnesses. This in turn has led to an ever-growing litany of societal problems, one of which is violence. In response to this situation, a group of concerned citizens have organized a march ("Marcha Alto a La Violencia") tomorrow to speak out and raise awareness over this issue which just seems to be exacerbating.

Note: The image above was obtained from the Facebook page of "Marcha Alto a La Violencia."

Destination: Pet Park, Condado

2011-05-21T13:57:00.007-03:00

Located on a quiet street in one of San Juan's most high-priced real estate areas is Puerto Rico's one and only public dog park. Opened back in 2008, the pet park in Condado has drawn people from all over the San Juan metro area who are aware that dogs (just like humans) need to exercise and interact with one another. Back in March, when I was in New York for a visit, I noticed quite a few public parks with a fenced-off area for dogs. I lamented to a friend, also a dog-owner, the unfortunate fact that there is only one dog park in Puerto Rico. This certainly isn't something earth-shattering, as public parks are few and far between on the island.

Studies have shown that the prevalence of city parks can help improve the health of its local residents. I would venture that the same could be said for dogs. In Puerto Rico, the lack of open space for both humans and canines indicates how public health issues have been shoved to the back burner. As I've mentioned in a previous blog entry, the mistreatment of animals is notorious on the island. In addressing this issue, San Juan Mayor Jorge Santini opened El Centro de Control y Adopción de Animales (The Center for the Control and Adoption of Animals), which offers affordable vaccination and sterilization services. Hats off to Santini as well for opening the island's only public dog park, which is open everyday (except for holidays) from 7AM to 7PM. It's a wonderful place for dogs to roam and play off-leash. The park has a water fountain, benches, an agility course and even plastic bags for picking up your dog's poop. The park is very clean and very well maintained. All canines are welcome, as long as they are at least four months old and completely vaccinated.

Thou Shall Not Covet

2011-05-14T13:40:00.011-03:00

In an attempt to beef up its coffers, and strike a blow at tax evaders, the Puerto Rican government introduced the IVU Loto (its acronym stands for impuesto sobre las ventas y uso). The premise behind this idea is to have consumers demand retailers for a receipt, and money would be the natural incentive. The IVU tax was introduced back in 2007, and is levied on all purchases (except for essentials such as bread, water and milk) at 6% islandwide. Ever since its introduction, the amount received by the Department of Treasury (el Departamento de Hacienda) has been much less than what the government had projected. Tax evasion is the culprit, according to Treasury officials, as only half of the island's businesses are said to remit IVU tax payments . According to the government, the solution to this conundrum is to implement a lottery receipt system. Perhaps the folks over at Treasury were inspired by some Latin American countries, and some as far-flung as China, that have successfully implemented their version of an IVU Loto. In China, tax revenues from businesses have reportedly seen a significant increase.

On the island, the IVU Loto has already gotten off to a rocky start. Although it was supposed to roll-out in the beginning of this year, very few businesses have the IVU Loto system installed in their cash registers. One of the reasons for this long delay is due to the legal battle involving one of the contractors hired to implement the IVU Loto system. As I dig out a bunch of receipts from wallet, including from the major chains such as Walgreens, Bed, Bath & Beyond, among others, none have the 10 digit IVU Loto number. It wasn't until last week, when I finally got a receipt from a restaurant, that I was reminded of my shot at winning some hard cash! Come to think of it, if I hadn't paid with a credit card, I probably wouldn't have gotten a receipt. In any case, I didn't get lucky this time.

Aside from the government's failure, thus far, to fully implement the IVU Loto system, religious leaders have also cried foul. Their argument is that Tenth Commandment clearly states "thou shalt not covet." Participating in the IVU Loto is considered to be a form gambling, which is against their religion. Other critics contend that the IVU Loto will not incentivize underground businesses to emerge from the shadows. The root of the problem is the inefficiency and lack of trust in the local Puerto Rican government. In the meantime, at least some of us sinners will have a shot at winning $1000 every week. That is, of course, if we should actually get a receipt with the IVU Loto number on it. At the moment though, it doesn't seem as though people noticed or care much for it, as some of the IVU Loto winners haven't even bothered to claim their prize money.

To check and see if you have a winning IVU number, click here, and be sure to select "Ganadores."

(Note: The IVU Loto logo was obtained from the website of el Departamento de Hacienda)

Geronimo's Death

2011-05-07T14:11:00.005-03:00

When I found out about the death of Osama Bin Laden (whose code name was "Geronimo"), I was shocked and memories of 9/11 flooded my mind. On that fateful day, I walked into work and saw a bunch of people running towards the television screens. A colleague told me that one of the Twin Towers had been hit. Perhaps due to my naivete, I said, "Geez, that's awful, how can that happen?" Another colleague then said, "Well, maybe it wasn't an accident, it could very well be an attack." My eyes widened, and I thought, this man could be right but I sure hope that he's wrong. A few minutes later, the second plane struck and we just all stared, horrified at what we were seeing on the television screens. Some of us were in tears.

In the midst of this mayhem, I was frantically calling one of my closest friends, who worked at the World Trade Center. Millions of people were calling one another that day, and the phone lines were busy. Although I worked in Midtown Manhattan, I lived downtown (20 minutes walking distance from Ground Zero), and my family and friends from all over the world were trying to get a hold of me. Luckily, e-mail (thank goodness for the Internet!) was still working and I was able to send word out that I was fine. Eventually, I was able to reach my friend, who left her house late that morning and was spared from the carnage. Some of her colleagues weren't so lucky though, her company lost over a dozen people.

It's hard to believe that almost 10 years have passed since the worst terrorist attack ever to hit U.S, where over 3,000 people died. For some, Bin Laden's death brings a sense of peace, justice and closure. I was saddened though, when I saw people on the news cheering and chanting "USA, USA," and proudly holding up signs that read "Obama 1, Osama 0." The so-called "war on terrorism" is not a zero-sum game. As in all wars, nobody is truly victorious. The wars in Afghanistan and Iraq have already claimed the lives of more than 7,000 coalition troops from over 20 countries. This number presumably includes the death of 109 soldiers, as of May 3rd, from Puerto Rico or of Puerto Rican descent. Let's hope that Bin Laden's death will eventually lead to the demise of Al Qaeda. Most important of all, let's bring our troops home.

(The image above was obtained from The Daily Mail).

Uncle Sam's Catch-22

2011-04-26T18:09:00.004-03:00

As perplexing as this may sound, keep in mind that Puerto Rico's unemployment rate is over 16%, the local government is contemplating a guest-worker program to bring in people from nearby Haiti and the Dominican Republican to harvest coffee. Picking coffee beans isn't rocket science, but it seems like very few people want to roll up their sleeves and labor under the sun. Many attribute this kind of mentality to the culture in which Uncle Sam has helped create, one in which people would rather live on government assistance (on the island, it's colloquially known as "cupones") than earn a paycheck. An estimated six out of ten families are beneficiaries of the Nutrition Assistance for Puerto Rico (PAN) program, and less than half of the people on the island work. Officially, the labor participation rate hovers at around 40%. However, for those of you who live on the island, you're probably aware of the existence of a sizeable underground economy.

Nevertheless, in some of the most impoverished towns on the island, such as Comerío, the unemployment rate is at a whopping 22.8% and 60% of the residents are recipients of PAN. While some criticize such entitlement programs in creating more harm than good, others believe it has helped improved the lives of many low-income families. According to the 2006 U.S Census, 45.6% of the island's population lived below the poverty level. This statistic is quite mind-boggling, especially while taking a stroll at Plaza Las Américas and seeing all those luxury cars on the street.

While the 2011 federal budget calls for cuts in some programs designed to help the neediest, it will not affect PAN, which Puerto Rico expects to receive $2 billion this year. The Times Magazine columnist Fareed Zakaria, who is also host of CNN's Global Public Square, was invited to the island by the Center for the New Economy to talk about his perspective on the island's economy. During his speech, he spoke for Puerto Rico's desperate need to abandon the "politics of dependence" on federal funds. The island must begin the process of transformation and focus on creating wealth, and stop looking towards the U.S federal government as a "money machine," said Zakaria. Furthermore, Puerto Ricans must not wait for politicians to begin this transformation. Indeed, nobody could have said it better.