Indicator Map: Percent of Individuals in P.R. Under Poverty 2000
Indicator Map: Percent of Individuals in P.R. Under Poverty 2000
CNE – Centro Para Una Nueva Economía – Center for a New Economy
Non-profit, economic research and policy development organization
Indicator Map: Percent of Individuals in P.R. Under Poverty 2000
Indicators: Selected P.R. Employment Tables 1991- 2003
Selected P.R. Economic Indicators 1991-2003
On Friday, October 8, 2004, the Center for the New Economy, in partnership with the Puerto Rico Bankers Association, hosted a half-day conference entitled: “Financial Services, Asset-Building and Economic Development: New Public Policy Perspectives for Puerto Rico”. The activity was held at the Banker’s Club, located in the Popular Center Building in Hato Rey.The purpose Read More
A significant segment of the Puerto Rican population, 36%, is unbanked. These households tend to be extremely poor, with an average income of $8,472, and headed by older single unemployed females with a less than average education. Close to 50% of all unbanked households are located in the greater San Juan area. This lack of financial access precludes unbanked households from enjoying benefits associated with asset accumulation which exist in addition to the benefits conferred by the ability to defer consumption and creates a major obstacle for the implementation of asset-based policies to reduce poverty in Puerto Rico.
Puerto Rico has to overhaul its anti-poverty strategy, moving away from programs that create dependency towards programs that promote self- sufficiency. Current government welfare programs are particularly ill-designed for working poor families. Moreover, regressive excise and Social Security taxes are detrimental to low-income families trying to make ends meet. An Earned Income Tax Credit Program is a promising route towards improving the standard of living of Puerto Ricoā€™s low-income working families.
In this policy brief we offer a brief summary of the asset building approach to social policy, review the arguments in favor of implementing asset building policies to reduce poverty, analyze current incentives in the Puerto Rico tax code that favor asset accumulation by the non-poor, and offer some policy recommendations to promote asset accumulation by the poor in Puerto Rico.
Most industry clusters have emerged on their own, even though a growing number of regions are now enacting economic development policies designed to foster industry cluster formation and expansion. Some have advised that this is the best approach for Puerto Rico to take in order to spur community renewal and revitalization. However, as policy makers in Puerto Rico commit to this strategy they must fully assess the benefits and drawbacks of industry clusters, identify the implementation challenges for Puerto Rico, and work towards decreasing the obstacles for the success of the approach.