Why Congress Should Act Now
Staff Briefing by Sergio M. Marxuach for the U.S. House of Representatives Committee on Natural Resources on April 28, 2016.
CNE – Centro Para Una Nueva Economía – Center for a New Economy
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Staff Briefing by Sergio M. Marxuach for the U.S. House of Representatives Committee on Natural Resources on April 28, 2016.
Puerto Rico’s debt structure is inordinately complicated. With no access to a broad debt restructuring mechanism, the chaos that a disorderly default could bring would further erode bondholder value, increase restructuring costs, depress the local economy, and make long-term recovery harder to achieve.
La crisis econĂłmica y fiscal de Puerto Rico tardĂł años en gestarse y no se circunscribe exclusivamente al problema de la deuda pĂşblica. La raĂz del dilema actual se encuentra en un modelo de desarrollo econĂłmico deteriorado y unas instituciones que han impedido el crecimiento. Por lo tanto, cualquier soluciĂłn que adopte el gobierno federal debe reconocer la naturaleza compleja y plural de la crisis actual. A continuaciĂłn esbozamos las recomendaciones principales del Centro para una Nueva EconomĂa en relaciĂłn al Puerto Rico Oversight, Management, and Economic Stabilization Act.
El autor colombiano Juan Gabriel Vásquez escribe en su novela “Las reputaciones” que “las certezas adquiridas en algĂşn momento del pasado podĂan dejar de ser certezas con el tiempo: algo podĂa suceder, un hecho fortuito o voluntario, y de repente toda evidencia quedaba invalidada, lo verdadero dejaba de ser verdadero, lo visto dejaba de haber sido visto, y lo ocurrido de haber ocurrido: perdĂa su lugar en el tiempo y en el espacio; era devorado y pasaba a otro mundo, o a otra dimensiĂłn de nuestro mundo, una dimensiĂłn que no conocĂamos.”
La crisis económica y fiscal de Puerto Rico ha generado una serie de debates sobre como atender una situación socioeconómica que se deteriora rápidamente. En términos generales, existe un consenso de que la solución a los problemas de Puerto Rico contiene por lo menos tres elementos.
The following piece was developed by our colleagues at the Center for Budget and Policy Priorities (CBPP). It was written by Nicholas Johnson, CBPP’s Senior Vice President for State Fiscal Policy, and it was originally published on CBPP’s website on February 9, 2016.
Puerto Rico’s drawn-out economic and fiscal crisis has prompted a series of debates on how to address a rapidly deteriorating socioeconomic situation. Amongst the options being discussed in the federal sphere is the establishment of a fiscal control board for Puerto Rico, similar to the one adopted in Washington DC, that would essentially command all aspects pertaining to government budgeting and spending. We strongly believe that this is not the only way forward.
“We are a country who has just discovered that Santa Claus doesn’t exist, a kid who catches Mom and Dad assembling gifts under the tree on Christmas Eve. It’s a shock.” Iram RamĂrez is Senior International Representative and International Coordinator of Field Services for the Office and Professional Employees International Union (OPEIU /AFL-CIO) in San Juan.