Weekly Review

This week we reintroduce the idea of a fiscal rule for Puerto Rico, as part of our Focus 2020 Series. In addition, we write about the potential adverse effects of a proposal regarding Electronic Export Information. Finally, we take a look at the Electoral College process and its implications for this year’s elections.

In the sixth installment of our Focus 2020 series, we explore the idea of a Universal Basic Income to address economic insecurity and the deficiencies of the social safety net. We also analyze how austerity policies have eroded the Spanish government’s capacity to address the COVID-19 pandemic in that country.

In this installment of our Focus 2020 series, we take a look at how the implementation of a modern industrial policy could help on both fronts: generating endogenous growth and spearheading institutional reforms. We also take a look at Europe and its transformation during pandemic times.

In the fourth installment of our Focus 2020 series, we analyze the land value capture theory as a way to improve municipal performance. We also highlight a piece on the impact of Airbnb on the housing market in Puerto Rico.

In the third week of the Focus 2020 series we want, first, to take a step away from the war of federal funding figures and review lessons of the path towards a fair reconstruction. Second, we present a summary of how much reconstruction funding has been appropriated, obligated, and spent. Finally, we present a set of questions we believe should be answered as the reconstruction process moves forward. In addition, we provide a primer on the mechanics of the Electoral College in the United States.

In the second week of our Focus 2020 series, we try to answer the question: Can we Rebuild Puerto Rico’s State Capacity? Puerto Rico had a high degree of state capacity, but with time those skills, capabilities, and resources eroded due to several reasons. Even as Puerto Rico faces multiple crises today, its government is being called to execute at a high level. This gap between low capacity and high expectations is perhaps the most important political issue we face right now.

There are less than seven weeks left before Election Day, a good time to pose interesting questions about some of the many issues affecting Puerto Rico, such as economic stagnation, the post-Maria reconstruction process, and the roles of the government and the private sector as they relate to economic development. Today we begin our seven-week series, FOCUS 2020, dedicated to those subjects. First in line is a brief historical background that will frame the discussion to follow over the next few weeks.

This week we provide an update on Washington D.C. With only 21 days left on the legislative calendar before elections, we discuss if that is enough time for Congress to strike a deal. We also present an infographic depicting how U.S. consumers spent their stimulus payments.

This week we summarize some aspects of the agreement between PREPA and LUMA that in our opinion raise important concerns. We also explore the prevalence of short-term rentals through digital platforms such as Airbnb and its effect on affect housing affordability in Puerto Rico.

This week’s issue of the Weekly Review is a Special Edition dedicated to providing a little bit of the background of our analysis of the agreement between PREPA and LUMA Energy for the operation and management of PREPA’s transmission and distribution system, which is a key part of the process to transform Puerto Rico’s power system.