Puerto Rico's Moment of Truth
Andrew Schrank, Professor of Sociology and International & Public Affairs, and Professor at IE Brown, co-authored an article with a fellow Brown colleague, Michael Piori, that sheds new light on the value of the U.S. Congress approved Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). This Act was designed to address Puerto Rico’s debt crisis by imposing a stay on litigation brought by creditors and establishing a board to oversee the island’s taxation, regulatory, and spending policies. But, according to Schrank and Piori, “debt is not the root cause of Puerto Rico’s problems, and the board… could actually make matters worse by gutting regulations, undercutting spending, and encouraging the flight of the skilled workers who hold the key to the island’s future.” They argue that what what Puerto Rico needs is not PROMESA but a growth strategy.
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