The Economics of PROMESA.
- Resource Type
- Article
- Authors
- MELÉNDEZ, EDWIN
- Source
- Centro Journal. Fall2018, Vol. 30 Issue 3, p72-103. 32p.
- Subject
- *ECONOMIC development
*ECONOMIC stimulus
*DISASTER relief
*HURRICANE Maria, 2017
PUERTO Rico Oversight, Management & Economic Stability Act
PUERTO Rico-United States relations
PUERTO Rican economic conditions
- Language
- ISSN
- 1538-6279
In this study I examine whether PROMESA is achieving its main goal of insuring a string of balanced budgets and to restore Puerto Rico's access to credit markets under favorable terms that involve the restructuring of the debt, and whether the implementation of policies consistent with achieving those goals provides a pathway to restoring economic growth. I conclude that the Fiscal Oversight and Management Board's policies of balanced budgets and fiscal austerity are insufficient -- and based on their own ten-year Fiscal Plan projections -- not likely mechanisms for overcoming the economic crisis. Especially after the impact of Hurricane Maria on Puerto Rico's economy and a deepening of the population exodus, achieving the stated goals is untenable in the absence of federal stimulus policies in addition to the projected disaster recovery funding. The economic effects of PROMESA and the austerity policies currently implemented by the Oversight Board on Puerto Rico's long-term economic development are still an open question and critically dependent on further Congressional action. [ABSTRACT FROM AUTHOR]