Month: September 2019

One could ask the question: Which of the three crises to hit Puerto Rico in the last several years was the most devastating? But why bother?

The fiscal collapse from the intentional self-destructing accumulation of debt; the failure to maintain the critical infrastructure of the island and prepare for the inevitable natural disasters; and the exposed depravity of the governing elite in pillaging the Commonwealth, all combined to cause our situation to devolve into the insurmountable catastrophe we face today. Corruption, greed, incompetence, and lack of love and concern for our islands, have worked in concert to destroy our hopes for any relief in the near term and rendered our expectations for our children’s futures bleak.

The situation is horrible. We could focus on hand wringing, revenge, and blame tossing, but that’s not going to solve the problems, and it’s not going to restore us to glory. We must instead encourage the courts to investigate and prosecute the bad actors, vote (or protest) out the politicians who are responsible for the mess, but most importantly, find or create solutions.

For decades, business owners and knowledgeable outside contractors have not trusted the government. Efforts to revive our economy have failed time after time due to the lack of certainty the various administrations have fostered. Internally generated initiatives simultaneously have lacked vision, competency, and integrity, which has led to one failure to launch after another. The same-old unimaginative tactics of tax giveaways are temporary and ubiquitous in the global market, and the results are both ineffective and unsustainable in the medium to long term.

Given the abject failure of every recent initiative for economic development attempting to utilize the obsolete methods of a discredited past, it’s time to try something truly innovating. Attempting the same solutions over and over without ever achieving a difference is considered insane, so why not try something radically different – it might turn out to be rational. That’s where innovation actually occurs. How about if we create a couple of small laboratories of economic and political experimentation? Do we really have anything to lose at this point? While there is no silver bullet that will solve all the problems at once, multiple smaller initiatives may add up and can provide synergy for significant growth.

Initiative 1: The Decolonization of Vieques, Roosevelt Roads (RR), & Possibly Culebra

Economic development is currently stillborn in PR for several reasons:

• Demonstrated PR Government instability, incompetency, corruption, and lack of vision;
• Commonwealth bankruptcy and the FOMB, or oversight board, have almost totally eliminated promised reconstruction funding, significant investment options in infrastructure, and government & NGO sponsored initiatives;
• US colonial policies and laws, for which we have NO voting rights, from the Jones Act to the orders issued by every one of the myriad federal agencies constituting hundreds of thousands of pages;
• Shrinking local markets due to lower birth rates and emigration;
• Poor existing infrastructure for both living and working – schools, healthcare, security, utilities, transportation, etc.; and
• Fear and reluctance of quality investors and developers to enter the perceived swamp.

How can any nation or state overcome this order of magnitude of degeneration in a period of 1, 5, or even 10 years? IT CAN’T and IT WON’T! So, what is something that we CAN do to change the game?

We can eject an escape pod, launch a lifeboat, sever the umbilical cord, and set free a small area to decolonize and form an independent country.

Whoa! Before naysaying and closing our minds, remember, we are brainstorming and trying to think “out of the box”, as they tritely say. So, let’s not kill the idea until we investigate it more fully and determine its worthiness.

Rather than discuss the process, procedures, and politics that will be required, let’s postpone these salient issues to first determine whether or not this concept is something that could make the positive difference we seek. Just what exactly are we talking about?

Through the decolonization of Vieques (and possibly Culebra, if so desired) combined with the entire former Navy base at Roosevelt Roads, a new country can be created that shares limited borders, culture, language, history, and mutual economic dependence with Puerto Rico. As such, decolonization of Vieques can serve as a lifeline and a catalyst to the entire economically depressed eastern region of PR.

As a sovereign nation that includes the annexation of the former base, Vieques can effectively develop Roosevelt Roads in ways impossible for Puerto Rico.  There are many reasons why this would be beneficial for PR:

1. Under the control of any Puerto Rican entity, savvy and ethical developers are NOT soon going to entrust their fortunes to the chaotic Commonwealth. Likewise, municipalities are frozen out of the mix because they are subordinate to the Central Government.
2. The recent news about environmental issues at RR is physically and politically toxic.
3. PR has no money of its own, no way to acquire more, and no rational plan for the former base or the rest of the island, but Vieques is “connected”.
4. Without the many unneeded controls and constraints of the EPA, OSHA, IRS, DEA, TSA, HSA, FDA, FAA, FCC, FBI, CIA, HUD, ADA, SEC, DOT, and the hundreds of other regulating bureaucratic organizations, Vieques would have an enormous competitive advantage. While these agencies offer many excellent rules, regulations, and guidelines, very few are appropriate or necessary for a small country. It is the intent to make a new government function as a partner with quality businesses, as opposed to as an adversary.
5. In addition to the benefits for residents of an independent Vieques, there would be many jobs and opportunities for the residents of the Ceiba, Naguabo, and Fajardo areas. Furthermore, existing US businesses planning to leave PR could relocate to the Port of Vieques (RR) and retain their workers and gain tax advantages. Most of the business development activities envisioned for Vieques would take place on the former base. The majority of the employees would necessarily live in the surrounding municipalities – shopping and paying taxes in PR. Additional industry, commerce, and population growth would return to Ceiba, a close and valued business partner on the PR side of the border.
6. PR would receive the added windfall of indirect access to the small, but significant, Port of Vieques allowing export/import via international shippers, thus obviating the restrictions of the Jones Act. PR savings from by-passing the existing oppressive colonial arrangement could amount to anywhere from $100,000,000 to $1,000,000,000 per year. [Note: The politics of eliminating the Jones Act limitations for Puerto Rico are a bit like the third rail – untouchable. However, through decolonization, the issue can be avoided. The much larger Port of San Juan would remain the primary port on the island.]
7. The airport could also focus on international air cargo that SJU cannot.
8. Vieques would become a contemporary demonstration project, utilizing the successful process of decolonization established in the 1980’s with the Marshall Islands and the Federated States of Micronesia, through a Compact of Free Association that other US territories (or portions thereof) could ultimately follow and improve upon.
9. As an independent country, Vieques (with the annexation of Roosevelt Roads) can bring a fresh approach, a clean balance sheet, and an opportunity to build a small-scale economic engine geographically attached to Puerto Rico.

New development often faces a chicken-and-egg dilemma: no credibility yields no investment, while no investment results in no credibility.  So how does Vieques solve the financing issue without new funding from the US?

The answer is “10:50:350”: similar to those arrangements agreed to in the previous “Compacts”.

10:       A ten to fifteen-year US supported transition into an independent, decolonized nation.

50:       An annual $50,000,000 transfer payment to Vieques for 10 years; The US historically funds a net of $20 billion to Puerto Rico every year, which averages out to about $5,700 per person.  With 9,200 Vieques residents, that’s the equivalent of $50M.  The payment would go directly to Vieques, not San Juan.

350:     The cleanup of the east end bombing range is slated to require at least 10 more years, cost more than another $350M, and leave 15% of the island uninhabitable.  The US Navy has approved $250M funding already for Vieques.

$50M per year would allow Vieques sufficient funds to operate the island while improving education, utilities, social services, and other infrastructure.  Redirecting the $350M would give independence credibility (to grantors and investors) and the necessary kick start for economic development at Roosevelt Roads and in Vieques.

What benefits would the US receive?

• Credibility – The US would reaffirm its claimed position that PR is truly not an oppressed colony by allowing a part of the “empire” that requests its sovereignty to negotiate independence. Puerto Rico is NOT currently in a viable position to function independently even if its citizens wanted it, which they don’t at this point.  To reduce the international criticism while addressing the very long-term problems of the Commonwealth, the US should assist Vieques in becoming an independent nation – a demonstration project – and diffuse the criticism.  On the other hand, obstructing or denying such a request by Vieques – no matter what the excuses – could dramatically compound the public relations disaster.
• Reduction of an annoyance – Vieques has been a very vocal critic of past local US military activities and the current related cleanup. The antagonism, emotional conflict, and distraction for all could be eliminated with a cash settlement for Vieques and a release from future liability for the US – Vieques would choose to become responsible for the cleanup.  The 2% or so of the island directly affected by the possibilities of unexploded ordinance has been off-limits for decades and can continue to be until Vieques matures financially and can afford to perform incremental cleanup.
• Cost – As it becomes more obvious that the US is going to be required to financially assist PR for some time, economic development (and only economic development) reduces the magnitude of the problem. Don’t give a bailout – provide the opportunity to earn it! The FOMB should see a huge benefit from the optics of letting the secession deal ride without demanding much – after all, it’s their lifeboat, too.
• An ally – politically and economically.

While we may not have the in-house experience of governing a nation of 10,000 or so citizens at this point, we know to hire private consultants and contractors to help and guide us. We have developed sufficient understanding to begin the process, hire consultants to train our people, and up to ten years to refine it.

This is a classic win, win, win scenario. True, it is certainly complex. Once a provisional decision has been made by Congress, a transition would be implemented that could last a decade or more.  During this phase, temporary rules would be enacted that would allow Vieques to enter into the required agreements with commercial entities and begin the economic development. Working together synergistically with PR to attract various businesses to this unique arrangement, Vieques could help further the goals and growth of our neighbors of eastern Puerto Rico.

Financially, this can bring long term gain to PR, and it can definitely be a source of excitement leading to new regional investment. Decolonization of Vieques is a huge step that doesn’t solve all of the problems faced by the US, PR, or Vieques, but it introduces a paradigm shift in the economic activity of the region that can generate growth.

While the “loss” of Vieques and Roosevelt Roads might seem unthinkable and offend the egos of some, it can better be thought of as a clever tactical sacrifice to improve the economy (and the economic future) of Puerto Rico in a manner impossible without the decolonization of Vieques. In order to be possible, Viequenses, Culebrenses (if desired), and the governments of Puerto Rico and the US must agree, and that is no small task. Who knows? If all goes well, maybe through incremental annexation, much or all of Puerto Rico may decide to join the new country. If it should fail, hey, it’s just us crazies in Vieques, no loss to the main island!

Initiative 2: What Do You Have In Mind?

Please send your ideas, comments, and questions to: discussion@vieques-libre.com

 

Major philosophical chasms occur in societies during periods of significant transition.  Modernization of unsophisticated regions brings forth resistance from those who feel their way of life is under siege. Fear of losing normalcy, the familiarity with the everyday and with every person, brings people into a defensive mode to fight the forces that would alter the status quo.  This creates a conundrum: everyone wants improvement, but few want change.

Making things better is relative:  that which elevates one may actually lower another. A faster tool may make one person twice as productive but render the second person unemployed. A better education may lead to young people leaving home to seek their fortunes in larger markets resulting in parents missing their children.  The defenders of anti-change movements will eventually erect a shield to protect the destruction of their “culture”.

As most agree, many aspects of culture are worthy of esteem and should be preserved.  On the other hand, just because a trait is historical and common does make it a good thing.  Culture is not in and of itself good or bad; it is a noun that can accept adjectives like wonderful and horrible.  When we first think of culture, we include charming customs, art, music, dance, shared history and beliefs, social norms, etc. But, look more closely at what some “cultures” actually have practiced throughout history:

• Cannibalism
• Piracy
• Genital mutilation
• Slavery
• Foot binding
• And other terrible things

Less extreme, but very detrimental to the progress and prosperity of any society:

• Criminal and antisocial behavior
• Corruption and dishonesty
• Thievery
• Distrust of everyone
• Vigilante justice

Some favorable traits have flip sides with overwhelming negatives, such as:

• Kind and gentle societies are often passive, which can lead to outside and internal control and abuse
• Societies that are tolerant of people’s differences and lifestyles might also be tolerant of criminal and antisocial behavior

So, if one wishes to improve the quality of life within the community, such as education, healthcare, infrastructure, transportation, communications, governance, etc., how does one gain local support? Many would say they want the improvement but don’t change anything – clearly an impossible contradiction.  Perhaps a good beginning would be to identify the elements of the culture that are really important to the population.  In this way, one would have finite lists that can be called positive and negative culture.  General terms like “culture” could be set aside in favor of working with the specifics (maximizing the positive and minimizing the negative) to shape proposed changes.

Once the community is generally united in their recognition of the real situation, an overall vision of the desired results needs to be formulated, and the specific goals must be established. These goals must then inform an executable improvement plan.  Because there are so many areas being addressed, the whole endeavor may seem overwhelming.

“How do you eat an elephant? One bite at a time.”

Any acceptable plan will include multiple and separate components and/or phases.

The situation in Vieques is somewhere in between the modern and sophisticated worlds of the West and the third world.  Many do not have a global view, or at least not accurate ones.  Most are not experienced in contemporary business practices or technology. A sizable number do not work and are dependent on government subsistence. The average educational level is very low. The question, therefore, is: “How does a population design their future while few in the community even know or understand what the present state of the art is in the real world?” Or to put it in other terms:  “How do I write an app for Twitter when I have neither an account nor a clue what Twitter does?”  The answer is: “With a lot of help from our friends and trusted consultants.”

During and after the crisis caused by Maria, we saw community leaders and volunteers emerge and come forward in response to the needs of our fellow neighbors. We discovered strength, talent, inventiveness, and a desire to fix what was broken and make things better for all of us in Vieques. We united in a mission to save the island. Most residents pulled together as a team regardless of their allegiances to any political party. Through these efforts we did more than survive: we discovered what could be done through our collective, focused action. We saw the huge inadequacies in our pre-Maria government services. We were knocked over by the revelations of Rickyleaks and realized beyond any doubt that our emperors had no clothes.

The usual practices of the Blue and Red have been responsible for much of the retardation of our island’s growth and opportunities for success. The constant flip-flop of power between the parties was an endless recycling of the gravy train for high level political elites, but it was an absolute disaster for the people of Puerto Rico. Traditionally, the self-serving patronage practices in Vieques have caused destructive partisan hiring practices and shifted the focus from “What’s good for Vieques?” to “What’s good for my party and my reelection?” Any long-term solution to the many problems of our island requires a unified renovation of our existing formal political structure in Vieques.

We have all become quite cynical when viewing local politics, so it is hard to have a significant discussion on how to change our system to cater to the needs of the island. We know we are the tail of the dog and that we will not be able to change the party or voting process. On the other hand, we might be able to change the outcomes while utilizing the existing legal procedures. What if we shifted the orientation of our own electorate and created support for candidates from any party who have platforms that address the critical needs of our island.

We should form a “sub-party”, call it the Sato Group (or something clever), whose role it is to establish a platform that anyone can endorse and pledge to honor. The Satos will then aid and assist the most credible candidate(s) in their efforts to get elected regardless of party affiliations.

The Sato Platform

The platform should be based strictly upon elements that are important to the growth, health, well-being, and future of Vieques. Not everyone will have the same vision, nor will all agree on the specifics of issues, but we must, as a group, reach consensus on the basics.  Have the Blue and the Red ever really stood for the improvement of Vieques? Components of the platform might include:

1. Communications and information distribution from the municipio should become a daily routine and receive a very high priority to keep citizens aware of opportunities and all government activities
2. Transparency in all government activities spending money, awarding contracts, planning, etc. – everything but real time personnel and legal procedures/negotiations.
3. Hiring should be based upon integrity, education, experience, skills, performance, and appropriateness of the job fit – not on personal or political affiliations. Our government team is only half as strong as it could and should be when we don’t make use of the good people of both parties: the best people we have available!
4. Municipal positions should be created and maintained only for the most necessary and critical functions – not as welfare or patronage
5. Land titles to all municipal lands should be solidified through proper surveys and legal procedures to encourage the sale of applicable properties: those justly in the possession of the inhabitants or vacant/derelict/abandoned properties for community development
6. Random Central Government real estate parcels and buildings not being used for PR purposes should be deeded to Vieques
7. Through increased autonomy, the municipality should take over all property tax functions – from record keeping, to appraisal, to tax collection – CRIM in Vieques should be totally eliminated
8. Grant writing should become a very high priority to secure funding for the many needs of the island – consultants should be contracted if necessary
9. The ferry service to and from Ceiba should be owned by the municipality as a government entity or a cooperative, and the operation should be contracted out BUT controlled locally – subsidies would be negotiated with PR and the Federal Transportation Administration
10. Electrical power generation through mostly solar and distribution through micro-grids should be owned by the municipality as a government entity or a cooperative, BUT the operation should be contracted out and controlled locally
11. For all but extreme cases, criminal and civil violations or complaints should be arraigned and tried in Vieques – even if it must be accomplished by video conferencing – and a short-term jail should be provided and equipped to obviate the need for transport
12. Our local government should become involved in liaison and lobbying for any and all-important Central Government and institutions providing services to Vieques citizens (such as healthcare, education, social services, and economic development)
13. Replacement of the inventory tax for Vieques businesses
14. Work with PR economic development offices to utilize Promise Zone, Free Economic Zone, and Opportunity Zone programs to our advantage
15. Given the ever-declining likelihood of obtaining direct government funding for the repairs, rebuilding, and new development of necessary programs and infrastructure, the municipality will need to aggressively foster strong relationships with local nonprofits and national grant sources to fund essential projects and economic development.

So much for my thoughts. Now:

• Would you support an effort to encourage our local candidates to pledge to honor this type of commitment?
• What would you add to the list?
• What would you take off?
• What do you think?