The Aqaba Special Economic Zone Authority (ASEZA) is the financially and administratively autonomous institution responsible for the management, regulation, and the development of the Aqaba Special Economic Zone (ASEZ).
65-405: The Aqaba special economic zone or ASEZA ( Arabic : سلطة منطقة العقبة الاقتصادية الخاصة ) was inaugurated in 2001 as an initiative by the government of Jordan to ensure that Aqaba ’s commercial and cultural prominence develops to be a regional hub for trade, tourism, and culture. Six ministerial-level commissioners, each responsible for a major area of regulatory or operational activity, govern
130-429: A public debt equal to 66% of its gross domestic product throughout time. By mid January 2017, the debt had reached $ 70 billion or $ 12,000 per capita in a territory with a 45 percent poverty rate and double digit unemployment that is more than twice the mainland U.S. average. It is essential for Puerto Rico to reach restructuring deals with creditors to avoid a bankruptcy-like process under PROMESA . In late January,
195-593: A "reversal of fortunes" in China's dealings with foreigners since the century of humiliation . Researcher Zongyuan Zoe Liu writes that "[t]he success of these cities as 'red' treaty ports represented another step in China's overall reform and opening-up plan while legitimizing the leadership of the CPC over the Chinese state and people." Numerous African countries have set up SEZs in connection with China, including over
260-432: A commitment to far-reaching reforms ... that will facilitate growth", the group concluded. Then Hurricane Maria struck the island on 20 September 2017, destroying infrastructure, causing great loss of life, and leading to a large exodus of residents. The 2020 census showed the population of Puerto Rico dropping by 11.8%. In August 2023, Governor Pedro Pierluisi floats a proposed resolution that would extend many of
325-511: A comprehensive master plan that encompasses development activities in the Zone for the promotion of portal, urban, tourist, commercial, academic, and other investment sectors. Developed planning already covers five special areas: Aqaba Town Port Areas Coral Coastal Zone Southern Industrial Zone Airport Industrial Zone The Master Plan aims at preserving natural resources within the construction frame. It comprises several zones and reserves for
390-423: A dynamic and attractive engine of economic growth, enhancing public health and streamlining trade in the zone, Jordan and the region. The Ben Hayyan Aqaba International Laboratories offer analytical and advisory services for food and environment, operating under two interdependent units: the food safety and practical environmental science laboratories. Aqaba Development Corporation (ADC) was launched by ASEZA and
455-520: A faster pace than the growth of its economy, reaching $ 46.7 billion in 2008. In January 2009 , Luis Fortuño enacted several measures aimed at eliminating the government's $ 3.3 billion deficit, including laying off 12,505 government employees. Puerto Rico's unemployment rate was 15.9 percent in January 2010 . Some analysts said they expect the government's layoffs to propel that rate to 17 percent. In November 2010, Gov. Fortuño proposed
520-407: A global scale, Puerto Rico's dependency on oil for transportation and electricity generation , as well as its dependency on food imports and raw materials, makes Puerto Rico volatile and highly reactive to changes in the world economy and climate . Puerto Rico, like many other countries, has transitioned from an agricultural economy to an industrial one . Its economy is currently experiencing
585-541: A peak of 75,000 in 1953. As of 2003 , the U.S. Census Bureau estimates that more people of Puerto Rican birth or ancestry live in the U.S. than in Puerto Rico. On 1 May 2006, the Puerto Rican government faced significant shortages in cash flows , which forced the closure of the local Department of Education and 42 other government agencies. All 1,536 public schools closed, and 95,762 people were furloughed in
650-491: A political party gains power ; as well as from its highly inefficient local government which has accrued a public debt equal to 66% of its gross domestic product over time. Despite these issues, the economy continues to gradually grow. In comparison to the different states of the United States , Puerto Rico is poorer than Mississippi , the poorest state of the United States, with 45% of its population living below
715-399: A profitable mining industry. Mismanagement of terrains and poor urban planning has made it difficult for the mining industry to thrive as well, as many deposits are directly below or nearby residential complexes. Puerto Rico also possesses industries of lime , marble , salt , cement , clay , crushed stone , dimension stone , industrial sand , gravel , and stone . The cement industry
SECTION 10
#1732773317889780-625: A shift in priorities towards industrialization, bureaucratization, mismanagement of terrains, lack of alternative methods, and a deficient agricultural workforce. Puerto Rico's geographical location within the Caribbean exacerbates these issues, making the scarce existing crops vulnerable to the devastating effects of Atlantic hurricanes . The following fruits are industrially cultivated and widely consumed: Apples ( manzanas ), bananas ( guineos ), grapes ( uvas ), oranges ( chinas ), and watermelons ( melones ) are imported, as well as some of
845-401: A tax reform plan that would be implemented in a six-year period, retroactive to 1 January 2010. The first phase, applicable to year 2010, reduces taxes to all individual taxpayers by 7–15%. By year 2016, average relief for individual taxpayers will represent a 50% tax cut and a 30% cut for corporate taxpayers, whose tax rate will be lowered from 41 to 30%. At the same time, the latest report by
910-1019: A transformation caused by the Information Age , albeit slowly. The economic history of Puerto Rico prior to the arrival of the Spaniards is not heavily documented. The part that is known about its inhabitants, the Taíno , is that their economy was a mixture of hunting and gathering with agriculture. They inhabited the island for centuries before the arrival of the Spanish in 1493 marked the beginning of their extinction. History The Taíno captured and ate small animals, such as mammals, earthworms, lizards, turtles, and birds. Manatees were speared and fish were caught in nets, speared, poisoned, trapped in weirs, or caught with hook and line. Wild parrots were decoyed with domesticated birds, and iguanas were taken from trees and other vegetation . Livestock husbandry
975-529: A zone, they are granted a period of lower taxation. The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI). The benefits a company gains by being in a special economic zone may mean that it can produce and trade goods at a lower price, aimed at being globally competitive. In some countries, the zones have been criticized for being little more than labor camps , with workers denied fundamental labor rights . The definition of an SEZ
1040-805: Is a lack of young farmers and that 65% of the island's agriculture force is over 55 years of age. The decrease in new farmers will have significant negative effects on the island. Fishery is common in all coastal towns but Puerto Rico does not have enough wild fisheries to supply the demand required to sustain a profitable fishing industry . There are no industrial fish farms on the island either. Common fish consumed by residents include cod ( bacalao ), mahi-mahi ( pez dorado ), marlin ( marlín ), salmon ( salmón ), snapper ( chillo ), trunkfish ( chapín ), and tuna ( atún ). Other seafood includes clams ( almejas ), crabs ( cangrejos ), lobsters ( langostas ), mussels ( mejillones ), octopuses ( pulpo ), oysters ( ostras ), and squids ( calamares ). It
1105-734: Is a trend of southeast Asian countries to develop and increase their SEZs. Since 2015, Thailand developed ten SEZs. As of 2024, Indonesia has 13 SEZs, the Philippines has 12 SEZs, and Cambodia has 31 SEZs. The term special economic zone can include: SEZs do not differ from other facilities in industrializing economies. As with any technique administered used by a globalized economy there are oversights by actors that are not domestic. Transnational criminal organizations and terrorist groups have taken advantage of Special Economic Zones and their lack of regulations. Economy of Puerto Rico#United States rule The economy of Puerto Rico
1170-557: Is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation , trading, quotas, customs and labour regulations . Additionally, companies may be offered tax holidays , where upon establishing themselves in
1235-908: Is classified as a high-income economy by the World Bank and as the most competitive economy in Latin America by the World Economic Forum . The main drivers of Puerto Rico 's economy are manufacturing , which primarily includes pharmaceuticals , textiles, petrochemicals , and electronics; followed by the service industry , notably finance , insurance, real estate , and tourism . The geography of Puerto Rico and its political status are both determining factors on its economic prosperity, primarily due to its relatively small size as an island; its lack of natural resources used to produce raw materials , and, consequently, its dependence on imports; as well as its relationship with
1300-483: Is determined individually by each country. According to the World Bank in 2008, the modern-day special economic zone typically includes a "geographically limited area, usually physically secured (fenced-in); single management or administration; eligibility for benefits based upon physical location within the zone; separate customs area (duty-free benefits) and streamlined procedures." The United States has long applied special economic rules to its outlying territories for
1365-451: Is essential for Puerto Rico to reach restructuring deals with creditors to avoid a bankruptcy-like process under PROMESA . More specifically, Puerto Rico has been in an unusual situation since 2016: its economy is under the supervision of a federal board that is managing finances and helping to get access again to capital markets. The commonwealth has a modern infrastructure, a large public sector, and an institutional framework guided by
SECTION 20
#17327733178891430-434: Is one of the only two industries experiencing consistent significant growth on the island with dogs , cats , fishkeeping , canaries , parakeets , and parrots being quintessential in homes. Consumption of animals commonly used as pets is frowned upon culturally save for rabbits. The Fall Armyworm is a highly polyphagous and economically significant pest here. See Puerto Rico Fall Armyworm . Almost all wood used on
1495-527: Is quite common for restaurants on the coast to serve fresh seafood. Livestock used for food includes cattle , goats , pigs , and rabbits . Donkeys , horses , and mules are strictly used for labor or recreation as consumption is frowned upon culturally by locals. Cattle is used for both meat and dairy with a strong and self-sufficient local milk industry through processors such as Suiza Dairy and Tres Monjitas . Poultry includes chickens , ducks , geese , turkeys , and quail . The pet industry
1560-495: Is subject to U.S. trade laws and restrictions. Also, starting around 1950, there was extensive migration from Puerto Rico to the Continental United States , particularly with Puerto Ricans moving to New York City , in search of better economic conditions. Puerto Rican migration to New York displayed an average yearly migration of 1,800 for the years 1930–1940, 31,000 for 1946–1950, 45,000 for 1951–1960, and
1625-726: Is tracked meticulously as it has shown to be highly correlated to the GDP of the island. Manufacturing is the largest economic sector of the island; composing almost half (about 46%) of its gross domestic product (GDP) through more than 2,000 manufacturing plants scattered throughout the island. All manufacturers in Puerto Rico are in some way interconnected with the Puerto Rico Industrial Development Company (PRIDCO) which provides substantial incentives for companies that manufacture in Puerto Rico. Manufacturers are also voluntarily interconnected through
1690-698: The Puerto Rico Manufacturers Association which serves as their primary trade association and their main lobby group upon the Legislative Assembly of Puerto Rico . Most manufacturing in Puerto Rico today is the product of Operation Bootstrap . In terms of specialization, more than half of all manufacturing done in Puerto Rico is attributed to the pharmaceutical industry which generates more than 18,000 jobs, pays more than US$ 3 billion in taxes, comprise about half of total exports, and has generated more than 25% of
1755-714: The minimum wage laws of the United States, which gives lower-wage countries such as Mexico and the Dominican Republic an economic advantage in the Caribbean . Once the beneficiary of special tax treatment from the U.S. government, today local industries must compete with those in more economically depressed parts of the world where wages are not subject to U.S. minimum wage legislation. In recent years, some U.S. and foreign owned factories have moved to lower wage countries in Latin America and Asia. Puerto Rico
1820-475: The poverty line . However, when compared to Latin America, Puerto Rico has the highest GDP per capita in the region. The Commonwealth has a massive bond debt that it is unable to service, $ 70 billion in early 2017, or $ 12,000 per capita, at a moment when its unemployment rate (8.0%, October 2018) is more than twice as large as the mainland's. The debt had been increasing during a decade-long recession. It
1885-433: The service industry , primarily finance , insurance , real estate , and tourism . Agriculture constitutes about US$ 808 million or about 0.8% of the island's gross domestic product (GDP). However, Puerto Rico imports 85% of its food even though most of the land is fertile. Only a mere 6% is arable; a fact that poses a direct threat to Puerto Rico's food security . This perplexing situation has been caused due to
1950-459: The ASEZ. ASEZA is a service–oriented organization offering one-stop assistance covering all investment needs. The Aqaba Special Economic Zone Authority (ASEZA) is the autonomous ASEZ management, regulation, and development institution. It offers integrated services and assistance to every concerned business and ensures all governing laws and regulations of ASEZ are made public. In 2002, ASEZA adopted
2015-642: The Commonwealth's government managed funds of $ 10.12 billion. In June 2013, a $ 300 million US Medicaid payment to Puerto Rico was delayed because the Puerto Rican Government had changed their nationally sponsored insurance carrier without obtaining approval from the US Health and Human Services Department. This one of several troubling economic developments, including high debt to population ratios that have caused consternation in
Aqaba Special Economic Zone Authority - Misplaced Pages Continue
2080-702: The Government of Jordan at the beginning of 2004, ADC owns Aqaba's seaport, airport and strategic parcels of land as well as the development and management rights for these assets in addition to key infrastructure and utilities. The Aqaba Development Corporation (ADC) was launched with the objective of unlocking the potential of the Aqaba Special Economic Zone by accelerating its economic growth and development. As of 2019, Aqaba Special Economic Zone has had 8 chief commissioners: Special economic zone A special economic zone ( SEZ )
2145-541: The President Task Force on Puerto Rico Status recognizes that the status question and the economy are intimately linked. Many participants in the forums conducted by the Task Force argued that uncertainty about status is holding Puerto Rico back in economic areas. And although there are a number of economic actions that should be taken immediately or in the short term, regardless of the ultimate outcome of
2210-545: The US municipal bond market. Puerto Rico has been experiencing an economic depression for 18 consecutive years, starting in 2006 after a series of negative cash flows and the expiration of the section 936 that applied to Puerto Rico of the U.S. Internal Revenue Code . In 2014, it was still in an economic depression. Section 936 was critical for the economy as it established tax exemptions for U.S. corporations that settled in Puerto Rico and allowed its subsidiaries operating in
2275-437: The United States federal government, which controls its foreign policies while exerting trading restrictions, particularly in its shipping industry . At the macroeconomic level, Puerto Rico has been experiencing an economic depression for 18 consecutive years, starting in 2006 after a series of negative cash flows and the expiration of section 936 that applied to Puerto Rico of the U.S. Internal Revenue Code . This section
2340-1297: The aforementioned cultivated fruits. Grains cultivated industrially and widely consumed include barley ( cebada ), maize ( maíz ), rice ( arroz ), rye ( centeno ), and wheat ( trigo ). Legumes include black beans ( habichuelas negras ), chickpea ( garbanzo ), kidney beans ( habichuelas rojas ), pea ( pitipuá ), pigeon peas ( gandules ), and pink beans ( habichuelas rosadas ). Tubers include cassava ( yuca ), eddoe ( malanga ), potatoes ( papas ), sweet potatoes ( batata ), taro ( yautía ), and yams ( ñame ). Vegetables include asparagus ( espárragos ), cabbage ( repollo ), cauliflower ( coliflor ), carrots ( zanahorias ), chayote ( chayote ), cucumber ( pepinillo ), eggplant ( berenjena ), lettuce ( lechuga ), onions ( cebolla ), and peppers ( ají ). Herbs include basil ( albahaca ), bay leaves ( hojas de laurel ), cilantro ( cilantrillo ), culantro ( culantro ), and parsley ( perejil ). Spices include achiote ( achiote ), cinnamon ( canela ), cloves ( clavos ), garlic ( ajo ), ginger ( jengibre ), and paprika ( sazón ). Rum and beer are types of liquor that are produced in Puerto Rico, in rum's case, using sugar canes. Recent studies have suggested there
2405-409: The benefits of Act 22 to all Puerto Ricans, but it risks being rejected by the U.S. Congress as part of the bankruptcy of the Commonwealth of Puerto Rico. The only merit of this proposal is that it would correct a fundamental inequity in the tax code. The economy of Puerto Rico is mainly driven by manufacturing , primarily pharmaceuticals , textiles , petrochemicals , and electronics ; followed by
2470-730: The country and have repeatedly hampered Puerto Rican development. With the signing of the North American Free Trade Agreement and the Dominican Republic–Central America Free Trade Agreement , Puerto Rico lost a trade advantage over some Latin American countries as the right to duty-free imports to the U.S. market were expanded. Following the Fair Minimum Wage Act of 2007 , Puerto Rico is also subject to
2535-555: The early 20th century the greatest contributor to Puerto Rico's economy was agriculture and its main crop was sugar, displacing other cash crops such as tobacco, cocoa, and coffee. In 1935, United States President Franklin D. Roosevelt launched the Puerto Rican Reconstruction Administration, which provided agricultural development, public works, and electrification of the island. After the end of Spanish rule, Puerto Rico's fiscal administration
2600-500: The federal control board gave the Government of Puerto Rico until 28 February to present a fiscal plan (including negotiations with creditors) to solve the problems. A moratorium on lawsuits by debtors was extended to 31 May. Governor Ricardo Rosselló strongly favored statehood for Puerto Rico, thinking in particular on the financial benefits statehood would offer. These include an additional $ 10 billion per year in federal funds,
2665-425: The first-ever partial shutdown of the government in the island's history. On 10 May 2006, the budget crisis was resolved with a new tax reform agreement so that all government employees could return to work. On 15 November 2006, a 5.5% sales tax was implemented. Municipalities are required by law to apply a municipal sales tax of 1.5% bringing the total sales tax to 7%. The public debt of Puerto Rico has grown at
Aqaba Special Economic Zone Authority - Misplaced Pages Continue
2730-413: The ground. Other crops, such as corn, were raised in simple clearings created by slash-and-burn technique. Typically, conucos were three feet high and nine feet in circumference and were arranged in rows. The primary root crop was yuca/ cassava , a woody shrub cultivated for its edible and starchy tuberous root . It was planted using a coa , a kind of hoe made completely from wood. Women processed
2795-423: The houses. Other fruits and vegetables, such as palm nuts, guavas and Zamia roots were collected from the wild. The economy of Puerto Rico was transformed drastically upon the arrivals of Spaniards in 1493 until their departure in 1898. Spain was initially drawn to Puerto Rico due to its gold deposits. However, the gold deposits were small and depleted quickly. Spain's interest in Puerto Rico after that point
2860-412: The island is imported even though a study conducted more than two decades ago by the U.S. Forest Service concluded that local soil could sustain a lumber industry if the proper species were used. Regardless of this, several small sawmills do exist on the island. There are some metal deposits of copper , gold , silver , zinc , and molybdenum on the island but they are not large enough to sustain
2925-424: The island to send their earnings to the parent corporation at any time, without paying federal tax on corporate income. The government has also experienced 24 consecutive negative cash flows since 2000, exacerbating its fragile economic situation as the government is forced to incur into new debt in order to pay the old one. Puerto Rico has, however, surprisingly been able to maintain a relatively low inflation in
2990-419: The island's GDP for the past four decades. Comparatively, Puerto Rico is the fifth largest area in the world for pharmaceutical manufacturing with more than 80 plants, including: Puerto Rico is also the third-largest biotechnology manufacturer with more than two million square feet and the seventh-largest medical-device exporter with more than 50 plants. Pharmaceutical companies originally came to Puerto Rico in
3055-402: The island. Operation Bootstrap was based on an "industrialization-first" campaign and modernization, focusing the Puerto Rican economy on exports, especially to the United States. As a result, Puerto Rico is now classified as a "high income country" by the World Bank . Although initially there were large gains in employment and per capita income, recessions in the United States were magnified in
3120-496: The late 1960s and 1970s to take advantage of the federal tax incentive known as Section 936. This incentive allowed U.S.-based manufacturers to send all profits from local plants to stateside parent plants without having to pay any federal taxes. These tax breaks were phased out over ten years starting in 1995, and so were eliminated in 2006. Expired patents, cheaper manufacturers (such as those in Brazil, China, India, and South Korea),
3185-718: The opening of China in 1979 by Deng Xiaoping was the Shenzhen Special Economic Zone , which encouraged foreign investment and simultaneously accelerated industrialization in this region. These zones attracted investment from multinational corporations and allowed export-oriented Chinese businesses to respond quickly to demand in foreign markets. China continues to maintain Special Economic Zones and certain open coastal areas. Most of China's SEZs are located in former treaty ports and therefore have symbolic significance in demonstrating
3250-619: The outcome, Congress will be the body to make the final decision on the status of Puerto Rico. A review of the economic situation in May 2017 by the Official Monetary and Financial Institutions Forum, an independent think tank, led to a warning that the planned "draconian budget-tightening" would cut up to 6% of the island's GNP over the next four years, leading to continuing decline. "Puerto Rico urgently needs an International Monetary Fund-style programme involving debt relief in return for
3315-402: The past decade. Academically, most of Puerto Rico's economic woes stem from federal regulations that expired, have been repealed, or no longer apply to Puerto Rico; its inability to become self-sufficient and self-sustainable throughout history; its public policy which tends to change whenever a political party gains power ; as well as its slightly inefficient local government , which has accrued
SECTION 50
#17327733178893380-635: The period 1990 to 2018 establishing SEZs in Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, and Algeria. Generally, the Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the China Africa Development Fund ). The Forum on China-Africa Cooperation promotes these SEZs heavily. As of at least 2024, there
3445-552: The poisonous variety of cassava by squeezing it to extract the toxic juices. Then they would grind the roots into flour for baking bread. Batata ( sweet potato ) was another important root crop. Corn was cooked and eaten off the cob. However, corn bread became moldy faster than cassava bread in the high humidity of the West Indies . The Taíno also grew squash , beans , peppers , peanuts and pineapples . Tobacco, calabashes (West Indian pumpkins) and cotton were grown around
3510-611: The primary cultivations which were exported to Europe and, by so, constituted the main economy for the island. Mining of gold, silver, and copper occurred as well, although not as much as in other territories during the Spanish colonization of the Americas . The financial administration of Puerto Rico was directly from Madrid, although there were limited elements of home rule. Taxation under Spanish rule entailed stamp taxes on transfers of property and consumption taxes on foodstuff. In
3575-465: The protection of Aqaba's cultural, archaeological , historical and natural heritage and diversity. Areas include: Five environmental zones, coral reserves, archaeological reserves, natural area reserves and a Beach Protection Zone. Aqaba International Laboratories - BEN HAYYAN was established under the EU funded programme “IS-ASEZA”, to support ASEZA in guiding the Aqaba Special Economic Zone towards becoming
3640-418: The purpose of economic development. Section 936 corporate tax exemptions for Puerto Rico began with Operation Bootstrap in the 1940s and ended in 2006. The federal minimum wage for U.S. territories has in the past been lower than in the states, and as of 2024, American Samoa is still adjusting upward to the nation-wide minimum. Modern SEZs appeared from the late-1950s in industrial countries. The first
3705-433: The regulations of U.S. federal agencies , most of which have an active and continued presence in the island. Its main trading partners are the United States itself, Ireland , and Japan , with most products coming from East Asia , mainly from China , Hong Kong , and Taiwan . In 2016, additional trading partners were established, with Singapore , Switzerland and South Korea commencing import trades with Puerto Rico. At
3770-405: The right to vote in presidential elections, higher Social Security and Medicare benefits, and a right for its government agencies and municipalities to file for bankruptcy. A fifth plebiscite is due to be held on 11 June 2017. The two options at that time will be "Statehood" and "Independence/Free Association". It will be the first referendum not to offer the choice of "Commonwealth". Regardless of
3835-538: The rise of generic drugs , and high production costs now also pose a challenge to the industry. As of 2014 , Puerto Rico produces 16 of the top 20-selling drugs in the mainland United States. The aeronautical industry is relatively young on the island and concentrates mostly on the northwestern corridor composed by Aguadilla and Isabela . These municipalities serve as local headquarters for Honeywell Aerospace , Lufthansa , and Pratt & Whitney . GE Aviation , Lockheed Martin , and Raytheon also have presence on
3900-937: The status question, identifying the most effective means of assisting the Puerto Rican economy depends on resolving the ultimate question of status. In short, the long-term economic well-being of Puerto Rico would be dramatically improved by an early decision on the status question. During fiscal year (FY-2012), the Consolidated Budget for the archipelago, including both direct transfers from federal programs ( Social Security and Medicare benefits for workers, Veteran's benefits , Pell Grants and student loan's interest subsidies and miscellaneous temporary appropriations -e.g. American Recovery and Reinvestment Act of 2009 grants totalling $ 2.6 billion-) represented more than $ 28.7 billion, or approximately 30% of its GDP, while revenues surpassed $ 31 billion. In 2010, federal transfers amounted $ 16.710 billion, while
3965-765: Was critical for the economy of the island as it established tax exemptions for U.S. corporations that settled in Puerto Rico and allowed its subsidiaries operating in the island to send their earnings to the parent corporation at any time, without paying federal tax on corporate income. Puerto Rico has, however, been able to maintain a relatively low inflation rate in the past decade. Academically, most of Puerto Rico's economic woes stem from federal regulations that expired, have been repealed, or no longer apply to Puerto Rico ; from its inability to become self-sufficient and self-sustainable throughout history; from its highly politicized public policy which tends to change whenever
SECTION 60
#17327733178894030-586: Was in Shannon Airport in County Clare , Ireland . Some tax-free jurisdictions such as the Cayman Islands offer technology companies a way to keep their IP offshore in a Special Economic Zone (see Cayman Enterprise City ). From the 1970s onward, zones providing labour-intensive manufacturing have been established, starting in Latin America and East Asia . The first in China following
4095-420: Was not practiced as there were no large animals native to Puerto Rico that could be raised in an agricultural setting in order to produce commodities such as food, fiber or labor . Fields for important root crops, such as yuca , were prepared by heaping up mounds of soil, called conucos . This improved soil drainage and fertility, as well as delaying erosion, and it allowed for longer storage of crops in
4160-498: Was primarily tactical and strategic. The economy during that period was driven by slavery of the native population, the Taíno , and by slaves brought from Africa . Slaves were minimally remunerated for or forced to work in farms, mines, households, and other aspects. Agriculture was the primary mean of production , as well as livestock which was originally imported from Europe. Sugar cane , tobacco, coffee, cocoa and minor fruits were
4225-474: Was reformed. Economic conditions had improved since the Great Depression because of external investment in capital-intensive industries such as petrochemicals , pharmaceuticals and technology . Starting in the late 1940s a series of projects called Operation Bootstrap encouraged the establishment of factories using tax exemptions. Thus manufacturing replaced agriculture as the main industry of
#888111