In the World Bank’s “Ease of Doing Business 2020” classification – which shows that most of the developing economies have been making progress in the area of ease of doing business – Puerto Rico continues to lag after lowering 10 ranks between 2016 and 2019 , to be placed in the 65th position of 190 countries.
“Despite the great advances, the gaps remain wide in developing countries, and that includes Puerto Rico. Our classification continues to suffer from the inaction of all local constituents, including government, agencies, the legislature and the private sector. For Puerto Rico, improving our ranking represents a great opportunity to attract a wide variety of companies to the Island while allowing its organic growth to prosper and develop large amounts of wealth, rather than large amounts of poverty, ”said Francisco J Rodriguez, president and CEO of Birling Capital, LLC.
This classification of Puerto Rico in the World Bank Ease of Doing Business, highlights the improvement of countries in the area such as: starting a business, building permit management, cross-border trade, widespread use of electronic systems and online access, and platforms To meet the requirements.
The reports also found that Latin America and the Caribbean – including Puerto Rico – were delayed in terms of development and implementation of reforms and impact. Not a single economy in this region appeared on the list of the top 10 in the last two years. In addition, they are not among the top 50 countries that facilitate doing business. “As citizens, we must unite to develop a plan to address these problems because they are central factors to improve our economic well-being and develop a sustainable economy that shoots at full speed. As a way to address these issues, we must gather a group of private sector executives to improve our poor classification in the ease of business classifications. The private sector must lead the way with the sole objective of increasing the classification of Puerto Rico in three years to the first 30 in ease of doing business, ”said Rodríguez.
This report includes a set of recommendations to reactivate the economy in the short term and, in particular, to establish the basis for sustained development.
A recurring theme in the analysis of the economy of Puerto Rico has been that of its poor performance for at least three and a half decades. During this period, the economy had an annual growth of around 2.0% – well below the rates achieved by competitors and peers – something that is clearly reflected in the section of the report that includes the benchmarking exercise that led to cape.
Many ideas, little progress.
Concern for the economic development of Puerto Rico has been a constant over the past three and a half decades. The trigger for this concern has been the fact that on average the growth of the economy has been just over 2.0% annually in real terms throughout the period.
Through that period countless studies on the economic situation have been carried out, many of them with proposals that are repeated in subsequent studies.
These studies include: Chamber of Commerce / Industrial Association – Towards the possible economy (2003); Puerto Rico Commission: 2025 (2004); The Puerto Rico Development Alliance – Action Plan; A New Vision for Puerto Rico: Ten Priorities, was commissioned by MIDA in 2007; Globalization and development, study conducted by the Economic Commission for Latin America and the Caribbean (ECLAC), in 2004; and The Economy of Puerto Rico: Restoring Growth, report prepared by the Brookings Institution with the participation of local academics. To this are added other studies that have addressed different components of the issue of economic development.