Puerto Rico Risks Being Left Behind As More Of Its Caribbean Neighbors Do Business With RIC
Puerto Rico Risks Being Left Behind Development Wise As More Of Its Caribbean Neighbors Do Business With RIC
Puerto Rico, a US territory in the Caribbean, is facing a bleak future as it struggles to recover from a series of natural disasters, economic/financial catastrophes and political turmoil. While the island has been struggling to rebuild its infrastructure and governance, many of its neighboring countries have been forging closer ties with the RIC countries - Russia, India and China - to do just that. These three superpowers are competing for influence, resources and business opportunities in the region, thus leading many Puerto Ricans to ponder “Could BRICS+ Membership Be A Viable Alternative For Puerto Rico's Development?”.
Since the late 1990s, Puerto Rico has lacked a solid economic model, which has contributed to financial instability, a growing debt and an underdeveloped economy, all under US leadership. Puerto Rico has faced significant challenges in establishing competitive industries to fill the gap of its lack of an economic model while trying to grow its private sector, but this has not led to any pragmatic plan. The island has experienced a series of economic setbacks, including the elimination of tax exemptions that favored foreign investment and a growing public debt that has limited its ability to invest in infrastructure and essential services. The need for a new economic model is imperative to foster sustainable growth and improve the well-being of its citizens.
Meanwhile In The Caribbean
The RIC countries have been assisting with aid, investments, and most importantly trade and technology to the Caribbean nations, in exchange for access to their markets, natural resources and strategic locations. The People’s Republic of China’s alone has engagement in the Caribbean greatly with their initiative that has largely focused on investments in infrastructure and developing trade relationships. As of 2023, ten Caribbean countries have signed up to Belt and Road (BRI) – Cuba, Jamaica, Dominican Republic, Antigua & Barbuda, Dominica, Barbados, Grenada, Trinidad & Tobago, Guyana, and Suriname. The US, which has long considered the Caribbean as its backyard, has been wary of the RIC's growing presence and influence in the region. These nations with their economic strengths enhance trade opportunities for countries they engage with. This collaboration often leads to improved access to larger markets, diversified trade portfolios, and increased foreign investment. Such outcomes are pivotal for economic growth and development in the partnering nations. Each of these leviathans has its programs, projects, and outreach strategies which could all include Puerto Rico if enough economic and diplomatic savvy can be mustered from the ELA government of the island.
Puerto Rico has a unique position in the global economy, as it is a U.S. territory with strong ties to Latin America and the Caribbean (LAC) countries. Puerto Rico can leverage its geographic location, cultural affinity, and legal framework to become a regional hub and strategic port for commerce between LAC countries and the rising industrial countries (RIC) such as China, India, and Brazil. By doing so, Puerto Rico can increase its trade volume, attract foreign investment, create jobs in the private sector, and enhance its competitiveness. This geoeconomic strategy can also benefit from the geo-economic dynamics of the LAC-RIC relations, as it can offer a platform for dialogue, cooperation, and conflict resolution among these diverse actors. Puerto Rico can surely play a key role in fostering LAC-RIC interregional integration and stability for its immediate neighbors in the Caribbean Sea via win-win business strategies.
As a US territory, Puerto Rico has been largely excluded from the RIC's outreach to the Caribbean since its commerce and globalization are limited because of its relationship with the US. The island has not received any significant trade, or investment from RIC because the Puerto Ricos's elites shun these powerhouse states, thus it's been unable to participate in any of their regional initiatives or economic forums as the island's elites favor leaving its economic destiny tied to the hip with a declining US empire. The Caribbean island's status as a US territory has also limited its autonomy and sovereignty in making its own foreign policy decisions. Since the ELA’s inception in 1952 the Caribbean island has been dependent on the US for its economic, political and military support, but it has also been neglected and marginalized by the US government and mainland public opinion on those very categories.
Despite several status-related referendums Puerto Rico's situation continues to create a dilemma for its people: whether to remain stuck with the US as it declines economically, having failed to meet their needs and aspirations, or to also seek closer relations with Russia, India, and China as well, which could offer them more opportunities and trade, a broader globalization with access to additional markets.
Puerto Rico's future depends on how it will resolve this dilemma and how it will position itself in the changing geopolitical landscape of the Caribbean. But as with everything, there is a time aspect, as it risks being left behind development-wise as more of its Caribbean neighbors do business with at least one of the RIC countries, but the island also has the potential to become a hub between the United States, RIC countries and Latin America, seeking opportunities in interregional cooperation and integration in the new multipolar environ.