Operation Bootstrap

Operation Bootstrap

For other uses, see Bootstrapping and Bootstrapping (law).

Operation Bootstrap (Operación Manos a la Obra) is the name given to the ambitious projects which industrialized Puerto Rico in the mid-20th century.

Contents

History

The island's traditional economy was based around sugarcane plantations. By the middle of the twentieth century it remained one of the poorest in the Caribbean (never mind that the very name Puerto Rico means "rich port" in Spanish), and in 1948 the United States government began Operation Bootstrap, which invested millions of dollars into the Puerto Rican economy. Envisioning that a densely populated island like Puerto Rico with now over 1000 persons per square mile could not subsist on an agrarian system, the government's Departamento de Fomento ("Department of Economic Developement") encouraged the establishment of factories.

Puerto Rico enticed US companies by providing labor at costs below those on the mainland, access to US markets without import duties, and profits that could enter the country free from federal taxation. The Departamento de Fomento invited investment of external capital, importing the raw materials, and exporting the finished products to the United States. To entice participation, tax exemptions and differential rental rates were offered for industrial facilities. As a result, Puerto Rico's economy shifted labor from agriculture to manufacturing and tourism. The manufacturing sector has shifted from the original labor-intensive industries, such as the manufacturing of food, tobacco, leather, and apparel products, to more capital-intensive industries, such as pharmaceuticals, chemicals, machinery, and electronics.[1] Through this project, a rural agricultural society was transformed into an industrial working class.[2]

Although initially touted as an economic miracle, by the 1960s, Operation Bootstrap was increasingly hampered by a growing unemployment problem.[3] As living standards and wages in Puerto Rico rose, manpower-intensive industries faced competition from outside the United States. It also faced criticism from civil rights groups and the Catholic Church, who perceived the government promoting birth control, encouraging surgical sterilization, and fostering the migration of Puerto Ricans to the United States.[4]

As of 2005 the United States remains Puerto Rico's major trading partner, received 86% of Puerto Rico's exports and providing 69% of its imports.[5]

See also

Further reading

  • Teodoro Moscoso and Puerto Rico's Operation Bootstrap by A.W. Maldonado. Gainesville: University Press of Florida, 1997. ISBN 0-8130-1501-4
  • Las campañas de control de la natalidad contra las mujeres, by Gloria Arimón en Servir al pueblo, número 233, 1984.
  • Economic History of Puerto Rico: Institutional Change and Capitalist Development, by James L. Dietz. Princeton, NJ: Princeton University Press, 1986.
  • The Disenchanted Island: Puerto Rico and the United States in the Twentieth Century, by Ronald Fernández. 2ª ed. Westport CT: Praeger, 1996.
  • Factories and Food Stamps: The Puerto Rico Model of Development, by Richard Weisskoff. Baltimore, MD: Johns Hopkins University Press, 1985.

References

  1. ^ "Bootstrapping". NiN. http://www.ninwiki.com/Parepin. Retrieved 2010-07-15. 
  2. ^ United States Department of Agriculture. "Democracy at Work in Rural Puerto Rico (ca. 1940s)". Prelinger Archives. http://www.archive.org/details/Democrac1940. Retrieved 2010-07-15. 
  3. ^ "Operación "Manos a la Obra" (1947)". Fundación Puertorriqueña de las Humanidades & National Endowment for the Humanities (NEH.GOV). http://www.enciclopediapr.org/esp/article.cfm?ref=06102003&page=3. Retrieved 2010-07-15. 
  4. ^ "Women in World History". Center for History and New Media, George Mason University. http://chnm.gmu.edu/wwh/modules/lesson16/lesson16.php?s=0. Retrieved 2009-08-08. 
  5. ^ "Operation Bootstrap". about.geography. http://geography.about.com/library/weekly/aa031698.htm. Retrieved 2009-08-08. 

External links


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