Wednesday, September 7-13, 2022 - // no. 176 www.theweeklyjournal.comPuerto Rico and the Caribbean GO TO PAGE 4 CONTINUEELECTRONICSTO SELL P6 PR FALLS SHORT WHEN CONVERTING IDEAS BUSINESSESINTO P7 CASH OR CREDIT DURING EMERGENCYAN P10 POPE DISCUSSES THE FUTURE OF CATHOLIC CHURCH P14
IN PUERTO
Juan A. Hernández, The Weekly Journal Despite Puerto Rico’s economy having shrunk by 23.6% since 2006, cooperatives in the island have kept their strength and liquidity, stabilized the quality of their assets, and improved their cost effectiveness and capital.
“In this environment, co-ops are performing well. The Financial Stability Index of the savings and loans co-ops, which reached its lowest in 2018, has been experiencing an increasing trend in the last two years,” said economist Leslie Adames, from Estudios Técnicos consulting firm. This index is based on only four indicators: liquidity, solvency, return on assets (ROA), and asset“Undeniably,quality. there has been improvements in cost effectiveness, liquidity, in asset quality (as measured by non-performing loans)… delinquency rate is at its lowest in recent times. All these confirms that, as an industry they [co-ops] are in
STATE
Savings and loans thrived amid natural disasters and the pandemic but the future is not guaranteed
THE OF CO-OPS RICO
www.elvocero.com/revistas/zona Be be on trend...Be on trend... 2 20227,SeptemberWednesday,>JournalWeeklyThe >
ProfessIonAl
CabaCOOP Cooperative is offering a true ecotourism and educational adventure to students, teachers, and families in the new school semester. A guided tour, available both day and night, takes adventurers through the caves of the Las Cabachuelas Nature Reserve in Morovis. The interpretive tour of Cabachuelas begins with a 10-minute walk which brings participants to their first encounter with the underground world. Here, visitors establish the first connection with our ancestors looking at the surviving engravings in the “Los Gemelos” cave, and enjoying a spectacular scenic view of northern karst formations. The nature walk will extends for approximately four hours and passes through spectacular caves, where hikers will get to know more about this magical ecosystem and its inhabitants.Proyecto Cabachuelas has already scheduled tours every Saturday and Sunday of September. Tours are also available during the week for student groups that can be coordinated by calling 939-450-1295, or by text or Whatsapp. The minimum for the group is 10 people.
Women’s DeveloPment
VP of Accounting Félix A. frosa@elvocero.comRosa
Multi-Platform Graphic and Technology Director Héctor L. hvazquez@elvocero.comVázquez
/ Wednesday, September 7, 2022 3 An InterActIve PlAtform for
Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902 Phone: 787-622-2300, 787-721-2300 Customer Service: 787-622-7480
VP of Editorial Content Juan Miguel Muñiz jmuniz@elvocero.comGuzmán
Multi-PlataformDigitalDirector Rafelli González rgonzalez@elvocero.comCotto
Human Resources Director Arlene Rolón, arolon@elvocero.comPHR
Power Up by Lucienne –a new project launched by businesswoman Lucienne Gigante, who has created and launched more than 10 economic and social development programs for women in Puerto Rico and the US– is a multifunctional social action platform for women. The project consists of two initiatives: Power Up Talks and Power Up Boost. Power Up Talks offers a look at leaders from different industries through 20-minute interviews in which they cover topics like motivation and advice live on Gigante’s Instagram platform, @luciennegigante1. The Power Up by Lucienne agenda has a lineup of professional heavy-hitters, including Valeria del Rey, founder of La Gotta swimwear and a professor at the Instituto Marangoni in Miami, and Maite Jordan, Executive Director at Rums of Puerto Rico. Power Up Boost is a free weekly newsletter that provides subscribers with information and resources to connect, grow, and collaborate. Visitors to the site can also find blogs and articles with tools and resources for their ventures.
VP of Production Eligio edekony@elvocero.comDekony
The Puerto Rico Science, Technology and Research Trust and its Research Grants Program are seeking to expand research done on the island to increase Puerto Rico’s portfolio of intellectual property and global competitiveness through the Catalyzer Research Grant (CRG). The CRG awards 10 grants in the amounts of $70K each to help researchers position their R&D proposals competitively before submission to private or federal agencies. The projects –coming from the University of Puerto Rico, Ponce Health Sciences University, and the Central University of the Caribbean– investigate topics from breast and prostate cancer to offshore wind energy and opioid use disorders. Not counting this year’s projects, the CRG has awarded 120 grants for an estimated total of $13.8 million and return on investment of over $37 million, according to Andreica Maldonado, Director of the Research Grants Program.
President Salvador shasbun@elvocero.comHasbún
$700K AWArDeD to reseArch Projects In Puerto rIco
subterrAneAnADventuresInlAscAbAchuelAs
a week in review
Vp of Marketing and Business Operations Michelle Miperez@elvocero.comPérez
CONTINUED FROM great shape,” Adames added. According to a recent report presented by Mabel Jiménez Miranda, president of the Public Corporation for the Supervision and Cooperatives Insurance of Puerto Rico (COSSEC, for its Spanish acronym) before the College of Certified Public Accountants (CCPA), total assets for co-ops as of June 30th, 2022, were $11.45 billion. This represents a 30% increase, when compared to the $8.80 billion in total assets of June 2018. In terms of liabilities, the total as of June 2022 was $8.26 billion, or 36% more than the total for June 2018 ($6.07 billion).
PAGE 1
Total capital for co-ops in Puerto Rico increased to $3.18 billion, or 17% more than June 2018 ($2.72 billion).“Despite earthquakes, the pandemic and very challenging market conditions, co-ops’ capital has experienced constant growth over recent years,” said Jiménez Miranda. Estimated losses Co-ops’ reserves have followed the same trend as their assets, increasing to $686.2 million from $463.4 million in 2015. “Co-ops now have enough reserves to cover the risk of their investments in Puerto Rico,” said Jiménez Miranda. But, even though that is a significant achievement it came at a cost. Co-ops’ reserves have been built despite the financial loss caused by the Commonwealth default on its public debt. Co-ops had been forced, by law, to buy millions in government bonds that recently saw their yield reduced to pennies for the dollar after the U.S. federal court sanction Debt Adjustment Plan (DAP) to restructure the Commonwealth’s public debt. In her report Jiménez Miranda admitted investment in Puerto Rico securities had decreased $840.6 million in 2015 to $67.5 million. Similarly, the co-ops financial losses had been reduced from $309.2 million in 2018, to $165.4 million in 2022.
/ Wednesday, September 7, 20224
Leslie economistAdames,atEstudios Técnicos
COSSEC’s president avoided to comment on the general conditions of the reserves saying that, if negotiations managed to reduce estimated Co-ops had been forced, by law, to buy millions in government bonds that recently saw their yield reduced to pennies for the dollar. In fact, Undeniably, there has been improvements in cost effectiveness, liquidity, in asset quality (as measured by non-performing loans)… All these confirms that co-ops are in great shape.
Mabel Jiménez Miranda, president COSSEC
Recommendations For The future
But, while co-ops show a healthy growth in recent years, their number have been dwindling. In her report before the CCPA Jiménez Miranda informed that the number of co-ops dropped from 114 in 2018, to 106 in 2022. This drop in the number of co-ops responds to a series mergers between these institutions. These mergers are classified as “voluntary” or “assisted voluntary”. The first kind of merger takes place between coops whose conditions are considered “adequate” and the transaction does not require economic assistance from COSSEC. Assisted voluntary mergers take place between a co-op with adequate conditions and another with non-adequate conditions, and the transaction requires economic assistance from COSSEC.
Jiménez Miranda did not specify how many or what kind of mergers have been completed since 2018 beyond mentioning the voluntary assisted merger between Abraham Rosa Co-op and Credicentro Co-op had been completed last July 1st. Nevertheless, she did anticipate more will be merged.
Adámes reiterated that inflation and interest rates must be taken into consideration, but he warned about other risks. “There are geopolitical, macroeconomic, operational and strategic risks, among several others that co-ops must continuously be evaluating to determine how they impact their financial stability.”
According to Adames, while economic conditions in Puerto Rico have improve significantly, said improvement has been sponsored by massive federal funding. As this federal stimulus is phased out, Puerto Rico’s economic scenario could rapidly change, which in turn makes the current situation very uncertain.
MirandaJiménez did not specify how many or what kind of mergers have been completed since 2018 but did anticipate more will be merged. In fact, We [at COSSEC] have to watch out not for how many co-ops there are, but for the number of members and that they are offered the best alternatives.
“Voluntary mergers are already underway, but I cannot comment on them because each co-op involved most have its general assembly first before giving authorization. There are 105 co-ops now and we expect that, by the end of all processes, we will end up with 98 or 99,” said COSSEC’s president, who expressly minimized the importance of the number of these institutions. “We [at COSSEC] have to watch out not for how many co-ops there are, but for the number of members and that they are offered the best alternatives,” Jiménez Miranda said. “Our focus should be that all our co-ops be able to offer the best possible service to its members.”
/ Wednesday, September 7, 2022 5 losses, then the corporation did “a good job.” Jiménez Miranda did not specify how much of those losses were “erased” by virtue of the DAP approved earlier this year. Still, the number of co-op members show a significant increase from 996,132 in 2018, to 1,114,261 in June 2022, along with a corresponding increase in deposits and loans. More specifically, in the three-year period between 2018 and 2022, deposits reached $8.12 billion, or a 37.28% increase. Loans experienced a 24.25% increased between 2018 and 2022, reaching a total of $5.92 billion. Could Less Be better?
Among the risks co-ops must face, Adames mentioned: the delay in the disbursement of reconstruction funds, the limited number of infrastructure projects that could be financed because of inflation, the financial pressure upon businesses due to increasing costs, and the eroding purchasing power of the consumer, among others. For Adames, the word is “caution”. “Co-ops must analyze the sensibility of their balances in light of the changes in interest rates. They have to sit down with those managing their investment portfolios –evaluate maturities, durations– and determine if they need to be repositioned,”he said.
Consumers on the island look for affordable prices and technology
For his part, Wilton Vargas, from tecnetico. com, highlighted solid sales of electronic items, but admitted a drop in demand for this type of items, when compared to 2021, as a result of the inflationary effect. However, he emphasized the local market currently has a lot of inventory, and anticipated there will be a reduction in prices in the coming months. “What is happening in 2022 is a drop in demand due to inflation,” said Vargas. “Nevertheless, while sales have stayed [high], now the price is going to start to fall as expected sales are not met… There is a lot of inventory and in the coming months we are going to see a drop in prices and if that does not stimulate buyers, the special offers for ‘Black Friday’ and at Christmas are going to be spectacular,” he assured.
As of July, the United States inflation rate reached 8.5%, a decrease from June when it peaked at a record high of 9.1%. However, the consequences of inflation have touched multiple sectors of the business industry, one of which is electronics. Inflation-driven supply chain issues, COVID-19 disruptions and geopolitical tensions all contribute to the challenges the electronic industry is now facing.
A struggling Supply Chain
The U.S. Census Bureau reported in its retail sales charts that the sales of electronics and appliances were down 9.9% year over year for the month of July. According to bankrate.com’s Ted Rossman, people are spending more money outside the home than they did in 2020 and 2021. “The increase of prices in items such as food, housing, and energy have caused a major change in how people spend their income. If people are spending more on travel and dining they’re going to be spending less on electronics, appliances and clothing. Not only that, this trend extends beyond the United States,” Rossman said.
For months now, manufacturers have struggled with shortages and extreme cost volatility for various noble gases, palladium, nickel, platinum, and aluminum which go into the making of electronics. Moreover, establishing new supply relationships have proven to be an expensive and challenging endeavor for ongoingBloombergmanufacturers.reportedthatgeopoliticalconflicts and COVID lockdowns have, “created significant inflationary pressure, making electronics manufacturing, 20 to 30 percent more expensive.” As a result, manufactures and their service providers have had to pass their rising operating costs downstream.
/ Wednesday, September 7, 20226
If people are spending more on travel and dining they’re going to be spending less on electronics, appliances and clothing.
Ted Rossman, analyst for bankrate.comThe new hybrid work and education modality caused by the pandemic has held up, so the most sought-after backto-school items have been laptops and tablets. In fact,
Madison Choudhry and Efraín Montalbán Ríos, The Weekly Journal
Inflation slows sales of electronics in the U.S. but not in Puerto Rico
Despite visibility for the global electronic industry being minimal, signs indicate that not all is lost. However, it is unclear when the global inflation wave will stop driving up electronic production or market costs.
In Puerto Rico Despite the inflation rate affecting the island, sales of electronic devices have remained stable, and even increased during the recent back-to-school period, according to Jonathan Moreira, founder and CEO of tecnotruco. com.Unsurprisingly, the new hybrid work and education modality caused by the COVID-19 pandemic has held up, so the most soughtafter back-to-school items have been laptops and tablets.“Prices have remained the same for digital devices, only consumers are looking for the most affordable price and technology… not just the latest model, but a model that can meet the needs of the consumer, in this case the students. This way, they have been able to keep an accessible budget from $700 to $1,500,” Moreira said.
National leaders and central banks in Europe, Asia, and the United States are working to slow increasing prices by raising interest rates. However, the complex geopolitical factors make it unlikely that the trend of rising inflation will stop or become inverted soon. Although, the World Bank forecasts that, “global consumer price inflation will fall below 3 percent in 2023.”
/ Wednesday, September 7, 2022 7
“Through this report on the status of the entrepreneurial community, we shed light on data where there are inequities. Then, we share this data with organizations that can provide support and take action,” Rodríguez said.
One of Colmena’s goals in tracking data is to ensure everyone has equitable access to the resources needed to be successful in launching and maintaining a business. Their most recent report ‘The State of the Entrepreneurial Community in Puerto Rico’ exposed trends and areas in need of improvement from the past year highlighted by data.
Colmena66 specifically focuses on data and the power it provides in tracking entrepreneurs’ success, allowing the organization to identify areas in need of improvement and highlight and share successes with the wider business community.
ne of the hurdles for the Puerto Rico small business community is growing beyond the three and a half year mark. According to the Global Entrepreneurship Monitor, an annual assessment of the national level of entrepreneurial activity in various countries –and the only global index where Puerto Rico is visible–the island is doing well at launching new ideas. This launching of new ideas creates what are called ‘nation businesses’. They’re new ideas that are starting out as businesses. What the island is not doing so well is at converting ‘nation businesses’ into ‘new businesses’, those in which the founders can effectively live off their new business, and sustaining operations beyond three and a half “Entrepreneursyears. are makers, doers, dreamers… they create products and services that respond to problems, creating value where there was none before and building generational wealth,” Dennise Rodríguez, Executive Director at Colmena66 said, while also acknowledging that entrepreneurship isn’t necessarily for everyone because of the high risk involved.
“One of the things that really surprised us was how we track entrepreneurs’ journeys in a way that shows a roadmap of how you start and grow a successful business in PR and who can help you along the way,” said Rodríguez, in an interview with THE WEEKLY JOURNAL.
New businesses create almost all new jobs in an economy,” commented Rodríguez.
There are a few pillars that make up the entrepreneurship ecosystem: access to capital, culture, support, human capital, markets, and public policy. Better public policy, at the local, state, and federal levels, can make a big difference on the success of young companies.
Officially launched in 2016 in partnership with the Puerto Rico Science, Technology, and Research Trust, Colmena66 is a system integrator, an organization that provides a system of support for entrepreneurs while creating an ‘entrepreneurship ecosystem’ or, in other words, a community of support for people looking to build a business.
How Government Can Facilitate Entrepreneurial Growth
“We can do a lot more to gear our public policy and our resources towards supporting entrepreneur-led economic development. We need to diversify our economy and our economic development strategy. Diversification is key because we are an island,” Rodríguez emphasized.
Getting past the 3.5 year mark is the biggest challenge Zoe Landi Fontana, The Weekly Journal
Taking action can look like evaluating existing programs through a different lens. For example, one of the entrepreneurship support programs ran on the weekends, assuming that most attendees work a standard eight hour shift on weekdays. For parents, the responsibilities of taking care of the children often fall on the mother, this assumes they have some sort of childcare option available and accessible. Thus, there is a need to diversify scheduling options for classes to suit a variety of lifestyle needs. Parallel18 is another of the programs that Colmena66 works closely with that promotes Puerto Rico start-ups while simultaneously connecting the founders with potential investors. Colmena66 aims to diversify gender participation in investing by informing and educating high net-worth women on the opportunities that these startups present, increasing overall access to capital.
Puerto Rico is lagging at turning ideas into businesses
Colmena 66 presents its report on The State of the Business Community in Puerto Rico.
According to the report, fewer women –along with other underrepresented groups such as Afro-Caribbeans, veterans, and LGBTQIA+ entrepreneurs– have access to capital, limiting opportunities to launch a new business idea.
in times of crisis. “[We should] not only support multinational companies coming to Puerto Rico, but equally support our local entrepreneurs because what we’ve seen through data tracked in the US, is that entrepreneurs drive almost all job growth.
Underrepresented Groups In The Entrepreneur Community
America’s New Business Plan, a policy guide to create a more inclusive economy, tracked net job creation by age of the firm and found that most new jobs are created by companies with less than five years of operations, while companies 10 years and older are quicker to lay employees off
O
President Biden has also stated that borrowers who pay monthly for university loans will only be responsible to pay 5% of their income.
Measure would erase federal student debt to some 20 million people
Choudhry, Special to The Weekly JournalMadison he Federal Department of Education announced a final extension for the payment of student loans until December 31, 2022. This announcement comes shortly after President Joe Biden presented a debt cancellation plan for students of up to $20,000. “In keeping with my campaign promise, my administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden wrote in a message on social media (Twitter). The White House explained that during the pandemic individuals with an annual income of less than $125,000, or less than $250,000 in cases of married couples, who have received a Pell scholarship will be eligible for a debt cancellation of up to $20,000.However, those who meet these income requirements, but did not receive a Pell scholarship will only be eligible for an aid of up to According$10,000.to the Bureau of Education more than 43 million people have a federal student debt, with an average balance of $37,667. The report states that almost a third of borrowers owe less than $10,000, and approximately half owe less than $20,000. The White House claims that Biden’s announcement would erase the federal student debt of about 20 million people.
T
Perhaps anticipating a legal pushback, the Biden administration published its legal reasoning in a statement at the same time it announced the debt cancellation.Thememo states that the HEROES Act, enacted after the September 11 attacks, gives the Secretary of Education the power to grant relief from student loan requirements during specific periods such as wartime or a national emergency.
According to the Education Department’s office of Federal Student Aid, “You can get a refund for any payment (including auto-debit payments) made during the payment pause beginning March 13, 2020. In order to receive your refund it is encouraged to contact your loan servicer to request that your payment be refunded.”
room as
In a recent press release The White House informed students must plan to resume payments in January 2023.
My breathing they prepare federal student loan payments in January 2023.
President Joe Biden
The people.offederalwouldannouncementthatHouseWhiteclaimsBiden’serasethestudentdebtabout20million In fact,
The memo argues, “in present circumstances, this authority could be used to effectuate a program of categorical debt cancellation directed at addressing the financial harms caused by the COVID-19 pandemic.”
President Biden sticks to campaign promise to forgive up to $20,000 in student loans
In order to benefit from the debt forgiveness borrowers will have to submit an application to verify their income. The Education Department reported nearly 8 million
Current students will only benefit from debt forgiveness if their loans originated before July 1, 2022.
to resume
A survey conducted in March by the Harvard Institute of Policy among people aged 18 to 29 revealed that 59% of respondents were in favor of some type of debt forgiveness. President Biden has already canceled about $16 billion in federal student loan debt through programs primarily targeted at borrowers with disabilities, students who were defrauded by their institutions, and people who work in public service.
/ Wednesday, September 7, 20228
borrowers already have income information on file, and should qualify to have their debts canceled automatically. The Education Department informed the application will be available in early October and will take 4-6 weeks to process.
administration is announcing a plan to give working and middle class families
President and CEO of Birling Capital Advisors, LLC. The economy must balance with other segments that have been growing steadily, such as tourism, hotels, and new nontraditional hospitality platforms.
5. Coordinate a private meeting with all CFOs and treasurers of all pharma, biotech, and medical devices companies: this meeting would be with those operating, or not, in Puerto Rico to hear from them about their needs as an industry and how Puerto Rico can help them.
• Labor Markets: the unemployment rate continues to be at historical lows; in July, it fell to 5.9%, down from 6.1% in June, a decrease of 3.27%. Total nonfarm payrolls for July rose to 917.8, up from 915.9 in June. After examining the stress testing results, it’s time to set the path toward new solutions. We have seen that Puerto Rico’s economic approach to organic and sustained growth has not materialized. While there is progress and improvements in many areas, some are now affected by new challenges. These results indicate that we do not yet have the ideal economic diversification to balance manufacturing, retail trade, or auto sales challenges. The economy must balance with other segments that have been growing steadily, such as tourism, hotels, and new nontraditional hospitality platforms.
Reducción en el ingreso por la termina ción de las ayudas relacionadas a la pande mia.Los altos niveles de inflación están afec tando a todos los consumidores, afectando sus ya ajustados presupuestos, e impacta a todos los micro y pequeñas empresas ma yoritariamente. Loscambios en la política monetaria del Banco de la Reserva Federal, el cual ya au mentó 25 puntos base, y se estima que ahora en mayo aumente otros 50 puntos base, lo que encarecerá los costos de créditos co merciales y del consumidor.
La disminución de la población de Puer to Rico es motivo de gran preocupación, ya que la tasa de mortalidad hoy día es más alta que la de natalidad. Se proyecta que la población para 2025 ronde los 3.1 millones de acuerdo con la encuesta de la Comuni dad del Censo federal.
he events that led Puerto Rico and its economy into the current economic stress test took shape sometime during early 2020, and continued through early 2022 in what we called the tremendous economic experiment, which was thrusted onto us by five extraordinary events:1.The earthquakes in the southern part of the island. 2. The COVID-19 pandemic 3. The changing of administrations from Trump to Biden 4. Biden’s $1.2 trillion COVID-19 package5.Biden’s $1.2 infrastructure bill The impact of the earthquakes and the COVID-19 pandemic provided Puerto Rico with an outsized allocation of federal funding to ensure recovery first under the Trump administration, which continued under the Biden administration. All of this without considering funds allocated for relief after Hurricane Maria. In total, the amount granted to Puerto Rico was $16.2 billion, and thus Puerto Rico’s economic progress has been nothing short of miraculous.The$16.2 billion capital infusion to the Puerto Rican economy is the largest funding allocation in history. Its impact on the local economy has become a tremendous economic experiment in its own right. As we revise the $16.2 billion disbursed in our economy, we note the main categories:
2. Attracting global banks, investment banks, asset managers, and global insurance companies: Using Act 60, many other companies can reshape their business models by exporting their services and products from Puerto Rico. There is a 4% tax rate, among other incentives, and for Puerto Rico, with such a deep talent pool in this sector, job creation can help transform Puerto Rico’s financial services.
• Economic Activity Index: went down to 1.70% in July from 2.40% in June, or 29.16% less.
de mayor importancia para el Fondo GeEstados Unidos otorgó un año de transición adicional a las empresas bajo la Ley 1542010. Dicha ley representa alrededor de $1,700 millones anuales al erario. Resulta apremiante proteger la base contributiva que representan estas empresas. La clave no es ver más impuestos; la idea debe enfocarse en migrar lo que produce el impuesto de la Ley 154 a otro tipo de impues to, que sean similares en recaudo y a la vez pueda ser acreditable por las empresas a su tributación federal; así se minimiza la pérdida de em presas y empleos. Falta consenso en materia contri butiva. La falta de establecer un sis tema holístico que alivie la política pública del gobierno en todos los te mas de índole contributivo y con la realidad económica del País, puede provocar una mayor presión inflacionaria. Riesgos que impactarán la economía:
One of the initiatives the Department of Economic Development and Commerce (DDEC, for its Spanish acronym) is implementing is their “PRopósito Initiative.” According to Secretary Manuel Cidre, “PRopósito” is an integrated collaborative project that considers past experiences from all sectors and should become a strategic framework for Puerto Rico’s economic development.
T
3. Creating a task force to visit key targets for investment: The Secretary, Invest Puerto Rico, and Discover Puerto Rico cannot do it all. To that end, Puerto Rico, thru the DDEC, can create a task force composed of dozens of experts in all areas of the economy. The task force’s responsibility would be to perform a blitz of coordinated and strategic visits every month, visiting key prospects and making pitches on behalf of the government of Puerto Rico from the private sector perspective.
4. Enhancing access to capital: The DDEC must make it one of its metrics to improve Puerto Rico’s access to capital by attracting two or more new banks to Puerto Rico.
/ Wednesday, September 7, 2022 9
• Gross Domestic Product Growth: the planning board reduced its projection to 2.10%
While this collaborative effort occurs, we must think outside the box and propose other actions to improve our economy. For a while, we have pointed toward the following initiatives:
1. De-globalization of manufacturing or reshoring: this alternative has the potential to reshape the manufacturing landscape of the island. However, it has a limited shelf life and must be chased with vigor.
The time we all have is limited, and while serving in government, that time is even more limited. Every day, week, month, and visit is precious, and we must make good use of it. For these reasons, we firmly believe that using the above mentioned strategies will allow Puerto Rico’s government resources to expand with those of the private sector, thus increasing the island’s firepower towards attracting new businesses and opportunities.
• Population Loss: Another parameter that surprised us is that the Federal Census Bureau indicated an overcount of 174,000 (5.29%), which brings Puerto Rico’s population to 3,111,874. This marks a population loss of 696,736 (18.29%) since 2000.
4.28% respec registró 28.05, y compararse con avan
La Cruz Roja Americana atiende un promedio de Tu apoyo a la Cruz Roja familias no enfrenten estas La ayuda no después de Francisco Rodríguez-Castro
• Sales Cement Bags: decreased in July to 1,166,200 from 1,251,200, a 6.79% decrease.
gobernadordescuentomillonesdeudaPedro-laAjus-reducdemillonesahorraanualdeinveraltamentePuerto Rico, cientos de implementaciónimportantesejedePuerdel(EITC)—$612diezañosingresosinfeimplemen—$1,500seisañosoporcontriaumentoAsistenciaNuaumentaaunoscovid-19,vacunaciónsinha-delosmásadministración.Tocovid-19yjustifique,ynecesariocomoungransitúaen
neral y ya el Departamento del Tesoro de
Rodríguez-FranciscoCastro >frc@birlingcapital. com Dona
• Puerto Rico Manufacturing PMI Index: went down to 51.60 from 53.60, or 3.73% less.
• Income Support $5.8 billion or 35.8%.•Loan Programs $3.2 billion or 19.7%.•State & Local Funding $4.1 billion or •25.3%.Other Uses $3.1 billion or 19.2%. The first concern is that the Puerto Rico Planning Board reduced its estimate of Gross Domestic Product for 2022 to 2.1%, or 23.8% lower than previously estimated (2.6%). The decrease is evidence that the absence of outsize federal funding is creating significant changes in the local economy, similar to the slowdown in theLet’sU.S.review some of Puerto Rico’s economic statistics:
Stress Testing Puerto Rico’s Economy
Cash at Hand—Electronic payment platforms, ATMS and banks can go out of service. Keep enough money on hand to pay for basics following the disaster.
In fact,
/ Wednesday, September 7, 202210
Inspect Your Home—Look around your home at doors, windows, potentially hazardous objects, and anything easily repairable. Address whatever you find and can fix immediately. Look for loose doors, exposed windows, and non-tempered glass windows or panels. Fix or secure everything you can. Prepare Your Car—If you own a car, keep the tank full. Set a reminder on your phone. In an emergency, a full tank of gas will get you wherever you need to go. In addition, identify a safe spot where you can park your car. Medication—If you or your family take medications, make sure you have a full week’s supply.
T
Emergency Phone Numbers— Modern times have made us drift away from it, but use pen and paper and write down your most important contacts. If your phone dies, this could come in very handy. This list will also serve as a reminder of the folks you should keep in touch with during the emergency.
E nsuring our personal strength usgovernmentbusinessesresilience,andallowsandthetoservebetter.Thefollowing weeks mark the most active part of hurricane season. At the same time, across the country, the federal government and other states are battling situations that compromise the stability of critical infrastructure throughout the country. In the state of Mississippi health concerns have compromised essentially their entire water supply. In California, triple digit temperatures are causing fires that require insane amounts of water to control. Two states, on both ends of the country are relying on their neighboring states to help. All of this occurs while hurricane season can impact the east coast, creating a need for that very resource.Whatdoes this have to do with cash or credit? Everything. Fifteen years ago, the phrase “cash or credit” literally referred to our choice of paying with cash or a credit card. Now, that means paying with cash or a smartphone, or one of so many applications and payment methods that rely on internet banking, wireless service, and general connectivity.Thesetechnologies have become so convenient that there are cities throughout the country where the questions is not whether a business accepts credit cards, but whether they’ll take your cash! Many of those businesses have backup systems that allow them to switch to cash payments. We as customers, frequently do not. Why is this an issue? Simple. We can’t rely on these services during emergencies.
Stay Tuned—Identify and follow your preferred news sources. Make sure they’re reliable and frequently updated. In addition, pick up a basic battery-powered radio.
First Aid Kit—Most of us have first aid products but may not keep them all in the same place. Look through your home and store them all together. The Red Cross and others provide recommendations of specific items to have, such as bandages, topical antibiotics and ice packs.
A system as simple as saving 50 cents daily for each person in your household means you have just over $700 dollars in cash on hand at the start of hurricane season. Given average costs, that should certainly be enough to hold over a family of four for a week, until we can reassess.
Electronics Charging Routine—Make a list of all your electronics and keep them charged. Keep back-up and disposable batteries handy as well. However, the single most important electronic device is the flashlight. Keep it handy.
Tool Kit—Just like your first aid kit, make sure your tools are organized and accessible. An all-in-one tool kit, like many retailers carry, is a good idea to keep handy.
The Storms of September
Ensuring our personal strength and resilience during an emergency means making every effort within our households to guarantee that our basic needs are met, so we don’t place an undue burden on the government and businesses.
Food—Cook what you can and use perishables first. Make sure to keep non-perishable food as well.
Eduardo Hilera, M.P.S. Emergency Management and Homeland Security Expert
Ultimately, this will allow both to continue to serve all of us in our time of So,need.the next time you’re paying somewhere and someone asks whether you’re paying cash, credit or with some other electronic format, feel free to tap your phone, your credit card, or send the funds electronically; that way you won’t touch your emergency stash when you need it.
Stay Calm—You have done the important work of getting ready. Now, the most important part is to remain calm, during and after the storm.
From gas stations to restaurants, Hurricane Maria taught Puerto Ricans that a lack of cash can complicate matters to the point where eight to ten-hour lines for a tank of gas became normal. Surely the lack of services that those businesses could not receive, went full circle to suppliers who didn’t have cash flow either.
Cash or Credit?
Eduardo Hilera, M.P.S. Emergency Management and Homeland Security Expert
he Atlantic hurricane season— the one that impacts Puerto Rico—runs from June 1 to November 30. The peak, however, occurs from midSeptember to mid-October, which has already started, folks. The hurricanes permanently recorded in our memories all made landfall in September. Hugo on September 19, 1988; Hortensia on September 10, 1996; Georges on September 21, 1998; and Maria on September 20, 2017. There is a clear trend here. Abraham Lincoln said: “If I only had one hour to chop down a tree, I would spend 45 minutes sharpening my axe.”
Damage from Hurricane Maria in Sept. 2017 >Carlos Rivera Giusti, Archive
The here.ThereSeptember21,GeorgesSeptember1988;onSeptember.allinpermanentlyhurricanesrecordedourmemoriesmadelandfallinHugoSeptember19,Hortensiaon10,1996;onSeptember1998;andMariaon20,2017.isacleartrend
Some of the most significant blackouts in our history were hurricanes Maria, Sandy, Irma, and Irene. All of these happened between 2011 and 2017, when losing power meant losing every single reliable form of payment processing, payroll processing, and inventory control. In addition, they also meant the banking industry’s customer-level operations became limited, thus limiting their services to individual customers.Thatiswhy a personal cash stash is one of the most important resources during an emergency. Cash is a full tank of gas, or the difference between being able to pay for dinner or not. It also means that you are supporting businesses in ensuring that they can meet their payroll, even when they don’t have an electronic system to do so. Considering the scenarios that we have all lived through in the past five years, from hurricanes to earthquakes and a pandemic, being prepared is important.
/ Wednesday, September 8, 202112 XXXXX XXXXXX
Some of the most significant blackouts in our history were hurricanes Maria, Sandy, Irma, and Irene… losing power meant losing every single reliable form of payment processing, payroll processing, and control.inventory Eduardo Hilera, M.P.S.
Applying Honest Abe’s wise logic to hurricane season, we should do everything possible to get ready before a disaster. All it takes to get ready is a little creativity, logic and a few bucks. Being prepared makes our communities more resilient. The most basic emergency management concept is planning. Emergency managers agree that the first 72 hours after a disaster are crucial— it takes that long for help from first responders to reach those in need. In the spirit of planning, below is a checklist of the steps we can all take to be prepared for those first 72 hours. It doesn’t involve sophisticated equipment, just a few things we can do by ourselves.
Water—Keep enough drinking water to keep your family hydrated for 72 hours. In addition, keep containers full of tap water for basic household needs.
Conserve un suministro de medicamentos recetados y no recetados para un mes. Debe conservar solo los medicamentos recetados para tres días.
Si ha desalojado su hogar, regrese 24 horas luego del paso del desastre.
Rompe los mitos asociados a la preparación. Accede cruzrojapr.net para conocer las realidades sobre preparación ante desastres. Prepárate hoy.
Si ha desalojado su hogar, regrese solo cuando las autoridades indiquen que es seguro.
Mitos: Realidades:
Los adultos mayores deben contar con personas de su confianza que puedan verificar si se encuentran bien y que puedan asistirlo de ser necesario. Los adultos mayores no requieren de apoyo adicional durante la preparación ante desastres y emergencias.
Cada miembro de la familia debe tener su mochila de emergencia. La mochila de emergencia debe ser una por familia.
11 < 20227,SeptemberWednesday,>JournalWeeklyThe
Manuel Quilichini, Lawyer cannot repeat the mistakes of past privatization efforts. Contractors must be held accountable to reasonable but firm compliance standards, and their track record (failures and successes) must be published periodically. At the end of the day, the best overseer of their performance is a wellinformed citizen.
On August 24th, we witnessed the most recent dog and pony show put on by LUMA, undoubtedly at the behest of the Government of Puerto Rico. Seeking to be in the citizens’ good graces, we saw the top executive of LUMA perform a mea culpa and seek our indulgence with a promise the company would amend its ways. Unfortunately, this press conference reminded me of a battered wife listening to the empty promises of her spouse assuring he would change and stop abusing her, only to abuse her again. We must go back in time to understand what made this parade of excuses necessary. The Government, in its infinite wisdom, decided that PREPA needed to be divvied up and privatized so that we could have a better electrical system, a lofty goal after the disastrous aftermath of Hurricane María.
Canceling LUMA’s contract is not as easy as many think. The agreement includes a convoluted and lengthy process to cure any noncompliance by LUMA. In lay terms, even if they breach the contract terms, kicking them out may take some considerable time, all the while charging us millions of dollars in the process. And what about LUMA’s replacement? I don’t think that reconstituting PREPA is an option.
Then, what should we do? I do not have the slightest clue on what would be the appropriate course of action at this moment. I can only point out that, no matter what is done, we
LUMA’s press conference sought to assuage the public’s wrath with apologies and excuses, merely offering general ideas without a detailed action plan, thus feeding our incredulity. However, we cannot blame LUMA for its attitude. After all, they want to make as much money as possible by spending very little on resolving Puerto Rico’s electrical problem.
The fault lies with the government’s failure to contractually protect its citizens when it decided to have the fox guard the henhouse.
The Public-Private Partnership Authority (PPPA) took over the task of meeting, selecting and hiring the now notorious LUMA to take over the electrical distribution system. After a disastrous year of operations, plagued by constant and widespread power outages, a fed-up governor joined the chorus of critics that from day one called for action against LUMA’s evident negligence and indifference.
Puerto Rico’s latest dog and pony show
/ Wednesday, September 7, 202212 opinion
The fault lies with the government’s failure to contractually protect its citizens when it decided to have the fox guard the henhouse or, as we say in Puerto Rico, “poner las cabras a velar las lechugas.” Contracting for the privatization of an essential public service is not a task to be taken lightly, nor do you put novices to face the considerable business expertise of a large corporate conglomerate. It will eat you alive, as it happened with LUMA. Before even considering whom to choose, the PPPA should have defined the applicable performance indicators and metrics that would rule to the operation. These indicators must include measurements for customer satisfaction and engagement, service reliability (including outage analysis), and employee safety, among others. Had we had them in place, we could have avoided LUMA’s hollow apologies.
Remember, its management had the dubious honor of bankrupting a monopoly!!! Another option could be to bring in another operator. But that could take us out of the frying pan and into the fire, especially if we do not learn from past experiences. Finding a qualified operator on short notice and using the same contracting process as the one used with LUMA would only substitute one deficient company for another.
Earl C. ‘Duke’ Austin, president and CEO of Quanta Services, one of LUMA Energy’s parent companies.
Games Commission to increase gambling venues in Puerto Rico
At the moment there are 16 legal casinos in Puerto Rico, however, the number will be rising to 20, pending construction of four new projects. “We are pleased to contribute to the growth of tourism activity and the economy. The casinos we endorse and control have become throughthetheirgeneratorstheentertainmentpublic-privilegedcenters.Withintourismsector,theyaregreatofemploymentandoperationswillalsoallowgovernmenttoraiseincometaxes,”OrlandoRivera,executive director of the Games Commission explained. Casinos on the island, according to data from the gaming division of the Hotel and Tourism Association (HTA), generates some $300 million annually, and over 3,000 direct jobs. Notably, Puerto Rico’s Department of the Treasury receives more than 50% of the profits generated by slot machines. From that 50% the money is then distributed between the government’s General Fund, the Puerto Rico Tourism Company and the University of Puerto Rico.
So far, the Gaming Commission has granted licenses to 110 operators for a total of 25,000 machines. However, the Commission presented a study that estimates there are about 80,000 machines operating illegally, which do not generate income for the Treasury.
Miguel Vega, president of the casino sector of the HTA, is quick to “welcome everything that represents economic development and job creation”. However, he did raised caution on the need for potential casinos to demonstrate a fair balance between supply and demand in order to prevent saturation of the market. “The important thing is to achieve a balance, so that all casinos can be successful. This is done by taking into consideration the capacity and the areas where more games rooms would be added. We cannot forget that other game modalities have already been approved, so we have to be careful not to saturate the regions,” Vega explained.
P
However, the Gaming Commission clarified that they did not intend to double the number of existing machines, but to connect the maximum number of machines that the current law allows (45,000).
Aponte pointed to a study carried out by the firm Spectrum, which states that with the elimination of all illegal machines the government could obtain an additional $171.7 million in revenues.Thosein opposition of gambling in Puerto Rico are convinced that where there is legal gambling, illegal gambling is sure to follow.
Miguel presidentVega,Casino Sector of HTA
Push Back However there has been opposition for the continued growth of gambling on the island. A proposal was presented to the Gambling Commission to double the number of gambling machines in Puerto Rico from 25,000 to 50,000, and was rejected by legislator José Aponte, who fears Puerto Rico could be on its way to turning into a giant casino. Aponte considers people could be coerced into some sort of gambling addiction.
/ Wednesday, September 7, 2022 13
uerto Rico is a destination known for its beautiful beaches and lively culture but there are those who see another potential draw to the island: gambling. In Puerto2019,Rico legalized sports betting, adding another entrée to its gambling menu.
toAccordingdatafrom the gaming division of the Hotel and Tourism Association (HTA), 3,000annually,$300generatesgamblingsomemillionandoverdirectjobs.
The lawmaker brought up a study conducted by the National Coalition Against Legalized Gambling, which estimates that each compulsive gambler in the U.S. loses between $14,006 and $22, 077 per year.
Increasing the number of slot machines also being considered Madison Choudhry, Special to The Weekly Journal
In fact, The important thing is to achieve a balance, so that all casinos can be successful.
New apostolic constitution allows lay people, including women, to head important Vatican offices
The reforms also lend more institutional weight to efforts to fight clerical sex abuse. The document, made public earlier this year, replaced the constitution written by St. John Paul II in 1988.
On Monday last week, a half-dozen female activists protested as cardinals, with their iconic red headgear, flocked to the meeting on Vatican grounds. The women held up red parasols with slogans reading, “Sexism is a Cardinal Sin.” Other slogans were: “It’s reigning men” and “Ordain Women.”Oneprotester, Miriam Duignan, lamented that the cardinals were “going to talk about the future of the church without half of the church.”
P
>(AP Photo/Andrew Medichini)
In fact, Pope Francis urged the cardinals, known as the “princes of the church,” to be on guard against the “cancer, the woodworm, of worldly spirituality.”
/ Wednesday, September 7, 202214
The sessions focused on a new apostolic constitution that, among other things, allows lay people to head important Vatican offices, envisioning greater decision-making roles for them, including women. But since the church has closed the door to women in the priesthood, the most prestigious, and ultimately most powerful roles – including that of a pontiff – remain the realm of men.
Francis has worked to reform the Holy See’s finances, including its multimillion-dollar investments, one of which is at the heart of a trial underway at the Holy See and involving, among others, a Vatican cardinal.
Pope Francis prepares to celebrate a mass for the newly elected cardinals in St. Peter’s Basilica at The Vatican.
Frances D’emilio – The Associated Press Francis has tried to make the church more inviting to those who might feel includingundervalued,Catholics,includingunwelcome,LGBTQorwomen.
While in Rome these days, cardinals from around the world could size each other up. Encounters, including informal ones, allow them to see who might have the potential to become a future pope as well as to ponder possible alliances among geographical groupings or among like-minded churchmen from more conservative or more progressive factions. The Vatican said among themes discussed were the role of lay persons, financial transparency, the managerial structure of the Vatican bureaucracy as well as how to “announce the Gospel in an epoch like the current one.”
Pope meets with cardinals on future direction of church
ope Francis wrapped recently two days of closed-door meetings with about 180 cardinals, many of them young enough to elect a future pontiff, including discussions about how the Catholic Church’s governance could be made more inclusive.
On Saturday, August 24th, Francis raised 20 churchmen to the rank of cardinal, including 16 younger than 80 and thus eligible to vote in a conclave to elect his successor, when the time comes. Until Pope Benedict XVI resigned in 2013, the first pontiff in almost 600 years to do so, conclaves in recent centuries had followed the death of popes. Francis, who is 85, has said that resignation can be a valid option for pontiffs who can’t adequately carry out their role as leader of the world’s more than 1.3 billion Catholics. But he has brushed off talk that he is contemplating stepping down soon despite health problems, including a bad knee that necessitates frequent wheelchair use. In his homily at a Mass in St. Peter’s Basilica to close out the meetings, Francis offered no details about this week’s discussions. But he exhorted the cardinals, known as the “princes of the church,” to be on guard against the “cancer, the woodworm, of worldly spirituality.”
Francis has tried to make the church more inviting to those who might feel unwelcome, including LGBTQ Catholics, or undervalued, including women.
“They are more engaged in more ways than people give them credit for,” said Michael Bolden, CEO and executive director of the American Press Institute.Anestimated 71% of this age group gets news daily from social media. The social media diet is becoming more varied; Facebook doesn’t dominate the way it used to. About a third or more get news each day from YouTube and Instagram, and about a quarter or more from TikTok, Snapchat and Twitter. Now, 40% say they get news from Facebook daily, compared with 57% of millennials who said that in a 2015 Media Insight Project survey. Yet 45% also said they get news each day from traditional sources, like television or radio stations, newspapers and news websites.
In
Michael Bolden, CEO American Press Institute
The report pokes holes in the idea that young people aren’t interested in news, a perception largely driven by statistics showing older audiences for television news and newspapers.
“I wasn’t surprised by that,” Bolden said. “It has been a challenging news cycle, especially the last threeAboutyears.”9in 10 young people say misinformation about issues and events is a problem, including about 6 in 10 who say it’s a major problem. Most say they’ve been exposed to misinformation themselves.Askedwho they consider most responsible for its spread, young people pointed to social media companies and users, politicians and the media in equalThatmeasure.maysurprise people in the media who believe they are fighting misinformation, and are not part of the problem, Bolden said. A significant number of people disagree. “Whether that’s accurate or not, the people in this business have to deal with that perception,” he said.
/ Wednesday, September 7, 2022 15
David Bauder – The Associated Press
The topics people ages 16 to 40 say they most follow in the news? Celebrities, music and entertainment, at 49%, and food and cooking, at 48%, top the list. At least a third follow a wide range of other issues, including health and fitness, race and social justice, the environment, health care, education, politics and sports.
The margin of sampling error for all respondents is plus or minus 1.7 percentage points. The AmeriSpeak panel is recruited randomly using address-based sampling methods, and respondents later were interviewed online or by phone.
The poll found that about a quarter of young people say they regularly pay for at least one news product, like print or digital magazines or newspapers, and a similar percentage have donated to at least one nonprofit news organization. Only 32% say they enjoy following the news. That’s a marked decrease from seven years ago, when 53% of millennials said that. Fewer young people now say they enjoy talking with family and friends about the news.
Other findings, such as people who say they feel worse the longer they spend online or who set time limits on their consumption, point to a weariness with the news, said Tom Rosenstiel, a University of Maryland journalism professor.
Survey finds young people follow news, but without much joy Report discredits the idea that young people aren’t interested in news
About a third or more get news each day from YouTube and Instagram, and about a quarter or more from TikTok, Snapchat and Twitter. fact, They are more engaged in more ways than people give them credit for.
oung people are following the news but aren’t too happy with what they’re seeing. Broadly speaking, that’s the conclusion of a study released last week showing 79% of young Americans say they get news daily. The survey of young people ages 16 to 40 –the older of which are known as millennials and the younger Generation Z – was conducted by Media Insight Project, a collaboration between The Associated Press-NORC Center for Public Affairs Research and the American Press Institute.
“There are people who have grown up in this world of political food-fight media, and this is the only world they know,” said Rosenstiel, who worked on the survey as Bolden’s predecessor at the press institute. “They might have heard their parents talk about Walter Cronkite, but they haven’t seen that.”
The AP-NORC poll of 5,975 Americans ages 16-40 was conducted May 18-June 8, using a combined sample of interviews from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population, and interviews from opt-in online panels.
He suggested that it’s important for news organizations to better explain what it is that they do and how coverage decisions are made, along with taking a step back to make clear how government functions, as well as holding leaders to Theaccount.percentage of people who say “news stories that seem to mostly create conflict rather than help address it” and “media outlets that pass on conspiracy theories and unsubstantiated rumors” are a major problem exceeded the number of people concerned about journalists putting too much opinion in their stories, the survey found. That would seem to point a finger at cable news outlets that fill air time with debates on particular issues, often pitting people with extreme points of view. New CNN chief executive Chris Licht has recently called on his network to cool the overheated segments.
Y
WeeklyJournalThe Constant updates online 24/7. TheWeeklyJournal.com Visit us for updated content on our 24/7 platform.
