The Weekly Journal - Wednesday, September 22, 2021

Puerto Rico and the Caribbean

www.theweeklyjournal.com

>Brandon Cruz González

Wednesday, September 22-28, 2021 - // no. 126

Continuing controversy on pension cuts P6 Puerto Rico’s Three Systemic Shocks P7 Million-Dollar Economic Impact of ‘The Plane’ P10

It’s a Long, Long Road to Recovery Four years after Hurricane Maria, 95 percent of reconstruction projects are unfinished

T Rosario Fajardo

Shining Stars of Fashion Designers of LatAm P14/15

rfajardo@wjournalpr.com

@RosarioWJournal

here’s no getting around it. While much progress has been achieved, especially since former President Trump left office and President Joe Biden took the oath of office on Jan. 20 of this year, Puerto Rico’s full recovery from the onslaught of Hurricane Maria four years ago remains an unfulfilled promise.

Bureaucratic mazes, technical “misunderstandings” with federal officials, and a lack of needed professional

staff are just some of the hurdles that Puerto Rico government officials must jump in order to push forward the thousands of permanent projects that must be undertaken after Maria’s devastation on Sept. 20, 2017.

According to FEMA, 76 percent of the needed reconstruction projects on the island have allocations from the federal agency. That’s the good news.

However, four years after Maria, about 95 percent of these projects remain unfinished, GO TO PAGE 4

The Weekly Journal > Wednesday, September 22, 2021 > 2

3

/ Wednesday, September 22, 2021

a week in review Hacienda: Link to Request Premium Pay is Now Available

>Archive

>Archive

The Puerto Rico Treasury Department (Hacienda) announced that employers of specific industries in the private sector can now access the link in their SURI accounts to request the payment of additional compensation, known as Premium Pay, for employees who meet the eligibility requirements.

Employers related to security services, health services, grocery stores, pharmacies and cargo transportation can now request additional compensation for their employees. The Premium Pay payment will be $2,000 and are part of the State and Local Coronavirus Fiscal Recovery Fund of the ARPA Act of 2021.

EcoExploratorio Receives $16M from U.S. Economic Development Administration

Puerto Rico to Get $2.9 Billion Next Fiscal Year for Medicaid

The U.S. Commerce Department announced it is awarding a $16 million grant to EcoExploratorio in San Juan to construct a disaster preparedness, recovery education and training center to ensure continuity of operations during natural disasters. The U.S. Economic Development Administration grant will be matched with $4 million in local investment. The 60,000-square foot, multi-purpose structure will provide local businesses with offices, a reference center, cafeteria and other services for continuity of operations during natural disasters.

Resident Commissioner Jenniffer González said the funds Puerto Rico needs next fiscal year for the U.S. Medicaid health program are assured.

This is a total of $2.9 billion, according to the U.S. Department of Health.

“Federal Health has informed us that Puerto Rico is no longer at risk of losing Medicaid funds, securing $2.9 billion for the next fiscal year,” she said. This is good news for the more than 1.5 million beneficiaries of the local government’s insurance program for the medically indigent, known as Mi Salud, or the Health Card.

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

President Salvador Hasbún shasbun@elvocero.com Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

VP of Production Eligio Dekony edekony@elvocero.com

Traffic Director Ilia M. Pérez Centeno iperez@elvocero.com

Managing Editor Rosario Fajardo rfajardo@wjournal.com

Multi-Platform Graphic and Technology Director Héctor L. Vázquez hvazquez@elvocero.com

Phone: 787-622-2300, 787-721-2300

Multi-Plataform Digital Director María Arce marce@elvocero.com

Customer Service: 787-622-7480

4

/ Wednesday, September 22, 2021

CONTINUED FROM PAGE 1 according to data from Puerto Rico’s Central Office of Recovery, Reconstruction and Resiliency (COR3).

That’s the bad news.

Of the total 6,616 permanent works projects that are pending under the public assistance program — which are funds for works requested by government agencies, municipalities, public corporations and nonprofit entities — only 328 have been completed in four years. This means that less than 5 percent have been completed so far, and 95 percent remain unfinished.

“I am not satisfied. There is no way one can be satisfied with that reality. However, I am very optimistic and I trust the strategies that we are working on. I trust the strategies that many of the municipalities have, and many of the agencies as well. I trust the close collaboration we are having with FEMA and I believe that the plans we have today are going to result… that starting this year — but more for 2022 — we will finally be able to see a significant number of projects,” stated COR3 Executive Director Manuel Laboy Rivera during a roundtable discussion with reporters.

“It would have been better if I started earlier, years, all the blue tarps will have been replaced definitely. But I want to be fair and the homes repaired. “I am too. Puerto Rico experienced going to set that goal for myself. a [political] crisis in 2019, the I have to admit that it is not so earthquakes came [in early 2020], simple [to achieve] for that date, then the COVID-19 pandemic but I think it is a good goal to say came [in March 2020], and there that by the middle of this fourAccording to was a change of government, and year term, we will no longer be FEMA, 76 percent all that has its effect,” he added. talking about blue tarps,” he said. of the needed “We are implementing diverse In his activity, Pierluisi reconstruction initiatives like the State Cost announced the allocation of $20 projects on the Share Fund of $750 million, we million from the American Rescue island have simplified the funds disbursement Plan (ARPA) for the second phase allocations from process and we are working of the Office for Socioeconomic the federal agency. alongside FEMA to address and Community Development’s That’s the good the sub-recipients’ doubts and blue tarps roof repair and news. However, facilitate the infrastructure rehabilitation program. four years after renovation process,” Laboy said.

These funds will be used to Hurricane Maria, Of the 6,616 projects on the repair or replace deteriorated about 95 percent list for permanent works, there roofs that pose a serious threat of these projects are 1,044 with the funds required to the health, safety and wellremain unfinished, under the federal government’s being of the families that reside according to data 406 format, which implies in said structures.

In addition, from Puerto Rico’s reconstruction similar to how the program will provide the COR3. That’s the bad the infrastructure was before necessary resources to bring news. the hurricane. There are another residences up to building codes, 1,960 projects with the funds address electrical or plumbing required, to be built better than issues, improve energy efficiency, before, and these are called 428 and perform other home repairs projects. Each format has different requirements, that eliminate health and safety hazards. which also complicates the picture.

At the same time, COR3 estimates that there are FEMA’s Response still between 15,000 and 18,000 homes with blue For its part, FEMA said the federal agency has tarps around the island, many of which are being allocated more than $25 billion corresponding to rebuilt through “informal construction.”

8,460 projects in Puerto Rico, which helps boost In general, the effort includes seeking to the growth of the construction industry on the strengthen structures beyond what they were island and helps reactivate the local economy. before Maria and address some of the major risks To date, close to 2,000 projects have been associated with climate change. completed or are under construction with the

In fact,

No More Blue Tarps

In another press conference, Gov. Pedro Pierluisi said his goal is that by the end of next

help of FEMA funds. These projects, which include roads, public service buildings and recreational facilities represent an injection of over $44 million.

“The recovery’s rhythm accelerates when

working in unison with the municipalities, the state government and COR3. All the elements that are part of this historic moment for the island play an essential part for this recovery to be a successful.

This past year we allocated funds for a record number of projects and we trust that the recovery will continue moving in that direction,” said Federal Disaster Recovery Coordinator, José G. Baquero.

Economic Revitalization

The economic injection on the island after Maria is one without comparison, according to Alba Brugueras Fabre, a former president of the Puerto Rico Association of Economists. She mentioned that no other disaster-related federal aid for the island matches the significance of FEMA’s multimillion-dollar investment on the island. “There is an impact that goes beyond the present, because as these projects are completed, we will see more changes in our country,” Brugueras said.

She highlighted that the effect of the funds will be multi-sectoral, including the banking, housing market and construction sectors.

The president of the Puerto Rico Chapter of the Associated General Contractors of America, Umberto J. Donato Solís, concurred with this assessment. The architect explained that the multiplier effect of the recovery funds opens the door for the development of the local economy that transcends the construction sector. He also mentioned that the “true opportunity of rebuilding falls on the sustainable growth of Puerto Rico as a result of the capital resources resulting from the recovery.”

FEMA Details Work Progress

At the municipal level, the total of funds allocated represents access to $1.9 billion for permanent works in order to have strengthened and more resilient structures against future disasters.

According to Baquero, one of the areas where the reconstruction activity is most visible are parks,

/ Wednesday, September 22, 2021

5

This past year we allocated funds for a record number of projects and we trust that the recovery will continue moving in that direction.

- Federal Disaster Recovery Coordinator José G. Baquero

community centers and community recreational places in local neighborhoods. “These facilities are part of the residents’ lifestyle and are the cornerstone of the neighborhoods. That was the feeling at the Juan F. “Cheo” López Baseball Park in Camuy, where the town’s AA baseball fans recently gathered for the first night game in four years, thanks to FEMA funding.

“Likewise, today, more than 1,000 families from Hormigueros and Aibonito can now enjoy repaired basketball courts with an allocation of over $2.2 million. This results in the broadening of the activities offered for the community’s well-being,” stated Baquero about the repairs to parks and recreational facilities that reach $816 million in funding.

FEMA officials also stressed that about 84 percent of reconstruction projects are focused on resiliency in the face of climate change. For example, planting grass to protect the slope in

various streets of the Playa Añasco neighborhood is a way of addressing the problem of land erosion.

To this end, an allocation of about $2.4 million from FEMA supports the island’s road safety.

In addition, some $93.2 million through the Hazard Mitigation Grant Program (HMGP) is

intended to strengthen the structures that were not damaged by the hurricane. With the threat of climate change effects, these funds add longterm value and resilience. To date, the projects approved by HMGP have an estimated cost of $1.3 billion.

6

/ Wednesday, September 22, 2021

Gov. Pedro Pierluisi, far right, participates in the FOMB’s most recent public meeting in San Juan. >Carlos Rivera Giusti

FOMB: Pension Cuts in Plan of Adjustment Will Stay in Place

Pierluisi vows to continue fighting against it

T

THE WEEKLY JOURNAL Staff

he proposed Plan of Adjustment (POA), which includes the annual payment obligations that the government of Puerto Rico must make to creditors, and includes cuts in public pensions, could be approved in early October, according to the optimistic expectations of the Financial Oversight and Management Board (FOMB), as the entity continues to negotiate with Gov. Pedro Pierluisi and the Legislature.

Overall, the plan seeks to restructure the $35 billion of the government’s debt, as well as other claims against it, including the Public Employees Retirement System and the Public Buildings Authority.

David Skeel, chairman of the FOMB, explained to EL VOCERO, the sister publication of THE WEEKLY JOURNAL, that the document under discussion contemplates reducing that debt to $7.4 billion, with the government issuing annual debt payments of $1.5 billion. “It is a dramatic restructuring looking forward and it is sustainable for Puerto Rico,” he said.

However, the POA must be approved by Chief U.S. District Court Judge Laura Taylor Swain, who is overseeing the Puerto Rico government’s bankruptcy procedures. At the same time, the Legislature must pass a measure authorizing the

Pierluisi assured that he favors the POA, but not “new” debt of $7.4 billion, since creditors and the pension cuts, as he anticipated that he would public retirees must vote on or before October 4 fight this issue in Federal Court, where the POA on whether they support the POA. must be validated and approved.

According to Skeel, there are already “For me, it is as if it were an ideological cause agreements with a large part of those involved, that does not make sense to include in the while those in the government “everyone adjustment plan,” Pierluisi said during the meeting. understands that now is the time to come out of “I reiterate that my administration is clear that this bankruptcy.” adjustment plan is excellent for The Plan of Adjustment Puerto Rico. I will be exhorting for the central government the Legislative Assembly to is the largest part of Puerto approve legislation so that the Rico’s debt restructuring, with broadcast that needs to be about $35 billion in claims by broadcast can be issued.” bondholders and creditors, He added that he will go to and more than $55 billion in The Plan of Adjustment court to oppose the pension pension liabilities. The POA for the central governcuts.

“I am going to oppose includes an 8.5 percent cut to ment is the largest part any project that wants to cut public pensions of $1,500 or of Puerto Rico’s debt pensions and the government is more each month. restructuring, with $35 going to maintain its objection Meanwhile, during a billion in claims by bondto that part of the plan before recent public meeting, the holders and creditors, Judge Swain because I hope FOMB presented its Plan of and $55 billion in penthat the judge, in her sense of Adjustment and touted its sion liabilities. The POA benefits for Puerto Rico. The justice and sensitivity to this includes an 8.5 percent vulnerable population of the FOMB unanimously approved cut to public pensions people of Puerto Rico, does not the POA during the meeting of $1,500 or more each give way to those unnecessary held at the Convention Center, month. pension cuts.” as they assured that their main Skeel said the cuts are goal is for Puerto Rico to get necessary and blamed out of bankruptcy and return to it on decisions by past economic growth, at which time administrations that did not inject the needed the departure of the federal entity would occur. funds to pay pensions. “The plan protects The governor reaffirmed he is against the pensions. Before Promesa, there was a risk that pension cuts and accused the board of having an “ideological cause” against pensions which, he said, retirees would lose their pensions. [With the POA], 72 percent of retirees will not have any cuts to would not represent a significant portion of the their pensions,” Skeel noted. government’s budget.

In fact,

/ Wednesday, September 22, 2021

7

Puerto Rico’s Economy During the Pandemic and Post-Maria

CNE: The impact of three systemic shocks on Puerto Rico and its economy The Weekly Journal Staff

P

Editor’s note: The first article in a two-part series uerto Rico’s short-term economic performance is overshadowed by a large cloud of uncertainty, as the island’s government concurrently addresses the impacts of three systemic shocks: the COVID-19 pandemic, Hurricane Maria of 2017, and the bankruptcy of the central government, according to Sergio Marxuach, Center for a New Economy’s (CNE) Policy director and editor of the think tank’s publication: The CNE Review.

In the analysis released by the specialized newsletter Marxuach emphasized that each of these processes generates its own set of risks, which oftentimes can interact in complex ways.

“For example, the implementation of fiscal measures to balance the budget could affect the capacity of the state to manage complex projects, while supply chain bottlenecks and inflation due to the COVID-19 pandemic may delay Hurricane Maria’s reconstruction efforts,” he said.

At a deeper level, however, the analysis concludes that “it is worrisome that economic growth in the short term depends mostly on receiving federal transfers that we do not control.

We worry that these expenditures will have a temporary positive impact on the economy that may set back efforts to develop a medium/longterm economic strategy or plan for Puerto Rico.”

Marxuach added that it’s important to avoid that trap and stay focused on addressing the structural factors that are the root cause of Puerto Rico’s long-term economic stagnation.

The Three Systemic Shocks

The COVID-19 pandemic, which has adversely affected economic activity since the spring of 2020, is still an ongoing, developing event. We really don’t know what the recovery from a global pandemic looks like, how long it will take, or which long-term structural shifts will flow from it. “In the short term, the COVID-19 pandemic is the most significant source of economic risk and uncertainty. Eventually, though, we can expect

The CNE’s Sergio Marxuach >Courtesy

the COVID-19 virus to reach a sort of equilibrium with its human hosts. Until then, we will continue to see significant economic disruptions, recurring demand-supply imbalances, and periodic shipping logjams, with many governments continuously tightening and loosening restrictions on business and economic activity as the virus continues to wax and wane in accordance with its own evolutionary logic,” Marxuach said.

Four years after Hurricane Maria wreaked havoc on the island and generated some $90 billion in damages, the pace of reconstruction remains slow — while Congress has allocated $64 billion for disaster relief and recovery operations in the island, as of June 30, 2021, only $18.6 billion, or about 29 percent, has been spent. “Furthermore, some of the most important work — refurbishing and modernizing the electric grid; rebuilding

schools, housing, roads, bridges, and healthcare facilities; and undertaking mitigation activities to increase resiliency and reduce the risk exposure of vulnerable populations — has not yet begun,” Marxuach explained.

The main risk regarding the Maria reconstruction could be the creation of a false sense of complacency as the economy begins to grow when the federal money starts to flow. It would be a mistake to believe that our economic problems will be over once the disbursement of federal reconstruction funding begins in earnest for at least two reasons, he noted.

First, all that economic activity will be financed with federal funds transferred to Puerto Rico’s government instead of locally generated resources. It may be easy to forget that once the good times are rolling and erroneously believe the reconstruction is driven by the strengthening of the Puerto Rican economy, when in fact it is powered by congressional largesse. Second, the reconstruction process, by its nature, is designed to rebuild and repair what was damaged or destroyed by Maria. In that sense, its main objective is to restore Puerto Rico’s capital endowment to its pre-hurricane state. The reconstruction of damaged or lost assets does not constitute a net addition to the island’s long-term productive capacity.

Finally, the government of Puerto Rico is entering a critical phase of its debt restructuring process as ballots will be soon sent to creditors so they can vote on the Plan of Adjustment (POA) negotiated by the Financial Oversight and Management Board. “The POA has, among other things, to be in compliance with the Fiscal Plan for the central government and be found by the court to be feasible and in the best interests of the creditors. If certified by the court, Puerto Rico’s bankruptcy will be officially over and the POA will govern Puerto Rico’s fiscal policy for the next 25 years,” Marxuach added.

8

/ Wednesday, September 22, 2021

From Surviving to Thriving The link between entrepreneurship and economic resilience Rosario Fajardo

E

rfajardo@wjournal.com

@RosarioWJournal

ntrepreneurship is an integral part of the economic resilience of communities, regions and local economies. But for entrepreneurs to succeed, they need a support network to aid their growth.

However, since each jurisdiction is unique, entrepreneurial ecosystems are not replicable, which is why we must examine Puerto Rico’s unique geographical, political and socioeconomic context to properly aid emerging businesses, according to a new report by the Foundation for Puerto Rico.

The island’s long economic recession, dating back to 2006, compounded with the calamities of the hurricanes, earthquakes and the COVID-19 pandemic, has forced entrepreneurs on the island into an endless cycle of disaster recovery. “If the goal is to improve resilience at the regional level, strongly connected entrepreneurial ecosystems are needed to develop the capabilities necessary to overcome barriers to more successful innovationdriven enterprises,” stated Foundation for Puerto The renovated Guajataca Tunnel in Isabela has become a popular tourist attraction with the opening of 28 local Rico Program Manager Anneliz Oliver. businesses. >Courtesy of Discover Puerto Rico But how do we go from a constant survival mode to a thriving entrepreneurial ecosystem For these companies to grow and thrive, the business to adjust to new circumstances and use that does not depend on reactive measures to island needs a well-functioning entrepreneurial innovation to achieve sustainability in the long flourish? To this end, Foundation for Puerto Rico’s ecosystem that includes several elements, term. newly released “From Surviving to Thriving: A according to the report. These include networks “For Puerto Rican entrepreneurship, most case study on Puerto Rican of support organizations; strong market potential efforts and support programs entrepreneurship,” provides with distribution channels; skilled talent; access are concentrated in the entrepreneurship support to capital; improved ease of doing business; a metropolitan area which organizations an overview of culture that supports entrepreneurship; and a comprises the capital of Puerto Rico’s entrepreneurial reliable infrastructure of electricity, roads and San Juan and neighboring ecosystem, the importance of broadband. municipalities. This means that well-connected networks to For example, as part of its efforts to help aspiring entrepreneurs in rural According to 2019 aid in the development of new entrepreneurs who are not in the San Juan area, and historically underserved data from the U.S. ventures, and a toolkit to better Foundation for Puerto Rico has awarded $80,000 communities are often Census Bureau, serve entrepreneurs in the in grants to 22 businesses in the southern area, overlooked and are put at a Puerto Rico has an wake of disasters and beyond. which included restaurants, retail stores and disadvantage. estimated 44,000 One key activity that can supermarkets, specifically in the urban center of “Leveling the playing field to micro, small, midsize contribute to the resilience of a close the gaps in access is key. If Ponce and the boardwalk area of Guánica. and large businesses. community is entrepreneurship, Recipients received financial grants of between the goal is to enhance resilience according to the 56-page $1,000 and $7,500 that could meet short-term at the regional level, strongly document. Resilience is access to capital needs or help them improve the connected entrepreneurial particularly important for resilience of their facilities in response to natural ecosystems are needed to entrepreneurs because of two reasons: First, disasters. develop the capabilities required to overcome when seen as the entrepreneur’s preparedness, barriers and see more successful and innovationMeanwhile, Foundation for Puerto Rico has persistence and self-efficacy, resilience can inform driven ventures,” as per the report. helped renovate the Guajataca Tunnel in Isabela why some businesses perform better than others.

According to 2019 data from the U.S. Census with a $10,000 grant, and the area has now Second, the psychological and behavioral traits Bureau, Puerto Rico has an estimated 44,000 become a popular tourist attraction with the around resilience can increase the ability of a micro, small, midsize and large businesses. opening of 28 local businesses.

In fact,

/ Wednesday, September 22, 2021

9

U.S. SBA Chief Visits Puerto Rico, Spotlights COVID Economic Recovery Two Women Business Centers established on the island

I

Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

sabella Casillas Guzmán, the administrator of the U.S. Small Business Administration (SBA) and a member of President Biden’s cabinet, made her first official visit to Puerto Rico, engaging with government officials, small business owners, community organizations and business development centers to spotlight the island’s economic recovery from the coronavirus pandemic.

During her visit, Guzmán met with Gov. Pedro R. Pierluisi and Economic Development Secretary Manuel Cidre Miranda at La Fortaleza, as well as San Juan Mayor Miguel Romero Lugo.

After visiting a Shuttered Venue Operators Grant awardee, Museo de Arte de Puerto Rico, she also met with natural disaster-impacted small business owners; toured Parallel18, a nonprofit organization that assists small businesses start and grow on the island; and discussed government contracting opportunities with government contractors and 8(a) small disadvantaged businesses.

“I was inspired to learn from small business owners in Puerto Rico how they tapped into SBA programs to pivot, continue operations and survive during the COVID pandemic. As entrepreneurs faced COVID-19 induced uncertainty, public health restrictions and hardship, our federal agency has delivered over $4.5 billion to Puerto Rico small businesses so far, with more on the way,” Guzmán said.

A native of California, Guzmán was a small business entrepreneur herself, before entering politics. She previously served as Director of the California Office of the Small Business Advocate,

Isabella Casillas Guzmán, the administrator of the U.S. Small Business Administration >Courtesy

a position she held after being appointed by California Gov. Gavin Newsom in April 2019. She also held leadership positions at the SBA’s main offices in Washington, D.C. during the ObamaBiden Administration.

While on the island, Guzmán also addressed the San Juan Economic Development Forum, participated in an Equity Roundtable, and announced the launch of two new Women’s Business Centers (WBC) in Puerto Rico to ensure female entrepreneurs have equitable access to resources as their male counterparts.

The two Women’s Business Centers are sponsored by Ana G. Méndez University, Gurabo Campus and Friends of Puerto Rico. The two

centers will receive an annual grant of $150,000 each to help women-owned small businesses throughout Puerto Rico start, grow and expand their businesses.

“Latina entrepreneurs are among the fastestgrowing entrepreneurial segments in the nation.

In honor of Hispanic Heritage Month and as the nation recovers, it is SBA’s priority to ensure that women in Puerto Rico have equitable access to resources and support to start, scale and grow much-needed businesses within their communities,” said Natalie Madeira Cofield, SBA Assistant Administrator for the Office of Women’s Business Ownership. “The SBA’s WBC program is that catalyst for the growth of in-depth, substantive, outcome-oriented business services for women entrepreneurs.”

The WBC, sponsored by UAGM-Gurabo, will provide services in the Central Eastern Region of Puerto Rico in Aguas Buenas, Aibonito, Barranquitas, Caguas, Cayey, Ceiba, Cidra, Comerío, Gurabo, Humacao, Juncos, Las Piedras, Naguabo, Orocovis, San Lorenzo, Guayama, Arroyo, Patillas, Maunabo and Yabucoa. The second WBC, sponsored by Friends of Puerto Rico, will serve San Juan and Bayamón.

The SBA’s Women’s Business Centers are a national network of more than 135 centers that offer one-on-one counseling, training, networking, workshops, technical assistance and mentoring to women entrepreneurs on numerous business development topics, including business startup, financial management, marketing and procurement.

The Office of Women’s Business Ownership’s mission is to empower women entrepreneurs through advocacy, outreach, education and support. Since it was established in response to an Executive Order in 1979, the federal government office has provided training, counseling, technical assistance, access to credit and capital, as well as marketing opportunities to women.

10

/ Wednesday, September 22, 2021

New Film Project Represents Economic Impact of $163 Million

Direct investment of $65.7 million to film ‘The Plane’ on the island

T

The Weekly Journal Staff

he production and filming of “The Plane,” an action film starring Scottish actor Gerard Butler, represents a direct investment in Puerto Rico of $65.7 million and an economic impact of $136 million with the estimated occupation of 3,964 hotel room nights.

The news was shared by Gov. Pedro Pierluisi, who revealed details of this upcoming production alongside Butler and the secretary of the Department of Economic Development and Commerce (DDEC by its Spanish acronym), Manuel Cidre, at a press conference in the Pedrín Zorrilla Coliseum in San Juan.

As part of the plot, Butler plays commercial pilot Ray Torrance, who, after successfully landing his plane in hostile territory, must face a hostagetaking scenario. The actor is known for such movies as “300” and the trio of “Fallen” movies, such as “Olympus has Fallen.”

“This project, which uses scenarios in Ceiba, Río Grande and San Juan for its filming, employs some 500 Puerto Rican workers - including technicians, actors and production personnel - generating a payroll of more than $5.1 million with a fiscal impact of over $450,000 in withheld income taxes.

During the four months of the project’s filming on the island, nearly 4,000 room nights will be used, achieving an economic impact of $136 million, an amount much greater than the investment made by the government to grant under Act 60 of 2019 with $26 million in tax credits,” said Pierluisi, who has promised to reiterate before the Financial Oversight and Management Board the benefits of increasing these credits for the film industry to foster job creation and economic development on the island.

For his part, Cidre explained that the team of the DDEC’s Film Industry Development Program “carefully analyzes the proposals that are received and selects those projects that provide the best performance for Puerto Rico. All the incentives available through the Incentive Code, including those for the film and creative industries, are granted based on the investment represented by the project submitted for evaluation and their return on investment, among other criteria.”

From left, Gerard Butler, DDEC Secretary Manuel Cidre and Gov. Pedro Pierluisi convene to share details on the Scottish actor’s new movie. >Josian E. Bruno Gómez

Actor Gerard Butler praised the work ethic of the Puerto Rican professionals hired for the production, who comprise 80 percent of the technical team. >Josian E. Bruno Gómez

Moreover, the secretary underscored that every concessionaire who has been granted a decree for eligible film projects under the Incentive Code will only receive the tax credits after submitting an audit, prepared by a certified public accountant (CPA) in Puerto Rico, in which the expenses incurred are confirmed. The audit is evaluated and the expenses are validated by both the DDEC and the local Treasury Department in order to certify the tax credits to which the concessionaire is entitled.

It was also reported that this project generates expenses of $19 million for the employees who have come to work on the island. These payments receive 20 percent in tax incentives, subject to a withholding of 20 percent with an automatic impact of $3.8 million that is paid to the Puerto Rico Treasury Department “The Plane” is produced by Marc Butan, Alan Siegel, Lorenzo Di Bonaventura, with Puerto Rican producer Luillo Ruiz, and directed by JeanFrancois Richet. At the end of the summer, Pierluisi announced that after the filming on the island of “Fantasy Island,” a drama series set in the 1970s and 1980s that premiered in August on the Fox television network, the economic impact was over $54.7 million. In addition, 418 direct jobs were created and the hotel occupancy was estimated at more than 2,000 nights for the entire production team, actors and staff.

11

< The Weekly Journal > Wednesday, September 22,2021

12

/ Wednesday, September 22, 2021

Renée Landell

Researcher in Postcolonial Ecocriticism, Royal Holloway University of London

D

Why We Need to Stop Thinking of the Caribbean as a Tourist ‘Paradise’

escriptions of the Caribbean have long reduced the region to the luring trinity of sun, sea and sand in order to market it as the ideal holiday destination.

The splendour of its rainforests and the aquatic hues of its coral reefs are undeniably beautiful.

But Caribbean islands are also home to people, animals and other non-human species whose complex histories have been shaped by exploitative tourism.

In the west, the idea of a “paradise lost”, as popularized by Milton’s famous epic poem telling the story of Adam and Eve, gave rise to a hunt for “undiscovered” Edens still present on Earth.

When Christopher Columbus arrived in the New World, the appeal of an earthly paradise was at its zenith in Europe. Setting out with the intention of reaching East Asia to establish more effective intercontinental trade routes – as well as to spread Catholicism – Columbus seemed to be taking his cue from the Bible, whose Book of Genesis describes the garden of paradise as being planted “eastward in Eden”.

But when Columbus first set foot on what was in fact a Caribbean beach, the natural landscape presented another, secular prize: the promise of infinite riches from the natural world.

Sure enough, the increasing hype in the west around the search for paradise became less about pleasing God and more about greed for travelers like Columbus, as evidenced by colonizers’ exploitation of indigenous people and extraction of wealth from natural and biological resources.

The Neocolonial Paradise

The seductive modern image of paradise, with its golden sands and crystal waters, evolved as part of a neo-colonial project of tourism, as the flow of foreign power was being reimagined in the wake of the collapse of European empires.

From travel brochures to television advertisements, the tourism industry presents the unethical idea that paradise can be bought just like any other commodity.

The myth of paradise has turned the Caribbean region into a space open to invasion by the highest bidder. Westerners are encouraged to escape from the monotony of everyday life to be serviced at the hands of labourers – a dangerous echo of life on the plantation for enslaved African people.

Poetry as Protest and Resistance

Many contemporary Caribbean writers discuss some of the Caribbean’s most urgent environmental and social concerns, including exploitative tourism, dwindling local land rights and underpaid citizen labour.

Jamaica Kincaid, Michele Cliff and others have likened tourism to a renewed version of colonialism. For me, the most striking writing on the Caribbean environment comes from the St. Lucian poet Derek Walcott.

Walcott, in his poem “Midsummer XXVII”, describes how nature in Trinidad has been “replaced or modified” by the “grey, metal light” of technology. Under the joint influences of colonialism and extractive capitalism affecting the islands, the Caribbean sea starts to seem like

“sheets of zinc” and the sun like “steady acetylene”.

The dominance of tourist-oriented, rather than local-oriented, businesses is also suggested in Walcott’s poem “The Star Apple Kingdom”, which describes the “ulcers” of “hotels”, “casinos”, “brothels”, and the “empires of tobacco, sugar and bananas”.

In his Nobel prize lecture, Walcott condemns tourist brochures for reducing the enormous diversity of the Caribbean environment to blandly appealing beach vistas out of “the shame of necessity”, mourning the islands’ “future of polluted marinas”.

My research into environmental racism and the damaging myth of Caribbean paradise has also been inspired by the work of the Bahamian-born poet Marion Bethel. She writes about how colonial violence led to the brutal demise of the Caribbean environment through forest clearance, soil erosion and reef destruction.

In her poem “On a Coral Cay”, Bethel protests how in the Bahamas “the whale done dead … we no longer whale or wreck”. She also considers how the effects of the colonial past have catalyzed new forms of environmental degradation in the present day. “Tourism”, she writes, “is king / divine and banking, a silver prince”, and this “tourist plantation” and “banking estate” has made the natives “waiters” who “service the world”.

Be an Ethical Tourist

Listening to Caribbean voices should prompt us to practice more ethical travel as tourists. Visiting the Caribbean for a holiday is not in itself immoral, but Bethel, Walcott and other Caribbean writers have condemned unethical tourism practices.

Despite the economic importance of tourism in the Caribbean, the local environment and particularly marine life continues to suffer as a consequence of unsustainable activities catering to demanding tourists.

Income from tourists is rarely distributed evenly: so support native businesses by shopping locally instead of at popular, often foreign-owned chains.

Be respectful of native customs and traditions. Do more than dwell in the luxury of your hotel or on the beach: immerse yourself in Caribbean culture by visiting museums and historical sites. Opt for eco-friendly transportation. Don’t litter. Take photos of the land and the animals with caution and respect, and make sure the local people give their permission before they end up on your Instagram feed.

-This article is republished from The Conversation under a Creative Commons license.

13

/ Wednesday, September 22, 2021

New iPhone 13 smartphones are introduced during a virtual event held to announce new Apple products. >AP/Jae C. Hong

>AP/Jae C. Hong

Apple’s Next iPhone Mirrors Last Year’s, Adds More Storage Option for a full terabyte of storage — that’s 1,000 gigabytes

S

The Associated Press

AN RAMON, Calif. (AP) — Apple has unveiled its next iPhone line-up, including a model that offers twice the storage available in earlier versions and other modest upgrades to last year’s editions that proved to be a big hit among consumers devouring the latest technology during the pandemic.

A recent pre-recorded video event Apple a chance to present a polished story following a turbulent few weeks. The recent bumps included a hastily patched security vulnerability that could let hackers secretly take control of iPhones and other Apple devices; a backlash to the company’s plans to scan iPhones for images of child sex abuse and a federal judge’s ruling that chipped away further at the competitive barrier Apple built around its app store, which generates billions of dollars in profits each year.

As has been the case since Apple’s late cofounder unveiled the first iPhone in 2007, Apple executives talked reverently about the latest

model, even though it isn’t dramatically different from the version Apple released nearly a year ago.

Like last year’s model, the new iPhone 13 will come in four different designs, with prices starting from $700 to $1,100. They’re scheduled to be in stores September 24.

“It’s an incremental upgrade,” said Gartner analyst Tuong Nguyen. “Some of the new features are impressive, but most of them are not noticeable or practical for most users.”

Possibly the most notable change in the latest high-end iPhone 13 will be an option for a full terabyte of storage — that’s 1,000 gigabytes — on the device, up from its previous maximum of 512 gigabytes. That’s enough storage to accommodate roughly 250,000 photos, or about 500 hours of high definition video.

Having a massive amount of storage could become more important to many consumers with the advent of ultra-high definition video and ultrafast wireless 5G networks that will make downloading content faster and easier, Nguyen said.

Apple is also promising better cameras on the iPhone 13, including an improved ultrawide lens, a cinematic-like video feature and technology for better nighttime pictures. (The latter mirrors a feature Google has long offered in its line of Pixel phones, which haven’t been big sellers yet.) As usual, the latest iPhones are supposed to have longer-lasting batteries, too.

“We keep making the iPhone more capable,”

Apple CEO Tim Cook boasted.

These kinds of incremental upgrades have become routine for Apple and other device makers in recent years as the pace of smartphone innovation slowed, even while prices for some phones have climbed above $1,000. That trend has prompted more consumers to hold on to their older smartphones for longer periods.

But the release of last year’s iPhone 12 unleashed one of Apple’s biggest sales spurts since 2014, possibly because the pandemic helped make homebound people realize it was time to get a newer and better model than what they had been using. Through the first six months of this year, Apple’s iPhone sales have surged by nearly 60 percent from the same time last year.

That boom has helped push Apple’s stock price near its all-time highs recently, giving the company a market value of about $2.5 trillion -- more than twice what it was before the pandemic began 18 months ago.

Apple’s shares dipped by about 1 percent last week when the new iPhones were unveiled, a sign that investors weren’t excited by what they saw in the new model.

Although the iPhone is still by far Apple’s biggest moneymaker, the company has been trying to supplement its success with peripheral products such as its smartwatch. The Cupertino, California, company used Tuesday’s showcase to provide a preview of its next Apple Watch, which will feature a thinner, more rounded and brighter display.

14

/ Wednesday, September 22, 2021

Fashion Designers of Latin America Get a Standup Ovation The return to physical shows at New York Fashion Week THE WEEKLY JOURNAL Staff

W

ith a standup ovation, the Fashion Designers of Latin America (FDLA) successfully closed the return to physical shows during the recent New York Fashion Week

>All photos are courtesy

(NYFW).

The fashion festivities kicked off with a private designer’s welcome dinner reception, followed by an up-close in-person showcase featuring the best of Latin-American Fashion Designers.

The physical shows also included a continuation of the FDLA digital platform with fashion films presented by Custo Barcelona, Glenkora Comte, Leti Faviani and collective fashion film presented

by Conglomerado Textil Boliviano featuring brands and fashion designers; Awaj Warmi, Fotrama, Carmen Claure and Talentos.

/ Wednesday, September 22, 2021

“We are extremely grateful to all designers, guests, and media who participated in our LIVE catwalks, showing a strong come back of this fashion season and celebrating the best of Latin American fashion in both physical and digital presentations,” said Albania Rosario, founder of the FDLA and Executive Board member at Latinas in Business Inc. “We also thank our main sponsors, Hennessy V.S.O.P, Delta Air Lines and Hispanic Federation for their presence and continuous support to our efforts to bring the best designers of Latin America to the U.S. markets,” she added.

The FDLA live shows presented the spring/ summer collections of emergent designers such as; Agatha Ruiz de la Prada - Spain, Dante Luxury Footwear- Mexico, Dayana Leon - Venezuela, Giannina Azar - the Dominican Republic, Indira & Isidro - Mexico, Idol Jose - Venezuela, Jose Ventura - Dominican Republic, Paris Rodriguez – Colombia, Rosita Hurtado - Bolivia, Samantha Telfair - Puerto Rico, Yas Gonzalez - Cuba and Yirko Sivirich - Peru.

Fashion Designers of Latin America required all participating staff, designers, models and all guests to be fully vaccinated. The fashion shows were also produced in adherence to New York State Health Guidelines.

15

Constant updates online 24/7.

TheWeeklyJournal.com

Visit us for updated content on our 24/7 platform.

WeeklyJournal

The