Abstract

This thesis focuses on the domestic determinants of Puerto Rico’s economic evolution, intending to find what political factors indigenous to Puerto Rico explain its economic trajectory from the 1950s to the 1970s. Specifically, this thesis explores how political calculations for enhanced electoral support characterized internal political dynamics, thereby affecting discussions of the Island’s economic situation and ways to ameliorate it. Particular focus is given to critical
economic sectors such as industrialism and manufacturing, tourism, agriculture, and local
business.

Additionally, this thesis examines how the creation of Puerto Rico’s Commonwealth status in 1952 impacted the Island’s local policies and local leaders’ economic policy choices. This
research showed that Puerto Rico’s political dynamics were influenced by the Commonwealth status and produced an economic and ideological dependency on industrialism and
manufacturing, resulting in the poor management of potentially promising economic sectors. It was also found that the lack of focus and attention toward government economic policies and objectives resulted from a deeply politicized environment in which most public institutions operate on the Island. Consequently, there has been in Puerto Rico a lack of long-term economic planning and convergence between the Island’s political leaders rendering the Island incapable of
articulation solutions to its fragile economic situation.