INSIGHTS INTO ECONOMIC DEVELOPMENT POLICY Volume II: Section 936, Banking Oversight, and Infrastructure

This volume brings together four quintessential documents that extensively deal with Section 936, Banking Oversight, and Infrastructure in Puerto Rico. These papers include; “The Effect of 936” by Arthur MacEwan, “Puerto Rico and Section 936: A Costly Dependence” by J. Tomas Hexner and Glenn Jenkins; Eugene S. Weil’s submission to Congressional Task Force on Economic Growth in Puerto Rico and “Reviving the Puerto Rican Economy Requires a Big Push of Public Infrastructure Investment” by J. Tomas Hexner and Arthur MacEwan. First of all, rather than yearning for the return of 936, Puerto Rico would do well to abandon of the 936 myth. This recognition of reality could be one important step in laying the foundation for a new era of economic development for Puerto Rico. Secondly, Section 936 has ceased to be an efficient means of attaining employment-producing investments in Puerto Rico and other U.S. territory. While the initial rationale for the credit was the creation of jobs and the stimulation of economic activity in the territory, the outcome has been far different. Thirdly, in a submission to the Congressional Task Force on Economic Growth in Puerto Rico by Eugene S. Weil, Managing Director and Financial Institutions Group Co-Head, he reveals that The Congress is under the directive to reduce uncertainty in Puerto Rico; as such, he believes that the creation of regulatory exceptions for banks in Puerto Rico would likely be counterproductive to this mandate. Finally, the forth submission in this volume to the congress by J. Tomas Hexner and Arthur MacEwan titled “Reviving the Puerto Rican Economy Requires a Big Push of Public Infrastructure Investment”, emphasizes the need for effective policies and major reforms to be initiated immediately