Check It Out: Hard work reaps benefits

By Joan Janzen
joanjanzen@yahoo.com

Are you ready for this week’s joke? Question: What’s the problem with unemployment jokes? Answer: None of them work.

Fortunately, the U.S. territory of Puerto Rico is reducing their unemployment and finding ways to pull itself out of bankruptcy. The news outlet, Full Measure, dedicated multiple episodes to the subject of this U.S. territory, which has not only been bankrupt for four years, but is also fighting corruption scandals and suffering from hurricane damage. Now several efforts are underway to eliminate their debt, one of which is a renewed interest in medicine and manufacturing in the town of Aguadilla.

Efforts include the renovation of a 90,000 square foot warehouse which is being transformed into a $200 million high-tech bio lab. Usually such an extensive renovation would take three to four years to complete, but in this case, the process has been shortened to 90 days in order to attract pharmaceutical businesses to the island.

Two individuals recently brought two biotech companies to the island, which equals 400 jobs and a $228 million investment. One of the men is originally from Vietnam, the other is from the Dominican Republic, locations where they would not have been able to develop a successful company. However, in the U.S., the opportunity to acquire an education, along with hard work and perseverance, made it possible. They’re hoping to help, not only themselves, but also Puerto Rico.

They picked this location because of the incentives offered, which enable them to make their product as cheaply as China and India, but retain the gold standard U.S. quality. The incentives offered by Puerto Rico include a government subsidy, a grant to renovate the facility, incentives to hire and train employees and tax credits.

Although Puerto Rico is well known for its bureaucracy and red tape, the mayor of Aguadilla miraculously shortened the clearance process from the customary one year to 24 hours. Why? Because he realized his town needed the employment and money.

Up until 2005, Puerto Rico had a thriving manufacturing sector, but in 2005 Congress reasoned that corporate tax breaks were helping rich corporations. When tax breaks were removed, some pharmaceutical companies cut back, enabling China and India to become dominant producers of medicine.

Meanwhile on the other side of the island, another pharmaceutical company employs 160 people, and expects to double that number within the next two years. The U.S. has realized it cannot continue to depend on foreign countries for its basic drugs, medical devices and healthcare supplies, and it appears Puerto Rico is playing a vital role in providing a solution.

While manufacturing is moving forward in Puerto Rico, tourism is also facing a brighter future. Hotel occupancy is reaching an all time high and tourism revenue is rising. Visitors in June were almost double the usual number, most of which consisted of U.S. citizens who were subjected to travel restrictions.

Manuel Laboy heads up the island’s economic recovery efforts, and observed that the Puerto Rico tourism experience is great, but will become even better. Tourism recovery programs and others like it will allow much improvement to roads, attractions and other assets, within the next two years.

Just a thought, but maybe governments in Canada could gain some wisdom by taking a close look at what’s happening in Puerto Rico. It would be very encouraging for Canadians to be rewarded for their perseverance and hard work.