Business News History of Puerto Rico | Page 14

History of Puerto Rico

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Puerto Rican independence. The actions by both Muñoz and the United States' Government would later be determined as infringing on constitutional rights. On July 25, 1952, the Constitution of Puerto Rico was approved by voters in a referendum, and the island organized as the Estado Libre Asociado (Commonwealth of Puerto Rico). That same year marked the first time that the Flag of Puerto Rico could be publicly displayed.

The Partido Estadistas Unido (United Statehooders Party) was founded by Luis A. Ferré to campaign for statehood in the 1967 plebiscite. On July 23, 1967, the first plebiscite on the political status of Puerto Rico was held. Voters overwhelmingly affirmed continuation of Commonwealth status (Commonwealth–60.4% Statehood–39%; Independence–0.6%). Other plebiscites have taken place to determine the political status of Puerto Rico, one in 1993 and another in 1998. Both times, although by smaller margins, the status quo has been upheld. However, the U.S. constitution does not mention this avenue of status, hence legally the

island remains a territory of the United States, under congressional supervision. The Partido Estadistas Unido organized the Partido Nuevo Progresista (New Progressive Party) under Ferré's leadership. The party campaigned for Puerto Rico to become the 51st state of the Union. Luis A. Ferré was elected governor on November 5, 1968, with 43.6% of the vote, the first time a pro-statehood governor has received a plurality. The New Progressive Party, the Popular Democratic Party and the Independence Party constitute the current established political parties in the island.

Present-day Puerto Rico has become a major tourist destination and a leading pharmaceutical and manufacturing center. Still, Puerto Rico continues to struggle to define its political status. Even though Puerto Rico was granted local autonomy in 1952, it remains a territory of the United States. Its ambiguous status continues to spark political debates which dominate Puerto Rican society. Economically, Puerto Rico has recently seen its credit rating downgraded to Baa2 by Moody's Investor Services with the possibility of more downgrades happening in the near future. This has led to fiscal measures to reduce government spending, increase revenues and balance the budget, and the implementation of a 7% sales tax.