A Grim Outlook on Poverty

The U.S Census Bureau released some staggering numbers underlining the precarious economic situation in which many families in Puerto Rico are facing. According to the latest statistics from 2010, 45% of the island's families are living below the poverty level, defined as those having an annual income of $22,314 or less for a household of four. Back in 2000, the poverty level was at 44.6%. (Note: the island's population experienced a notable decrease over the past ten years). Moreover, the Census also revealed that 36.7% of the island's households are beneficiaries of the Nutrition Assistance Program (PAN). In theory, PAN (colloquially known as "cupones") functions similarly to the mainland's food stamp program. At the root of the problem is the high level of unemployment and the historic low level of labor participation rate, which is estimated at just under 40%. Both factors have pushed an increasing number of families on the precipice of financial disaster.

Particularly heartrending is a report published by the National Council of La Raza (NCLR), which revealed that 56% of the island's children live below the poverty level. To help remedy this egregious problem, the U.S federal government has consistently provided economic assistance to the island. However, despite such social transfer programs, the island remains stuck in a sort of twilight zone. The reasons for this are numerous, ranging from a sclerotic local government to the misuse of public funds. A perfect example of the latter is exemplified by the Special Community Trust Fund, an initiative which begun under the administration of former Governor Sila María Calderón. This $1 billion social program designed to help families living in poverty has sparked a tremendous amount of controversy as the money in the trust fund has mostly dried up. Furthermore, it has far from achieved its intended goal to help the island's poorest communities. The purpose of this fund was to help construct homes in hundreds of communities that are currently living in dilapidated conditions. Many of the island's social problems, a skyrocketing crime rate and an increase in the high school dropout rate, can be attributed to the high level of poverty.

(Photo Credit: The image above was obtained from www.prensacomunitaria.com).

A Force to be Reckoned With

The U.S Department of Justice (DOJ) lambasted the Puerto Rican Police Department in a report released last Thursday condemning it of civil rights violations, corruption, and other "illegal activities." The findings confirm what many have long known about most police officers on the island. In fact, the American Civil Liberty Union (ACLU), along with other organizations, have long called for the U.S Congress to look into the abuses committed by the island's police force. Instances where the police have been accused of using excessive force have occurred on a countless number of occasions, most notably during the University of Puerto Rico student demonstrations. The report also stated that the PRPD, which is comprised of over 17,000 officers, has consistently failed to investigate domestic violence cases, and many police officers have been found to discriminate island residents of Dominican descent.

As expected, Police Chief Emilio Díaz Colón has come out in defense of his underlings. During a press conference, he stated that "not one single police officer has come to commit civil rights violations." Furthermore, he contends that the police force will continue to do its job with dignity and respect." He did concede that the PRPD will have to implement "some" changes, and will have to provide its officers with the necessary training as suggested in the DOJ's report, which put forth 133 recommendations. Nevertheless, specific details on how the island's police force will be transformed were not provided by the Police Chief. To his credit, the PRPD suffers from a severe shortage of funding, which raises questions as to how it will be reformed.

Meanwhile, Gov. Fortuño has stated that his administration has sent a proposal, back in March, specifying how 110 of the 133 recommendations listed on the DOJ's report will be put into place. As there seems to be no end in sight to the island's crime wave, the homicide rate is 22.5 per 100,000 residents (it is nearly double that of Louisiana's, which has the U.S' highest rate), most have long had little or no confidence in the PRPD's ability to keep the streets safe. By the same token, little trust is bestowed upon other local government agencies, i.e Department of Education, the Department of Family, among others. This latest blow from federal authorities will hopefully bring about some substantive changes in the PRPD, but nobody is holding their breath. According to Gov. Fortuño, it can take as long as 15 years for the reform process to come full circle.

(Photo credit: Ricardo Arduengo/Associated Press)

A Rude Awakening

Our electricity bill arrived the other day, and my eyes nearly popped out of its sockets when I saw how much we owed. Adding insult to injury, we had received the bill just after having lost power for three days due to Irene. Those of us who live in Puerto Rico have always had to spend much more on our electric bills than our counterparts on the mainland. According to the U.S Energy Information Administration, the average retail price of electricity per kilowatt in the U.S is $0.11 cents back in February of this year. On the island, the average cost per kilowatt for households this past June was $0.28. If Puerto Rico was a state, it would have the second most expensive electric costs. The most expensive is Hawaii, at $0.31.

As a blog reader once pointed out to me, those of us who pay our electric bills (at unsubsidized prices) are subsidizing those who aren't. In fact, some churches, hotels, public housing projects (aka caserios) and municipalities can keep their lights on 24 hours a day, as they practically get electricity for free (and some in fact do). Another reason why electricity is so expensive in Puerto Rico is because many people steal electricity (not to mention water as well). This has led to an estimated $700 million loss between 2009 and 2010. The fact that 70% of the island's energy comes from petroleum exacerbates the problem. The situation has gotten so dire that some restaurants are directly passing the high energy prices on to its customers, listed as the "AEE Adjustment" on their bills.

During the past few weeks, la Autoridad de Energía Eléctrica (the Puerto Rico Power Authority), a government corporation, has come under fire in its billing tactics. The AEE uses a formula which weighs heavily current oil market prices. Jeniffer González, President of the island's House of Representatives, has promised to implement significant changes as to how the AEE charges its customers. High energy costs is a serious impediment to the island's economy, as consumers have less money to spend on other household goods. In addition, for businesses, it increases operating costs to a much more dramatic level. Meanwhile, the Fortuño administration is placing its bets on the Via Verde gas pipeline to help alleviate the island's skyrocketing energy prices.

Waiting for Irene

In the eve of tropical storm Irene's impending arrival, parking lots at most supermarkets on the island have been jam-packed with cars and shopping carts that have been left behind as soon as stores opened today. In fact, people were able to shop earlier than 11AM (the time when most stores on the island are legally allowed to open on Sundays) since Secretary of State Kenneth McClintock had suspended the Closing Law and ordered a price freeze on items of utmost necessity. The National Hurricane Center initially billed Irene as a tropical storm advisory but has since issued a hurricane warning for Puerto Rico. This evening, the entire island of Vieques is already said to have lost electricity. As the island's power grid and water pipelines are quite antiquated, it doesn't take much rain or wind to provoke a disruption of such basic services.

The lack of confidence on the government's part to confront any sort of natural disaster is precisely the reason why people clear out supermarket shelves, even when Puerto Rico isn't in the storm or hurricane's direct path. This afternoon, at a press conference, Gov. Fortuño announced that 13,000 homes are already without electricity. In addition, 400 homes are without water. Keep in mind that this occurred hours before Irene's arrival. The governor has also announced that all local government agencies and public schools will be closed tomorrow. He also took the same measures several weeks ago, when Emily passed by the island and most of the island emerged unscathed. In fact, some people in the metro San Juan area enjoyed the time off at the beach. Unlike Emily though, which (thankfully) did not wreak much havoc, Puerto Rico is in Irene's direct path.

(Photo credit: The image above was obtained from www.endi.com)