A decade after the PROMESA law and the creation of the Oversight Board, most economists are not satisfied with its performance, according to a survey by the Puerto Rico Economists Association. Some 76% of respondents disagree or strongly disagree that the policies promoted or approved by the Board contributed to Puerto Rico’s economic growth. A similar share says the policies did not aid long-term development, and 73% question their contribution to the labor market.
Nearly eight in 10 do not believe the Board had positive effects on job creation, and 71% question its contribution to business creation. Seven in 10 say fiscal oversight did not improve government administrative efficiency or reduce corruption; 65% say it did not improve tax system administration and 55% question its effect on public finance transparency.
On statistics, 63% say the Board did not help the availability and quality of data produced by the Planning Board, while 55% question its contribution to employment and unemployment statistics and 53% to price index statistics. On the University of Puerto Rico (UPR), 73% say the balance between spending cuts and development was not adequate, and 74% question the size of the UPR spending cut.
The Board promoted a 50% reduction in Central Government contributions to the UPR. However, 44% say Board oversight helped keep government spending from exceeding revenue, versus 32% who disagree. Overall, 60% do not consider the Board’s performance positive, 63% question that its overall impact on the island’s economic future has been favorable, and 71% say it has not created conditions to reduce the risk of renewed fiscal insolvency.
On the Board’s future, 57% disagree that it should keep operating until Puerto Rico regains full access to capital markets, while 31% favor that position. The Association calls for a transition agenda to progressively recover fiscal autonomy without compromising budget discipline or debt sustainability, including stronger financial information systems, professionalized public administration, better economic statistics and a development strategy that promotes productive investment and human capital.