The 51st State

Puerto Rican citizens participated in a non-binding referendum titled “Plebiscite for The Immediate Decolonization of Puerto Rico” in order to join the United States of America as the 51st state on the 11th of June. An overwhelming majority of 97% voted in favour of statehood, however only 23% of Puerto Ricans eligible to vote participated in the fourth referendum of its kind. Many voters, especially students, boycotted the vote owing to its non-binding nature.

Reasons for Statehood 

Puerto Ricans were formally granted US Citizenship through the Jones Shafroth Act of 1917 which established the bill of rights whilst exempting them from taxation leading to its status as a tax haven. However, the Act specifies a maritime law that prevents “foreign ship,” including those belonging to US companies, from unloading cargo in Puerto Rico. This arbitrary law allows for continental US to charge higher prices for the goods departing from the mainland. 

Federal intervention has ruined the economy as employers are expected to pay the same minimum wage as US in spite of income and productivity being much lower than that of the mainland. Moreover, this has reduced the number of entry level jobs in the market. 

Current debt-GDP ratio is an astounding 68% with taxes increasing debt through investments. Puerto Rico has filed for bankruptcy owing to their $70million debt. No State of the Union can file for bankruptcy which may be detrimental to Puerto Rican interests. Gov. Ricardo Rosselló said it was tangential as statehood would provide “sovereign immunity” allowing them to accept, deny or negotiate any debts. 

USA’s Response 

During the Obama Administration, the US Congress enacted the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) to improve the welfare and economy of the island territory. PROMESA had a financial control board of Wall Street representatives without any Puerto Rican representatives and the Governor acting as a mere observer. The board recommended a decrease in US funding from $500million to $300million alongside reducing millions of its high debt. 

US Congress has dismissed the referendum because of the problematic language which had not been approved by them. 

Analysis: 

Integrating Puerto Rico would be a massive task as the country would have to be accepted Constitutionally instead of their Congressional accession to the Union. Restructuring of federal policies for the state while bringing about a reorientation of domestic socio-economic policies will be a prolonged process. However, the likelihood of the Republican controlled Congress ruling in favour of Puerto Rico is dismal. President Trump’s vehement opposition of certain South American countries alongside Puerto Rico’s occasional fits of socialism further affects future prospects. Nevertheless, It is legally required for the US to accept a referendum but the process of integration might be problematic. 

Assessment

Our assessment is that, restructuring the American flag is amongst the myriad of hurdles which will face both USA and Puerto Rico in an ideal situation where Congress accepts the referendum results. With another vote scheduled for October of 2017, the number of voters might increase to the levels seen in the last plebiscite of 2012.