Puerto Rico stands at a critical turning point in its history. Our current economic model, conceived in the 1950’s and structured around a paternalistic government as the principal economic agent, is obsolete. Such economic policies and poor public management practices have eroded the growth potential of our economy. This stands in stark contrast to the growth currently experienced by all nations in our hemisphere. Puerto Rico needs immediate and profound changes, not just in its political leadership, but also in its vision and strategy for the future.

We need a concerted effort to redirect our economic development towards growth and progress. I am not referring, however, to new laws or more regulations. On the contrary, our government needs to take itself out of the business of our economy. It must evolve from administrator and director to facilitator and motivator. This change will bring about all the benefits of a capitalist system to each sector of our society.

As a fiscally conservative democrat, I share Luis Fortuño’s economic vision of a facilitating government concentrated in encouraging the private sector’s growth. This entails a reduction in income tax brackets for all, especially our working class. It also calls for a substantial reduction in corporate tax rates. Most corporations in Puerto Rico pay corporate tax rates of up to 41.5% compared to an average of 27.5% in other industrialized nations, putting us at a competitive disadvantage. This approach will improve the business climate, which will result in lower unemployment. Improving our infrastructure, lowering the cost of doing business, and enhancing our quality of life are the best promotion policies our government can have.

Developing nations and industrialized countries are moving away from government interventionist policies in favor of a free market regulated by the principles of supply and demand. Within the context of the U.S. economy, the most stable and competitive economy in the world, it is important that we begin to treat ours as a regional economy. As it stands now, we are only partially inserted into the stateside economic stage, which hinders our economic growth prospects.

As Puerto Rico’s next Resident Commissioner in Washington, I plan to promote important initiatives that will yield a stable and stimulating business environment in Puerto Rico. One such initiative is the National Enterprise Zones Bill, which will provide disadvantaged areas, such a Puerto Rico, with additional incentives for economic development. But my primary goal is to achieve “state-like treatment” in all federal programs.

The commonwealth of Puerto Rico receives 4.8 billion dollars in federal aid programs for economic stimulation, infrastructure, and social development, excluding funds from Social Security or other acquired benefits. This is an investment of approximately $1,200.00 per capita for our population. In comparison, the U.S. Virgin Islands receive about $574 million or $5,131.00 per capita. Therefore, even compared to other territories we are not receiving our fair share of federal funds. Furthermore, Kentucky, a state with a comparable population to Puerto Rico, receives $34 billion in federal funds to Puerto Rico’s $16 billion. These numbers illustrate the economic costs of our political status. American citizens living in Puerto Rico face geographic discrimination since they are deprived of substantial economic benefits enjoyed fully by mainland residents.

The irony is that we must compete against these states for population, labor and investments, and in regional and international markets. However, our unequal participation in federal fund allocations hinders our competitive position. Achieving “state-like treatment” will lead to an influx of funds into our economy, translating into investments in education, infrastructure and social welfare. It will enable us to build a stronger and dynamic economy less dependant on government and more in tune with the needs of the private sector.

Inserting ourselves fully into the United States economy will bring about economic opportunities already available to citizens of the 50 states. No American citizen should be discriminated upon for living in Puerto Rico; it is a matter of civil rights. It has been said that Puerto Ricans just want more funds from the United States, while they do not pay federal income taxes. But what we want are the funds that are available for all U.S. citizens. Why should a disabled child in Kentucky whose parents are poor and do not pay taxes be entitled to more aid than a disabled child in Puerto Rico whose father is fighting for freedom in Iraq? This is about our rights as American citizens and about our Nation providing the conditions for Puerto Rico to grow and prosper within the American dream.