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A Social Pact for the Economic Growth of Puerto Rico

Edgar Rodríguez Ríos

This paper aims to explain the advantages of creating a social pact for the development of a national public policy. A review of the literature is carried out to expose the contexts in which social pacts have been developed and the frequent problems that countries have tried to solve through this mechanism, both in Europe and in Latin America. It also explains the prerequisites and requirements for a successful social pact in terms of its creation, implementation and durability. Also, the document presents an analysis on the need and the ideal conditions for the creation of a social pact in Puerto Rico. A great economic depression, political uncertainty, poor public administration and problems in the legitimacy of the institutions have been the main characteristics of the Puerto Rican society since 2006. In this context, a mechanism for the formulation of public policy is necessary to develop an economic growth plan that is inclusive, long-term, transcends political changes, and that reflects the interest of the population. The need for a social pact increases due to the scarcity of resources faced by the government and the need to address the social problems that have arisen as a result of the economic weakness. During the last 20 years, important initiatives have been generated related to seeking for consensus and creation of dialogue for the development of public policy, in Puerto Rico there is fertile ground for the creation of a social pact that addresses one of the most important and serious problems its society faces: the poor ability to create income, employment and wealth.

 

Key words: Social Context; Economic Growth; Public Administration; Economic Problem; Public Policy; Consensus; Puerto Rico

 
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