Explain the economic status of Puerto Rico, using world systems theory. What problems are contributing to the economic conditions experienced by the majority of the island's inhabitants?

Question

What will be an ideal response?

Answer 1

Puerto Rico is an example of the world systems theory. World systems theory is the view of the global economic system as divided between certain industrialized nations that control wealth and developing countries that are controlled and exploited. Although Puerto Rico may be well off compared with many other Caribbean nations, it clearly is at the mercy of economic forces in the United States and, to a much lesser extent, other industrial nations. Puerto Rico continues to struggle with the advantages of citizenship and the detriment of playing a peripheral role in the economy of the United States.

New challenges continue to face Puerto Rico. First, with congressional approval in 1994 of the North American Free Trade Agreement, Mexico, Canada, and the United States became integrated into a single economic market. The reduction of trade barriers with Mexico, coupled with that nation's lower wages, combined to undercut Puerto Rico's commonwealth advantage. Second, many more island nations now offer sun-seeking tourists from the mainland alternative destinations to Puerto Rico. In addition, cruise ships present another attractive option for tourists. Given the economic problems of the island, it is not surprising that many Puerto Ricans migrate to the mainland.

For years, circular migration between the mainland and island has served as a safety valve for Puerto Rico's population, which has grown annually at a rate 50 percent faster than that of the rest of the United States. Typically, migrants from Puerto Rico represent a broad range of occupations. There are seasonal fluctuations as Puerto Rican farm workers leave the island in search of employment.