Business News History of Puerto Rico | Page 13

History of Puerto Rico

13

that level.



Establishment of the Commonwealth

In the years after World War II, social, political and economical changes began to take place that have continued to shape the island's character today. The late 1940s brought the beginning of a major migration to the continental United States, mainly to New York City. The main reasons for this were an undesirable economic situation brought by the Great Depression, as well as heavy recruitment made by the U.S. armed forces and U.S. companies. In 2004, approximately 3.8 million people of Puerto Rican background lived in the United States. Political changes began in 1946 when President Truman designated the first Puerto Rican, Commissioner Resident Jesús T. Piñero, to serve as island governor. One year later the U.S. Congress passed an act allowing Puerto Ricans to vote for their own governor. The first elections under this act were held on November 2, 1948. Luis Muñoz Marín, president of the Puerto Rican Senate, successfully campaigned and became the first democratically elected Governor of the island on January 2, 1949. In the 1950s, an ambitious industrialization project dubbed Operation Bootstrap was launched under governor Muñoz Marín. It was coupled with agrarian reform (land redistribution) that limited the area that could be held by large sugarcane interests. Operation Bootstrap enticed US mainland investors to transfer or create manufacturing plants by granting them local and federal tax concessions, but maintaining the access to US markets free of

import duties. Another incentive was the lower wage scales in the densely populated island, which had a rising urban unemployed population. The program accelerated the shift from an agricultural to an industrial society. The 1950s saw the development of labor-intensive light industries, such as textiles; later manufacturing gave way to heavy industry, such as petrochemicals and oil refining, in the 1960s and 1970s. Muñoz Marín's development programs brought some prosperity for an emergent middle class. The industrialization was in part fueled by generous local incentives and freedom from federal taxation, while providing access to continental US markets without import duties. As a result, a rural agricultural society was transformed into an industrial working class.

On July 4, 1950, President Harry S. Truman signed Public Act 600, which allowed Puerto Ricans to draft their own constitution establishing the Commonwealth of Puerto Rico. The U.S. Congress had granted commonwealth status on Puerto Rico that enhanced Puerto Rico's political status from protectorate to commonwealth. This, coupled with Muñoz Marín's reversal on not pursuing Puerto Rican Independence angered some Puerto Ricans. On late October 1950, a group of Puerto Rican nationalists, led by Pedro Albizu Campos, staged several revolts, the most successful of which is known as the Jayuya Uprising. The revolts included an attack on the governor's mansion, La Fortaleza, the United States Capitol and at Blair House, where nationalists attempted to assassinate United States President Harry S. Truman. These acts led Muñoz to crack down on Puerto Rican nationalists and advocates of