Puerto Rico Banking History

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					                 Caribbean Overview
   25 countries and dependent territories
       Greater Antilles (Cuba, Hispaniola, Jamaica, Puerto
        Rico)
            Large mountains (DR: 10,000‘; Jamaica Blue Mtns. 7000‘,
             Cuba 6000‘ (refuges for runaway slaves)
            Fertile farmlands, but fragile
       Lesser Antilles
            Double arc
       Netherlands Antilles (ABC islands)
   Setting boundaries not easy:
       Sometimes Belize/ Guyana's (Guyana, Suriname and French
        Guiana)
       Sometimes the ―rimlands‖ of Central American countries
       Bahamas included even though they are technically in the Atlantic
        Ocean
Greater Antilles
Lesser Antilles
Lesser
Antilles
                    Why a region?
   Commonalities: Cultural and economic
    history different than Latin America
       Diverse European influence
       Strong African imprint and slavery
       Virtually no indigenous legacy
       Export plantation economy
          Grossly uneven distribution of land and resources
          Environmental impacts

       Environmental/physical geographies
   Names:
       The Indies, the Spanish Main, Mar del Norte
       18th C: first use of the name Caribbean
                Caribbean Diversity
   Territorial Size:
        Cuba:: 101,000 Km. Sq.
        Montserrat: 100 km. Sq.
   Population
        Hispaniola (Haiti and Dominican Republic): 16 million
        Turks and Caicos: 12,000 pop
   Cultural Heritage
        Spanish: Puerto Rico, Cuba, Dominican Republic
        French: Haiti, Guadeloupe, Martinique, St. Martin
        Dutch: ABC, St. Maartin
        English:
        Patois: many islands
   Economic and social indicators
                   Caribbean Overview
   Historically: ―proxy‖ battleground for European
    rivalries
       Plantation economies
            Sugar, sugar, sugar
            Bananas, citrus, coffee, spices
   By 1900‘s: US dominates the region politically
    and economically
   Other and more recent economic development
             timber
            nickel and bauxite, gold
            tourism
            Non traditional exports
            Off shore banking
              Caribbean Overview

   Contradictions:
       ―Island Paradise‖ v. impoverishment and
        dependency
       ―Isolated proximity‖
       Fertility washed away
       Cyclical migration: migrants returning
             Environmental Geographies
   Geologies, climate and vegetation
            Tectonic Plates
            Tropical, wet climate that supports forests
            Palm savannas—best soils
            Mangrove swamps
            Arid zones (rain shadows)
            Hurricanes
   Reworked landscapes
   Environmental degradation
       Deforestation
            Sugarcane fields
                  Jamaica and DR still have 30%
                  Cuba has 20% (charcoal production for energy needs)
                  Rimlands are much more intact
                      Belize and Guyana had successful environmental initiatives

       Seas and marine resources
                      Plantation economies
   Spanish discoveries
            Jumping off point for exploration and ports for trading from Mexico,
             CA and SA
   Colonists demographic collapse of indigenous
    Arawaks and Caribs
            Fragments survive only on the rimland
   Competition from France, England, Holland; Pirates
   ―Plantation America‖ from Brazil up through SE US.
   Mono crop system: sugar
       Insatiable demand for sugar and rum
   Asian migrants indentured labor
            Suriname: 1/3 pop is of S. Asian descent, 16% Javanese
            Guyana and Trinidad: India
            English colonies: Chinese
   Slave labor-Elaborate racial hierarchy
‗Plantation America‖
                 Caribbean Cultures
   Much diversity, but also many similarities
    which provide glue
       European plantation economies similar
        social structures (like CA)
       African influence
       Creolization
            Culture, language, music
                    African heritages
   African diaspora
       West Africa: Senegal to Angola
       Est. 10 million crossed the Atlantic (2 million died on
        the way) between 16th and 19th c.
       Intentional mixing so no one source would dominate
       hybridity of cultures, religions, and languages
   Maroon societies (palenques)
       Maintenance of historical religions
            Obi, Obeah
            Bush Negroes
   African religions
       Voodoo, Santeria, Obeah
       Extensive use
       Diffused to the US along with migrants
                  African heritage and hybridity
   Creolization
          Rich forms (VS Naipal, Bob Marley)
          Garifuna or Black Carib
                African/Carib on St. Vincent forcibly resettled by British to Bay Islands of
                 Honduras
                    Maintain Indian religion, eat manioc

   Languages
          Spanish: 24 million
          French: 8 million
          English: 6 million
          Dutch: .5 million
          Alternatives: papiamento, patois,
   Music
          Reggae, calypso, merengue, rumba, zouk, steel drums of Trinidad,
           etc.
                Haitian ra-ra musicians have been exiled when too political
                Reggae, esp. Bob Marley, strong political content
                    Political Histories

   Independence:
       Haiti is the first in 1804 (v. US in 1776)
            But it was seen as a threat by other islands and
             shunned by the mainland CA countries
       Dominican Republic in 1844
       Cuba and PR in 1898 from Spain US
        involvement
       British colonies: revolts starting in 1930‘s but
        independence in 1960‘s, 70‘s and 80‘s
      Selected British colonies:
       dates of independence
Country                 Independence
Jamaica, Trinidad and   1962
Tobago
Barbados                1966
Bahamas                 1973
Grenada                 1974
Dominica                1978
St. Vincent and the     1979
Grenadines
St. Lucia
Antigua and Barbuda     1981
Belize
St. Kitts and Nevis     1983
                Present day political status
   British colonies:
       Cayman Islands, Turks and Caicos, Anguilla, Montserrat—21,000
        pop.
       High standard of living: offshore banking
   French islands:
       some remain connected to colonial rulers and use this
        as an asset.
            Martinique, Guadeloupe and French Guyana are
             ―departments‖ of France (900,000 pop)
   Dutch former colonies
       Curacao, Bonaire, St. Martin, Saba, St. Eustatius
       ―Federation of the Netherlands Antilles‖
       Autonomous, yet part of the Kingdom of the
        Netherlands
                   US influence after 1898:
   Monroe Doctrine No tolerance for European
    powers in the Western hemisphere
   Spanish-American war 1898
   ―America‘s Backyard‖US asserts neocolonial
    control over persistent colonies of the English,
    French and Dutch
       ―Free it from European tyranny an foster democratic
        governance‖ BUT:
            Roosevelt: Panama canal and open sea-lanes
            Good Neighbor Policy (1930‘s)
            Alliance for Progress (1960‘s)
            Caribbean Basin Initiative (1980‘s)
            FTAA possibilities
                     Economic Development
   Decline of agriculture:
       Turbulent and declining commodity prices
       Decline in preferential trade agreements with
        former colonial countries
       Soils are overworked/No frontier
       Mechanization of sugarless labor needed
       Examples:
          Haiti
                 1955: 70% of foreign exchange through coffee
                 1990: 11%
            DR:
                 1955: 60% of foreign exchange through sugar
                 1990: 20%
                 Economic Development
                    Agriculture today

   Exception to complete decline: Cuba
             sugar 80% of foreign exchange 1950‘s-1990‘s.
              Diversification after 1989.
             Now Cuba grows about 30% of the world‘s coffee
   Coffee is grown by small producers
        Interspersed with subsistence crops
   Bananas
   NTEX crops
            Economic Development
           Bananas and Banana wars
   Banana production
             Most in CA
             Vulnerable to hurricanes,
             Still, several states are dependent on bananas (Dominica, St.
              Vincent, St. Lucia)
             Landowners are the laborers2-4x income
   1996: WTO case
        US, Mexico, Ecuador, Guatemala and Honduras sue EU
         over preferential trade agreements with Caribbean countries
        Exacerbated by consumer preferences
   Result: Non traditional exports:
        Okra, tomatoes, avocados, marijuana
                Economic Development
               Export Processing Production

   1950‘s in Puerto Rico ―Operation Bootstrap‖
       By 1970, 40% of GDP comes from manufacturing
       Today, 50%, but competition from other islands and
        locations is threatening PR‘s lead
   Other EPZ‘s or Free Trade Zones
       Jamaica—15% of GDP
       DR: ―Hong Kong of the Caribbean‖
       Map
DR EPZ/ free trade zones
                Economic Development
                       Offshore Banking
   Specialized services that are confidential and tax-
    exempt
       Localities make money through registration fees
   Began in Bahamas in 1920s
   Competition from other islands, Hong Kong and
    Singapore--Cayman Islands is current leader
       50,000 registered companies
       Est. Cayman banks $800 billion on deposit.
       Highest per capita PPP in region
   Concerns about corruption and money laundering
    of drug fundsreforms
       But still, drug influences=drug consumption, corruption
        and violence
       US raises new concerns about privacy after 9/11
Off shore banking
                     Economic Development
                           Tourism
   Began in 19th C.
   1930‘s: Cuba is a leader
       Bahamas distant second
   5 leaders:
       Puerto Rico:
          after commonwealth status 1952

          Largest home port for cruise lines

       Bahamas:
          30% of pop employed in tourism, mainly American

       Dominican Republic:
          many visitors are nationals who live overseas

          $2.5 billion, leading foreign exchange earner

       Jamaica
          $1.2 billion

       Cuba
                 Economic Development
                   Regional Initiatives

   Caribbean Basin Initiative
   CARICOM
       1973
       13 member states:
               Former English colonies
               Haiti
               Other associate members
       Caribbean Development Bank
       University of the West Indies
       Limited success
                    Modern Demographics
   Varied population densities
   Demographic trends
       Fertility decline
       Rise of HIV/AIDS
       Emigration ―Caribbean diaspora‖
            Barbadians--England
            Surinamese--Netherlands
            PR—NY
            Cubans—Miami
       Intraregional migration
            Haitians– DR
       Circular migration
       Chain migration
       Rural-Urban migration
                           Caribbean cities
   Initially, just administrative centers for business of
    the plantations
            Most people lived in rural areas
            Only Havana has extensive colonial architecture and urban design
             (the key colonial city in the region)
            Paramailbo (Suriname) looks like a tiny Holland
   Recent migrations caused by
       Mechanization of agriculture
       Offshore industrialization
       Rapid population growth
            Only 4 are >1 million (Santo Domingo 2.6 m; Havana 2.2 m; Port-
             au-Prince 1.5m; San Juan 1m)
   Modern cities reflect historical rural social and
    economic patterns:
       ―Houseyards‖
            Rural subsistence, economic survival, matriarchal social structure

				
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posted:7/21/2011
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Description: Puerto Rico Banking History document sample