![]() |
|
![]() |
|
|
|
|
1. On the Fringes of Empire, 1500-1898
Geographical Position: Doorway to the Caribbean
18.15 N, 66.30 W
| Due to Its Geography, Within the Spanish Empire Puerto Rico was an Important Part of the Defense of Empire |
2. Defense of the Empire
IMPERIAL DEFENSE:
|
![]() |
3. Economic and Social Outpost of the Empire
Economic and Social "Outpost of Empire:"
|
![]() ![]() |
4. On the Fringes of a New Empire, 1898
US Continental Expansion Culminates in Expansion Overseas
![]() |
![]() |
|
|

In 1947 the first popular elections for Governor of Puerto Rico take place and Luis Muñoz Marin is elected for the first of his 4 terms. He continues to refine the relations between the United States and Puerto Rico, now defined as the freely associated state.
US Code Section 936
That same year, section 936 section of the United States Internal Revenue Tax Code was implemented. This new code allowed American companies to make profit in the island without paying Federal taxes. Banks on the island experienced an unprecedented growth. About 100,000 Puerto Ricans were directly dependent on employment generated by Section 936 companies.
In a greater sense, Section 936 also created a much larger consumer society that continues to develop to this day. Section 936 was arguably the singlemost important factor in Puerto Rico's modern economic development.
Some of the first investments generated are the pharmaceutical companies which flood the island. Later, manufacturing companies such as Procter and Gamble enter the economy.
Currently, Section 936 has been replaced with Section 30A, maintaining the tax breaks for another ten years.
As the Puerto Rican Governor's website proclaims, "The island has one of the largest concentrations of pharmaceutical companies in the world, as well as factories that produce everything from women's lingerie to computer parts, from perfumes to pacemakers."
Some Links to Puerto Rico Sites:
La_Borinquena
La Fortaleza: Office of
the Governor of Puerto Rico
Statehood Site
Puerto Rican
Politics
US
Code Section 936 Text
Puerto Rico
Herald Economics of Statehood
SENATE
ENERGY AND NATURAL RESOURCES COMMITTEE:
S.
472, PUERTO RICO SELF-DETERMINATION ACT
WORKSHOP
1 (COMPLETE TRANSCRIPT) APRIL 2, 1998