Hey, we still produce very good coffee. And pineapples, mangos and citrons (though the citrons got badly wiped out by the last hurricane).
Sugar, though, is now dead, dead, dead. And good riddance. It’s no longer economically viable anyway.
Ag ain’t coming back as a mainstay, though it should be a bigger player. Our future economy has to be service/industrial whatever political direction we take. Ag doesn’t maintain 4 million people, at an over-1100/sq.mi (435/sq.Km) pop. density, living “wealthier” than the rest of Latin Am.
Actually our agriculture began a fast tailspin in the 40s when Muñoz and Moscoso brought in (a) the industrialization policy – industrialization based on US-Tax subsidies to low-wage industries but industrialization nonetheless (people LIKE regular wages) and (b) a huge do-everything, employ-anyone virtually social-democratic state apparatus where government corporations ran even a container-shipping line and the pineapple cannery. Yes, when Food Stamps arrived in the late 60s, that was the coup de grâce, but it was already sore wounded. (Moscoso also abetted an unspoken policy of incentivizing emigration to the continent).
Even before 1944, policies imposed during the period of US direct-colonial administration resulted in small farms being gobbled up by huge absentee-owner sugar estates. Interestingly, the owners and the workers were each the base of support for one or the other of two political/labor blocs that Muñoz wanted broken … and boy did he ever succeed.
It was really after the creation of USIRC Section 936 Tax Credits in 1974 that capital-intensive industries that states would find economically desirable (pharmaceuticals, technologicals) began emigrating into PR. Before that it had been mostly cheap-labor-intensive manufacturing (Sec. 931). It is at that point, when combined with making the Food Stamp program evaluate PRican incomes against the same scale as for the US at large – thus by definition making 2/3 of the population at the time eligible, whether or not they needed it to live – that the whole scenario ralph describes applies, with a dependency culture in the underclass; and for the middle class, US-subsidized (thru tax breaks) industrialization, but no real plan by anyone to turn it into something self-supporting, as if the subsidy would go on forever. The one government that attempted to partly dismantle the “do-everything” state (1993-2000) did not have the political guts to really cut the total payroll, every attempt to divest resulted in accusations that they were trying to “destroy our heritage”, and the privatization program they started ended up stained by some projects actually ending up costing MORE, and some others being overrun by corrupt practices.
On the plus side, the Welfare Reform laws passed in the US in the 90s do apply to PR (no more whole-life welfare) AND the 93-00 admin. didn’t fight the repeal of Section 936 – its phaseout ends precisely this Fiscal Year – in part because they indeed wanted to end the commonwealth (were pro-statehooders). So THAT cost to the US taxpayer has been cut.
Financial services, telecoms and transhipment industries (and even some of the technologicals!) seem to be handling well the phaseout of that tax break, if we avoid futzing them up we stand a fighting chance.