Operation Bootstrap
Operation Bootstrap was a transformative initiative launched in 1947 by the United States and Puerto Rican governments aimed at modernizing Puerto Rico's economy. Prior to the program, Puerto Rico primarily relied on agricultural exports, but the operation sought to attract industrial investment from the U.S. mainland by offering various incentives, including tax exemptions and cash grants for companies. This effort was part of a broader agenda to improve health, education, and living standards on the island while also addressing unemployment.
Led by the Popular Democratic Party under Luis Muñoz Marín, Operation Bootstrap facilitated the establishment of numerous manufacturing industries, significantly boosting job creation. By 1958, over five hundred factories had opened, leading to a remarkable increase in production and a substantial rise in per-capita income. The influx of American companies also resulted in cultural exchanges, contributing to the spread of U.S. Anglo culture on the island.
The economic changes spurred by Operation Bootstrap prompted a significant migration of Puerto Ricans to the mainland United States, particularly to New York City. The Puerto Rican population on the mainland soared from under 70,000 in 1940 to over 615,000 by 1960, highlighting the program’s profound impact on both the local economy and demographics.
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Operation Bootstrap
Operation Bootstrap was a program instituted by the United States and Puerto Rican governments in 1947 for the purpose of transforming the island of Puerto Rico—a US territory lacking natural resources whose economy was based largely on the exportation of agricultural products—into a modern urban-industrial economy by attracting industrial investment from the US mainland. Incentives offered included freedom from island taxes, cash grants for operational costs, and assistance with site location. In addition, new companies would benefit from the island’s federal income tax exemption, and exports to the mainland would be free of tariffs.
This program was part of a comprehensive plan not only to modernize industry but also to improve the health and education of the population, relieve unemployment, elevate living standards, and improve the island’s infrastructure. The endeavor was initiated by the Popular Democratic Party (PPD), led by Senator (later Governor) Luis Muñoz Marín (1898-1980), which had gained legislative control of the island government in 1940. In 1942, the government established several industries that manufactured products previously imported. It was hoped that these enterprises would stimulate private-sector economic initiatives. In 1947, as a result of several factors (including limited available capital), these were sold to private island interests, and the new policy, Operation Bootstrap, was instituted.
In 1950, legislation established the Puerto Rico Economic Development Administration (PREDA) and its subsidiary, the Puerto Rico Industrial Development Company (PRIDCO, known as FOMENTO in Spanish). This agency established offices in major mainland cities, conducted research, and devised programs to attract new industries. By 1958, five hundred new factories were located on the island, adding tens of thousands of new jobs. From 1940 to 1955, island production increased 120 percent, averaging more than 6 percent annual growth. During this same period, per-capita income increased 300 percent. Accompanying these economic dividends significantly improved the life expectancy and literacy of the Puerto Rican population.
The establishment of facilities in Puerto Rico by more than five hundred mainland corporations contributed to the diffusion of US Anglo culture throughout the island. The resulting familiarity with mainland culture and products, in combination with high island unemployment, a booming post-World War II economy on the continent, and inexpensive transportation, resulted in a massive migration from Puerto Rico to the mainland United States, primarily through New York City. Puerto Rican immigrants residing on the mainland increased from fewer than 70,000 in 1940 to more than 615,000 in 1960.
Bibliography
Ayala, César J., and Rafael Bernabe. Puerto Rico in the American Century: A History Since 1898. U of North Carolina P, 2009.
Dietz, James L. Puerto Pico: Negotiating Development and Change. Rienner, 2003.
Flores, Lisa Pierce. The History of Puerto Rico. Greenwood, 2010.
Korrol, Virginia Sanchez. "The Story of US Puerto Ricans: Part Four." Center for Puerto Rican Studies. Hunter College, 2010.
Meléndez-Badillo, Jorell. Puerto Rico: A National History. Princeton U, 2024.
Nittle, Nadra. "Operation Bootstrap: Empowering the African American Community through Entrepreneurship." PBS, 19 Nov. 20219, www.pbssocal.org/shows/lost-la/operation-bootstrap-empowering-the-african-american-community-through-entrepreneurship. Accessed 10 Oct. 2024.
Toro, Juan. "Puerto Rico’s Operation Bootstrap." Brown University, library.brown.edu/create/modernlatinamerica/chapters/chapter-12-strategies-for-economic-developmen/puerto-ricos-operation-bootstrap. Accessed 10 Oct. 2024.