Wednesday, March 2-8, 2022 - // no. 149
Local issues to worsen with war in Europe P8 Russia seeks to circumvent sanctions P9 Opinion: Supporting PREPA’s restructuring is the right thing to do P10
Puerto Rico and the Caribbean
www.theweeklyjournal.com
Can Puerto Rico reclaim its lead in pharmaceutical manufacturing?
The government and the private sector have been lobbying for incentives for this industry
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Juan A. Hernández, The Weekly Journal
The muscle car: a vanishing breed P14
fter Section 936 of the U.S. Internal Revenue Code was finally phased-out in 2006, Puerto Rico entered into a recession that has lasted until today. The American companies that had benefited from the tax exemption granted under Section 936 started to flee from the island –particularly pharmaceutical companies– in search for more “tax friendly jurisdictions” where to set shop.
When President Bill Clinton signed the repealing of Section 936 in 1996, it heralded the end of Puerto Rico’s manufacturing saga. What had been, arguably, an efficient tool to promote the economic development of the island, via a generous tax exemption since its inception in 1976, had lost its luster less than 20 years later and was perceived as a mechanism for big corporations to avoid paying taxes. During the time Section 936 was in place, Puerto Rico went from an international pharmaceutical GO TO PAGE 4
The Weekly Journal > Wednesday, March 2, 2022 > 2
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a week in review Nike to step away from Foot Locker
> Courtesy: Ponce Municipal Government
> Courtesy: Nike
Nike, the athletic shoe giant, is pulling out the bulk of its merchandise from Foot Locker’s stores as part of its decision to move its marketing to “Direct to Consumer” (DTC). Nike, who had been responsible for up to 75% of Foot Locker’s purchases in 2020, has been decreasing its share consistently. In 2021 purchases dropped to 70%, and total purchases for 2022 are expected to be down to 60%. According to Foot Locker’s CEO Dick Johnson, Nike’s decision could stem from an “accelerated strategic shift to DTC,” but also as a consequence of Foot Locker’s own diversification efforts. Still, Johnson assured his company will maintain a “strong relationship” with Nike, keeping a significant partnership in categories such as basketball. Since 2020, Foot Locker used to lean heavily on some popular Nike products, which despite yielding great sales, acted against Foot Locker’s aim of being a “house of brands.”
Private sector employment increase in Ponce
Assistance for small businesses in Puerto Rico
The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) reported a significant increase in the number of new jobs in 2021 for the municipality of Ponce. According to BLS statistics, 9,148 new jobs were created in 2021, for an 11.79% increment when compared to 2020. “We’re looking at a solid recovery from the pandemic during our first year in office… From a difficult and somber outlook, the city now shows optimism,” said Ponce mayor Luis M. Irizarry. The economic sector that generated the most jobs in Ponce in 2021 was tourism, with 12.5%. Other sectors topping the chart were: logistics and transportation, with 4.6%, and manufacturing, with 4.5%. According to the BLS, the only sector registering a decrease in the number of jobs was the government, which reported a 1.7% contraction. According to Jean Paul González, director of the Department of Municipal Economic Development, this increment will continue for the remaining of 2022.
Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902
Foundation for Puerto Rico (FPR) and the U.S. Small Business Administration (SBA) announced their latest collaboration to support close to 150 small businesses in Puerto Rico’s northern region, as part of the Community Navigators Pilot Program. With the launch of PULSO, FPR and SBA will help reduce the barriers that underrepresented and underserved entrepreneurs face in accessing the programs and services that they need to recover, grow, or start their businesses. As Community Navigators, FPR will assist visitor economy-related small businesses, particularly in the municipalities of Arecibo, Barceloneta, Camuy, Dorado, Florida, Hatillo, Manatí, Toa Alta, Vega Alta and Vega Baja. Following a “Hub and Spoke” model, collaborating organizations, such as “Colmena66,” “Centro para Emprendedores,” “INprende,” Brands of Americas and Latino Economic Development Center, will provide training services, technical assistance and access to resources for the selected participants. The program will run for two years, with three calls for participation in February, August, and December. The first cohort applications are now open until March 26th.
President Salvador Hasbún shasbun@elvocero.com
VP of Accounting Félix A. Rosa frosa@elvocero.com
Human Resources Director Arlene Rolón, PHR arolon@elvocero.com
Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com
VP of Production Eligio Dekony edekony@elvocero.com
VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com
Multi-Platform Graphic and Technology Director Héctor L. Vázquez hvazquez@elvocero.com
Phone: 787-622-2300, 787-721-2300
Multi-Plataform Digital Director María Arce marce@elvocero.com
Customer Service: 787-622-7480
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CONTINUED FROM PAGE 1
scramble for drugs, for PPE (personal protective equipment), there was a scramble for ventilators. And where were we looking to? We were looking to manufacturing giant to a minor player in a vital China… we were looking to India… we were looking industry. Or is it really so? outside because all major manufacturers were Since the repealing of Section 936, both no longer in the U.S.,” DePhillips recalled during the government and the private sector have the Puerto Rico Pharmaceutical Manufacturing been lobbying for some form of incentive for Summit. the pharmaceutical industry to bring back the In the wake of the pandemic, the question manufacturing operations that went abroad. seems to be if the U.S. For Christopher P. DePhillips, government is committed to Senior Vice President of Porzio “re-domestic” the life sciences Life Sciences, a provider of industry. For DePhillips the compliance solutions to the life answer is “yes,” and once the sciences industry, it is entirely decision is made, Puerto Rico possible for Puerto Rico to regain China runs with a definitive advantage. its former leadership in the manufactures 97% Along with the recurring pharmaceutical manufacturing of the ingredients for arguments that the island has industry, if some specific antibiotics consumed the necessary infrastructure and conditions are met. in the United States. trained workforce, DePhillips “This is a national security mentioned the fact that Puerto issue,” DePhillips argued. “Since Rico still manufactures more 936 went away more and more pharmaceuticals than any other manufacturing has gone abroad jurisdiction in the U.S. to Ireland, India and China. According to statistics from the U.S. Food and Do you know China manufactures 97% of the Drug Administration (FDA), 8% of everything ingredients for antibiotics consumed in the U.S.? Americans spend on pharmaceuticals are drugs That is a terrifying statistic.” manufactured in Puerto Rico. According to the Porzio executive, “if the “The bad news is that many of these COVID-19 pandemic taught us anything, it is that we need to “re-domestic” the life sciences industry” manufacturers went away. But they didn’t go away completely, and they are more than in because the security of the U.S. is at risk. any other state. So, there is the talent, there is “If we think back in March 2020, there was a
In fact,
This is a national security issue. Since 936 went away, more and more manufacturing has gone abroad to Ireland, India and China. Chris DePhillips Senior Vice President, Porzio Life Sciences
the infrastructure, there is the ability, and yes, there are the incentives. The question is whether Washington is serious about following through on that priority,” DePhillips questioned. Attorney William J. Hughes, principal at Porzio, Bromberg & Newman, pointed out that Puerto Rico currently produces “twice as much” [pharmaceuticals] as its next state competitor, which is the state of Indiana. “It all comes down to the first question: is Washington serious about making ‘redomestication’ a priority? And the only way they are going to be able to effectively compete against those low tax jurisdictions is with tax incentives,” Hughes argued.
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legislation to incentivize manufacturing can be replicated in other parts of the U.S., he is aware that many members of Congress do not want to do anything that could benefit Puerto Rico. But then again, why Puerto Rico and not some other state? “Puerto Rico still has the deepest pharmaceutical manufacturing infrastructure, when compared to any other state in the U.S. Puerto Rico is still dominant Could Section 936 Be should it be compared to North Carolina, New Jersey or Reinstated? Massachusetts,” said DePhillips, With the repealing of the who was quick to admit that 936 tax incentives, Puerto even though the infrastructure Rico lost its market share in Puerto Rico is still here, “it needs to be the pharmaceutical industry. currently produces modernized.” Companies opted to move their twice as much Hughes coincided and operations abroad, seeking the [pharmaceuticals] emphasized tax incentives are tax benefits Puerto Rico no longer as its next state also needed. offered. competitor, which is “In order to compete The state-run economies in the state of Indiana. effectively with those low tax China and India benefit from the jurisdictions, we need the government pumping billions incentives. The government of dollars into the industry, has taken a good step towards thus effectively controlling the that with the 15% global minimum tax, which industry. Ireland’s economy, on the other hand, is would put everybody on a leveled playing field. free market-based, and it is its tax incentive policy The next step should be how to incentivize those –its corporate rate tax is almost zero– what has pharmaceutical companies to abandon what attracted the manufacturing companies. they have already established [abroad] and come “That is why we need tax incentives –new tax here,” Hughes said. incentives or maybe old tax incentives– back But for the lawyer, there will be no “rein place in the U.S. to move Puerto Rico into its domestication” unless Washington makes it a former position of leadership [in the industry],” priority. said DePhillips. For DePhillips, Puerto Rico can no longer be Nevertheless, the executive admitted that while In June 2021, the White House released a report titled “Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering BroadBased Growth.” The reported stated, “dependence on foreign nations has been cited as a key vulnerability for the U.S. drug supply chain.” It begs the question, then, whether Puerto Rico can revitalize its pharmaceutical industry and regain its position in the market.
In fact,
It all comes down to the question: is Washington serious about making ‘re-domestication’ a priority? And the only way they are going to be able to effectively compete against those low tax jurisdictions is with tax incentives. William Hughes Principal at Porzio, Bromberg & Newman
viewed as a foreign country and must be part of the strategic plans of the U.S. “Puerto Rico is part of the U.S. and the states and Washington need to work with Puerto Rico in a unified strategic plan to compete with Ireland, India and China… This [Puerto Rico] is the logical place to be. We already have the guts of the industry here,” he said.
Infrastructure
Questioned about whether the island’s infrastructure could dissuade investment because of its unreliability, Hughes admitted it needs modernizing, but pointed out such a project is already underway. “There are some $13 billion in CDBG funding that are coming into the island and there is also the commitment of the Army Corps of Engineers and the Biden administration…,” Hughes said. The counselor also pointed out that these pharmaceutical companies, and many other manufacturing companies, already have alternative sources of energy production. Hughes cited as an example the Coca-Cola plant, which operates its own power plant. “It must be noted that many of these pharmaceutical companies are not running on PREPA or LUMA Energy. They are running on EcoEléctrica, So, that infrastructure [for alternative energy sources] is already there, or capable of being there,” Hughes added. “Plus, other alternative energy sources are being considered, such as micro-grids and portable nuclear reactors.”
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Restoring Domestic Pharmaceutical Manufacturing is a National Security Issue According to her, the U.S. cannot wait on India and China to receive essential supplies - we need a national stockpile.
The MMEDS Act could make Puerto Rico a life science hub for Latin America
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MMEDS Act in Puerto Rico
Zoe Landi Fontana, The Weekly Journal
.S.
Congresswoman Jenniffer González-Colón discussed the viability and potential benefits of building up Puerto Rico’s pharmaceutical manufacturing industry, at a recent pharmaceutical manufacturing summit held by Porzio Life Sciences (PLS) which focused on expanding domestic manufacturing capabilities as an issue of national security. The White House’s June 2021 report on American manufacturing and broad-based growth identified dependence on foreign nations as a key vulnerability, especially for the U.S. drug supply chain. “The COVID pandemic spread has emphasized the need to bring back pharma manufacturing operations to U.S. soil after Asian suppliers couldn’t meet market demands for medical equipment and products due to supply chain issues and other factors. Puerto Rico’s proven track record, skilled workforce among other critical elements, positions the Island favorably as an ideal location for these operations,” explained Christopher de Phillips, Senior Vice President and Chief Operating Officers for PLS. To this end, González-Colón’s Medical Manufacturing in Economically Distressed Zones Act (MMEDS), would provide incentives in the United States’ and possessions’ economically distressed areas to restore domestic medical manufacturing activity. Puerto Rico’s pharmaceutical manufacturing
Puerto Rico has the capacity, labor, experience, and infrastructure to become a national hub for the production of medical equipment and medicines, attracting manufacturers and pharmaceutical companies located abroad. Jenniffer González-Colón Congresswoman
landscape was built on the incentives provided by Section 936, dating back to the 1970s. Having been completely phased out by 2016, Congresswoman González-Colón believes that a new set of incentives must be implemented for the rebirth of the industry on the island. “We cannot solve our economic problems by repeating solutions that have not worked in the past,” U.S. Congresswoman González-Colón said.
The MMEDS Act could make Puerto Rico a life science hub for Latin America. It would create jobs and bring in investment in infrastructure, promote new drug innovation, and promote domestic manufacturing. “Puerto Rico has the capacity, labor, experience, and infrastructure to become a national hub for the production of medical equipment and medicines, attracting manufacturers and pharmaceutical companies located abroad. Thus, we secure the national supply chain and boost our economy with well-paying jobs,” explained González-Colón. She further emphasized that, unlike other bills, the MMEDS Act is not for bolstering corporate welfare. Rather, it will provide support in receiving permits, streamline the research and development processes, and expand domestic manufacturing industry capabilities, creating a national medical supply chain that will protect the US’s most vulnerable populations and accelerate the development and production of population health medicines. By relocating large pharmaceutical and medical device manufacturing companies to economically distressed zones, a category under which Puerto Rico falls, large investments would be made into the area. Eventually, this would theoretically lead to a transition into a stronger economic zone by generating well-paying jobs. Since 2020, González-Colón has emphasized in Congress, Puerto Rico’s expertise and capacity to become a cornerstone of manufacturing for the U.S. The Biden Administration’s Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-based Growth plans would be improved with the addition of the bicameral MMEDS Act.
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The Metro Women’s Business Center Opens in Bayamón
The center brings the city closer to its “Smart City” goals
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Zoe Landi Fontana, The Weekly Journal
he Metro Women’s Business Center (MWBC) was inaugurated in Bayamón thanks to Friends of Puerto Rico (FOPR), the Small Business Administration (SBA), and the University of Puerto Rico (UPR) Bayamón Campus. The center will support entrepreneurial women with networking opportunities, workshops, and tutoring on various business matters, including start-ups, financial management, marketing, and procurement. The female demographic is the most vulnerable to social and economic inequality. Per the municipality’s numbers, a 62% increase in cases of gender-based violence was recorded in the first six months of 2021. This further exacerbates the cycle of poverty that most affects U.S. Congresswoman Jenniffer González Colón inaugurates the Metro Women’s Business Center (MWBC) in women who live in homes with a median annual Bayamón. income of less than $14,000. “Women entrepreneurs are starting businesses The Bayamón campus is ideal for the new at a high rate, and we are excited to have this Metro Women’s Business Center. The city business center for women on the island. It is is focusing on becoming a “Smart City” by essential to continue to support our women supporting courses in STEM on its UPR campus, entrepreneurs with specialized services beyond having the first Science and Industry Park on the our resource partners. The MWBC seeks to island, and now by opening the empower women to take control Metro Women’s Business Center, of their lives and drive their own which joins a network of 135 success,” said Angelique Sina, other centers, including one on president of the FOPR. the Gurabo campus of the Ana G. The most recent data released Méndez University. In Puerto Rico, by the Senate Committee on 53% of private Small Businesses indicates that Action in Congress employees represent in Puerto Rico, 53% of private Congresswoman Jennifer businesses with less employees represent businesses González, who participated of than 100 employees. with less than 100 employees. the ribbon-cutting of the MWBC Source: Senate “Small and medium-sized Angelique Sina President, FOPR center in Bayamón, is working Committee on enterprises are the backbone to pass a bill that will amend the Small Businesses of Puerto Rico’s economy,” said Small Business Act to further Josué E. Rivera, District Director benefit underprivileged women. of the SBA. “In this historic address small business concerns for businesses Bill H.R. 6441, or The Women’s moment for the business owned by women, especially for those who Business Centers Improvement ecosystem in which we live, are socially and economically disadvantaged. Act of 2022, was recently introduced in 2021. If SMEs are becoming more important in ensuring Bill H.R. 6441 would develop the resources to passed, the law would provide an additional $40 fair and equitable economic growth. We will help women succeed in business by supporting million for the program to expand its services. reactivate the island by leveraging SMEs, and them wit h financial, managerial, and marketing These funds will provide for further women play an essential role in that recovery assistance. entrepreneurial counseling and training to and growth of the economy.”
In fact,
It is essential to continue to support our women entrepreneurs with specialized services beyond our resource partners. The MWBC seeks to empower women to take control of their lives and drive their own success.
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Possible Impacts of the War in Ukraine on Puerto Rico
Economist José J. Villamil presents options for the future
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Zoe Landi Fontana, The Weekly Journal
he impact of the Ukraine war on Puerto Rico will be felt in the ripple effects the crisis will have on the global economy as a whole. THE WEEKLY JOURNAL spoke with José J. Villamil of Estudios Técnicos for his insights on how various outcomes of the war in Ukraine could affect Puerto Rico. His main takeaway: “Integration makes for greater efficiency, but also for greater vulnerability.” In the short term, Puerto Rico will see an exacerbation of preexisting issues. Consumer prices will go up and inflationary pressures will increase - as has been seen in the first few months of this year already. Last year, construction material costs went up 40%; the price of PVC alone increased by over 200%. These pressures have been present since the pandemic hit, but the war in Ukraine will add yet another hurdle to the local economy’s recovery, still recuperating from Hurricanes María and Irma and COVID-19. “In the short term - one to two years - we should see high prices for food, fuels, and materials such as steel and aluminum,” said Villamil, “In the long term, we will see the changing of geopolitics, global composition, and power relationships.”
Shifts In The ‘Globalization’ Paradigm
“The whole process of globalization has changed. When discussions on globalization began in the 70s and 80s, the idea was that globalization was the expansion of the European and Western model to the rest of the world,” explained Villamil, “What is very clear now, is that the globalization
Status is an instrument, it’s not an end in itself. Looking at it that way, we have to understand what is waiting at the other end. José J. Villamil Economist
estimated 4.8 billion barrels of unleaded gasoline from Russia - representing about 17% of total imported gasoline. A shift to renewables, Villamil says, is practically an emergency issue. “The Ukraine situation has made it abundantly clear. The world is so integrated, the global economy, that it is very difficult to do things like, for example, sanctioning Russia by prohibiting their exports of petroleum and natural gas. Eliminating SWIFT for the Russians also implies a great deal of disruption for Western European countries and the US,” Villamil commented.
Puerto Rico’s Status
If, as a result of the conflict, the US is revealed to process still exists, but the key actors are very no longer be the world’s dominant power, Puerto different: We have China and other players.” Rico will have to reassess its relationship with the What is apparent, is that the volatility in the U.S. In discussions on Puerto Rico’s best options global scenario will probably for the future, no one is putting remain for a while, and Puerto into the equation the changes in Rico will have to continue to the United States. evolve in an unstable and volatile “We still have this idealized environment. Thus, the island’s version of the U.S. in the 1950s According to leaders must take steps to stable, consensus on social issues, data published by minimize such volatility. growing rapidly - and Puerto Rico the FOMB, Puerto Villamil identified some of these merited respect in Washington. Rico received an steps as a rapid transition to That relationship is no longer estimated 4.8 billion non-fossil fuel energy bases and there - Puerto Rico is not a model barrels of unleaded moving towards a more diversified and the U.S. is divided, race issues gasoline from Russia economy, which would naturally are cropping up again,” said - representing about create a larger risk buffer in case Villamil. 17% of total imported of other global crises. In the economist’s opinion, gasoline, in fiscal year In addition to positive the island should be closely environmental effects, the other 2021. watching these changes. All positive dimension of renewable movements - proponents of energy is that it doesn’t rely statehood, commonwealth, and on imports. Puerto Rico is still independence - should be looking dependent on natural gas at what is going on in the U.S. and petroleum imports from Russia and other mainland and decide what will be best for Puerto European countries. It’s worth noting that in the Rico in the long run. fiscal year 2021, according to data published by “Status is an instrument, it’s not an end in itself. the Financial Oversight and Management Board Looking at it that way, we have to understand what for Puerto Rico (FOMB), the island received an is waiting at the other end,” advised Villamil.
In fact,
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Russia eyes sanctions workarounds in energy, gold, crypto Putin expected to move funds through smaller banks and accounts of elite families
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Fatima Hussein The Associated Press
he harsh sanctions imposed on Russia and the resulting crash of the ruble have the Kremlin scrambling to keep the country’s economy running. For Vladimir Putin, that means finding workarounds to the Western economic blockade even as his forces continue to invade Ukraine. Former Treasury Department officials and sanctions experts expect Russia to try to mitigate the impact of the financial penalties by relying on energy sales and leaning on the country’s reserves in gold and Chinese currency. Putin also is expected to move funds through smaller banks and accounts of elite families not covered by the sanctions, deal in cryptocurrency and rely on Russia’s relationship with China. Presently, “the biggest two avenues that Russia has are China and energy,” said John Smith, former director of Treasury’s financial intelligence and enforcement arm.
China announced last week that it would allow imports of wheat from all parts of Russia for the first time. However, Smith said the Chinese and others “will be driving incredibly hard bargains” now that Russia has fewer willing buyers, and China will want to avoid being subject to secondary sanctions or sanctions violations enforcement. This week, the U.S. further tightened its sanctions to immobilize any assets of the Russian Central Bank in the United States or held by Americans. The Biden administration estimated the move could impact hundreds of billions of dollars of Russian An increased funding. reliance on The latest measures did cryptocurrency will include a carve-out that be an inevitable authorizes energy-related avenue for Russia transactions with the bank. The to try to prop penalties also do not impact up its financial Russia’s gold stockpile, which transactions. Putin has been accumulating for several years.
In fact,
The Economic Sanctions
The U.S. and EU have levied sanctions on Russia’s biggest banks and its elite, frozen the assets of the country’s Central Bank located outside the country, and excluded its financial institutions from the SWIFT bank messaging system — but have largely allowed its oil and natural gas to continue to flow freely to the rest of the world. While Russia is likely to turn closer to China to make up for lost supplies of goods and services it normally would get from the West, Smith said, “they’re also betting that their enormous energy supplies will continue to be in demand, particularly during this cold winter. There’s significantly more profit to be made from their energy if they can get it to market.” Last month, Russia and China signed a 30year deal that will allow Russia to supply gas to China, though the pipes to carry that gas won’t be completed for at least three years. In addition,
Cryptocurrency
An increased reliance on cryptocurrency will be an inevitable avenue for Russia to try to prop up its financial transactions, said David Szakonyi, a political science professor at George Washington University, “but it’s unlikely it’ll serve as a substitute for corporate transactions over time.” Ari Redbord, a former Treasury senior adviser who heads government affairs at TRM, which among other things develops analytics on financial crimes, said his organization has identified at least 340 businesses in Russia that could be potentially used as “on and off ramps” for cryptocurrency. Redbord said that because of the breadth of the
They [Russians] are also betting that their enormous energy supplies will continue to be in demand, particularly during this cold winter. There’s significantly more profit to be made from their energy if they can get it to market. -John Smith Former director, Treasury’s financial intelligence.
sanctions, the amount of crypto that Russia would need to replace the billions of sanctions “would be very difficult to off-ramp into traditional currency.” Ori Lev, who served as a head of enforcement at Treasury’s Office of Foreign Assets Control during the Obama administration, said that overall, “whether it’s using cryptocurrency or relying on China, there are mitigating actions they can take, but they can’t recreate the financial system.” The Biden administration has argued that China won’t be able to make up for the loss of U.S. and European business and that sanctions cutting Russia off from Western sovereign debt markets will be crippling. At the same time, the White House has sought to publicly make the case that Beijing coming to the rescue of Moscow could be detrimental in the long term for China’s reputation in Europe and around the globe.
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Justin Peterson,
Financial Oversight and Management Board Member
Lawmakers: Enabling PREPA’s RSA is the Right Choice
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uerto Rico is poised to exit bankruptcy this year. This is an excellent development, and something that I’m particularly proud of as a member of the Financial Oversight and Management Board for Puerto Rico (FOMB). The Plan of Adjustment significantly reduces the amount of debt owed by Puerto Rico, protects pensions and prevents overborrowing by future governments. Ending bankruptcy will also supercharge the flow of outside investment into the island. This investment will bring jobs, raise income levels and expand the tax base, providing more funds for investment into teachers, police, and Puerto Rico’s future. This is all good news, but there is still more work to be done. The biggest task the FOMB and the elected leaders of Puerto Rico now face is the Puerto Rico Electric Power Authority (PREPA). PREPA remains in bankruptcy, and, along with the Highways and Transportation Authority (HTA), represents the last major restructuring needing to be undertaken by the FOMB. PREPA’s bankruptcy and its record of abject failure was brought about by years of mismanagement and neglect. Puerto Rico’s citizens deserve more reliable, more affordable and cleaner energy. Unfortunately, PREPA hasn’t provided this. The utility has systematically ignored the maintenance of its asset base and has been more focused on responding to crises than preventing them. The Restructuring Support Agreement (RSA) was developed by the FOMB to provide a pathway out of bankruptcy for PREPA and to transform Puerto Rico’s power sector. The RSA provides for a 32% cut in the debt owed by PREPA, resulting in annual savings of $375 million for Puerto Rico’s ratepayers. Notably, one of the most important features of the RSA for consumers in Puerto Rico is that it will lock in the transition
It’s my sincere hope that Legislators will ignore the unscrupulous individuals peddling fake news about a “sun tax,” rise above politics and stand up for Puerto Rico’s power consumers by approving the legislation.
charge, the mechanism by which PREPA will pay the debt that it owes, so that any decline in demand for electricity will be borne entirely by the bondholders – not by ratepayers. Like the Commonwealth’s Plan of Adjustment, the RSA is a good deal for Puerto Rico, which still provides a mechanism for bondholders to be paid what they are legally owed. Despite the RSA’s many benefits, some of its critics have resorted to demagoguery by falsely labeling it a “sun tax.” As I publicly stated last fall at a public meeting of the FOMB, this is nothing more than propaganda that ultimately hurts Puerto Rico by hindering the restructuring and transformation of PREPA. In
fact, ending bankruptcy at PREPA is a necessary component of this transformation that will bring more reliable, affordable, and clean energy. Currently, Puerto Rico utilizes highly inefficient bunker fuel for much of its power generation. It’s hard to overstate the economic impact of this on Puerto Rico’s consumers in an era of rising fuel costs, let alone the impact to Puerto Rico’s environment by delaying a transition to cleaner forms of energy. Savings from power generation could reach $25 million annually in the near term, and $175 million annually in the medium to longer term. These savings will translate into lower energy bills for Puerto Rico’s
consumers. But none of this will happen if the demagogues who are opposing the RSA get their way. Right now, the Puerto Rico Legislature is considering legislation that would enable the RSA. It’s my sincere hope that Legislators will ignore the unscrupulous individuals peddling fake news about a “sun tax,” rise above politics and stand up for Puerto Rico’s power consumers by approving the legislation. A failure to do so won’t stop the FOMB from finishing the job of restructuring PREPA and paying bondholders who have received nothing for eight years. But it will make the process more expensive for Puerto Rico. As my favorite president Ronald Reagan once said, it’s time for choosing. Let’s hope Puerto Rico’s leaders choose well. *The Financial Oversight and Management Board for Puerto Rico was created under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) of 2016. The purpose of the Oversight Board is to provide a method for Puerto Rico to achieve fiscal responsibility and access to the capital markets.
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Tips for caring for your dog’s skin and hair
The quality of the coat is influenced by several factors
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Dr. José Arce, DVM
pet’s fur is the first thing you see or touch, and its condition may be a reflection of its health. The quality of the coat is influenced by several factors, the most important being genetic, nutritional, proper grooming and the absence of diseases that can affect it. The better hair the parents of the pet have, the better their offspring will have. Genetics also influences the amount, thickness and length of the hair. In general, since Puerto Rico’s climate is always hot, dogs tend to regenerate and shed their hair throughout the year. However, in countries where there are notable seasonal changes, dogs usually have 2 changes per year, during which all the hair healthy coat of hair. Under these conditions, we falls out and a new coat comes out again, almost will have an animal with matte and opaque hair. always in autumn and spring. These hair changes The best nutrition for pets is well-balanced food are influenced by factors such as temperature, the made specifically for them, since it will have all number of hours of light per day, food, etc. the necessary components to There are dogs that spend a keep their fur in good health. My lot of time inside the house in recommendation is to consult air conditioning and exposed to your veterinarian about what more hours of light than what would be the most appropriate would naturally correspond, nutrition for your pet. therefore their body detects that The best a complete change of hair is not nutrition for Grooming so necessary and, therefore, they pets is a wellAs for grooming the hair, do it gradually throughout the balanced food each breed would need special year. Other dogs lose their hair made specifically care, depending on the type of more often than normal because for them, since hair their pet has. We cannot they are bathed excessively, or it will have all list the specific care that each with products not recommended the necessary one carries, but we can discuss for dogs, or even due to excessive components to keep general rules for all of them. hair drying after bathing. their fur in good For the bath, we must use Healthy hair reflects proper health. warm water and a shampoo nutrition. Hair is made of a designed specifically for dogs. protein called keratin, which We must rub their fur vigorously needs a correct intake of amino and then rinse abundantly so that acids in order to be synthesized. there are no traces of soap that Fatty acids, vitamins and minerals could cause skin irritation. We must be careful that also play an important role. There are many neither water nor soap enters the eyes and ears. nutritional anomalies, such as sudden changes in diet, giving excessive viscera, homemade diets that After bathing, dogs should be towel-dried and blow-dried while brushing, especially those with are generally poor in fatty acids, and giving raw or thick or long fur. All must be protected from the excessively cooked cereals or vegetables. These cold during the bath until they are completely dry. foods cause such an imbalance that the pet’s Bathing frequency varies by breed, coat length and body will not have enough nutrients to produce a
In fact,
The quality of the coat is influenced by several factors, the most important being genetic, nutritional, proper grooming and the absence of diseases that can affect it. thickness, and lifestyle. It is not true that a dog smells when not bathed. The dog’s odor comes from the areas of the mouth, ears, feet and anus. In the rest of the body, it does not have sweat glands, so it does not generate an odor. To avoid odor, those areas should be cleaned following your veterinarian’s recommendations and using products specifically designed to clean those areas, and you should brush them frequently. Don’t bathe your pet excessively, as this can upset the balance of natural oils in their skin and coat, causing them to itch. If you have questions about how often your pet should be bathed, any skin or coat condition, the type of shampoo to use, or what food you can give him to improve the condition of its skin or coat, consult your veterinarian. The author is a veterinary advisor for Royal Canin.
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/ Wednesday, March 2, 2022
Dior
Despite the glamour and optimistic moments, the conflict in Ukraine was still not far from fashion insiders’ minds
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Thomas Adamson, The Associated Press
ARIS — Dior’s affirmed feminist designer Maria Grazia Chiuri used the male gaze, as reflected in female oil portraits across the centuries, to make a fashion statement on female empowerment and subjugation. But Tuesday’s feisty ready-to-wear display in Paris, set in the splendid Tuileries Gardens, was also just a beautifully conceived collection — one of the Italian designer’s finest — which served to start Paris Fashion Week on strong creative footing. As editors entered, filing past myriad masterpieces, many expressed relief that the French government has ruled the face mask to no longer be obligatory at fashion shows. Yet despite the glamour and optimistic moments, the conflict in Ukraine was still not far from fashion insiders’ minds, and the Paris Fashion Federation offered a rare statement in support of freedom. Here are some highlights of fall-winter ready-towear shows.
DIOR
An installation of Leonardo da Vinci’s masterpiece “Lady with an Ermine” hanging in the entrance led fashion insiders, including popstar Rihanna, model Elle Macpherson and tennis ace Maria Sharapova, inside the venue to discover wallto-wall paintings. Though the art at first seemed more at home at the nearby Louvre Museum, on closer inspection the female subjects sported
Models wear creations as part of the Dior Ready To Wear Fall/Winter 2022-2023 fashion collection, unveiled during the Fashion Week in Paris. > Photo Vianney Le Caer/Invision/AP
Reimagines Feminist Fashion in History in Paris Show
Week, war has brutally hit Europe and plunged the contemporary jarring double eyes and seemed Ukrainian people into fear and upheaval.” to symbolize a sort of new female vision. This, He suggested that the show continue as creation the work of Italian contemporary artist Mariella itself is “based on principles of freedom, under any Bettineschi, was Chiuri’s starting block — one she circumstances. And fashion has always contributed used with flair to explore and deconstruct historic to individual and collective emancipation and female fashions. Corsetry, the 1940s bar jacket expression across our societies.” (the house signature), as well as sheer layering The federation issued a caveat — reimagined the codes of yesteryear. that you “experience the shows of But this time for Dior they were all the coming days with solemnity, and about protection or armor against in reflection of these dark hours.” the world. Head hung down combatively, STARS TURN OUT the first model sported a fierce, minimalist black bodysuit with white FOR OFF-WHITE lines — both like a skeleton and a The death of respected U.S. cutting pattern. Bright multicolor designer Virgil Abloh last year leather gloves evoked the form of still casts a shadow over the Paris 18th century styles to the elbow, fashion industry. Since his passing imagined in contrasting biker styles in November there have been two with padding at the knuckles. fashion tributes to him at Louis A silver bar jacket had dark Vuitton, where he was menswear sporty ribs. Corset-like tops had designer — the first in Miami, and fastenings made of plastic toggles, the second during the Paris men’s in one of a multitude of fashion collections. On Monday evening, his forward touches. A black perforated Rihanna poses for photogpersonal brand Off-White showed corset was stiff and impenetrable. its fall-winter show yet it seemed to raphers upon arrival at the There were many perfectly be more of a celebration of him that event. >Photo Vianney Le Caer/ executed moments, some of which Invision/AP anything else. even evoked a Japanese warrior. The posthumous show designed Chiuri was trying to say: Women have been by him was entitled “Spaceship Earth” — and in subjugated for so long, so now we’re going to use tune with the interstellar theme the stars turned those same clothes to empower ourselves. out in constellations: A$AP Rocky, Rihanna, Idris Elba and Pharrell Williams to name but a few. The signature hoodies, urban cargo pants, THOUGHTS FOR UKRAINE utilitarian toggles, fluorescent colors and It’s the elephant in the room at Paris Fashion statement branding were here in droves, often Week. As bombs fall in Europe, what is the in black and set against the decor of a giant justification for exclusive fashion collections chandelier. with perfume wafting in the air? There is none. But there were also bittersweet moments that However, Paris’s fashion body has tried to address seemed to reference the designer’s private battle this thorny point with a statement sent to AP of with a rare form of cancer. solidarity with Ukraine. Handbags came out featuring the print “more Ralph Toledano, President of the Fédération de life” and one replete with red and white pill la Haute Couture et de la Mode, said that as “the capsules. greater fashion family gathers for Paris Fashion
14
/ Wednesday, March 2, 2022
Enjoy the V8 muscle car while it’s still around
The twilight of the V8 coupe
I
Nick Yekikian, The Associated Press
t isn’t hard to see that the writing is on the wall for the V8-powered performance coupe. Tightening fuel economy and emissions standards, rising gas prices and the arrival of performance-oriented electric vehicles all point to the end of this famous automotive recipe. When the end will come, we don’t know exactly. But even Dodge CEO Tim Kuniskis acknowledged last year in an interview with CNBC that, “The days of an iron block supercharged 6.2-liter V8 are numbered.” So, the car enthusiast’s dilemma might be: Should I The 2022 Ford Mustang, an iconic pony car that has a few V8 engines to choose from. >Courbuy one now? Whether it’s their tesy of Ford Motor Co. via AP distinctive rumbly soundtrack The Challenger or sleek bodywork, these Challenger. It easily looks the re-creates the classic coupes manage to stir the soul. part and even offers not one American muscle car With that in mind, Edmunds’ but three different V8s. There’s experience and even editors took a look at the up to 807 horsepower at your offers not one, but V8-powered cars still on sale right foot’s disposal from the three different V8s. today and picked the best to supercharged 6.2-liter V8 in the highlight here. We’ve organized Hellcat Redeye, but our pick is the list in ascending order of the R/T Scat Pack Widebody. manufacturer’s suggested retail Its 6.4-liter V8 is good for 485 price, which includes the destination charge. horsepower, and the Widebody’s wider tires and flared fenders give the Challenger some added visual presence. This big coupe isn’t as nimble 2022 FORD MUSTANG around turns as the Mustang, but on the open road, The Mustang has had an undeniable effect As a larger sedan than its competition, the 2022 Dodge it sets the bar for big, silly fun. on American popular culture, automotive and Challenger is more suited to daily driving than perhaps Starting MSRP: $52,745 otherwise, for nearly 60 years. Today, the Shelby most V8 coupes. > Courtesy of Stellantis via AP GT500 sits atop the Mustang range with its 760-horsepower supercharged V8. However, just be the best-looking car on this list and it has an 2022 CHEVROLET CORVETTE the standard Mustang GT’s 450-pony 5.0-liter V8 exhaust note to match. The only drawback is the The Chevy Corvette has been powered by a V8 is a better value and a powerhouse in its own F-Type’s technology, which isn’t user-friendly and for the majority of its existence. Today, the Corvette right. Other advantages include many standard had a few issues in Edmunds’ testing. can be had with two V8s. The standard car features technology features and precise and grippy Starting MSRP: $72,450 a 6.2-liter unit that makes up to 495 horsepower. handling. On the downside, the Mustang’s rear seats If that isn’t enough to stir your coffee, the 2023 are quite cramped, but that’s a small price to pay to Corvette Z06 features the most powerful non2021 LEXUS LC 500 own this American icon. turbocharged V8 — with 670 horsepower — ever While most of the Lexus lineup is powered by Starting MSRP: $37,645 placed in a production car. The Z06 goes on sale late four- or six-cylinder engines, the LC 500 features this year. The latest Corvette’s mid-engine design has a 471-horsepower 5.0-liter V8. Unlike the brawny caused some visibility and ease-of-entry issues, but 2022 DODGE CHALLENGER Mustang or Challenger, the LC 500 is a luxurious all around the Corvette stands out with its exotic-like grand tourer that puts a premium on overall No other modern coupe better re-creates the performance. classic American muscle car experience than the excellence and long-haul comfort. Just don’t take too Starting MSRP: $62,145 many items with you on a road trip since the LC has the smallest trunk in this bunch. It’s also the most expensive car on our list. However, thanks to its sing2022 JAGUAR F-TYPE song V8 soundtrack and stunning interior design, the The Jaguar F-Type has been on sale since LC is worth the price. 2015, and Jaguar has tried an array of powertrain Starting MSRP: $94,625 combinations to try to sell it. For 2022, though, the The clock is ticking, though, and if you’re F-Type is V8-only. You can still have either a coupe or a convertible, with either rear- or all-wheel drive, interested in an eight-cylinder engine, you might want to act fast. too. The one to go for is probably the R-badged Tim Kuniskis, CEO for Dodge This story was provided to The Associated Press by coupe. Its supercharged 444-horsepower V8 isn’t the automotive website Edmunds. the most powerful option on this list, but it might
In fact,
The days of an iron block supercharged 6.2-liter V8 are numbered.
15
/ Wednesday, March 2, 2022
It’s been two years since the largest free festival and showcase of Louisiana music, food and culture has taken place in New Orleans’ French Quarter. The coronavirus pandemic forced organizers to cancel the event in 2020 and last year. >Kathleen Flynn/The Times-Picayune/The New Orleans Advocate via AP
French Quarter Festival
returns after two-year COVID hiatus to hear more than 260 acts that will perform on the festival’s 20 stages from April 21 through April 24. The event will kick off three straight weeks of music as the New Orleans Jazz & Heritage Festival is set to launch the following two weekends at the Fair Grounds Race Course. Singer Tarriona “Tank” Ball was on hand to The Associated Press help announce the festival’s springtime revival, The Times Picayune/The New Orleans Advocate t’s been two years since the largest free reported. festival and showcase of Louisiana music, “I love the food, I love the people, I love how open food, and culture has taken place in New and free it is,” Ball said, beaming. “We’re happy to be Orleans’ French Quarter. back.” But that changes in April, when the Ball, of the Grammy-nominated group Tank and 2022 French Quarter Festival returns. The the Bangas, joins a roster of artists scheduled to coronavirus pandemic forced organizers perform including Irma Thomas, the Dirty Dozen to cancel the event in 2020 and last year. Brass Band, Walter “Wolfman” Washington, the “We have worked and waited patiently and now Soul Rebels, Jon Cleary & the Absolute Monster the countdown to our 2022 Gentlemen, Amanda Shaw, spring festival has officially Chubby Carrier, Little Freddie begun,” said Emily Madero, King, John Boutte, Jeremy president and chief executive of Davenport and singerFrench Quarter Festivals, Inc., songwriter Rickie Lee Jones, who the nonprofit that produces will be making her festival debut. the event. “We are returning Other artists performing for More than 260 strong with over 1,800 local the first time include Loose acts will perform musicians, more than 50 Cattle, the Americana band led on the festival’s 20 chefs and restaurants, new by Tony Award-winning actor stages from April 21 interactive fan experiences, and and part-time New Orleans through April 24. evening programming across resident Michael Cerveris; the the city. FQFI is proud to kick Lilli Lewis Project; Da Truth Brass off the festival season in New Band; Gumbeaux Juice; the Orleans with a truly authentic Electric Yat Quartet; Notel Motel celebration, and we welcome everyone to join us for and Cuban-born percussionist Alexey Marti. an unforgettable four days.” The music will run from 11 a.m. to 8 p.m. daily. Thousands of people are expected to fill The complete schedule is to be released in late the French Quarter, from the Old U.S. Mint to March. Woldenberg Park along the Mississippi Riverfront, General admission is free, but VIP packages are
The pandemic forced organizers to cancel the event in 2020 and 2021
I
In fact,
We have worked and waited patiently and now the countdown to our 2022 spring festival has officially begun. Emily Madero President and CEO, French Quarter Festivals, Inc.
available at $129 per day or $399 for the four-day weekend. More than 50 local restaurants will supply the festival’s food booths.
Musical Rebirth
In both 2020 and 2021, the French Quarter Festival, like the New Orleans Jazz & Heritage Festival, postponed its usual springtime festival to the fall, in the hopes that COVID infection rates would die down. Also like Jazz Fest, the French Quarter Fest ended up canceling its fall dates as well. But about 1,500 musicians and gig workers contracted for last year’s festival ended up receiving a partial payment anyway. Those payments were funded by a $150,000 donation from Chevron, the French Quarter Festival’s main sponsor. Jazz Fest also paid musicians a percentage of their original fees last year. Acts that were supposed to play in 2020 and 2021 were given “first priority” when this year’s French Quarter Festival was booked, Madero said.
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