Puerto Rico's policy hurdles will depend on Washington

Subject

Post-default politics in Puerto Rico.

Significance

While the US federal election will attract most national media attention over the coming months, Puerto Rico's governor, resident commissioner (non-voting representative to the US Congress), bicameral Legislative Assembly and local mayors will also be elected on November 8. Since Puerto Rico defaulted on its public debt in July, the next cohort of public officials will be charged with tackling an exceptionally complex knot of severe policy problems involving the island's finances, public services, pensions and constitutional status.

Impacts

• The legislated requirement to use US-flagged vessels for intra-US shipping under the Jones Act will keep Puerto Rico's import costs high.
• Partisan rancour at the federal level is likely to complicate nominations for fiscal oversight board appointments.
• The response to Zika will place significant strain on Puerto Rico's already-weakened public health sector.