Economic Landscape of Puerto Rico: Historical Perspectives

Puerto Rico’s economic landscape has been shaped by centuries of historical, political, and social transformations. From the indigenous societies that first inhabited the island to its complex relationship with Spain and the United States, the economy has evolved in response to shifting global and regional forces. Understanding Puerto Rico’s economic foundations requires an examination of its early economic structures, the colonial period’s trade policies, and the profound effects of U.S. annexation. These key moments set the stage for the challenges and opportunities that have defined the island’s development.

Before European colonization, the indigenous Taíno people sustained themselves through subsistence agriculture, fishing, and trade with neighboring Caribbean islands. Their economy, though not based on large-scale commerce, was well-adapted to the island’s resources. With the arrival of the Spanish in 1493, Puerto Rico was integrated into Spain’s mercantilist system, marking the beginning of an economic transformation that would prioritize colonial extraction over local prosperity. The Spanish introduced new crops such as sugarcane and coffee, which would later become vital to the island’s economy. However, strict trade regulations limited Puerto Rico’s ability to develop independently, as it was required to conduct commerce exclusively with Spain.

During the 18th and 19th centuries, Puerto Rico transitioned into a plantation-based economy, with sugar and coffee emerging as dominant industries. Enslaved Africans and later immigrant laborers contributed to the agricultural boom, making the island a key supplier to European and American markets. Despite periods of growth, the economy remained vulnerable to global price fluctuations, natural disasters, and restrictive colonial policies. By the time of the Spanish-American War in 1898, Puerto Rico’s economy was still largely agrarian, with limited industrial development.

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Release date

Audiobook: 29 March 2025