Turning Disaster Recovery into Economic Revival: Puerto Rico’s Countdown to Progress

Puerto Rico has a window of opportunity to turn disaster recovery into economic revival, and Eduardo Carrera, founder of Platform for Social Impact, is leading the charge. With a 10-year deadline for progress looming, Carrera is rallying social innovators and financial engineers to take action and make intentional efforts to move capital towards Puerto Rico’s social infrastructure.

The urgency stems from the frustration surrounding the island’s economic woes, exacerbated by the aftermath of Hurricane Maria and other disasters. Despite $85 billion in US federal aid and recovery funds sitting on the sidelines, nearly 60% of children in Puerto Rico live in poverty. Carrera believes that the time to act is now, and that focusing on children and building pathways to economic mobility is key to ending intergenerational poverty on the island.

One of the pillars of Carrera’s economic agenda is the need for impact investments to unlock federal funds and bring in commercial capital. By blending public, private, and philanthropic capital, Carrera and his team at Platform for Social Impact are working to crowd in financing of all kinds to support projects like Oasis, a development in San Juan’s Villa Prades public housing community.

The Oasis project, which includes a healthcare clinic, a public charter school, and a social impact incubator, is a testament to the effective stacking of capital. By combining seed capital, philanthropic dollars, tax credits, and loans, the project was able to unlock nearly $30 million in federal aid. This model of blending capital is crucial for rebuilding Puerto Rico’s infrastructure and creating a more inclusive economy.

With initiatives like the Community Energy Resilience Initiative and partnerships with organizations like Jobs for the Future and the Center for Habitat Reconstruction, Puerto Rico is making strides towards economic revival. By leveraging CDFIs, creative financing mechanisms, and community-driven projects, Puerto Rico has the potential to transform disaster recovery into a sustainable economic future.

As Carrera aptly puts it, the hardest part may be getting investors, citizens, leaders, and policymakers to believe in the possibilities. But with tangible projects like Oasis showcasing the potential for change, Puerto Rico is on the path to a brighter future.