The measures established, on occasion, are broad and ambitious. Under the Reforms present one or more indicators that represent the progress obtained. Generally, each indicator will serve as a measure or evaluate the progress attained by the indicators under time intervals, in those that apply. These time intervals will vary indicator by indicator, due to the particular nature of each one, uniformity does not exist in the way in which agencies register and compile their statistical data. For example, the agencies that compile their data do so on a fiscal year basis, natural year, etc.. When they use time intervals as a manner of measuring the indicators of this report, usually the time interval will correspond to the year 1992 or previous years, they provide data with a historical objective (reference or comparison). The data for 1999 represents the progress attained until the conclusion of the natural year. If the agency were not to compile a data base from the natural year it will be included based upon fiscal year and so, will be indicated.

The established indicators have as their principal objective to measure efficiency "output", instead of effectiveness (outcome). In those cases, in which agency data exists, they are directed to measure the effectiveness of their goals.

In selecting the goal indicators, we gave preference to those that are available and manageable and can be measured objectively and reliably the progress reached. On occasions, effort indicators are used (in money, materials or other resource) or production (number of applications completed, permits granted, etc.) In other cases, we recur the use of graphic and tables to demonstrate the progress of the Reforms.

The information presented in this section of the document is organized in the following order:

Public Policy

Measurement Indicators

- definition (if applicable, not necessary)

- explanation (situation in existence)

Comments

In continuation, we present the indicators of the Government Reforms in the years 1993 through 1999.

High costs and difficult access to medical services have been for decades the main preoccupation of the People in the Health area. This preoccupation acquires more relevance when approximately 1.6 million people consider themselves medically-indigent.

To conjure this reality and seek a solution to the health problems preciously mentioned, the Government proposed and understood the need for fundamental change in its participation in this sector of services. This change is consistent in reforming the role of the Government, ceasing to be a provide of direct insured services (facilitator) for all needy families that do not have free selection access to health service providers.

Health reform is a process oriented in introducing substantive changes in different areas of this sector, their relations and the functions they perform. The purpose is to increase the benefit equity, the efficiency of their management and the effectiveness of their rendering of services to satisfy the needs of the health population.

As part of this reform in Puerto Rico, a model plan was established. It uses the instrument of Government financed health insurance accessibility services which is implemented by stages or geographic areas (regions).

* Preliminary

Definition: Medically indigent citizens are those that do not rely on economic resources to satisfy their health service needs and are eligible to receive the health insurance card, using revenue criteria and family composition from Medicaid.

Explanation: Free medical insurance covers all those medically indigent eligible on the Island, in accordance with Medicaid economic criteria. Furthermore, through co-insurance to those others who exceed up to 200% of their family income. The card will be awarded to each one of them and they will be able to receive quality medical services.

Comments: At the beginning of Heath Reform in fiscal year 1994 123,879 eligible citizen cards were awarded in the Northeast Region. In 1995 there were 566,398 citizen beneficiaries and in 1998 nearly 1,432,015 citizens had their health card. If we take 1994 as a basis; this represents an increase of 307,172 more cards than previous year and 1,308,136 for 1998.

During 1999, the number of those insured with the card arose to 1,661,258 which represents an increase of 1,537,379 in relation to the first year of its implementation.

Definition: Satisfaction refers to health insurance beneficiaries with respect to health services they receive through the referred insurance.

Explanation: The quality and speed of services is a necessary and important factor in Health Reform. It is for this reason, that the program is directed to make viable and secure the health needs of the covered population and provided with efficiency and effectiveness.

Comments: The surveys performed in (August 1994, September 1995, June 1996, January and February 1997, January and February 1998, and June 1999) among the beneficiaries of the Northeast Region (Fajardo), in the Southeast Region (Guayama), in the Northern Region (Arecibo), in the Central Region, in the Northwest Region (Aguadilla), in the Eastern Region (Humacao), in the Southeast Region (Yauco) and in the Western Region (Mayaguez), in order to evaluate their satisfaction with the services they have received had reflected excellent results. A scale of 1 to 5 was used, with 5 as very satisfied and 1 as ver unsatisfied. In the Fajardo Region, the average index was 4.6 and 93% of those surveyed preferred the New Health Plan above the old system. The clients surveyed in the Guayama, Arecibo, Central and Aguadilla Regions confirmed client satisfaction for health services received through medical insurance is 4.8, 4.7, 4.6 and 4.5, respectively. More than 86% of those surveyed also indicated that they preferred the new health system above the old system.

During 1998, two preference surveys were performed in the health system Regions of Humacao (East) and Yauco (Southeast). The results claim that 90% prefer the new health system and client satisfaction toward services received was 4.7 and 4.8, respectively.

In June 1999, they conducted two (2) additional surveys, in which they, again, surveyed the Southeast area of (Guayama) and, for the first time, the Western region (Mayagüez). In the Southeast, client satisfaction was 4.6% and in the West 4.5%. For their part, client preference in the new system was 87% in the Southeast and 75% in the West.

It is necessary to facilitate and propose intellectual and cultural growth of each individual, to hope for an effective performance within our economy and democratic society. In order to comply with this task, we have implemented and educational reform that attends not only to physical facilities, but also to a curricular reform, extended school calendar and hours, equal opportunities, decentralization, bureaucratically-free, academic excellence and a more active participation of the student, his family and the community.

Definition: The Community School consists of an educational focus in which the parents, teachers, and students work as a team toward a common objective: improve the quality of school education.

Explanation: The Government recognizes the participation of the student, his family, teachers and society constitutes an important factor in the development of quality education. Notwithstanding, in the last three decades it was evident that the belief of the Puerto Rican society with regards to education is the exclusive responsibility of government officials. This belief, in union with other factors of a socio-cultural nature, such as the role of traditional paternalism of the Government, has contributed a distance among the participation of the family, society and the Puerto Rican educational system. Equally, it deteriorated the quality of education and its role in the context of societal values.

In response to this reality, we have developed the Community Schools Program. Their objective is to establish schools with greater teaching, administrative and fiscal autonomy, in order to respond to their interests. It also pursues the distinct components of the school and the community as being responsible for the management and operation of the school grounds.

Comments: Law 18 of June 16, 1993 permitted us to establish the community schools, which previously did not exist. In the first 18 months, in which we began the implementation of community schools we had integrated 349 and in the following school year that figure increased to 520. In 1997, we increased the number of community schools to 1,372 and in 1998, all 1,538 Puerto Rico Educational System schools are now community schools. These schools (1,538) stayed under this system in school year 1999.

Definition: The participating schools where we have implemented the Drug and Weapon-Free School Zones (include all high schools, second units, intermediate and elementary high risks schools, understanding that those by special location conditions, enrollment or other factors, their clientele is identified as vulnerable to drug, alcohol and weapon seizures).

Explanation: In the last decade, we have seen an increase of some intolerable and dangerous levels, the presence around pubic schools of individuals with a history of offensive conduct, such as the use and sale of drugs, alcohol, and weapons. This represents a damaging influence to young developing students in high schools, intermediate, and furthermore, in elementary schools throughout the island. The Government recognizes the right of students and teachers to learn and work in a safe environment, free of drugs, weapons and violence.

It has been determined that some students purchase and consume drugs in school, which can adversely affect the power established to maintain a prosperous learning environment and the healthy development of students. As an example, the Drug and Weapon–Free School Zones Program interceded 1,437 students in their first year of operation 1994-95. They referred 513 students to be evaluated by the Mental Health and Substance Abuse Services Administration of which 354 were evaluated and 154 were sent to treatment. At the end of the second year of operation 1995-96 they interceded 1,992 students of which 1,065 were referred for evaluation and 625 received treatment. This data establishes the need to reinforce the orientation and education phase with the purpose of counteracting the destabilizing effect that criminal conduct has over the school community.

Comments: With the objective to restore schools and their surrounding environments needed to teach and learn, we established the Drug and Weapon –Free School Zones (ZELDA).

In its first year of operation (1994-95) the Program attended to 229,625 students in 354 participating schools, meanwhile in 1995-96 it attended 419,625 student’s in 659 schools, which represents an increase of 190,000 students impacted. Finally, in the year 1996-97, 799 schools participated in the Program. In the 1998 school year, there were an additional 150 schools, ending the year with 949 schools. In this way, school year 1999 increased the number of schools to 961, which represents 171% more schools than when this Program began in 1995.

Definition: Intended for educational vouchers credits that the Department of Education grants to public schools that the student has freely selected to continue his studies.

Explanation: The Government of Puerto Rico considers that as part of improving education, that they should offer families the opportunity of free school selection to send their children wherever they desire. Free selection contributes to improving the quality of teaching.

Th student beneficiary with educational vouchers has the opportunity to select among a variety of alternatives, such as: transfer from public schools to community schools and other public schools and transfer from private school to public school. Th Program also attends to the option of Advance d Education for talented students that take accredited university courses both for university programs as well as for high school programs.

Comments: With the implementation of the Educational Voucher Program, it has benefited 1,832 students for school year 1993-94. Of these students, 17% transferred from private to public schools and 65% from public to private.

In 1996-97, 1,352 participated to attend to 26,041 vouchers of which 81% were used from public to public schools. These funds received by the schools attained an improvement in education through computer laboratories, equipment, book purchases, and construction of additional classrooms. It is to say they have achieved offering free selection to improve and diversify the learning resources in schools received by these students. For 1997, student participation increased by 40%, in comparison to 1996.

During school year 97-98 24,778 vouchers were awarded. Of these 20,034 students were transferred for public to public schools (81%) and 4,744 from private to public (19%). One thousand thirty seven public schools participated. Under the Advanced Education option, $4,183,000 has been invested in the five years since the Program took effect and 27,297 talented students were attended. School year 1998 was the last in which the Department of Education issued education vouchers to students. Law 100 of June 29, 1998, amended at the same time Law 138 of July 1, 1999 created the Educational Aid and Scholarship Council, transferred the funds of this entity so that they can perform this function.

This Law creates the Scholarships Council and establishes the Governing Board, which will be the principal and normative organism of the scholarships and educational aids programs. This Board will be responsible, moreover, of establishing the public policy that will be used in the implementation of said programs. In order to achieve effective participation and facilitate the implementation of the various programs, they have created the Pre-school Development, Scholastic Development and Post Secondary Development Offices. These Offices will the operational entities of the scholarships and educational aids programs and will be administered by varying government dependencies.

The Department of Education's Scholastic Development Office will serve elementary and secoandary level students beginning with kindergarten. Educational aid will be dispensed to families of limited income and scholarships to students with high academic performances or with special abilities, aptitudes and with verified economic need.

In 1999, 12, 961 scholarships were awarded to students, of which 12, 242 were academically outstanding students and 719 for students with special talents. Its budgetary impact reached the sum of $5,184,400.

Definition: Children five years of age enrolled in the Kindergarten in public schools.

Explanation: In the past it was a parent’s option to send children to Kindergarten and first grade was considered the beginning of a formal education for six year olds. In general, parents sent children to Kindergarten as a measure of childcare and voluntarily. The vision of the Government is that all children in Puerto Rico begin their formal education from the age of five because it is understood that from this age the child has the capacity to learn the necessary knowledge that will permit them to begin to develop their abilities to the maximum. Equally, they can adequately acclimate themselves into the learning experience and do so in a fruitful manner.

Comments: With the approval of Law 79 of July 19, 1995, it is obligatory, beginning in the year 1996, the attendance of all five year old children in Kindergarten. Because of these efforts, in 1997-98, there was an increase of 6,062 children enrolled in Kindergarten in compassion to 1992-93. This represents an increase of 16%. In this way, 1999 had an increase of 6,333 enrolled children with respect to 1993, or in other words 17%.

Definition: Provide access to computers refers to arranging for access facilities and information exchange for all students with the purpose of achieving a better quality of life and greater enjoyment of the environment.

Explanation: The vision of the Government in terms of the use of information technology is to provide a society of knowledge and regional savings leader, using less time to transport people and sensitive to improving the environment, resources, and strengthening the family with: 1) better jobs, 2) greater enjoyment of family activities and 3) electronic access facilities for all social sectors. The basis to cement this society of knowledge and regional savings leader is in providing them said data access opportunities, information, and knowledge to our children and students. To that effect, we have begun to endow our public schools with personal computers and complimentary equipment with the results expressed to follow.

Comments: As observed in the tables for June 1997, the number of students for each available computer in public schools substantially reduced since 1994, or said in another way, the number of PCs per students has increased. In June 1994, there were 328.3 students per PC. In June 1997, this number significantly reduced to 28.2; in June 1998 to 16.3 and now in June 1999 it reached 15.7, which signifies more PCs per student.

Definition: The basic salary of teachers for 1992 was $1,000 a month. It was projected to raise this basic salary to $1,500 a month within four years.

Explanation: Educational Reform recognizes the value of the work performed by teachers and they have the power to improve the quality of life of people, through the work they do. The salary increase that teachers receive places them in a position of economic competition with other professionals with the same preparation.

Comments: The basic salary for teachers has increased to $1,000 in 1992 to $1,500 in 1996, or in other words 50% in four years.

During the past years we have constructed more housing than in any other period in the history of Puerto Rico promoting those conducive initiatives so our families can living together in a better home. The promotion of one dignified housing for our needy people will continue being our most firm commitment. In this way, we will continue with our effort to promote a better quality of life for our families and communities.

Definition: New Housing refers to the new housing units destined for families of limited or moderate economic resources.

Explanation: Practically all housing that is constructed in Puerto Rico has a market price of over $60,000. In order for citizens to qualify to purchase this housing, they need revenues of over $2,000 a month. The Government understands the need to develop strategies and mechanisms directed to foster housing construction that is in the budgetary range of the majority of Puerto Rican families. Equably, they provide financing alternatives for the acquisition of said housing.

Comments: The table shows us that in the last three (3) years, they have promoted the development of 21,675 housing units through the New Housing Program, which represents an increase of 18,685 housing units from the period of 1990 through 1992, where they constructed 2,990 units. Moreover, the previous data shows that in 1993 they promoted 41,675 social interest-housing units.

Definition: Garanteed loans refer to insuring mortgages from private banks and from the Financing Bank and Agency to foster the acquisition, construction and improvement of social interest housing.

Explanation: One of the problems that families with limited to moderate economic resources face are the limited finance mechanisms they can rely on to acquire a residence.

The awarding of mortgage loans for this type of housing from the bank, has permitted accelerated development of housing construction for the benefit of clients with limited resources and offers desirable alternatives.

Comments: Through the awarding of mortgage loans we have ensured 651 loans from the housing Bank and 887 from private banks for a total in 1994 of 1,538 with an investment of $63.3 million. The assurance of said loans for the year 1994 represents an increase of 984 loans with respect to those awardees in 1993. For 1995, 1,168 mortgage loans were awarded and 1,321 for 1996, which represents an increase of 614 and of 767 loans respectively, in comparison to 1993. For 1997, 811 loans were secured with a total insured of $38.6 million and in 1998 there were 975 loans secured, with a total insured of $45.9 million, an increase of 421 with respect to 1993.

For natural year 1999, they promoted 737 loans and the private bank assured mortgages with the Farmer Home Administration (FHA).

Puerto Rico is enjoying a robust economy that has created more than 162,000 new jobs and has depended on the greatest investment in our energy, transportation, water, and communications infrastructure as well as other diverse factors that have most favorably contributed to our economic development. This is due to an efficient, committed and productive Puerto Rican labor force and the dedication of this Government to act as facilitator and promoter of new ways of doing things for the benefit of us all. In this effort, we continue adapting structures, procedures and regulations to promote economic development and seek a greater quantity of employment opportunities for our people, honest and productive work.

The following sections of this Part demonstrate the goals and results obtained in this promoter area of the greatest employment sources for our people.

In 1993 began the governmental reform process with the purpose of making it quicker, effective, facilitating and effective. The objective is to propose the greatest government effectiveness substituting the bureaucratic process for one that is much quicker, identifying the real needs of the citizenship and seeking the most effective way to offer services to the people.

This reform process has been an extensive one that encompasses not only restructuring of the Government Umbrella Departments, but also a change of vision in the ways of doing things, accelerating services, reducing and mechanizing processes, saving, acting as facilitator and sharing functions with the private sector.

Definition: The Umbrella Department is referred as an organizational model that groups agencies or units of the Executive Branch. Their basic principal is integration of agencies with similar functions and characteristics under the coordination of an umbrella department secretary, who in turn directly responds to the Governor.

Explanation: One of the problems of the Government was its excessive size that had been converted into a complicated and extremely costly bureaucracy, which did not respond to the socio-economic needs of Puerto Rico. In December 1992, 135 government agencies directly responded to the Governor. This governmental structure was extremely complex, making it impossible for the Governor to have effective control, management and supervision and make quick decisions regarding the rendering of services.

The objectives that they are pursuing to adopt this type of organization are: simplify the organizational structure; decentralize the administrative authority and decision-making power of the Governor through department sector secretaries to obtain better operational coordination, effectiveness and efficiency.

Comments: Through the Executive Branch reorganization process, we have achieved organization of the Government in 19 Umbrella Department that respond directly to the Governor and 77 agencies that channel their work through them. In this way, we have only 55 agencies that respond directly to the Governor. Of these, 24 are autonomous entities that are managed by their Board and/or Commission, of which only 31 have a direct relationship with the Governor. In actuality, 19 secretaries share the management of entities that previously were solely controlled and managed by the Governor. The Umbrellas Departments are composed of: Natural and Environmental Resources, Correction and Rehabilitation, Agriculture, Labor and Human Resources, Treasure, Economic Development and Commerce, Family, Justice, Health, Education, Sports and Recreation, Housing, State, Transportation and Public Works, Consumer Affairs, Citizen’s Rights Commission, Public Safety and Protection, Federal Affairs Administration, and Financial and Investigative Agent.

Definition: Decentralization is the mechanism that the Government uses to contract, share, transfer functions or services, such as sell properties to the private sector.

Explanation: The philosophy that prevails in the Government is to assume a paternalistic role, which endeavors to provide all services that are required in our society and control all suggested initiatives in other sectors to the maximum. This extreme paternalism provoked and excessive dependence on the part of the citizenship toward the system. Furthermore, the excessive control limits the privates sector initiative for many of the procedures and existing restrictions.

Comments: The agencies decentralize different regular activities, many of which are common to them as detailed in the table. Furthermore, they have completed the sale of the Navieras Authority, the Seville Pavilion, the El Convento and Mayagüez Hilton Hotels, the Pineapple Program and the Land Authority tomato seed-planting operation, production and distribution of little pigs, the Department of Agriculture’s Mango Production Farm, AAA administration of operations, and the design, construction and administration of Penal Institutions in Guayama, Ponce and Bayamón of the Corrections Administration.

Definition: Deregulation is the reduction, simplification and or immediate elimination of all unnecessary, impractical or excessively complex regulations, given previous experience in their handling of the island’s contemporary needs.

Explanation: Ordered the simplification and reduction of the number of regulations that the agencies or Government instrumentalities administrate. The order established that each agency, instrumentality, dependency, public corporation and any executive subdivision, would establish an internal deregulation group.

Comments: In 1993 an Administrative Bulletin OE-1993-40 was issued with the purpose of ordering the simplification and reduction of the number of regulations administrated by Government agencies, to comply with the vision to obtain a Government that is more efficient, faster and proactive. A committee presided by the Insurance Commissioner was created with the job of recommending the necessary changes to reach this vision. In September 1996, 51 agencies had complied with the relative dispositions of nominating an internal committee. In the graphic, we present the percentage of the amended or abolished regulations of the 72 agencies that presented the information to date. Of these, 14 do not administrate the regulations that affect the rendering of services.

On the other hand, some agencies, such as the Central Labor Advisory and Human Resources Administration Office, the Ports Authority, the Financial Institutions Commissioner Office, and the Office of Management and Budget, have established regulations, legislation or abolished circular letters for the simplification and or flexibility of procedures in the benefit of the clientele.

Previously, the Executive Order 1997-30 of August 11, 1997 created the Committee for Governmental Regulatory Reform presided by the Secretary of State. This Committee is in charge of supervision the Executive agencies deregulation programs. Furthermore, they have the objective of implementing the "Sunset Legislation", whose purpose is to eliminate all unnecessary regulation, particularly in the area of licenses and permits. This will result in the elimination of economic development barriers and obstacles, creating an environment necessary for generating new economic activity and new jobs. During 1997, priority was given to the redesign of the permits, licenses, endorsements, franchises, certifications and authorizations regulations. Approximately two-thirds of the redesigned regulations reflect a reduction in the time estimated in the processing of permits between 50% and 99% in relation to the current time. On the other hand, from January to December 1997, the State Department registered 326 transactions totally or partially abolishing regulations, 45 amended transactions and 72 new regulations. In natural year 1998, 142 abolished transactions (83 of these regulations corresponded to the Agriculture Department); 34 amended transactions; and 92 new regulations were registered. During 1999 no changes toward the current regulations were registered.

Definition: We refer employees of the government sector certified by agencies of the Office of Management and Budget. This includes employees of the executive, legislative and judicial branch, as well as the public corporations.

Explanation: Employment in Puerto Rico has shown in the last decades to be an employer of growth that also reflects in the Government. In the governmental sector, payroll expense has reached billionaire levels, that are necessary to take urgent measures for their control. For this, since 1993, the agencies were required to control all types of related transactions with positions. Then, in subsequent years, they have established other measures to control job growth in each executive agency without affecting client services. They have also created awareness in the agencies to perform new commissions or improve the procedures, not necessarily requiring additional human resources.

Comments: This Administration has taken divers measures directed at controlling employment growth in the Government. As a result of this, in September 1995, the agencies of the three branches of State government certified a total of 229,514 employees, which reflect a reduction of 2,872 in relation to the employees in Government from December 1992. In September 1996, it reflected an increase in government employment, principally as a result of the increment in agency employment that implemented public policy on security, correction and rehabilitation, in accordance with the programmatic commitment to reinforce said sector, and increases reflected in other organisms and government branches over which the Governor has no control. Notwithstanding, we have see that in September 1997, in September 1998 and September 1999 the number of jobs continues to go down, which signifies that will continue the efforts to maintain control and stability in Government employment.

For September 1999, the three branches of State Government certified a total of 211,571 employees, which reflects a reduction of 20,815 (9%) with regard to the Government employees from December 1992. In this way, fifty-eight (58) Executive Branch organisms have maintained less employees (or in some cases equal) with respect to 1992. As indicated, the Governor has no control over the jobs in the legislative and judicial branch.

Definition: Jobs referring to those employees that occupy positions in the Executive Branch of the State Government. This excludes employees in the University of Puerto Rico (which is autonomous), the municipalities, such as the other Branch of Government.

Explanation: The Executive Branch for years counted on a high number of employees, constituting their payroll the portion most elevated in state government expenses. On the other hand, the high number of employees contributed, in a certain grade, the excessive bureaucracy that characterized the Government for many years and pay low salaries. Among the goals are to establish the measures and pertinent actions to detain growth in government employment.

Comments: In comparison to the same date, the number of jobs in State Government and of the Executive Branch vs. the employment total (see previous graphic) we see how the total employment increased and how government participation reduced. The employment total for natural year 1999, increase to 16.4% in comparison with 1992. Meanwhile, employment participation in State Government regarding employment totals reduced from 23.5% in 1992 to 18.4% in 1999. In the same manner, the Executive Branch participation regarding employment also reduced from 21.6% in 1992 to 16.5% in 1999.

Definition: Providing computer access refers to arrange facilities access and data exchange, information and knowledge among diverse sectors of society, with the purpose of obtaining a better quality of life and complete enjoyment of the environment.

Explanation: This Government in the reference to the use of information technology is promote a society of knowledge and an economy leader in the region, using less time to transport persons and sensitive to improving the environment, protecting our resources and strengthening our family with: 1) better jobs; 2) more enjoyment of family activities; and 3) electronic access facilities for all social sectors. We will obtain a leadership economy in the region and a better quality of life if we open the way for technological advances and tools to confront competitively and successfully with the changes in the global market, promote new employment opportunities and arrange more time to share and enjoy life with our families. It is projected that by the year 2000 there will be more than 500,000 persons in the public system accessing a computer including students and public employees.

Comments: According to the previous table we observe, that beginning 1994, we have reduced the number of users for each computer (PC) available in government offices, or in another way, have increased the number of PC’s per each employee. In June of said year, there were 37.3 public employees for each computer. In addition, in June 1998, this number was significantly reduced to 5.4. In this way, June 30, 1999 there were already three (3) public employees per computer.

During the decades of the seventies and eighties, Puerto Rico registered minimal economic growth levels, a situation that reflected the economic structural problems and therefore the output of the same. Therefore, it was necessary to establish economic growth and correct those problems that were affecting sectors such as: agriculture, tourism, manufacturing, cooperatives, commerce, construction, employment and infrastructure which contribute to the economic development of Puerto Rico.

Before this scene in 1993, the New Model of Economic Development was proposed. This is principled in promoting the business initiative, the operation of the market, the effective insertion in the global economy, a Government that facilitates these procedures, clear perception of direction to follow and a commitment to them of all economic sectors. IN tune with said principle, we hope that in the year 2000, the economy of Puerto Rico will be transformed into a diversified balanced and dynamic, that will be globally competitive in terms of its productivity level, it infrastructure, and their quality of life. In this way we establish the basis for an accelerated growth sustained for the beginning of the 21st century.

In continuation, we present the most relevant goals of said economic model for each one of the sectors that contribute to economic development in this way we will achieve our results.

Explanation: The expansion of local economy was rapid and continued until the end of the seventies. In this period, the actual gross product per capita grew from $630 in 1960 to $1,185 in 1973. This represented an increase of $555 in 13 years, or an average annual growth of 6.8%. In the beginning of the seventies, until the present it manifested economic growth, a slower rhythm even slower that in the previous decade. The actual gross product (at constant prices) per capita increased from $1,185 in 1973 to $1404 in 1990.

This trajectory represents a growth of $219 in 17 years, for an annual growth rate of 1.3%. At the end of the seventies decade, the economy of Puerto Rico grew to a rhythm greater than that of the U.S, provoking a difference between the actual gross product per capita of the two economies if they were reduced. Since then, the annual growth rate of the economy of Puerto Rico has been generally less than the United States. This is due to the fact that the gap of the actual per capita product of both economies has expanded. For this reason, it is imperative, to improve the local production capacity to stimulate economic growth, for both the short as well as the long term

Comments: In the previous graphic, we observed that in 1998 the economy of Puerto Rico registered an actual increase from 4.2 percent. The same constitutes that in the fifth year, during the actual decade, growth was registered over 3%, all in the beginning of 1994. Yet when all those components of the Gross Product registered increases in 1999, the internal capital include the construction investments of the construction and in the merchandise and equipment were the principal indicators of economic growth reached during this year.

Explanation: The proposed objectives in the New Economic Model of the Government require reaching toward economic expansion, which will allow generating resources oriented in investment of infrastructure, and the improvement of the components and the Government fiscal situation. In this way, we can generate necessary jobs to maintain substantial levels of employment and improve the quality of life.

Comments: The economic activity index shows that for natural year 1997 and 1998, (January to September) an increase of 12.5 points for natural year 1992. The same represents a growth in 1999 of 13.7 points in 1992.

Explanation: The combination of frequent recession recurrences and economic standstill situations have occasionally caused an erosion in the economic capacity to generate jobs. In terms relative to the total population, the unemployment level in Puerto Rico in 1990 was greater than in 1960. On e of the fundamental objectives of the New Economic Model is to foster savings to generate jobs.

Comments: The first graphic demonstrates to us the number of jobs generated per year. In comparison to the employment level reached in natural year 1992 (987,000) with that in 1999 (1,149,000) reflects an increase of 162,000 new jobs in the economic sectors.

On another part, it is interesting to observe that the unemployment level reduced to 11.7% in 1999. In comparison to this data with the existing unemployment percentages in 1992 (16.7%), and in 1993 (17%), reflects a reduction of 30% and 31% respectively. This indicator began to consistently decline until it arrived at 11.7%, the lowest registered in more than a quarter century.

The third graphic demonstrates to us how the population percentage has increase from 16 years or more found in the work group, registering them in the years 1998 and 1999, the participation rate of 47.5 and 46.4, respectively.

* Preliminary

Explanation: This sector is very important to the Government, because it treats the problem of how to use our land to produce food, generate employment, and conserve the environment. The revitalization of agriculture has a high priority for this Government.

Comments: At the end of 1993 and 1994, this sector was affected by a drought, also in 1995, 1996 and 1998 the island was beaten by four natural disasters (4) (Hurricanes: Luis, Marilyn, Hortense and Georges). These phenomena, especially Georges, affected agricultural production due to the substantial losses occurred in all municipalities. Therefore, it affected the gross revenue, although the recuperation process has been significant, due to the aid provided for these purposes to the agriculturist.

Explanation: Convert Puerto Rico in one of the principal tourist centers within the tourism industry global market is one of the goals of the Government. This is achieved through promotion campaigns, sales, publicity and public relations in the exterior to create tourism potential awareness of the advantages and attractions of Puerto Rico. Through these strategies, a great number of visitors and tourists arrive on the Island.

Comments: The number of visitors/tourists that have visited Puerto Rico has increased in the last years. We observe that during the year 1997, we has 4,349,687 visitors representing an increase of 5.8% in comparison to the total reported for fiscal year 1995-96 and 16.6% (619,689) in 1992. The data for 1998 reached 4,670,779; an increase of 940,781 or 25.2% in comparison with 1992.

The preliminary data for 1999 reached 4,239,200, which reflects an increase of 509,202 or 13.6% in comparison to 1992. The experimented growth in this indicator, is seen as interrupted in 1999 when the Island was faced with various situations, among which is most prominent is the reduction of flights in principal airlines.

* Preliminary

Definition: Revenues generated signify the amount of money that entered the local economy by concept of tourist/visitor expenses (non-residents) during their stay on the Island.

Explanation: One of the priorities of the current Government is tot strengthen the tourism sector so that it can be converted to one of the most important sources of income of the economic activity.

Comments: The revenues generated for tourist activity by concept of visitors expenses has maintained its ascending rhythm. During fiscal year 1997-98, the expense for regular and special visitors (including tourists from cruise ships) arose to $2.2 million. This represents an increase of 46.7% over the revenues obtained in fiscal year 1991-92 from $1,519.6 million.

For 1999, the preliminary data by tourism generated revenues generated reached the figure of $2.1 billion. It observed a reduction with respect to the previous year 1998 which is principally attributed to the cancellation of flights, as well as cruise ship passengers. In this way, the figure of $2,147.9 million reflects an increase of $628.3 million (41.3%) in comparison to 1992.

Explanation: Under the New Economic Model, the Industrial sector has as its main purpose to stimulate creation of businesses and strengthen the activity of the manufacturing sector.

Comments: During 1999, the number of businesses fostered was 196, which reflects an increase of 48 (32.4%) with respect to 1992. The number of projects shows a constant increase through the years, reaching a maximum of 196 in fiscal year 1997 and now in 1999.

Explanation: The manufacturing sector constitutes one of the principal activities of the economy for its importance in the productive process and in their capacity to generate revenues and jobs. It is for this reason that the Government has a great interest in promoting Puerto Rico as a manufacturing and services center.

Comments: The number of jobs promoted in the manufacturing sector began to recuperate favorably, in the beginning of 1995. Equally, the businesses promoted achieved an increase in the number of jobs promoted from 4,675 in 1994 to 13,168 in 1997, an increase of 8,493 (181.7%) with respect to 1994 and the highest obtained in these last five years presented. For 1999, the jobs promoted were 19,258, which was four times more than those fostered in 1994 and 8,870 job or 85.4% of those promoted in the previous year.

On the other hand, the investment in machinery and equipment increased by approximately $37 million in 1994 to $344 million in 1998, or an increase of more than nine times in the four-year period. During 1999, this investment gently reduced reaching $322 million, 7% less than in 1998, but almost nine times from 1994.

Explanation: The construction was one of the principal sectors that impulse the economic development of Puerto Rico. In 1990, the value of the construction activity was equivalent to less than 10% of the gross product of the economy and their employment level drastically reduced. In order to resolve the problems that affected the construction sector and give new impulse to this activity, deregulation and flexibility measures were implemented in the processes related to the awarding of permits.

Comments: The value of the construction permits in the natural year 1998 totaled to $1,416 million. This represents an increase of 41.4% in comparison to 1992. In this way, for 1999, it increased by 86.1% reaching the sum of $1,863.7.

There is evidence and conviction to prove that the Puerto Rico’s tax system lacked equity, not only in relative terms but also in absolute. That situation motivated a considerable number of taxpayers to evade the shared responsibility of financing the State’s operations. Previous system prevented problems, since it was based on a limited contribution, a structure that unfairly aggravated families of moderate or low income, and small businesses. Just as well, the system was complex, result of the multiple incentives and deductions that not only had an erosion effect on the difficult base, but one that promotes tax evasion. The system had lost its collecting capability. It became more and more costly to collect taxes and required extraordinary efforts to maintain the levels of collection in order to comply with the government’s work. It is for that reason that the Government in the New Economic Model, has implemented a fair, equitable and less complex tax system. At the same time it is efficient in the tax collection in order to defray its operations and services.

In 1994, the Government proposed a Tax Reform that reduced taxes for individuals and corporations. Attended to the middle class claim in fair tax payments and promoted and gave the incentive to the economy and productivity the private sector of the Island. In addition, it simplified the tax system, not only in its administration, but in the consolidation of its laws to protect taxpayers rights and guaranteeing them an effective and fair treatment as well. It also reduced the evasions and expanded the tax base so the whole town can benefit.

The Tax Reform is an important tool for economic development, as it benefits all taxpayers including industry and commerce.

Definition: Tax rates signify the percentage of contributions that individuals will pay in accordance with income level.

Explanation: In accordance with a study performed by the Department of Treasury, it demonstrated that the tax contribution charge has fallen upon the salaried taxpayer. This is due, because 60% of the income has been obtained through direct taxes, tax filing, and property tax. On the other hand, direct contributions represent 50% and have emerged from individual tax filing..

Comments: The new tax rates are socially fair. The Tax Reform of 1994 reduced the tax charge by approximately 20% for all individuals, which represents around $285 million in tax benefits. Moreover, the Reform reduced tax evasion. This is evidenced by the number of tax forms filed in 1999 (pertaining to tax year 1998) which reached the sum of 861,000. This represents an increase of 26,000 with respect to the previous year and 212 in relation to the tax year of 1992.

In terms of collections, the General Fund reached revenues of $6,507 during fiscal year 1999, for a growth of $2,482 million, or 62%, with respect to revenues of fiscal year 1993 of $4,025.

Comments: Through the Puerto Rico Internal Revenue Code of 1994, has achieved a reduction of the normal tax rate over the income of corporations and societies of 22% to 20%. Furthermore, it has reduced by three percentage points the maximum tax contribution rate and in two percentage points the minimum rate to regular corporations, benefiting them in $102 million annually.

Definition: Individual tax forms refers to the contributions rendered by individuals. Excluding the tax forms of corporations and associations.

Explanation: It is the responsibility of citizens to return their Individual Tax Revenue Forms. He who does not do so constitute a crime under the laws of Puerto Rico. However, the Government has confronted problems of this nature, by the number of individuals that have not returned their tax forms (tax evasion). This has negative consequences for the Government, which can affect the amount of collections by this concept of depositing to the General Fund, and therefore, the services and the government work. Before this situation, the Government understood it was necessary to develop measures to create awareness and foster the return of tax forms by citizens. In this way, it arranges for the necessary resources for the operation, functioning and services for the entire population.

Comments: In the previous graphic, we can observe how the number of tax returns by individuals has increased. We can also observe that since 1993, the number of tax returns has increased to 700,000, then to 720,000 during 1994, to 747,000 in 1995, 798,000 in 1996 and finally 835,000 in 1998 and finally 861,000 corresponding tax forms in the natural year 1998. This indicates that from 1992 to 1998 the amount of tax forms returned increased 212,000, or 33%.

The industrialization program of Puerto Rico reached the greatest part of their objectives during the decades of the 50s and 60s, in great part, because they can develop the necessary infrastructure. They committed the construction and operation of it to public corporation systems. They financed the investment, initially, through donations and capital appropriations of the Government of Puerto Rico and, subsequently, through public debt emissions in the money markets of the United States. The infrastructure of Puerto Rico is going through a chronic crisis that became more acute as time elapsed. The infrastructure was in a state of deterioration and continual abandonment. The facilities, installations, buildings and equipment were not properly preserved, maintained nor renovated. As well, the technological infrastructure ad telecommunications in the majority of the cases were obsolete or did not meet the needs and requirements of the "Information Technology Era" characterized by the upcoming 21st century.

Prior to this situation, they were taking aggressive measures to endow Puerto Rico with the best infrastructure, as much as physical, (facilities, units, etc.) and technological (mechanized information systems, telephones, etc.) as human, that provide competitive advantages in the global economy. In continuation, we present the goals achieved under this area.

Definition: Infrastructure projects refer to those directed toward development, expansion, or improving physical facilities (airports, maritime ports, highways, power generating plants, recycling plants, etc.) such as projects related with new technology or telecommunications.

Explanation: The development of government infrastructure projects constitutes an important element to impulse economic sector progress. The Government in its role as facilitator should ensure that the Island rely on all of the proper infrastructure to promote and make viable general economic development. Prior to this responsibility, the Government has great interest in developing all strategic projects directed toward establishing or improving the existing infrastructure to order to successfully and rapidly promote the savings benefit for all society.

Comments: The graphic shows the total investment in strategic infrastructure projects, which in seven years has increased to $775 million in natural year 1999. Among the projects most outstanding all encompassing projects are: the Urban Train, North Coast Superaqueduct, the Lake Carraizo Dredging, construction of the Energy Conversion Plant in the northeast, a parking building in the Luis Muñoz Marin Airport, construction of piers 1 and 2 of Puerto Nuevo, the Puerto Rico Coliseum, Northern Expressway (PR66), Highway (PR53) of Fajardo and Salinas, the New Port of San Juan and Route PR10 from Arecibo to Ponce.

Explanation: Ensure the availability and reliability of electrical power at any moment is indispensable for the economic development of the Island. However, in the past this availability was seen as affected. This brought upon itself repercussions in the economic development, due to the losses and inconveniences it represented. For such reason, the New Economic Model, presents measures in order to guaranty a system of trustworthy energy that contributes tot he growth of the economy of the Island.

Comments: Formalized an aggressive preventive maintenance program of the electrical generating units to reduce amount of time out-of-service. During the 1989-92, the availability average of power was 60% of the installed capacity. During the years 1993 and 1994, the availability and reliability average reached 69%. In 1995, they obtained 72% and for 1998, it reached 80%. For 1999 this indicator reduced to 79.

Explanation: The time to install electrical service to clients is an important factor to improve the image and the services of the AEE. In fiscal year 1992, the referred service took as long as 48 hours to install after receiving the request. Generally, the delay in the installation of electrical service constituted one of the greatest client complaints. The goals presented are established in giving priority to improve all client direct services, including installation of power to residences and businesses.

Comments: Since the beginning of 1993, they have obtained a reduction in the amount of time to install electrical service to clients from 48 hours to 22 hours in 1999. This represents a reduction of 52% of the time it takes to offer the same service in 1992. This also indicates that the number of hours has increased in 1998 due to the additional services that the Electric Power Authority had to offer after the passing of Hurricane Georges. For 1999 it observed the hours once again reduced themselves to 22.

It has been six years that the People and the Government said enough and declared war against the rampant criminal and narcotics wave that has been taking away the peace and tranquility of our communities. In an unprecedented effort, under the strong hand policy, we have proposed a counterattack achieving magnificent results in the struggle against crime and in control of the use and distribution of controlled substances.

On the other side, we have established a Judicial Reform whose mission is to obtain a just, rapid, effective and efficient disposition of all subjects submitted for consideration of our courts. In the same manner, we have develop the Quality of Life Congress, through interagency and community efforts, directed to assist marginal community residents to resolve their own problems and carry themselves as individuals useful to society.

All of these aforementioned initiatives have as their purpose to obtain tranquility, calm, and improve the quality of life of our society. In addition, they continue to have, as the unquestionable priority of this Administration, to return peace to our streets, plazas, communities, homes and families. For this reason, we continue to join forces with the communities, private businesses, and inter-agencies to achieve this peace that we so desire.

In this part of the Report, we project the most significant results and goals during the past four and one half years related to Public Safety, Judicial Reform, and the Quality of Life Congress whose goal is to achieve the aforementioned objective: Peace.

The Public Safety of the People is an area of great priority given by the Government. The peace, tranquility and safety of Puerto Rican citizens is constantly seen as affected by a series of natural and social phenomena. One of the most revisited phenomena is crime. The Puerto Rican daily life has been threatened for decades by the heightened crime index. This social phenomenon not only has negative repercussions in the quality of life of Puerto Ricans, but also in the cultural and socio-economic pan of the island both on a local as well as an international level.

It is for this reason, that crime is considered the principal problem that Puerto Rican society is confronted with currently. Prier to this reality, the current Government efforts in the public safety environment, were directed to combat with a strong and effective hand to all elements that contribute to crime. In this way, they have established measures for the prevention and eradication of this social ill; however, in the beginning of 1993, they designed and implemented an all-encompassing and aggressive plan of action named "Strong Hand Against Crime". This plan is bearing fruit.

Definition: Type I Crimes against persons and property include homicides, robberies, and illegal appropriation of vehicles, illegal drug trafficking and others.

Explanation: The commission of Type I Crimes in Puerto Rico increased in the decades of the 70’s and 80’s. Notwithstanding, during previous years, it has manifested a reduction of them. In accordance with research performed, it has shown that the majority of crimes committed in Puerto Rico are related to the trafficking and consumption of drugs. The data used to measure the crime index, as well as the number crime victims, is based on cases attended and officially registered by the Police.

Comments: During the last seven years, we have seen a notable descent in the commission of Type I Crimes. We see in the previous table a consistent reduction in the number of Type I crimes, up to reaching in 1999 a reduction of 36.5% (47,020) in comparison to 1992. Among the steps taken that incite the reduction are: 35% less scaling, 29% less illegal appropriations, 25% less car robberies, and 79% less carjackings.

Definition: Violent crimes are exclusively referred to criminal acts against a person. These include murders, voluntary homicides, violations of force, robberies, and aggravated aggressions.

Explanation: The commission of violent crimes in Puerto Rico has also increased in the decades of the 70’s and 80’s. Nevertheless, these have diminished in the last few years. In accordance with research, it has shown that the majority of the crimes committed in Puerto Rico were related to drug consumption and problems of a psycho-social nature. The data used to measure the crime index such as the number of victims of violent crimes is based on cases attended and officially registered by the Police.

Comments: The number of violent crimes perpetrated against persons has reduced from 1992 to 1998 in a significant way. In 1999, the number of crimes of this type was 14,180 or 56.1% (18,106) less than those that occurred in 1992. This includes 59% less robberies, 48% less violations, 47% less aggravated assaults, and 34% less murders.

Definition: Drugs possessed by the Police as a result of interventions, search and seizures or arrests performed.

Explanation: The transferring, sale and use of drugs in Puerto Rico is an illegal activity that has reached unsustainable levels, which contributes significantly to criminal incidence, such as the problem of drug addiction. In the measure that takes drug shipments out of circulation, it will give a strong blow to drug traffickers and to associated sale and use of drugs criminal cases. There is no defined client to determine the demand for drugs in Puerto Rico. It depends, in great measure, to the price in the illegal market and the user.

Comments: The greatest amount of drugs seized in these years has been cocaine and marijuana. They have seized a total of 286,185 pounds of cocaine, marijuana, and heroine from 1993 to 1999. The figures of the table do not include the amount of marijuana plants seized crack vials, nor bags and decks of these drugs. In 1999, the total value of the drugs seized was $1,670 million.

Definition: Confiscate signifies the destruction or the taking out of circulation illegal arms as a result of police interventions or amnesty.

Explanation: The number of illegal weapons in the possession of unscrupulous individuals is one of the factors that greatly contribute to crime in Puerto Rico. Many of these weapons are sold illegally and in general are used for the commission of criminal offenses and to confront police during their field operations.

Comments: In 1993, we have decommissioned 23,804 illegal weapons. This number of weapons decommissioned, in comparison with 1992, is in response to the view of various legislators to the Puerto Rico Police and they have found that they will have a high inventory of weapons in the warehouse, and have taken quick action on this subject. If we consider the trajectory of this activity from 1994 to December 1999, we discovered that in those years we have achieved taking out of circulation 38,571 weapons, which in conjunction with other initiatives, demonstrates a great effort that the Government is undertaking to combat crime.

Definition: "Carjacking" is the robbery of vehicles through force or intimidation with firearms.

Explanation: In Puerto Rico the problem of car theft is one of great proportions and represents one of the major concerns of citizens. This is due to the risk that it represents for the safety of citizens. The situation is such that the Government considered it indispensable to develop measures such as more preventive vigilance, imposition of severe measures and work in coordination with the Federal Government. To that end, they created a specialized integrated group of state and federal agents.

Comments: During the last few years, we have experienced a notable reduction in the number of carjackings. We can observe that in 1999, the number of carjacking cases was 6,873 less than in 1992, which means a reduction of 79%.

Explanation: The basic salary for the Police for 1992 was $775 monthly. We projected to elevated the basic salary to $1,275 monthly in four years, with an initial increase of 200 monthly.

Comments: The basic salary of the Police was projected to increase by 61% in four years. In 1995, it increased to 52% which represents $400 more over the basic salary of 1992. In 1996, we awarded the remaining percentage of the projected salary increase, elevating this to $1,275, which represents a 64.5% increase in comparison to 1992. During 1999 they were granted an additional increase of $125 which elevated their basic salaries to $1,400. This represents an increase of 81% on the basic salary of 1992. For the next three fiscal years, they had approved increases of $125 monthly which elevated the annual basic salary of members of the force to $1,775.

Definition: Community groups refer to the organizations composed of citizens that join forces with the Puerto Rico Police in the prevention of crime.

Explanation: The elevated incidence of crime requires that all sectors of our society integrate and join forces with the Police to contribute in the struggle against crime and improve the quality of life. Prior to this situation, the Puerto Rico Police developed innovative strategies directed to promote and achieve the formation of community groups named "Neighborhood Safety Council". This is created to establish an effective coordination between the Police and the community with the objective of preventing criminal activity.

Comments: In 1995, we have organized 431 Neighborhood Safety Council. In December 1996, it was reduced to 216 active Councils with the participation of 11,074 Council People. In December 1998, there are a total of 260 Councils, of which 201 are active and the others are in the process of being activated. For 1999, this amount reduced to 175 with a total of 4,080 council persons. The Puerto Rico Police has reinforced this Program with additional personnel in all police areas in the hopes of achieving an increase of said council persons. Moreover, they named the Director in property of the Community Relations Program so that in this way they can achieve an expansion of services that they present through this program.

Definition: Increase the total number of Correctional Officers that work in penal institutions of Puerto Rico.

Explanation: With the development of a program to combat crime, it creates the need for more custodial officials. This is as an increased product in the penal population. Furthermore, in order to construct new penal institutions it is necessary for a great number of Correctional Officials to reinforce custody of prisoners in par to alleviate the work load to the existing Correctional Officers.

Comments: In natural year 1992, there had been 3,990 Correctional Officers in Puerto Rico to serve a population of 11,387 prisoners distributed in 42 correctional institutions including adaptation homes, homes from women (3).

In 1999, the number of Correctional Officials has increased to 6,746 which represents an increase of 2,756 in relation to 1992.

Explanation: The Government proposes to attend and respond to the claims of custody personnel regarding improved work conditions, work rounds and salaries. Doing justice for this group of public employees, the Government has decided to increase their salary.

Comments: To improve the salaries an initial increase was done of $100 in salary scales. Previously, they were given another increase of revision and/or approval of the Classification and Retribution Plan for correction personnel. This materialized for 1999, with an increase of $200 increasing the basic salary of Correctional Officials to $1,299 monthly. The total of the increase awarded to these employees is $550 monthly, which represents an increase of 73% of the increase in comparison to the salary of 1992.

Definition: Additional or added spaces to the penal system are intended for those physical areas destined to be relocated to other cells. These spaces are added by construction of new physical facilities, expansion or redistribution of the existing facilities.

Explanation: In the last few years and as a result of the Morales-Feliciano case, the Puerto Rico correctional system has operated practically in accordance with the requirements and continued investigation of the Federal Court. As a result of this case, the Government of Puerto Rico has committed themselves to seeking short and long term genuine alternatives to battle with the accumulating jails. We have made efforts to increase system capacity through the construction and expansion of penal institutions. Also because of "Strong Hand Against Crime", it created an increase in the penal population, which constitutes another determining fact in the imperious need to increase the capacity of the correctional system. Among the alternatives used to increase correctional system capacity are the participation of the private sector in design, construction, maintenance, and the operation of new revenue, classification and treatment centers.

Comments: In 1999, there was an increase of 7,399 (74%) in the spaces of the system in comparison to 1992. The increase of spaces occurred in the Zarzal Camp, the Ponce Maximum Security Institution, Social Adaptation Homes in Fajardo and Humacao and in the Guerrero Multiple Services Center. In 1996, the Guayama Jail was inaugurated which provides 1,000 additional spaces. Other spaces were added in the institutions of Ponce, Carolina and Rio Piedras. In this way, they provided spaces through the new institution in Arecibo, Sabana Hoyos Annex.

It has been four decades since the adoption of our Constitution and the Judicature Law of Puerto Rico. Its approval marked the point of division for a judicial structure conceived as a shelter of a republican government system established over the balanced interaction of the pillars of its three branches. In search of a system that, in par with the respective effect of judicial independence, they proposed to perform a reorganization marked on the unification of the jurisdiction, operation, and administration of the judicial system of Puerto Rico.

The social, economic and political reality of Puerto Rico today is precisely an all-encompassing revision of this judicial system. This was structured in three hierarchies whose design was based on criteria in terms of the attention given to civil cases and based on the gravity of the offensive conduct in criminal cases.

The problems by those who bewitch our Island, particularly in public protection and safety, justify the structural and operational reforms for a just, rapid, effective and efficient disposition of all matters submitted before the consideration of the court.

The restructuring of the Judicially Branch carries with it the goal of optimizing the level of efficiency and effectiveness of judicial measures. It also will facilitate citizens’ access to public services rendered by said Branch.

Explanation: Today, we precisely rely on a structured justice system that responds with speed and effectiveness to the resolution of civil and criminal cases. Prior to this reality, it was necessary to restructure the General Court of Justice so that it can respond to the demands and current complexities of Puerto Rican society.

Comments: Through the approval of the Reorganization Plan Number 1 of the Judicial Branch of July 28, 1994 known as the Puerto Rico Judicature Law of 1994", restructured the organizational composition of the General Court of Justice. As a result of this Plan, the referred Court adopted a vertical system that consists in the Supreme Court, as the court of last instance; the Circuit Court of Appeals, as the intermediary court and by the Court of First Instance, (District Court). This new organization of the General Court of Justice provides them a simpler structure, practical and quicker from the perspective of operations and procedures.

Definition: Cases signify those situations of a criminal or civil nature that are explained by the courts. Criminal cases are those in which a criminal act has been committed, (robbery, assassination, mugging, violations, etc.) in violation of the laws of the State. In term of civil cases, these imply the determination over controversies (divorce, inheritance, accident claims, etc.) which are not typified as criminal offenses.

Explanation: With the course of the years, the number of criminal and civil cases in the courts has increased. This, is as a result of population growth and the increase of criminal offenses and controversies that require judicial intervention. Notwithstanding, the diligence and the speed to solve and resolve or explain the cases by the courts are not in par with the needs of citizens. This situation has a direct impact in the citizen, because this adversely affects the attention and solution of cases.

Comments: The number of criminal and civil case solved in the courts has increased. Notwithstanding, the pending cases also reflect an increase which reflects that he courts are considering a number of cases. It falls under the Judicial Branch to obtain an improvement in the proportion of pending cases vs. solved cases in tone with the recently approved Judicial Reform.

Definition: Quality of life refers to strengthening the social and familial fiber, in this way to encourage self-sufficiency, self-esteem, and the social cultural areas of the residents in marginal communities.

Explanation: The marginal communities or less privileged in Puerto Rico have existed for years disadvantaged due to the limited probabilities and for social and economic opportunities for their residents. The Government understands the need to develop strategies and mechanisms directed to provide and equally facilitate conditions of progress and well-being for residents of these communities.

Comments: By initiative of the Governor’s Social Development Council the Program established: the Quality of Life Congress. The objective of this government effort is to assist community residents to resolve their own problems and carry themselves as useful individuals to society. Different from previous efforts, the quality of Life Congress works with community leaders, to formulate an effective plan that treats particular needs. This program is of an interagency nature and the Department of Housing is the organism responsible for its primary coordination. The remaining participating agencies of this effort are: Education Department, Health Department, Mental Health and Addiction Services Administration, Sports and Recreation Development Department, Labor and Human Resources Department, Right of Employment Administration, Future Entrepreneurs and Workers Training Administration, Youth Affairs Office, Elderly Affairs Office, Ombudsman for Persons with Disabilities, Women’s Affairs Commission, Musical Arts Corporation, Aqueduct and Sewer Authority and the Police.

Explanation: The socially and economically disadvantaged encompass a variety of complex problems in accordance with client diversity. This varies in age, sex, social level, academics and economics, interests, physical and mental condition. For this reason, the Quality of Life Congress joins a series of social assistance programs (23 agencies) to attend to the needs of each one of the distinct groups that compose the clientele of members of the communities they serve.

Comments: At present, 87 communities and more than 31,327 families benefit from this model of support to transform these communities into safe and sound living areas for all of its residents. Of the 87 communities impacted, 80 are public residences, which represents a 92% of the public housing units in Puerto Rico. The table illustrates that, now, it has affected a clientele of 424,562 with a variety of services that promote social and economic development of the communities. In this way, they have achieved an improved quality of life for the participants and for their nuclear families.