The government of Puerto Rico, even before declaring its debt unpayable in 2015, has incentive economic development opportunities to uplift the financial health of the archipelago. On the surface, economic development or “Creating conditions for economic growth and improved quality of life by expanding the capacity of individuals, businesses, and communities to maximize the use of their talents and skills to support innovation, job creation, and private investment” as defined by U.S. Economic Development Administration (EDA) looks like a straightforward proposition. But what happens when development happens without broad-based local development and receives major pushback from local communities? That is the case that is unfolding on the south-western coast of Puerto Rico and the Esencia project. Since 2022, this major development projecthas proposed plans for a 2,000 acre residential/resort community in the town of Boquerón, PR. The project intent is to support innovation, job creation, and increased private investment in Cabo Rojo. Potential employment opportunities include initial construction needs as well as specialized positions in energy, waste treatment, equestrian care, education, aviation, and medical services. The local community’s opposition to it has been swift, for instance, according to retired uban planner and Boquerón resident Túbal Padilla Galiano, Esensia is “an enclave that doesn’t seek to integrate or contribute to the local social and economic life” (Cabo Rojo). Another criticism for the project is that it may fail to maximize the use of local workforce talents and skills. With only 47.1% of Cabo Rojo’s working-age residents actively participating in the current job market, simply increasing the number of available jobs may not be enough to stimulate sustained economic growth (U.S. Census).
To better leverage Cabo Rojo’s most prominent industries—retail trade, health care, and manufacturing—new jobs should exceed prevailing local wages for their respective sectors, include basic benefits (such as paid leave, health insurance, and retirement or savings plans), and help employees develop the skills and experience necessary to advance along a career path (EDA). Furthermore, the income generated by these jobs and the broader economic activity they create should circulate within the local economy of Boquerón through local hiring, local purchasing, and small-business participation. Without these conditions, the project may create economic activity in Cabo Rojo without creating proportional economic mobility for Cabo Rojo residents.
In terms of investment, Cabo Rojo, like much of Puerto Rico, has experienced underinvestment in critical areas such as infrastructure and education. Through its proposed K–12 bilingual private school and stated plans to create a workforce pipeline with Universidad Ana G. Méndez hospitality and culinary programs, Esencia appears to address skill and talent development. However, meaningful access to these resources should also be available to existing residents.
The median household income in Cabo Rojo is approximately $26,408, while 38.4% of the population lives below the poverty level (U.S. Census Bureau) Under these conditions, a private school would likely serve many of the approximately 900 new residents associated with Esencia more readily than current residents, due to both financial accessibility and limited capacity. In addition, if Esencia develops its own electrical and water treatment infrastructure primarily for internal use, the broader capabilities of Boquerón may see limited improvement. Together, these dynamics could widen existing wealth disparities rather than reduce them.
While Esencia may partially meet the U.S. Economic Development Administration definition of economic development, it is also important to consider where it may fall short. Economic development without community development can disengage local individuals and businesses from the economic growth and improved quality of life that projects like Esencia promise to bring. This story is still unfolding, but if current efforts do not intentionally incorporate the existing workforce, entrepreneurs, and institutional strengths of Boquerón and Cabo Rojo, the project risks generating growth without broad based community support.
References
Cabo Rojo Municipality: caborojo.com
Universidad Ana G. Méndez: uagm.edu
U.S. Census Bureau: census.gov
U.S. Economic Development Administration (EDA): eda.gov