30 Jun Cities Serving Creditors, Not Citizens: The Paradox of Urban Sovereignty in Puerto Rico

Marjorie Segarra Rejincos

Business School, IE University, Madrid, Spain.

Dual Master in International MBA and International Development..

E-mail:segarrarmarjorie@gmail.com.

Abstract

Puerto Rico faces significant challenges in achieving Sustainable Development Goal (SDG) 11, which aims for safer, resilient, inclusive, and sustainable cities by 2030. The island’s historical context of colonialism, economic instability, and susceptibility to natural disasters has severely deteriorated its poor infrastructure, exacerbating social mobility issues. Inadequate housing and systemic inequalities disproportionately limit access to essential services. Hurricanes María and Fiona, alongside frequent earthquakes, reveal long-standing deficiencies in disaster preparedness and sustainable urban planning. Austerity-driven budget cuts have further hindered municipalities’ ability to address local needs. Despite these setbacks, local initiatives like the El Caño Martín Peña Community Land T rust represent community-led organizations and resilience. This article examines the intersection between federal oversight and local governance, emphasizing the pressing need for sustainable and equitable urban planning investments. Using quantitative data from Puerto Rican statistical agencies, interviews, and policy analysis, the study pinpoints systemic barriers to achieving SDG 11 and proposes actionable recommendations. These recommendations prioritize empowering municipal governments, fostering public-private partnerships, reforming restrictive federal laws, and recreating successful community-driven models. Targeted reforms and strategic investment are crucial in guiding the island toward long-term climate resilience

and sustainable urban development.

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Keywords: Sustainable Development Goal 11, Estado Libre Asociado (ELA); Puerto Rico Electric Power Authority (PREPA); Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA); Fiscal Oversight and Management Board (FOMB); LUMA Energy; Jones Act of 1920; Act 20; Act 22; Act 60.