Inaugurated during the 1940s, Operation Bootstrap had succeeded by 1982 in attracting investments from more than 500 US corporations. The principal Puerto Rican agencies responsible for this transformation are the Administración de Fomento Económico, known as Fomento (Development), and its subsidiary, the Puerto Rico Industrial Development Co. (PRIDCO), which help select plant sites, build factories, hire and train workers, and arrange financing. Fomento reorganized certain industries, taking a direct role, for example, in promoting export sales of Puerto Rican rum. At first, Fomento brought in apparel and textile manufacturers, who needed relatively unskilled workers. More recently, with the improvement in Puerto Rico's educational system, Fomento has emphasized such technologically advanced industries as pharmaceuticals and electronics. Industrialization has also required heavy investment in roads, power, water facilities, and communications systems.
The primary incentives to investment in Puerto Rico have been lower wage scales than in the continental US and the exemption of up to 90% of corporate profits from island corporate and property taxes for five years, with a descending rate of exemption that could last as long as 235 years in some regions. The commonwealth government created a 218-acre (88-hectare) free-trade zone in the San Juan area that allows companies to assemble imports duty-free in government-built warehouses for export from the island.
The government's Economic Development Council reported in 2002 that by the end of fiscal year 2003, $3 billion would have been invested in manufacturing projects and $500 million in tourism. In 2002, $2 billion was invested in public works, and $2 billion was budgeted for 2003. Between 2001 and 2003, $4.3 billion was targeted for six economic development regions, including the Mayaguez-Ponce Expressway and the Santiago Channel.
PRIDCO reported that 253 new businesses were established in 2002 with 11,296 new jobs created with $1.1 billion in investment. Approximately 5,200 jobs were retained with a $170 million investment, and 110 projects were being promoted, with a possible 15,724 new jobs being created with $408 million in investment.
The government's plans for urban center rehabilitation in 2003 included $165.5 million for 80 revitalization projects in 18 municipalities. Economic development was being geared toward five sectors: pharmaceuticals, biotechnology, medical instruments, communication and information technology, and health services. The government launched "Puerto Rico 2025," a long-term economic and social development plan directed to ensuring the commonwealth's competitiveness in the global economy.