Next City : The Secret to Long-Term Recovery in Puerto Rico?
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Six years after Hurricane Maria battered Puerto Rico, killing almost 3,000 people and causing $139 billion worth of damages, the island is still rebuilding. To support these vital restoration and climate resilience efforts, residents turned to a local mutual aid model known as cooperativas. When Puerto Ricans were completely isolated, with no power, communications or banking system, cooperatives opened within two days and began creating workarounds to support residents.
Today, these co-ops are undergoing an important transformation: Many are gaining recognition from the U.S. government as community development financial institutions, or CDFIs. And with that comes some important perks, namely access major new funding and grant opportunities.
“Arising from the ashes is actually a flourishing CDFI sector, and these CDFIs are actually helping bolster the island's financial system and helping the poor people prepare for other natural disasters,” says reporter Christopher Williams, who covered this movement last year. Before Maria hit, there were eight CDFIs on the island. Now, there are close to 100 institutions, serving about a third of the population.
That growth is in large part thanks to the work of Inclusiv, a New York City-based CDFI that provides access to financial tools to low-income Puerto Ricans. To support those people who had long relied on the island's cooperativas, they're helping cooperativas become certified as CDFIs with the U.S. Treasury Department.
“The way that Puerto Ricans do cooperatives and do the credit union movement is a bit different from how it's done in the U.S.,” says Rene Vargas Martinez, the director of Inclusiv's Puerto Rico Network. “It really replicates us as a people. Our culture is a culture of solidarity. We help each other when there are crises.”
To learn more about Puerto Rico's financial cooperative movement and its growing CDFI network, listen to this episode below and subscribe to Next City. And for more such stories, check out our ongoing CDFI Futures series where we're exploring the community development finance industry through the lenses of equity, public policy and inclusive community development.
Today, these co-ops are undergoing an important transformation: Many are gaining recognition from the U.S. government as community development financial institutions, or CDFIs. And with that comes some important perks, namely access major new funding and grant opportunities.
“Arising from the ashes is actually a flourishing CDFI sector, and these CDFIs are actually helping bolster the island's financial system and helping the poor people prepare for other natural disasters,” says reporter Christopher Williams, who covered this movement last year. Before Maria hit, there were eight CDFIs on the island. Now, there are close to 100 institutions, serving about a third of the population.
That growth is in large part thanks to the work of Inclusiv, a New York City-based CDFI that provides access to financial tools to low-income Puerto Ricans. To support those people who had long relied on the island's cooperativas, they're helping cooperativas become certified as CDFIs with the U.S. Treasury Department.
“The way that Puerto Ricans do cooperatives and do the credit union movement is a bit different from how it's done in the U.S.,” says Rene Vargas Martinez, the director of Inclusiv's Puerto Rico Network. “It really replicates us as a people. Our culture is a culture of solidarity. We help each other when there are crises.”
To learn more about Puerto Rico's financial cooperative movement and its growing CDFI network, listen to this episode below and subscribe to Next City. And for more such stories, check out our ongoing CDFI Futures series where we're exploring the community development finance industry through the lenses of equity, public policy and inclusive community development.
Next City
Join Lucas Grindley, executive director at Next City, where we believe journalists have the power to amplify solutions and spread workable ideas. Each week Lucas will sit down with trailblazers to discuss urban issues that get overlooked. At the end of the day, it's all about focusing the world's attention on the good ideas that we hope will grow. Grab a seat from the bus, subway, light-rail, or whatever your transit-love may be and listen on the go as we spread solutions from one city to the Next City .
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