In order to help alleviate Puerto Rico's massive $72 billion debt, government officials held a meeting on Thursday, hoping to attract wealthy investors to move to the U.S. territory.

Courting the Wealthy

Hundreds of millionaires and billionaires attended the meeting held at Puerto Rico's convention center. While there, government officials promoted local tax incentives to entice investors to come and invest in the island, which has struggled with a staggering debt for the last nine years.

The speakers present at the event included former New York City Mayor Rudy Giuliani and New York hedge fund billionaire John Paulson, who said the island's fiscal situation must be resolved in order to encourage more investment.

"It has created some halo around Puerto Rico," said Paulson, who has purchased luxurious resorts in Puerto Rico, according to The Associated Press. "I find the lifestyle very, very attractive. It's something I would consider in the future, but right now I'm in New York."

However, although Puerto Rico has successfully recruited other millionaires and billionaires to move to the island in the past, critics question whether that has helped boost job creation and real estate investment enough to make an impact on the debt.

Dr. Victor M. Rodríguez, a professor of Chicano and Latino Studies at California State University, Long Beach, slammed the idea of lobbying a coalition of hedge fund and bond holders invest in Puerto Rico's collapsed real estate market.

"The luring of millionaire has not and will not make a dent in re-energizing the economy or the government finances," he told Latin Post in an email.

"Only measures like eliminating the Cabotage Law which forces an island to use the U.S. merchant marine, which increases the cost of living, or Puerto Rico establishing a local bankruptcy law that could allow the colonial government to begin to place its house in order. These measures can only be contemplated in the context of a de-colonizing process not a process to increase the colonial noose around Puerto Rico," he said.

Gov. Padilla's Promise to Resolve Crisis

During the meeting, Puerto Rico Gov. Alejandro Garcia Padilla assured investors that the government is working hard to resolve its financial crisis. He also called for a restructuring mechanism and noted that local lawmakers have proposed a bill to help the heavily indebted public power company finalize a separate restructuring deal with creditors.

"Despite whatever you may have heard about doing business in Puerto Rico, our commitment to the costs of utilities will be the last of your concerns," Garcia said.

One investor who attended the meeting said he was relatively unbothered by the island's economic crisis.

"You're operating your business elsewhere," said David Jones, president of a Florida-based insurance services company.

Likewise, hedge fund manager Michael Tennenbaum seemed happy with his recent decision to move to Puerto Rico from Los Angeles.

"One of the reasons I came here is because I thought you'd hit bottom," he said. "When you run out of cash, I think that brings change."

Congressman Says It's Time to Free Puerto Rico

On Feb. 11, Democratic Rep. Luis Gutiérrez of Illinois urged Congress to "free Puerto Rico" during an impassioned speech on the House floor, as the island's debt crisis continues without resolution.

"Free Puerto Rico ... so she can solve the problem of her crushing debt without being handcuffed by Congress, its distant and inattentive colonial master," the congressman said.

He also urged Congress to help chart a path forward and to consider a broader definition of "debt" with regards to Puerto Rico.

"Mr. Speaker, when Congress talks about Puerto Rico's debt, I say we look at the totality of the debt; the part owed to Puerto Rico, not just the part Puerto Rico owes to Wall Street," he said.

Dr. Rodríguez says he agrees with Gutierrez's call for Congress to grant the island the independence it needs to establish sovereignty.

"All power over Puerto Rico resides in the U.S. Congress," he said.

He added that "Puerto Rico does not have the tools which sovereignty provides to restructure its finances, its economy because most of the measures are in the hands of congress."

Watch a video of Gutierrez's speech below:

*This article was updated to include direct statements from Dr. Victor M. Rodríguez.*

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