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After 390 years of Spanish colonialism, Puerto Rico was ceded by Spain to the United States, as a result of the Spanish-American War and the Treaty of Paris. At the dawn of the 20th century, the situation on the Island was one of extreme poverty, high unemployment, and widespread illiteracy. Federal programs alleviated the situation on the Island but began to institutionalize a major problem: the evil of passively waiting for economic aid from abroad, instead of seeking to solve the problems by its own initiative.

The Situation of Puerto Rico in the First Half of the 20th Century