Tax Aspects of the Trust The Continuation of a Government Represent one New Phenomenon in Politics Venezuela, a mirror in wich look
www.rbc.com.pa
February Edition ISSN 1726-1477
CONSEJO EDITORIAL José Javier Rivera
Giovana del C. Miranda
Fotografía - Mariela De Sedas de Sanjur Roberto Ramos Diseño y Portada: Virginia Medina
Legislación y Economía es una publicación de
Rivera, Bolívar y Castañedas, que tiene como propósito principal
mantener informados a nuestros clientes, empresarios, industriales, ejecutivos, banqueros, inversionistas, y a
todo aquél que tenga interés en los temas que
Opina en nuestra sección de blogs accediendo a: http://www.rbc.com.pa/Home/Blog/tabid/138/language/es-PA/Default.aspx
publicamos. Rivera, Bolívar y Castañedas
@rbc_abogados
Nuestras oficinas se encuentran ubicadas en Calle Aquilino de la Guardia, Urbanización Marbella Torre Banco General, Piso 9 Apartado 0819-08632 Tel: (507) 397-3000 Fax: (507) 397-3009 Panamá, República de Panamá
CONTENT EDITORIAL P.6 WHY VENEZUELA DOESN’T HAVE TOILET PAPER? HOW DOES ONE OF THE LARGEST OIL PRODUCERS IN THE WORLD TO RUN OUT AS BASIC INPUT LIKE TOILET PAPER?
PLUMA INVITADA P.10 THE USE OF SUGARCANE AS A BIO FUEL NORMAS DE INTERÉS P.12 VENEZUELA, A MIRROR IN WHICH LOOK P13. THE NATIONAL BUREAU OF AIRPORT SECURITY IS CREATED P.13 PERCENTAGE RATE FOR COMPLIANCE WITH LIQUIDITY WAS MODIFIED P.13 . CHANGES AT THE FUND OF OCCUPATIONAL SAFETY, HYGIENE AND HEALTH IN CONSTRUCTION
CONSULTA, DOCTRINA Y JURISPRUDENCIA P.14 APPEARANCE TAX TRUST LAW 1 OF JANUARY 5, 198 BY WHICH THE TRUST IS REGULATED IN PANAMA AND OTHER PROVISIONS ARE ADOPTED P.17 THIRD ROOM SENTENCE POLICE TO PAY DAMAGES POLÍTICA P.24 THE CONTINUATION OF A GOVERNMENT REPRESENT ONE NEW PHENOMENON IN POLITICS
CONTENT ECONOMÍA PANAMEÑA P.23 COMMENT ON INDEX NATIONAL URBAN CONSUMER PRICE: JANUARY 2014 P.23 CONSTRUCTION RESUMES ITS BOOM IN DECEMBER 2013 P.24 STUDY PRESENTS NEED FOR LABOR
ECONOMÍA MUNDIAL P.28 PROSPECTS FOR LATIN AMERICA AND THE CARIBBEAN 2014 P.30 “LATIN AMERICA SUFFERS MORE THAN 30% OF THE WORLD HOMICIDES” P.32 DIMBLEBY CONFERENCE OF 2014 LAGARDE ADVOCATES A “NEW MULYILATERALISM FOR THE XXI CENTURY”
CAPSULA DEPORTIVA P.34 IRONMAN 70.3 - A PERSONAL HISTORY
CULTURAL CAPSULE ACTIVITIES FOR THE MONTH OF FEBRUARY
Why Venezuela doesn’t have toilet paper? How does one of the largest oil producers in the world to run out as basic input like toilet paper? By: Marco Canepa - web page El Definido Link: http://www.eldefinido.cl/actualidad/plazapublica/1863/ Por_que_Venezuela_no_tiene_papel_higienico/
A don’t
while ago, I just assumed Mr. Maduro as a replacement of the late Hugo Chavez at the head of Venezuela, the tropical country made headlines for a rather unglamorous fact: people waited in long queues for goods which usually consider a luxury: toilet paper.
alleged coup plots by employers or organized attempts by foreign powers. It’s simply a matter of basic economics. The intent of this article isn’t to criticize anyone, neither Chavez nor Maduro or any of those who have tried the same thing in the history of the world, but simply, which we are able to explain why this is what happens, to recognize these situations time and not end up happening to us as well (again).
A few days ago, Venezuela came back again to news product of the manifestations of some students weary of insecurity, which has climbed to a national movement, which now also calls for high inflation (56%) and scarce of commodities, among other. problems. To
CHRONICLE OF A ANNOUNCED CRISIS understand
the
problem,
say
an
example.
Don’t know about you, but hearing this news, I couldn’t Say you are a person with heart as well, genuinely conhelp but wonder: How does one of the largest oil produ- cerned about their peers and become president of a cers in the world to run out as basic input like toilet paper? country with much poverty and inequality. You naturally want to help the poor and for that there are two ways: A story that is repeated The first is to follow the traditional way, the long way, to The truth is that a crystal ball wasn’t needed to pre- try to grow the economy, improve education and job traidict that this would happen. In fact, it has happe- ning, promote employment and entrepreneurship, to levels ned countless times in the history of the world, almost of full employment and thereby to rise salaries. Accomalways the same, but for some reason, still don’t learn. pany it also with social policies that ensure equal opportunities for all and ensuring the basic rights of all citizens. The events follows a pattern that is repeated over and over again almost identically each time a certain unwise econo- This road is not convinced. mic logic is followed. And it has nothing to do with the 6. Legislación y Economía - Febrero 2014
Step 1: The “easy” way
In addition, many of their inputs from abroad or You know that if you merely grow the economy, wealth aren’t in their pricing policy, so those inputs continue will stay in the pockets of big business. I have already seen to rise, while the products manufactured with them, it happen enough. Moreover, the process is too slow, not can’t sell more expensive. You adjust prices from time going to wait a decade or two to see some social justice. to time, but always comes too late, so many companies simply stop machines or cease to matter. Obviously, You are sure that there is another way, a faster, more direct: Your country has the wallet full and no time to lose, so that is Nobody rides a business to pursue lose money. released to distribute subsidies, bonuses and free social benefits by the handful, to bring that wealth quickly people. This, Proceeds from industry shutdown, many peobeyond the fiscal balance (ie, spends more than it collects). ple lose their jobs, so they obliged to implement more employment programs and bonuses at To make sustainable higher spending, strongly rai- the expense of the state, to contain the situation. ses taxes to businesses and fortunes. You may even, to make quick cash, order print more money. Step 4: Rationing = Black Market Step 2: Easy Money = Inflation
Now you have another problem, because the result of the stoppage of imports and domestic production, shortage beAt first all is well, people love him and his situation seems to gins. The supermarket shelves start to empty and some probe improving... But a problem begins to emerge: prices are al- ducts become scarce. People captures everything that they can. most up to par with your generous support, negating the effort. To try to curb the problem, you begin to raWhat’s going on? Excess money supply is generating in- tion the sale of goods and essential supplies. Set flation. Logical: if there is more money circulating, that maximum odds for every family and business. money “is less valuable” so to speak. To understand it, imagine that diamonds began to grow in trees Would we The problem is that doing so is quite cumbersostill considering so valuable? What gives value to dia- me and costly, forced to divert much money and monds is their rarity and cost of extracting them. Also, personnel to the task and the thing lends itself to what gives value to money, are you have to work to earn it. all kinds of arbitrary, cronyism and corruption. When everyone starts to get them free, loses its value. There- As some people quotas assigned by the government fore, as silver “worth less” prices of goods and services rise. would be inadequate and others have left to spare, begins to form a black market in which these products are The second factor that influences the pro- sold informally much higher than price you posted. blem is that these taxes applied to companies that are transferred (partially or fully) to the user. Thus comes into existence an “official” inflation, considering prices of shops and a “real” inflation considered black marStep 3: Pricing = Shortage and unemployment. ket prices. In any case, inflation is beginning to slip away. Seeing this, you rages These unscrupulous businessmen are ruining all your effort with their greed! So he decides to take action on the matter: Time to fix prices. Yes, you are a fair person and setting a “fair” price for things. Enough to leave the business, but no one gets rich at the expense of others.
Step 5: Takings = Capital Flight You begin to suspect that many companies are selling direct to the black market to get better margins. And even if not, you can’t allow the companies to continue halting production and reaching the determination that state should take over. expropriations begin.
The problem, of course, is that you keep giving away money and money is losing its value, so that “fair” price quickly becomes insufficient for companies that fail to cover their costs Much of the stock market value of compaor obtain such low margins, the business loses the appeal. nies are going down because investors fear to 7. Legislación y Economía - Febrero 2014
be expropriated, makes them sell at any price.
coming another burden in his heavy debts backpack.
Entrepreneurs and great fortunes of the country put Step 8: Crisis the outcry and many begin to pack their bags and move their wealth abroad. Other product of high inflation, This last part can be postponed for many years and took refuge in safer currencies for trading products. (depending on how large pockets of the country concerned) and take the most diverse forms. The massive dollar purchases, to take money abroad, makes losing even more value to your do- Also may decide to devalue the currency, thereby saving mestic currency. This increases further imports. money and people lose much of its value, which creates major upset. You may even decide to use savings and penStep 6: Attaching Change = More shortages and black sions of its citizens to pay their debts. This causes people market. to run to pull money out of banks, making you collapse or be forced to block withdrawal of money (a bank “yard”). Capital flight is worrying if things are continues, soon there will be great wealth to pay millionaires tax, so de- Alternatively, the result of the above or shortage or unemcides to limit foreign currency exchange, by way of set- ployment or inflation ... or all this together, the people who ting the change, why not impose quotas to use dollar. loved him so much at the beginning of his mandate, now hits streets to protest and finish replacing their governThis again has an impact on industry and trade, which now ment, whether democratically at the ballot box or by force. must justify each payment sent overseas and meet quotas that you have assigned. Most imported products, which helped Or perhaps, if you have been cautious and kept gecontain the problem a little shortage, also becoming scarce. nerously well supplied to armed forces, can cling to power by force, leading to a de facto dictatorship, duSoon, a dollars black market emerges, once ring which will continue to adjustment after adjustment again traded at much higher values of rate. to try to reverse the inevitable decline of its economy and progressive impoverishment of its population. Step 7: Fiscal deficit = Debt Whatever the outcome, it is clear that good intentions On the other hand, their assistants tell you something did not give the expected result and that, far from heldisturbing: Your expropriated companies are opera- ping those who wanted to support, ended up hurting. ting at loss and can no longer pay its suppliers and employees. Aware that, due to high inflation, raise product And what would be the way, then? prices to prevent losses worsen matters further, finds that the State will pay for the losses of their companies. Unfortunately, there is no “magic bullet” to cure the poverty of a single touch. Moreover, social programs are coming out a pretty face. The cessation of business and unemployment that It’s a large, complex problem that is the result of countless have generated, have forced more and more people add variables. Therefore, also requires complex solutions: imto their profits. Furthermore, loss of business and ca- proving education (access and quality), improve job traipital flight, do you achieve increasingly raise taxes. ning, promote entrepreneurship, improve competence of In addition, due to triggered inflation, mo- enterprises, promote employment, improve collection of tax ney is worth less each day and its funds, once authorities to deliver social programs so responsible, etc.. All so abundant, start to look disturbingly scarce. this in a context of economic and social stability and security. No choice but to borrow from international lenders, despite that country risk is sky high and, therefore, interest rates are soaring. The new money at first is very welcome and allows you to get by, but in absence of structural change their spending, end up be8. Legislación y Economía - Febrero 2014
Not “State or Market”, both paths are not necessarily incompatible. On the contrary, seem to be needed each other and that is the path followed by most of the developed economies: promote a strong and robust economic growth and a competitive market, but ensure good distribution of wealth with progressive economic and social policies.
No matter whether they are governments of the left, center or right, the vast majority of developed countries has found a balance between the two forces. Some are loaded over the state, others are inclined to the provision of private services. Whatever the way, no one is perfect, but the best we’ve found so far. The rash may sound tempting shortcuts and even a first time, seem more effective, but in the long run, end up hurting more people seeking help. L&E
9. Legislación y Economía - Febrero 2014
THE USE OF SUGARCANE AS A BIO FUEL
W
hen I started the topic of ethanol (alcohol) in Panama, I shared a note. With the 2012 figures were produced at the time about 15 million liters, of which between annual 12-13 million, if I remember correctly were used in the liquor industry. the rest, in medicines, perfumes, industrial use, etc.. To fill the 10% target for the share of ethanol for gasoline would be required, the level of oil consumption in that period excluding diesel, about 80 billion liters of ethanol. Clearly, domestic production wouldn’t be sufficient. From my experience in agriculture, I remember that the “beds” or production lines sugarcane delayed about 3 years to produce. I mean, I could, except crops hadn’t reported lack of ethanol in the medium term and could attract imports. Or was, 5% is used in Panama only. The rest of the country, without using gasoline additive.
Francisco Bustamante rbcweb@rbc.com.pa
crops. (c) desertification of much of Cuba, Haiti, Brazil northeast, has some connection with this sugar development. I reflected on it, but I kept quiet, hoping that other voices, or feathers, most authoritative would argue about it. Technical silence. And what’s worse, only praise or attacks stakeholders. Unless an article by a Dr. Flores, I think I managed to read. I remember in Brazil ethanol development was not isolated from a comprehensive exercise to resolve a flaw in the I and II National Plans Unfolding. The energy knot. Nuclear power plants, hydroelectric dams like Itaipu, oil exploration offshore Petrobras and development of the ethanol industry were developed, drawing on experience in growing Brazil. And related industries such as plywood or laminates were developed using waste from sugar cane.
In Panama I see that combined energy plan. And I think this is one element that lacks credibility as far promote ethanol as a substitute for imported fuel, and raises suspicions about the NO wanted to avoid damaging the party something to talk related interests. Development of niche markets in power, to you about my love of history, after the economic tilt drawing inside information. I regret this, because of the seasoned told me. Monoculture of sugar cane, encoura- lack of professionalism in handling these issues, even good ged the importation of slaves in America, because it was measures can be seen in its national tarnished credibility. labor intensive, as was the cotton in the American South. With sugar cane, we are seasoned folklore and meals, sla- I was recently at a conference on international issues. On very, relieved by the gospel taught to force the slaves. the same theme Analyzed oil in the Middle East. Incidentally, I commented that the seminar I met a female activist There were other drawbacks, call it that: (a) the culture cau- movement of the Wailing Wall, who have been imprisoned sed deforestation of natural forests to expand the dedica- for using ritual vestments reserved for men. I’ll be back. ted land, (b) competition with other water uses and other 10. Legislación y Economía - Febrero 2014
I regret this, because of the lack of professionalism in the management of these issues, even good Measurements are shown marred in its national credibility. At the conference it was said that USA has found significant oil reserves. Venezuela is also presumed to have (something to do with the current topic of internal insurrection?), Mexico is expected to open to private investment to expand exploration and find other sites. And the shale or shale, which exists in large quantities and in USA and other powers begin to exploit it. In the seminar, there was speculation about the possible impact of these developments on the conflicts in the Middle East, the potential loss of importance of the region to USA as a supplier of oil and the implications for the survival of Israel. I think that in politics there are NO empty, and if that scenario comes to be, other European powers like Russia and China and to a lesser degree, try to fill it. Which in turn would force the hand of USA to maintain its presence. I make this digression to call attention to the issue of production of bio ethanol, which also has reviews by competition for the dedication of land in lieu of food to sugar cane or other crops could be affected by increasing the availability of oil, as envisioned in the seminar I attended. Ah, I forgot to let you know that bioethanol processing plant is a modular investment starts with a minimum of 10 to 15 million dollars. It is NOT an investment for anyone. And finally, I don’t oppose the use of ethanol. But instead of a protected old and outmoded style infant industry activity (in contrast to globalization hand), would have appreciated that would have allowed me to make the decision whether or not to use the fuel mix. As in other civilized countries... L&E
11. Legislación y Economía - Febrero 2014
VENEZUELA, A MIRROR IN WHICH LOOK
F
ebruary 12 is a historic day for our Venezuelan brothers , given that in 1814 was fought the Battle called Victoria ; which was a battle of the War of Independence of Venezuela in which Patriots defeated the royalist troops . In commemoration of this date and Youth Day , on 12 February, in 38 cities with massive support both against and in favor of the government , some marches were developed. The leaders of the Venezuelan opposition María Corina Machado and Leopoldo Lopez, seizing the opportunity , decide to convene a group of student movements as a peaceful demonstration against the socialist government of Venezuela led by Nicolás Maduro , this due to the scarcity and shortage of products and utilities . At the conclusion of the activity , at the headquarters of the Office of Caracas was followed by a clash between police and demonstrators that caused the exchange of fire between several groups with different versions, the government accused opposition students and the opposition accused armed groups ruling ; this resulted in the death of a student shot in the head. After this incident, the National Telecommunications Commission of Venezuela (CONATEL ) ordered cable operators get their programming channels to violent situations that were occurring not disclose ; have since riots occurred throughout the country . President Nicolas Maduro considered this protest as a coup to his government, however , opponents argue that these statements are only seeking a fairer Venezuela for all citizens . Thus , as the Venezuelans in all countries of the world and foreign , wanted to raise their voices and join even from afar to the protest , marching and demonstrating outside the different embassies and consulates of Venezuela in the different countries. Even social networking has helped the spread of information through virtual protests or famous hashtags in twitter , videos , photos, show the world that allow what Venezuela is living in these last days .
12. Legislación y Economía - Febrero 2014
Astrid Tuñon Vlieg astrid.tunon@rbc.com.pa This situation is an extremely polarized situation in which the town is divided into opposite and quite radical positions . If anything history has shown is that social conflicts ( against nation ) do not provide solutions to political and economic problems of a country. Instead only provide , confrontation, pain and instability for a country. In this sense a dialogue between the parties, in order to find solutions to the chaotic situation that exists in this country is necessary. Panama should look in the mirror to avoid falling into a critical situation that exists in Venezuela , because as we go through the same situation . I say look in the mirror because all these conflicts that our country is facing brother, are the source of power in perpetuity Hugo Chavez and now Nicolas Maduro and wear those governments dragged several years ago. In our case become increasingly apparent lust for power from the executive branch designed to continue to rule. This is why you should look very carefully the formula used by the current administration in which some analysts have pointed out, excessive support the official candidate José Domingo Arias evidence to make the Democratic Change party remains in power and rule for 5 years, a scenario that could lead to a political and social criticism as the Venezuela situation. Expectations are high and although there is talk of a strong opposition win possibilities are not ruled by the ruling. It is for the citizens go to the polls and think about our future, taking into account what is happening in Venezuela. L&E
THE NATIONAL BUREAU OF AIRPORT SECURITY IS CREATED Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
T
PERCENTAGE RATE FOR COMPLIANCE WITH LIQUIDITY WAS MODIFIED Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
S
he Ministry of Public Security by Executive uperintendency of Banks recently issued ReDecree # 23 of 6 February 2014 created the solution of Board SBP-GJD-0003-2014 of 28 National Aviation Security as a unit responJanuary 2014 and published in Official Gazetsible for planning, directing, coordinating, te 27469 of February 6, 2014, for which the monitoring and evaluating institutional acdeadline for amending and fertilizers provitions aimed at strengthening the operational capabilities des that no more than thirty percent (30%) of liquid asof tactical sectors of public security in the airport area. sets used to calculate liquidity ratio may consist of fertilizers obligations that are payable within one hundred The newly created Directorate, mission will guide the develo- eighty six (186) calendar days from liquidity report. pment of the provision of public safety services in the domestic airport area, through the formulation and implementation of It should be noted that the change is focused on reducing policies to facilitate the development of civil aviation safely. the percentage before the reform was fifty percent (50%) and has been reduced by twenty percent (20%), which Furthermore, the Directorate has to have a Comprehensive resulted from a review by the Superintendency of Bank Aviation Security Manual, which will be binding on the Ci- showed that it was necessary to change the percentage. L&E vil Aviation Authority, Executive Secretary of the Security Council, National Customs Authority, National Police, Naval Air Service and National Immigration Service. Whose content will be considered restricted information character. L&E
CHANGES AT THE FUND OF OCCUPATIONAL SAFETY, HYGIENE AND HEALTH IN Giovana del C. Miranda G. - Abogada CONSTRUCTION giovana.miranda@rbc.com.pa
E
xecutive Decree No. 19 of February 20, 2014 issued by the Ministry of Labor and Workforce Development Fund Occupational Safety, hygiene and health was modified in the construction industry, in sense of defining the concept of the Fund to be established the contribution made by developer or contractor of the work will be used to cover salary, mobilization, training and equipment requiring security officers. Before the reform, Article 12 provided that contributions were to cover the costs of services provided by the security officer, which might seem a narrow concept and has now expanded the scope. 13. Legislaci贸n y Econom铆a - Febrero 2014
This is an issue that in recent months has raised concerns among different organizations of companies engaged in this activity, since the Ministry of Labor has been given the task of initiating proceedings to impose a fine for alleged violations of the Act to the Directorate General of Labor. L&E
Appearance Tax Trust Law 1 of January 5, 1984 By which the Trust is regulated in Panama and other provisions are adopted
C
José Javier Rivera - Abogado jjr.rivera@rbc.com.pa
oncept: Article1. Escrow is a legal act whereby a person called the settlor transfers property to a person called a trustee to administer or dispose of them in favor of a trustee or beneficiary, who may be the settlor himself.
or affidavit of rings worth ten hundredths dollars (B/.0.10):
CUSTOM PAYMENT Article 8 Act 1 of 1984. Any trust is considered to be ONEROUS, except that in the instrument of constitution of the same one it is found expressly that the TRUSTEE will not get remuneration for his services. HERITAGE TRUST SEPARATE-ENTITY TAXPAYER The goods of the trust constitute a heritage separated from personal goods of the TRUSTEE for all the legal effects, for what the latter will pay separately the taxes, rates or other charges that cause the goods of the trust. Article 15 Law 1 of 1984.
WILL NOT CAUSE THE STAMP TAX Article 973 of the Tax Code 7. Acts or contracts subject to the use of stamped paper whenever the value of the stamped paper used is equal to or greater than the tax that would have paid by stamps. If the stamp duty payable is greater than the value of the stamped paper used stamps must be paid by the difference.
DIFFERENT TAXES THAT BURDEN ACTS, GOODS AND REVENUES OF TRUST STAMP TAX • The will to create the trust must expressly declare in writing. Accordingly, the trust will not be worth as verbal, presumed or implied. (Article 4 of Act 1 of 1984) • The trust on real property situated in the Republic of Panama shall be given by public instrument. (Article 11 of Act 1 of 1984) • Article 967 of the Tax Code establishes the Stamp Tax rate applicable to the trust agreements that aren’t exempt under section 35 of Act 1 of 1984. The relevant part provides: • Article 967. It must be affixed by franking machine
14. Legislación y Economía - Febrero 2014
2. Any document containing an act, contract or obligation greater of Ten Dollars, which has no excise duty in this chapter and be about business or business subject to the jurisdiction of the Republic for each one hundred dollars or fraction percent of value expressed in the document.
Article 959. There will be only one class of notarial paper a value of eight dollars (B/.8.00). … Article 973 of the Tax Code: 20. The documents related to issues or businesses that do not produce income from a Panamanian source, as defined in Article 694 of this Code, unless such documents should be used before the courts or administrative authorities of the Republic, in which case they should join the stamps corresponding to make such use of them. ITBMS • Article 1057-V. A Tax on the Transfer of Movable Property and Service Delivery carried out in the Republic of Panama is established. PARAGRAPH 1. It will cause the tax, in
the way determined in these provisions: • b) The provision of services for all types of traders, producers, industrialists, professionals, landlords goods and service providers in general, excluding personal data that are provided as an employee. • In paragraphs 7 and 8 of Article 1057-V of the Tax Code, which provide services that don’t cause the tax or exempt Escrow services not listed as exempt service. • Executive Decree 84 of 2005 which regulates ITBMS tax makes the following provisions: Section 2. FACTS IMPOSED. Be taxed the following acts: b) The provision of services in any capacity. Article 9. TAX BASE. The taxable amount shall be: h) In all cases, intermediary and / or the provision of services, the basis on which the tax will be calculated on the commissions, fees or amounts agreed or agreed, with total exclusion of reimbursement.
governing when starting the process of Notice of Operation:
NOTICE OF OPERATION TAX • The Law No. 5 of 11 January 2007 states: Section 2. Regulated activities with prerequisites. Natural or legal persons to be engaged in one or more of the following commercial or industrial activities must ensure that they have complied with the statutory and regulatory requirements 15. Legislación y Economía - Febrero 2014
• ANSWER: By Note No. 201-425 of May 28, 1993, this Office, with similar query externalized the following criteria: “We refer to your inquiry dated June 11, 1991 related to the obligation to pay the guarantee trusts the tax of 2% and 5% respectively established by law No. 106 of 1974 and 75 of 1976.
4. Regulated as banks, trust companies, insurance, reinsurance, real estate, pawnshops, money remittances, financial firms, brokerage houses, investment advisors, stock exchanges and central securities. In turn, Article 1004 of the Tax Code provides in relevant part that the annual tax notices cause operating companies will be 2% stake in the company with minimal 100.00 Balboas and a maximum of 60,000.00.
EXEMPTIONS Article 35 of Act 1 of 1984 as amended by Act 6 of 2005. Shall be exempt from all taxes, contributions, fee or charge, acts of constitution, modification or termination of the trust, as well as acts of transfer, transfer or encumbrance of the property given in trust and the income from such property or any other act thereon, provided that the trust be about: Assets located abroad; PROPERTY TAX 1. Money deposited by natural or juridical persons • Property of a trust are taxed at the Pro- 2. perty Tax. The legislation does not specify a spe- whose income is not taxable in Panama or Panama source, or cial rate or an exemption for real estate trusts. 3. Shares or securities of any kind issued by corporations which income is not of PanamaINCOME TAX nian source, even if such moneys, stocks or se• Under Article 81 of Executive Decree 170 of 1993 cons- curities are deposited in the Republic of Panama. tituted trusts under Act 1 of 1984 and are considered taxpayer must determine the tax rates established under Articles 699 CONSULTATION or 700 of the Tax Code as the case of legal or natural persons. Is taxable the transfer of real or perso• Under Article 81 of Executive Decree 170 of 1993 cons- nal property of the settlor to the trustee? 25, 2000No. 201-01-490 tituted trusts under Act 1 of 1984 and are considered taxpayer May In response to the request for clarification to the must determine the tax rates established under Articles 699 answer gave in our letter No. 201 - 01-461 of May 11, or 700 of the Tax Code as the case of legal or natural persons. • Notwithstanding the above, the trust income refe- 2000, in the sense of “if both the transfer by the settlor rred to in Article 35 of Act 1 of 1984 are considered foreign to the trustee at the time of conclusion of the trust wasource as enshrined in Article 10 of the said executive order. rranty as performed by the trustee to the trustor once • If local trusts are considered taxpayers canceled the obligation secured by the trust are exempt should determine the tax under the Tax Code and from Transfer Tax or Personal Property Real ProperDecree 170 of 1993, to determine the tax paya- ty Transfer, we wish to transcribe, then the text of it: ble must implement all the tax rules on taxable income and then determine whether there is profit or loss. • “CONSULTATION: “... Will serve to give its opinion regarding the exemption from Transfer Tax Real Estate (2%) and Tax Transfer DIVIDEND TAX • Article 733 of the Tax Code doesn’t ex- (ITBM-5%), established by Law No. 106 of 1974, as amended pressly provide for the obligation to withhold tax by Act 31 of December 30, 1991 and Act 75 of 1976, respecon dividends or participation fees in cases of trusts. tively, in the transfers made by trusts warranty contracts. “
With regard to the above, it can be mentioned that the first paragraph of Article 1057v Tax Code, as was added by Act 75 of 197, has to be paid the Transfer Tax (ITBM), acts or contracts involve or are intended to transfer title to tangible personal property. Also, literal and second paragraph of the same article states that the obligation to pay the tax arises at the time of the conclusion or contract, or at the time of supply of goods by any means authorized by law. The definition of trust offered by Law No. 1 of 5 January 1984 if it involves a transfer of the trust assets to the trustee, notwithstanding such transfer is limited in securitized loans, which doesn’t involve the full transfer of ownership or the free disposal of assets. Moreover, Law 106 of 1974, as amended by Act 31 of 1991 expressly provides that the transfer tax real estate, only applies to the transfer for value of real property, excluding transfers gratuitously. In this regard, guarantee trusts transfer of the trust assets to the trust doesn’t involve a fee or valuable consideration itself , as this consideration is rather inherent in the loan contract that is guaranteed. Based on the above arguments, and inasmuch as the transfer that occurs in the Guarantee Trust is a limited transmission, which is solely intended to ensure obligation, as well as other traditional media figures or warranty, such as pledge and the mortgage and said transmission lacks consideration or valuable consideration, we conclude that the transfer is made in favor of the settler to return the corpus once fulfilled and canceled the guaranteed obligations we are subject to the payment of transfer taxes of real or personal property or the payment of the taxes imposed by section 1057v of the Tax Code and Law 106 of 1974 as amended by Act 31 of 1991 respectively. However, it should be clear That If These taxes must be paid, Depending on the nature of good, when in case of default of the secured Obligations, the guarantee is executed, That is, When the goods corpus is transferred is to a third party or the creditor to Satisfy his own credit, Whether it be a payment in kind or a transfer for value. “Conceptualize not present new or other evidence to vary the externship criterion.” It is necessary to clarify that the move made by the settlor to the trustee at the time held or constituted the guarantee trust, as the respective return transfer made by the trustee to the trustor, usually once canceled the obligation secured by the trust are Tax exempt property transfer or Transfer of Real Estate established by the Act 75 of 1976 and Act 106 of 1974, respectively. L&E
16. Legislación y Economía - Febrero 2014
THIRD ROOM SENTENCE POLICE TO PAY DAMAGES
U
nder the presentation of Judge Luis Ramon Fabrega, the Third Board had the opportunity to speak within the contentious administrative claim for damages filed by Mrs. Celmira Madrid for the National Police will be condemned to pay damages.
Lucila Rivas- Abogada lucila.rivas@rbc.com.pa
ment of Gonzalez and Cesar Perez Nuñez Celmira Madrid. Later before the regular hearing will be held against the defendant, the President in the exercise of its legal powers granted pardon through Executive Decree No. 894 of October 26, 2010, which was subsequently accepted by the Court first transacting criminal case.
CASE BACKGROUND Send a claimant on October 9, 2004, an incident occurred with Mr. Juan Jose Serrano, an active member of the National Police appointed to Transit Operations and Ground Transportation Service to San Miguelito area and the driver of César Pérez González public transport, where after bringing up the firearm regulations and made a shot, wounded, not only Mr. Perez González but the passenger bus Celmira Madrid Nuñez, on the left side of the head.
REPORT OF CONDUCT Basically the report states that Mr. Juan José Serrano moved to the street of San Isidro to impose sanctions and corrective measures ordered by law to ensure public order, however the driver’s behavior was irresponsible González Pérez, defiant and disrespectful to be addressed by the National Police, I did nothing but neglect, to the point of threatening, assaulting and subjugating the vehicle. Underlying performance of the agent in Article 32 of Law 18 of 1997, which states that the police may use firearms when Plaintiff through its claims, the Board re- necessary to safeguard the lives and safety of others and self. quires That make the Following statements: Also refer to the Penal Code, Article 32, which states that “whoever commits an offense acted in legiti1. The Panamanian government, through the National mate exercise of a right or pursuant to a legal duty.” Police of Panama, is jointly and severally liable for all damage caused. OPINION OF THE ADMINISTRATION ATTORNEY GENERAL 2. The State, through the National Police is respon- Initially noted that as interpreted by the case-law of the sible for all actions carried out by Juan J. Serrano. Board, is authorized the payment of compensation, it is required that the applicant attesting three elements namely: 3. The State is obligated to pay to Mrs. Celmira Madrid the sum of four million seventy thousand eight hundred nine- a. Violation of the law ty-six 94 Balboas (B/.4,070,896.94) by way of damages, plus b. The damage consequential damages, lost profits, moral damages, image c. Causal link between the alleged infringement and the damage, physical damage, plus interest, costs and expenses. damage flattered 4. The State is obligated to pay the necessary expenses for professional fees of counsel, experts and others. It’s important to note that once filed the criminal complaint, the First Criminal Circuit of the Second Judicial Circuit, opens criminal case Mr. José Serrano violator of the provisions contained in Title I, Chapter II Book II of the Penal Code, is say for the crime against Life and Personal Integrity in detri17. Legislación y Economía - Febrero 2014
Also notes that the administrative action is required to under Article 1706 of the Civil Code, which sets the term of one year to require the state tort liability. Than 7 years and 2 months have passed since the October 9, 2004 until December 15, 2011, so that the applicant has exceeded the deadline for demanding accountability. Further notes that Article 1706 of the Civil Code
provides for the prescription of the civil action degree of responsibility, the economic situation of the from the enforcement of the criminal sentence. person and the victim as well as other circumstances. DECISION OF THE BOARD Among the items discussed by the room is Article 1644 of the Civil Code which states that “whoever by act or omission causes damage to another,fault or negligence, is obliged to repair the damage done” Also Article 1645 of the Code, which provides that “the obligation imposed by Article 1644 above, is required not only for the acts or omissions themselves but by those people who must respond.” “The State, decentralized state institutions, and municipalities are responsible if damage through the proper official to appropriate management practiced within the exercise of their functions.” On the other hand pointed out the provisions of Article 1706, which points out that “civil action to recover damages for libel or slander or to demand civil liability for the obligations arising from the fault or negligence of the article is 1644 just as the Civil Code prescribes the term of a year counted from the grievant knew that.” Further states that “if a criminal or administrative action is timely provided by facts, the statute of limitations shall run from the enforcement of the criminal judgment or administrative decision as the case.” Warns that the Board wasn’t until January 4, 2011, to stay notified on Auto Vario No. 348 of 21 December 2010, by which the extinction of the penal action, product Pardon decree presidency. Addition is also clear to the Board that in the present case is the various auto aforementioned is that you could order the termination of the criminal action and the suit was filed on time, every time the same was received on 15 December 2011. The Chamber is being based on Article 1979 of the Judicial Code, or pardon or termination of criminal action civil action harms the victim to seek compensation for damages suffered. Section 1644 makes a distinction between the Board adds moral damage, this being the purpose for which a person has in their feelings, emotions, beliefs, decency, honor, reputation, privacy or consideration of herself with others. Regarding the material damage understood this as the decline or impairment of its assets.
In response to the statement in the preceding paragraph, the judge took into account the age of the person concerned, the monthly income that the victim was receiving at the time the events occurred. We conclude that based on the evidence provided by the applicants, as well as considerations about the moral and material damage suffered, was sentenced to the Panamanian State (National Police) to pay as compensation the sum of Two Hundred Ninety-Eight Thousand Five Hundred Balboas (B/.298,500.00). As regards the payment of costs and expenses claimed the Chamber finds that it can not access the payment of pampering, since according to the article content 1077 of Judicial Code doesn’t condemn the costs in proceedings which the State is party, municipalities, autonomous, semi-autonomous or decentralized entities. OUR CONSIDERATIONS Before we get into one’s considerations of the case at hand, it is important to note that the concept of victim is much more inclusive than the concept that previously had as a passive part in criminal proceedings. So let him assume the VII Congress of the United Nations to define the concept of victim as “a person who has suffered physical or mental injury, damage or loss material, or any other social disadvantage as a result of a criminal act or conduct Nations, is in violation of national criminal laws, or a crime under international law in violation of recognized human rights to the protection of life, liberty and personal security or any of the other cases that means abuse of power, are political, economic or social, whether public servants, agents or employees of the state or corporate entities that are outside the scope of the law. The term victim includes any person who has been victimized, regardless of whether that person has been individually or as a member of the community. “ However, when the injury is caused by that state apparatus called to ensure protection of rights through the members of the institutions that comprise it, other considerations come about. In the special case of the National Police, we are not only against an institution that represents the State but to members of a security group whose actions can injure lethally the rights of others under the guise of compliance with a legal obligation, as sought to justify in this case.
TO DETERMINE THE AMOUNT OF COMPENSATION To determine the amount of compensation according to the Board, take into account the rights violated, the The problem is more serious than you think, first, the mere 18. Legislación y Economía - Febrero 2014
fact of having an impairment in the quality of life of a person from a fact what happens not only personal but familiar transcendence. But besides his own deteriorating human condition, you have to fight a monster that represents itself, called the State. Most worrying that judicial decisions take years to resolve so in the particular case at hand, the Board although I consider the income, age, injuries of the victim, my opinion is that you should also take into account the deterioration of the quality of life of the sufferer and what it represents in their home environment, and because the payment of the costs and legal fees incurred, is already a reality that to access the justice system should done through lawyers, which also represents an expense not covered. The rule states that where the State or any of its institutions are party can’t see convictions in costs or legal fees, should be reformed, because claims for compensation as in this case, is an expense that doesn’t need to be tested and what it does is put in a state of helplessness the victim against the perpetrator. L&E
19. Legislación y Economía - Febrero 2014
The Continuation of a Government Represent one New Phenomenon in Politics Rafaél Fernández Lara rbcweb@rbc.com.pa
In June last year I pointed out in an article, “looming on our political landscape in the elections of 2014, we will have at least three presidential candidates, one representing the government and the other led by two or more opposition candidates”. Indeed, this prediction is true because now we have a total of seven presidential candidates, one of the ruling and opposition remaining, four of which represent politically and three independent candidates. All nominated their candidates for vice president of the Republic in accordance with the law, and participate in the election 4 tournament next May. Of all the choices for nominations for vice president of the republic, which generated more reactions was the wife of the current president of the country, precisely because of his status. I must confess that I have amazed the variety of reactions that motivated this designation. Some have political overtones, others are very sui generis, questionable legal interpretations, and other like a new case, brought from another galaxy and imposed on our next democratic party. Comments like “the continuity of Ricardo Martinelli in power,” which “ doesn’t contradict the constitutional legal order and Panama, but it involves a violation of ethical content of the norm,” “ the spirit behind it is catching the next government “that the” constitution prohibits the wives of the presidents of the republic are candidates for the presidency,” “we are not a monarchy or a kingdom, or want to be,” and others, who are we expressed through different media communication.
ted and listened to strengthen tolerance and democracy. One could then determine if a possible continuation of the government is really a new phenomenon as some would point out. In 1928, when was elected president Florencio Harmodios Arosemena, the perception that existed then was that his predecessor, Rodolfo Chiari Robles, controlled his government, with the possible claim to run for president in the next period, yearning it was truncated by the coup state Community Action January 2, 1931. Followers of Arnulfo Arias Madrid three times President of the Republic, died in 1988 and creator of the “Doctrine Panameñista” tried to continue the political thought of the charismatic leader Guillermo Endara choosing Galimany Mireya Moscoso de Arias and the Presidency Republic in 1990 and 1999 respectively. The General Omar Torrijos Herrera, who ruled in fact from 1968 until his death in a plane crash in 1981, was the father of Martin Torrijos Espino, who was elected president in his second attempt, backed by supporters of his father to support the objectives the so-called “Ideology Torrijista”.
Leaving our borders is the case of Alberto Fujimori of Peru, who was elected President in 1990, reelected in 1995 and 2000, resigned in November 2000 and was sentenced to 25 years imprisonment by the Supreme Court for corruption and violation of human rights. In 2011, while AlIn a democratic society, rule of law and in the short and berto Fujimori was in prison and unable to participate in towards the conclusion of a tournament electoral road, politics, his daughter Keiko Fujimori is released as a canall kinds of opinions are healthy and should be respec- didate for the presidency of the republic representing the 20. Legislación y Economía - Febrero 2014
so-called “Fujimorismo”. Achieved the second position and his followers get a lot of seats in the Peruvian Congress. Manuel Zelaya, elected President of Honduras in 2005, was overthrown in 2009. Being legally disqualified from participating in elections, throws his wife, Xiomara Castro de Zelaya, achieving second place in the 2013 electoral contest. Juan Domingo Perón, democratically elected president in 1946 and reelected in 1952, he was overthrown in 1955 by a military coup in Argentina. In episode 1952 reelection, his followers tried to run as a vice presidential candidate María Eva Duarte, his second wife, the remembered “Evita”. This attempt was unsuccessful due to opposition from some military and other sectors about the possibility that a woman backed unionism could get mate. Peron, political leader of the Peronist Movement or Peronism returned to power in 1973 and marketed as running mate to his third wife, María Estela Martínez, who assumed the presidency upon the death of Perón in 1974. Ms. Martínez was overthrown by the military in 1976. Néstor Kirchner was a member of the Peronist Youth University and was second in the first round of the 2003 elections, accessing the presidency after his opponent, Carlos Menen, resign his participation in the second round. This becomes President of Argentina from 2003 until 2007, when dies. From that year, his wife, Cristina Fernandez de Kirchner, has served as president of the country after being elected by popular vote majority for two consecutive periods. René Schick was elected President of Nicaragua from 1963 to 1966 when he died in his tenure. He was leading figure of the Nationalist Liberal Party and penultimate president of the Somoza dynasty overthrown in 1979 by the Sandinista Revolution. Leonel Fernandez Reyna of the Dominican Liberation Party, was elected Constitutional President of the Dominican Republic in the elections of 1996, 2004 and 2008. In the 2000 elections , for the moment no legal prohibition was launched as a candidate , but he ran to his colleague and confidant, Danilo Medina, leaving it second before whom he won the election victory , Hipólito Mejía. In 2011, close to the 2012 elections, Leonel Fernandez declined their aspirations to be a presidential candidate for another term, but ran back to his co-party for President Danilo Medina and his wife , Margarita Cedeño de Fernández, for vice president. This list was democratically declared winner in the 2012 elections, and now rule the destinies of the country.
me Minister of India for 17 years), was elected Prime Minister and remained in this position for 15 years until his assassination in 1984. Following his son Rajiu Gandhi, who served from 1984 to 1989 was chosen. Janet Jagan of Guyana was First Lady of the country from 1992 to 1997 when her husband and constitutional President, Chedoi Jagan, died in his tenure. Janet Jagan was then elected President from 1997 to 1999, when he died. In the Republic of Colombia twice President Alfonso Lopez, 1934-1938 and 1942-1945, he was the father of Alfonso López Michelsen, who was president during the period 1974-1978. Eduardo Santos Montejo, President of Colombia between 1938 and 1942, was uncle Francisco Santos Calderón, who was elected Vice President of the Republic of Colombia for two consecutive terms (2002-2006 and re-elected from 2006 to 2010). Francisco Santos Calderón is double cousin brother of the current president of Colombia, Juan Manuel Santos Calderón, 20102014, who was also Eduardo Santos Montejo uncle. Misael Pastrana Borrero was President of Colombia between 1970 and 1974. His son, Andrés Pastrana Arango, was also elected President of the Republic, directing the destinies of the country between 1998 and 2002. José Hipólito Figueres Ferrer, founder of the National Liberation Party of Costa Rica was three times President of the Republic, from 1948-1949, from 1953-1958 and from 19701974. His son, José María Figueres Olsen, the same political party, was elected President by popular vote from 1994 to 1998. Rafael Angel Calderon Guardia was President of the Republic of Costa Rica between 1940 and 1944, and his son Rafael Angel Calderón Fournier was also elected Constitutional President for 1990-1994. Eduardo Frei Montalva, the Christian Democratic Party, chaired the Republic of Chile between 1964 and 1970, and his son Eduardo Frei Ruiz was also President of Chile between 1994 and 2000. These and other cases are clear evidence of the desire of a government to stay in governance through a political group is absolutely nothing new, both in our domestic politics and international politics.
Continuity of government historically has given in different ways: through the same political party represenIndira Gandhi, daughter of Jawaharlal Nehru (first Pri- ted by a team of government, a fellow party trust, wife 21. Legislación y Economía - Febrero 2014
or child or relative who aspire to ensure continuity of government plan or program and thinking of a political movement or political leader or group within the existing legal system that considers this possibility in free and democratic elections, respect the popular will. In Panama’s Electoral Tribunal, the regulator of electoral process, said that “the application of the wife of the president has no deterrent law to aspire to the office, because spouses are not relatives by marriage” Therefore, the appointment of the First Lady as vice presidential candidate on the government payroll is legal, is not illegal, and complies with all relevant legal requirements. In any case, independent of each other think for or against, in a democracy will ultimately future sovereign people who decide with their free and democratic vote, the destination and the best interest of the country. L&E
22. Legislación y Economía - Febrero 2014
COMMENT ON INDEX NATIONAL URBAN CONSUMER PRICE: JANUARY 2014 Source: CRGP
T
he Consumer Price Index (CPI) for January 2014, registered a monthly increase of 0.2 percent in the National Urban for the districts of Panama and San Miguelito 0.1 percent and Other Urban 0.5 percent. Compared with January 2013, an increase of 3.4 percent in both the National Urban, as in the districts of Panama and San Miguelito and Other Urban was observed. The divisions showed increases above the monthly average in January 2014 Urban National CPI, compared to December 2013, were: Food and Beverages, Housing, water, electricity and gas and transportation, the three with 0.4 percent, reference them, include rising prices of soft drinks, rental fees and service oil change, in the correct order; Clothing and footwear as well as furniture, household equipment and routine maintenance of the house both 0.3 percent, highlighting the increase in the prices of disposable diapers and the setting of the minimum wage for domestic, employed respectively.
CONSTRUCTION RESUMES ITS BOOM IN DECEMBER 2013 Fuente: CRGP
P
reliminary figures show that in December 2013, is totaled B/.139,625,103 in respect of value of construction permits, additions and repairs in some particular districts of the Republic, which implies a significant increase in activity since the same period in 2012 joined B/.95, 809.776, according to the report compiled by the National Institute of Statistics and Census (INEC). The total for 2013, B/.48,124.014 are the product of residential constructions and B/. 91,501,089 of non-residential. It also shows that B/.127,828.596 belong to the buildings and B/.11,796.507 to additions and repairs.
Both the number of structures (266) and area (527.558 square meters) refer only to new construction that occurred in the period mentioned. In this important activity a great contribution to the national economy, Panama project districts (B/.120,641.635), Comparing the National Urban CPI January 2014, compared David (B/.5,216.206), Santiago (B/.3,415.080), Colon to the same month of 2013, the following percentage increases (B/.3,303.096), San Miguelito (B/.2,107.134), La Choseen:, Health 4.6, 4.5 Food and beverages, furniture, household rrera (B/. 1,953.987), Arraijan (B/. 1, 290.440), Chiequipment and routine household maintenance 3.4 5.2 Educa- tre (B/.988,138) and Aguadulce (B/.709, 387). L&E tion; Miscellaneous goods and services 3.2, 2.7 Clothing and footwear, Recreation, entertainment and cultural services 2.6; Housing, water, electricity and gas transport at 1.5 and 2.3. L&E
23. Legislaci贸n y Econom铆a - Febrero 2014
STUDY PRESENTS NEED FOR LABOR Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
O
n February 6, 2014 Study Needs of migrant labor in Panama, which was prepared by the International Labor Organization and the National Competitiveness Center, seeking to boost the labor migration issues in the region was presented specifically in Costa Rica, Nicaragua, Panama, Haiti, Dominican Republic and so fill the gaps that are in this topic.
The total number of migrants is significant, as mentioned in the previous paragraph, giving them greater proportion of countries like Colombia, Nicaragua, Venezuela, China and Spain. In most cases, the search for better job opportunities and a better quality of life is the main motivation for leaving their home countries. Using the same sample of countries selected macroeconomic indicators that can help you better understand the motivations of people to settle in Panama are presented. Figures 5, 6 and 7 show price dynamics, unemployment and GDP per capita in recent years, as some indicators of the economic situation of each country, which somehow reflect the level of convenience and relaxation, residents have.
Part l study noting that Panamanian labor market has 2.66 million people of working age (over 15 years), of which 1.69 million form the economically active population (PEA), according to the report from the Continuing Survey Households (ECH) 2012 National Institute of Statistics and Census (INEC). For the last recorded year (2012), the Conclusions: employed population showed an increase of 5.4%, which implies the creation of 83.057 new jobs, of these, if 69% The analysis of labor market behavior is a task that are located in urban areas and 31% in other rural areas. involves many variables, among which are population - specifically the number of people of worOn the other hand, it also highlights that the number of king age - as well as the level of preparation thereof. unemployed is the lowest in the last ten years, even reaching historically low levels. The proportion of unemThe growth of economic activity is the main deployed increased from 13.5% in 2002. From the houseterminant of the behavior of the demand for labor. hold survey, 2009 to date, 180,338 new jobs are posted. This behavior is the result of momentum experienced by The Panamanian labor market has 2.66 million peothe economy, achieving an average growth rate of 8% yoy ple of working age (over 15 years), of which 1.69 mifor the last decade, which translates into higher labor dellion under the Economically Active Population (EAP). mand, mainly in the most dynamic sectors (see Chart 1). Indicates that the positive performance of the country is due to several factors, which have contributed to the economy, including: the Panama Canal expansion, increased construction activity and its impact on the real estate market, investment (public and private), telecommunications, tourism and the strength of the financial system.
For the last recorded year (2012) the employed population showed an increase of 5.4%, which implies the creation of 83.057 new jobs, of which 69% are located in urban areas and 31% in the remaining rural areas. In the analysis of the economically active population (PEA), it appears that 60.5% men and 39.5% women, with a participation rate of 63.5% of the total population in working condition.
According to the 2010 census conducted by the Comptroller General of the Republic, about 5% of the poThe need of the labor market to cover working plapulation are migrants. In Figure 4, some selected ces with labor migrant people is evident from the good by the influx of population to countries Panama is. economic performance that crosses the country. This 24. Legislaci贸n y Econom铆a - Febrero 2014
performance is key to defining policies and actions Comparison and projection of migration flows: to be implemented to sort migration flows and rai- Comparing the results of the projections of labor supply se levels of job competition among workers in general. and demand to estimate the potential deficit or surplus labor for the next five years, assuming that the propoMigrants reflect a trend towards specific activities, for sed assumptions for the projections are met, estimates example, men have a high involvement in construc- a deficit in the labor market about 5,000 workers, seats tion, industry and hotels. Women have a greater involve- that could be filled by discouraged (increased participament in social and health services and domestic services. tion rate, including female), unemployed (lower unemBoth genders have an important contribution in trade. ployment) or migrants (greater flow of foreigners). Highlights within the migrant labor flows from Nicaragua, highlighting the construction activities (mainly men) and household activities (mainly women). These two segments of Nicaraguan migrant population have had rates average increase of 18% and 17.3% respectively, accounting for approximately 50% of the working population that comes from the Central American country.
Labor demand
Follow the trend of economic growth in years, migration will increase, especially in ties that require a certain level of education, grants is better placed than national in that
recent activias miregard.
If realized projections and assumptions used in this study, there will be approximately 90 thousand migrants employed in the country within five years, and 60 thousand other migrants of working age people.
That activities such as wholesale and retail, agriculFrom the projection of the total labor demand is expected ture, construction, manufacturing, transport, storato generate a total of more than 250 thousand jobs in the ge and communication is expected, whether the accoming years. The industry that more workers will demand. tivities continue with good performance leading the labor needs in which women are underrepresented. Significant increases in demand for male labor in other activities such as agriculture, followed by the wholesale and retail trade and the construction activity are expected. Recommendations: For women, the demand projection shows that more than 97,000 new jobs will open. The main activities would be the wholesale and retail, households with domestic service, teaching and activity of hotels and restaurants.
Labor supply:
Strengthen and update the information system of the Ministry of Labor and the National Immigration System, so you can monitor the behavior of the labor market, through good communication and exchange of consistent information between the public, private and union sectors for timely and effective decision making by each of the parties. This information also will be key to the effects of feeding migration policies that are issued.
The study results show that the number of people willing to work will increase by approximaKeep bilateral coordination with countries at increased lately 248 thousand people in the next five years. bor migration to Panama through agreement, in order that a tidy income of working people is, subject to the legislation. As for activities with high growth prospects of the labor force according to this year are: the wholesale and Develop training programs and job training (eg, proviretail, agriculture and related activities, construction, ding incentives for private companies), taking into account manufacturing and transport and storage industries. the sectors with the highest employment demand and based on these, provide specific technical training that reThe analysis data of the analysis suggest that in the quire the Panamanian labor market in the coming years . next five years the number of women willing to occupy a place in the Panamanian labor market will Maintain technical training programs - through the National increase by approximately 100 thousand units. Institute of Human Development (INADEH) - in the areas of higher labor demand and encourage a continuous link with 25. Legislaci贸n y Econom铆a - Febrero 2014
the business community to facilitate programs in these areas. Encourage and strengthen the participation of women in training and technical training, in order to expand their opportunities for job openings in non-traditional gender diversify economic activities and their participation in other sectors as well as transcending traditional housework or social service and health. Which brings us to point out, that is a very important issue, which has intensified in the wake of economic collapse that accelerated the movement of citizens from one country to another. Migrants seeking employment opportunities for a better life, but the country that receives them must have an immigration policy based on information which seems to be contained in the Study. In this context we would like to present the figures from the Ministry of Labor and Workforce Development as the processing of work permits for 2013 and so far in 2014: 2013 It had 12,096 of which 11,076 were approved and 1,020 denied. 2014 There have been 675 and 654 were approved and 21 denied. Crisol de Razas 2013 6,103 permits were issued 2014
1,049 permits were approved
It is noteworthy that the numbers of permits melting pot doesn’t match the figures from the National Immigration Service regarding resident permits approved, which leads us to believe that the difference in the number of people remain in informality and therefore does not comply with tax obligations. This leads us to consider that the state must invest more in education and that education should be focused on creating individuals with values that can take advantage of opportunities as a well-educated society is competitive and is more likely to access better jobs with better pay and stability. L&E
26. Legislación y Economía - Febrero 2014
PANAMA INSURANCE INDUSTRY CLOSED WITH PROFIT FOR B/. 1.243M IN 2013 Fuente: América economía
T
he insurance sector closed 2013 with Panama signed by the order of U.S. $ 1,243 million, an increase of 9.3% compared to 2012, this despite the major challenges facing the industry right now raw.
Panama said that on the issue of the status of FTA solutions are being sought. There have been two meetings in which stakeholders have participated and have been taking steps with regard to construction of the premises, are also reinforcing fire equipment, is bringing a new car bomb are buying six tank trucks and is being strengthened in coorJosé Antonio Eleta, from Pan American Life Insurance, dination with the Fire Department of the city of Panama. who took Monday 10 February as president of the union, As for the industry in general, the official said that said that the 2013 was of great results, showing the dyna- one of the important points made in 2013 was raimism of the industry, but had to face some situations as sed to the Superintendent of Insurance Regulaincrease in claims in fires in the Colon Free Zone (CFZ) tory Authority and provide it with new legislation. and the negative impact of it on the technical results. He also mentioned the problems in the technical results of cars, due to an increase in claims and increased costs of spare parts. In Panama there are 31 registered insurance companies, 26 of these are unionized in Apeadea and together represent U.S. $ 1,211.6 million in total premiums. “Technical results of insurance companies in the field of cars and fire are a wake-up call to put the house in order, the problem of the FTA is an issue that we must address responsibly certainly the perception of risk has changed and certainly it is a call to correct a tendency to be corrected because it violates the insurance underwriting profitability, “said Eleta. Meanwhile, Eduardo Fabrega, CEO of ASSA Insurance Company, and outgoing president of the guild figures showed on the status of these items. Bouquet car was at the end of 2013 reflected $ 125 million in claims, an increase of 11.2% over the previous year, which meant a loss ratio of 59% of premiums. While fire ended the year with $ 116.7 million in claims, 41.8% more than in 2012, this is a loss ratio of 103.7% of written premium. Ricardo Quijano, Minister of Commerce and Industry of 27. Legislación y Economía - Febrero 2014
Perspectives.
José Antonio Eleta envisioned that by 2014 the projected growth of the insurance industry are “conservative”, ie the impact of the completion of important projects in the country, and the delay of the construction of the Panama Canal expansion, which considers create “doubts on the implementation of the state budget.” Others point to be discussed is that the world economy still is not right at all and that interest rates are low, also the port movement decreased 9%, which considers it a warning to the insurance industry to react positively and proactively in business endeavors especially in the technical results. L&E
PROSPECTS FOR LATIN AMERICA AND THE CARIBBEAN 2014 Fuente: Fondo Monetario Internacional Por Alejandro Werner
H
ow do we see the global economic outlook for the year, and what will this mean for our region? Is a question that is now very much on everyone’s mind, given the risk of deflation in advanced and sustained turmoil in emerging market economies. Despite these risks, we expect the region to grow from last year slightly faster pace of 2.6% in 2013 to 3% in 2014. Rising global demand is important, but you also have to consider other factors. Volatility is likely to be an important factor of scene in the coming months. Growth rates in the region will remain low compared to historical trends and downside risks to growth remain. First, we examine the global landscape.
slow credit growth slow and costly capital investment. Moreover, it is expected that commodity prices will fall slightly, particularly of non-fuel commodities, which recorded declines of around 6% during the year. Conditions in global financial markets will remain more restrictive than they were before the Federal Reserve started talking about “withdrawal of quantitative easing” in the first half of 2013, leading to increased costs borrowing internationally, especially given the recent volatility in emerging markets.
Uneven recovery So what does this new forecast for our region? The picture varies from one sub-region to another, as each sub-region maintaining linkages with the global economy and financial markets. For example, thanks to the recovery in the United States, As described in the recent update of the World Economic Mexico’s growth rate will increase to 3% in 2014. Mexico Outlook (WEO), we project that economic growth will in- will experience a surge in manufacturing exports and a concrease from 3% in 2013 to 3 ¾% this year, driven by advanced tinued recovery in domestic demand, as they are dissolving economies. The U.S. growth will rebound to 2.8% in 2014, the temporary factors that dampened demand last year. as the winds dissipate derivatives against an overly restrictive fiscal policy and the deterioration of household balance In Central America, the increase in global demand boost sheets, and will benefit from the boost provided by a mone- tourism and exports, and construction activity in the Unitary policy still loose and other cyclical forces. Moreover, we ted States encourage remittances (which grew at an annual see that the euro zone is moving from recession to recovery: rate of 6.5% in the third quarter of 2013). With regard to after contracting last year, growth will increase to 1%. Howe- Central America as a whole, we project that growth will inver, the recovery will be uneven and the recovery is likely crease from 2.9% to 3.2% this year. However, high levels of to moderate in economies that are experiencing tensions. public debt and budget deficit are an obstacle and a threat to the prospects of some Central American countries. According to our projections, the economic performance of emerging markets and developing countries as a In the Caribbean region, we expect tourism dependent whole will be slightly stronger, and the average growth countries will be recovered through increased activifor this group of countries will be around 5% this year. ty in the U.S., the entry of American tourists to the CaThe growth prospects of China are particularly impor- ribbean region recorded an annual increase of about 7% tant for countries exporting raw materials from La- in November. However, growth will remain low in 2014, tin America. We project that China will grow at about just 1 ½%. The commodity-exporting countries will exthe same pace as last year, 7.5%, given that policies to perience stronger growth of 3.7%. As in Central Ameri28. Legislación y Economía - Febrero 2014
ca, some Caribbean countries high debt levels pose risks. In South America, the picture is more mixed. In large commodity exporting countries financially open (Brazil, Chile, Colombia, Peru and Uruguay), the average growth will remain slightly below 4%, advancing at a slow speed relative to historical levels. The rebound in global demand will offset by a decline in prices of raw materials and slightly tighter financial conditions. In these countries, prospects depend largely on internal conditions. For example, Brazil is facing supply constraints that are limiting the product and pushing up inflation. Therefore, we project growth of 2.3%, not much higher than last year. In other countries exporting raw materials in the region, the picture is less favorable. In Argentina and Venezuela, in 2013 pressure on inflation, balance of payments and foreign exchange markets began to emerge. These pressures are adversely affecting confidence and aggregate supply. New (and old) risks And for all countries in the region, world economy still poses risks. The very low level of inflation in the advanced economies could cause a decline in inflation expectations, generating increases in real interest rates (with short-term rates at near zero) or deflation in these economies. Also, a weaker growth in emerging markets could adversely affect the commodity markets. Risks to financial stability include increased corporate leverage and pressure on asset valuations if interest rates go up more than expected. In addition, sustained turbulence in emerging markets could generate even more difficult international financial conditions.
29. Legislación y Economía - Febrero 2014
In fact, and somewhat paradoxically, we’re pretty sure that the outlook is very uncertain. We see that the global economy is undergoing major transitions, such as the transfer of growth in emerging markets to advanced countries, the withdrawal of stimulus measures in developed countries (and the decision of the Federal Reserve to “withdraw” monetary policy extraordinarily accommodative), and rebalancing the sources of growth in China. Each of these changes may pose obstacles to generate volatility. Therefore, policymakers need frameworks that are flexible, agile and resilient to overcome the shocks that may arise. In summary, although the growth will accelerate, expect more turbulence in our region. Thus, for policymakers in Latin America and the Caribbean is not yet time to rest easy. It is still necessary to rebuild margins and use fiscal policy monetary policy and flexible exchange rates to absorb shocks when possible. In some countries would also be useful to strengthen policy frameworks medium term. It is equally important to pay particular voltage signals in financial systems attention. And finally, it must implement structural reforms in education, infrastructure and labor markets and products, throughout the region, including the U.S., to advance to a more vigorous growth and sustainable term. L&E
“LATIN AMERICA SUFFERS MORE THAN 30% OF THE WORLD HOMICIDES” Source: Banco Mundial
S
ince the emergence of the self-defense of Michoacan, Mexico, to the murder of a former Miss Venezuela, gangs in Central America and the death of police in Argentina at the hands of criminals, crime continues to top the list of major concerns Latin Americans. The UN has called an “epidemic” and considers the most insecure region in the world, with one in three people victim of crime, mainly theft in 2012.
Q: Can you give us a snapshot of the most dangerous areas of the region? A: This map varies greatly by type of crime. The homicide is very different map of victimization. In homicide, countries with highest rates by sub-region are Honduras, El Salvador, Guatemala and Mexico in Central America, Venezuela, Colombia and Brazil in South America, and Belize and Jamaica in the Caribbean. But if we take the overall victimization rates (for any type of violent crime), we see a different picture, where countries such as Ecuador, Peru, Violence has many causes, most known. What is nee- Bolivia, Mexico, Uruguay and Argentina lead the randed are solutions. Public Safety Coordinator for La- king. That is, in one way or another, affects all countries in tin America and the Caribbean at the World Bank, the region. So it’s the main concern for Latin Americans. Rodrigo Serrano-Berthet, makes us a snapshot of the state of crime and violence in the region and propo- And that is nationwide, but in fact the crime was disprosed outputs that can be taken to curb this scourge. portionately concentrated in certain cities, neighborhoods, Question: In recent years, insecurity occupies and blocks. In Honduras, for example, 5% of the cities actop of main concerns of Latin Americans. Why? count for 65% of homicides. Within cities, crime is concenAnswer: Because they haven’t succeeded in reducing the trated in certain neighborhoods or massively hot areas, and high rates of crime and violence that afflict the region. even in specific blocks. Studies in the U.S. show that 1% of the blocks can be concentrated up to 50% of all crimes Other problems that have troubled Latin American, such and 5% of concentrate to blocks 70% of offenses. The same as inflation, poverty and unemployment have improved. happens in Latin America. But more worrying is that the However the incidence of crime and violence has remai- main victims of homicide are young, male, poor and living ned stable in recent decades, and at very high levels, much in marginalized communities. Brazil, for example, with more than other regions. Latin America and the Caribbean more than 50,000 homicides per year, accounts for over accounts for almost 9% of the world population but su- 30% of all homicides in the region. Of these, more than half ffers more than 30% of homicides. Seven of the ten coun- are young, and of these, nearly 80% are Afro-Brazilians. tries with the highest homicide rates in the world are in A similar situation exists in other countries in the region. the region. Taking the 50 cities with the highest rates in the world, 42 are in Latin America, including the first 16. Q: Are there success stories in fight against insecurity? A: There are many countries and cities where they have Even in countries with low homicide rates, such as Argen- managed to dramatically lower rates of violence. In Latina or Uruguay, the feeling of insecurity is high due in tin America,most notably Bogota, Medellin, São Paupart to the high levels of victimization, mainly thefts and lo, Recife. There is a set of policies that seem to be rerobberies and the level of violence associated with them. peated in case of success. For example, a police force more focused on results, uses information intensively 30. Legislación y Economía - Febrero 2014
to guide prevention and control regulations governing weapons and the waste of alcohol, programs that focus on providing opportunities for young people at risk or revitalize hotspots through comprehensive responses that mobilize the community actively in the response. At the program level, interventions at an early age by helping families that infants grow in social settings i-pad, where pro-social behavior are promoted and integration with the community and where violence is not allowed in the home have shown effects very beneficial in the long term both populations of other countries outside the region and in Latin America and the Caribbean (eg in Jamaica and Colombia). In addition to these primary prevention strategies, there are effective activities that reduce violence in schools and that impact communities. Q: What are the other regions in Latin America could be applied to reduce uncertainty? A: The United States has over 30 years of experience with a wide variety of strategies for preventing violence. On many of these there is already strong evidence that they work. Now, one of the challenges is to see which of these strategies are appropriate to the problems of the region, and make the adjustments and adaptations to very different institutional contexts. The home visiting program for mothers at risk is an initiative that has achieved a 82 % drop in arrests in mothers of low-income and 72% in aged 13-16 years. There are also programs to improve the socio- cognitive skills of at-risk youth, help control impulsivity that is behind much of youth violence. In Chicago, a program of this type through sport called “Becoming Men” (Becoming a Man) was reduced in one year the rate of violent crime of these young people by 40 %, while improving their educational performance. Strengthening partnerships and community coalitions and action have succeeded in reducing youth initiation in criminal activities by 31%, in addition to having a positive impact on other risk behaviors. Q: What are the recommendations to governments and civil society to a less violent and more tolerant future? A: Three recommendations. First, recognize that there is no magic wand to solve the problem. What you need to do is invest in a portfolio of interventions that address the problem holistically and have shown to have impact on the risk factors of violence generators. Second, focus on the regions and population groups most at risk, particularly young people. Third, strengthen the capacity of municipal 31. Legislación y Economía - Febrero 2014
governments who are most affected by the violence to build local partnerships to implement the first two recommendations. These are the priorities that are guiding the actions of the World Bank in the field of public safety for the region. L&E
DIMBLEBY CONFERENCE OF 2014 LAGARDE ADVOCATES A “NEW MULYILATERALISM FOR THE XXI CENTURY” Source: Fondo Monetario Internacional
T
o meet the current and future economic trends renewed commitment to international cooperation is needed, said IMF Managing Director Christine Lagarde to deliver his speech at the Richard Dimbleby Conference 2014 in London. He highlighted “two general streams” that will dominate the coming decades: the growing tensions in global interconnects and increasing tensions in economic sustainability. Proposed to address the following: A solution “that takes into account the past and make it fit for the future: a strengthened framework for international cooperation. In short, a new multilateralism for the XXI Century.” Elements of the new multilateralism The main elements of this enhanced multilateralism would be: • A renewed commitment to economic openness and the “mutual benefits of international trade and foreign investment.” • Managing an increasingly complex international monetary system that is “light years” the old Bretton Woods system. • The creation of a global financial sector for the post-crisis “in the service of the productive economy and not to serve their own ends.” In addition, Lagarde said that to effectively address important issues such as climate change and inequality, the “new multilateralism” will require a stronger sense of global responsibility.
There are also a number of “soft” instruments, which includes groups such as the G20 and networks of NGOs. Lagarde explained that these forms of “hard” cooperation and “soft” can complement each other. “The New Multilateralism must become more inclusive, and cover not only the emergent powers of the world, but also the growing networks and coalitions that are closely integrated into the structure of the world economy. The New Multilateralism must have the ability to listen to those voices and respond. “ Overcome the current crisis The immediate priority for growth, Lagarde said, is to overcome the financial crisis, which began six years ago and has not yet concluded. “This requires a sustained and coordinated effort to attack the problems still persist: a legacy of high levels of private and public debt, weak banking systems and structural barriers to competitiveness and growth, problems that have left us with unacceptably high levels of unemployment. “
Lagarde also warned that financial integration can increase the frequency of attacks and making them more harmful and that instant and mass communication can sow discord and confusion. “For these reasons, the global economy may be even more prone to instability.” “The kind of cooperation I have in mind for this new Lagarde stressed the increased international coocentury will not be easy,” he said. “There might even peration, which is essential to manage these risks. be more difficult as time goes on, when the crisis comes to an end, when we rest on our laurels, even when Longer-term obstacles to global stability perhaps they are sowing the seeds of the next crisis.” Lagarde framed the current crisis in the context of major longLagarde said that already exist and running speci- term challenges to the world will face in the coming decades: fic examples of cooperation, citing the United Nations, • Demographic factors, ie, both the challenge of aging pothe World Bank, the World Trade Organization and the pulations in advanced economies such as the “youth bubIMF. Institutions to which they could be called specific ble” in many emerging and developing countries. Nearly modalities, or “hard” global governance - said Lagarde. 3,000 million people-half of the world’s population is under 32. Legislación y Economía - Febrero 2014
25 years. Much depends on sufficient growth and generate employment to meet the aspirations of the younger generation. • Environmental degradation, as more people with more prosperity to fully exploit natural resources. Part of the solution has to be phasing out energy subsidies, which largely benefit the relatively affluent and not the poor. Crop subsidies and duly taxed energy use can be beneficial to both the planet and its inhabitants. • Income inequality, as a skewed distribution of income watchful against the speed and sustainability of growth in the longer term. Tax systems can help reduce inequality through taxation policies and spending policies designed carefully. Lagarde also made a new call for greater equality and opportunity for women. “By preventing women contribute, ended up with lower levels of life for all”, he said. “Allowing women to participate on equal terms with men, something that I refer to as ‘Daring to take advantage of the difference’, can transform the world economic situation. We must make the success of women as possible, for us and for all the girls, and children of the future. “ Lagarde said the risk is of a more integrated world-economically, financially and technologically, but more fragmented in terms of power, influence and decision making. “This can create uncertainty, stagnation and insecurity... and is something that requires new solutions.” Strengthening cooperation-a new multilateralism-is essential for these solutions, he said. L&E
33. Legislación y Economía - Febrero 2014
IRONMAN 70.3 - A PERSONAL HISTORY María Isabel García Arbeláez Profesional en Ciencias del Deporte - Madre, Triatleta rbcweb@rbc.com.pa
S
everal years ago I had my first encounter with the TRI , or don’t know if I should call it , judge for yourself , there was a teacher named Gallo in college which heard talk about this, I think I caught the bug TRI and trying to make his madness transmit it, but I always saw him as a far from me topic, and mistakenly thought it was a sport only high performance and my self-esteem at the time didn’t think it would have been a platform for dreaming, between college, various jobs, and my son gave me no place... but one day my fellow U Alba Nury (and my sister) were victims of a small gathering, I don’t remember exactly how I came to that point, but remember swam (allegedly was swimmer, but was no secret that he was rather bad) and then ran, it was terrible, yes I remember. So time passed, he did the same distance myself more and more of TRI. The closest he was after was with my friend “the black” My son and I were visited by him from time to time, I was so skinny and so tired, but seemed happy, trained some children, including the light their eyes “Jorgito” his nephew and he also did and seemed to enjoy it very much, came home to tell how hard your workouts and the wonderful bike she loved so much, but for me, they were just stories, at the time of my life, thinking of other things, with time, Pipe (black) became an excellent professional, currently the coach of an elite group, have fewer years than me, and my admiration was won, I met him when I was just a child and played basketball today is something else, here I close my close encounters in Colombia between TRI and me.
a couple of athletes who always felt very disciplined and managed on several occasions talks with them and nurture their sporting experiences, always friendly and open to teach them pair of functional exercises and get to know my way of working, we were creating a good working relationship and friendship with the passing of days and as a result of the way, I realized that they were part of a very strong team at TRI, not say “the most podiums records today,” one was Pichi, worked at a food company and work with its stretch, was very special because it was talking with my son when I took him to the gym, Malcom, I saw every day on the weight and caused me concern, now I understand everything, one more pound weight in the TRI are seconds on the timer, and Paty, friendly, and good companion, and left everything in the training he did, now icon woman rider in Panama, and so infected me, they all triathletes . By that time I also met an Argentine triathlete, was in his physical preparation for IM 70.3 and could contribute from my knowledge this stage, he, in turn, gave me a place in his team and because, as many people didn’t know it was nice to socialize and learn, ended up being a great help, because when I went out to compete replaced in their training run, and so people got to know more and more my work as a functional trainer.
Finally, I ended up swimming and soon after with a question mark in my head and was enrolled in TRI crowned 2010, had no bike and a long time I didn’t ride in one, but Paty offered me his mountain (most later I On 13 March 2010 my feet touched Panamanian territory, give away) and so I got my first TRI, by then didn’t wrione of my goals, (say one, the others aren’t the subject of this te much but September 22, 2012 I have a small review writing) was looking for new job opportunities, and God of what was the 2010, cut out of facebook and here: had begun to perform miracles, and that’s how I arrived at Miramar Spa, there I played me as a coach of plant and met “Tomorrow will face me again that would be in 2010 my 34. Legislación y Economía - Febrero 2014
first triathlon, I hope to enjoy it as much as this time, that time had never experienced a transition (remember running friends told me...”the first town”), or if the shoes he wore were neutral or pronator, neither existed elastic cords to make thing easier, much less knew it was a gel or that he took to avoid sickness gave me for lack of energy, what little I knew was: anything, Hop on the bike and run, and that’s what I did... I remember like left when I got to the goal, as we say in Colombia “cramped” just walked to the finish my legs were “stiff ”. well... you can return to this place, and remember all the beauty that has brought me the world of TRI, thank God, thank you family, thank you for seeing Panama, thanks fellow triathletes that make this world of TRI me, keep moving. “ Next was the duathlon of the coastal strip, December 12, 2010, to summarize a bit there I realized that I could run faster than I thought, but still had no strategies, the drafting was a word I had never heard, not kept for the finish, my bike was a size M, had bought in a store on the advice of my trainer, thanks to the sponsorship of a coaching
35. Legislación y Economía - Febrero 2014
client, then I realized it was huge for me, but at that time there matter because for me size 48 and 58 in a bike was the same thing, in this race I met the guy who accompanied my steps today reached me, encouraged me and I waited at the finish (although we did not know, that is subject other written), ah! And I won a Garmin, which at that time didn’t know what it was for, this memory duathlon Wendy Ducreux, and Liconna sisters, all cute and smiling athletes, it was the first time I ran with them, they made me porridge in bike as it was expected. I gained a lot of good things, I still love all the plate and 2nd place in my category. L&E
E
Activities for the month of February: Mariela de Sanjur mariela.sanjur@rbc.com.pa
vents:
• Panama
Canal Centenary Festival, free and organized by the ACP among activities to celebrate 100 Panama Canal event was held at the Paseo El Prado and the Steps of Administration Building Panama Canal between 6 to 9 February , which enjoyed great and small, in a great organization and a lot of security . Began with the presentation of the Musical Shrek, along with a Typical Gala, with folk groups and presentations of Panamanian Folklore stars as Osvaldo Ayala, Yin Carrizo, Dayra Moreno, Bebito Vargas, Ceferino Nieto and others. On Saturday after an afternoon of magicians and clowns I started a unique concert where thousands of Panamanians expected to see the star of the night, “ Juan Luis Guerra and his orchestra 4:40 “, which came after several local artists including I can mention the singer Omar Alfanno and Joey Montana. Juan Luis Guerra, danced a crowd of Panamanian and foreign more than 90 minutes, with most of their classic hits. Attendees chanted and danced from beginning to end with each of their performances” To ask for her hand, Bilirubin, I wish it would rain coffee, you gift a rose, You have the key to my heart, like me, the cost of living, my blessing, Honeycomb,” were some of the successes played that night. The Festival ended on Sunday with Gospel Group presentations Oscar Williams and the Band of Life, Musical Bands Association ‘s Moses Castillo Ocaña and José Daniel Crespo , among others.
36. Legislación y Economía - Febrero 2014
• The 5th Festival of San Francisco of the Mountain from January 31 to February 3
Activities for March: • Carnivals throughout the country: 1 to 5 March
• Meeting of Faith in the coastal strip with Potters and Fray Nelson Medina February 14
• Carnivals in the City: General Information: o parades begin daily at 6:00 pm o culecos at 9:00 a.m. o artists presentation at 8:00 p.m.
• XLIV Eucharistic Quote in Roberto Duran Arena on February 15. • 1964 Exhibition: Art, Politics, Panama. Museum of Contemporary Art (MAC) closed its shows on February 15. • Cayucos Race Panama, held on February 22 in Veracruz.
37. Legislación y Economía - Febrero 2014
• Japan Kingdom of Characters, Museum of Contemporary Art (MAC) from 20 February to 23 March. • Open Festival, March 22-23: Charles Bradley and his extraordinaries Omar in the park, free event. • Jesus Nazareno de Atalaya Sunday, March 9 • Expocomer 2014, from 26 to 29 March at the Convention Center Atlapa. L&E
Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA