Magazine L&E July 2015 by Revista Legislación & Economía

ISSN 1726-0485 EDICIÓN JULIO15

IS THE ECONOMY STAGNATES? CHALLENGES AND CHANGES postponed A Panamanian justice POWERFUL MATCHES PANAMA POLICY SEMINAR ON MONEY LAUNDERING

rbc.com.pa

Advice Editorial

José Javier Rivera J. Giovana del C. Miranda G.

Contributors to this edition José Javier Rivera J. Rafael Fernández Lara Adan Arnulfo Arjona L. Giovana del C. Miranda G. Maybé Mendieta Anna Marissa Admadé Ilka de Chen Lisbeth Martez

Portada y Diagramación: Virginia Medina Fotografía: Mariela De Sedas de Sanjur

Albin Rodríguez Alexander Canto Mariela de Sanjur Nadia Chang AREAS OF PRACTICE

IMPUESTOS - CONTRATACIÓN PÚBLICA - PROPIEDAD INTELECTUAL REGISTRO SANITARIO LITIGIOS, ARBITRAJE Y MEDIACIÓN DERECHO MARÍTIMO - ABANDERAMIENTO DE NAVES - DERECHO LABORAL ASUNTOS MIGRATORIOS - SOCIEDADES - APERTURA DE NEGOCIOS FUNDACIONES DE INTERÉS PRIVADO - CONTRATOS, FIDEICOMISOS ASESORÍA BURSÁTIL - SERVICIOS NOTARIALES Y REGISTRO - AMBIENTAL LEYES ANTIMONOPOLIOS TELECOMUNICACIONES

Legislación y Economía es una publicación de

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mantener informados a nuestros clientes, empresarios, industriales, ejecutivos, banqueros, inversionistas, y a

todo aquél que tenga INTERÉS en la actividad de

PANAMÁ.

RBC Abogados

Rivera, Bolívar y Castañedas

@rbc_abogados

CONTENT 6. 8.

EDITORIAL THE ECONOMY STAGNATES

INVITED WRITER CHALLENGES AND INELUCTABLE CHANGES TO THE PANAMANIAN JUSTICE

NORMS OF INTEREST

14. 15. 15. 16. 17. 18. 21. 26.

ACODECO APPROVES GUIDE SUPPLY OR REDUCTION OF SANCTIONS APPLICABLE INTEREST RATE DISCOUNTS ON AGRICULTURAL SECTOR LOANS STANDARDIZATION OF PERSONAL AND COMMERCIAL CHECKS IS EXTENDED GUIDE OF INDICATORS OF SUSPICIOUS OPERATIONS FOR ACTIVITIES OF STOCK MARKET

CONSULT, DOCTRINE & JURISPRUDENCE THERE IS NOT A PUBLIC ENTITY WITH LEGAL AUTHORITY TO CERTIFY THE TERM OF EXECUTIVE ORDERS

POLITICS POWERFUL POLITICAL PARTIES OF PANAMA

PANAMANIAN ECONOMY SEMINAR LAW 23 OF 2015 MONEY LAUNDERING, TERRORIST FINANCING AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION WATER CAPACITY FOR POPULATION GROWTH IN ARRAIJÁN AND LA CHORRERA

CONTENT 27. 31. 32. 34. 35. 37. 38. 40. 41.

MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-MAY 2014-15 ECONOMY GROWS IN 4.56% FROM JANUARY TO APRIL

ILLUSTRIOUS PANAMANIANS DIÓGENES DE LA ROSA ROBLES (1904-1998)

WORLD ECONOMY

PRESIDENT BARAK OBAMA’S VISIT TO KENYA AND IMPLICATIONS

MOST RESPONDENTS DOESN’T BELIEVE THAT THE WORLD IS READY FOR THE NEXT EPIDEMIC ECLAC PROPOSES DEBT RELIEF CARIBBEAN AND THE CREATION OF A SUB-FUND GLOBAL IMPACT OF CHEAPER OIL TO CUT PROTECTION OF WORKERS AWAY REDOUNDS TO MAJOR GROWTH PANAMA IN THE EYES OF INTERNATIONAL MONETARY FUND

EDUCATIONAL CAPSULE

44.

46. 48. 51.

STUDENT MANIFESTATIONS LEAVE PRECEDENTS IN OUR COUNTRY AND IN THE EDUCATION

FASHION RECOMMENDATIONS TO PROTECT OURSELVES FROM RAIN WITH VERY MUCH STYLE IN THE RAINY SEASON

SPORTS CAPSULE CULTURAL CAPSULE

EDITORIAL THE ECONOMY STAGNATES?

José Javier Rivera - Abogado jj.rivera@rbc.com.pa

n recent months, a number of factors have started to have an impact on economic performance of the country and we must take concerted action to mitigate the effects of these situations actions. Let’s see what are the visible signs of this decline:

1. Colon Free Zone: According to a document prepa-

red by the Association of Users of Colon Free Zone since 2012 but with emphasis on 2014 and first five months of this year, there is a decrease in commercial movement Colon Free Zone that predominantly affects lo- Crops such as rice, corn, vegetables, sugar and even cal businesses at a rate exceeding 30% for last year fruit and timber trees have not been started in almost all and reached 43.3% in the first five months of this year. over the country due to uncertainty of rainfall and capacity of rivers to ensure the survivals of these crops. That has meant a fall of 9,300 direct jobs and a reduction of 21% in the number of registe- In the same vein, livestock, poultry and pork production red in this area of international trade companies. depend on grasses and grains that are becoming scarce and thus the production of meat, milk, eggs and other derivative The low also affects number of visitors in the products has declined significantly in the provinces of HeFree Zone that has fallen by 15%, and bank rrera, Los Santos, Cocle, Panama, Veraguas and Chiriqui. loans for firms in the area of international trade.

3. The Panama Canal: Administrator of Panama CaIf Colon Free Zone represents 7% of the national gross nal Authority has drawn attention to the impact of El Niño domestic product, a reduction in their activities have a diin the generation of water in the canal. According to starect impact on job creation and wealth in a province that tistics, the months of June and July of this year, represenhas a great impact on the perception of economic stability. ted the worst levels of rainfall throughout the watershed of the Panama Canal and this could force ACP to take 2. The phenomenon “El Niño”: Recently the Mi- steps to reduce the draft of ships crossing this waterway. nister of Agricultural Development has drawn attention to the impact of this weather phenomenon in In fact the ACP is not generating hydroelectric power the production of food and other goods for export.

EDITORIAL and is concerned about the implementation of the expan- 7. The effect of measures related to money launsion project next year, which would impact significantly dering and other crimes: Although Law 23 of 2015 on development of main public company in our country. on money-laundering and other related activities approved, reality is that foreign correspondent banking As if that werenâ&#x20AC;&#x2122;t enough, the area of Arraijan and Chorre- still hasnâ&#x20AC;&#x2122;t regained confidence in the system Panamara depend on production of bulk water that sells the ACP nian banking, and therefore, there are sectors such as cato IDAAN and has had some setbacks in recent weeks. sinos, remittances, activities of Colon Free Zone with significant constraints to develop its banking activities.

4. Construction Industry: The government established This scenario also affects the financial system as a whole bea tax package that has affected the extraction of non-metallic minerals used in construction industry, and this measure by itself sent a message of increased project costs and turbulence in the industry that was already struggling as a result of delay in granting building permits in the Municipality of Panama and other municipalities, due to bureaucracy of entities involved in so-called one-stop approval of plans.

gins to feel a lack of confidence of the international banking.

8. Procrastination in certain public works: In

the debauchery of previous government, were executed projects such as: the cold chain, municipal markets and food market, metropolitan hospital complex, hospitals and Minsa-Capsi, TonosĂ irrigation system, the convention center, radar and other works in provinces that have been suspended, and therefore are deteriorating.

Within this uncertainty is the true fact that many months have passed without extensions of non-metallic mineral concessions are defined, which affects legal cer- From the financial point of view there are works that retainty of serious companies who have devoted signi- ceived hefty advances and other borrowings involving ficant resources to developing its mining activities. direct or turnkey contracts that are being paid, without producing a direct benefit to users of these services. 5. Low budget execution of the State: Recently, the budget implementation of major state entities was heard, This accumulation of events is producing a percepand these data reflect a precarious situation with minis- tion of economic stagnation and thus affects the mood tries that do not reach 20% of execution even though we of investors, employees and consumers in general. are in seventh month of the budget and despite we are in a period of prolonged dry season conducive to imple- Quietism that characterizes certain sectors of the cimenting projects of economic impact and job creation. vil service is not consistent with a country that has the fundamentals to sustain robust growth. 6. Lack of transparency in selection process There are only five months to recover pace of the economy. of contractors: A year after beginning of this admi- Otherwise we will be in a difficult situation in 2016. L&E nistration, there are still rules of public procurement law and several of the entities that have been questio- It will dawn and see... ned by the murky handling of selection acts contractor. This takes away the confidence required to track companies involved in these acts and therefore has a significant impact on the final price of the contracts with the state.

INVITED WRITER CHALLENGES AND INELUCTABLE CHANGES TO THE PANAMANIAN JUSTICE

Adan Arnulfo Arjona L. Former Chief Justice Supreme Court

rbcweb@rbc.com.pa

t prevails today a universal consensus that the existence of a system of effective and full justice is one of the indispensable elements for effectiveness of good governance in democracies. Justice is conceived as a universal public good tradition which is unthinkable without the support of civilized coexistence relations at international level.

A country can’t realize the ideal of human development without existence and consolidation of a robust system of independent, flexible, full and competent justice. Therefore, it’s unfortunate the harmful practice of political interests control the judiciary for use in the ignoble end to pursue adversaries, traps and legitimize its impunity produce gross violations of the Constitution and the law.

This meant that the presence of a good judicial system is a requirement for urgent attention and priority not only for the citizens of a particular state but also for other human beings that inhabit the planet.

This practice is the only thing that leads to backwardness and poverty of countries. A brief analysis of historical experience in Latin America has shown that the judiciary has unfortunately taken a little prominent place in the political system.

The proper functioning of justice, unlike earlier times, has taken on a new and higher dimension in political relations of this new century, then, experience has shown with overwhelming evidence that nations that have reached the highest levels of human development common feature, having achieved reasonable standards of excellence and reliability in the provision of public service administration of justice. You don’t need a special effort to see that proper and solid force of Democracy depends heavily on effective performance of an independent judiciary, able to exercise real control to the arbitrariness of authorities, be they official or private.

In this sense, is right Mexican author Luis Pásara when he warned that: “In Latin America, the courts have held, in general terms, a relevant role for the functioning of democracy (...) In authoritarian regimes, judges failed to punish according to the law systematic violations of human rights (...) for democratically elected regimes, judges tended to represent one of the bastions of social conservatism, unless economic or political pressure induce a court decision symbol (...) in most of the region, the called judiciary has adopted a rather discreet institutional profile. Legal unable to exercise effective control over political and economic forces, the jud-

PLUMA INVITADA ge has clearly taken a place quite smaller than that which appears awarded in constitutional texts (...)” This leads us to center the focus on institutional relationship of mutual benefit have to share the Justice and Democracy. For these purposes it’s necessary to take into account what has been the course that has experienced the call constitutional democracy and crisis that affects different dimensions. The renowned Italian author Luigi Ferrajoli identified dimensions comprising Democracy and the Constitutional Crisis today affects their performance. In the Political Dimension Ferrajoli notes that the crisis is manifested on representative democracy as a result of three factors: 1. Customization and verticalization of political representation, 2. Strengthening of executive power at the expense of the regulations and, 3. The personalization of political representation in the President. In my view, any genuine initiative to change in Panamanian justice should aim to successfully achieve three specific objectives, namely: - Restore credibility, confidence and prestige of the judicial system, overwhelmed by the avalanche of scandals in which finds itself. - Get a real, effective and profound improvement in quality of justice in regard to their performance, which will overcome the irritating and unfortunate stagnation is observed. - Take steps conducive to the effective fight against impunity and corruption, which causes dangerous levels of institutional distrust.

1. PROBLEM: Insufficient financial resources to pay for changes. PROPOSED CHANGE: - Political authorities who govern the country should assume a formal commitment to substantially increase budgetary funds allocated to the justice sector (Judiciary and Public Prosecution) in an initial increase of 3.5% of current revenue of Central Government which will be gradually raised to at the remainder of current presidential term, so that the end of it reaches an amount equal to 6 or 7% of these current revenues of central government. - Experience shows that the minimum allocation of 2% required by Article 214 of the Constitution as regards budget of the judiciary and Public Ministry, today is clearly insufficient and doesn’t allow engage in investment and hiring staff to adequately serve the public service administration of justice. - It’s a fact that justice is able to work well requires adequate and timely financial resources because it allows not only the consolidation of its independence, but conditions for a real improvement in performance. - Some will say that we are a country with economic constraints and that resources should be directed to address priority social needs rather than dedicate the justice system. - However, it’s imperative to note that economic burden is the surest recipe for a limited, ineffective and dependent justice. A good judicial system, although it’s not a source of income is an essential and indis-

PLUMA INVITADA pensable institution can offer the country invaluable social dividends of peace, and submission of legal certainty to the law.

tions and citations, admission and records sharing technology, organization of unique agendas, monitoring records, compliance ago of judgments, etc.

- This is a public policy decision that has to be taken to seriously address the problem of justice and allow to run concrete and measurable programs of institutional improvement.

- The resumption and strengthening of these projects directly affect the heart and operation of justice so with appropriate support must immediately improve service provides to users.

2. PROBLEM:

- Implementing an aggressive plan that allows Digital Justice incorporate into everyday justice all the benefits and potential offered by new Information and Communication Technologies (ICT) so that the use of digital records become widespread, the query computer thereof, the electronic implementation of resolutions and notifications and enforcement proceedings as agile reading of projects and issue statements.

Delayed and poor quality of public service administration of justice. PROPOSED CHANGE: - As for what comes is to make the sacrifice to commit financial resources to make a profound change reality in product quality offering justice it’s compelling that requires both the judiciary and Public Prosecutor’s institutional commitment to take action specific for immediate and sustained improvement. - In this regard, it should be clear that budget allocations to commit must be invested directly and strictly according to the philosophy expressed.

- Creation and development of specialized courts to deal with protection deficit suffered by citizens in their guarantees and fundamental rights, such as: - The decentralized constitutional jurisdiction for protection of human and fundamental rights which would consist of a network of courts and tribunals in operation in rotating 24-hour shifts with tools to effectively and provide prompt judicial response demanded by citizens.

- This task is essential and crucial to set rationa- I should point out that this proposal is enshrined lly cost of investment and staffing to be done for the in bill that I had the honor to develop as part of Sujudiciary and the prosecution successfully pass rapreme Court and was presented for consideration by tes lag and congestion affecting its performance. National Assembly in October 2009 but, unfortunately, still lies in wait off indefinitely from the Com- I remember that this experience was also devemission of Government, Justice and Constitutioloped with the Judicial Branch tested in 2002-2003 nal Affairs who hasn’t yet found time to examine it. and to do so successfully had technical cooperation of Centre for Research and Consultancy Sta- Commissioning of Civil and Criminal Courts tistics (CICE) of the Faculty of Natural Scienfor dealing with environmental justice that were ce and Technology the University of Panama. created by Law 41 of July 1, 1998 (Art. 125). - Renewal and promotion of projects initiated a decade aimed at changing management model of courts by specialized units of common services of notifica-

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PLUMA INVITADA

3. PROBLEM:

administration.

Selection of high officials of the judicial system.

- Fixing a minimum of six months prior to completion with transparency and citizen participation tasks relating to the identification of candidates for these senior positions in conditions offering applicants reasonable space for the country to know and evaluate the executions, ideas and positions thereof.

PROPOSED CHANGE: - However that many citizens have expressed their dissatisfaction sectors and dissatisfaction with the way the high officials of the judiciary are appointed, it is also necessary to adopt changes that achieve equip the existing mechanism of transparency and credibility. - Admittedly, this is a sensitive issue that has no easy solution and that is crucial for the real improvement of justice for their independence and reliability depend on quality of people who are at your service. - The judicial function requires to be imparted with excellence and credibility that whoever holds exercises attributes of knowledge, integrity and independence. - To address this problem solving and avoid disappointing experiences must be considered issuing an executive order by which the President and his Cabinet, with reference to international best practices (vbgr Colombia -. With its draft Veeduría Citizen called “ Elección Visible “, Dominican Republic, Guatemala, etc.) establish criteria for self-regulation in selection and appointment of dignitaries acts of the judiciary and prosecutors. This self-regulating rules should include, for example, aspects such as: - Eligibility criteria, knowledge, integrity, independence and enforceable to be evaluated in the candidate or candidates to fill positions in Supreme Court or Attorney General’s Office and Attorney General’s

11.

- The appointment of magistrates and judges is primarily an ethical decision by whoever is responsible for taking it. - By designating a judge in the Supreme Court’s ruling must be consistent with citizens’ expectations, to have complete, independent, competent and reliable judges. - In this task as there sees major challenges for the naming and sacred commitments to those who accept the responsibility of being a Justice of the Republic. - For naming must respect the commitment to appoint an independent person since the Supreme Court to carry out its work you need to be independent and credibility. - In the same way one accepts the distinction of occupying such an important post in the judicial network has an obligation not to disappoint his conduct trust which is conveyed. Designated moral qualities are crucial in this regard for these purposes. - The qualities necessary to any member of the judiciary in a democratic system requires full commitment to democratic values expressed in the Constitution and possession of so-called “judicial virtues” as clearly identified with unique Spanish teacher Manuel Atienza. - The judicial virtues aren’t concerned only with

PLUMA INVITADA technical training or not being corrupt, but allude to character traits you have to have a judge or magistrate to fulfill the role that is expected of him. - These virtues have been identified as the self-restraint, modesty and courage, to be independent, sense of justice and personal honesty, to be impartial; and wisdom to fulfill the obligation to state reasons for their decisions.

4. PROBLEM: Strengthening the independence of judicial officials and eradication of conflicts of interest. PROPOSED CHANGE: - An essential element of good justice lies in the presence of a judge without ties or commitments that undermine the independence of its decisions. - To address this problem could be considered issuing a law on the implementation of Article 203 of the Constitution set guiding guidelines as to identification of possible conflicts of interest in which it can’t engage the person holding or will hold the position Judge of the Supreme Court of Justice or Attorney General’s Office and Solicitor General.

nancial position of judicial officers to prevent the legitimate suspicion and distrust citizens before the miraculous and sudden capital gains of these.

5. PROBLEM: Combating impunity PROPOSED CHANGE: - To address this difficult problem that contributes to collapse the prestige and credibility of social justice, they must be considered among many other things, the following: - Reform Law 55 of September 1, 2012 which amended articles of Criminal Procedure Code in proceedings against members of the National Assembly, so they relocated to head the Public Ministry functions of investigating crimes and misdemeanors committed by deputies, as this delicate task can’t be effectively advanced by the Supreme Court which by the nature of their function is not designed or has the tools to develop researches in this type of case. - To address this difficult problem that contributes to collapse the prestige and credibility of social justice, they must be considered among many other things, the following:

- Reform Law 55 of September 1, 2012 which amended articles of the Criminal Procedure Code in proceedings against members of the National Assembly, so they relocated to head the Public Ministry functions of investigating crimes and misdemeanors committed by deputies, as this delicate task can’t be effectively advanced by the Supreme Court which by - It’s also necessary that legal provisions adopted to the nature of their function is not designed or has maintain a reasonable citizen oversight on the fi- the tools to develop researches in this type of case. - It’s completely unthinkable, for example, that a judge may exercise the judiciary independently when maintains immediate ties of consanguinity or affinity with people who are closely linked by friendship or labor to the authorities who have to take part in decisions reasons appointment and performance.

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PLUMA INVITADA

CHALLENGES AND INELUCTABLE CHANGES TO THE PANAMANIAN JUSTICE - I am aware that the above measures in any way represent magic bullets that will be implemented as if by magic cure all the weaknesses and problems that affect the performance of our righteousness.

others is a problem that affects the whole of society. - The problems of justice require for their solution the generous support of all citizens and especially of lawyers because, as you stated in its opportunity Barcelona’s sociologist Salvador Giner:

“...Democracy is not only a representative political order framed by laws guaranteeing freedom and rights of citizens, but also, to a large extent, is a culture characterized by a participatory - But, I am convinced that the adoption of which consciousness that conceptualizes the public could itself introduce a real and lasting improve- thing of all and we are all responsible for what ment -not demagogic system, so that justice no happens to us and the quality of our life together.” longer -of once and for all the Achilles heel of our imperfect but irreplaceable Democracy. - Challenges for Panamanian justice can be overcome through collective acts representing TO CONCLUDE: exercise of faith, courage and determination to consolidate democratic and civic values. L&E Finally I would like to share some conclusions on this important issue: - Justice is the historic and crucial challenge of raising public confidence indices in the observance of the law and democratic institutions. - A country can’t achieve sustainable human development levels in absence of a reliable and competent judicial system. That is, justice must inspire credibility and respect of citizens, since it depends on peace in social relationships. - The complex issues facing today Panamanian justice will not solve alone or by the mere passage of time. This problem is not a problem of

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NORMS OF INTEREST ACODECO APPROVES GUIDE SUPPLY OR REDUCTION OF SANCTIONS

n July 10 the Authority for Consumer Protection and Defense of Competition (ACODECO) issued Resolution No. A-064-15 by which the Program Benefit Waiver or Reduction of Sanctions approved guide, which aims to establish criteria and procedures to be followed regarding the possibility of dispensing or reduce the sanction to the first operator to provide evidence that allow demand an absolute monopolistic practice which is or has been a party if not the market leader and instigator of the cause. The Resolution provides the definition of the terms ACODECO, trader, absolute monopolistic practices, dispensing benefit program or decreased penalties, evidentiary, instigator of practice, market leader applicant and request proof of income. As for requirements for implementing the program have been established: 1. Be the first trader to submit evidence demonstrating the performance of a monopolistic practice and admit being part of it. 2. Don’t be the leader and instigator not practice. 3. That the evidence that is sufficient to provide ACODECO can operate in court for allegedly conducting monopolistic practice. Another thing to mention is regarding the benefits and guarantees would receive the economic operator which focus on two aspects, the first dispense payment of the fine, which will happen when the authority considers that they have met all formalities required, ie, which is at the discretion of the entity. The second is when given

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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

the reduction in the payment of the fine or penalty that applies when the applicant has complied with the formalities, but tests require any additional action by the Bank to collect or refine the use of them and the reduction may be up to 50% of fine or penalty could be imposed. It should be noted that the rule in comment has the legal framework Article 104 of Law 45 of October 31, 2007 and Article 31 of Executive Decree No. 8-A and 22 January 2009, dealing with the practical absolute monopolistic prohibited by law and which consist of agreements, arrangements or combinations competing economic agents which generally involve non-competition agreements. With the adoption of the resolution has been adjusted national legislation to international standards that provide the figure for several years and is known as “leniency programs”. L&E

NORMS OF INTEREST

APPLICABLE INTEREST RATE DISCOUNTS ON AGRICULTURAL SECTOR LOANS

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

hrough Resolution No. 009-2015 of July 15, 2015 issued by Agricultural Development Bank provides loans granted by the Bank qualified for agricultural sector and agribusiness exporter of nontraditional products up to a maximum amount of B/. 500,000.00 per production cycle, by category, with exception of loans granted to associated groups, will receive a discount on interest rate.

STANDARDIZATION OF PERSONAL AND COMMERCIAL CHECKS IS EXTENDED

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

he Superintendency of Banks issued Agreement No. 008-2015 of June 16, 2015 amending Article 10 of Agreement No. 1-2014 that establishes duration and adequacy for standardization of personal and business checks in Panama, line formats like magnetic character and features that should contain.

In this regard, it noted that Agreement shall take effect On the other hand, it states that traditional fishing activity from February 1, 2016; however, it was expected to begin qualifies for discount on interest rate, so that the Bank is 1-2014 Agreement shall take effect from August 15, 2015. set at a rate of interest for the activity of two percent (2%). Likewise, the additional period for circulaApplication of discounts in the interest rate, is under Law tion of checks made prior to standardization of 15 of 2015 amending Law 14 of 1994 which establishes the two (2) years eighteen (18) months is reduced. system of preferential interest to agricultural sector. L&E The entry into force of the Agreement 1-2014 has undergone two (2) changes. L&E

% 15.

NORMS OF INTEREST

GUIDE OF INDICATORS OF SUSPICIOUS OPERATIONS FOR ACTIVITIES OF STOCK MARKET

n July 7, 2015 the Superintendence of Securities issued Agreement 4-2015 contemplates the Guide of Suspicious Activity indicators for activities of Securities Market in Panama, which constitutes a support tool as an example some operations that deserve greater observance of the regulated entities Financial to determine in conjunction with other indicators of analysis, if certain facts are suspicious transactions that may be related to money laundering, terrorist financing and financing weapons proliferation of mass destruction.

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

ning signals with securities fraud and Warning Signs of Transactions Related to Financing of Terrorism.

The Agreement, among other things take into account the Law 23 of April 27, 2015 which establishes regulatory framework for different supervisory agencies, organizations and natural or legal persons subject to supervision have among its objectives to mitigate risks they are arising from the possibility that products and services offered by regulated entities Financial, Obligees no Financial and activities perRegulates the Guide concerning Alerts related to Custo- formed by professionals subject to monitoring are used as a mer Due Diligence; Warning signals related to the pro- means, mechanism or vehicle for money laundering, terrofile and activity; Warning signals related to transfer of rist financing and Financing of Proliferation of Weapons of funds and/or deposits; Securities and Financial Instru- Mass Destruction, in order to establish a standard of conduct ments Bearer; Alerts additional signals for the activity specifically applicable to the activity of stock market. L&E of investment managers, mutual funds; and Fund Administrator; Unusual transactions with securities or financial instruments and unusual activity in investment accounts; Warning signs with employees or directors. As for indicators of suspicious activities related to types in the market, provision contemplates Warning Signs related to insider trading; Warning signals with market manipulation including very cheap stocks; War-

16.

CONSULT, DOCTRINE & JURISPRUDENCE THERE IS NOT A PUBLIC ENTITY WITH LEGAL AUTHORITY TO CERTIFY THE TERM OF EXECUTIVE ORDERS

ecently, the Office of Administration issued the inquiry C-62-15 of July 14, 2015 by which absolves question posed about what the institution responsible for Certification of Validity of Executive Orders in Panama. Based on provisions of paragraph 9 of Article 6 of Law 38 of 2000 Organic Office of Administration, the Office is of the opinion that in our legal system there is no legal provision conferring legal powers to any institution or entity public, to certify the validity of executive decrees.

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

is limited to formal laws and certain administrative acts to which it has conferred value formal law, that is, they only have above the Constitution as supreme law.

To assert their opinion, an analysis of the case law cited is made and concludes the Attorney indicating that the decree laws and decrees of Cabinet issued by the Executive Branch in exercise of their extraordinary and/or legal authorities, are granted the same value and rank than formal laws passed by the National Assembly, as provided in Resolution 22-14 Referring to Article 6 provides that corresponds to DS-2014 must be understood as legal rules whose the Office of Administration organize, with the te- validity must certify the Office of Administration. chnological tools required to issue certificates of validity of the laws of the country, after fulfilling However the executive decree as an administrative the procedure for processing certifications lifeti- act by which the Administration (Executive) formally mes of laws that are requested by individuals or le- adopts decisions which may have a regulatory normagal entities, public or private, national or foreign. tive content, but don’t constitute “law” in formal sense, and even their hierarchical value is less than the law. Raises the Procurator definition of “legislation” to in- It concludes stating that as of research effecdicate which are formal laws passed by the National ted Authority and not some other provision of Assembly, the Law Decrees issued by the Executive law conferring jurisdiction to certify lifetimes to Branch in use of its extraordinary powers and Cabinet another public institution was found, and conseDecrees to which them has recognized force of law. quently there is a public entity with legal authoSo that power of the Office of Administration under rity to certify validity of executive decrees. L&E provisions of paragraph 9 of Article 6 of Law 38 of 2000,

17.

POLÍTICS POWERFUL POLITICAL PARTIES OF PANAMA

Rafael Fernández Lara Abogado independiente

rbcweb@rbc.com.pa

t independence from Colombia in 1903, Pana- just a memory of the political history of the nation. ma inherited from her two traditional political parties, the Liberal Party and Conservative Party. In our current national political environment they are only just legally constituted and existing With passage of time, Conservative Party was given five political parties, only three of which, in our a decline in the number of their followers to comple- view, constitute the larger political groups, which tely disappear from political scene in 1952 with its are Democratic Revolutionary Party, the Panaown presidential candidate in the general election. manian Party and the Democratic Change Party. Meanwhile, the Liberal Party remained still a major Democratic Revolutionary Party (PRD): Founded in party in national politics and in the republican his- 1979, the beginning of democratic transition in the tory as the most presidents have given to the nation. country. Undoubtedly represented the political arm of the military revolution of october lead by General Omar On the other hand, Liberal Party wasn’t immu- Torrijos Herrera, one of the protagonists of coup of 1968. ne to partisan division, among other reasons, warlordism and personalism, to such an extent that Its ideological basis was people from all social clasin 1945 remained in effect simultaneous four li- ses and some members of political parties dissolved beral parties, Liberal Renewal, Liberal Demo- after the coup mentioned. According to its statutes, cratic, Liberal Doctrinal and National Liberal. this party is based “on the social democratic ideology and Torrijos legacy. “Its aim is to fight for more Obviously it couldn’t fail to mention the political life and better distribution of wealth, poverty reduction of the National Patriotic Coalition Party, which during and protection of human and social rights, solidathe 1950s was the most important political organiza- rity, equity, social justice, equilibrium between man tion in the country, whose inspiration was murdered and his environment, exercising their sovereignty, colonel and President Jose Antonio Remon Cantera. independence and self-determination of peoples. “ After several decades languished this match to become Today is the Panamanian political organiza-

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POLÍTICA tion with a greater number of enrolled in their In the general elections of 1999 he managed ranks according to the Electoral Tribunal in No- 36,068 votes for President; Deputies to 66,841 vovember 2014, with 447,000,349 adherents. tes; Representative of judges to 61,619 votes. Consider number of votes obtained by Democratic Revolutionary Party in the elections for President, Deputies and Representatives of judges in the elections of 1999, 2004, 2009 and last in 2014. Its current President is Deputy Benicio Robinson Grajales.

In the electoral contest held in 2004, managed 79,491 presidential vote; for deputies 68,925; Representative judges and 101,190 votes.

It’s defined as a democratic “pluralist party, nationalist and supporter of civil liberties, social justice and the rule of law. It’s a center-liberal and national unity, with a speech in favor of free enterprise so as welfarism.”

The Panamanian Party currently in power, won in the 1999 elections 367,865 votes for Presidency of the Republic. Deputies reached to 266,030 votes. Representatives of judges for it amounted to 255,126 votes.

In 2009 election process, won 509,986 votes for Presidency of the Republic; Deputy 352,319 to In 1999 elections won 403.649 vo- vote; Representative judges to 300,619 votes. tes for President; Deputies to 393,356 votes; Representative judges to 330,411 votes. In the last elections, in 2014, Democratic Change won 483,309 votes for the Presidency; for deputy won 573,603 In 2004 election process managed 649,157 vo- votes; for Representative judges scored 503,398 votes. tes for President; 371,757 for deputies; and 519,012 for Representative judges. Panamanian Party (PP): The third party by number of registered members, with 232,984 members by January In the electoral contest of 2009 totaled 553,974 for 2015. However, it was the party that won the most President; A total of 537,426 votes for deputy; and votes for President individually in the last elections. a total of 522,481 votes for Representative judges. Its founder was Dr. Arnulfo Arias Madrid, who was PreIn the vote on the 2014 electoral process got 521,842 sident three times (1940-1941, 1949-1951 and 1968). votes for the presidency of the Nation; Deputies to 535,747 votes; Representative judges and 577,338 votes. Over the years it has had different names and is now called the Panamanian Party and its President is the current Democratic Change party (CD): Political organi- president of Panamá, Juan Carlos Varela Rodriguez. Its zation founded in 1998, it’s the second political main doctrine is “panameñismo”, alleging that “Panaparty in the country in registered members, with ma is for Panamanians”. The panameñista ideology has a total enrollment of 402,000,275, according to re- its roots in prevailing nationalism during the 1930s in ports of the Electoral Tribunal of November 2014. the middle class. Their motto is “For a Better Panama.”

Observe the flow of votes to the Democra- In the general elections held in 2004, won 162,830 tic Change Party has achieved in electo- votes presidential. For Deputy 178,189 votes. Reral tournaments 1999, 2004, 2009 and 2014. presentative judges for a total of 239,873 votes.

19.

POLĂ?TICA In the electoral contest held in 2009, the Pana- can symbolize a new political power option, among other manian Party reached 293,554 votes for Pre- reasons because of a conspicuous absence of leadership. sident of the Nation. For Deputy 334,282 votes. Representative judges to 321,553 votes. The Democratic Revolutionary Party (PRD) hardly fail to lead a presidential payroll, despite the criIn democratic elections in 2014, the Panamanian sis and deep divisions being experienced. Remains Party presidential got 563,584 votes. For Deputy the largest party nationally organized and its role 343,880 votes. Representative judges to 350,786 votes. in the upcoming election campaigns elections will have a prominent role without discarding a possiObviously, when considering results of the last four ble electoral victory, depends heavily on the leadersgeneral elections of these three powerful Panama- hip emanating from its ranks to promote and achienian both President of the Republic, Deputies and ve, to the extent of its possibilities, desired unity. Representatives of judges, political parties lead to The Panamanian Party, winner of the 2014 electothe conclusion that these political forces represen- ral contest, certainly also will run presidential pating different and unique power alternative possi- yroll to a possible and likely partisan alliance. Your bility to win the next elections, convened for 2019. chance of winning will depend on the success of the work which will play the current president of the All three are powerful political entities that domi- nation in remaining four years of his government. nate the national political scene, putting most elected positions in the organs of the state, like in most For its part, the Democratic Change Party (CD), by Panamanians are inscribed in political parties. the difficult circumstances, hardly enter into political alliance with one of the other two major parties, forSince the return of democracy in 1990, the three po- cing him to direct his own presidential payroll. Its valilitical parties have alternated the Executive Branch, dity or extinction depends on the attitude assumed its dominating control of the Legislature, sometimes with chairman, founder and patron, and former President each other or through alliances with smaller parties. Ricardo Martinelli. It is a vain hope of those who believe they can replace their internal control and leadership. Although now it seems premature to predict what will happen in the next election So, analyzing details set forth, prospect of our native 2019, no less true that the choice of power will political scene for the next electoral process of 2019 emerge from these three party organizations. will depend solely on these three powerful political forces to sovereign people, by choice, will choose There is hardly alliance between them, but in one of them as the most convenient their interests, politics there are no surprises but surprised. to help improve the country, making it bigger, exerting a government without profit at the expense of More likely also that each of these launches his presi- people, thinking about the underclass and benefidential candidacy individually, taking into account the ting most of the country with justice and dignity. L&E circumstances and conditions that are around there. It would be very strange that in the four years until the 2019 elections may arise a new party or political force that

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PANAMANIAN ECONOMY SEMINARIO LEY 23 DE 2015 BLANQUEO DE CAPITALES, FINANCIACIÓN DEL TERRORISMO Y PROLIFERACIÓN DE ARMAS DE DESTRUCCIÓN MASIVA

El pasado 21 de julio, se llevó a cabo el seminario “Conozca el Nuevo Régimen para la Prevención del Blanqueo de Capitales y otros delitos”, el cual fue organizado por Rivera, Bolívar y Castañedas (RBC) y contó como conferencista con la participación de su excelencia Eyda Varela de Chinchilla, vice ministra de economía y finanzas, del licenciado Francisco Bustamante intendente de la Intendencia de Supervisión y Regulación de Sujetos no Financieros, y del director del Registro Público Fernando Alfaro, como asistente e invitado especial.

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

profesionales sujetos a supervisión sean utilizados como medio, mecanismo o vehículo para el Blanqueo de Capitales, el Financiamiento del Terrorismo y el Financiamiento de la Proliferación de Armas de Destrucción Masiva.

La señora vice ministra fue la encargada de abrir el evento, quien desarrolló el tema Juntos por Panamá: GAFI Plan para salir de la lista gris y repercusiones de no hacerlo, refiriéndose a los antecedentes de la inclusión del país en la lista gris del Grupo de Acción Financiera, lo que se ha hecho y lo que queda pendiente por hacer, todo ello encaminado a cumFormaron parte del grupo de conferencistas los licencia- plir con las exigencias de los organismos internacionales. dos José Javier Rivera, Maybé Mendieta, Augusto García, Indicó que en el año 2012 el Fondo Monetario Internacional Lucila Rivas, Anna Admadé y Yestrill Mccree, quienes (FMI) sometió a Panamá a la revisión sobre el seguimiento de presentaron a los asistentes un análisis de la Ley 23 de de los estándares internacionales en la prevención de los delitos 2015 que establece el marco regulatorio para que los di- de blanqueo de capitales y el financiamiento del terrorismo. ferentes organismos de supervisión, entidades y personas naturales o jurídicas sujetas a supervisión tengan dentro El resultado del informe del FMI determinó que Panamá de sus objetivos la de mitigar los riesgos que se deriven es vulnerable porque, entre otros aspectos, el país había tide la posibilidad de que los productos y servicios ofreci- pificado penalmente el blanqueo de capitales y el financiados por los Sujetos Obligados Financieros, Sujetos Obli- miento del terrorismo, pero su sistema legal no estaba aligados no Financieros y Actividades por realizadas por neado completamente con las recomendaciones del GAFI.

PANAMANIAN ECONOMY Señaló que el hecho de estar en una lista gris, tiene repercusiones para el país y estas se traducen en una afectación a la reputación; aleja a los inversionistas, los centros financieros serios no aparecen en la lista; hay un incremento en los costos operativos; un aumento al riesgo país y el default en el comercio internacional. En lo que respecta al Plan de Acción de Panamá, señaló que el mismo consiste en 19 áreas de mejora en transparencia, las que deben ser cumplidas o en camino a serlo, siendo las acciones más importantes la de: 1. Aprobación de una ley para la prevención del Blanqueo de Capitales, Financiamiento del Terrorismo y la Proliferación de Armas de Destrucción Masiva. 2. Reglamentación. 3. Modificación de la ley penal, estableciéndose los nuevos delitos precedentes. 4. Ley de cooperación internacional. 5. Reforzamiento de la Unidad de Análisis Financiero (UAF). 6. Aprobación de la Ley 47 de las acciones al portador. Otro de los temas abordados lo fue la comparación entre los resultados de la Reunión Global de la GAFI celebrada el 27 de febrero de 2015 y el 29 de junio de 2015, concluyendo GAFI en esta última reunión que se reconoce los avances significativos que Panamá ha dado para mejorar el régimen anti blanqueo de capitales con la modificación al Código Penal, promulgación de la ley antiblanqueo de capitales y financiamiento del terrorismo y la ley de cooperación internacional. Sin embargo, comentó que subsisten deficiencias indi-

22.

cadas en el plan de acción, las que se encuentran pendientes de ser implementadas y que tratan sobre el congelamiento preventivo de activos de terroristas; la efectividad en los mecanismos de debida diligencia y el aseguramiento de la operatividad efectiva y completa de la UAF. En relación a las seis deficiencias indicadas en el Plan de Acción, señaló que se ha cumplido con la Cooperación Internacional, Reportes de Operaciones Sospechosas con la inclusión de nuevas industrias a supervisar y con la Criminalización del Terrorismo y Blanqueo de Capitales, con los nuevos delitos precedentes en el Código Penal. Pendiente de culminación total se encuentra el Fortalecimiento de la UAF; Reporte de operaciones sospechosas y el Congelamiento de los Activos de Terroristas. Concluye la vice ministra, indicando que Panamá ha cumplido con el 90% del plan de acción acordado con el Grupo de Acción Financiera y que la aprobación de la Ley 23 de 2015 y la creación de la Intendencia de Regulación y Supervisión de los Sujetos Obligados no Financieros nos ponen más cerca de salir de la lista gris. Comentó sobre las bondades de la Ley 23, al señalar que con la norma se incluye el financiamiento del terrorismo y la proliferación de armas de destrucción masiva, se elimina la entidad declarante, se incorpora la categoría de sujeto obligado, se agregan nuevos sujetos obligados, se adopta el nuevo enfoque estándar de enfoque basado en riesgos, entre otros puntos. Dentro de este esquema, el equipo de abogados de RBC entró de analizar en forma detallada la Ley 23, señalando que el objetivo de la norma se centra en establecer

PANAMANIAN ECONOMY una medida de prevención del blanqueo de capitales la de de Inversión y el Proidentificar y entender sus riesgos y consecuencias, ade- veedor de Servicios más de la implementación controles para su mitigación. Administrativos del Mercado de Valores. En cuanto al ámbito de aplicación, se hizo referencia a Los sujetos superviComisión Nacional contra el Blanqueo de Capitales, Fi- sados por la Superinnanciamiento del Terrorismo y Financiamiento de la Pro- tendencia de Seguros liferación de Armas, la que se había designado en el an- y Reaseguros son los teproyecto de ley como Comisión Presidencial de Alto Compañías de SeguNivel, que es la encargada de aprobar las estrategias na- ros y Reaseguros; Cocionales de riesgos, con la finalidad de tomar las medidas rredores de Seguros, necesarias para mitigarlos, gestionar los recursos y adop- Corredores de Reasetar las decisiones de aplicación a los sujetos obligados. guros; Ajustadores de Seguros y/o InspecAsí como también, a la UAF, que es el centro na- tores de Averías; Ejecional para la recopilación y análisis de informa- cutivos de Cuentas o ción financiera relacionada con los delitos de blan- de venta de seguros; Canales de Comercialización; Adqueo de capitales, financiamiento del terrorismo y ministradores de Empresas de Aseguradoras; Asegufinanciamiento de la proliferación de armas de destruc- radoras Cautivas; Administradores de Aseguradoras ción masiva, la cual con la Ley 23 ha resultado fortalecida. Cautivas y Administradores de Corredores de Seguros. Los Organismos de Supervisión entre los cuales se encuentran la Superintendencia del Mercado de Valores Por su parte el IPACOOP como nuevo organismo de (SMV), la Superintendencia de Bancos (SBP), , la Super- supervisión, deberá supervisar a las Cooperativas de intendencia de Seguros y Reaseguros de Panamá (SSRP), Ahorro y Crédito; Cooperativas de Servicios MúltiInstituto Panameño Autónomo Cooperativo (IPA- ples o Integrales que desarrollen la actividad de ahoCOOP), siendo este organismo incorporado por la Ley 23. rro y crédito y cualquier otra Organización Cooperativa que realice la actividad de intermediación financiera. Se estudió de manera precisa a los Sujetos Obligados Financieros, los Sujetos Obligados No Financieros y las Acti- Los sujetos obligados no financieros lo componen las emvidades realizadas por Profesionales sujetas a supervisión. presas establecidas en Agencia Panamá Pacifico, Zona FranDestacando que dentro de los sujetos financieros obligados ca de Barú y Zonas francas de comercio exterior; Empresas que se encuentran sujetos a la supervisión de la Superin- de la Zona Libre de Colón; Empresas de Remesas de Dinero; tendencia de Bancos, están Bancos, Empresas Fiduciarias, Casinos, juegos de suerte y azar y organización de sistemas Empresas Financieras, Empresas de Arrendamiento Finan- de apuestas; Empresas Promotoras, Agentes Inmobiliario ciero o Leasing, Empresas de Factoring; Emisores o Proce- y Corredores de Bienes Raíces cuando realicen transacciosadores de Tarjetas de Débito, Crédito y Prepagadas, Enti- nes de compra y venta de bienes inmobiliarios; Empresas dades Emisoras de medios de pago y Dinero Electrónico. Dedicadas a la Construcción; Empresas de Transporte de Valores; Casas de Empeño; Empresas dedicadas a la coEn cuanto a las reguladas por la Superintendencia del mercialización de metales preciosos, Lotería Nacional de Mercado de Valores se encuentran a las Organizaciones Beneficencia; Correos y Telégrafos Nacionales de Panamá; Autorreguladas, Casas de Valores, Administradores de In- Casas de Cambio, Empresas dedicadas a compra y venta de versión, Administradoras de Fondos de Pensiones y Admi- autos nuevos y usados y la Bolsa de Diamantes de Panamá. nistradoras de Fondo de Cesantía; Sociedades de Inversión y Sociedades de Inversión Auto Administradas; Asesores Las actividades realizadas por profesionales están compren-

23.

PANAMANIAN ECONOMY didas por abogados, contadores públicos autorizados, auditores externos, notarios, estarán obligados especialmente cuando realicen compraventas, administración de dinero, cuentas bancarias, compraventa de personas jurídicas, preste el servicio de proveedor de domicilio registrado, actuación para que la firma de abogados actúe como director apoderado, accionista, agente residente, entre otros servicios. Por otro lado, se trató la obligación de los sujetos obligados de reportar las operaciones sospechosas, que son aquellas operaciones que no pueden ser justificadas o sustentadas contra el perfil financiero o transaccional del cliente, o aquella operación que pudiera estar relacionada con el Blanqueo de Capitales, Financiamiento del Terrorismo o Financiamiento de Proliferación de Armas de Destrucción Masiva. También se habló sobre las sanciones administrativas que pueden ser impuestas por organismos de supervisión, atendiendo a la gravedad de la falta y del sujeto obligado de que se trate. Se dejó claro que la UAF es un ente administrativo que no está facultado para calificar alguna omisión a la Ley 23 como un delito. En el tema de los mecanismos de prevención y control de riesgos, se indicó que estos se establecerán dependiendo del perfil de riesgo de los sujetos obligados financieros o no financieros y de las actividades realizadas por profesionales sujetos a supervisión, de los tipos de clientes, productos y servicios que ofrece, los canales de distribución o comercialización y la ubicación geográfica de sus instalaciones.

cidieron en que son aquellos controles y procesos de supervisión que debe tener una entidad para conocer a sus nuevos y antiguos clientes, que incluyen su actualización periódica y que la implementación de las mismas ayudan a proteger la reputación de las personas jurídicas, naturales, instituciones y la integridad del sistema, reduciendo la probabilidad de que los sujetos lleguen a ser utilizados como vehículos o se conviertan en víctimas del crimen financiero, y sufran daños de reputación consecuentes. Otro de los temas que generó inquietud en los participantes, así como el anterior lo fue la Debida Diligencia, para la identificación de los clientes y verificación de la información, así como la actualización de los registros de información y documentación, siendo esta una de las obligaciones principales de los sujetos obligados. Se tocó lo relativo a los clientes calificados como Peps ya sea nacional o extranjero y sobre todo verificar si el beneficiario final es una persona con exposición política, identificar la procedencia de sus fondos y su patrimonio. En el desarrollo de este tema, los asistentes pudieron conocer de casos precisos que se han dado en otros países, pero que sin duda contribuyeron a que tuviesen mayor claridad en el tema. Quedó establecido que la prestación de los servicios y las operaciones que lleven a cabo los sujetos obligados deberán aplicarse bajo el enfoque de los riesgos, que conlleva a una evaluación de los servicios que se ofrecen a los clientes, así como la ubicación geográfica en la que se presta el servicio, y realizar la segmentación de los clientes, de manera que puedan examinar todas los antecedentes del cliente, las transacciones con independencia de la cuantía y los propósitos del servicio, además de asegurar los datos de las transferencias electrónicas.

Uno de los últimos temas tratados lo fue el aspecto penal, donde se abordó los antecedentes legales del delito de blanqueo de capitales en Panamá y de los correlacionados con esta figura siendo estos Homicidio por precio o recompensa; Contra el ambiente; Enriquecimiento ilícito; Pornografía y corrupción de personas menores de edad; Trata y explotación sexual y comercial; Delitos Para la política de Conozca a su Cliente, los panelistas coin- contra el Derecho de Autor y Derechos Conexos, Finan-

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PANAMANIAN ECONOMY ciamiento del terrorismo; Contrabando y defraudación aduanera; Tráfico ilegal de armas; Estafa calificada; Tráfico de drogas; Tráfico de personas; Secuestro; Extorsión; Peculado; Corrupción de servidores públicos; Robo y el Tráfico internacional de vehículos. Así como también la tipificación del delito de blanqueo de capitales. La jornada de capacitación terminó con la participación del Intendente de la Intendencia de Supervisión y Regulación de Sujetos no Financieros Superintendente, quien señaló que la Intendencia de Supervisión y Regulación de Sujetos no Financieros, adscrita al Ministerio de Economía y Finanzas tendrá a su cargo en la vía administrativa la

dimientos para prevenir y detectar actos, omisiones u operaciones que pudieran estar relacionadas con los delitos de blanqueo de capitales, financiamiento del terrorismo y proliferación de armas de distribución masiva. En este sentido, comentó que la fiscalización podrá hacerse extra situ, identificando áreas que merezcan mayor atención de supervisión de manera de lograr una planificación estratégica situacional y destinar los recursos conforme a los riesgos identificados y las distorsiones encontradas. O también in situ mediante la revisión de campo, que implica la identificación de todas las categorías de riesgo, que impactan el normal desenvolvimiento del Reiteró la importancia de la debida diligencia ya sea ampliada o reforzada, siendo esta el conjunto de normas, políticas, procedimientos, procesos y de gestiones más exigentes y razonablemente diseñadas para que el conocimiento del cliente se intensifique en función de los resultados de la identificación, evaluación y diagnósticos de los riesgos.

La debida diligencia simplificada conjunto de normas, políticas, procedimientos, procesos y de gestiones básicas. Concluyó señalando que en la Intendencia de Supervisión y Regulación de Sujetos No Financieros, tenemos la visión de convertirnos en un medio para apoyar a los empresarios y profesionales a blindarse y no ser utilizados por aquellos delincuentes que aprovechen las fisuras de la ley supervisión y regulación de los sujetos obligados no finan- para hacer sus fechorías y perjudicar el resto de la sociedad. cieros y actividades realizadas por profesionales sujetos a supervisión, referente a la prevención del Blanqueo de Ca- Señaló que se está trabajando en la reglamentación de pitales, Financiamiento del Terrorismo y Financiamien- la Ley y exhortó a los asistentes a que participen activato de la Proliferación de Armas de Destrucción Masiva. mente en la discusión del borrador y que al momenComentó a los presentes que como Intendencia emitirá to ha mantenido intercambio con varias asociaciones. la normativa que se requiera, llevaran a cabo una función divulgación de la normativa, que la función será la La jornada finalizó con la interacción entre los participantes de regular mediante una supervisión del cumplimien- y conferencistas, espacio en el que pudieron aclarar las dudas to de sus obligaciones. Que en consecuencia los suje- e interrogantes surgidas durante el desarrollo del evento; sin tos supervisados deberán mantenerse informados de embargo, queda pendiente la reglamentación de la Ley 23 de las actividades de sus clientes, participación en el pro- lo cual les estaremos hablando en las próximas ediciones. L&E ceso de la creación de normas, implementar las normas que sean aprobadas y utilizar la debida diligencia. Señaló que contaran con un manual de supervisión, mediante el cual se establecerán las medidas y proce-

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PANAMANIAN ECONOMY

WATER CAPACITY FOR POPULATION GROWTH IN ARRAIJÁN AND LA CHORRERA

Ilka de Chen - Depto. de Contabilidad RBC ilka.chen@rbc.com.pa

endoza water treatment plant, located in an area known re of the electricity supply are two determining facby the same name in La Chorrera, was built 2009 and is cu- tors that cloud the smooth operation of this plant. rrently managed by the Panama Canal Authority (ACP). Population growth in Arraiján and La Chorrera, have It produces 32 million gallons of water a day and provi- surpassed 300,000 inhabitants and in the last four years des water to residents of La Chorrera, Arraijan and Capira. have built more than 60,000 homes that influence water The plant has three pumps operating on a perma- crisis in the sector reaches its maximum alert, and then nent basis, additional quarter of intermittent use. that authorities must take urgent necessary measures to avoid a collapse in the service of the precious liquid. L&E The ACP has installed suction pumps the water treatment plant of Mendoza, in order to obtain raw water to the treatment process. In recent days the plant operations due to the blockage of raw water intake, located on Lake Gatun, which left without drinking water to eight villages of the districts of La Chorrera and Arraiján be suspended. Clogging water intake with aquatic weeds, leaves, stems and gravel resulted from the low level of Gatun Lake. Because this has taken the step of performing cleaning work in the area of water intake to prevent accumulation of solid waste and sediments, affecting operation of water treatment plant. Water crisis has generated a number of concerns about consequences of El Niño, as experts have pointed out that a drought will last until March 2016 is expected to further aggravate the problem with deforestation in areas west and north Canal basin. It notes that the problem of drought and failu-

26.

PANAMANIAN ECONOMY

MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-MAY 2014-15

or period of January to May 2015, major monthly economic indicators showed positive performance in production activities related to domestic demand in the country, compared with their counterparts in 2014 were: slaughter of cattle, pigs, production pasteurized milk, raw milk, tomato products, sugar; Hydraulic power generation, electricity consumption, water billing in the Republic; value of permits for construction, additions and repairs, new car sales, the national banking system assets and value of the subscribed and casualty premiums. Indicators related to the world, showed positive signs: weight exported bananas, melon, watermelon, shrimp, clothing, and hides and skins; passenger entrance living abroad; toll revenues, net tons and cargo volume on the Panama Canal.

1. Manufacturing:

Increases were reported in slaughter of cattle and pigs 5.3 percent 3.6 percent, respectively. On the other hand, it increased production of pasteurized milk by 7.7 percent, natural milk used for the production of products by 1.0 percent, tomato by 19.2 percent, sugar by 1.4 percent and rectified alcohol at 1.7 percent. Negative changes in production of evaporated, condensed and powdered milk 20.8 percent, 8.4 percent salt, alcoholic beverages by 0.3 per-

27.

Fuente: CGRP

cent and soft drinks by 1.5 percent was observed.

2. Electricity and water:

a. Electricity: Hydraulic power generation rose by 79.6 percent; however, the termic generation was reduced by 29.4 percent, as the surplus generated by the Panama Canal Authority at 30.0 percent. Total electricity consumption increased by 7.0 percent which excelled, residential customers by 6.1 percent, trading at 9.0 percent, 9.0 percent and government generators at 86.6 percent. b. Water: The turnover of drinking water in the Republic increased by 3.5 percent and leading sectors were: trade by 4.4 percent, industry 3.4 percent and 3.9 percent residential. For its part, government sector decreased by 1.0 percent.

3. Construction:

The value of permits for construction, additions and repairs grew by 5.7 percent. Of these, outstanding residential construction by 8.8 percent and nonresidential 2.9 percent. The most representative districts were: Panama 6.8 percent, Col贸n 60.9 percent and 27.7 percent Arraij谩n. Decline was reported in the

PANAMANIAN ECONOMY district of San Miguelito 7.1 percent and grouped the districts of David, Santiago, Chitre, Aguadulce and La Chorrera, at 5.6 percent. The concrete production fell by 22.2 percent and gray cement 2.6 percent.

4. Internal trade:

oil 70.6 percent , coffee 76.3 percent and beef cattle by 13.1 percent. Banana 7.0 percent, 63.8 percent melon, watermelon 0.7 percent, 20.9 percent shrimp, hides and skins 11.6 percent and 73.1 percent clothes: Moreover, favorable performance was presented.

d. Colon Free Zone: The commercial value in the Colon Free Zone reported negative change in 0.7 percent of these re-exports FOB decreased by 3.8 percent, however, CIF imports rose by 2.8 percent. In turn, it decreased the weight of commercial activity in metric tons, 2.2 percent, specifically, re-exports by b. Sales of new cars: The new car sales reflected po- 5.5 percent; by contrast, imports grew by 1.0 percent. sitive variation of 7.5 percent, especially segments: regular cars 14.8 percent, luxury cars 1.5 percent, 6. Hotels and entry of passengers: SUVâ&#x20AC;&#x2122;S 6.9 percent, minivans 42.5 percent and trucks a. Hotels: The hotel business in the city of Pana16.1 percent. Low panel segments reported 6.9 perma presented decrease in average daily rooms occent, 4.8 percent pick ups and buses in 35.8 percent. cupied 4.8 percent, daily average overnight stays at 9.2 percent and occupancy rate at 5.0 percent. b. Passenger entrance living abroad and expenses: Entry 5. Foreign Trade: a. CIF value of imports of goods: The CIF value of of passengers residing abroad increased by 6.8 percent, imports of goods decreased by 13.2 percent, mainly influenced by a greater inflow of 8.1 percent visitors, esconsumer goods 23.6 percent, intermediate goods pecially tourists and hikers 23.3 percent to 19.5 percent. by 2.9 percent and capital goods by 3.8 percent. The costs incurred by visitors amounted to 13.8 percent. a. Sale of fuels for domestic use: The sale of fuels for domestic consumption fell by 4.4 percent, of these, low sulfur diesel 27.1 percent and liquefied petroleum gas by 2.0 percent. Meanwhile, gasoline consumption increased by 7.8 percent, mainly, the 95 octane 20.0 percent.

b. FOB value of exports of goods: FOB value of exports of goods fell by 10.8 percent, items that fell most were: petroleum products at 66.2 percent, 6.2 percent watermelon, pineapple 39.5 percent, shrimp 9.7 percent yellowfin frozen tuna, fresh fish and fish fillet 14.6 percent, raw sugar 3.7 percent, flour and fish oil 61.8 percent, coffee 72.7 percent and beef cattle at 4.5 percent; on the contrary, positive changes were observed in 6.2 percent banana, melon 79.4 percent, 46.6 percent and clothing, furs and leather in 19.5 percent.

7. Transport:

Panama Canal indicators registered positive variation in toll revenues of 3.8 percent, net tons by 3.8 percent, cargo volume in metric tonnes, of 9.1 percent and transit of vessels by 2.3 percent . Cargo movement through the National Port System increased by 8.9 percent, standing bulk cargo by 24.7 percent; however, general cargo decreased 30.8 percent and 2.6 percent containerized. The movement of containers in TEU increased by 2.8 percent.

c. Weight in exports of goods: Weight of exports of 8. Financial Intermediation: goods fell by 11.5 percent. Most sensitive areas were: a. National Banking System: Total assets of natiopetroleum products 24.8 percent, pineapple 40.0 per- nal banking system rose by 12.4 percent, liquid ascent yellowfin frozen tuna, fresh fish and fish fillet sets standing at 17.6 percent and the loan portfolio 20.1 percent, raw sugar 15.3 percent, flour and fish

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PANAMANIAN ECONOMY by 10.7 percent. Total deposits grew by 11.1 percent. b. Stock indicators: Total volume traded on the Stock Exchange fell by 29.6 percent. Of these, primary market fell by 41.7 percent and 68.8 percent repurchases; However, secondary market grew by 13.1 percent. In the stock market, the index calculated on the Stock Exchange rose by 2.3 percent, the volume traded in the stock market at 42.3 percent, not, the number of shares which contracted by 13.7 percent. c. Insurance: The value of written premiums had positive change of 1.5 percent, were featured segments: individual life 15.2 percent, 3.6 percent health, group life 9.3 percent, 12.0 percent and automobiles by 14.4 percent bonds. 1.8 percent personal accident, fire and multi-risk 9.8 percent, 1.7 percent other transportation and technical branches at 42.1 percent: On the other hand, negative changes in the segments presented. Gross claims incurred amounted to 12.9 percent. d. Loans from Agricultural Development Bank: Loans from the Agricultural Development Bank fell by 17.9 percent of those in agriculture 30.0 percent and livestock 9.0 percent; however, the fishing increased 35.2 percent.

9. Public Sector Finances:

a. Current revenue of Central Government: The Central Government current revenues decreased by 8.1 percent and of these, 4.4 percent tax. In indirect taxes, collection of ITBMS sales decreased 7.8 percent and non-tax revenues by 20.5 percent.

10. Leisure activities:

11. Other related:

a. Employment contracts registered in the MITRADEL: Employment contracts registered with the Central Office MITRADEL, fell by 1.1 percent, mainly, the works identified in 10.9 percent; on the contrary, they increased as defined in 5.5 percent and 3.9 percent indefinite.

CONSUMER’S PRICE INDEX In June, five of twelve groups that make up the basket of LPC showed price increases in five groups decreases and two were unchanged. The groups that were most significant positive changes were: Transportation 0.8 percent; Food and non-alcoholic beverages, and Miscellaneous goods and services, both with 0.3 percent. Transportation group recorded increase the “Fuels and lubricants for personal transport equipment” class with 0.8 percent due to rise in price of gasoline. In the group of food and non-alcoholic beverages significant variation in “Meat” class that reached 0.8 percent increase in beef stands out. The group of Miscellaneous goods and services was mostly affected by the increase registered in the class “Other appliances, articles and products for personal care” of 0.6 percent, rising personal care items and beauty. The other groups were presented upside: restaurant and hotels 0.2 percent and 0.4 percent Health.

The report betting gambling operators of chance recorded growth of 10.9 percent; in turn, slot machines type “A” by 11.8 percent, meeting bets on sporting events 64.8 percent, table games 10.2 The groups showed negative variations in CPI were: percent and 1.2 percent racecourse. Net sales gi- Communications 2.6 percent, clothing and footveaways National Lottery increased 2.0 percent. wear by 0.9 percent, alcoholic beverages and snuff

0.5 percent and Recreation and culture 0.2 percent.

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PANAMANIAN ECONOMY Finally, furniture, household items and routine household maintenance and education groups remained unchanged. Then graph the monthly incidence by group of National Urban CPI June 2015:

Incidence: is the contribution of each group to total variation of the National Urban Index, therefore, the amount of incidents resulting index variation.

EVOLUTION OF CONSUMER PRICE INDEX: MONTHLY AND CUMULATIVE CHANGE

30.

PANAMANIAN ECONOMY

ECONOMY GROWS IN 4.56% FROM JANUARY TO APRIL

onthly Economic Activity Index (IMAE) in the Republic, within period from January to April 2015, measured in terms of original series in 1996 prices, grew by 4.56 percent compared to 4.58 recorded in the same period 2014 the National Institute of Statistics and Census (INEC) of the Comptroller General of the Republic.

Source: CGRP

Sectors of construction and mining and quarrying showed good behavior, due to contribution of construction in private sector; however, are still influenced by low related to the Canal expansion and the completion of several large projects of state investment activities.

Providing amusement and recreation serFisheries, transport, storage and commu- vices still favored by revenues from gamnications, construction, mining and qua- bling arcades of chance, especially type rrying, community, social and personal ser- slot machines and table games. L&E vice activities, electricity and water, hotels and restaurants, and financial intermediation were the sectors that performed better for the economy. According to the INEC, manufacturing and trade recorded decrease. Fishing reported positive rate due to the capture of species destined mainly for export. They recorded a favorable performance transport operations and communications sector, mainly in telecommunications, air transport and movement measured in the National Port System TEU containers.

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PANAMEÑOS ILUSTRES DIÓGENES DE LA ROSA ROBLES (1904-1998) Lisbeth Martez - Secretaria lisbeth.martez@rbc.com.pa Fuente: En Caribe Enciclopedia de Historia Y Cultura del Caribe

tuía la vía interoceánica, junto con grandes extensiones de tierras y algunas de las fuentes de agua más valiosas de Panamá; de tal modo, hipotecó la soberanía nacional por casi cien años.

eriodista, historiador, ensayista, político y diplomático panameño. Miembro de número de la Academia Panameña de la Lengua y de la Academia Panameña de la Historia. Uno de los más importantes teóricos de la nacionalidad panameña, junto a Justo Arosemena, Eusebio A. Morales y Ricaurte Soler, entre otros. Diógenes De la Rosa Robles fue hijo de Mauricia Robles y de Lucio De la Rosa, obrero de origen mexicano que se desempeñaba como jornalero en los muelles del puerto de Balboa y de La Boca, en la entrada sur del Canal de Panamá -en la antigua Zona del Canal. Nació en la ciudad de Panamá el 26 de enero de 1904, a poco menos de tres meses de la separación de Panamá de Colombia (llevada a efecto el 3 de noviembre de 1903), y a escasas semanas de la firma del Tratado Hay-Bunau-Varilla, de 18 de noviembre de 1903. Mediante este tratado, Estados Unidos construiría y administraría el Canal de Panamá. Para ello, expropió el recurso geográfico que consti-

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Diógenes De la Rosa realizó estudios primarios en la Escuela Anexa al Instituto Nacional. Su temprana vinculación a proyectos sociales y políticos de sentido popular y nacional fue condicionada -y aun determinada- por la formación que brindaba el Instituto Nacional, gracias al influjo del pensamiento avanzado de maestros como José Dolores Moscote, Octavio Méndez Pereira, José Daniel Crespo, Cristóbal Rodríguez, Jeptha B. Duncan, José Pezet, Manuel Patiño y otros. En no menor grado, recibió la influencia del contexto económico, social y político que caracterizó las frágiles primeras décadas de la República, signadas por la construcción del canal interoceánico, el intervencionismo norteamericano y la constante ocupación militar de las ciudades de Panamá y Colón y de otras porciones del territorio, con el consiguiente menoscabo de funciones esenciales del Estado. Asimismo, la situación latinoamericana e internacional, marcada por la Revolución Mexicana, la Revolución Bolchevique, la Reforma Universitaria de Córdoba, la Primera Guerra Mundial y el arribo a Panamá de exiliados provenientes de diversas latitudes también prepararon su desarrollo político. Por otra parte, el autoestudio sistemático, el contacto con prestantes personalidades del ámbito nacional y latinoamericano y la práctica socio-cultural y política lo acercaron a las ideas sociales más avanzadas, y en particular al marxismo.

PANAMEÑOS ILUSTRES Diógenes De la Rosa se graduó como Maestro de Enseñanza Primaria en el Instituto Nacional, el 2 de febrero de 1921. En 1920, cuando apenas contaba con dieciséis años de edad, formó parte del Grupo Comunista de Panamá, organización fundada e inspirada ideológicamente por José María Blázquez De Pedro, anarcosindicalista español asilado en Panamá, quien sería expulsado del país en 1925, en el marco de la represión que siguió a la ocupación militar norteamericana enfilada contra la dirigencia del Movimiento Inquilinario. A partir de entonces, los empeños de Diógenes De la Rosa se dirigieron a la organización de los sectores populares y de la clase trabajadora en asociaciones culturales y políticas como la Federación Obrera de Panamá, el Sindicato General de Trabajadores, la Liga de Inquilinos y Subsistencias, la primera Federación de Estudiantes (1922-1925), el Partido Laborista, el Partido Socialista (junto a Demetrio Porras y José Brower), el Grupo Renovación Social (con Carlos Sucre Calvo, Antonio J. Sucre, Felipe Juan Escobar y José Ma. Lasso de la Vega) y el Círculo de Jóvenes Escritores “Demetrio Herrera Sevillano”, al lado de Bonifacio Pereira. En 1933, con Rodrigo Miró, Luis Restrepo, Octavio Henríquez y otros, participó en la fundación del Partido Obrero Marxista Leninista, cuyo órgano de divulgación fue el periódico Organización, que él dirigió. De la Rosa discrepó firme y abiertamente de la línea impuesta por José Stalin a la Internacional Comunista tras la muerte de Lenin, y se adhirió a las ideas de León Trotski. En 1936, al estallar la Guerra Civil Española, se creó en Panamá el Comité de Defensa de la República Española, del que formaron parte Elida C. de Crespo, Rodrigo Miró y Víctor Cruz Urrutia. Diógenes De la Rosa dirigió el órgano de divulgación del Comité, que recibió el nombre de España Libre. Su tesón contribuyó a abrir cauce a luchas populares y nacionales de especial proyección histórica, como el Movimiento Inquilinario de 1925 y 1931-1932, el rechazo a la firma del Tratado sobre el Canal Alfaro-Kellogs, en 1926; la creación de la Universidad Nacional, en 1935, y el reconocimiento de su autonomía; el movimiento de 1945-1946 por una Asamblea Constituyente. De manera destacada, dedicó ingentes esfuerzos a la lucha por la abrogación del tratado sobre el Canal de 1903. De la Rosa y José A. Brower ostentaron la representación del Partido Socialista ante la Asamblea Nacional Constituyente de 1945, que elaboró la Constitución Política de 1946, cuyo articulado recoge algunas de sus propuestas de mayor sentido social. Diógenes De la Rosa comenzó a incursionar en el periodismo a la temprana edad de catorce años, en la Revista Minerva. Más

33.

adelante colaboró en el semanario El Nuevo Tiempo, fundado por José Dolores Moscote; en los diarios La Nación (1921) y El Nacional (1922-1923), dirigido por Domingo H. Turner; en El Tiempo, fundado en 1919 por Guillermo Andreve y dirigido por Jeptha B. Duncan, y en La Estrella de Panamá (1925). En ese ejercicio adquirió maestría, particularmente en el género ensayístico. Fundó y dirigió un número plural de diarios: El Hombre Libre (1924), El Inquilino (1925), El Laborista (1926), El Grito del Pueblo (1928), El Nuevo Liberal (1931-1932), El Campesino (1934), España Libre (1936-1937), Frente Popular (1937), Guion (1942), Acción Socialista (1944) y El Socialista (1945-1946). Fue también colaborador -o fundador- de diversas revistas panameñas y extranjeras: Letras de Panamá; Cuadernos de Cultura; Comentarios; Repertorio Americano -que dirigió en Costa Rica Joaquín García Monge- y Trabajo, dirigida por el venezolano Rómulo Betancourt, a la sazón exiliado en Costa Rica. De la Rosa fue concejal del Distrito Capital en el período 19321936; representante de los inquilinos ante la Junta de Inquilinato (entidad tripartita creada en 1932 en el contexto de las luchas inquilinarias que confluyeron en la Ley de Inquilinato, redactada por De la Rosa y Domingo H. Turner durante el gobierno de Harmodio Arias); secretario del Ayuntamiento Provincial de Panamá en el período 1942-1943 -cuando Adolfo De La Guardia asumió el poder, luego del golpe de Estado contra el gobierno de Arnulfo Arias-; miembro de la Asamblea Constituyente en 1945, y Diputado Nacional en el período 1946-1948; secretario de la Junta de Estudios de los Problemas Nacionales, entre 1944 y 1945; embajador de Panamá ante la República de Venezuela, en 1959; miembro del Equipo Negociador de los Proyectos de Tratados sobre el Canal, en 1967, y miembro del Equipo Negociador de las Tratados Torrijos-Carter de 1977, el cual sentó las bases del programa gradual de descolonización y de reversión del Canal, sus tierras, aguas, bienes e infraestructuras, que culminó el 31 de diciembre de 1999. En 1997, se le confirió el Premio Universidad de Panamá. En rigor, a lo largo de más de siete décadas del siglo XX no hubo ningún acontecimiento relevante en el fatigoso desenvolvimiento de la República de Panamá en el cual Diógenes De la Rosa no hubiera sido protagonista sobresaliente. Al fallecer, el 10 de julio de 1998, poco antes de la salida del último soldado norteamericano del territorio nacional panameño (el 31 de diciembre de 1999, en cumplimiento del Tratado Torrijos-Carter), dejó a su país un legado de servicio civil. L&E

WORLD ECONOMY PRESIDENT BARAK OBAMA’S VISIT TO KENYA AND IMPLICATIONS

Ilka de Chen - Recursos Humanos RBC ilka.chen@rbc.com.pa

S president, Barack Obama, arrived on July 24 to Kenya and started a four-day trip through eastern Africa, marking the first time a US president visits Kenya. During his visit, President Obama launched the Global Summit of Entrepreneurs (GES), an initiative that was launched in 2009 and brings together in Nairobi over 1,000 entrepreneurs and investors from 120 countries with the aim of presenting innovative projects, exchange ideas and seek new funding.

nues to have serious problems in energy supply. It is hoped that Obama’s visit to reactivate economy in Kenya. Barack Obama defended his “Power Africa” initiative program which since 2013 has had many critics. With which it aims to double access to electricity in sub-Saharan Africa but which is very slow and has yet to produce electricity. US President Barack Obama, called for equal rights for homosexuals in Africa, during a joint press conference with his Kenyan counterpart Uhuru Kenyatta:

Amnesty International asked the president to use his visit, to call the world’s attention on the continuing violations of human rights taking place in Kenya. This human rights organization denounced continuing intimidation and repression against civil society representatives and journalists of independent media. Recall that President Obama’s paternal roots are in Kenya, so he took this trip to meet with their relatives at a family dinner in the hotel where he stayed. Guests included his sister Auma and her step-grandmother Sarah Obama, second wife of his grandfather stands. For analysts, this is official most emotional trip of US President.

“I have been consistent throughout Africa on this issue. When you start to treat people differently because they are different, the way where freedom begins to erode. And bad things happen”, “As an American of African descent, am painfully aware of what happens when you treat people differently under the law “ En esta conferencia se abordaron temas sobre asuntos de seguridad internacional, la lucha contra la pobreza y mortalidad infantil que es uno de los problemas más graves, porque las estadísticas demuestran que uno de cada diez niños muere en ese país antes de cumplir los cinco años.

Spokesmen for the AU (African Union), which brings The implications of Barak Obama’s visit to Kenya together 54 African nations, felt the presence of Kenya’s rulers believe that international attention it has the president as a historic event and an opportuniattracted Obama’s visit is an opportunity to attract in- ty to deepen relations with the US regional body. L&E vestment, which is urgently needed, as the region conti-

34.

WORLD ECONOMY

MOST RESPONDENTS DOESN’T BELIEVE THAT THE WORLD IS READY FOR THE NEXT EPIDEMIC

itizens of Germany, USA, France, Japan and the UK aren’t convinced that the world is prepared to deal with another worldwide epidemic such as Ebola, and strongly support making investments in developing countries to reduce risk infectious diseases, according to a new survey which covered 4000 respondents belonging to the general public and opinion groups selected the five countries. The emergence of new cases of Ebola in West Africa has made the number of respondents who believe that in next decade the world will experience another global epidemic is twice that of those who think otherwise, and less than half of the participants are convinced that their countries are prepared to deal with the phenomenon. Nearly 8 in 10 people believe that invest in doctors, nurses and clinics in poor developing countries and helps to prevent the outbreak of epidemics in their own countries, and nearly 7 in 10 people believe necessary to encourage doctors and nurses to their own countries to work in areas of emerging diseases, proceed whose benefits outweigh the risk of introducing diseases in their own countries.

Source: Banco Mundial

realization, in developing countries, investment and policy reforms that will help protect their countries from effects of global epidemics; while 7 out of 10 people believe that strengthening health care in developing countries reduce spending worldwide. The survey followed the statement made in early June by highest authorities of the Group of Seven in support of a number of global health investments, including the creation of an emergency financing facility to address pandemics and thus promote programs national and global preparedness better coordinated and more efficient and help ensure the rapid influx of financial support and other gender to curb future outbreaks. “This survey shows that the public considers as a serious global threat of infectious disease outbreaks, and hopes that the authorities take measures to prepare for the next potentially lethal epidemic,” said Jim Yong Kim, President of the World Bank Group. “That concern, which has been accentuated, is also reflected in strong support for investments to strengthen health systems in vulnerable countries, and that any country whose health system weaknesses present creates risks for its own people and to the world.”

The results of the survey, titled Preparing for the Next Outbreak: Public Views on Global Infectious Disea- The survey also shows intense concern about global ses, indicated that nearly 6 in 10 people support the health experienced by the people and elites of public

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WORLD ECONOMY opinion in these countries, that put “health and global epidemics,” among most serious reasons of global concern and believe the “global infectious diseases,” such as global health problem that most worries them. Much of the population has followed the news concerning Ebola (the proportion is 72% for the general public, and 85% among opinion elites). In the US and the UK, where KRC Research also consulted mind at the peak of the outbreak of Ebola in October last year, the level of interest has remained high (in the US, 85% in October 2014 and 82% in June 2015, in the UK, 81% in October 2014 and 79% in June 2015). “It’s encouraging, through this survey, people have come to understand the risks posed to the population Global infectious diseases, as well as crucial role that health systems equipped adaptability in field of global health security. WHO, in a joint effort with the World Bank Group and other partners, is accelerating efforts to create that capacity, countries will be able to identify and eliminate disease outbreaks and therefore to reduce national and global health risks, “said Dr. Keiji Fukuda, assistant director-general for health security of the World Health Organization. Depending on the model mentioned by Bill Gates in a recent interview, similar to the 1918 Spanish flu outbreak could kill over 33 million people in 250 days. Previous studies of the World Bank Group have led to estimate the cost of such a serious outbreak as recited in an amount which can reach 5% of global GDP, or US$ 3.7 billion according to figures based on 2013 GDP. The World Bank Group commissioned Greenberg Quinlan Rosner Research, a global consulting firm opinion research and strategy firm based in Washington, designing and conducting the survey, which was conducted online between 15 and the June 24, 2015 and included 600 participants from the general public in each of the five countries mentioned above. The study included a sample of between 172 and 200 groups of

36.

opinion in each country selected, trained, by definition, by university graduates or holders of higher academic degrees and people who closely follow world news. The World Bank Group response to epidemic of Ebola and future epidemics The World Bank Group is helping Guinea, Liberia and Sierra Leone to achieve the goal of zero cases of Ebola. It provides assistance to countries to achieve recover and move past the devastating social and economic effects of the Ebola crisis and strengthen public health systems and mechanisms for disease surveillance and pandemic preparedness throughout West Africa. In May 2015, the World Bank Group had mobilized US $ 1.62 billion in funding for programs to respond to and recover from Ebola, an amount that includes $ 1.1 billion provided through IDA, which is the fund for the poorest countries. The World Bank Group is working with WHO and other partners in the public sector and the private sector to create a service of global funding to address pandemic emergency, in order to strengthen future preparedness programs and disease outbreaks response thereto. L&E

WORLD ECONOMY

ECLAC PROPOSES DEBT RELIEF CARIBBEAN AND THE CREATION OF A SUB-FUND

he Economic Commission for Latin America and the Caribbean (ECLAC) proposes a debt relief of Caribbean countries by creditor multilateral institutions and the creation of a regional fund of resilience, given that it is a burden that hampers economic and social developments in the sub-region and compliance with Sustainable Development Goals (ODS), to be adopted in September in New York. This proposal will be presented by Executive Secretary of ECLAC, Alicia BĂĄrcena, during the Third International Conference on Financing for Development, held in Ethiopia from 13 to 16 July. ECLAC suggests that CARICOM reach an agreement with the Caribbean Development Bank, the World Bank and the International Monetary Fund to achieve a gradual cancellation of the entire multilateral external debt, since those funds went to fund recovery measures after impact of natural disasters between 1990 and 2014.

Source: ECLAC

cording to the ratio between public debt and gross domestic product (GDP). That year, total, both internal and external, in fifteen Caribbean countries debt amounted to 46,000 million, equivalent to 71% of sub-regional GDP. According to ECLAC, external public debt in seven countries with full information available (Belize, Dominica, Granada, Guyana, Jamaica, St. Lucia and St. Vincent and the Grenadines) sum total 10,955.6 million. Of this amount, 40% and 14% is multilateral, bilateral, while the rest (5.037 million dollars) is publicly guaranteed private debt.

ECLAC suggests that necessary fiscal adjustments to reduce debt to sustainable levels would be so hard to lead the country into recession. It also stresses that this debt hasnâ&#x20AC;&#x2122;t been the result of political mistakes, poor fiscal management or the international financial crisis, but external shocks, compounded by the inherent vulnerability affecting small island developing In return, recipient countries should make annual pa- states (SIDS) of the Caribbean as well as by the deyments into a fund resilience Caribbean that could be cline in foreign direct investment in recent decades. administered by the Caribbean Development Bank and main focuses would like to respond to natural di- Also, the Caribbean, to be considered middle incosasters, financing adaptation and mitigation measu- me, have limited external access concessional loans, res to climate change and promote social development. forcing them to turn to commercial sources to increase the weight of its debt. All further limit its ability to In 2013, five Caribbean countries (Antigua and Barbuda, implement the agenda for post-2015 development. L&E Barbados, Granada, Jamaica and Saint Kitts and Nevis) were among the most indebted in the world twenty, ac-

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WORLD ECONOMY

GLOBAL IMPACT OF CHEAPER OIL

hile the drop in oil prices may generate significant revenue losses for some oil-exporting countries, it is likely that consumers pay less for fuel and have more money to spend. Aasim Husain, the IMF said that the increase in consumer spending will benefit the global growth. According to a new report released by the IMF staff, an increase in consumer spending will ultimately positive effects on global growth. In an interview with the IMF Survey, Aasim Husain, co-author and Deputy Director in the Department of Middle East and Central Asia, examines the impact of falling oil prices on the global economy.

Source: Fondo Monetario Internacional

80%. In the Americas -in North and South America and Asia, it was around 50%. Therefore, the larger the effect of transfer, the greater benefit for consumer.

What consumers do with this benefit depends on what you think, depending on whether you think the fall will be permanent or temporary. If you think there will be a temporary episode, most likely will not change much your spending habits. But if you think it will be permanent, then itâ&#x20AC;&#x2122;s likely to spend more on other things because, in fact, have more money. With regard to consumer reaction, another important factor is the initial conditions in which it is locaIMF Survey: Has taken the fall of oil prices to the gene- ted, or their level of debt. For example, if a consural population? Are all households feeling the effects of mer is highly indebted (on your credit card on your lower oil prices, and what is their impact on the economy? mortgage, etc.) sees his income rises unexpectedly, you can use this increase to pay some of their debts. Husain: The decline in oil prices is undoubtedly benefit consumers, but not as much as we thought. IMF Survey: Why the dramatic fall of oil is in the Although between June and the end of last year oil last year? Is it really a sudden increase in supply, prices fell by about 50% worldwide retail fuel prices or rather a change in the consumer market? have fallen, on average, half, ie by approximately 25%. Husain: It owes more to offer than demand. In other words, the oil shale revolution, the emergence of more efficient The fall in retail prices has varied widely by country technologies and expansion of these technologies, which and region of the world. And this is because in many allow to extract oil more cheaply than ever before, was reacountries, retail prices are regulated and, in fact, in lly important. Therefore, it is now cheaper to produce that many cases, they are fixed. Therefore, they donâ&#x20AC;&#x2122;t vary oil and, according to our estimates, this cheapening exwhen varying the global oil prices. For example, in Eu- plains more than half of the fall in oil prices in the last year. rope the pass-through, that is, as we call the degree to Another factor has been the demand, especially in which oil retail prices vary in response to changes in the second half of 2014. In many regions of the world, the international price of crude oil has averaged around global economic indicators were much weaker than

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WORLD ECONOMY expected and this also had an impact on oil prices. IMF Survey: Is it concludes in its final report on the effects of lower oil prices are positive for the world economy? These two aspects have a very different impact on activity. Husain: I believe that fall in oil prices has a positiAs for the shocks that have affected supply, the discovery ve effect on the world economy. We note that posiof new technologies and new sources of oil such as shale, tive effects were expecting are taking longer to arriwill remain forever. But the demand side, the weakening ve. This is partly because in the meantime there have observed in 2014 is already beginning to disappear in been other shocks that have had a reverse effect. part, and over time the situation will certainly improve. But I also think it is in part because the savings are IMF Survey: If oil prices remain low, how exporting coun- used to reduce the excessive debt in both housetries may compensate for this loss of income in the long term? holds and businesses. The benefits of falling oil prices could slow in coming, once balance sheets have Husain: Oil producing countries must adapt to this been repaired, but the repair process is progressing new reality. Fortunately, many of them took ad- faster than expected thanks to lower oil prices. L&E vantage of the oil boom of last ten years to accumulate substantial reserves. Therefore, this gives them time to adapt, and they have no choice. What can they do? First, much of its revenue comes from the oil or oil-related. They should seek to diversify their sources of income. Many are considering implementing some form of tax corporate income or value added, since in many cases these taxes donâ&#x20AC;&#x2122;t exist or are applied at very low levels. Another possibility would be spending. Many of these countries spend greatly, for example, in infrastructure; there may be leeway for cuts in this area, especially as some projects are completed. But there is another very interesting area in which many could save: subsidies for energy or charging energy. Many countries around the world, not just the oil-producing countries subsidize energy. And indeed, the non-oil producing countries subsidize energy directly since sold to consumers petroleum products at lower than it costs to import or produce prices. This difference is the responsibility of the government budget. Many oil producing countries, on the other hand, not sold oil products below cost, but lower than they would get if they sold the oil prices in international markets. In some countries, this opportunity cost is considerable, and the situation mainly benefits the rich who consume more oil than the poor.

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WORLD ECONOMY

TO CUT PROTECTION OF WORKERS AWAY REDOUNDS TO MAJOR GROWTH

Source: OIT

hen global financial crisis reached its most critical point in 2008, some countries, particularly in Europe, introduced legislative changes that reduced the level of protection of workers. In the context of restricted fiscal space and rising unemployment, these countries argued that such changes would help stimulate economic growth and job creation; However, a recent ILO study reveals a relationship between less protection for workers and increased growth.

Did it produce the desired results? The recent report of ILO Social reference and employment prospects in the world 2015: Employment in full mutation, which analyzes data from 63 countries, including the most advanced economies and several countries in Africa, Asia and Latin America, over the last 20 years, notes that decline in worker protection doesn’t stimulate job growth. The research results show that relative strength of labor law in one country has no effect on rates of employment and unemployment, neither positive nor negative. This conclusion is consistent across all econometric data in both advanced countries and emerging and developing. “The report clearly shows that, if well developed, regulation of work can offer protection for workers

40.

without jeopardizing job creation,” said Steven Jobin, one of report’s authors. “In fact, a number of emerging and developing countries increased the protection of workers without affecting job creation,” he added. The conception of policies is crucial. According to report, the question is how to conceive a regulation based on the economic situation and labor market of a particular country. The too liberal regulations may be so counterproductive for economic growth, job creation, equality and social cohesion as too rigid. Similarly, an effective judicial system is essential to ensure that labor legislation is effectively applied. In addition, policies adopted balanced labor law are more likely to produce results when social dialogue between government, employers and workers to find a way forward. “Our report concludes that reducing worker protection doesn’t reduce unemployment. Indeed, it shows that ill-conceived changes that weaken legislation on employment protection tend to be counterproductive, both short and long term. Finding the perfect balance depends on specific country and the state of economic cycle, which is why it is essential that organizations of employers and workers to participate in the reform process structural features, “concluded Steven Tobin. L&E

WORLD ECONOMY

PANAMA IN THE EYES OF INTERNATIONAL MONETARY FUND Anna Marissa AdmadĂŠ - Abogada anna.admade@rbc.com.pa

A look at Depth Evaluation Report of February 2014, prepared by the International Monetary Fund (IMF), based on Recommendations of the Financial Action Task Force (FATF) to combat money laundering and terrorist financing, reveals main vulnerabilities of our financial and legal system.

ABOUT THE COUNTRY REPORT In 2012, the International Monetary Fund (IMF) conducted a site inspection to Panama, based on the 40 recommendations of 2003 and the 9 Special Recommendations against Terrorist Financing 2001 issued by the Financial Action Task Force (FATF). During this visit, evaluation team verified the institutional framework of action, relevant legislation and other regulatory systems to deter and punish money laundering and terrorist financing through financial institutions, non-financial subjects and professional setting the level of compliance of Panama.

risk. Also, its geographical position makes it a transit point for drug trafficking from South America. 2. Panama has criminalized money laundering and terrorist financing, but legal anti money laundering and combating financing of terrorism framework is not fully aligned with the FATF recommendations. Further notes that some legislation concerning the combating financing of terrorism are included in subsidiary instruments, however, appear to go beyond law and therefore are incompatible with legal principles established in the Constitution. This creates uncertainty as to their validity.

In his Depth Evaluation Report dated February 2014, the IMF listed a series of fin- 3. Panama has established a financial analysis unit as dings, the most noteworthy are the following: a center for receiving, analyzing and reporting of information relating to suspicious transactions, but its 1. Panama is vulnerable to money laundering from effectiveness is constrained by inadequate resources various sources including drug trafficking and other and access to information, including on legal persons. predicate offenses committed from abroad such as The report said that while law establishes reporfraud, financial crimes and prosecutors. ting obligations for a number of financial and non-financial institutions, doesnâ&#x20AC;&#x2122;t cover all actiAccording to report, Panama has an open and do- vities listed by the FATF, which deprives the UAF llarized economy and a system that offers a wide for obtaining important sources of information for range of financial and corporate services to fo- analysis and reporting of transactions possibly rereign countries, which puts us in a situation of high lated to money laundering and terrorist financing.

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ECONOMÍA MUNDIAL

4. In general, laws of confidentiality of financial institutions not unduly inhibit implementation of the FATF recommendations, however, confidentiality provisions and supervisory practices limit access to information on trusts operated by financial institutions and others acting as trustees.

ON THE PLAN OF ACTION During the last plenary session of the FATF, the entity recognized Panama’s commitment to implement an action plan to align national legislation with international standards. Among main actions undertaken are the following: 1. Adoption of Law 23 of 2015 and its regulations.

These limitations also restrict effectiAfter three broad debates in the National Assembly and ve interagency cooperation, internatiohaving undergone more than 40 amendments to the orinal cooperation and information exchange. ginal draft Law 23 of April 27, 2015 which adopts measu5. Panama incorporates its legal persons in the Public Registry but information on ownership and control of these entities is not generally available, including that relating to public limited companies whose capital is composed of bearer shares. The UAF and supervisory bodies don’t have access to information held by the resident agents. These limitations negatively affect capacity of these local authorities to obtain information effectively and efficiently, and track and locate assets held by legal persons. The weaknesses are exacerbated when documentation rests abroad.

res to prevent money laundering, terrorist financing and financing is promulgated the proliferation of weapons of mass destruction, and other provisions, aimed at establishing a regulatory framework for establishment of due diligence measures for protection and control of financial system and other sectors of national economy. Law 23 of 2015 introduces new topics such as:

• Regulation of non-financial subjects In the understanding of vulnerability that characterizes non-financial sectors and some professional activities on their relationship with the banking and financial system, and addressing Recommendations As a result of these and other findings, the IMF found No. 22 and No. 23 of the FATF, the Act introduces a new catalog of obligors among which we can mention:

that Panama met only one of the 40 FATF recommendations on combating money laundering, therefore, this body at its last plenary meeting concluded in Paris, France, June 26, 2015, decides to include Panama, within the gray list, ie list of countries and/ or territories that have strategic deficiencies in the system implemented to combat money laundering and terrorist financing, and have developed an action plan with the FATF, including Afghanistan, Angola, Bosnia-Herzegovina, Ecuador, Guyana, Laos, Papua New Guinea, Sudan, Syria, Uganda and Yemen. However, what our country has initiated actions to address deficiencies raised by the IMF and therefore leave the gray list of the FATF?

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• Insurers and reinsurers. • Casinos. • Cooperatives. • Leasing and factoring. • Realtors. • Lawyers (including acting as resident agent). • Certified Public Accountants. • Notaries. • Pawnshops, remittances and exchange. • Dealers in precious metals and precious stones. This legislation also incorporates the figure of Mayor Subjects Supervision and Regulation of Non-Financial, as administrative character entity, responsible for ensuring compliance with regulations that should

ECONOMÍA MUNDIAL meet the required non-financial subjects and profes- regime until 2018, signaled a new entry into force on May sional activities undertaken by subject to supervision. 4, 2015 and forcing companies to register their bearer sha• Due diligence measures with EBR res to an authorized custodian, with deadline December 31, Attending the FATF Recommendation No. 1, the Act in- 2015, thus allowing to know the final beneficiary of society. troduces due diligence measures to risk-based approach, Considering the above, and in context of recent statements which aims at the identification, assessment and un- by the President of the Republic of Ecuador, Rafael Correa, derstanding of risks for adoption of mitigation measu- regarding tax system of our country, new doubts arise we... res, thereby providing a basis sensitive to the implementation of these measures as level of risk of the activity. Panama does have the characteristics of a tax haven? What impact would this categorization in • Link with UAF the action plan to leave the gray list of the FATF? The Act introduces obligation to establish regulated According to the Organization for Economic Cooperation subjects a person to serve as a direct link to the Finan- and Development (OECD), there are four key factors that cial Analysis Unit (UAF), for purposes of the appli- allow us to determine whether a jurisdiction is a tax haven: cation of preventive measures and proper monitoring, analysis and monitoring of operations carried 1. If the jurisdiction doesn’t impose taxes or these are out for detection and reporting of suspicious transac- only nominal. tions, while extending the obligation to report suspicious transactions to non-financial subjects and activi- 2. If there is lack of transparency. ties subject to supervision by professional operations. 3. If laws or administrative practices don’t allow the • Ongoing training exchange of information for tax purposes with other Aware of the importance of having trained personnel, countries in relation to taxpayers who benefit from low the Act establishes obligation to train employees in the taxes. following areas: customer and suppliers; receiving money and processing, design of products and services, complian- 4. If you allow non-residents to benefit from tax cuts, ce, risk, human resources, technology and internal audit. even if not actually develop an activity in the country. The truth is that Panama is not a paper economy. Our fi2. Amendment of the criminal law, new predicate offen- nancial and legal systems, model-based services have proses ved successful results for the country, positioning us as one With approval of Law 10 of March 31, 2015 and Law of the most attractive for business endeavor jurisdictions. 34 of May 8, 2015 amending and supplementing Cri- In addition to this, both authorities and represenminal Code articles and dictate other provisions, tatives of regulated business sectors have demonscompletes the process of incorporation of new pre- trated their high level of responsibility and comdicate offenses to criminal legislation, the introduc- mitment to implementation of these measures, and tion crimes such as smuggling and customs fraud. accordingly, the action plan to exit the gray list FATF. 3. Act 47 of bearer shares: We have a long and arduous way to go. Law 18 of April 23, 2015 amending Law 47 of August 6, 2013 to adopt a scheme for the custody of bearer shares reformulated initial time-scales provided whose transitional regime delayed the effective implementation of this new

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L&E

EDUCATIONAL CAPSULE STUDENT MANIFESTATIONS LEAVE PRECEDENTS IN OUR COUNTRY AND IN THE EDUCATION Alexander Canto - Maestro de educación

primaria/Colaborador del Dpto. de Archivo archivo2@rbc.com.pa

After the events of July 7 where National Institute college students staged a protest unacceptable, that left three people injured severely-two students and a teacher -. It emphasizes once again that education begins at home. These actions reflect on those students, lack of values and respect for others.

the 12 detainees, four are adults and other minors, was the statement by the prosecutor in different media. As a security measure, after 20 days about the events at the National Institute MEDUCA decided to resume classes, but under security measures to ensure welfare of students, faculty and staff, as well as strengthening staff who would be responsible for inspections of students, just as the institution would have police presence specializing in minors. The decision by the Ministry of Education having the presence of the Minors police was good, because it helped ensure safety and welfare of entire educational community campus.

In different media, it was announced that “Eagles Nest” students staged a demonstration, but not peaceful, which became vandalism, for acts committed by a certain group of students not using masks be identified, those who caused damage to private property and attempted to life and physical integrity of the attacked. With reference to aforementioned facts, it is inadmissible: the attitude exerted by this group of students from Such is the case of PE teacher, Arturo Adames, who has the National Institute as to conduct a demonstration, spent years working in that school, which exploded in it is not necessary to reach as many ends, using viohis face and part of his body a Molotov home-type coc- lence. They have no right to threaten lives of others, as ktail, causing first degree burns. For two students as- they did with Professor Adames and two students, why saulted during the demonstration is also mentioned. should be responsible for their actions before the law. After what happened, doors of the National Institute were closed. Similarly campus teachers announced that classes Therefore, the MEDUCA is required to put a definite stop wouldn’t resume until the Ministry of Education (MEDU- to all students engaged in this type of misconduct, as well as CA) ensure their safety and students within the institution. parents should pay more attention to their children, because education begins at home, and family is the foundation In this regard, the Minister of Education, Marcela Paredes, to promote values that must be acquired gradually and it proceeded to file a formal complaint with the Prosecutor is clear that these students lacked them, seeing reflected in of Adolescence, why an official investigation was opened. their behavior. This task should be reinforced by teachers, Based on the above, the statements released by the Attor- which should promote and instill values in their students, ney General’s Office, Kenya Porcell, there are 12 pre- provide different workshops on the importance of these vatrial detainees who are being prosecuted for allegedly lues. Likewise should be aware of social risk students and committing various crimes, acts of violence. Among pay more attention, look for different ways to help improve

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CÁPSULA EDUCATIVA the behavior of the same. Remember that it is not only responsibility of the education authorities help to cope with these situations should be in conjunction with teachers, parents and MEDUCA, in order to find concrete solutions to this problem and prevent further violent acts giving.

Sanchez de La Chorrera, who held a march to express the poor conditions of school infrastructure are; demanding answer as soon as possible, because victims are students, since the school conditions aren’t suitable to carry out the teaching-learning process in the best way possible.

I consider it essential that the MEDUCA together with teachers, inspectors and administrative personnel of the institution, and with the support of parents, implement a process of discipline for all students, develop an internal procedure that seeks to determine disciplinary relevance of educational activities, where it was continuously monitored for short and long term, and establish clear and precise, with a strong hand the rules to be followed within school, and therefore anyone who doesn’t comply with student requirements, or disturb public order violently, should be punished strictly and copy to that address until the final consequences of actions committed against the institution, students, teachers and end of the day, too the country.

MEDUCA should put more quickly to resolve complaints lodged by various colleges and schools, makers as to force paralyze the classes, school calendar to be affected and the program thus established classes annually. This process must also be part students, who are required to give the proper use of facilities of the institution; teachers and be responsible for that requirement is met and thus contribute to conserving resources provided for education as it should be.

Moreover and in another no less important issue, we note that infrastructure problems persist in several schools nationwide, as is the case of José Daniel Crespo College of Chitre, Herrera Province, where students took to the streets to I demand that the authorities of the Ministry of Education improvements in structures of the institution, because they are damaged, so that teachers declared a work stoppage until the MEDUCA give a concrete solution to the problem. It is also the case of the school Pedro Pablo

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Education is necessary to achieve better levels of intellectual, personal, economic growth and social welfare, expanding the opportunities for growth in young people, as well as enriching culture, spirit, values and everything that defines us as human beings, which we are losing gradually with the passage of time, given precariousness of education. Hopefully they can be corrected in time all these deficiencies and raise the level of education for our children, future professionals and not let our educational system collapse. The education values begins at home and in school should strengthen in tandem with integral education. L&E

Foto: Telemetro

FASHION

Nadia Chang - Strada Eleganza rbcweb@rbc.com.pa

RECOMMENDATIONS TO PROTECT OURSELVES FROM RAIN WITH VERY MUCH IN THE RAINY SEASON

he rainy season may seem extremely difficult, especially when in Panama all year we somehow summer weather, where there is sunshine and encourages us to seek activities and dress in colors of summer. While this year faced the most severe drought of last hundred years, still it rains occasionally, and in some cases, with intensity of tropical typical winter, which would make some basic recommendations to protect and care for our clothing. You always have a jacket during rainy season, try to be a waterproof, breathable and thick enough so that water doesn’t eventually penetrate. One of these jackets will help keep your body temperature regulated and dry your clothes, something very important in this season weather so changeable, so you don’t get sick.

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Style

Waterproof jackets

or jackets cycling are recommended as they meet this purpose and can save them your phone or keys. If you are more practical, you can use a thick raincoat and repellent fabric. Plastic bags. You may not believe me, but you must bring with you, because you could save, technological articles, or other valuable objects that may get wet because of a sudden downpour. Known zip lock bags are great for this purpose. If you need to protect large or numerous objects, you can use dry bags, special for this purpose, but if you can’t get them with a plastic bag in good condition enough.

MODA

Boots or waterproof shoes

Use a protective or water repellent leather for your valuables and other material that can easily ruin. It is cheaper than having to replace your backpack, shoes, etc. Use a repellent cloth cap. It will protect your hair from getting wet and if you wear glasses, too. Damp hair for a long time can provoke a cold, so avoid it, especially outdoors. If you are using much your car in the rain, you can anticipate your activities. Driving in the rain takes longer. Always remember to turn on the lights so that they can see more easily, especially in very dense rain, and prevents long handle you can’t see the road under water on a road. As an additional measure, make sure your tires and other auto parts are in good condition.

and winter, these are those with thick soles, since thin soles must leave for the summer or for days or times when you’re absolutely sure it’s not going to rain. Walking with wet feet is not only uncomfortable, it can affect your health. Furthermore, this type of shoes repel mud and other substances, so that you can get rid of your rainy trace more easily. The best part is that these types of shoes are fashion, no one will think you’re an exaggerated by them. And if you think it doesn’t matter; what matters is not wet. Folding umbrella, always keep in mind that a good one is 16 rods, look for one that is sufficiently strong and avoid use during a thunderstorm, because the metal terminals pointed attract static electricity.

Dry clothing It is recommended that you don’t monks, but if it happened, these clothes reduces the time be cold to the touch of your wet clothes. Avoid grass and dirt roads. With the rain is not likely to dry before the next rain fall therefore whenever possible, passes through cement floor in rainy season. Try not to go in times of rain, although sometimes surprise us in the street, but in so far as is possible, if the rain is very strong or there are thunderstorms, go by car, on foot can be very dangerous. Find a way to meet your obligations (tasks, payments, etc.) remotely and looking indoor sports that if you like exercising.

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In winter, stay aware of weather forecasts. This will make it easy to plan your day according to the constraints of climate, as well as use the appropriate outfit to be consistent climate. Always be prepared, when least expected rain can surprise, and although no transport your team suggest that anti-rain everywhere, yes I recommend always consider bringing a coat or umbrella in this season. And keep this in mind... it is very sophisticated but it is raining, the additional layer of protective clothing is beautiful, elegant and in good condition. I hope my recommendations will be very useful to face the weather !!! L&E

SPORTS CAPSULE

THE CORRUPT CONCACAF

Albin Rodríguez albin.rodriguez@rbc.com.pa

Panama reacted with outrage and condemnation of the “insulting” arbitration of American Mark Geiger, who made Mexico win 2-1 with two controversial penalties, and ordered the removal of the Arbitration Commission of the CONCACAF.

the final whistle sending it to overtime when it appeared that Panama would play the final against Jamaica. CONCACAF fined $15,000 Panama as a result of the turmoil that was experienced during the semifinal match of the Gold Cup with Mexico in the arbitration work gave the victory to the Aztec selection. The Panamanian Soccer Federation (FEPAFUT), “by in- As a campaign of outrage at the attitude of CONsulting and embarrassing to the arbitration has been CACAF, the mainstream media of Panama decigiven during the Gold Cup, specifically against the ded to unite to collect the money and pay the fine. team of Panama, to promote, vulgar and shameless At various points in the city of Panama the collection was deway the Mexican selection requires the complete re- veloped. Celebrity faces took to the streets to collect donations moval of members of the Arbitration Commission of of Panamanians, who since last week had been promoted on the CONCACAF,” said the organization in a statement. social networks that payment would CONCACAF via cents. The FEPAFUT, chaired by Peter Chaluja adds that since that Wednesday’s semifinal match against Mexico, proved to be the straw that broke the glass of a repetitive situation that occurred since first game of our team during the group stage A new competition format will be approved by the fedeand which continued during following dates we saw action. rations of CONCACAF and then by FIFA with a view to qualifying for Russia 2018 Panama touching to begin its We demand to give a prompt response to this request be- journey in November 2015 to choose one of the three walks cause it debunks all the effort and sacrifice made every one and a half that coof our players to wear the national shirt, the work of our rrespond to our area. coaching staff, as well as planning to dirigencial level, says. Judgment “was evident and everyone is witness to this”, that According to the new the Panamanian team was superior to Mexico on the field. proposed format where CONCACAF FIFA Chaluja noted that Panama was much higher than Mexi- rankings published in co in the court so that with the clear intention to harm August 2014 (Panama’s our eleventh, the referee of the match became principal fifth of the area), Panato expel unjustifiably our striker Luis Tejada and invent ma tear their participaa criminal character totally absent just a minute from tion in the fourth round

2018 ROAD TO RUSSIA

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CÁPSULA DEPORTIVA on November 7, 2015 which will run until September 6, Triathlon: Our representative, Bi2016 , considering that the first six-ranked CONCACAF lly Gordon, couldn’t finish the competition. join the competition with six qualifiers of the third round. - Weightlifting: In this discipline we had two reThese 12 teams are divided into three groups of four teams presentatives: Ariel Batista and Rocio Navarro. playing a square playing dueling back and forth between Ariel Batista finished in the 10th position all selections. Moving the first and second in each group. with 265 points, while Rocio Navarro finisHence, a hexagonal would maintain its format in a tour- hed in 8th position with a total of 197 points. nament between the six teams ranked the fourth round where they play ‘all against all’ will be held. The top three - Swimming: In swimming we were representeams qualify for the World Cup and the fourth team ted by Edgar Crespo and Maria Far. Crespo reaplays in the Intercontinental elimination or repechage. ched the final of the 100m breaststroke, but finished the 8th with a time of 1:01.88 minutes. Maria Far, meanwhile, it reached the final of the 200m butterfly and 400 medley. In the first, he fiTORONTO 2015 PAN AMERICAN nished the 6th with a time of 2: 18.75 minutes, while in the second, ended the 4th with 5: 06.36 minutes.

GAMES

- Wrestling: The fight came our first medal: Alvis AlGymnastics: Kevin Amado Espinosa and Isabella mond won the silver medal in Greco-Roman wrestling. were our representatives in this discipline, who deYohar Muñoz wasn’t so lucky in the freestyle, because in 1st monstrated tenacity and discipline. Isaround dropped Jebella made a huge reached the final finisvon Balfour 10-0. hing in 18th position with a total of 48,500 points. He showed great command in the - Modern Penbars, but as in the sport, a moment can retathlon: Mispresent an adverse outcome of the athlete. sael Aguilar and Jose Guitian reMeanwhile, Kevin Espinoza didn’t pass presented us in preliminary round by finishing in 33rd this discipline. place with a total of 68,100 points. Joseph Guitian ended at position Both athletes have given many years of 21 with 463 points, while Missael ended 27 378 points. its short life and sacrifice to reach powers of this mag- Taekwondo: In Taekwondo, our Olympic promise, Caronitude, so what must prevail is the growth we have lena Carstens 1/8 fell 3-2 against Argentina Celina Proffen. had and hard to continue to prepare for new chaVictor Gonzalez fell to 14-1 against llenges. It has gained experience. Congratulations. the Brazilian 1/8 Venilton Torres. - Soccer: The U-22 team was well attended, despite not get- Fencing: Elieen Grench reached the round of 8, ting a medal. They came second in their group after beating which fell 15-8 against Colombian Alejandra Benitez. Peru 2-1, 0-0 and 3-3 draw with Canada and Brazil respectively. In semifinals and they fell 2-1 to Mexico in the match - Bowling: Carlos Olmos and Juan Carlos Narvaez for the bronze medal lost 3-1 in extra time against Brazil. participated in this discipline (singles and doubles).

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SPORTS CAPSULE Juan Narvaez ended 15 single with 2398 points while Olmos finished 20 with 2305 points. In men’s doubles, 4709 ended 11 points. - Athletics: Athletics discipline was more Panamanian representatives. Yvette Lewis in the 100 meter hurdles, Andrea Ferris in the 3000 and 1500 meters steeplechase, Aixa Middleton in Discus Throw, High Jump Kashani Rios, Rolanda Bell 3000 meter steeplechase, and our medalist Alonso Edward in the 200 meters They were those who represented us in athletics. Rolanda Bell couldn’t finish her race 3000 meter steeplechase. Kashani Rios ended in the 16th position in High Jump with a leap of 1.70 meters. Aixa Middleton finished in position 9 in discus with a throw of 50.62 meters. Andrea Ferris was the 9th in the 3000 meter steeplechase with a time of 10:40.10 minutes. In the 1500 meters he finished the 8th with 4:23.96 minutes. Yvette Lewis reached the final of the 100 meters hurdles, but finished last with a time of 13.29 seconds.

Foto: Telemetro

Alonso Edward reached the final of the 200 meter dash where he won the bronze medal. Edward had time of 19.90 seconds, as Jamaican Rasheed Dwyer. The silver medal Jamaican took through the photo shoot. That concludes participation of Panamanians in Toronto 2015 Pan American Games 2 medals seems little, but the sacrifice that these athletes have to do but little support given to them is to stand. Not everyone can compete as they did. L&E

Foto: rpc

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PANAMÁ

CULTURAL CAPSULE

Mariela de Sanjur mariela.sanjur@rbc.com.pa

Activities for August: Theatres

Fairs and Festivals

• Inida Theatre: A Normal Heart 7 to August 16. • Inida Theatre: BANG, BANG 20 to August 22. • Circle Theater: Rumors from 6 to August 31. • Teatro La Station: COCK until 9 August. • Anayansi-Atlapa Theatre: The Illusionist from 26 to 30 August. • Teatro La Huaca: Humor That is Love, August 7. • Teatro La Quadra: “HYPOCHONDRIACS August 20 to September 27. • Teatro La Quadra: Descarriados from 11 to 30 August. • Teatro La Quadra: ImproRumble until 2 August. • Teatro La Quadra: The art of being unfaithful to 9 August. • ABA Theatre: My wife is a man from August 6 to September 13. • ABA Theatre: Naked until 2 August. • ABA Theatre: Mario and Luigi # 2. • Balboa Theatre: The Embassy of Japan presents the Theatre of Shadows: KAGEBOUSHI. Saturday, August 1 at 1:30 pm, free admission. • The Restaurant Show 28 to August 30 ATLAPA.

• National Craft Fair July 29 to August 2 in ATLAPA. • Fair Santa Monica in Cocle, show Balloon debuts: Saturday 22 and Sunday August 23, specifically at entrance of the village of El Chirú, on the grounds of Hacienda Santa Monica, which will entry cost $ 1. • The 4th Centralamerica Percussion Festival, from 20 to 22 August City of Knowledge and Casco Antiguo. • Golden Frog Festival-El Valle de Anton August 13. • International Book Fair 18 to 23 August Atlapa Convention Center. • EDUCATE Panama 2015.11 and 12 August in ATLAPA. • Panama Gastronomic 28 to 30 August in ATLAPA. • Wine & Beer Festival 2015 Panama, 6 and 7 August at the Hilton Hotel • Panama Wedding Expo 2015, 8 and 9 August, Panama Hotel, Convention Center Vasco Nunez de Balboa.

Concerts and performances • ANC Symphony Orchestra/Berlin (Panama-EU) Monday August 17, National Theatre, presented by the National Concert Association. • Annual Catholic event on 08 August in the Anayansi Atlapa Theatre, where the Reverend Father Alberto Line-

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CÁPSULA CULTURAL ro and Fray Nelson Medina will be presented.

• Livestock Day August 28.

• Caribbean Festival 2015 Figali Convention Center August 15.

• St. Augustine August 28.

• Howard Gospel Choir, presented by the US embassy, from 11 to 14 August. • Height concert, August 20 at the Roberto Duran Arena. • First International Meeting of Oral Narration: For I tell you, from 18 to 23 August, ATLAPA.

Seminars, conferences, lectures, courses and Expo • Floral seminar ‘Creating environments’ that will take place on August 27, 2015 at the Sheraton hotel with international designer Mauricio Castañeda. • Change Management Conference, August 26 at the Holiday Inn Express.

Activities and festivities • Lawyer Day August 9. • Assumption August 15. • Old Panama City Foundation August 15 (496 years). • Panama Canal opening August 15 (101 years).

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• Archdiocesan Campaign ends. L&E

RBC Abogados

Rivera, BolĂvar y CastaĂąedas

@rbc_abogados

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