Contributors to this edition José Javier Rivera Rafael Fernández Lara Lucila Rivas Giovana Miranda Lidia Domínguez Albin Rodríguez Nadia Chang Mariela de Sanjur
CONSEJO EDITORIAL José Javier Rivera
Giovana del C. Miranda Fotografía - Mariela De Sedas de Sanjur Diseño y Portada: Virginia Medina
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CONTENT Editorial 6. GAMING MACHINES AND HALLS: A CANCER TO THE POOR Invited Writer 8. JUAN CARLOS VARELA: A PRESIDENT WITH MAJOR CHALLENGES Norms of Interest 10. LIMITED LIABILITY MICROENTERPRISE IS REGULATED 11. SOCIEDAD DE INVERSION DE CAPITAL DE RIESGO 12. PERFORMANCE AND LABOR RIGHTS OF PUBLIC SERVANTS SHALL BE PAID AT THE TIME OF TERMINATION OF EMPLOYMENT
Consult, Doctrine y Jurisprudence 13. SURPRISE JUDGMENT DISCLAIMER REQUESTED ATTORNEY GENERAL OF THE REPUBLIC IN CASE OF MARIA DEL PILAR HURTADO
Polítics 16. THE POLITICAL BEING Panamanian Economy 18. COMMENT ON NATIONAL URBAN CONSUMER PRICE INDEX: MAY 2014 19. MONTHLY ECONOMIC INDICATORS: JANUARY - APRIL 2013-14 COMMENTS
CONTENT 22. NEW PACIFIC LOCKS REACH 2 MILLION CUBIC METERS OF BRAND CONCRETE World Economy 23. WORLD BANK LOW FORECASTS FOR WORLD ECONOMIC OUTLOOK AND URGES DEVELOPING A BOOST YOUR INTERNAL REFORM
26. LATIN AMERICA AND THE CARIBBEAN RECEIVED 184,920 MILLION DOLLARS OF FOREIGN DIRECT INVESTMENT IN 2013
RBC in ANPANAMÁ Sports Capsule 29. UN MUNDIAL DE SORPRESAS Cultural Capsule 31. ACTIVITIES FOR THE MONTH OF JUNE AND JULY Tips for good dress 32. HOW TO CHOOSE THE NECK OF OUR SHIRTS
GAMING MACHINES AND HALLS: A CANCER TO THE POOR
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José Javier Rivera - Abogado jjrivera@rbc.com.pa
ince 2009 Martinelli’s government launched a strategy to sow all across the country, but focused on neighborhoods and districts of provinces of Panama and Colon, playrooms Type C are those that offer prizes a couple hundred dollars and then fathered growth of sophisticated game rooms Type A, known popularly as “casinos”. Having the support of Ministry of Economy and Finance and a network in Gaming Control Board, which also involved members who have profited handsomely indiscriminate product licensing to install these machines type C in neighborhoods, shopping malls, entertainment places as pubs and bars, with bets seem paltry one penny on, complemented by promotion of alcoholic beverages and food rations at negligible prices, which mask the user to take the gambling addiction as gambling and scientifically known popularly as “chinguia”. National newspapers have revealed that thousands of retirees, teachers, college students, housewives, longshoremen and construction, commercial bank employees and service companies, billions annually leave their 6. Legislación y Economía - Junio 2014
money well been in slot machines Type C and Type A. What is absurd is that State itself, starting with the President of the Republic, Minister of Finance, who is president of Games Control Board and other staff who provide services in this state, have been direct promoters of this state of things, because there are thousands of Type C slot machines that operate throughout the country and are twenty machine rooms Type A also dealing with thousands of machines both in Panama City, as in each of the districts and towns in the country. Places like San Miguelito, Los Andes, Albrook, Chorrera, Coronado, Penonome, Chitre, Las Tablas, David, Colon; among others, each have two, three or four of these pseudo casinos that are causing misery and choking people and families, resulting in liquidation of their own goods in pawn to keep this pernicious vice. In 2012, by an Act fathered by Minister Frank De Lima and his deputy Mahesh Kemlani, and with participation of the Secretary of the Board Giselle Brea and ANIP director, Luis Cucalón, being present and chaired by Ricardo Valencia, Finance Committee of
the Assembly allowed a modification was introduced in the contributions that should make concession holders machine Type A to pay less, then these businesses benefited, in October 2013 giving the company & Gaming Services of Panama, S.A., a twenty-year extension to contract to continue operating the business. We have noted with concern that President-elect Juan Carlos Varela hasn’t ruled on this issue machines Type C and Type A, although this business produces misery to the Panamanian population and has a perverse effect on the economic capacity of many families, including beneficiaries of the plans as Hundred at Seventy, Universal Scholarship, Guardian Angel, and Opportunity Network, among others. If we take into account the amount of more than a half billion dollars spent annually in casinos and arcades in the Republic of Panama, in which Asians and other nationalities include entrepreneurs, we have to conclude that it’s a problem that has bottomed and should stand as it is nothing but a cancer to the poor, and therefore, is manifest urgency one stroke eliminate this financial hemorrhage for lower-income Panamanians. This topic is equivalent to reduction of food prices as part of the basic basket importance because for many families and individuals, more than fifty-eight dollars a month are spent on these games rooms. The Minister of Economy and Finance Frank de Lima has a huge responsibility in everything that happened around playrooms Type C and Type A, as well as Ricardo Martinelli that counter to national interests reduced contributions from owners these playrooms and allowed their proliferation across the country to bring this chaotic situation. We hope President Varela and Minister Dulcidio De La Guardia take firm action in this matter. Dawn and see.
7. Legislación y Economía - Junio 2014
JUAN CARLOS VARELA:
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A PRESIDENT WITH MAJOR CHALLENGES
espite economic growth in recent years our country has reached a level of Latin America, to new president of Panama, Juan Carlos Varela Rodríguez, winner with 39% acceptance of Panamanians last May 6, 2014 , who will rule Panama for next five years 2014-2018, receive their credentials and presidential sash on July 1, 2014, is a challenge. There is talk that will take office with a country in full economic boom, with 8.4% growth and investment of 15,000 million dollars in works in last five years. But the other hand, his work as a new president is tainted by endless scandals legacy of past administration of Ricardo Martinelli Berrocal including applied research on the Electoral Attorney like National Assistance Program PAN resources, funds amounting several million dollars, famous addendums that the government of President Martinelli has given during his tenure to large projects with unjustified cost overruns; among which is the Metro, with an initial cost was $ 1.446 million, but ultimately cost the Panamanian more than $ 2 billion. The Panama-Colon Highway, which increased up to 300%, Tocumen Airport, the initial cost would be $ 649 million and that currently carries an addendum to another $ 200 million, hospitals and schools are also such cases. Ricardo Martinelli leaves the new president Varela a heavy debt of about about $ 17 billion, not counting several contracts worth millions of socalled “turnkey” and other works tendered by billions.
Lidia Domínguez lidia.dominguez@rbc.com.pa
makes a fractional bed between 11 and 14 seats out of a total of 71, according to projections, forcing to negotiate with other political forces in order to boost its focus on social programs and anti-corruption agenda. Clearly, the new president awaits an arduous task, as extremely important issues in social, political and economic matters, administration of justice, security and others. Although receives large works inherited from previous government, poverty and marginalization remain major problems besetting Panamanian population. According to the Comptroller, between 1997 and 2012 inequality has increased at least three times. Thousands don’t have clean water or decent housing or no access to basic health services, education and transport and electricity rationing, despite having income of a maritime Canal through which 5% of world trade. According to surveys, inflation, of around 5% per year, is the main concern of the Panamanians, who saw price of basic food basket increased by 44% in last decade. The challenge of Juan Carlos Varela is to reduce social inequalities and serve nearly 30% of the population of 3.7 million people that is poor.
Another very important factor is the increase in crime, which is being reflected in indicators such as a greater number of assaults and homicides. This fully appendix of current Executive which rules out full transparency and promotes factors such as corruption Supreme Court adds. Protect water sources, forests and wetlands are other commitments to fulfill. Given the current Another important aspect is that new president as- state of natural resources and the need to achieve sussumes his new role as a member of Panamanian Par- tainable human development levels, is expected to be ty in alliance with the People’s Party today. His arrival one of the major challenges facing this administration. 8. Legislación y Economía - Junio 2014
Another mission that next president should take fiscal discipline is to maintain economic growth. According to economists, next government will not “borrow as much” as the outgoing and must readjust their spending to meet social demands of the country, over 3.5 million inhabitants. The promise of establishing an emergency price controls, specifically 22 products of the basic family basket, with the intention of lowering consumer products more among Panamanians such as rice, beans and meat is also a promise that Panamanian people expected to take place at the earliest. No exception to this improve the irrigation system in the country to enhance national agricultural production from 20% to 40%. President-elect Varela should know that the people have given a mandate for five years, but not a blank check to do whatever he wants, his campaign promises were many and the people who put their faith in a candidate that clearly inspired change and cleaned up this country expects each of its promises are fulfilled, since it is the same promises that for years have been waiting on track to have a country where laws are respected, give full enjoyment of guarantees that the rights of citizens are respected, as well as a climate of respect, honesty and transparency that all Panamanians crave is given. You must surround yourself with people rather than professional politician or millionaire who made donations to his campaign, since politics and lust for power are called to cloud the path of those who hold public office cronyism and this is a big mistake that people not be tolerated. We must stop the rancor and revenge aside, but that doesn’t make proper investigations to those incurred in dishonest practices to be investigated and punished and so Panamanian people can recover confidence in administration of justice. It’s a long list would be endless to enumerate, we can only remind assumed the Presidency on a key economic development of Panama and time to keep that pace, while ensuring opportunities for all Panamanians, especially for those who are not receive the benefits generated by the country’s wealth, with this you can make a difference. L&E
9. Legislación y Economía - Junio 2014
‘‘
President-elect Varela should know that the people have given a mandate for five years, but not a blank check to do whatever he wants
LIMITED LIABILITY MICROENTERPRISE IS REGULATED
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n our last edition of January 2014 is a summary of Act 132 of 31 December 2013 creating Limited Liability Microenterprise and provides incentives for the inclusion of informal sector in formalized economy, establishing it would correspond the executive regulations of the law
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
recorded in the Public Registry shall have legal personality.
With respect to single window states that the purpose of it will be to process expeditiously and efficiently the information necessary for their creation, registration, modification, transformation, dissolution and any Within this context, we have that was approved by Exe- other procedure involving authorities and institutions. cutive Decree No. 157 of June 11, 2014 by which the Ministry of Commerce and Industries regulates Law 132 In case the income statement of the LLM exceeding before developing among other topics discussed the Ge- $150,000.00 for two consecutive years shall be dissolved neral Provisions; Sign Limited Liability Microenterprise; or transformed into other legal entity, in which case it Single Window; Transformation and Dissolution; Instru- shall cease to receive the benefits offered by being a LLM. ments of Promotion; Exemptions and Final Provisions. Decree provides that regulations will be reviewed every In the general provisions, terms, definitions and acronyms two years by the Authority, after making an assessment of that will be used in the regulation, such as AIG terms, ANIP, the lessons learned from the management period in order Proprietary Rights and Business Registration develop. to suit the current needs and achieve constant update. L&E Furthermore, Limited Liability Microenterprise applicant shall make a sworn statement stating that is not own rights to another person, and that the information provided is accurate, which should be verified by the Authority. It should be noted that the LLM must use a company name, which may not be similar or other person previously entered, whether or not limited effect not cause confusion in their spelling, phonetic or translated into another language aspect. The name is accompanied by the initials LLM. As a corporation the LLM may engage in any kind of lawful civil or commercial activities as
10. Legislaci贸n y Econom铆a - Junio 2014
SOCIETY OF VENTURE CAPITAL INVESTMENT
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
he Superintendency of Securities issued Agreement 01-2014 May 28, 2014 and published in the Official Gazette 27,555 of June 12, 2014 which created the category Investment Company Venture Capital and other provisions.
its Board of Directors and disclosed in the prospectus. On the other hand, we have that the company will submit semiannual reports to the Superintendent, within two (2) days after the conclusion of each semester months.
Sign pointing to the Agreement which rules are adopted for activities of Investment Company Venture Capital, its investment policy and operation is regulated and registration for this type of company is established.
Similarly, the company will have to file interim financial statements endorsed by a certified public accountant within two (2) days after the conclusion of each semester and a report and financial statement audited by a certified public accountant within months three (3) months ended fiscal year.
Be understood as an Investment Company Securities that invest directly or indirectly at least eighty percent (80%) of its assets in equities issued by companies that at the time the investment is made, it will not have been recorded on a securities regulator or listed on a stock exchange in Panama or in a foreign jurisdiction. Excluded from the application of Agreement in reference to society Venture Capital Investment which is not required to register and society that even when is required to register invests less than 80% of its assets in equities issued by companies that time the investment is made, are not registered in a securities regulator or listed on a stock exchange in Panama or in a foreign jurisdiction. Regarding the minimum capital or initial corpus capital of the company, shall be fifty thousand dollars (U.S. $ 50,000.00) and which corresponds to the equity of shareholders of the company and is represented capital account actually paid to the balance sheet date; higher value obtained in the placement of shares of respective payment to the nominal value; declared reserves; gains or losses generated in prior years and generated profit or loss for the period. 1 Investments permitted. Investment policy for the two types is expected. 2. Incidental Investment and debt policy was agreed that the Company may borrow up to 100% of its assets, provided it has been approved by 11. Legislaci贸n y Econom铆a - Junio 2014
Agreement contemplates that the Company may provide assistance, advice or help in the release, development, expansion or restructuring of the companies they invest in, which may be provided in the form of appointing directors on its Board of Directors, appoint key executives, one external advisory committee or any other form agreed by the parties. Another issue that must comment is concerning that the company is registered and governed by this Agreement, shall either in his name or in their advertising material publicly announced as an investor. L&E
PERFORMANCE AND LABOR RIGHTS OF PUBLIC SERVANTS SHALL BE PAID AT THE TIME OF TERMINATION OF EMPLOYMENT
A
few days to presidential term expires Ricardo Martinelli Berrocal, Executive Body adopted the Executive Decree No. 52 of 26 June 2014, by which laws recognizing certain benefits to public servants seniority premiums are regulated and compensation for excused and unexcused resignation or dismissal, as well as the rate of job stability. Executive Decree No. 52 provides that public servants covered by the job security regime to dissociate from the public service by resignation, justified and unjustified dismissals will prepare a return for the payment of employee benefits and entitlements as rental expired or proportional, or proportional defeated thirteenth month and seniority premiums and compensation for wrongful dismissal in cases accordingly. Payment of such benefits shall be made on the date the termination becomes effective working relationship. Law 39 of 2013 which recognizes the payment of certain benefits and labor rights termination of employment was approved on June 11, 2013 and Law 127 of 2013 which confers stability regime of labor is approved in December 2013. L&E
12. Legislaci贸n y Econom铆a - Junio 2014
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
SURPRISE JUDGMENT DISCLAIMER REQUESTED ATTORNEY GENERAL OF THE REPUBLIC IN CASE OF MARIA DEL PILAR HURTADO Lucila Rivas - Abogada lucila.rivas@rbc.com.pa
When it was thought that Mrs. Maria del Pilar Hurtado leave the country following the judgment of the Plenum of the Supreme Court to declare unconstitutional the asylum granted to former director of DAS, we woke with the unexpected request for clarification of judgment requested by Attorney General’s Office, Ana Belfon. Besides the late response by Supreme Court, citizens legally touches us know what appropriate in this case, about current situations namely the defeat of the official Democratic Change, missing only five months culminating the period of the current Attorney General’s Office and the reappointment of Manuel Santos in Colombia; therefore believe that somehow these aspects affect the expressed decision.
IMPORTANT NOTES OF JUDGMENT Among the requirements are reflected in the judgment to grant an asylum applicant is precisely that justified it the asylum application, and must be based on reasons of a political persecution, for political offenses or related common crimes with political crimes.
berty are threatened by acts, threats and persecution by the authorities of another state, or even by persons or mobs that have escaped the control of the authorities.” Besides the above Decree Law No. 3 of 22 February 2008, in what appears to asylum in Article 23 states that: “Foreigners are under protection of the Republic of Panama, refugees, asylum seekers, stateless persons and persons under temporary humanitarian protection status who entered large-scale national territory or individual looking for temporary protection, pending return to their country of origin or resettlement in a third country. “ “The recognition of this condition shall be subject to the national legal system and international treaties ratified by the Republic of Panama.” Respect of Conventions and international law treaties that have been ratified by the Panamanian State asylum, express: … . . “ 7. Everyone has the right to seek and receive asylum in foreign territory in case of persecution for political offenses or related common political and according to the laws of each State and international conventions.”
In summary Judge Harley Mitchel indicated that: “diplomatic asylum is one that is required and granted an embassy or other place under its authority, but outside its territory by those who feel persecuted for reasons of political origin and territorial asylum, which is requested by any foreigner in another country in the respective government. Nevertheless, both are governed by the rules of inThe Mitchel magistrate to enter the analy- ternational law that the right of asylum develop only as a sis of the concept of asylum he said the following: condition that must prevail in the person requesting it or “MANUEL DIEZ DE VELASCO considered by law to required to be persecuted for political reasons or offenses. “ be understood Asylum” the protection that a state offers to persons who are not nationals and whose life and li- Substantiating warns that Executive Branch didn’t substanIn this case justification raised by the applicant was his great concern and fear for their personal safety and that request is considered reasonable by the Executive, as a form of collaboration with the policy requirements of the region and social stability, as express at the time.
13. Legislación y Economía - Junio 2014
tiate the granting of the status of asylee of Mrs. Hurtado on grounds of persecution of a political nature or for political offenses, a reference to requirements of social and political stability of region was made, which in his view proved to be an allusive consideration possible effects or consequences arise. As the Executive Order doesn’t fit the definition or spirit of the rule, to grant protection and less permanent. Among the most relevant asylums granted the Panamanian State is accorded to Mr. Raul Cedras in 1994 and this status was extended to his wife and children; reasons for granting asylum that were related to overthrow of elected president of Haiti, Jean Bertrand Aristide; also granted asylum in 1997 Mr. Abdala Bucaram and had political origins in Ecuadorians which demanded resignation and removal of unpopular measures considered.
REASONED VOTE Said the deputy magistrate Elijah Gabriel Fernandez, his concurring opinion by acknowledging that the decree by which asylum wasn’t granted properly informed. But shouldn’t be ignored that the asylee is being accused of common crimes related to political activities, where indeed affected figures today belong to the Colombian regime is in power were. It also warns that there is no uniform figure of asylum criteria, consider it necessary in this case should apply a general principle of “favor rei”, which means that you must apply the law that is most favorable to the interests of the accused. Notes that was due to consider the constitutionality of the act taking as elements the socio-political factors related to the case.
Finally plenary of the Supreme Court of Justice under OUR OPINION the presentation of Judge Harley Mitchell considered that no legal elements that would allow the issuance of Executive Order No. 301 of 2010 were found, which gran- The rules previously expressed clearly pose the reasons ted permanent asylum to Mrs. Maria Del Pilar Hurtado. may be granted asylum and justifications must carry not only the Panamanian government, but to all Member States the legal analysis at the time of granting political asylum, RESCUE OF VOTE ie legally justify its granting respecting the supremacy of constitutional norms and international conventions desigThey agreed with the approach and analy- ned to this end, and we see that is not enough discretionary sis of Judge Mitchell, his counterpart Ha- nor the basis of state sovereignty, since we are members rry Diaz, who saved his vote as follows: of an increasingly widespread international community. “That was granted asylum on the basis of Decree Law No. 3 of 22 February 2008, which states in Article 24 that the The truth is that despite what the decision was made four limit is one year and delegates to the Executive Branch, not years after the date on which it was granted asylum, makes the Supreme Court Justice the task of verifying whether clear that the court grant even for political reasons is not a disthe conditions for which it was granted are maintained, cretionary power of the incumbent president. The decision in order to validate the extension of the status of refugee.” is constitutional and the nature of the figure of asylum limits. He also noted that the provisions referred to by Judge Mitchell didn’t lie in the plane of constitutional, legal infringement but not part of the constitutionality block; coupled with the fact that there is no express constitutional provision that protects the figure of asylum.
Don’t misinterpret the concept to pursue to require; first being according to the dictionary: follow who flees with the intention of reach and the second claim, ask or look for something with diligence or care.
What we must not allow such state is the terriBased his dissenting opinion in the Convention on Te- tory to be used to protect individuals who are requirritorial Asylum of 1954 whose content mentions Judge red by their country of origin, for violating the laws Diaz, is to reaffirm the sovereign right of States to re- and abuse of power in his capacity as state officials. ceive on its territory to choosing. “Besides that wasn’t the purpose of Executive Order No. 301 of 19 Novem- The reasons for figure of asylum policies and must be strictly ber 2010, the enabling citizen of Colombian natio- subject to review if it is awarded each year in order to venality Maria del Pilar Hurtado ousting of competent rify whether conditions which created award have varied. jurisdiction to judge, but to provide humanitarian support to the Panamanian government requested.” In this case there has been an unexpected element is that 14. Legislación y Economía - Junio 2014
Attorney General’s Office through holder has asked Supreme Court to clarify the ruling, a situation that we believe is only an apparent attempt to justify the continuance of Mrs. Hurtado in our country, and try to delay her departure that the asylee is granted similar protection in another state, that surely will not be applying for early repatriation. Don’t forget that governments are transient and state is permanent. L&E
15. Legislación y Economía - Junio 2014
THE POLITICAL BEING
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week ago was involved in a fun gathering of friends, where we exchanged views on the subject of being a politician, political parties and related topics. The consensus of those present was that the image of political parties and politicians was damaged and needed to exalt the example of the few good politicians both in Panama and in other countries have had and still exist. This was considered necessary in order to, inter alia, strengthen the democratic system of government, although its many flaws, is still the best alternative governance for a country.
Rafael Fernández Lara rbcweb@rbc.com.pa
The systematic military campaign against politicians, heritage is still alive today in our country, aggravated by unthinking attitude of those who call themselves politicians but wasn’t, and mercilessly attack the good and conscientious politicians telling the nation.
It’s common to hear some Panamanians comment on political issues, criticizing political parties and their leaders, criticize his agenda and propose solutions in the best case. But say they aren’t political and noticed that refuse to participate in political groups, or organize their own where they When I have the opportunity to express myself on this could group all the people who think like them, for this is, exciting topic, I pointed out the following: The politi- according to them, equivalent to corruption, brazenness and cian is one who engages in the affairs of state, and poli- betrayal. Other times expose their ignorance demanding tics is the art of governing conduct or a matter to an end. that National Assembly or Legislative Branch is closed for the poor image, forgetting that the election of its members, Those of us with long memories recall that at the beginning for better or worse, is result of the will of sovereign people. and during the hegemony of the military in power after coup of October 11, 1968, policy was the subject of a well-orga- These comments should be answered simply that democranized propaganda campaign to discredit all political and cy is inconceivable without participation of politicians and sell the concept that were synonymous with corruption and political parties, or without participation of the three ordishonesty. The intention, among others, was to justify sei- gans of the state, and the legislature is one of them. There is zure of power to people of the country and establish itself as no democracy without political parties or without the premost capable and honest to direct reins of the state, ie conso- sence of the three organs of the state, executive, legislative lidate power. However, history shows that main reason for and judicial. We see this in every country in the world with that coup were transfers of officers of National Guard and a truly democratic system of government and rule of law. non-compliance of an alleged agreement to respect military ranks by the then president-elect, Dr. Arnulfo Arias Madrid. Sometimes this negative attitude deepens when some who, despite being registered members of political parWhile it is true that throughout our history we have had ties define themselves as non-political, legitimizing this many political rogues and possibly you, dear reader, I act, unconsciously or not, that the military program. would say most, is also an irrefutable fact that there is much to claim that many other politicians were not considered At one time, talking to a legislator of the Republic, today and acted the same or worse than the former. “Everything they are called deputies, who obviously was a member of a is in the eye of the beholder with”, said the Spanish poet political party and yet boasted of not being political, asked and Nobel Prize for Literature, Ramón de Campoamor. me what I was thinking as “political” on a given topic. I was 16. Legislación y Economía - Junio 2014
surprised at dismissive tone used by the legislature (which has those amazing life circumstances that would later be reelected in such a distinguished and eminent political office) to pronounce the word political. My response was immediate, noting that those who claim to not be involved in politics and politicians are often worse than those who boast of being. This case was further evidence of the insidious and long-term result of the advertising campaign of the military. The good politician shouldn’t be synonymous with corruption and dishonesty, because there are serious, honest and dedicated politicians, though they are few. Life is good politician arduous, often sacrificed. Neglecting their family duties to attend frequently the most remote areas of the country to respond or a voice of encouragement and hope to so many in need. Other times are subject to long exiles of deprivation of liberty and ill health. Often wait many years to form and head a government in which they can apply their ideas and programs and often do not. Countless times are defamed, maligned, misunderstood and betrayed by friends. It’s all part of life’s good politician. Being a good politician is also play one of the most uplifting of professions, because it deals with, works hard and sacrifices himself for the good, serving his country. When I finished giving my view of my colleagues looked at me and talking shop with a nod, they said “you’re right, and should be.” L&E
17. Legislación y Economía - Junio 2014
COMMENT ON NATIONAL URBAN CONSUMER PRICE INDEX: MAY 2014
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he Consumer Price Index (CPI) in May, compared to April 2014, showed an increase in percent 0.1por both the National Urban and for the districts of Panama and San Miguelito and Other Urban.
Source: CGRP Contraloría General de la República de Panamá
side home; Clothing and footwear 0.2 per cent, increase in the price of men’s shoes; Furniture, household equipment and routine maintenance of house 0.2 percent, the increase in home appliances; Miscellaneous goods and services 0.2 percent, increase in the price of cigarettes.
Compared with May 2013, an increase of 3.2 percent in both the National Urban as well as in the districts and 3.5 percent In contrast, housing, water and electricity reflected down of Panama and San Miguelito in Other Urban was observed. 0.1 percent, the decline in prices of rental fees. Comparing National Urban CPI May 2014, with its similar in 2013, is So far this year, the National Urban CPI the following increments: Teaching 4.8 percent; Food and showed a cumulative increase of 1.8 percent. beverages 4.7 percent; Health 3.7 percent; Furniture, household equipment and routine maintenance of the house The divisions showed increases above monthly average in 3.5 percent; Miscellaneous goods and services 3.0 percent; the National Urban CPI for May were: Recreation 0.4 per- Transportation 2.2 percent; Leisure, entertainment and cent due to increase in the price of package tours; Health culture services 1.9 percent; Clothing and footwear 1.4 per0.3 percent due to higher prices of analgesics; Food and cent and Housing, water, electricity and gas 1.2 percent. L&E beverages 0.2 percent, increase in the price of meals out-
18. Legislación y Economía - Junio 2014
MONTHLY ECONOMIC INDICATORS: JANUARY - APRIL 2013-14 COMMENTS
F
or January-April 2014, the main monthly economic indicators showed favorable performance in production activities related to domestic demand in the country, compared with their counterparts in 2013 were: production of evaporated, condensed and powdered milk, raw milk used in manufacture of products, alcoholic beverages; thermal electricity generation, electricity consumption, water billing in the Republic; value of permits for construction, additions and repairs; sale of fuels for domestic consumption, sales of new cars; stock market indicators; value of premiums; current revenues of Central Government; leisure activities and work contracts registered in the MITRADEL.
Source: CGRP Contraloría General de la República de Panamá
2. Electricity and water: a. Electricity: Thermal electricity generation rose by 11.3 percent and the surplus generated by the Panama Canal Authority to 153.1 percent. Hydroelectric power generation decreased by 27.2 percent. The total electricity consumption increased by 3.2 percent due to higher demand for residential customers by 4.4 percent, 3.7 percent commercial, government at 0.5 percent, other 16.7 percent customers and large customers in 6.7 percent . b. Water: The turnover of water in the Republic grew by 4 1 percent and sectors that were favored. Trade with 3.6 percent, 0.6 percent for industrial, residential and government 4.7 percent to 0.5 percent.
Of the indicators compiled with the rest of the world, presented positive sign: the weight they exported: yellow fin tuna frozen fish and fresh fish fillet, raw sugar, flour and fish oil and beef cattle; the hotel business in the city of Panama; passenger entrance living abroad; and income from Panama Canal tolls. 3. Construction: The value of permits for construction, additions and 1. Manufacturing Industries: repairs, registered a positive variation of 23.8 percent, excelling in non-residential construction 71.6 Within manufacturing industries reported increases in percent; conversely, residential construction decreathe production of evaporated, condensed and powde- sed 6.3 percent. Top Rated districts were: 10.6 perred milk 9.8 percent, pasteurized milk 6.9 percent, na- cent Panama, San Miguelito 170.8 percent, 78.2 pertural milk used for the manufacture of products by 10.2 cent and Resume districts grouped David, Santiago, percent, chicken meat 10.7 percent, and alcoholic and Chitre, Aguadulce and La Chorrera 28.9 percent. soft drinks by 3.1 percent and 11.0 percent respectively. All registered ready-mix concrete and cement producNegative rates were recorded in the slaughter of catt- tion decreased by 41.2 and 8.7 percent, respectively. le and pigs at 4.9 and 2.7 percent, respectively, sugar production by 7.1 percent and 1.4 percent salt. 4. Internal Trade: a. Sale of fuels for domestic consumption: Chec19. Legislación y Economía - Junio 2014
ked fuel consumption increased by 10.7 percent, d. Colon Free Zone: (At march) mainly in the 95 octane 20.4 percent. Meanwhi- The value of commercial activity in the Colon Free Zone le, the low-sulfur diesel, increased by 25.8 percent. decreased by 24.9 per cent, registering a fall in imports of 24.5 per cent and re-exports of 25.3 percent; also The sale of bunker C was reduced by 35.8 percent. The reported decrease in the weight of the commercial mosale of liquefied petroleum gas increased by 3.2 percent, vement in metric tons, 7.9 percent, in effect reducing mainly commonly used in 3.6 percent; on the contrary, imports of 7.7 per cent and re-exports of 8.1 percent. consumption was reduced in automotive gas 12.3 percent. 6. Hotels y entry of passengers: b. Sales of new cars: The new car sales registered a a. Hotels: positive variation of 10.2 percent, distinguishing The hotel business in Panama City reported positisegments: Regular cars with 13.0 percent, luxury cars ve rate in the number of housing units, 7.4 percent 14.5 percent, SUV’s 2.3 percent, Minivans 31.8 perand the average daily occupied rooms of 8.7 percent; cent, panels 2.7 percent, trucks and buses 9.2 percent by contrast, the average daily overnight stays by 2.5 to 65.5 percent. In turn, truck segment fell 3.3 perpercent and the occupancy rate fell by 2.8 percent. cent. b. Inbound passengers residing abroad and expenses: 5. External Trade: Entry of foreign residents passengers increased by 8.6 a. CIF value of imports of goods: (At March) percent, influenced by the greatest number of visitors 3.8 CIF value of imports of goods present rate of 2.0 percent, especially: Tourists at 1.7 percent, 12.2 percent percent, projecting intermediate goods by 6.7 and hikers arriving via cruise passengers 10.2 percent. percent and consumer goods by 6.4 percent; on The costs incurred by tourists amounted to 5.8 percent. the other hand capital goods fell by 9.2 percent. 7. Transportation: b. FOB value of exports of goods: Panama Canal Indicators, reported positive chanFOB value of exports of goods fell by 4.8 percent and ges of toll revenue at 4.5 percent, net tons displaitems with the greatest reduction were 4.6 percent bana- ced 3.9 percent and cargo volume by 8.8 percent. na, melon 19.8 percent, 14.8 percent pineapple, coffee The transit of vessels decreased by 0.6 percent. 61.5 percent, 40.6 percent linen and gold 97.2 percent; on the contrary, positive rates were observed: petroleum Cargo movement through National Port System grew products 21.5 percent, shrimp 30.4 percent, shrimp lar- by 12.2 percent, mainly bulk cargo by 17.9 percent. Movae 197.2 percent, yellow fin tuna, frozen, fresh fish and vement of containers in TEUs increased 5.3 percent. fish fillet 54.8 percent, raw sugar 120.6 percent fishmeal and fish oil 655.3 percent and beef cattle 8.5 percent. 8. Financial Intermediation: a. National Banking System: c. Weight of exports of goods: Information source not available to date. The weight of exports of goods grew by 4.5 percent and among items that influenced are: shrimp larvae 947.1 b. Stock market indicators: percent, yellow fin tuna, frozen, fresh fish and fish fillet The Panama Stock Exchange negotiated Bal40.0 percent, raw sugar 137.9 percent , fishmeal and boas volume totaled 13.5 percent. Of this, fish oil 596.0 percent and beef cattle by 8.8 percent. Mo- the primary market recorded positive chanreover, a negative performance was recorded: petroleum ge in 56.1 percent and 2.1 percent repurchases. products 27.8 percent, banana 5.8 percent, melon 13.4 percent, Watermelon 1.4 percent, pineapple 28.0 per- Conversely the secondary market decreased by 38.1 percent, shrimp 4.9 percent, coffee 63.7 percent clothing cent, as calculated by the Exchange in 12.0 percent rate. 43.8 percent, and hides and skins of 13.6 percent. c. Insurance: 20. Legislación y Economía - Junio 2014
Value of written premiums increased by 9.3 percent, and specifically in fields of: individual life 6.0 percent, 19.3 percent health, group life 3.0 percent, multi-risk fire and 7.5 percent, 18.3 percent other transportation and automotive 10.8 percent. Personal accident 22.0 percent, 24.8 percent technical branches and bonds at 1.6 percent: the low rungs were observed. Gross claims incurred increased by 5.2 percent. d. Loans from the Agricultural Development Bank: Loans from Agricultural Development Bank fell by 18.1 percent, especially those targeting agriculture 18.5 percent, 15.4 percent livestock and fishing 71.8 percent. 9. Public Secto Finances: a. Central Government Revenue: The total current income of central government increased by 8.2 percent, mainly in non-tax total 50.9 percent; highlighting the duties and rights of 88.0 percent. Meanwhile, the collection of ITBMS showed a positive rate of 14.5 percent. 10. Recreation activities: Net selling drawings
of
21. Legislación y Economía - Junio 2014
the
Natio-
nal
Lottery
Charities
grew
9.5
percent.
The value of betting on games of chance was higher at 2.3 percent, projecting the slot machine type “A” at 4.0 percent, meeting sporting events in 6.3 percent and 4.2 percent racecourse; on the contrary, decreases were reported in the bingo halls of 8.0 percent, game tables 8.7 percent. 11. Other related: a. Contratos de trabajo registrados en el MITRADEL: Employment contracts reported in MITRADEL Central Office reflected positive variation of 8.8 percent and more specifically, the particular work of 25.5 percent and 1.7 percent indefinitely. On contrary, decreased as defined in 0.3. L&E
NEW PACIFIC LOCKS REACH 2 MILLION CUBIC METERS OF BRAND CONCRETE
U
A week after met Milestone arrival of second boarding gate for the project of Third Set of Locks, another important mark is registered in the construction of locks on the Pacific to reach the emptying of more than two million cubic meters concrete. “This is another milestone that shows the progress of the Canal expansion project of its various components,” said the manager of Panama Canal Authority (ACP), Jorge Luis Quijano.
Source: ACP Autoridad del Canal de Panamá In total, 4.3 million cubic meters of concrete required to complete the construction of two lock complexes. On the site of Atlantic has been emptied to date 1.8 million cubic meters of concrete.
The project of the Third Set of Locks complex consists of two steps or three cameras, one in the Pacific and the Atlantic. The complex function with a redundant system of rolling gates and three water saving basins per camera, The brand concrete pour was recorded last Sa- allowing reuse 60 percent of water used for each transit. L&E turday afternoon in one of the monoliths that are part of west wall of the intermediate lock chamber.
22. Legislación y Economía - Junio 2014
WORLD BANK LOW FORECASTS FOR WORLD ECONOMIC OUTLOOK AND URGES DEVELOPING A BOOST YOUR INTERNAL REFORM
D
eveloping countries should prepare for a year of low growth because weakness experienced in the first quarter of 2014 delayed the expected rebound in economic activity, supports the report Outlook of the global economy (PEM) by World Bank. The bad weather conditions in United States, crisis in Ukraine, restoring balance in China, the political unrest in several middle-income economies, slow progress in structural reforms and capacity constraints are factors that contribute to that 2014 is the third consecutive year of growth below 5% for all developing countries.
Source: World Bank quarter due to bad weather, would expand 2.1% (lower than previous forecast of 2.8%) during the same period. It is projected that world economy will recover as the year progresses and grow this year by 2.8%, to consolidate in 3.4% and 3.5% in 2015 and 2016, respectively. The high-income economies contribute around half of global growth this year, unlike what happened in 2013, when they contributed less than 40%.
“Growth rates in the developing world remain too modest to create the kind of jobs need to be required to improve lives of the poorest 40%,” said Jim Yong Kim, president of the World Bank Group, “Clearly, countries should move faster and invest more in its internal structural reforms to achieve the broad-based economic growth reach levels needed to end extreme poverty in this generation. “ The Bank has revised downward its projections for developing countries and now points to a growth of 4.8% this year, well below estimates of 5.3% made in January. However, there is evidence suggesting a strengthening of 5.4% and 5.5% in 2015 and 2016, respectively. China is expected to grow this year by 7.6%, but this will depend on the success of efforts related to restoration of balance. If a sharp drop occurs, impact will be felt intensely across Asian continent.
The acceleration of high-income economies give an important impetus in developing countries. It’s estimated that these economies will inject U.S. $ 6,300 additional global demand in next three years billion, which means a considerable increase compared to U.S. $ 3,900 billion contributed during the past three years and exceeds expected contributions of developing countries. Financial short-term risks are less compelling, in part because of the danger of deteriorating situation has materialized without major upheavals and economic adjustments in the last year have reduced vulnerabilities. Current account deficit of some of hardest hit economies during 2013 and early 2014 has declined and capital flows to developing countries have risen. The concept of performance bonds by developing countries has dropped and stock markets have recovered; in some cases even exceeded levels earlier this year, although in many cases are kept lower than last year (and by a significant margin).
Despite weaknesses observed in the first quarter in U.S., recovery of high-income countries is gaining momentum and it’s expected that these economies will grow by 1.9% in 2014 to accelerate to 2.4% in 2015 and 2.5% in 2016. Eurozone, meanwhile, would expand by 1.1% this year and U.S. economy, which contracted in the first
Markets remain unstable and speculations on the exact timing and magnitude of future changes in macro-level policies in high-income nations could create new episodes of volatility. Moreover, vulnerabilities still exist in several countries where high inflation combined with current account deficit (Brazil, South Africa and Turkey). The risk you run is
23. Legislación y Economía - Junio 2014
that the recent easing of international financial conditions Developing countries in Europe and Central Asia held a again increase credit growth and current account deficit. modest recovery in the first quarter of 2014, despite difficulties caused by financial turmoil and the situation in “The financial strength of economy has improved. With the Ukraine. Industrial output experienced driven by increased exception of China and Russia, stock markets have perfor- exports to the euro area accelerated. In Central Asia, lean med well in emerging economies, including India and Indo- expansion of Russia (a major trading partner and source of nesia. But we still can’t claim victory. A gradual tightening remittances), decline in prices of metals and minerals and fiscal policy and structural reforms are expected to restore restrictions on domestic capacity growth have slowed in fiscal space eroded by financial crisis of 2008. Briefly, now 2014. Generally, it’s believed that the situation in Ukraine is time to prepare for a future crisis, “said Kaushik Basu, has decreased by one percentage point expansion among senior vice president and chief economist of World Bank. middle and low income in the region. While this effect happens, the product is expected to increase slightly from 2.4% The budgets of developing countries have deteriorated in 2014 (3.6% in 2013) to 3.7% and 4% in 2015 and 2016, significantly since 2007. Nearly half of developing coun- respectively. Moreover, growth of Russia, which has becotries, fiscal deficit exceeds 3% of GDP, while the debt-GDP me a high-income country, is barely positive (0.5%) in 2014, ratios have increased by more than 10 percentage points to rise to 1.5% and 2.2% in 2015 and 2016, respectively . since 2007. needs to fiscal policies become more restrictive in countries that still have a high deficit, among which Activity in Latin America and the Caribbean has been weak are Ghana, India, Kenya, Malaysia and South Africa. as a result of stabilizing or falling commodity prices, lower growth of GDP of United States in the first quarter and interMoreover, to maintain rapid revenue growth, you need nal problems. The regional weakening hold since 2013 and to push the agenda of structural reforms (which has harms exports of goods from various countries. The update slowed in recent years) in many developing countries. data of Argentina, Brazil, Mexico and Peru for first quarter “It will be crucial to be spent more wisely rather than are deficient due to a variety of influences, among which increase spending. Difficulties in energy and infras- the decline in GDP of the United States related to climatic tructure, labor market and business environment in conditions including recent tax increase Mexico and the many large middle-income economies are slowing GDP slowdown in China. Instead, Bolivia and Panama expected growth and productivity. The subsidy reform is a possi- to grow by more than 5% this year. It is also projected that ble way of generating money and increase quality of pu- regional exports, including income from tourism in the Cablic investment in human capital and physical infras- ribbean, are consolidated due to higher growth in advantructure, “said Andrew Burns, lead author of the report. ced countries and improvements in competitiveness after the devaluation of several currencies previously occurred. Regional highlights: In East Asia and the Pacific, 2013 marked another year of This, together with the strong and sustained investment modest annual growth, mainly due to internal adjustment growth along the Pacific coast of South America and strong aimed at addressing accumulated during boom years fue- capital inflows, generating a modest increase of 1.9% of regioled by credit imbalances. The adjustment has continued nal GDP in 2014 would accelerate to 2.9 % in 2015 and 3.5% during 2014, with real growth of loans has slowed to ra- in 2016. Brazil is expected, the region’s largest economy will tes less than two digits, particularly in China, Malaysia expand 1.5% this year, which is lower than expected, but will and Indonesia. The outlook for region point to a slight strengthen to 2.7% and 3.1% in 2015 and 2016, respectively. decrease of 7.2% growth in 2013 to around 7.0% in 2016, The gradual strengthening of growth in developing counabout 2 percentage points less than in boom years prece- tries of Middle East and North Africa is expected, but reding crisis, but rather in line with potential. It is expected mained weak throughout the forecast period after contracthat growth in China will gradually decline from 7.6% tion of 0.1% in 2013. In oil-importing countries, economic in 2014 7.4% in 2016, reflecting a sustained rebalancing. activity is stabilizing. Exports in several Mediterranean economies are rebounding due to recovery of the euro area. Projections indicate that regional growth (excluding China) will consolidate approximately 5.0% this year to 5.5% Although activity has gone up in Egypt from low levels, in 2016 due to strengthening of external demand, re- side effects of the conflict in Syria continue depressing actiducing the drag on growth caused by political situation vities, exports and mood in Lebanon. In developing counwho lives in Thailand and flexible internal fit elsewhere. tries exporting oil from the region, the product shows signs 24. Legislación y Economía - Junio 2014
of strengthening after previous disturbances, particularly in Iraq. However, aggregate output remains below the average for 2013. Prospects for the region are uncertain and subject to a variety of risks related to internal political instability and uncertain policies. It is expected that growth in developing countries of the region gradually rise to 1.9% in 2014 and 3.6% and 3.5% in 2015 and 2016, respectively, helped by a rebound in oil production between exporting countries and a modest recovery between economies that import. The estimates indicate that GDP growth in South Asia declined to 4.7% in terms of market prices during calendar year 2013 (2.6 percentage points less than the average from 2013 to 2012). This weakening mainly reflects a decline in manufacturing activity and a sharp slowdown in the increase of investments in India. It is estimated that growth in Pakistan has remained generally stable despite the fiscal contraction, but still well below the regional average due in part to the difficulties associated with energy supply and security uncertainties. The consolidation of global growth and the modest rebound in industrial activity should help boost growth in South Asia to 5.3% in 2014 before rising to 5.9% in 2015 and 6.3% in 2016. The most of the acceleration is located in India thanks to the gradual increase in domestic investment and increased global demand. The projections assume that reforms to ease restrictions on the supply side (especially in energy and infrastructure) and labor productivity improvement are implemented, continued fiscal consolidation and maintaining a reliable guidance on monetary policy. It is expected that India’s growth reach 5.5% in fiscal year 2014-2015 and to accelerate to 6.3% in 2015-2016 and 6.6% during 2016-2017. In Africa south of the Sahara, strong domestic demand sustained GDP growth of 3.6% in 2012 to 4.7% in 2013. The regional aggregate was depressed due to a weak 1.9% growth in South Africa because structural constraints, strained labor relations and low consumer and investor confidence. Excluding South Africa, the average regional GDP growth reached 6.0% in 2013. Deficit on current account and fiscal increased across the region as a result of high public spending, sustained decline in commodity prices and strong import growth. The medium-term prospects for the region remain favorable and GDP growth rather stable at around 4.7% in 2014 before increasing moderately to 5.1% in 2015 and 2016 due to the consolidation of the predicted and foreign investment in natural resources, infrastructure and agricultural production demand. Particularly strong 25. Legislación y Economía - Junio 2014
growth in East Africa helped by inflows of foreign direct investment to offshore resources of natural gas in Tanzania and incipient oil production in Uganda and Kenya are expected. Although growth in South Africa will remain moderate, will strengthen modestly in Angola and will remain solid in Nigeria, the largest economy in the region. L&E
LATIN AMERICA AND THE CARIBBEAN RECEIVED 184,920 MILLION DOLLARS OF FOREIGN DIRECT INVESTMENT IN 2013
new record surpassed Latin America and the Caribbean in 2013 to receive 184, 920 million in foreign direct investment (FDI), 5% more than in 2012 in nominal terms, today reported the Economic Commission for Latin America and the Caribbean (ECLAC).
A
(-29%), Argentina (25%) and Peru (-17%), while in Panama (61%) and Bolivia (35%) of these were significantly increased. Central America attracted more FDI than 21% in 2012 and the Caribbean fell by 19% (due to a specific operation in Dominican Republic).
Global FDI flows rose 11% in 2013 over the previous year, while the share of Latin America and the Caribbean in the world total stood at 13%, the report Foreign Direct Investment in Latin America and the Caribbean 2013 presented today at headquarters of the United Nations agency in Santiago de Chile.
“In the last decade, foreign direct investment in Latin America and the Caribbean has increased fourfold, but is necessary to analyze its role in the structural change for equality. Believe that this revenue should be part of the process of diversification that are pursuing the countries of the region, “said the Executive Secretary of ECLAC, Alicia Barcena.
Since 2003, FDI to region has grown steadily except in 2006 and 2009, but relative to the size of economies has remained virtually unchanged since 2011. This growth was supported by increased domestic demand and high prices primary exports.
As the highest representative body, “investments in technology-intensive sectors may have greater capacity to generate positive impacts on the local economy and could also transnational linkages and productive links with local businesses.”L&E
In the past two years, economic growth has slowed and metal prices have fallen, so ECLAC projects that in 2014 FDI inflows will fall slightly. Despite this, the agency notes that TNCs still show great interest in long-term growth in consumption in the region and exploitation of natural resources. According to the study, 82% of FDI flows are directed to the six largest economies in region, although in relative terms are more relevant in small, especially in the Caribbean. Brazil receives 35% of the FDI inflows to Latin America and the Caribbean in 2013 attracted 64.046 million dollars, slightly below 2012 Mexico is the second largest recipient, with 38.286 million dollars in 2013, twice as received. 2012, with acquisition of the brewery Anheuser-Busch Model for Inbev at 13,249,000 dollars. Received less foreign direct investment in Chile 2013 26. Legislación y Economía - Junio 2014
Source: ECLAC
A
s part of its News ANPanamá program, which airs every Monday from 5:30 pm through the screens of Eco TV, Channel 28, the News Agency of Panama, signed a Communicational Agreement with the law firm, Rivera, Bolivar and Castañedas, in order to adopt the Law and Economics segment within this prestigious news. Law and Economics seeks to publicize the most outstanding issues in this sector in order that viewers know firsthand truthful, transparent, offered by specialists in the field information. L&E
27. Legislación y Economía - Junio 2014
An extract of the topics each week in this segment are:
Challenges facing the new administration decreased tax revenues
Protection of Wetlands in Panama By: Maybé Mendieta - Lawyer
Wetlands are formed by a set of ecosystems, inBy: Augusto Garcia - Lawyer cluding, but not limited to lagoons, mangrove forests, which provide sustenance to the populaThe new administration led by President-elect tion and the various groups of migratory birds Juan Carlos Varela faces great challenges budgetary that have their habitat in the Republic of Panama. arrangements for the new year period in response to accelerated fiscal policy that the Martinelli admi- These areas include coastal land, river and marine ennistration has developed in the last two years in offi- vironments, which in some cases have been declared ce, which will leave a legacy economy growing, but protected areas by the National Environmental Autholess buoyant than its predecessor, which influence rity and are in the list of wetlands of international imtheir spending capacity and project implementation. portance, as is the case of Panama Bay Wetland, the which in recent years has been the subject of lawsuits These budget challenges will challenge the ambi- filed before the Third Chamber of the Supreme Court. tious plans announced by President-elect during his campaign, which as he himself said are aimed at im- The areas in question have many uses: farming, fisproving the quality of life of Panamanians with pro- hing, and in some cases to urban development. The jects such as basic health, social housing, increased latter activity brings the cutting of mangroves and universal scholarship or other more ambitious pro- swamps filled, processes that have contributed in rejects such as the construction of the subway line 2. cent times to the destruction of wetlands, even when One of the main challenges has gained importance they are important to the economy and biodiversity. during the transition from the administration has Notably failure December 23, 2013 issued by been the decline in tax revenues, which as reported the Third Division of our High Court Corpoby the reports of the first quarter of 2014 showed a ration, through which the status of the wetland deficit in terms of his collection of about 200 mi- protected area Bahia de Panama is returned. llion, compared to what was budgeted for the period. By virtue of the foregoing, we should indicate that Decrease in Tax Revenue in the First it is the duty of the various government agencies that protect this area (ANAM, ARAP, etc.), ensure Quarter: regulatory compliance and conservation assessment The current revenue in the first quarter amoun- of environmental impacts, in order to protect the ted to $ 1444.9 million, representing an increa- national heritage and the country’s population. L&E se of 5.6% or $ 76.4 million compared to the same period last year, but fell far short ($ 200.4 million, 12.2%) about what the government had budgeted. The largest gap was in direct taxes ($ 155.9 million or 21.9% less). Specifically, the tax of legal persons, including the Colon Free Zone, cumulative to March results show a budget deficit of $ 101.8 million (36.5%) and a contraction of $ 31.4 million (15%) compared to the same period previous year, according to the National Revenue Authority (ANIP). 28. Legislación y Economía - Junio 2014
A WORLD CUP OF SURPRISES
T
wo weeks into the World Cup in Brazil, has been very surprised to see an opening match host team gained an overwhelming victory, in which they relied on a penalty that was not valid or other equipment such for many people as Spain, Australia and Cameroon in the first two games were eliminated.
Albin Rodríguez albin.rodriguez@rbc.com.pa
neat lines between state, could make the feat that made the Croatian team in the World Cup in France in 1998 with his gunner Davor Zuker; with the difference that the Belgian team has more figures known as: Eden Hazard, Vincent Kompany, Thibaut Courtois, among others.
We consider the amount mentioned that the Costa Rica team entered the World Cup history, proclaiming against all odds the champion of the “group of death”, which cohabited with three world champions and that in this world were unable all of whisk. The latter, a new, soulless and previously deleted England, who completed the worst World Cup in its Of America all the South American and CONCACAF teams history without winning a match and closing the said group. have shown their colors always set the pace of the game, such as Chile, Colombia, Uruguay, Costa Rica and the United Sta- Another feat that has lived in this World Cupwas the goates, who have been far superior to their opponents, develo- lkeeper of the team of Colombia, Faryd Mondragon, as the ping a flashy game and nice; being worthy like the above men- oldest player to dispute a match in the World Cup, at 43 tioned European teams to clinch the World Cup as desired. years and three days. The keeper of Cali, who played the match against Japan Team entered the field 84 minutes into In this World Cup the fan bases have said this eminent the match, snatching the record that former Cameroonian showing support and enjoying every game. It’s worth player Roger Milla, which so far was 42 years, one month mentioning that there are many safety and good behavior and 8 days the oldest player to play in a World Cup match. of fans, despite several protests made by citizens of every city, outside the stadiums and surrounding streets, due I couldn’t fail to mention the good work that is making the to cost overruns and mismanagement, and it’s speculated Panamanian referee Roberto Moreno, born in the province that organizers are filling their pockets and left the country of Colon, who at age 43 to his dream, to attend the finals badly financially when there is a high degree of poverty. for the first time. He has had good presentation in the contest so far shown good character in his work as a fourth Other teams like Argentina, haven’t shown their official, we hope to continue with good performance. L&E full potential despite having star striker Lionel Messi and Portugal, with the world’s best player Cristiano Ronaldo, who almost round group stays. While other European teams like Germany, Holland and France, have demonstrated their potential to be strong candidates to win the title despite the heat and humidity that plague other teams.
In addition, the team has been working very well, and who can give the big surprise in this World Cup, is the team of Belgium, demonstrated good physical, tactical and very 29. Legislación y Economía - Junio 2014
30. Legislaci贸n y Econom铆a - Junio 2014
Activities for June
3
June
The National Concert Association presented the Wood Wind Quintet University of Northern Colorado, on Tuesday. at the Ateneo of the City of Knowledge.
“Located Drawings, Surronded Landscapes” Jaime Toledo in the Contemporary Art Museum - MAC from
19
June
June
Festival of Corpus Christi in the town of Los Santos
21
Stories with sun and water and to change the world, National Library, children’s room. Presented by the Panamanian Network Stories Storytellers.
June
30
June
June
Workshop Procedure how to remove Bulliying from Schools, 6:00 pm National Library
Life in Color Figali Convention Center
2 to 5
July
14 to 22
Music Festival in Casco Viejo
26
Activities for July
27
June
Social Media Day at the Ateneo of Sciences and Arts
31. Legislación y Economía - Junio 2014
-Romeo and Juliet Shakespeare’s classic presents until -BAVIC (Visual Arts Biennial of Central America) to be held in the City of Knowledge 5 July 2014 at the Cultural Center of Spain -Debutantes Festival 2014 will be held on July 5 at the South Ocean Terrace
-FUNDACANCER hits: Join Pink Power Pink Panama side of the Force days 7 to 12 July
9 to15
July
7 to 12
July
-“Art on the Square” July 9, part of the artistic season in the Cathedral Square Panama Graph Expo 2014, 15th to July 18th, 2014 at Atlapa Convention Center.
-Space presents Panamanian Fashion Chic Pop Store 18 to July 24 Los Del Patio Building, 3rd San Felipe Street, 3rd floor -Day of the child and the girl in Panama, Sunday, July 20.
18 to 20
July
-Pollera Festival will be held on July 22 in the
22 to 24 city of Tablas, Los Santos province
July
-Ballet La Peri commemorating 60 years of the IJA, July 24 at the National Theatre. -Up to 25 July at the Station Theatre comedy “five women wearing the same dress.”
-The comedy “Ours every day sex “ in La Quadra Theatre until August. - During the month will be performing at La Quadra Theatre the sequel to the play My First Time.
All Month
HOW TO CHOOSE THE NECK OF OUR SHIRTS Today we can find many different models of shirts with collars, then I will mention some very important tips when choosing shirts. So we can choose the perfect shirt, it is very important to know about different types of shirt collars for men. Por: Nadia Chang rbcweb@rbc.com.pa
32. Legislaci贸n y Econom铆a - Junio 2014
Italian neck This type of collar is highly recommended, short and separate wings. It’s considered the most elegant neck. By having the two as separate wings goes with large tie knots. Wear it if you have the face and/or long narrow neck.
French neck It’s similar to English but with larger opening between wings. Also elegant. Round favors less expensive than English. I would say that is the standard neck in stores.
English neck Elongated wings and little space between them. This is an elegant shirt collar and is good with people face and / or wide necks.
33. Legislación y Economía - Junio 2014
American neck Mainly shirts that have American neck, are ideal for creating volume and slenderness.
Cutaway neck As the Italian but further winged trimmed and with more light between them. It is also considered elegant and uses people who have taste for trends. To be similar to Italian, favors the same prototype face.
Do you think that there are only these types of necks, as in the market we can find many more types of collars that you have mentioned above are the most common and the most used in the world for stylish men. 34. Legislaci贸n y Econom铆a - Junio 2014
Then I’ll also leave some tips, which are very important to help choose the ideal shirt.
* All men who have a narrow face should choose shirts that have wide necks and tips flaps have to be short.
* Those shirts that have long narrow necks are perfect for all men who have broad face. * Men who have short necks should avoid using shirts with the neck largo.u
* Short neck shirts are not ideal for men who have long necks, it is better to use long-necked shirts.
Remember it is very important to note that a collar is according to the body type you have. For those who have large heads I recommend the following: Must-shirts with widespread use neck or open neck split, that make your head look normal. - I do not recommend you to wear shirts with narrow neck extended, will make your head look even bigger.
PROPER CARE OF NECKS SHIRTS An extremely important detail is properly maintain necks then washed, and that often lose sight that stick out from the Ballenitas (long piece of metal or the like that will insert into the ends of the collars) manteniene what the neck so stiff and proper, because without them, or without proper care tend to enrularse inward and very cute and fineness of the shirts are completely detracts and therefore not luciremos properly. Shirts for the occasion, climate and season; Solid color shirts are considered staples of cabinets, as they are very easy to match, however, should think about or discrete stripes motif shirt. Solid colors are very good, because the ties combine very well. For a job interview, the choice has to be traditional, conservative colors. A light blue is the best alternative. White is very formal. Grey can also make a good contribution. If you want to project a more vivid picture, maybe you can try semi bright colors like green, orange or pink. Careful 35. Legislación y Economía - Junio 2014
with the excesses. The Linen shirts are perfect for our climate, while Oxford weave with a heavier thread and rugged, the soft agodón, there are both casual and dress as allows you be more comfortable. I hope you have enjoyed this article and these tips can have a clearer when choosing shirts idea, because as I mentioned above it all depends on the shape of our body, and it is very important to make an investment in our Costume keep in mind these parameters to look for the most appropriate way and to better project our image and we use it all that better fits our anatomy. Next month, we will discuss the trends from the pants. L&E
Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA