- MYTHS, FACTS AND DYSFUNCTION OF DOGMA OF SEPARATION OF POWERS - DON´T PLAY WITH OUR CANAL
ISSN-1726-1477 EDICIÓN
- THE FINAL THROES OF A TYRANT
ENERO-15
- BAY WETLAND: ASSEMBLY CLEANS ENVIRONMENTAL FACE
www.rbc.com.pa
Consejo Editorial
Colaboradores en esta edición José Javier Rivera
José Javier Rivera Giovana Miranda
Rafael Fernández Lara I. Roberto Eisenmann, Jr.
Mario J. Galindo H. Maybé Mendieta Giovana del Carmen Miranda Portada y Diagramación: Virginia Medina Fotografía: Mariela De Sedas de Sanjur
Alexander Canto Albin Rodríguez Mariela de Sanjur Nadia Chang ÁREAS DE PRÁCTICA
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
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CONTENT 6. 8. 15. 16. 17. 18. 19. 20. 24. 25. 26. 28.
EDITORIAL THE FINAL THROES OF A TYRANT
INVITED WRITER MYTHS, FACTS AND DYSFUNCTION OF DOGMA OF SEPARATION OF POWERS
NORMS OF INTEREST CONTROLLERSHIP POSSESSES NEW DIRECTION (DIAF) PROGRAM MODIFYED TO PROMOTE AGRICULTURAL AND AGROINDUSTRIAL MODERNIZATION DISTRICT OF PANAMA HAS THREE NEW CORREGIDURIAS APPROVED RULES FOR CERTIFICATION OF SEAFARERS JOINT SECURITY AND TOURISM FORCE IN THE BEACHES
CONSULT, DOCTRINE AND JURISPRUDENCE BAY WETLAND: ASSEMBLY CLEANS ENVIRONMENTAL FACE JUDGMENT OF THE SUPREME COURT OF US REQUIRES JUDICIAL ORDER TO REVIEW A CELL PHONE CITIZEN COMPLAINT COMPLAINT OR INFRINGEMENT OF URBAN RULES RECOVERY RATE FUND FOR SAFETY AND HEALTH IN CONSTRUCTION IS INSCONTITUCIONAL
POLÍTICS POLITICAL PARTIES, SINE QUA NON REQUIREMENT OF DEMOCRACY
CONTENT 30. 31. 32. 35. 38. 39. 41. 43.
PANAMANIAN ECONOMY DON´T PLAY WITH OUR CANAL (II) COMMENT ON PRICE INDEX NATIONAL URBAN CONSUMER: DECEMBER AND AVERAGE ANNUAL 2014 BASE 2013 = 100 MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-NOVEMBER 2013-14 COMMENT
WORLD ECONOMY WORLD ECONOMIC OUTLOOK LATIN AMERICA AND THE CARIBBEAN HAS AN HISTORIC OPPORTUNITY TO STRENGTHEN ITS LINKS WITH CHINA REGIONAL EMPLOYMENT TRENDS IN 2015
EDUCATIONAL CAPSULE PANAMA BILINGUAL PROGRAM STARTED
FASHION TRENDS OF SUMMER 2015 FASHION
SPORTS CAPSULE
46. 48.
THE ROJITA CLASSIFY TO THE WORLD CUP OF NEW ZEALAND 2015
CULTURAL CAPSULE ACTIVITIES AND CELEBRATIONS OF JANUARY 2015
EDITORIAL THE FINAL THROES OF A TYRANT José Javier Rivera - Abogado jjrivera@rbc.com.pa
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flooding
n recent weeks we have witnessed daily attendance of conspicuous figures of the past government, with various anti-corruption prosecutor, to perform investigations by a plurality of crimes, details of social networks and the media.
The structure of the Public Ministry has almost succumbed to the complexity of behaviors, from presidential chair was sealed off like cancer in our land, from the inauguration of Ricardo Martinelli Berrocal in July 2009.
me” and now says he fears for his life. Another footman and a persecutor, Luis Cucalón calling evader anyone who opposed his arbitrariness, was one of the principal architects of a tax collection agreement that has caused millions in damage to the National Treasury.
Be obscene character, also contributed to the reNobody had the ability to imagine the public and pri- peal of a rule that allowed managers slot machivate plunder to which we subjected the government ne type A, reduce their contributions to the Staheaded by this guy, now aims to become a victim of po- te by amending Article 11 of Law 28 of 2012. litical persecution, precisely one of the behaviors that most used during his nefarious step in local politics. Don’t forget that Cucalón, was responsible for the creation of the National Tax Authority, which by his Since punctures to investigate all the intima- arbitrary nature has been declared unconstitutional. cies of his friends, his political opponents, members of the church, to entrepreneurs and com- The country is beginning to regain confidence in petitors to cost overruns, blackmail to acquire some key institutions such as the Attorney General’s companies and other tricks too numerous to men- Office, Attorney General of the Administration, Sution are being confessed by their lackeys and by his preme Court and General Comptroller of the Recronies, who made recently displayed his power. public; nonetheless remains vigilant, because it is not giving a blank check to a presidential system, One of the most cowardly is precisely Martinelli, which is pregnant with powers which may affect as before, showing his apparent anger saying “Hit fundamental rights enshrined in the Constitution.
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EDITORIAL The mere fact that it has authorized the commencement of an investigation against Martinelli, by a resolution of the Plenum of the Supreme Court, adopted unanimously, must be weighed as a turning point, although still in the collegial body there magistrates have strong links with the tyrant.
ney by buying real estate, bank deposits, transactions in the stock market and other crimes.
Fortunately, the country has sufficient information to provide various daily media and direct flow of social networks and this prevents setbacks like the one we have tried to set, giving house arrest two people who are under investigation by wiretaps.
I want to conclude by expressing that Ricardo Martinelli Berrocal and his henchmen have to account, either in Panama or abroad, because the looting that underwent this country is unprecedented.
Many public and private sector overnight millionaires were made and are now trying to transfer assets, money, jewelry, won to escape justice.
It’s appropriate to recall the wise words of former PreThe country is attentive to next statement of Elec- sident Guillermo Endara Galimany “The world is wattoral Tribunal to be decided by lifting the forum to ching us” and I think that once again the world’s eyes the president of the Cambio Democrático Party and are focused on recovery of the certainty of punishment. investigations pertaining to electoral prosecutor. All defendants are entitled to the presumpThere are a number of former officials and others, tion of innocence, adversarial proceedings in which also will be held accountable for social networks which to present their evidence and disclaiis a list of them, and the prosecution has it, that thic- mers and ultimately their fate is determined by ken with the ultimate beneficiaries of legal persons the opinion of upright and independent judges. who have valid nominees and family to try to conceal their involvement in these misappropriations. Those who today have the great responsibility of holding public office should look in the mirror of Ex officials, congressmen, businessmen and auxiliary previously formed part of the government to relaw firms, accountants also will be held accountable. direct its action within the framework of the law. As have stated the superintendent of banks, there is a comprehensive reform of the financial sys- Those with union responsibility must also change the tem to reduce the outstanding weaknesses that attitude of complacency and often cohabiting with allow money laundering through banks, pur- the rulers, by an attitude of reasonable distance and chase real estate, securities firms, trusts, priva- independence. Guilds are not steps to gain power, te foundations, simulation debts among others. nor are clubs for personal advantage or less union. But in this test must also place a significant number of rascals entrepreneurs who participa- It will dawn and see… ted in negotiated the PAN, the deputies circuit items, pregnant public works premiums or ghosts and have actively participated in washing mo-
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INVITED WRITER MYTHS, FACTS AND DYSFUNCTION OF DOGMA OF SEPARATION OF POWERS Mario J. Galindo H. Lawyer and member of the Panamanian Academy of Language rbcweb@rbc.com.pa
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ery truly appreciate the honor that the Supreme Court has graciously bestowed to ask me that, on the occasion of opening of the judicial year, say a few words about “the challenges of managing Panamanian justice in the XXI Century”. I will from the handful of simple reflections, that non-pontificate on any of them, shall set immediately of the myths, realities and dysfunctions of the dogma of the separation of functions between the various bodies and branches of government. About this separation, Article 16 of the Declaration of the Rights of Man and of the Citizen of August 26, 1789, states that: “Every society in which the guarantee of rights is not assured, nor the separation of the established powers, has no constitution.” As is well known, was the Baron de Montesquieu who in his masterpiece “The Spirit of Laws” made the classical theory of separation of powers, that the basic functions of the State must be fulfilled by three different bodies legislative, executive and judiciary - which, according to this theory, should act separately, ie independently of each other, reciprocally undergoing a set of checks and inter-organic balances that ideally should translate into a mechanism and balances, all with a view to avoid arbitrariness and to protect individual liberty of the governed. Our Constitution echo of this theory is to provi-
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de in its second article that the Panamanian government to exercise its functions through these three bodies, which have to act separately, but in harmonious cooperation to achieve the goals of the state. Needless to say that tripartite division of state functions actually doesn’t exhaust all the organs of public law through which the Panamanian government undertakes the broad scope of its complex functions. This is, besides the three mentioned, our Constitution
INVITED WRITER provides several others, which include the Comp- tutional provisions. The causes of this phenomenon, as troller General’s Office and the Public Ministry, res- will be seen, are to be found outside of those precepts. ponsible for fulfilling the call control function and the Electoral Tribunal in charge runs the function of THE RELATIONSHIP BETWEEN LEGISLATIVE the same name. A two functions I will briefly below. AND EXECUTIVE BODIES AND THE ROLE OF POLITICAL PARTIES THE WEAK AND BY SNATCHES NON-EXISTENT In this vein, it’s important to note that when MonSEPARATION BETWEEN LEGISLATIVE AND tesquieu in 1784 formulated his theory of separaEXECUTIVE ORGANS tion of powers there were no political parties that From the inescapable fact that separation between le- dominate the political developments in the demogislative and executive bodies is too often diffuse, weak liberal democracies. They weren’t so evident toand sometimes non-existent, in certain circles of opi- day foreseeable consequences of the emergence of nion has broken through the thesis that are not demo- these has had regard to the aforementioned theory. cratic states in which executive and legislative powers To say that today political parties, despite all its flaws, don’t perform their duties completely independent of are part that can’t be ignored in the difficult task of eseach other. This thesis, in my opinion, is not correct. tablishing, improving and strengthening a democratic system of government is asserting a truth that has been For starters, separation of functions between legislative and confirmed by experience historical. That truth was anexecutive bodies don’t exist, even in theory, in parliamentary nounced by Kelsen in 1929 and has been confirmed by regimes. In them the executive body, ie, the cabinet, leaving the whole doctrine and Western contemporary reality. parliament itself, and if you will, is an executive committee thereof, before which responds politically. Therefore, in parliamentary democracies such as the United Kingdom and No one, with clean pupil and unprepared mind, look Spain, for example, the legislative and executive bodies are, at the global picture will be unaware that all demoinstitutional design, closely amalgamated, without there cratic regimes that exist today are underpinned by being any formal separation between them. Moreover, both a structure of parties that is, visibly, the main vehicle are under the control of the party (or party alliance) that for political relationship between state and society. bill in Congress with the parliamentary majority. None of this means, in a way, that parliamentary regimes are unde- Well, it happens that even in presidential regimes, as mocratic. They are because they democracy is strengthened anyone can see, the so weighted separation of powers and supported by the actual independence of the judiciary. between legislative and executive bodies, strictly speaking, only occurs in the reality of facts when the execuBut in presidential regimes, like ours, it is assumed that, tive body lacks the support of parliamentary majority to in effect, the basic functions of the State must be met by be it controlled by the opposition. Otherwise, ie, when the legislative, executive and judicial organs. However, the election results placed the executive body and the neither of them, as can warn anyone for short-sighted parliamentary majority held by the same party or the it, the legislative and executive organs work in practisame party alliance, the aforementioned separation of ce, with the independence proclaim the relevant constifunctions is eroded and reduced to a minimum because Cesar Quintero, “Principios de Ciencias Políticas”, Panamá, R. de P. 1952, págs. 353 – 363. Francis Fukuyama, “Political Order and Political Decay”, Straus and Giroux, New York, 2014, pág. 500. Maurice Duvenger señala en su obra “Los Partidos Políticos”, pág. 15, que en 1850 “ningún país del mundo, con excepción de los Estados Unidos, conocía partidos políticos en el sentido moderno de la palabra”. Acerca del papel que deben desempeñar los partidos políticos en una sociedad moderna, véase también Nicolás Berggruen y Nathan Gardels, “Gobernanza Inteligente para el Siglo XXI”, Santillana Ediciones Generales, S.L., 2012., págs. 181-185.
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INVITED WRITER the party or the alliance, as appropriate, attach, as an umbilical cord to both, and they therefore almost invariably act jointly. Like it or not, that’s the reality of things. Furthermore, it is assumed that the party that has won presidential elections and parliamentary has a government program to be developed in compliance with the mandate received from the electorate and, therefore, it’s not unusual, but even logical and appropriate for the legislature and the executive, depending on the program, act in a coordinated manner.
Endara was able to rule - and ruled well - despite not having his administration with the parliamentary majority, controlled at the time by an opposition that chose not systematically hinder the work of Endara.
THE RISK OF PARALYZATION WHEN THE POLITICAL PARTIES FACE
However, what happened in the Endara government, not nearly rule out the possibility that political rancor that For me it’s clear that in the field of relations between may arise between two parties to monitor one another legislative and executive bodies, political parties act the legislature and the executive body, leading to a dangein the manner of so-called real factors of power fac- rous and undesirable stoppage of governmental activities. tors, as explained at the time Ferdinand Lassalle, “are the forces active and effective reporting all laws In a recently published work (Political Order and Poliand legal institutions of any society and that make tical Decay), American politologist Francis Fukuyama them can’t be, in substance, rather than as they are. “ examines starkly what is currently happening in their country because of the fact that executive body, on one Since I don’t want you to misunderstand me, I hasten hand, and the legislature, on the other, are controlled by to clarify that relationship that should exist among the two political parties - one of them, the Republican , turlegislative and executive bodies, even when both under ned to the extreme right - who have lost all rational abithe control of its single party, is not the barking sub- lity to forge consensus and therefore mutually neutralimission that, contrary to former Martinelli assumed zed to paralyze governance and, consequently, the timely the parliamentary majority that he forged in the heat of attention of the cluster of problems facing the country, bad legislation arts and unconcealed bribery, derelic- leading to a form deeply dysfunctional government tion of majority who did all constitutional powers and for which Fukuyama has coined the term “Vetocracy”. went on to pass the bill soon sent the executive, without the slightest hint of deliberation on its content and to Is so serious the situation created by the shrill chorus confirm, drums beating, the appointment made Mar- of disharmony sung, every day, Democratic and Reputinelli, abstaining also exert any political control over blican parties that Fukuyama has suggested that the US the actions of the officers so appointed. The results of should consider the possibility of amending its governso much submission are now in the public domain. mental structure, to introduce her to remove some reforms of the checks and balances that result Vetocracy Moreover, no leftover add that the fact that legislative said inserting into your device a parliamentary instituand executive bodies aren’t controlled by a single par- tional mechanisms that promote a stronger hierarchical ty not necessarily rigged the paralysis of governance. authority within the existing system of separated powers. This is demonstrated by the fact that former President Hans Kelsen, “Esencia y Valor de la Democracia”, edición española, pág. 37. Acerca de la centralidad de los partidos políticos, véase Francis Fukuyama op. cit. supra, págs.408 – 410. Ferdinand Lassalle, ¿Qué es una Constitución?, Edición Coyoacán, 2006, pág. 45. Con el propósito de que resultara imposible, desde el punto de vista práctico, la revocatoria de mandato de los diputados elegidos por los partidos distintos al suyo, el expresidente Martinelli hizo aprobar la ley 14 de 2010 a tenor de la cual se dispuso que para que un partido político pudiera revocar el mandato de un diputado, era necesario que la revocatoria fuera aprobada en forma unánime por el directorio nacional de parti-
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INVITED WRITER STRENGTHENING THE JUDICIAL BODY In light of what I leave I said, I don’t think feasible to break the amalgam that although we don’t like, occurs inevitably, to a greater or lesser extent, between the legislative and executive bodies when both are in the hands of the same political party or party alliance. So things work in all democratic countries. Some of institutional design, as is the case of parliamentary democracies, and in others, as in presidential regimes, by virtue of the centripetal force of political parties, as stated above, act like the real factors of power ie, with an efficiency that goes beyond the scope of the constitutional provisions that aim to consecrate the separation of legislative and executive bodies. Therefore I argue that in our country it’s urgent to strengthen, without hesitation and without pauses, independence of the judiciary. After all, in parliamentary democracies is the judicial body that ensures and maintains the democratic system of government. This is precisely the challenge that Panamanian society faces in XXI century. A first step would be to change the way the Supreme Court are elected. This requires a constitutional amendment. One possible solution would be to entrust the selection of judges to an entity not subject to the executive and legislative bodies. The General Council of the Judiciary of Spain could be a model. In this vein, I note that in the draft constitution prepared by the committee appointed lawyers and then ignored by the president Martinelli a formula that revolves around this notion was proposed. According to preliminary referral, appointment of judges would start with a list of potential candidates drawn up by a collegial body that the draft called
“The National Assessment and Application.” The executive body would appoint judges from among those in the list and confirm them legislature by the affirmative vote of two thirds of its members. The meritorious aspects described process. However, I think that the composition of that commission is not the right one, that it consists, in part, by several unions, business, labor and civic organizations in the private sector, tend naturally to favor members of their respective associations, which would result in danger of leading to the Supreme Court to people who respond to interests of caste or class. I leave this observation noted no offense to anyone. Another measure that, in my opinion, hinder the appointment of people whose resumes do not justify their access to the Supreme Court would be to prohibit the legislature start the corresponding process of ratification of judges before expiry of a reasonable period - eg two months - counted from the Executive to respective appointment, all with a view to give the whole community a reasonable time to evaluate, credentials of judges appointed by the Executive. So it would defeat the harmful practice to ratify such appointments drums beating.
THE PROPOSAL OF DOCTOR EUSEBIO MORALES In 1922 Dr. Eusebio Morales, one of the best brains structured has told the country, after warning us that “administration of justice or no uncertain is the phenomenon that deeply affects and disturbs the social organism” proposed that the Supreme Court as well as being selected among the best lawyers in the country, were appointed for life , ensuring adequate remuneration and even pension them when withdrawn. His proposals have been cast aside as useless junk and placed on the agenda of
do y ratificada por las dos terceras partes de la convención nacional del partido, así como sometida a referéndum de los electores del circuito electoral correspondiente y contar con el voto favorable de las dos terceras partes de estos electores, todo lo cual hizo impracticable la revocatoria. A raíz de la aprobación de la ley 14 de 2010 se produjo un transfuguismo sin precedentes en nuestra historia, que le permitió a Martinelli controlar el órgano legislativo. Francis Fukuyama, “Political Order and Political Decay”, Straus and Giroux, New York, 2014. Francis Fukuyama, op. cit. supra., pág. 487; véase también Nicolás Berggruen y Nathan Gardels, op. cit. supra., pág. 63. Francis Fukuyama, op. cit. supra., pág. 505.
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INVITED WRITER things that are only treated when they get off indefinitely. Supreme Court. Are therefore fifty different jurisDon’t think it necessary to say that proposals for Morales, visibly, are designed to ensure that competent jurists and upright dare, after a certain age, to devote the rest of his professional life to the exercise of the important functions that correspond the Supreme Court. Its adoption would benefit the country.
dictions in which civil disputes that arise between natural or legal persons domiciled in each state are settled and criminal cases that are within the state courts.
There is also a federal judicial system, which has its own jurisdiction, culminating in the Supreme Court of United States. However, it should explain that almost all the cases that come to the court raised in an action called “certiorari” whose admission by the US Court is entirely THE JUDICIAL DEFAULT AND ITS REASONS discretionary. This means that the court can refuse, as indeed rejected, without any explanation, thousands of In another vein, I note that, as is common knowledcases on which no interest rule. Hence, as stated aboge, all judicial offices of our country are overworve, the Court may simply fail a hundred cases a year. ked, including the Supreme Court. The reason is obvious: the failure of the budget that is allocated to The management system of Panamanian justice is the judiciary. From there dwells much-criticized. quite different. In Panama Supreme Court is obliged to deliver judgment of merit in all cases that In the case of Supreme Court there are two ways come to its attention, except those rejected for forto relieve this burden. One would drastically limal defects. The workload is therefore enormous. mit the number of cases that reach Supreme Court. The other would be to increase the number of judTo be able to appreciate what other countries have esges. I believe that the nine people for over half a centablished regarding the number of judges serving litury team are unable to decide, with necessary weight tigation and causes in Panama are aware of the nine and speed, thousands of cases annually should fail. justices of the Supreme Court, I note that, for examOf these two possible solutions I opted for the latter. ple, in Spain, Supreme Court has 80 judges and, moreover, there is a 12-Constitutional Court judges. Some will replicate me if you can hear the cases before them are aired in United States the nine justiIn Colombia, the Supreme Court are 23 and also called ces of the Supreme Court of that country, which has the Council of State, which addresses the contentious300 million inhabitants, it is incomprehensible that administrative business in Panama are the responsithe nine Panamanian judges can’t make another so bility of the Supreme Court has 31 judges. Moreover, much. What happens is that the US Supreme Court, the Colombian Constitutional Court has 12 judges. if anything, gives about 100 sentences per year They are thus 66 judges in Colombia serving businesand no more than one who has to dictate Panama. ses in Panama competence nine of our Supreme Court. It’s here a very brief reference to the management Finally I note that in Costa Rica the Supreme system of American justice. There, each of the fifCourt is 22, namely: five in each of the three Casty states has its own system of justice and its own sation and seven in the Constitutional Court. 10Esta comisión no puede limitarse evaluar a las personas que se autopostulen para el cargo de magistrado, sino que debe hacer un esfuerzo serio por dar con los mejores juristas del país y convencerlos de que acepten figurar en la lista. 11Véase el discurso pronunciado por el Dr. Morales en el acto de graduación de abogados en 1922 de la Escuela Nacional de Derecho.
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INVITED WRITER I need not suggest the precise number of jud- troller General of the Republic, our Constitution, as ges should be our Supreme Court, but insist stated above, does’t mention express the said function, that should be enough over the current nine. but if establishes two bodies to exercise, giving, incidentally, the same name they have in Colombia and subsIn this vein, it’s not irrelevant to note that our Constitu- cribing, mutatis mutandis, the same duties and powers. tion allows the number of judges to be increased by Law. So has our Basic Law. Were doctors Moscote, Alfaro and The Public Ministry, top boss is the Attorney or Chiari, authors of the draft constitution submitted to the Attorney General of the Republic include, in both Constituent Assembly elected in 1945, who justified this countries, among others, the function of monitowise measure to be noted that the growing needs of the ring the official conduct of public officials, incluadministration of justice which serve to determine the ding elected and take care that all they discharnumber of judges who must compose the Supreme Court. ge their duties as well as that of prosecuting crimes and violations of constitutional and legal provisions. SPECIALIZED FUNCTIONS IN ELECTORAL AND CONTROL AND BODIES THAT THE EXERCISE
The Comptroller General of the Republic, in turn, corresponds to oversee and regulate all acts of management of funds and other public goods, to ensure that such acts are undertaken for correction, neatness and honesty.
At the beginning of my speech I referred very last, call control function, without mentioning it by name, The country is witnessing fatally mess that ensues when enshrined in our Constitution to create two bodies these two bodies, as in the previous administration, that specialize in exercise: Attorney General’s Offi- fail to fulfill the duties that the Constitution imposes. ce and the Comptroller General of the Republic. In fact, all organs of State control functions. The National Assembly, for example, in addition to its attribution to legislate, has the power to subject the executive to a sort of political control by forcing senior government officials to publicly explain the actions or omissions committed in the performance of their charges. The executive body, in turn, can veto laws passed by the National Assembly.
That unfortunate experience tells us the most persuasive eloquence of duty in the current government to ensure that the control function assume, from now on, the prominence it should have, by the court, in the ongoing fight against is incurso the corruption and commit all sorts of crimes.
For this purpose, it is necessary that, of course without haggling, endowing the judiciary, the The court, meanwhile, runs an obvious control Attorney and the Comptroller of human and budfunction to the extent that can override all rules and getary resources to undertake, with chances of infra acts, from the law until all administrative acts. success, the daunting task they will face soon . Unlike the Colombian Constitution of 1991, the Title The flood of complaints that since the change of goverX is the inspection bodies and, within it, regulates the nment, has fallen on those institutions - rain, insurance, powers and duties of the Public Ministry and the Comp- io grow worse in the near future - demands that the go13“Proyecto de Constitución Nacional y Exposición de Motivos”, Compañía Editora Nacional, Panamá, pág. 90. 12Pienso que la Constitución debe prever una edad de retiro obligatorio, como lo hace, por ejemplo, la de Puerto Rico.
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INVITED WRITER vernment is not negligent in performance of that duty. Otherwise, the capacity of staff of the three institutions will inevitably overwhelmed and unfortunately the good omen that meant having appointed head of the Attorney General and Comptroller persons of recognized moral and professional standing, it will become frustrating. I will add only two words about the Electoral Tribunal. It’s, visibly, public corporation, then the invasion that hit the country in 1989, fulfilled, seamless, delicate and comprehensive administrative powers, judicial and quasi-legislative who are in charge. This is evidenced by the fact that Tyre and Trojans - except lacking credibility isolated voices - have accepted the outcome of all elections and other popular consultations that have taken place under his leadership. Should therefore protect the Electoral Tribunal and all its dependencies of any attempt to undermine their independence and reduce their powers.
FINAL WORDS I conclude this already too long conversation with remarks that perhaps out unnecessary. Every country has a myriad of problems that no law can be resolved, no matter what the range that law occupies in the pyramid Kelsen. In our case, between such problems include the high cost of living, poor supply of drinking water, bad distribution of wealth and many whose content will not escape the judgment of those who understand that socioeconomic problems are not amenable to resolved by the simple approval of legal standards, whether they are of the highest and noblest tenor. Abound apparent overriding public interest attacking advise us without delay problems as they’ve allowed me to state in the preceding paragraph. To do no need constitutional reforms of any kind, but the implementation of public economic and relevant tax policies, whose implementation is more than enough support in the Constitution.
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Instead, the need to ensure the country on a permanent basis, the actual independence of the judiciary requires significant constitutional reforms. I have mentioned some and certainly most authoritative voices than mine propose other, perhaps more effective. The task of approving such reforms, given their importance, calls us all to not lose heart in the effort to bring to fruition. With this in mind, I take the liberty of paraphrasing Article 16 of the Declaration of the Rights of Man and of the Citizen and say that “every society in which the guarantee of rights is not assured, nor the actual independence is secured of bodies exercising the judicial, electoral and control functions, has no constitution. “ As a finishing touch, I conclude by saying that the challenge of Panamanian society in the twenty-first century is to raise the judiciary to Category bulwark of our democracy and the judiciary, meanwhile, accept and carry out without hesitation that huge responsibility. If this happens we will Constitution. Otherwise continue tumbling. This is my view of things. L&E
NORMS OF INTEREST CONTROLLERSHIP POSSESSES NEW DIRECTION (DIAF)
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y Decree No. 072-15 Leg. of January 12, 2015 dictated by the Comptroller General of the Republic National Directorate of Research and Audit Examiner (DIAF), which was created to streamline and strengthen the audit activity to determine the acts of involvement of public funds and assets are carried out correctly and as provided by law. Among functions of the DIAF are those of:
1. Plan, monitor and coordinate research audit acts
of management of funds and other public goods that are required by the prosecutor or competent judicial authorities, which are assigned directly by the Comptroller.
2. Identify, prevent, deter and prosecute fraud and corruption that involved public and private servers from being in the management of public funds.
3. Examine the contents of the affidavits of patri-
monial state forced to submit to be fulfill this obligation public officials.
4. Investigate ex officio or upon complaint, for 15.
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
unjust enrichment to be required to submit Affidavit public servants. Standard features, investigations and audits carried out by the DIAF must be authorized by the Comptroller General of the Republic. With the creation of the DIAF the Sectoral Department of Forensic Audit and Fraud Prevention of organizational and functional structure of the Directorate of General Comptroller Audit removed. L&E
NORMS OF INTEREST
PROGRAM MODIFYED TO PROMOTE AGRICULTURAL AND AGROINDUSTRIAL MODERNIZATION
T
he Ministry of Agricultural Development Executive Decree No. 1 of January 13, 2015 modified some articles of Executive Decree No. 46 which regulates the Program for the Promotion of Agriculture and Agroindustrial Modernization. Based on the changes we have modified items were 3, 7, 10, 16, 20 and 21 and the same focus on: 1. Article 3 which relates to the members of the Commission, is modified in the sense of eliminating the National Revenue Authority, which is replaced by the Directorate General of Revenue, Ministry of Finance. 2. For Article 7 which deals with selection of projects to promote agricultural modernization and reform in the sense of establishing within the selection criteria, Project Description; Financial Aspects; Environmental Aspects; Organization for Implementation and Impact. 3. Article 10 provides that goods and values of the amount of direct financial assistance shall be established by the Program Commission before they worked with an attached list. 4. With regard to Article 16 provides that requests for direct financial assistance shall be submitted to the Technical Unit and this in turn forward it to the Commission for approval or not, before the reform were presented in the Commission without passing through Technical Unit. Similarly, term is extended 3 to 6 months and then apply
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
for inspection Productive Development Certificate. 5. It’s established that until June 30, 2015 the people who choose the Promotion and Modernization Program will not submit certification packed and packaged enterprise production inspection or verification. L&E
NORMS OF INTEREST
DISTRICT OF PANAMA HAS THREE NEW CORREGIDURIAS
T
he Municipal Council of Panama by Agreement No. 186 of December 11, 2014 created three special Night Corregidurías, which have jurisdiction over offenses committed within their schedule as are: 1. Sell and consume alcoholic beverages without the permits. 2. Operate bars, pubs, gardens and other places of sale of alcoholic beverages outside the permitted hours. 3. Generate or produce excessive noise on local or residences. 4. To build, remodel or add or generate noise with equipment or machinery outside the hours allowed without permits. Within this context, Corregidurías may suspend these activities or shows that don’t have the permission of the Mayor of Panama, as well as order the seizure or detention of goods, things or effects used in activities which contravene municipal regulations. From a reading of Agreement No. 186, obvious that it was issued considering that due to the economic growth of the District of Panama, has increased local commerce and evening activities and with them
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
has also increased violations of the municipal police regulations concerning the sale and consumption of liquor, noise control, to construction, operation permits, among others, and which are the responsibility of the Municipality of Panama. L&E
NORMS OF INTEREST
APPROVED RULES FOR CERTIFICATION
OF SEAFARERS
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
y Resolution ADM No. 003-2015 of January 6, 2015 Panama Maritime Authority issued the Regulation regulates administrative procedure whereby automated processing applications for certification of seafarers is managed, who work on ships Panamanian flag. In this context, has created a program database of Brokers of Directorate General of Seafarers, in which users, businesses and lawyers to manage requests for certification of seafarers must register with system Registration. The goal of the program is to keep track and control of applications received and optimizing steps and procedures performed in addition to the tools available that allow easier and faster access to the required information. Similarly, authorizing the Directorate General of Seafarers to implement and regulate an automated processing of licenses sailors and officers electronically to the advisor registered in the Registry, so that the time is shortened delivery of documents and the identification and control of system users is maintained. The resolution in question, took effect on January 7, 2015 and hopefully in effect complying with the provisions therein and be guaranteed to users, companies and lawyers who perform these procedures, speed and certainty as to the services offered by the Maritime Authority of Panama, among other things, must ensure compliance with the conventions to which Panama is a party. L&E
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NORMS OF INTEREST
JOINT SECURITY AND TOURISM FORCE IN THE BEACHES Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
T
he Ministry of Government issued Executive Decree No. 2 of January 7, 2015, by which the Joint Safety and Tourism Task Force is formed, which will be composed of the National Police, SENAN, SENAFRONT, Institutional Protection Service SINAPROC, Panama Maritime Authority, ANAM, the Tourism Authority, Ministry of Health and the Single Emergency System. The Joint Task Force, will be responsible for monitoring and ensuring the safety of all persons who attend the beaches, rivers, spas, hiking trails and tourist sites or similar interest and any public or private activity in the country. L&E
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CONSULT, DOCTRINE AND JURISPRUDENCE
BAY WETLAND: ASSEMBLY CLEANS ENVIRONMENTAL FACE
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y Bill No. 39, approved on third reading on 12 January 2015, National Assembly took a critical, important and necessary step for the preservation of wetland Panama Bay, as Bill said states protected area the wildlife refuge Bay wetlands Ramsar Site Panama, besides establishing the geographical limits of this wetland.
Maybé Mendieta - Abogada maybe.mendieta@rbc.com.pa
rrestrial, fluvial, lacustrine and marine ecosystems, considering their ecological and economic importance to the country, at the request of the Republic of Panama, was appointed under Wetland of International Importance, included in the list of RAMSAR Convention on October 20, 2003, becoming the 1319 site worldwide, was, for a long period of time, disrupted by some legal actions and the support they received them, by the previous administration the National Environmental Authority, specifically Administrative Complaint for Annulment filed against Resolution No. AG-0072-2009 of 11 February 2009.
This bill that was so necessary precisely because previous administration not only neglected but made every effort to ensure deterioration and near extinction of this important natural resource, comes to establish a legal protection regime that will allow future generations enjoy a greater environmental balance and preserving ecosystems that live and thrive in wetlands. Administrative Complaint of Nullity and Provisional Suspension of ResoluThat is why we consider important pre revi- tion No. AG-0072-2009 of February 11, 2009 sing the content of Bill No. 39, make a brief ac- Mr. Constantino González Rodríguez promotes, befocount of the cross path before the issue of this le- re Third Chamber of the Supreme Court, Administragal protection regime Wetland Panama Bay. tive Contentious a Petition for Annulment to declare Resolution AG-0072-2009 of February 11, 2009 issued Background of Bill No. 39 by the Minister for Issues Related null EnvironmenIt’s necessary to consider that this bill stems from tal Conservation and General Manager of the Natiothe immediate need to restore a legal regime of wet- nal Environmental Authority, through which resolland preservation, considering that initially went ves to declare protected Wetland Panama Bay area. through Resolution AG-0072-2009 of 11 February 2009 issued by the Minister for Issues Related to En- Demand is subject to division and proceed with vironmental Conservation and General Manager the admission in May 2012 and a copy thereof of the National Environmental Authority, which fi- is sent to the National Environmental Authoriled the Wetland protected area Bay of Panama. ty (ANAM) to render a report explaining behavior. In this regard, the ANAM compiles a technical and However, the Wetland Bay Panama composed of te- legal recount and summary of the dossier called “ad-
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CONSULT, DOCTRINE AND JURISPRUDENCE ministrative record of creating protected area”, which makes the proviso “that no public consultations or the existence of technical reports were conducted by Management of protected Areas and Wildlife, to substantiate the need for this protected area.” A contrario sensu, the Office of Administration through the Vista No. 384 of August 3, 2012, rejected arguments presented by the plaintiff and requested that the Board declare that it’s legal Resolution No. AG-0072-2009 of 3 February 2009, considering that “to proceed to the formal declaration of a natural area as a protected area, no need to convene citizen participation, because, besides not affect the rights and interests of the community and treated a measure that serves a constitutional mandate, it is a decision that finds support in studies, plans, projects already carried out on this area, and support the need to establish it as such, in pursuit of public interest and for benefit of present and future generations. However, the Third Chamber of the Supreme Court ordered, by Resolution of April 27, 2012, the Provisional Suspension of Resolution AG-0072-2009 of February 11, 2009, using as a legal basis in Article 24 and Article 25 of Law No. 6 of 2002 on the public consultation, because this act may affect the rights and collective interests considering that the use of land for people with titles and possessory rights are within the limits that were the protected area, implying the possible involvement of the interests and rights of a particular group. Lifting of Provisional Suspension of Resolution No. AG-0072-2009 of February 11, 2009 Considering possible serious effects on different ecosystems that could become the order of Provisional Suspension of the effects of Resolution AG-0072-2009 of 11 February 2009 to the Panamanian population, various environmental associations, political parties and law firms in the country (Marviva Foundation, Panama Audubon Society, Environmental Advocacy Center (CIAM), Association of Trial Lawyers of Panama, law firm Rivera, Bolivar and Castañedas and Democratic
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Revolutionary Party (PRD)) demonstrated against it in Interested Third Party their condition and requested the lifting of the order suspending the contested measure. After several months of struggle, our corporation of Supreme Justice heard the voices of the Panamanian population, and returns its status as the Wetland Protected Area Bay of Panama, through the Resolution of April 4, 2013 of the Third Board of the Supreme Court, granting the request of lifting the provisional suspension measure the effects of Resolution AG-0072-2009 of 11 February 2009. The Third Chamber referred to wetlands within the content of the resolution, as “areas of special ecological importance”, stating that this condition stems from the signing of the Republic of Panama to the Ramsar Convention; without neglecting the Panamanian State is subject, by constitutional mandate, to carry out the conservation and protection of ecosystems in the area. Also acknowledged the effective judicial protection of diffuse interests in an administrative proceeding, considering that endangered the biological richness of Panama Bay Wetland area. Also acknowledged that it wasn’t necessary public consultation argued by the plaintiff, building on the constitutional powers (Articles 118 and 120 of the NC) and legal (Articles 74 and 95 of Law No. 41 of July 1, 1998; Law # 2 of 12 January 1995) granted to the National Environment Authority. Judgment of December 23, 2013 of the Third Chamber of the Supreme Court Assorted procedural stages, the Board, under the presentation of Judge Victor Benavides, and with the approval of the Judges Luis Ramon Fábrega and Hernán De León, proceeds to solve demand in the background, after the following considerations: 1. Legal Environmental Protection originates in our Constitution, Title III entitled “Rights and Duties of
CONSULT, DOCTRINE AND JURISPRUDENCE Individual and Social” specifically Chapter 7 °, articles 118-121, on Ecological System of the Republic of Panama. 2. The Panamanian Constitution is one of the first in Latin America to raise constitutional, environmental concerns, incorporating constitutional principles on general rights of the population, derived from the duty of the State to provide adequate healthy environment free from pollution and for sustainable human development. 3. The Republic of Panama abides by the rules of international law, namely the Convention on Wetlands of International Importance especially as Waterfowl Habitat Convention, signed in 1971 in the city of Ramsar, Iran, known as the Ramsar Convention (Act No. 6 of 3 January 1989) is mandatory for the country and therefore for the Administration and Managed. 4. The Chamber conceptualized the term wetland under the Ramsar Convention precept. Similarly, prepares a study on the existence of other recognized as Wetlands Ramsar Site, located in the Republic of Panama, being: Wetlands Gulf of Montijo, wetland San San Pond Sak Wetland Wetland Punta Patiño and Damani-Guariviara. 5. Addresses the issue of the Ramsar Convention: shaping, mission, wise use, conservation and wetland resources. 6. Provides for the review and analysis of the legal rules that the plaintiff believes have been violated, determining that these rules have not been violated, since the study of them is determined that the National Environmental Authority does not require public consultation to establish a protected area, and therefore a wetland, the wording of Articles 118 and 120 of the Constitution; Law No. 2 of 12 January 1995 and Articles 74 and 95 of Law No. 41 of July 1, 1998.
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Based on the foregoing, the Chamber DECLARES THAT IS NOT ILLEGAL Resolution No. AG-00722009 issued by the National Environmental Authority (ANAM) and published in Official Gazette No. 26.221 of February 11, 2009; and consequently, NO ACCESS to the claims made in the application. Consequently, the Panama Bay Wetland regains its status as a protected area. However, the legislature with the approval of Bill No. 39, as we said above, is trying to preserve the status of protected area and wildlife refuge this important natural resource through a legal regime. Bill No. 39 Bill No. 39, recently approved the third debate, declared protected area the wildlife refuge Ramsar Wetland Site Panama Bay, with the specific objectives: 1. Establish mechanisms to conserve, protect and restore existing ecosystems within the area (wetlands, forests, marine and coastal species) in order to promote rational use of natural resources to maintain ecological and evolutionary processes, gene flow and diversity of flora and fauna; 2. Implement and execute processes to promote the achievement of the benefits and ecosystem services through the maintenance and strengthening of the ecological character of wetlands and other associated systems within protected area. 3. Ensuring the integrity of wetlands protected area enhanced its role in storing carbon and adaptation to climate change and mitigating floods and rising sea level. Moreover, among the most outstanding aspects of this project we mention that defines the protected area Wetland Panama Bay between the portion of the coast of the Bay of Panama in Juan Diaz in Panama City, District Panama to Chimán estero community in the district of the same name, in the Province
CONSULT, DOCTRINE AND JURISPRUDENCE of Panama, bordering the north part of the districts of Parque Lefevre, Juan Diaz, Tocumen, Pacora, Chepo, Santa Cruz de Chinina, Pásiga, Union Santeña and Chimán; to the east of the township Chimán, to the south by the Pacific Ocean and west of the township Parque Lefevre and Juan Diaz, part of the districts of Panama, Chepo and Chimán province of Panama. Bill considered natural resources of public interest and special state protection, all biotic and ecosystem partners and interconnected with the land, subsoil, seabed, forests and waters lying within the coordinates that define the protected site. In this sense, contains prohibited activities within the area such as: - Introduction of exotic species into Panama Bay Wetland. - The entry of new occupants to land forming protected area, without authorization of ANAM and endorsement of National Wetlands Committee of Panama, after analyzing the case. - All infrastructure, work or project until the respective Management Plan establishes land use Wetland Bay of Panama, except those that have been approved prior to the enactment of Resolution AG 0072-200 declaring a protected wetland area to the Bay of Panama, among others. This Act shall take effect from the day following its promulgation in Official Gazette. In this case we thought it was wise criteria legislators of our country, which fairly and aware of the risks that our environment can cope without due receipt of these ecological zones serving for the survival not only of biological diversity but economic, social and cultural livelihood of the region have risen to the rank of Law, the status of protected Area Wetland Bay of Panama, considering that it involves an environmental aspect, scientific, recreational, social, cultural, economic and many other important aspects of their ecosystems and their components, na-
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tional interest in the protection afforded to the people. The news of adoption of Bill No. 39 could consider it an achievement for the society, after all efforts to conserve this important site, while bearing in mind that we must be aware that all Panamanians would comply with provisions of the standard, once it is sanctioned by President of the Republic, Juan Carlos Varela. L&E
CONSULT, DOCTRINE AND JURISPRUDENCE
FJUDGMENT OF THE SUPREME COURT OF US REQUIRES JUDICIAL ORDER TO REVIEW A CELL PHONE
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Source: Supreme Court of the United States
ased on the Fourth Amendment to the Constitution, the Supreme Court rules that should have a Court order to register the cell phone of a suspect or arrested.
Chief Justice Roberts
ting privacy, as the Fourth Amendment is established. Obviously the Fourth Amendment doesn’t refer “The right of the people to be secure in their persons, houses, to cell or information they papers and effects, against unreasonable from unreasonable found. But over decades searches and seizures, shall not be violated, and no Warrants courts have been extended this doctrine to new technoshall issue not rest on probable cause, are supported by Oath logies such as automobiles, or phone calls. Today it’s turn or protest and particularly describing the place to be sear- of the cell. Making a modern interpretation of legal text, ched, and the persons or things to be detained or seized. “ explains that intervention of cell phones “at stake and interest of individual privacy than a simple review body.” The determination of the Supreme Court, is the result of unification of two cases from lower courts, petitioners, Ri- This judgment is controversial, they reflect different opiley and Wurie lords. The two petitioners requested that evi- nions, and we scored some; The Society of Chief Polidence be deleted found in their cell and obtained from that ce Officers, calls it “disappointing and certainly will iminformation because their cell had been revised without pact (....) Opportunities to investigate and combat crime.” a search warrant, which violates the Fourth Amendment. The American Civil Liberties Union, praised the deFor Riley was arrested for a violation of traffic stop- cision as “very important for constitutional rights.” ped, he checks the cell, the call log has been linked The Center for Democracy & Techology in turn qualify to a shootout, is Plead and convicted of the crime. the failure of “huge victory for the right to privacy.” “The For Wurie, is arrested and reviewing cell phone are ha- Court clearly recognizes the impact of modern technoloving records saved as “HOME” this leads to a burglary gy in our daily lives and the importance of the observance where drugs, weapons and money are, it is concluded on of the provisions of the Constitution in Digital Age. “ L&E the basis of information from cell to that is their home. The Fourth Amendment to the United States Constitution provides:
Therefore the Supreme refuse testing, alleging they were obtained from anti-constitutional form, because not had the warrant for review of cell. Justices of the Supreme Court had to strike a balance between the need to punish criminals while respecting and protec-
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CONSULT, DOCTRINE AND JURISPRUDENCE
I
CITIZEN COMPLAINT COMPLAINT OR INFRINGEMENT OF URBAN RULES
n recent days, the Office of Administration issued the Consultation C-52-14 of 10 December 2014, by which absolves question posed by Mayor of the District of Panama, in the sense of knowing if a citizen files a complaint or complaint to Urban Municipal Authority to initiate a sanction process for possible breaches of planning regulations contained in Law 6 of February 1, 2006, can be considered a party to the respective process; and whether it is feasible that citizen present writings, actions or resources, besides the written complaint or denunciation. On that basis, the Office considered that according to paragraph 1 of Article 22 of Executive Decree No.23 of May 16, 2007, have the sanction process for violations of planning regulations, which is titled “Procedure Legal technician urban Municipal Authority “is carried out by municipalities to ensure compliance with the Act 6 of 2006,” which regulates land use planning for urban development and other provisions.” Add the Authority, standard applies to establish that municipality is involved in the sanctioning processes for violations of planning regulations, compliance with provisions aimed at urban development and environmental protection, we are in presence of diffuse interests that correspond the community and should be protected.
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Source: Office of Administration
In this respect, brings up the definition of “diffuse interest” contained in Article 2 of Law 41 of 1998, “General of Environment in the Republic of Panama, as it was amended by section 1 of Act 65 of 2010: “Article 2 … Diffuse interest. Is one that is scattered in a community, corresponding to each of its members and not emanating from titles, duties or specific actions.” So that legitimacy of people is recognized to promote administrative processes by involvement or damage to environment, in view of collective and diffuse interests. Taking into consideration the above mentioned, the Attorney concludes by noting that the citizen who files a grievance or complaint with the Municipal Town Planning Authority for alleged violations of planning regulations, has standing to act on the respective process to be covered by the diffuse interests it follows from the rules contained in the Act 6 of 2006, by which the zoning for urban development is regulated; and therefore, may submit written within the process, actions or remedies it deems appropriate in the interests of the community. L&E
CONSULT, DOCTRINE AND JURISPRUDENCE
RECOVERY RATE FUND FOR SAFETY AND HEALTH IN CONSTRUCTION IS INSCONTITUCIONAL
T
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
he Plenum of the Supreme Court under presentation by magistrate Harley J. Mitchell D. issued a decision by which declares that it’s not unconstitutional section 5 of Executive Decree No. 15 of 3 July 2007 that adopts measures urgency in construction industry in order to reduce incidence of accidents; however declared unconstitutional Articles 12 and 13 of the aforementioned Executive Decree.
truction industry outside the Constitution, which provides that all taxes should be created by law and not by an inferior law as an executive decree.
He adds that allow the creation of taxes through formal law, is a condition imposed intended to determine the legal origin of the tax, since it can’t be established by decree or other legal forms of administrative nature. In short, the House, to arrive at the decision came to It’s noteworthy that the Court took four years to puthe conclusion that Articles 12 and 13 of Decree proviblicize delivery. ded for payment of tribute and brought up the definiArticle 5 is the principle that “The Ministry of La- tion of developing the doctrine rate and also referred to bor and Workforce Development appoint the Safe- the jurisprudence issued by the Court in similar cases. ty Officer works that according to this decree requiring the services of that officer and also is vested Considered Parliament that the rate under review, with the power to change in the event that ob- was created by the Executive Branch outside the serve that does not fully comply their functions.” constitutional mandate contained in Article 52 in The Plenary considered that article is not unconstitutio- conjunction with Article 159 paragraph 10 of the nal, since the State by constitutional mandate is required Constitution, which declared the unconstitutionato develop a national policy on hygiene, health and safe- lity of Articles 12 and 13 Executive Decree No.15. ty, in order to ensure the protection of his workers rights. The ruling in question, had the dissenting opinion of Judge Harry Diaz, who argued that to reach that deArticles 12 and 13 create the Fund for Occupa- cision was based on the fact that rules are estimated tional Safety Hygiene and Health at Work in the constitutional regulate the construction industry is Construction Industry and the obligation of the an activity high risk increases with the use of machipromoter of the work or contractor consign a con- nery, tools and equipment own activity, which is why tribution that was set according to value of work. we must weigh prevalence of rights and guarantees. Estimated Parliament that these articles are unconstitutional, because the Executive Branch can not He added that “to confront the tax versus social securicreate a fee for monitoring and verifying the safe- ty protection, based on prevailing fundamental rights ty, hygiene and occupational health in the cons- such as protection of life, security of persons, among
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CONSULT, DOCTRINE AND JURISPRUDENCE others; it’s clear that on this occasion, is the social interest that should prevail; otherwise it would unprotect the most vulnerable in employment relationship. “ Interestingly, reasoned approach of the Court to declare unconstitutional analyzing principle of tax law, which is the finding that only through a rule into law, can define each and every one of the elements tax liability, that is, taxable event, obligors subject, system or basis for determining taxable event, date of payment, offenses, penalties and exemptions and legalized organ to receive payment of taxes. During the past year Ministry of Labor and Workforce Development was put into the task of imposing fines construction firms for alleged breaches in recording rate, processes that still airs on the Ministry and whose legal basis Articles 12 and 13 of Executive Order No. 15, which as noted have been declared unconstitutional.
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The declaration of unconstitutionality of defendants articles, produces subtraction of matter, so that could harm the Ministry of Labour impose or maintain a penalty imposed on an employer on the basis of a law that has been declared unconstitutional. In this regard, we have to by Cabinet Resolution No. 14 Tuesday January 13, 2015, the Cabinet authorized the Minister of Labour and Workforce Development to propose to the National Assembly, the bill for which are adopted measures in the construction industry in order to reduce the incidence of accidents at work. L&E
POLĂ?TICS POLITICAL PARTIES, SINE QUA NON REQUIREMENT OF DEMOCRACY
A
Rafael FernĂĄndez Lara rbcweb@rbc.com.pa
n excellent definition of a political party, would be the group of individuals who work together in favor of an established doctrine, based on the way to run a country, which involves making decisions in all that relates to public policy, which can enhance the living conditions of people through different preferences of ideas.
In Panama, beginning and soon after our independence in 1903, there was a small number of political parties that was rising to become long in one-party multi, political system considering that throughout the republic Panama, from 1903 to the present, there have been about 150 political parties and 40 electoral coalitions.
The political groups have their origin with emergence of a form of government, democracy, that evolved over time and what we know today. Political parties are appropriate and irreplaceable performers political environment. When there is genuine democracy, parties play very important tasks. This is why part of modern states and in a modern democracy are essential and indispensable in the incorporation of representative bodies and government, as well as by their advocacy between the state and civil society. They are vital for being groups that legitimize and maintain many of the institutions of the state, making social and political functions, defining social development, to the point that so far there are not qualified to replace collective reality that some forget it.
Thus, in the 1936 election tournament involving eight (8) political groups. In 1940 nine (9) participated. In 1948 participated seven (7) and 10 in the election process 1952. In 1956 elections, only involved two (2) parties that in February 1953 the Legislature passed Act of 45,000 adherents limiting the application of party candidates who have achieved that number of votes in the 1952 tournament.
Political organizations recognized by the Electoral Act are the builders of the democratic system, which play an important role in processes of transition to democracy and are guarantors of deepening and consolidation of it. The duly constituted political groups concur in the contest for political power and the formation and representation of political interest of citizens, primarily through the election campaigns.
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When reduced to 5,000 the minimum number of members in political groups increased concurrence of these in the 1960 elections, in which seven (7) partisan organizations. In elections of 1964 attended by 19 duly constituted political groups, with the case of higher voter turnout in Republican history. In the 1968 elections 10 political organizations were present. On October 11 of that year’s coup and political parties were abolished by the military dictatorship by Cabinet Decree 58 of March 3, 1969 occurs. The military again allowed registration of political parties, and as a result, in the 1984 elections involved 15 duly constituted electoral organizations. In the 1989 elections, 11 political groups. In the 1994 electoral
POLÍTICS contest, 16 party organizations. In the 1999 elections, 12. In 2004, only seven (7) political parties participated. In presidential election 2009 elections participated eight (8) parties, and finally in the last elections in 2014 involved seven (7) political organizations. All constitutions that has taken country during the Republican era have been considered and referred to political parties and organizations representing citizens in elections, except for much of the duration of military command.
for those who call themselves independent and that some of them to light the country are participating in politics, coupled with small groups with limited membership, sheltered within what is called “Civil Society” and that how they act and think, give the impression to a large segment of the population that sometimes seek access and influence within the government level with and sometimes excluding political parties, based according to them, these are discredited and are magnets to manifest distrust that certain citizens have them, organize themselves new political parties, grouping people who think and act like them, thus renewing the political life of the country or at least revitalizing existing parties, representing possibly a new alternative and option electoral political parties for the benefit of democracy and the country.
Furthermore, according to latest electoral roll preliminary published by the Electoral Tribunal until August 31, 2014, two (2) million 411 thousand 754 eligible voters, 943,629 aren’t registered political parties, which means that more than half of the voters of the population, one (1) million 468 thousand 115 Adding to all this, it is crucial to note and foremost not igeligible voters, for whatever reason, have been re- nore and reiterate that political parties are irreplaceable gistered in the legally constituted political parties. protagonists of the political scene and the very essence of democracy. If there are no political parties, no democracy. However, it’s important to highlight and recognize the crisis affecting our political parties and disrepu- So one can hardly speak of democracy without rete to society, because instead of being ideological or- gard to political parties, and thus, politicians, becauganizations, most unfortunately have become elec- se they are the main articulators and aggregators of tioneering groups, led at times by bad leaders, who social interests and not to forget and always rememadvantage of their structures only for personal gain. ber that these are a sine qua non of democracy. L&E Political parties shouldn’t be limited to the sole purpose of winning in elections or have some representation in the Legislature, but also have an ethical duty to proceed to the analysis of national affairs and public affairs and rule over them, and seek remedy thereof. The ethical probity is not only a treasure that should prevail in parties but they must fight to restore part of the missed credibility and consolidate democratic system of government. Despite criticisms, sometimes justified, we can make to the parties, we can’t ignore that through them the people directly involved in the choices of its authorities and thus are central to the management of political affairs. Faced with the political reality we live, it would be wise
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PANAMANIAN ECONOMY
DON´T PLAY WITH OUR CANAL (II)
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I. Roberto Eisenmann, Jr. Source: La Prensa rbcweb@rbc.com.pa
days ago I wrote a first article with this title that claimed it, both trade unions and the management of our Canal, cessation of destructive extremism that had been unleashed on both sides with respect to labor relations. As a result, I had the privilege of talking long and deep with both parties. I found dangerously inflexible positions, but I found that basically this was more due to lack of communication and emotion than by differences of substance. Then came the summons Administrator of the National Assembly, which was attended by a lit bar canaleros. In many ways it was a tough session for the administrator, but aside some demagogic speeches, there were deputies from all the benches who spoke with logic and respect, and concluded with: “There is a problem”, “we must solve”, “is not acceptable our Canal has poor labor relations”, and so on. After all this, I know that there was a change of direction in the administration of the Canal; there were multiple meetings own administrator with union leaders; has started a process of reconstruction of lost confidence, and a new attitude of cooperation within the normal adversarial relationship of the parties. So it should be... and so it should be! Through a national consensus citizens of our country we build all regulations governing operations of the Canal. Were represented all political parties, all professional society, the whole guild society (workers and employers), all native peoples, students, and representatives from all geographical areas of our country.There nation was built with the presence of all citizens of the Republic!
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We all feel proud of the canal that during 15 years of Panamanian administration have shown that not only do well, but did much better than it did the world power (ie accepted by them). I have repeated and I perform: the canal and the canaleros are a demonstration of how good we Panamanians do. Our Panama Canal began with zero credibility and international prestige grew geometrically achieved. Today the Panama Canal is the brand to the world. For these reasons and many more, citizens follow closely what happens in the Canal, and we can’t allow any group (union or management) endanger the hitherto achieved. For this reason, we must support the canal against any extortionist attitude of contractors expansion. Let no one play with our Canal. So congratulations to the Union of Pilots, captains deck, the manager and the board for having succeeded, with change in direction occurred, overcoming the potential crisis that threatened our Canal. L&E My hug to all!
PANAMANIAN ECONOMY
COMMENT ON PRICE INDEX NATIONAL URBAN CONSUMER: DECEMBER AND AVERAGE ANNUAL 2014 BASE 2013 = 100
P
Source: CGRP Contraloría General de la República de Panamá
rice Index (CPI) in December compared with November 2014, recorded a low of 0.4 percent for both the National Urban and for the districts of Panama and San Miguelito, while for the Urban Rest was 0.5 percent. The group that showed greatest decline was 2.9 percent Transport due to drop in fuel prices; followed by groups Recreation and culture 0.5 percent, decline in the price of televisions and clothing and footwear 0.4 percent, down in jeans pants for women. The groups were Communications reflected increased 3.3 percent; Restaurants and hotels 0.3 percent and Miscellaneous goods and services and furniture, home furnishings and household maintenance, both with 0.1 percent. They were unchanged Food and non-alcoholic beverages and Education. When comparing 2014 with 2013 annual indices, the following changes are reflected: the National Urban 2.6 percent; for the districts of Panama and San Miguelito 2.7 percent and for the Urban Rest 2.6 percent. L&E
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PANAMANIAN ECONOMY
MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-NOVEMBER 2013-14 COMMENT
P
For January-November 2014, the major 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 poultry meat, tomato products and alcoholic beverages ; electricity consumption, water billing in the Republic; value of construction, additions and repairs; fuel sales and new car; value of insurance premiums; current revenues of the central government; and employment contracts registered in the MITRADEL. In turn, showed drop the sacrifice of cattle and pigs, hydro and thermal power generation and loans granted by the BDA, among others. From compiled indicators related to the world, presented positive sign, weight exported bananas, shrimp, ahi tuna, frozen, fresh fish and fish fillets, and fish meal and oil; addition, average rooms occupied in the city of Panama and visitor numbers and toll revenue and net tonnage transported by the Panama Canal. In turn, decreased the transit of vessels through the Canal.
1. Manufacturing industries: Positive variations in production of poultry meat by 6.7 percent, tomato by 7.0 percent, natural milk used for manufacture of products 7.8 percent, 5.7 percent alcohol and soft drinks by 1.0 percent. In turn, decreases were recorded in slaughter of cattle at 3.5 percent and 0.4 percent pig; also, production of pasteurized milk
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Fuente: CGRP Contraloría General de la República de Panamá
at 9.1 percent, 10.4 percent sugar and salt fell 5.7 percent.
2. Electricity and water: a. Electricity: The hydraulic power generation decreased by 1.9 percent and thermal generation to 3.7 percent; INEC surplus electricity generated by the Panama Canal Authority at 88.9 percent and electricity imported 177.9 percent - on the contrary, positive change in the National Institute of Statistics and Census reported. The total electricity consumption presented positive change of 4.8 percent, standing residential customers by 6.5 percent, 4.3 percent commercial, government 4.3 percent, 10.2 percent other clients, big clients 6.1 percent and 24.0 percent generators in. b. Water: The total water turnover in the Republic rose by 4.1 percent, specifically, the commercial sector by 3.9 percent, industry 5.1 percent, 4.5 percent residential and government at 0.7 percent.
PANAMANIAN ECONOMY 3. Construction:
The weight of exports of goods rose by 3.2 percent, highlighting the areas of: banana which grew 1.4 percent, shrimp 29.4 percent, yellow fin tuna, frozen, fresh fish and fish fillet 18.5 percent and flour and oil 68.5 percent fish. Moreover, negative changes in petroleum products by 13.1 percent, 30.2 percent pineapple, clothing 22.8 percent, beef cattle 9.7 percent, live cattle 72.3 percent, and hides and skins were reported in 13.1 percent.
The value of permits for construction, additions and repairs reported positive variation of 10.4 percent, standing residential construction in 25.4 percent; however, non-residential fell by 2.7 percent. At district level, the increases were: Panama with 15.6 percent, San Miguelito 107.1 percent and Arraiján 8.8 percent; however, Chitre, Aguadulce, Santiago, David and La Chorrera, grouped District decreased by 13.7 percent and Colón 55.2 percent. In output materials, ready-mix concrete de- d. Colon Free Zone: creased by 37.0 percent and gray cement 7.0 percent. Data not available
for
the
source
to
date.
4. Internal trade:
6. Hotels and passenger entry:
a. Sale of fuels for domestic consumption: Fuel sales recorded in gallons for domestic consumption increased by 6.2 per cent, of these gasoline grew by 7.3 percent, mainly, the 95 octane 16.4 percent and low sulfur diesel at 16.5 percent. Meanwhile, consumption of liquefied petroleum gas, rose by 6.1 percent; however, decreased consumption of bunker C at 46.8 percent.
a. Hotels: The hotel business in Panama City reported increased average daily rooms occupied by 3.4 percent; in turn, decreased the average daily overnight stays at 5.0 percent and housing occupancy rate at 1.3 percent.
b. Sales of new cars: Sales in units of new cars rose by 7.4 percent, especially segments: regular cars by 9.4 percent, luxury cars 11.1 percent, SUV’S 6.2 percent, minivans 16.8 percent, pickups 1.4 percent and buses 25.6 percent. By contrast, reported decline in sales of 0.9 percent panels and trucks by 0.1 percent.
b. Entry of passengers residing abroad and expenses: The entry of passengers residing abroad increased by 5.9 percent, influenced by higher input hikers in 13.3 percent, 3.7 percent tourists and direct transit and crew at 7.9 percent; on the contrary, descended the arrival of cruise passengers 16.2 percent. The cost of non-resident visitors increased by 1.8 percent.
5. External trade:
7. Transportation:
a. CIF value of imports of goods: Data not available for the source to date.
Panama Canal Indicators reported positive changes in toll revenues of 3.4 percent net tons displaced 1.9 percent and volume of cargo transported by 7.5 percent; however, transit of vessels was reduced by 0.5 percent. Cargo movement in the National Port System increased by 5.0 percent for the period January to November, excelling bulk cargo by 9.8 percent and containerized cargo at 2.4 percent. The container TEUs rose by 2.7 percent.
b. FOB value of exports of goods: The FOB value of exports of goods fell by 3.3 percent and items that fell were: petroleum products at 55.3 percent, 30.1 percent pineapple, clothing 24.3 percent, beef cattle 4.3 percent, cattle up 69.6 percent, and hides and skins at 0.3 percent. Positive changes in banana 2.2 percent, 12.1 percent shrimp, ahi tuna, frozen, fresh fish and fish fillet in 29.4 8. Financial intermediation: percent and flour and fish oil in 47.0 percent were observed. a. National Banking System: Total assets of national banking system amounc. Weight of exports of goods:
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PANAMANIAN ECONOMY ted to 13.8 percent, with change of liquid assets and 11. Other related: 32.5 percent of the loan portfolio by 10.1 percent. In turn, total deposits rose by 14.4 percent, helped by ri- a. Labor contracts registered in the MITRADEL: sing 26.1 percent external and internal 9.6 percent. Employment contracts registered with the Central Office MITRADEL showed positive variation of 7.5 percent and b. Stock market indicators: more specifically, in particular work on 16.6 percent, as The Balboas negotiated by Panama Stock Exchan- defined in 2.0 percent and 4.8 percent indefinite. L&E ge, volume grew by 4.4 percent, mainly the secondary market at 20.3 percent; on the contrary, low reported in the BVPSI index measured at the Panama Stock Exchange 1.9 percent; However, turnover rose by 0.4 percent and the number of shares 91.0 percent. c. Insurance: The value of insurance premiums increased by 7.6 percent, which stood bouquets: individual life at 9.6 percent, 13.1 percent Health, Group Life 9.1 percent, fire and Multirisk 7.7 percent, cars 7.6 percent, 3.8 percent other transport and technical branches at 23.7 percent. Payments for gross claims incurred, were down 4.1 percent. d. Loans from the Agricultural Development Bank: Loans from the Agricultural Development Bank decreased by 23.8 percent, especially those aimed at children were 25.2 percent livestock and fisheries 70.0 percent and agriculture at 19.6 percent.
9. Public Sector Finances: a. Central Government Revenue: Current revenues of central government, amounted to 1.1 percent. Of these, non-tax increased by 7.7 percent; conversely, decreased by 1.7 percent tax. Indirect taxes, collection of ITBMS sales grew by 7.5 percent and insurance premiums by 4.3 percent. In turn, direct taxes recorded negative variations of 8.0 percent and income tax of 12.3 percent. 10. Recreation: The clear sale of drawings of National Lottery of Welfare grew in 6.8 per cent.
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WORLD ECONOMY
WORLD ECONOMIC OUTLOOK
G
lobal economic growth in 2014 was lower than initially expected, keeping the pattern shown disappointing results in recent years. The expansion of economy rose only marginally in 2014, from 2.5% in 2013 to 2.6% this year. Beyond these general figures, increasingly divergent trends manifest in major markets. While activity gained momentum in US and in UK with the sanitation of labor markets and extreme flexibility of monetary policy, recovery has been unstable in the euro area and Japan due to continuing financial crisis, which is closely linked to structural bottlenecks. China, meanwhile, is experiencing a slowdown addressed carefully. The meager growth in other developing countries in 2014 is a reflection of weak external demand, but also the contraction of economic policy, political uncertainties and restrictions on the side of demand in the various economies. There are several major forces that are driving global outlook: monetary policies increasingly divergent low commodity prices, interest rates persistently moderate, but in major economies, and depressed world trade. However, sharp drop in oil prices since mid-2014 will strengthen global activity and help offset some negative developments for growth in developing na-
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Fuente: Banco Mundial
tions that are net oil importers. In particular, growth prospects dwindle in oil exporting countries, a situation that will have important regional implications. Overall, we expect global growth rebound slightly to 3% in 2015 and its average skirt 3.3% until 2017. It’s likely that in high-income countries, expansion reaches 2.2% in the 2015-17 period (from 1.7% in 2014) thanks to gradual recovery of labor markets, decline in fiscal consolidation and still low borrowing costs. In developing economies, it’s anticipated that development will gradually accelerate to 4.4% in 2014 to 4.8% in 2015 and 5.4% in 2017, as the internal difficulties that slowed growth in 2014 are reduced and recovery of high-income countries is slowly consolidated. Lower oil prices will help to accentuate the differing perspectives that face exporters and importers of oil, particularly in 2015. This slow global recovery faces significant risks that tip the balance unfavorably. The instability of financial markets, exacerbated by the risk that liquidity conditions deteriorate suddenly, could sharply increase borrowing costs for developing countries. This would be a very undesirable event after several years of strong bond in the capital markets of developing countries. A heightened geopolitical tensions, episodes of volatility in commodity markets or financial
WORLD ECONOMY difficulties in key emerging markets could lead to a reassessment of the risk profile. World trade could weaken further in the case of a prolonged period of stagnation or deflation in the euro area or Japan.
cluding the improvement of public institutions and infrastructure to foster growth and job creation. This will help to raise growth rates required to achieve the goals of poverty reduction set for 2030.
This version of World Economic Outlook also includes four essays that examine major challenges and opportunities facing developing economies today: fiscal policy as a countercyclical fiscal tool; causes and implications of cheap oil; Loose trade fails to act as a driving force for growth; and remittances as a means to smooth consumption in The engine of the global outlook and the associa- times of sudden interruption in financial income. ted risks posed great challenges for economic policy. In high-income countries, recovery is still Fiscal Space fragile and requires a flexible monetary and fiscal Does the fiscal policy will be able to effectively suppolicy to support growth, but is accompanied by port the activity when necessary? During the last concrete consolidation plans and medium-term three decades, fiscal policy in developing countries structural reforms. In developing countries, the has become increasingly countercyclical tool. The contraction of overall funding could reduce capi- ample fiscal space that had accumulated before the tal flows and lead to additional currency deprecia- global financial crisis has not only allowed these tions. While this depreciation can boost exports nations implement fiscal stimulus during the crisis, and help the current account adjustments, could but also increased the effectiveness of these stimuweaken the economic situations and reduce anti- li in supporting growth as fiscal multipliers are geinflationary effects of the fall in prices of commo- nerally higher in countries with greater fiscal space. dities. Consequently, some central banks in developing economies should balance the implementation However, fiscal balances still haven’t recovered their of monetary policy measures to support growth stabilizing debt levels in many developing counrelative to those required to stabilize inflation and tries. It is likely that this situation has lessened the coins or improve the stability of the financial system. effectiveness of fiscal policy to reduce fiscal multipliers in about a third of its pre-crisis levels. In Can also consider adopting fiscal stimulus in the the medium term, many nations need to rebuild event of a sharp deceleration phase occurs. In their fiscal buffers and restore fiscal sustainability. practice, however, implementation of fiscal policy as a tool of countercyclical policy may be limi- The speed that can be done will depend on a numted by the lack of fiscal space that limits the possi- ber of factors specific to each country. These facbility of using tax incentives and efficiency. Both tors include both cyclical conditions and constrahigh-income countries and developing ones should ints on monetary policy, such as the accumulation undertake comprehensive structural reforms, in- of private sector indebtedness post-crisis or high Finally, although it is unlikely given the important elements of damping inserts in policies of China, an even more pronounced slowdown in growth could trigger disordered emergency financial vulnerabilities, which would have strong implications for the global economy.
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WORLD ECONOMY inflation in several countries still developing, among others. Institutional arrangements and convincing -as well designed tax rules, stabilization funds and expenditure frameworks medium term- can help rebuild fiscal space and strengthen the results of the measures implemented to enable the implementation of fiscal stimulus and reduction programs poverty broader and more effective.
Indeed, it grew at less than 4% per year during 201214, well below average annual increase of about 7% before the crisis. If it had continued to expand its historical trend would have been almost 20% higher than their actual level in 2014. The slowdown in world trade has been driven both by cyclical factors, especially the persistent low import demand in high-income economies, and by structural factors, including the changing relationship between trade and income.
Depressed trade What are the causes and implications of the recent fall Specifically, world trade has become less sensitive to in oil prices? After four years of stability around US changes in global income due to the slower expan$ 105 / barrel, oil prices fell sharply since June 2014. sion of global supply chains and a shift in demand towards items with less intensity of imported items. A number of factors explain this recent fall: several years of surprises in supply and demand for oil Remittances have pushed prices upwards and downwards res- Can remittances help stabilize consumption? It’s propectively development of some geopolitical risks jected that remittance flows to developing economies that have threatened production and thus changed continue to expand, while private capital flows could the objectives on policy measures OPEC, and ap- ease in the media that global interest rates start to preciation of the US dollar Although it is difficult increase or growth of developing economies remain to accurately determine the relative importance of depressed. Typically, remittances are a more stable these factors, those related to supply seem to have source of external financing is less correlated with mastered. If sustained, the lowest prices contribute the internal cycle than other types of private flows. to improving global growth and result in significant shifts in real income from oil exporters to impor- For example, during interruptions income women ters. For the latter, low oil prices will support the citizens in the past, when capital flows to developing activity and will reduce, external and fiscal inflatio- countries fell on average 25%, remittances increased nary pressures. Moreover, oil-exporting economies by 7%. Because of these trends, remittances to deveare affected adversely by weakening their fiscal and loping countries heavily dependent can help reduce external balances and reduce economic activity. liquidity constraints, improve access to financial services and standardize the household consumption, However, low oil prices imply a significant op- especially during periods of financial problems. L&E portunity, limited in time, to reform energy taxes and subsidies to oil, which in many developing countries are considerable. Why global trade has been so weak in years after the crisis?
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WORLD ECONOMY
LATIN AMERICA AND THE CARIBBEAN HAS AN HISTORIC OPPORTUNITY TO STRENGTHEN ITS LINKS WITH CHINA
E
conomic reforms underway in China represents a historic opportunity for the region to give a qualitative and quantitative leap in its economic and trade relations with the Asian power and thus address their infrastructure challenges, innovation and human resources, raise productivity levels and competitiveness and diversify their exports, according to a new report by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
The document First Forum of the Community of Latin American and Caribbean States (ECLAC) and China: Exploring opportunities for cooperation in trade and investment was presented today by the Executive Secretary of the United Nations, Alicia Barcena, as a contribution of ECLAC to first Forum of the ECLAC and China, which takes place from 8 to 9 January in Beijing, China. The ECLAC is the most appropriate forum for the region to address the new challenges ahead because, while necessary, national initiatives are clearly insufficient to achieve the goal of being an important economic and trade partner for China, highlights the publication. Between 2000 and 2013, China went from being a junior partner in Latin America and the Caribbean to be a central actor. Thus, trade in goods between the two sides was multiplied by 22, going from just over 12,000 million to almost 275,000 million. By way of comparison, in the same period, trade in the region with the world only multiplied by three. But since 2012, the rate of expansion of the Chinese economy has slowed. With its reforms, China evolves towards a development model that gives greater weight to household consumption and less on exports and domestic investment. Overcapacity having various industries, increasing labor costs and search for safe and profitable opportunities to sell their surplus savings should induce greater out-
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Fuente: CEPAL put overseas Chinese capital, consistent with the guidance provided by its authorities, according to the document. Finally break with the persistent and growing trade deficit with China, Latin America and the Caribbean could attract new foreign direct investment (FDI) to sectors other extractive industries, where today concentrates almost 90% of Chinese FDI estimated at 2010 and 2013, such as manufacturing, services, infrastructure, energy, transport and logistics. Latin America and the Caribbean actually provides exciting opportunities for funds, including its growing consumer market, proximity and preferential access to some of their economies to the US and its abundance of natural resources. The agricultural and food sectors have such great potential. The region could play a strategic role in food security in China, with 7% of arable land and 6% of the world’s water resources to feed 22% of the world population. The challenge for governments is to define an agreed portfolio of projects where Chinese investment is more useful. The incipient FDI from the region to China could go to new market niches that are opening to the evolution of Chinese society, in areas such as agribusiness and a wide range of services, tourism, entertainment, architecture, urban planning, environmental management, and general services aimed at the elderly. The big challenge for Latin America and the Caribbean is to establish greater correspondence between the link with China, and Asia in general, and domestic policies of innovation, competitiveness, science and technology, infrastructure, trade facilitation and internationalization companies, highlights the report. L&E
WORLD ECONOMY
L
REGIONAL EMPLOYMENT TRENDS IN 2015 Fuente: OIT
abor markets will be increasingly affected by economic and political instability. The recovery remains fragile and uneven. Modest economic growth during the second half of 2013 and early 2014 is waning, with large eurozone countries leading the slowdown. In second quarter of 2014, output growth in Germany was 1.3 percent (from 2.2 in the first quarter of 2014) and 0.1 percent in France (compared to 2.2 percent in the first quarter of 2014). The recent turmoil in financial markets complicate the task of reducing unemployment rates to pre-crisis levels. LATIN AMERICA
than women - 5.3 percent and 7.7 percent respectively in 2013 - although the gap has narrowed since early 2000s.
EASTERN ASIA The slowdown in China’s economy is affecting the growth prospects of region, exacerbating demographic challenge. It’s estimated that China’s economic growth in 2014, the largest economy in the region fell to 7.4 percent, compared to 7.7 percent in 2013.
The slowdown in growth in East Asia has generated a slow After initial rebound after the crisis, pace of growth in the increase but constant unemregion has declined considerably, affecting labor markets. ployment rate, which rose from an estimated 4.2 per2014 (and 2015), GDP growth should be less than in cent in 2010 to 4.7 percent in 2014. During this peadvanced economies, riod, the increase in the unemployment rate was more for first time since 2002. pronounced for young people, through 9 percent in Unemployment resumed 2010 to 10.5 percent in 2014, while for adults is estian upward trend in remated to have increased from 3.2 percent to 3.8. Vulgion as a whole, especially nerable employment is expected to decline in the rein countries that depend gion of 50.2 percent in 2007 to 38.9 percent in 2019. on the export of natural resources. The prospects for reducing incidence of informal employment have deteriorated. The male unemployment remains significantly lower
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ECONOMĂ?A MUNDIAL SOUTH AND SOUTHEAST ASIA
grown by 3.5 percent and 2.8 percent respectively.
In South Asia jobless growth, with a high level of informal employment and working poverty level persists.
SAHARAN AFRICA
The region conBetween 2010 tinues to record and 2014, strong growth overall emrates despite ployment weaknesses in increased infrastructure 1.8 percent. and institutioDuring this nal challenges. period, employment Sub-Saharan Afriof women ca has the partigrew at a slightly faster rate of 1.9 per- cipation rate in cent compared to 1.7 percent of men. higher workforce in all regions, estimated at 70.9 percent, compared Southeast Asia has been hampered by the situation in with a world average of 63.5 percent in 2014. In addiIndonesia, the largest economy in the region, whose tion, it is expected that unemployment in some less exports remain weak since early 2013. It is also possi- than 8 percent in 2014, will remain stable until 2016. ble that major natural resource exporters find it increasingly difficult to increase opportunities decent work. The relationship between the employment rates of
young people and adults is 1.9, the lowest of all regions of the world. Sub-Saharan Africa has the highest rate of vulnerable employment and working MIDDLE EAST AND NORTH AFRICA poor in all regions. In West Africa, the Ebola virus has seriously harmed the most affected countries, The difficult socio-political transitions continue to tax Guinea, Liberia and Sierra Leone. In Liberia, the on perspective job in the Middle East and North Africa. economic cost is estimated at a value equivalent to GDP growth in the region should remain modera- a decrease of 3.4 percentage points of GDP in 2014. te in 2014, about 2.6 percent, just above the 2.3 perL&E cent recorded in 2013. In 2015, an estimated GDP growth should reach 3.8 percent. However, the expected economic growth will not be enough to reduce high unemployment. Domestic consumption will continue to drive growth in oil-importing economies, which should grow on average by about 3 percent in 2014 and 4 percent in 2015. In 2014, GDP growth lower than the average estimated in Egypt and Lebanon, while Morocco and Tunisia should have
40.
EDUCACIONAL CAPSULE PANAMA BILINGUAL PROGRAM STARTED
R
Alexander Canto - Elementary school teacher archivo2@rbc.com.pa
aising the quality of education was one of the tually incorporated to teach in public schools as assigpromises of the current government, which through ned, where will implemented to bring all knowledge. MEDUCA established the Panama Bilingual program. Importantly, the education minister said the PanaThe program aims to improve the mastery of English ma Bilingual program consists of three components: as a second language, graduates of the Pedagogical Teacher Training, After School Program and Kids. Institute, headquartered works in Juan Demosthenes Arosemena Normal School, Veraguas province. It These components consist of the following: also includes the student population that is forming at local universities, specifically for the Faculty of The teachers training: covers four activities: traiEducation; all of which was expressed by the current ning local teachers who are in the education system; Minister of Education, Professor Marcela Paredes. Local training of graduate students and graduates; The Teachers will be sent to English-speaking The Panama Bilingual Program will run during the countries and Teacher Training Joint that is when administration of President Varela; for which purpose returning the country where out training I took. will be invested annually the sum of 10 million dollars. The After School Program: is to give English lessons to all students in extended hours and the kids:In recent days was announced the first group com- oriented student from pre-kindergarten through sixth prised of students and teachers, both of Higher Pe- grade, which participate in classes of English landagogical Institute in Santiago Juan Demosthenes guage weekly, to make the use of a second language. Arosemena, and the University of Panama, who traveled to different pedagogical universities in the The MEDUCA through this program seeks to train apUnited States and Europe. This training lasts for six proximately two thousand teachers per year, bilingual months with all bills included; all in order to start education, aiming to train more than twenty thousand their training in English, thus becoming multipliers high school students and more than thirty secondary for students in the country at the time of his return. education; thus promoting English language as a second language in the various schools, implementing For statements MEDUCA holder, upon completion of the use of new methodological strategies learned. the course abroad, teachers return to the country where I believe that the government’s initiative to implement they will receive additional training modules and even- teachers who exercise the profession and those in the
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CĂ PSULA EDUCATIVA educational branch, Bilingual Education Project is an excellent opportunity that should maximize and give the best, because it is a challenge where will gain new experience, knowledge, skills, strategies, and methods in the teaching and learning of English, and remain competitive teachers, helping to improve the quality of education of many students throughout the country, because the ability to be bilingual or multilingual is increasingly necessary for study, work and live together. Our education requires many changes and this is one of them, which will help our students to have greater job opportunities. We must remember that perform a bilingual education involves methodological, curricular and organizational changes in the educational structure faced in the best way possible to raise the quality of education. Bilingual education has become a fundamental tool today, enriching and allows the development of various
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skills both professionally and personally, in addition to opening many doors to success, because the rapid globalization of the world has exceeded the cultural and linguistic barriers, therefore must develop a competence based bilingual education to meet the challenges of the world in which we are now living in. L&E
FASHION
TRENDS of
Summer 2015 FASHION
Nadia Chang - Strada Eleganza rbcweb@rbc.com.pa
Summer came and with it our desire to enjoy outdoor activities, trips to beaches, farms, fairs, etc etc. These desires also come I accompanied the million dollar question, have the proper clothing to attend all these activities? In our country, but we should be dressed in light clothing, for our professions or customs, use darker clothes that clear. Below I give some of the trends of the designers for this summer and we can apply according to our styles.
I
FASHION
n the fashion industry there are no limits and everything is full of excesses, this season brings Spring Summer 2015 trends unseen for decades, as well as the incorporation of technology-based designs and new era. We see the rebirth of denim (jeans fabric), in all its dimensions, which for some years and is marking his territory in the wardrobe of every man and woman around the world, and new proposals from designers make us see reinvention and wide range of application of this fabric. Since the return of the Cut Out Jeans up designs in different techniques faded, jean again becomes a must have for this season. Something very important that every man should take account when dress is the color palette, knowing how to play with them and combine them is talented and cunning, but knowing which ones are right for this 2015, is expert. Out of previous years where we saw the growth of summers full of subtle but colorful pastel colors, this time we see strong growth and the large presence within the walkways and street wear of unexpected colors and unusual for this season: Red, Khaki and Black. Spring Summer season will be full of vibrant red, from shirts and sweaters to dresses and chaquetas.AsĂ as we can also see the arrival of more sober colors and tended to be more typical of winter seasons, we see from simple to full outfits. However, although always recyling fashion trends and bring life to the past, we also see how graphic prints are becoming more prominent in concurrent fashion, sculpted, linear and sharp designs are observed. Undoubtedly this season of Spring 2015 was and is totally unexpected, new and clearly a challenge for fas-
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Something very important that every man should take account when dress is the color palette, knowing how to play with them and combine them is talented and cunning, but knowing which ones are right for this 2015, is expert
FASHION hion lovers, because this is where truly shown how industry changes from second to second, and consumers give opinion on what trends continue or not. For us Panamanians, we didn’t leave the classic blue jeans, you know, begin to shift our wardrobe with jeans of different shades; black, kakhis, light brown, light green olives, celestial, finally diverse range of colors in fabrics denims. As for shirts and sweaters, we can use the provided basic, as well as prints, graphics, linear and floral, this will give an important our images twist, of course, all depending on the occasion and personality, as the saying goes, a fashion that suits us, many people make the mistake of wanting to be fashionable use what they find in the windows, losing sight of some things even if they are in fashion (pun intended), not necessarily go with our bodies and personality. Seize the summer in all its glory, let’s start the year reaffirming our purposes; to see us and feel better, and when I say this, I mean not only to clothing, also I refer to as change from within, spiritually, eating more healthily, doing some exercise, and if no budget for a gym, in our neighborhoods can hike 30 mts three days x week, crunches, jumping rope, hula hula, etc etc, there are a thousand and one ways of exercising without much expense. Then, in order to eat better, seize the diversity of fruits having our beautiful Panama; mangoes, watermelons, pineapples, etc etc, as these fruits which soothe our anxiety, not sweets, chocolates. Make 6 small meals, three heavy meals snack, 3 times a day. For small the effort some result we will, and remember that to look and feel better is not achieved overnight, it’s work of resistance and not speed, not short-term goals, but in the medium and long term because what we get easily most of the time it is rather ephemeral. Well my dear readers, this month add this extra ingredient, as I think is suitable for the time of year start I attached some pictures of trends for this season. L&E
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“
A fashion that accommodates us”
SPORTS CAPSULE
THE ROJITA CLASSIFY TO THE WORLD CUP OF NEW ZEALAND 2015
T
Albin Rodríguez albin.rodriguez@rbc.com.pa
he U-20 team Panama this year will reach its global fifth goalkeeper; and most valuable player for Luis Pereira. soccer world cup undefeated, leaving behind teams like Jamaica, Guatemala, Trinidad and Tobago, and Aruba. Was also carried out the selection of the 11 ideal tournament players, of which 5 Panamanian players were choThese guys made us spend special moments du- sen by the organizers, leaving selected: Jaime De Gracia ring the tournament. Despite losing in the final (goalkeeper), Chin Hormechea and Kevin Galván (cenmatch before the selection of Mexico, penalty kicks, tral), Luis Pereira (middleman) and Ismael Diaz (striker). it wasn’t a source of sadness for fans and for Panamanian people; and let our team captured their excellent performance during entire tournament.
Let’s go rojita!
On the other hand, our team was ranked runner-up, as it was received two trophies in the category of individual awards, which were given to our goalkeeper, Jaime De Gracia, best
46.
SPORTS CAPSULE SOCCER OR BASEBALL
In Europe the most important cup called Champions League, Champions League Asia Pacific, South America Copa LiberToday these sports have been characterized for tadores is played; Central America and the Concachampions. being most preferred tournaments in our country. On the other hand, have contributed to this great sport marLong ago the sport was dominated baseball; Howe- keting entrepreneurs, owners of oil companies, who have ver, soccer has managed to become one of the new pas- invested large sums of money; making it the competition sions of the public. It is noteworthy that both sports between them, to achieve the purchase of equipment leahave grown, not only fans, but now many compa- gues such as the English, Spanish, German, among others. nies are interested in supporting both sports, providing significant sums in sponsorship and advertising. So much so that there is competition in the market for valuable players from different clubs, with good wages, who are By way of example, we refer to the Major League Ba- subject to strict contracts so that other computers can’t buy. seball in the United States, one of the most recognized and listed worldwide leagues. Similarly countries like Among the five best soccer players paid we highlight the Japan, China, Dominican Republic, Puerto Rico, Ni- following: caragua, Mexico and Brazil, have competitive leagues showing a good level in international competitions. 1. Cristiano Ronaldo (Real Madrid / Portugal) - 21 million Among the five best paid players in baseball we can mention: euros. 1. Alex Rodriguez, Dominican, third baseman for the Yankees, winning 29 million. 2. Cliff Lee, American, pitcher for the Philadelphia Phillies wins $ 25 million. 3. Johan Santana, Mets pitcher Venezuelan New York, with a salary of $ 25.5 million. 4. Mark Teixeira, American, first baseman for the Yankees, with 23.12 million dollars. 5. CC Sabathia, American, pitcher for the New York Yankees wins $ 23 million. Unlike baseball, soccer is played globally, demonstrating that one of the most influential sports; becoming the sporting event of the moment. As we know, soccer is divided by confederations, among which we can mention the European, Asian and Oceania, South America and Central America, better known as CONCACAF. It is the regional and competitive confederation because it develops crowded club called global tournaments.
47.
2. Leo Messi (Barcelona / Argentina) - 16 million euros. 3. Zlatan Ibrahimovic (PSG / Sweden) - 14.5 million euros. 4. Radamel Falcao (Manchester United / Colombia) - 14 million euros. 5. Wayne Rooney (Manchester United / England) - 13.8 million euros. With these comparisons of both sports, we can realize that baseball is the best sport paid, however soccer is near occupy the same level, the latter having more marketing and competitiveness between continents. L&E
CULTURAL CAPSULE ACTIVITIES AND CELEBRATIONS OF JANUARY 2015:
Mariela de Sanjur mariela.sanjur@rbc.com.pa
Thousand Polleras Parade El sábado 10 de enero, en la Ciudad de las Tablas, entre tamboritos y murgas se realizó Desfile de Las Mil Polleras. En este desfile se pudo disfrutar de la belleza y el lujo de nuestro traje típico, en un desfile en que mujeres de todas las edades vistieron con donaire sus mejores galas típicas. El domingo 11 de enero, se realizó por primera vez el Desfile de los Diablitos Sucios en la Ciudad de Las Tablas.
The XXII Panama Jazz Festival held from 12 to 17 January in the City of Knowledge, Clayton closing with a free concert on January sábado17 in the Quadrangle of the City of Knowledge.
XXIV Valley Music Festival The January 31 at 8:00 pm at the San José Church del Valle de Anton, Cocle, Inesa Sinkevych Ukrainian pianist who performs a program that includes Scarlatti, Debussy, Chopin will be presented, Cuban Gisela Hernandez and Prokofiev.
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CÁPSULA CULTURAL XXXVI National Meeting of Youth Renewal 2015 was conducted with more than seven thousand young people from 22 to 25 January in the city of Chitre. The inauguration took place on Thursday 22 at Estadio Claudio Nieto.
Ricardo Arjona “Travel Tour” on January 28 at Figali Convention Center.
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CULTURAL CAPSULE
Activities For The Month of
February Museum of Contemporary Art MAC: Latin American Collection Great Masters of S. XX. and XXI, from January 21 to February 22, 2015. Festivals and concerts: Poor Film Festival of Panama, to be held from 4 to 7 February. This year the festival will host the Art Cinema hall (Teatro Municipal), located in Hatillo building, located on 35th E Street between Avenue Cuba and Avenida Justo Arosemena, where the opening night will take place. Musicalion, will be held from 3 to 8 February in the Parque Recreativo Omar amphitheater located in Via Porras. • February 3 / 7:00 pm: Don Quijote be presented by the National Ballet of Panama.
• February 8 / 7:00 pm: Symphonic Rock “. With special guests: Janel Davidson, Leonte Bordanea, Gaby Gnazzo, Emilio Regueira and Carlos Ivan Zuñiga. If you wish to book seats in the VIP area, these will cost $ 5.00 and collaboration. Boquete Jazz & Blues Festival - February 4, 2015 February 8, 2015. Free concerts Zydeco Band “Mo’Mojo music, organized by the US Embassy. • Sunday february 1st Parque Urracá, Avenida Balboa 3:00 p.m. • Wednesday february 4th “Estamos Unidos Center” in Via España ( CELI Panamá, American Corner Panama, Education USA Panama City) 6:00 p.m.
• February 5 / 7:00 p.m .: Son Miserables.
Carnivals around the country: 14 to 17 February. Carnival in the City “A country Fiesta”: General information:
• Feb. 6 / 7:00 pm: Pelaos con Salsa and Singers.
o Parades begin each day at 6:00 p.m.
• Feb. 7 / 7:00 am: Sunrise Yoga with Denise Cortes and live music from Alfredo Hidrovo.
o Culecos at 9:00 a.m.
• Feb. 4 / 7:00 pm: The Youth Symphony concert will be held.
o Shows at 8:00 p.m.
• Feb. 7 / 4:00 pm: Race Walk Musicalion registrao In the Coastal Strip. tion fee $ 20.00.
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CULTURAL CAPSULE Fairs: • Chorrera Fair of January 21 to February 1. • Orange Fair-Churuquita Grande Cocle del January 29 to February 1. • La Candelaria Fair - Bugaba January 30 to February 8. • Santa Fe Fair - Veraguas from January 29 to February 2. • Veraguas Fair in Soná January 30 to February 8. Chinese New Year: The “Chinese New Year” is celebrated this year on February 19 thus starts the Spring Festival, which is one of the most important celebrations of the traditional Chinese holidays. This year will be the year 4713 according to the Chinese calendar, and corresponds to the Year of the Goat. Events: - Panama BBQ Fest: February 1 at Plaza Figali. - Panama Greek Fest: February 7 in the Greek Orthodox Church. - Motor Fest 4x4 II: February 1 in Penonomé. - Fashion Panama. The Festival: 3 to 10 February in Multiplaza. Special dates: - World Cancer Day is celebrated on February 4. - Valentine’s Day, February 14. - Don Bosco, 31 January. - Ash Wednesday, February 18th. - Virgen de la Candelaria, February 2. Theatre: •Sleeping Beauty: The Circle Theatre until February 2nd. •My Nana is a Witch: Teatro La Quadra until February 2nd.
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• The King of the Jungle: Theatre Shows Bambalinas until February 2nd. • Tonight laugh Sex: ABA Theatre until February 8. • The Super Friends: ABA Theatre until March 1. • International Ballet Gala: Star of the 21st Century: National Theatre on February 5 at 6:00 pm presentations by members of the National Ballet of Panama, Portugal and Cuba. Camps and summer activities: • Summer Camp in Biomuseo from 8:00 a.m. to 12:00 m from the February 2, lasting five days. Cost $ 100.00. • Workshop “Remedies for Peques: Let’s paint stories” in Allegro Gallery Ages: 5-13 years. Days: Tuesdays, Wednesdays, Thursdays. Start date: Wednesday February 3, 2015. • Workshop “Decode: How to read contemporary art” at the Museum of Contemporary Art MAC on Saturday 31 January. • Modern Dance Workshop in the Interoceanic Canal Museum until February 12. • Zumba Classes at La Quadra Theater from 6:30 pm to 7:15 pm • Acting Classes for Theatre / Summer School in the ABA Theatre. • ZafaRick’s Zoo, Maria Chiquita-Portobelo: Zoo Day and beach. • Free Workshops at the Historical Monuments Panama Viejo until March 7 for information write to diana.m.zarate@gmail.com Tuesday-Thursday and Friday from 9:00 to 11:00 a.m. and Saturdays at 1:00 p.m. • Summer Sports City Kiwanis. L&E
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