ISSN 1726-0485 JUNE EDITION15
THE TRAPS GIVEN BY PUBLIC INTERNATIONAL CONTRACTING MODIFICATIONS TO REGULATIONS OF INCOME TAX AND ISC
rbc.com.pa
FIRST YEAR OF VARELA’S GOVERNMENT
Consejo Editorial
Colaboradores en esta edición José Javier Rivera J.
José Javier Rivera J. Giovana del C. Miranda G.
Rafael Fernández Lara Giovana del C. Miranda G. José María Lancho Augusto García Lisbeth Martez Albin Rodríguez
Portada y Diagramación: Virginia Medina Fotografía: Mariela De Sedas de Sanjur
Alexander Canto 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
Legislación y Economía es una publicación de
Rivera, Bolívar y Castañedas, que tiene como propósito principal
mantener informados a nuestros clientes, empresarios, industriales, ejecutivos, banqueros, inversionistas, y a
todo aquél que tenga INTERÉS en la actividad de
PANAMÁ.
RBC Abogados
Rivera, Bolívar y Castañedas
@rbc_abogados
CONTENT 6.
8.
EDITORIAL THE TRAPS GIVEN BY PUBLIC INTERNATIONAL CONTRACTING
INVITED WRITER THE CHECKMATE OF PANAMA: UNESCO CONVENTION ON PROTECTION OF THE UNDERWATER CULTURAL HERITAGE IN CRISIS (2)
NORMS OF INTEREST
14. 15.
CATALOGUE OF SIGNS OF ALERT ADOPTS SUPERINTENCE OF INSURANCES AND REINSURANCES
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PREVENTION FOR MISUSE OF SERVICES PROVIDED BY SUBJECT UNDER SUPERVISION OF SUPERINTENDENCE OF BANKS
16. 17.
18. 21. 22.
SUPERINTENDENCE OF BANKS ADOPTS CATALOGUE FLAGS FOR DETENTION OF SUSPICIOUS TRANSACTIONS
PEOPLE WITH DISABILITIES STATISTICS SOCIAL SECURITY WEEK
CONSULT, DOCTRINE & JURISPRUDENCE MODIFICATIONS TO REGULATIONS OF INCOME TAX AND ISC EXEQUATUR NOT APPLY TO JUDGMENT OF THE INTERAMERICAN HUMAN RIGHTS COURT
POLITICS THE REVERSIAL OF THE CANAL ZONE, DUE TO THE STRUGGLE OF ALL PANAMANIANS
CONTENT 26. 28. 29.
32. 34. 35. 37. 40.
PANAMANIAN ECONOMY FIRST YEAR OF VARELA’S GOVERNMENT MONTHLY INDEX OF ECONOMIC ACTIVITY ESTIMATED NUMBERS OF QUARTERLY GROSS DOMESTIC PRODUCT AT 2007 PRICES: FIRST QUARTER OF 2015
WORLD ECONOMY MEASURES TO CUT THE INEQUALITY OVER WE ALL BENEFIT ECLAC STUDY ANALYZES INCENTIVES TO ATTRACT FOREIGN INVESTMENT TO CENTRAL AMERICA GUY RYDER: ANTICIPATE THE FUTURE OF WORK IS ESSENTIAL FOR PROGRESSIVE SOCIAL JUSTICE
ILLUSTRIOUS PANAMANIANS AMELIA DENIS DE ICAZA (1836-1911) DEMETRIO KORSI (1899 – 1957) DEMETRIO HERRERA SEVILLANO (1902-1950) RICARDO MIRÓ DENIS (1883-1940)
EDUCATIONAL CAPSULE MARCHES AND SUSPENSION OF CLASSES
FASHION
41. 46. 47.
WHAT WE MUST TAKE INTO ACCOUNT WHEN BUYING A SUIT OR JACKET
SPORTS CAPSULE CULTURAL CAPSULE
EDITORIAL THE TRAPS GIVEN BY PUBLIC INTERNATIONAL CONTRACTING
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n recent days, the Panamanian Chamber of Construction (CAPAC) issued an open letter to the President expressing his disagreement with the policy of exclusion practiced by the objections and specifications that underlie different procurement as requirements and weights that no traditionally Panamamanian established company can meet. It’s known that during last three governments, financial health of the state has allowed government to undertake a series of infrastructure works much impact, such as the expansion of the Canal, corridors, widening of roads, sanitation of the bay, hospitals and other works too numerous to mention. In the same vein, the country notes with frustration, as stated in the CAPAC, a lot of works “crippled, incomplete and with great technical questions”, in addition to cost overruns and addenda of dubious support. CAPAC has struggled much in the way of achieving transparent and effective Law Public Procurement but such is the ambition of the rulers and rapacity of many en-
7.
José Javier Rivera - Abogado jj.rivera@rbc.com.pa
trepreneurs who have transformed Law 22 of June 27, 2006 in a face to favor to a privileged club of companies which are the only favored with contractor selection acts, direct contracts and turnkey contracts that have served to indebt the country and for local and foreign rampant corruption. A careful observer of this reality that surpasses a decade, found that one of the sources of this state of affairs is precisely these common practices of entities in charge of hiring these works, namely:
EDITORIAL 1. Using the National Assistance Program (PAN) as a kind of multi-ministry without rigged bids or tenders, it has served to execute works worth millions bypassing scrutiny of the Public Procurement Act. 2. Rig the objections so that only foreign companies can participate in contractor selection acts, since the requirements to qualify for these tenders are forbidden to nationals.
try with contracts worth billions of dollars without national government to do something. Neither deputies of the National Assembly have dared to deeply reform is misnamed Public Procurement Act and have maintained a complicit silence, shielding the activity of these companies. Similar action has been Procurement Directorate and Court of Public Procurement issued normally inhibitory own resolutions and therefore nothing happens.
3. Make proposals for an amount less than what it actually costs to work and then negotiate addenda that often go far beyond the original amount. As if that weren’t enough, the sword of Damocles to Panamanian companies and even international 4. Pricing between foreign bidders companies in resides in the appeal that requires provision of a ways that are damaging to Panamanian compadeposit of 15% to turn this procedural remedy. As nies and thus the entity believes that local propo- we know, the bond may lose the plaintiff if so decisal is burdensome to the state. ded by Court of Public Procurement and thus is a source of no efficacy, as has been demonstrated in 5. Economically suffocate local businesses, either bidding for the subway line two, since this depoby delay in payment of complementary works and sit represented more one hundred million dollars. services or by offering to employees of national companies of conditions beyond the ability of the The president made many promises and it has company owned and thus eliminate competition. yet to be fulfilled, which is to eradicate the evil practices of Government Procurement rigged, Recent scandals involving multinational com- that cause so much damage to our country. panies like these demonstrate that current exL&E President Ricardo Martinelli Berrocal, are insatiable and further cost overruns were providing huge profits to a form of state enterprise officials, It will dawn and see. members of legislative board and political parties. As always, the reaction in our country has been slow on part of the authorities to ensure safekeeping of the National Treasury and corrupt those companies still rampant in our coun-
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INVITED WRITER THE CHECKMATE OF PANAMA: UNESCO CONVENTION ON PROTECTION OF THE U DERWATER CULTURAL HERITAGE IN CRISIS (2)
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n denouncing the crisis of Panama by plundering of the galleon San Jose, and express that had jeopardized the UNESCO Convention to be that country its first party while keeping the first an agreement with treasure hunters.
Source: Diario ABC José María Lancho rbcweb@rbc.com.pa
country of their flag. This principle which has served to defend the Odyssey case successfully in United States and Spanish criminal courts still remain against the apparent interest of regional cultural policy center, the case against company responsible for treasure hunters.
Now the crisis is heightened because UNESCO to accept the role of solution, replacing foreign policy of The paradox is clear: UNESCO’s intervention is diSpain, is at odds with one of the fundamental princi- rected to ignore and undermine the principle of soveples of Convention: the sovereign immunity of warships reign immunity that their agreement had recognized. This principle is enshrined in Articles 13 and 2.8 of the UNESCO Convention on the Protection of Underwater Cultural Heritage and assumes that warships sunk by old they are, remain warships owned by the State and enjoy sovereign immunity, are territory of the
This principle hasn’t been only the main tool with which United States has quite successfully defended his own underwater heritage but the only one that has restrained the plundering of our own historical ships and galleons. At least it has been the only argument used by Spain that American courts have recognized.
Lancho José María Rodríguez (Madrid, 1970) Lawyer and writer dedicated to the field of law of new technologies. He is currently the President of Hispalinux, the largest association of Spanish language users and developers of free software, with more than 7,000 partners.
La catástrofe del galeón San José
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He is also author of a series of works on the submerged heritage, it has tried to free software problems, risks of new technologies of social control, technological and network neutrality, software patents and environmental law. He was one of the founders of the Observatory of technological neutrality, a project to promote technological neutrality in public administrations.
INVITED WRITER Since Spain said the wrecks of their warships still maintain that historic character and therefore enjoy sovereign immunity, like country, that principle has been forced to adjust the Spanish domestic legislation and out of its deep oxidation state, his resignation to external action, lack of coordination and dispersion of powers towards the protection of heritage in clear crisis. It has done so through the new Law of Shipping and this has of course an unprecedented and positive in Spain, which involves the Navy, which has important technical means for the first time, have the opportunity to help protect, exploration and research collaboration of wrecks.
For a country which, again, hasn’t investigated a single galleon, although it is one of his greatest contributions to history of navigation and the galleon was technological instrument that allowed first globalization, surprisingly vast energy expended in that there is no sovereign immunity and that Navy can’t work in heritage advocacy and research.
One of the problems that allowed Spanish Odyssey plunder our shores for years was lack of coordination between administrations. This has The exclusion of the Navy side of the solution was a situa- been recognized by all who lived and participation that made us unique in the West and a consequence ted in the “event” at central and regional level. of a wrong way of understanding the decentralized constitutional rule. Everything but a clever strategy to respond The struggle for powers imposed on effective protection to the plundering of a global industry such as the looting. of inheritance talks for years with Odyssey were happe-
ning at same time insisted that Andalucia be conferred on the territorial sea, and beyond, like a country and thus a not-suitable roles distribution in relationship of our central and peripheral administration that took the treasure hunter and its diplomatic partners (was unforgettable the role of ambassador for UK threatening to claim waters of Gibraltar if they didn’t plunder Odyssey). With new Navigation Act, all those beings of mythology comedy and plundering should also join Navy and this one would be the last word in relation to authorization of archaeological intervention.
Estudio de la US Navy sobre la situación de pecios norteamericanos en la zona de desembarco aliado en Normandía
But this, from a basic common sense, which seems positive viewing perspective last result as to limited protection against spoliation and as to the absence of scientific results (we still have dug one galleon), the standard has deserved great annoyance of some autonomous communities and personalities in this orbit that don’t conform with the law.
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The law has spoken in the same sense that international law and practice with a clear intention of protecting a heritage scattered around the globe
Article 382 Ships and boats wrecked or sunken state. 1. Notwithstanding provisions of Articles 358.4 and
359, regardless of time when the loss occurred and where they are, ships and boats wrecked or sunken Spanish State, his remains and those of their teams and load, they are state property, inalienable and indefeasible public domain and enjoy immunity from jurisdiction.
INVITED WRITER 2. Exploration operations, tracking, localization and removal of wrecked ships and boats sunken Spanish State or require authorization from the Navy, which holds full responsibility for their protection, without prejudice to the legislation on historic and cultural heritage, as case.
However, there are governments that don’t accept it. And the silent way of the facts are still not comply. This is an especially dangerous for heritage and an obvious form of corruption game. Critically we have been noticing a competence invasion from the port of Cadiz to the Canaria Autonomous Community where is trying to avoid the role the Navigation Act gives the Navy. Right now, when we must strengthen effectiveness of principle of sovereign immunity and role of Navy.
The perfume of synchronicity
Curiously, it’s coinciding with Panamanian operation of UNESCO replacing de facto Spanish foreign policy (which also has all the appearance of having support of those who decide here, which is certainly not the citizenship or those who make laws) we find scientific initiatives apparently innocently spontaneous also come to distort and deny, right now, principle of sovereign immunity on Hispanic galleons.
is not new. That is, there is a political decision back with an opportunistic intention to get back in the press to this wreck of our Navy, incidentally, for the looting of the same Treasure Hunter Stenuit, in the last third of the century, didn’t deserve so much attention from the Irish authorities. The legal problem of wrecks of Invincible in Ireland and the United Kingdom hasn’t yet been resolved and urges take diplomatic and legal measures. The UK could be questioning and even his attitude can enable interpretation of a de facto waiver, principle of sovereign immunity on its own wrecks in the world. In fact, any Hispanic country could object to the virtue of that principle on British warships in its territorial waters adjacent continental shelf and even given the treatment by Britain on the wreck of the Spanish Armada which has come down to allow looting most infamous (remember the "Duke treasure hunter" Argyll). Only respect for sovereign immunity guarantee short and medium term the scientific destination and participation of Spanish archaeologists and decisiveness of Spain and Hispanic countries on fate and management of these archaeological sites. Another striking synchronicity, none other than, again, in Panama, is affecting Spanish ship "Nuestra Señora de la Encarnación" sunk in 1681. Missing for centuries, a group of underwater archaeologists linked to the University of Texas and directed Frederick Hanselmann, entrusting themselves and head in the midst of crisis of the galleon San Jose to Panama. Although they claim to respect UNESCO Convention even target Kingdom of Spain to coordinate with Panamanian authorities in relation to a wreck on which both countries have something to say.
One is the umpteenth "rediscovery" in Ireland of The Juliana. One of the ships of Spanish Armada and which, curiously Irish Culture Minister has made statements as if the wreck out of an Irish ship. Express curiously because La Juliana is a wreck in 1985 that was being tapped. Ie
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The Grand Armada of 1588
INVITED WRITER This is another painful history in which individuals and entities involved academia mistakenly damaging legal principles in this case sovereign immunity, allowing it to defend the heritage of future generations-and they would like to investigate.
If under direct leadership of UNESCO it’s omitted the principle of sovereign immunity Convention is mortally wounded and no state principles implicit trust and custody itself born of bureaucracy. No great naval power will be in hands of these people, or their inconsistent documents. Solutions Too many coincidences for this right lawyer when you are ignoring: law, Navy, civil society, transparency and... try to start verification of principle of sovereign im- the results. For now the spoils of plunder has been distrimunity by the Navy, too many loose threads poin- buted. So far we know that they haven’t moved by looting ting to our beloved Peninsula. Error smell too ... of San José known for years... They move public opinion. UNESCO can’t replace a foreign policy, not only because contradicts Convention itself but also harms the individual capacities of a state like Spain with a very vulnerable heritage and just legal tools, one sovereign immunity.
An issue of legality.
Intelligence, diplomacy and law Cabinet government in Panama is possibly the most advanced team with a view around underwater heritage in the history of their country. Almost a year ago, prior to installation of the new government, a number of Panamanian experts, members of civil society and people who had much to lose contacted me in my capacity as a lawyer to try to save the plundering to galleon San Jose .
Nothing is more extraordinary that meet interests in our country they consider undesirable the principle A treasure hunter company covered by their of sovereign immunity, though the only one who has good diplomatic relations had managed to shown some utility to effectively protect our heritage- and that they worry less than the problem of theft. plunder the wreck for years. They hadn’t done
in secret, at all, was something known by all institutions which deal with these issues. The problem was that they were renovating looting rights and nothing less than the first country that signed the UNESCO convention. Thanks to the National Museum of Underwater Archaeology Ivan directed Negueruela could report the case in the IKUWA Congress. Then I repeated the description of these serious events at the Hay Festival. Finally, the ABC, as so often, resumed this issue and a problem of policy agenda of the country became.
But most striking decide not face the same from academia, from rational criticism, from the courts, from public opinion... but regardless of citizenship and law. But the law (and not science) have never been an inconvenience when you control politics. In the case of the galleon San Jose all our experience with Odyssey, all our laws in force relating to heritage... forced to react to our country tackle the crisis in Panama and to cooperate with that country because their own government shared the same concerns. Instead, we see that it dispenses with the Spanish law and insThe Navy has technical resources and access to tead dedicate ourselves to strengthen cleverly saboother key players around the fate of archaeologitage. But who makes the decisions in Spain on this?
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INVITED WRITER
National Museum of Underwater Archaeology
cal sites from warships: Armed typical of other countries. This has worked well with US Navy A phobia irrational and absurd that has never been proven successful in the defense of our heritage must prevail over the law itself? What the most important international experts say about the protection of this legacy? If there is a personality that leads unquestionably Hispanic archaeological underwater heritage protection that is the Mexican Pilar Luna.
Pilar Luna, a Mexican archaeologist, head Very few people are in Spain to their level as ar- of Department of Underwater Archaeochaeologist and international advocate of Hispanic logy of National Institute of Anthrounderwater commons. For years has known treasu- pology and History (INAH) of Mexico re hunter phenomenon and its conclusion regarding the question of sovereign immunity is final. Mexico recognizes the sovereign immunity of Spanish historic wrecks. But it’s not to do the choirs to a gang of nationalists Goths do it because as a scientist and as partially responsible for this vulnerable legacy you can’t think sabotage a principle that protects more effectively internationally and also create channels research collaboration that common Hispanic heritage.
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The understanding of Spanish and Latin American Navy and collaboration between national museums and technical personnel to replace the dominant role of certain policy -from low- obsessed competencies prejudice to the outcome and level law. There is an opportunity to do things, to get good results and not lose the few legal tools at our disposal as sovereign immunity of historical war ships, that opportunity doesn’t exclude anyone... except to treasure hunters.
NORMS OF INTEREST CATALOGUE OF SIGNS OF ALERT ADOPTS SUPERINTENCE OF INSURANCES AND REINSURANCES
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y Agreement No. 02 of June 27, 2015 published in the Official Gazette No. 27802 the Insurance and Reinsurance Superintendence agreed to adopt the Catalogue of Red Flags for detecting suspicious transactions related to money laundering, terrorist financing and financing of proliferation of weapons of mass destruction issued by the Financial Analysis Unit (UAF) by Administrative Resolution No. AL-01-2015 of January 23, 2015. The Order issued by the (UAF) is designed to show that Money Laundering Alert Signals are those behaviors customer, employee or companies or the characteristics of certain financial transactions that could lead us to detect a suspicious transaction of Money Laundering and Terrorist Financing.
By: Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
rance sector. 5. Alerts related to the Securities Sector. 6. Alert the Financing of Terrorism. 7. Related to Market Goods and Services Alert real estate financing. 8. Alerts related to Casinos and Gaming. 9. Alerts related to the cooperative sector. 10. Alerts related to cash transactions and Electronic Money and Money Transfers. 11. Related to the Market Alert Banking and Trust. 12. Alerts related to Free Trade Zones and 13. Alerts related to pawnshops.
The Superintendence informs all regulated entiAmong signals alerts in Resolution and have ties of insurance and reinsurance to be taken nebeen adopted by the Superintendence are: cessary measures in order to observe and determine all the warning signs listed that constitute suspicious transactions related to money launde1. Alert related to customer behavior. ring and terrorist financing relevant to activities 2. Alerts related to the behavior of managewithin the insurance and reinsurance industry. ment employees.
3. Alerts Companies. 4. Alerts related to the insurance and reinsu-
The No. 02 Agreement entered into force on 15 June 2015 and provides that it shall be updated periodically. L&E
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NORMS OF INTEREST
SUPERINTENDENCE OF BANKS ADOPTS CATALOGUE FLAGS FOR DETENTION OF SUSPICIOUS TRANSACTIONS
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By: Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
he Superintendence of Banks issued Agreement No. With respect to alerts which we list below are contemplated: 007-2015 of June 9, 2015 by establishing the Catalogue of Red Flags for detection of suspicious transactions rela- 1. Alerts related to customer behavior. ted to money laundering, financing of terrorism and financing of proliferation of Weapons Mass Destruction. 2. Alerts concerning legal persons. The Agreement provides that are required to meet the same:
1. Banks and/or defined by the Superintendence of Banks banking groups. 2. Companies trust. 3. Financial Enterprises. 4. Leasing companies. 5. Factoring companies. 6. Issuers or credit card processors, debit and prepaid cards, whether natural or legal persons.
3. Alerts related to behavior of employees or executives. 4. Alerts related to cash transactions and Electronic Money and Money Transfers. 5. Related to Repossessed Alert, Trust Companies and Other Financial Institutions. On the other hand concerning changes to be made in patterns of conduct some business, transactions related to terrorist financing and related transactions and ATM carry trade is regulated.
It’s noteworthy that this Agreement the Special Agreement 12-2005E of December 14, 2005 which provided concerning guidelines for preven7. Certification Authorities means of payment and ting misuse of banking and trust services. electronic money. L&E 8. Other corporate services provided by trust companies.
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NORMS OF INTEREST
PREVENTION FOR MISUSE OF SERVICES PROVIDED BY SUBJECT UNDER SUPERVISION OF SUPERINTENDENCE OF BANKS
R
By: Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
ecently the Superintendence of Banks approved Agreement No. 005-20015 of May 26, 2015 and published in Official Gazette 27802-A regulates prevention of misuse of services provided by other entities under supervision of the Superintendence of Banks.
train their employees; Suspicious transactions; Examples of suspicious transactions and compliance function.
Another issue is covered by the Agreement concerning obligation of the Superintendence of Banks to notify the UAF suspicious transactions that have We must point out that the agreement in question, re- subject knowledge required in course of inspecgulates issues such as scope; Prevention of Money tions, without exempt entity obligation to do so. Laundering, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction; Customer Likewise, protection of employees, managers and agents due diligence; Minimum requirements of due diligen- and the penalty for breach of the Agreement apply ranging ce; Customer profile for individuals; Customer Profi- from B/. 5,000.00 to B/. 1,000,000.00, subject to sanctions le for legal persons; Documentation and Monitoring; provided for in Law No. 23 of 2015 is adopted measures Politically exposed persons; Due diligence for high-risk to prevent money laundering, terrorist financing and ficustomers; Updating and maintenance of documents; nancing of proliferation of weapons of mass destruction. L&E Policy manual on know your customer and/or beneficial owner; Know your employee policy; Obligation to
PEOPLE WITH DISABILITIES STATISTICS
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inistry of Social Development issued Executive Decree No. 148 of June 17, 2015 by which the Technical Advisory Group on Population Statistics with Disabilities, a single platform that integrates information on socio economic characteristics is created, access physical environment and transportation, sports, access to information and communication and all information on population of people with disabilities to contribute to development and improvement of this population group.
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
The Commission will among other functions, to cooperate in developing Statistical Plan; Transmit and monitor compliance with general rules and provisions issued to capture, process and present statistical information produced; Review rules and collection procedures and mechanisms specific coordination which are subject of research and contribute to the development of technical standards that must conform production of statistical information by various members of National Statistical System. L&E
NORMS OF INTEREST
SOCIAL SECURITY WEEK
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he National Assembly approved Law 42 of June 8, 2015 by which declares last week of April each year the Social Security Week to commemorate the entry into force of the Convention 102 on Minimum Standard Social Security International Labor Organization. Law 42 aims to promote during that week activities that generate awareness about the importance of building a culture of social security, protecting productive capacity of the people and defending social protection systems as mechanisms to build societies more supportive, inclusive and equitable.
By: Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
kers by developing activities and implementation of leading to eliminate or reduce risk factors in the post of work related physical loading, space design, places, hygiene, mental load and factors related to organizational measures and aspects of physical work environment throughout national territory.
In this regard, employers believe that a good performance in areas of safety and health at work and the environment is synonymous with quality and effectiveness in operation of enterprises. These factors lead to safeguarding welfare of workers as well as contribute to raising Similarly, the rule provides that the State shall competitiveness and profitability of organizations. promote establishment of agreements on social security and occupational health, as well as Finally we have the April 28 of each year World comprehensive training programs on social va- Day for Safety and Health at Work is held to prolues and principles, as well as dissemination mote prevention of occupational accidents and of the concept of dynamic social security and diseases worldwide, on recommendation of the health work approved by international organiza- ILO and as well It says “is an awareness campaign tions and institutions to which you are assigned. designed to focus international attention on the magnitude of problem and how to create and proOn this, we discuss agreements and regulations are mote a culture of safety and health can help reduaimed at improving conditions and working envi- ce number of deaths and work-related injuries.� L&E ronment for prevention of accidents and occupational diseases, promoting safety and health of wor-
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CONSULT, DOCTRINE & JURISPRUDENCE
MODIFICATIONS TO REGULATIONS OF INCOME TAX AND ISC
A
Augusto GarcĂa- Abogado augusto.garcia@rbc.com.pa
s is generally known, on May 4, 2015 was published in the Official Gazette Law 27 of May 4, 2015, through which important to the Tax Code changes were made, which affected provisions relating to the regime Income Tax (ISR), Excise Tax on certain goods and services (ISC), among others.
- The paid or credited to individuals or legal entities domiciled outside Panamanian territory by public law entities, be they the central government, autonomous bodies, semi, local governments and state enterprises in which the state owns 51 % or more of its shares.
Next we summarize some of changes proposed in the respective tax regulations:
- The paid or credited to non-profit entities to natural or legal persons domiciled outside Panama. Similarly if applicable withholding payments or credits are made to the agent or legal representative if payments or credits to the agent or local representative beneficiary living abroad are made. In this scenario if corresponding withholding can’t perform the agent or representative is responsible for paying the tax.
- If taxpayers with more than one source of income Given this reality, the executive recently issued the decrees and who are in loss, retention shall apply to extent No. 263 and 264 both of June 17, 2015, through which that payment or crediting affects conservation or getaxation of the income tax and ISC, respectively updated. neration of taxable income.
ISR amendments concerning: Executive Decree No. 263 of June 17, 2015, introduces significant changes to Executive Decree 170 of 1993 (Statutory income tax), among which are the following: a. Retention on remittances abroad On remittances abroad is set to be considered income from Panamanian sources and therefore subject to retention rules, the following:
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As provided in these regulations, accreditation exists from the moment that the person has relevant income for the account of beneficiary living abroad to conduct transactions on behalf of that either in Panama or abroad.
CONSULT, DOCTRINE & JURISPRUDENCE Not subject to the withholding obligation natural or juridical persons whose income is exempt under treaty, contract-law or special Act and those natural or legal persons who generate only foreign source income as stipulated in paragraph 2 Article 694 of the Tax Code. Those natural or legal persons who, because of their business activities develop operations outside the country are required to generate declared in the Republic of Panama income not subject to withhold on payments made for goods or services to be financed, contracted or executed outside the national territory. b. Withholding taxpayers covered by a special law. In accordance with provisions of Article 733-A of the Fiscal Code, in the case of those taxpayers covered by a special law exempting them to withhold income tax on dividends, interest, royalties, fees, etc., that exemption shall not apply in cases where recipient of payments as possible accredited in their country of residence, taxes that would have paid in the Republic of Panama, absent exemption in question. Should legislation of the country of residence of the recipient doesn’t permit such accreditation, the Republic of Panama recognize special scheme for concerned exemption, provided beneficiary proves conclusively, by formal opinion of an independent expert on tax matters his country wouldn’t proceed recognition of a tax credit for taxes paid in the Republic of Panama. In this vein, this regulation states that these taxpayers will be required to keep on file and available to the DGI a formal opinion from an independent expert, which must meet the following requirements: i. Transcribing the legal basis on which beneficiary couldn’t be taken as tax credit the Panamanian
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tax, or only partially let him take it. ii. Explanation of events that prevent recipient take a tax credit or only allow to take a portion of it. iii. Declaration stating that they who issued the opinion has suitability as an expert in tax matters in accordance with applicable law. Foreign companies registered as branches in the Republic of Panama which are exempt from income tax within Panamanian territory are also required to maintain an opinion of an independent expert under same conditions described above, in order to satisfactorily demonstrate that it’s not may prove wholly or partially tax paid in the Republic of Panama, absent the corresponding exemption. These opinions remain valid until a year after its issuance or until change conditions underpinning the opinion.
Modifications on ISC: Through the Executive Decree 264 of June 17, 2015, amendments are made to the Executive Decree 85 of 2005, by which Selective Consumption Tax on certain goods and services (ISC) is regulated, in order to update provisions of this regulation in response to expansion of the scope of that tax resulting from modifications contained in Law 27 of 2015. Next we summarize the main changes:
a. As for Gaming: This Decree modifies the concept of taxpayer including therein payment coupons or tickets, awards, records and other documents that contain a payment obligation, products games of chance and betting generating activities, performed in Full Casinos, Slots rooms Type A, Type C machines; Betting Agencies Sporting events, Bingo Halls, Telematics games, betting via the
CONSULT, DOCTRINE & JURISPRUDENCE Internet, and any new type of game of chance authorized by the State; to be redeemed for cash on hand or using any payment instrument or mechanism, including withdrawals escrow by the Administrators/ Operators, except bets at Presidente Remon racetrack.
c. Tax rate on outboard engines: Additionally, it stipulated a fee of 10% of this tax for outboard engines over 150cc engine, yachts, sailing boats, vessels for pleasure or sports, personal watercraft (jet skis), naval ships non-commercial use.
The tax caused by operations described above will be payable from May 5, 2015. The changes proposed in both regulations aim to harmonize these rules as amended by various legal To expand scope of the ISC on activity of games of excertas as Law 27 and Law 6 of 2015, however it is chance on awards product of this activity, a fee of important to keep expectations in order to measu5.5% was established. re effects of these modifications on the public finances, which have been seriously affected by evident decline in tax revenue collection reflected for some time. b. ISC in liquors: L&E
Amendments are introduced in order to harmonize regulations with equalization tax on alcoholic drinks introduced by Law 6, 2015. Accordingly, a rate of four and a half cents (B/. 0.045) is established for each degree of content of alcohol per liter of beverage, for liquors, wine and beer.
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CONSULT, DOCTRINE & JURISPRUDENCE
EXEQUATUR NOT APPLY TO JUDGMENT OF THE INTERAMERICAN HUMAN RIGHTS COURT
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ecently, the Office of Administration issued the Consultation 42-15 of June 8, 2015 by which gave answer to question posed by director general of the Public Registry as to whether a judgment of the Inter-American Court of Human Rights must undergo the procedure exequatur recorded in the Panamanian Judicial Code for the implementation of foreign judgment. In this respect the Agency, part noting that according to legal rules governing the subject judgments of the Inter-American Court of Human Rights doesn’t require compliance with enforcement procedures. He added that our country, by Law No. 15 of October 28, 1977, approved the American Convention on Human Rights, Article 33 referring to the Inter-American Court of Human Rights as one of competent bodies to deal with matters relating to the fulfillment of commitments made by the States Parties to the Convention. Within this context, it indicates the Attorney Article 62 of the Convention provides that States Parties may at any time declare either at time of appropriation of ratification or later recognize as compulsory ipso facto and without special convention, competence of this body in relation to cases concerning interpretation or application of the Convention. In this regard, the Authority notes that Panama by instrument dated February 29, 1990, accepted the final and binding nature of their sentences, under Articles 67 and 68 of the Convention. “It’s this recognition of jurisdiction of the Inter-American Court of Human Rights establishes, consequently, principle of binding and final and binding nature of its judgments, by Member States of which Panama is a signatory. It is, as has the doctrine of judicial power to
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Fuente: Procuraduría de la Administración judge and to enforce or implement what has been decided.” Developing topic at hand, the Office is of the opinion that the figure of enforcement may not apply because “it’s an international legal procedure by which requests another state recognition, approval or execution of a judgment was rendered on foreign state for the purpose of ensuring extraterritorial validity of it, in view of the principles of legal security, international cooperation and mutual reciprocity, which has to be developed according to the procedure laid down in Articles 1419 to 1421 of the Judicial Code, establish requirements demanded for a sentence issued by a foreign court recognized and therefore can run in the Republic of Panama. The distinction of such statements is that it has been issued as a result of the exercise of a personal claim. “ It states that compliance with judgments of the Inter-American Court of Human Rights in our country, is not subject to enforcement procedures, since recognition is already given by the Republic of Panama to accept the jurisdiction of the Inter-American Court of Human Rights with regard to the interpretation and application of the American Convention on Human Rights and therefore compliance is directly by the Member State which has been sanctioned for violation of the provisions of the Convention. To arrive at this criterion, Mr. Proctor makes a detailed analysis of the reasons that lead to these considerations and adds that judgments of the Court, require no follow an internal procedure for enforcement by national courts to be fulfilled by States Parties, since, they must in good faith, enforce the judgment, in observance of the American Convention on Human Rights. L&E
POLITICS THE REVERSIAL OF THE CANAL ZONE, DUE TO THE STRUGGLE OF ALL PANAMANIANS
I
n 1903 became a vital cocurrence.
The great northern nation leaned our territory for construction of a canal and, at same time, Panama had a tendency to take Colombian awkwardness in their canal negotiations for the long-awaited independence of Colombia. Given this and other facts and circumstances, November 18, 1903 Panama Canal Treaties between John Hay, Secretary of State, and Frenchman Philippe Bunau Varilla, diplomatic representative of Panama to the White House were signed. According to the criterion of Panamanians, Mr. Bunau Varilla will not granted special powers to sign the Canal Convention, all arbitrary and prejudicial to the interests of Panama.
By: Rafael Fernández Lara Independent Lawyer
rbcweb@rbc.com.pa
Interestingly quote president of the Colombian Senate at time, Pedro Fernandez Madrid, whose premonition endorse the above, predicting what would happen sooner or later: “I will give my vote to the draft today, creating the State of Panama, because I know the need of the isthmus constituted on basis of self-government, but I couldn’t hide that this is but the first step take toward independence that section of the Republic. Sooner or later, the Isthmus of Panama will be lost to the New Granada.”
Taking up the issue at hand, obviously primary reason for disagreement with the United States originated with National Government in 1903 and the signing of the Hay-Bunau Varilla, always described as one that “no Panamanian signed.” It’s important to remember that previous rejection Since then the fledgling Republic of Panama Herran-Hay Treaty by Colombian Senate wasn’t the is needed to face a number of interpretations only reason that caused the independence of Panama, and detrimental to our interests by US actions. because the right to autonomy was the inspiration for our perseverance and tenacious attempts to achieve it. In the administration of our first president, Dr. Manuel Amador Guerrero, in 1904, first problems We see for example the ephemeral separations 1830, immediately externalized with the United States, 1831, 1840, 1861 and the very creation of the Pa- when we set a protective tariff rate Dingley called nama State, evidence that issue of separation was in the Canal Zone, which excluded the Panamaalways present in vast majority of Panamanians. nian traders supplies the Canal Zone. Likewise, it
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POLITICS considered ports of Ancon and Cristobal as Canal nister Plenipotentiary in Washington did business Zone terminals and post offices were established. with purpose of negotiating another canal treaty, presenting a project in short, we make a pact: comPanamanian government expressed strong dissatisfac- pletely replace the Treaty of 1903; a new treaty of tion with Zonian authorities and US State Department. friendship and commerce would remember; and a As a result, the December 3, 1904, and under the Exe- treaty on joint defense of the canal would rememcutive Decree 182 issued by government of Amador ber. This project was never even discussed by the Guerrero, remembered call Taft Agreement between parties, which took Porras political opponents to the two countries, agreement valid for 20 years who discredit his repossession task facing United States. upheld interests of Panamanian traders and the Republic until 1924. In this agreement, Panama undertook In July 28, 1926 Panamanian people opposed Kelloggnine (9) points, including delimitation of the territory Alfaro Agreement, signed by both governments for reof the Canal Zone, Zonian access to the rest of the gulation of the method for expropriation of land for acRepublic and tax exemption for goods imported into tivities of the Canal; establishment of enterprises; and Panama and Colon. These commitments put on alert permission of customs facilities for Panama. This treaPanamanians on the Hay-Bunau Varilla and inter- ty, released late, was flatly rejected by Panamanian pupretations that the United States would do the same. blic opinion, deserve repudiation, among many others, Community Action and General Workers Union to Given the above, Amador Guerrero president consider it inconvenient and dangerous. Consequently, appoints an ad hoc committee formed by Pana- the National Assembly rejected this agreement. manians credited with proposing to reform the pact. As expected, the United States didn’t bow In 1936, during the administration of President to consideration of any alteration of this agree- Harmodio Arias Madrid was agreed other treament as highly advantageous to their interests. ty on the waterway, better known as General Treaty of Friendship, and with its Convention, was sigOn the other hand, regardless of apparent good- ned in 1936 and ratified on 24 December 1936. this will between two countries were frequent dispu- treaty the principle of American military interventes between civilians and members of Panamanian tion in affairs of Panama was canceled and chanpolice and US Marines, as in the case of ship Bu- ges legal concept that Panama is a country proffalo in September 1908 confrontation that resul- tected by United States. However, the treaty also ted compensation in a lawsuit filed by Washington pledged to Panama as a military ally of United States. for $25,000.00, which eventually became a settlement between the two States. On another occasion, On October 6, 1941, during first government of July 4, 1912, in the red zone of Cocoa Grove in Pa- Dr. Arnulfo Arias Madrid, he presents his Cabinama City a clash occurs killing one American and net a proposal by President Franklin Delano Roowounding nine, which set the amount of $12.350 sevelt to put artillery on Panamanian-flagged vesfor compensation that Panamanians have to pay . sels in order to confront German submarines in Panamanian waters. This proposal was rejected on Panamanian dissatisfaction with Treaty of 1903 once the basis that neutrality of the Panama Canal and is again evident in 1915, during administration of Dr. violated, even if it wasn’t in our hands its defense. Belisario Porras, when Envoy Extraordinary and Mi-
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POLITICS Filos-Hines Convention was signed on December 10, 1947, agreeing in this assignment to United States, for a renewable period of 10 years, of territory for bases in several places in the country. To be made public this covenant popular upheavals across width and breadth of the Republic, featuring different Panamanian groups including members of the National Assembly and students, which resulted in December 22 occurred the National Assembly rejected by Treaty unanimously. Thus, in 1948, United States dismantled all bases except those located in the Canal Zone.
berto Francisco Chiari and his entourage arrive at the city of Washington, DC, to present his US counterpart Panamanian dissatisfaction motives and sources of conflict between two nations. President John F. Kennedy of United States, and Roberto F. Chiari of Panama, signed a Joint Declaration with a view to regulating placement of Panamanian flags in Panama Canal Zone, as a symbol of sovereign rights of Panama this territory under US jurisdiction. High-level commission between two governments is named. The commission has its way and dissolve June 23, 1963.
The March 15, 1953, President Jose Antonio Remon Cantera, under its motto “NOT MILLIONS, NOT ALMS, WE WANT JUSTICE”, he announced its intention to request a review of the Treaty of 1903. The January 25, 1955, a few days after assassination of President Remon, both countries signed the Treaty of Mutual Understanding and Cooperation, better known as the Remón-Eisenhower Treaty, which increased annuity Canal to Panama, was established to Panamanian citizens residing in the Canal Zone should pay tax income to Panama and the commitment to equal employment conditions in the Canal Zone, and other trade measures is established.
On January 9, 1964, students of the National Institute of Panama are repelled by Zonian police for trying to sing national anthem and raise Panamanian flag next to the American at Balboa High School in the Canal Zone, resulting a conflagration for several days, with a final balance of 21 Panamanians and 4 American dead and around 500 wounded and disabled Panamanians. The still Panamanian President Don Roberto Francisco Chiari, announces that the Republic of Panama broke off relations with the United States.
As a result of these unfortunate events, get to sit on the government of the United States to negotiating table to On March 2, 1958, a group of Panamanian students consider revised Treaty of 1903 and its amendments. enter the Canal Zone and planted 75 Panamanian flags different Zonian areas, in an operation ca- During administration of President Marco Aurelio Rolled “sovereignty”. So it demonstrates, once again, bles, between 1964 and 1967, a period of negotiations nationalist sentiment and desires of sovereignty. during which three treaties, known as “Three in One” was agreed, without achieving any outcome is started. On November 3, 1959, Panamanians are presented These agreements included the negotiation of a new with flags at Goethals memorial in Balboa, then the modern treaty to replace the “Convention Isthmian Miraflores Locks, and one of these flags is humiliated Canal 1903” and its subsequent revisions, a treatise on by police Zonian. This causes a wave of violence until military bases and status of armed forces, and a treaNovember 5 with a balance of 36 American civilians ty that allowed Panama building a canal to sea level. and soldiers and 40Panamanian citizens wounded. On assuming power following the coup perpetrated From 12 to June 16, 1962, Panamanian President Ro- by military on October 11, 1968, General Omar Torri-
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POLITICS jos Herrera began a nationalist aim towards recovery channel, launching a resolute diplomacy in order to win converts for Panamanian project. A meeting of United Nations Security Council in Panama, which was adopted by vote a resolution to support Panama in favor of a new treaty just and fair is held in March 1973.
result of signing of the Panama Canal Treaty, better known as Torrijos-Carter Treaty, by which documents that gave us our fight is signed claiming ownership of the Canal Zone, and ability to manage the canal by top Panamanian, but also the greatest triumph of all Panamanians, a contest coming from our independence, to remove causes of conflict between Panama and After long and arduous negotiations, September 7, United States and taking over its main asset, the canal. 1977 was signed at the headquarters of the OAS in Washington, DC, the Panama Canal Treaty and the Undoubtedly all Panamanians, all administrations, and Treaty on the Permanent Neutrality and Operation of other some more than others, had their important role the Panama Canal, better known as Torrijos-Carter in the disappearance of perpetual control possessed the Treaties, who eventually eliminated causes of conflict great nation of the North over the canal, so that with between the two countries as a first basic achievement. passage of time only flag national waving on our nation. The final transfer, recovery of reignty, occurred on December
sove- It’s fair to say that the deed of 9 and January 10, 1964 hel1999. ped spur the patriotic spirit in all Panamanians. Relations with United States and months break after negoOutlining and synthesis of major historical events tiations between the two countries start to a new treaty. that culminate with total control over the Panama Canal Zone are once more documented histori- The country will always remember with sorrow cal struggle for national sovereignty, that from the the loss of these young people and the promise of very beginning of our life as an independent repu- their lives, which safeguarded honor of motherblic remained unchanged and priority at all times. land. The real heroes and patriots were the feisty boys bravely faced fire of an army and digniThe primary objective was maintained in the mind ty joined a village to confront unequal struggle and imagination of all Panamanians who never against the most powerful nation in the world. gave up just demands and recovery of our natio- That meant the nationalist deed of January 9, 1964. nal sovereignty in former Canal Zone. Panamanians chose the path of relentless struggle for right So, it’s fair in history of our nation, that recovery of and justice with weapons of reason and diplomacy. our sovereignty is a triumph whose reality must be attributed to everyone and no one in particular. Not Negotiations took amicably, within our means but to any individual or political party, or any given adwith dignity for many years, which brought us a ministration. It was primarily result of a generatiofair recognition and achievement of our main rea- nal struggle, which originated since it was signed son as a free and sovereign republic, now prou- the first treaty on November 18, 1903 which granted dly owned and Panamanian administration. the United States perpetual rights over the canal. To assert otherwise would be a historical aberration, The full transfer of sovereignty to Panama from that and an insult to intelligence of Panamanians. L&E unforgettable December 31, 1999, carries previous
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real 31,
PANAMANIAN ECONOMY
FIRST YEAR OF GOVERNMENT
A
few days after one year of arrival to State control by President Juan Carlos Varela and his team, accompanied by Panamanian Party which postulates and its allies of People’s Party, as well as independents who supported him, as well as the governance agreement signed with Democratic Revolutionary Party, once the results of the 2014 presidential election met, Panamanian people wondered why we won this event marked a milestone by achieving beat the machinery established by former president with his Democratic Change party and allies to be living. Public opinion expressed discontent with current state of economy in a downturn even though the numbers say we grow 10 times more than rest of countries of Latin America shows. The perception is that informal employment has grown, not diminished inflation increasingly a crisis is most evident in public services are in hands of private or public demand for better service increases throughout the industry health. Producers of food goods claim support for sector that will lead to achieving goals in food production and distribution to markets. The private sector expresses its deep dissatisfaction with slowness of the administration in general in arrears in payment of accounts of companies that provide services to state agencies, contractors of works in progress or which have already been completed.
V
ARELA’S
By: Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
sed during the campaign and others who had been in process of previous administration, allegedly driven by a desire to do everything in a transparent manner that not step by corruption so much talk today and rightly responsible for Justice are fighting every day with some good results received by population and one not. If we compare this year’s run against first year in office of previous president, Ricardo Martinelli, have the former president from day imposed a rhythm and style almost dictatorial and disrespectful of laws. He grew the treasurer, but annulled democracy. All megaprojects which managed former president, has made way to circumvent oversight activities of the Comptroller, avoid existing procurement laws and submitting prices to compete for best proposal for the state in provision of goods, services and build new works of public interest. In the end we have witnessed undisciplined how each project was managed and consequences overruns each benefit of proponents, with support of those responsible for overseeing the processes both the Comptroller and every public entity thatThey were allocated resources of public funds for execution, causing millions in losses for the state, which can’t be measured only in money but also in the image of Panama as a country.
With appointment of new authorities in the prosecution, Added to this hasn’t been a strong policy in the imple- the Comptroller and other institutions that must be guamentation of new projects that the president promi- rantors of processes and resources the state has succeeded
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PANAMANIAN ECONOMY in changing the course that had been imposed on administration of President Martinelli and we already see results characters that are subject to Justice for to account for poor performance of their duties as officials and loss of millions of dollars in bribes use and payment of royalties ill-gotten to individuals and companies who participated in each state project. This was a campaign promise of Varela and is one of the achievements obtained a year in office.
ces it offers, which is already restricted in some way.
Even with these achievements, the key lies in promoting productive economic activities, sustainable management of foreign investment, the momentum of domestic capital investment, which is added resulting in getting better jobs, solve basic problems of low-income population in health, education and social welfare. There hasn’t been effectively starting projects to improve infrastructure of public services such as water, sanitation by building sanitary sewer systems and their respective treatment of waste, new roads within the area and metropolitan, promised Metro line 2 doesn’t start, rehabilitation of Colon as promised even unbootable. Another problem that had to face Varela in this year’s government deficit of more than 1.4 billion dollars, added is the amount of 1.2 billion in accounts payable to private sector, all of which corresponds to the administration of Martinelli, and Varela attended mainly by cuts in public spending and brake works in progress.
Security an aide from United States comes through signing of a bilateral cooperation agreement, which is a help of 31.85 million dollars to strengthen the fight against organized crime, drug trafficking and improve public safety problems that affect ordinary citizens daily. However, the issue of security in our country has intensified homicides, robberies, assaults are the order of the day, so you don’t see progress on this issue, even though government representatives in one way or another present statistics that speak of declining crime rates.
The momentum of bilingual education program is one of the achievements and already there are students and teachers with scholarships to study in United States and Britain, which is to strengthen pre-schools high school, middle initial and basic, everything this in order to contribute to the development of education.
Within the first year of operation it should be mentioned that Panama Canal continues to provide dividends to the state, which in fiscal year 2014 reported the sum of 1.03 billion dollars to the Treasury, an increase of 64 million over budget. In general, perception and reality is that private enterprise with its dynamics in commercial sector, in private construction sector throughout the country that maintains an acceptable pace of construction sites and other areas of industry, ports, etc. help maintain the level of growth that country needs.
President Varela really is worn on approval of the population, if we see that when he took office in July 2014 approval rating was 89% and is now at 67%, according to the firm Dichter & Neira, who denoting a decrease of 22 points in 11 months, indicating that trend to continue for next year would drop to 45%. It’s hoped that once works of the State were suspended for an audit in cost overruns and functionality restart as Among the achievements is the updating and adop- several hospitals MOH-CAPSI inside the country, Contion of laws to meet requirements of Group of Fi- vention Center of Amador, road interchange in Cocoli nancial Action Task Force (FATF) to remove Pana- and the actual start of works such as Metro Line 2 and the ma from the list of countries not cooperating in fight Renewal of Colon is given we will reactivate the economy against money laundering and prevention terrorism, with equal arrival of more direct jobs, which was one of a task that must meet Martinelli administration sin- campaign promises and people demand promised. L&E ce 2012 and he didn’t. This is critical to Panama as an International Banking Center to continue the servi-
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PANAMANIAN ECONOMY
MONTHLY INDEX OF ECONOMIC ACTIVITY
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he Monthly Economic Activity Index (IMAE) in the Republic, in April 2015, measured in terms of the original series in 1996 prices, grew by 4.56 percent compared to the same period of 2014. Sectors that performed better for the economy were: fisheries, transport, storage and communications, construction, mining and quarrying, community, social and personal service activities, electricity and water, hotels and restaurants, and financial intermediation. The other sectors showed positive results, but in a slower pace, with exception of manufacturing and trade recorded decrease. Fishing reported positive rate due to the capture of species destined mainly for export. Together, transport operations and communications sector performed favorably, mainly by telecommunications, air transport and movement measured in the National Port System TEU containers.
Source: CGRP basically helped by revenue from gambling halls games of chance, especially type slot machines and table games. Production of electricity and water categories presented positive rates, due to higher hydro power generation and billed consumption of electricity and drinking water; however, it decreased thermal power generation. Tourism-related activities, such as services in hotels and restaurants posted positive results, the strong inflow of tourists and hikers, as well as for expenses made during their stay in the country. Financial intermediation showed a positive performance of both bank, and insurance business.
Growing activities less dynamic, agricultural sector showed increased activity as production of milk, tomato, watermelon, cantaloupe and bananas, as well as offspring of pigs, cattle and poultry. By contrast, declines were recorSectors of construction and mining and quarrying showed ded in vegetables and pineapple crops, mainly for export. a good performance, due in part to contribution of cons- Other services performed well were: privatruction in private sector; however, are still influenced te education, demand for qualified health perby low related to the Canal expansion and completion sonnel and also provided by private sector. of several large projects of state investment activities. For this period, business showed negative rate in retail, loProviding amucal wholesale and Colon Free sement and reZone. Manufacturing declicreation servine in industrial production ces continues related to the production of non-metallic products, metal, textiles, plastics and activities of publishing and printing activities. However, there was more food processing and paper manufacturing. L&E
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PANAMANIAN ECONOMY
ESTIMATED NUMBERS OF QUARTERLY GROSS DOMESTIC PRODUCT AT 2007 PRICES: FIRST QUARTER OF 2015
T
he performance of Panamanian economy in the first quarter of 2015, measured by Gross Domestic Product Quarterly (GDP), showed an increase of 5.9 percent compared to the same period last year. The GDP valued at 2007 prices recorded an amount of B/. 9,163.6 million for the estimated quarter, which corresponds to an increase of B/. 509.7 million compared to the same quarter of 2014. Of activities related to domestic economy, were good performance this quarter, mining and quarrying, construction industry, local wholesale and retail, transport and communications, financial intermediation, real estate and business services, electricity, government services . To a lesser extent it increased manufacturing. In aggregate values related to the rest of the world showed increased fishing activities, port activities, the Canal and trade from Colon Free Zone. They recorded decrease air transport and export of pineapple. Then evolution of different productive activities is presented:
1. Agriculture, ranching, hunt and forestry: Agricultural gross value added decreased by 0.6 percent due to behavior of certain activities such as production of banana and pineapple that showed a decline in exports of these items by 0.9 and 47.1 percent, respectively, compared with same period last year; It’s noteworthy that during first quarter, the weight of exports of fruit has a significant seasonal weighting has an impact on the results for the sector. For its part, stopped production Behavior watermelon and melon with increases of 10.7 and 339.7 percent. Other products that showed positive performance were: the production of cereals such as rice and corn rose by 1.6 and 7.9 percent respectively. Meanwhile, vegetables (onion, potatoes, industrial tomatoes and yams) as a whole showed an increase of 6.2 percent. Gross Value Added livestock showed an increase of 4.2 percent, mainly due to the culling of birds, rising by 4.7 percent, while those of cattle and pigs grow at 2.5 and 5.8 percent respecti-
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Source: CGRP
vely. The forestry activity grew by 0.1 percent, based on behavior recorded by the mills, compared to the same period last year.
2. Fishing: Fishing activity grew by 0.9 percent. The export of fish and other sea areas increased by 6.3 percent. In turn, shrimp export recorded for this period had a decrease of 9.3 percent.
3. Mining and quarrying: The activity registered growth of its value added by 8.3 percent, due to increased demand for basic materials used in construction of residential and commercial projects.
4. Manufacturing: Manufacturing showed an increase of 0.5 percent in gross value added compared to same period last year as a result of improved performance in production of food and beverages, paper and publishing and printing activities, with increases of: 3.6, 2.7 and 2.7 percent respectively. Food Group have production of meat from slaughter of cattle, pigs and poultry increased by 3.5 percent and manufacture of grain mill products grows at 9.5 percent. Regarding the group of beverages, production of alcoholic beverages such as emphasized: distillation, rectification and mixing of alcoholic drinks and production of ethyl alcohol from fermented materials, which together rose by 8.3 percent while development of malt liquors and malt grows at 5.6 percent, also the group of paper production and publishing and printing, we have to manufacture corrugated paper and paperboard and containers of paper, increases 30.0 percent. On the other hand, manufacturing industrial production declines in other activities relating to the manufacture of
PANAMANIAN ECONOMY non-metallic products such as production of cement and ready-mix concrete, metal products and manufacture of metal products for structural use and the textiles and plastics.
5. Electricity, gas and water: The category of electricity, gas and water reached a growth of 32.0 percent, which various electricity sector by 36.9 percent, mainly due to hydroelectric generation which reported an increase of 71.7 percent and thermal generation fell 35.3 percent; transmission and distribution of energy showed an increase of 7.2 and 5.9 percent respectively. For its part, value added of production of drinking water increased by 3.7 percent, associated with increased consumption of residential, commercial, public and industrial sector.
6. Construction: Construction activity showed an increase of 8.5 percent set, consisting of the production of construction market, which increased by 7.8 percent and construction for own final use grew by 15.7 percent. The behavior shown by sector is the result of execution of works of residential and non-residential buildings in the districts of Panama and San Miguelito, western sector and provinces. In addition, continuing infrastructure such as the road realignment that includes interconnections, rehabilitation and widening to four lanes of Pan American Highway Santiago-David and expansion of roads in Amador. The most important indicators linked to activity showed the following behavior: building permits excluding infrastructure rose by 17.9 percent, production of cement declined by 0.8 percent in terms of concrete, coverage has limitations, given the dynamics of sector .
7. Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods. Commercial activities showed an increase of 5.8 percent. Wholesale trade showed positive performance of 8.7 percent, influenced by increase in sales volume of building materials; parts and accessories of motor vehicles, among others. Meanwhile, retail trade showed a growth of 7.0 percent, due to increased sales of parts and new cars; Maintenance and repair of motor vehicles, food and beverages. For its part, value added of Colon Free Zone reported an increase of 2.1 percent, the best performance since re-exports for the period.
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8. Hotels and restaurants: This category showed an increase in its quarterly value added of 4.6 percent, mainly due to performance of services of restaurants increased by 5.4 percent and hotel activity increased by 3.0 percent, helped by visitor spending grew at 14.0 percent and the increase in tourist arrivals.
9. Transport, storage and communications: The added value overall transport and communications sector recorded an increase of 6.1 percent, benefiting from performance of the operations of the Panama Canal, which showed growth of 4.6 percent, as during this period increased revenues from tolls on a 2.0 percent at current prices to constant prices that correspond to an increase of 4.9 percent to increase of services to ships passing through this route, added 3.4 percent. The port system increased by 5.7 percent, which responds to increased movement TEUs containers and bulk cargo by 2.7 and 15.3 percent respectively; Meanwhile, overhead reported a decrease of 10.6 percent. Telecommunications business grew by 15.9 percent, due to increased demand for mobile telephony services as internet and cable TV. Air travel was a decrease of 5.5 percent, which relates to cutting flights to some destinations and the entry of new competitors.
10. Financial intermediation: This category grew by 11.1 percent, effect the performance of International Banking Center, which showed during the period, an increase of 11.1 percent in financial services locally, with outside and commissions. Mortgage housing, personal consumption, trade and construction: an increase in domestic loans to private sector, which favored portfolio balances in sectors as also observed. Insurance business reported a growth of 12.0 percent, due to increased claims incurred in automobile sector and health care. In turn, value generated by insurance brokers shows an increase of 9.8 percent.
11. Real estate, renting and business activities: For the quarter, this economic category grew by 7.3 percent; given the increased real estate activity for own final use (homeownership) in 3.1 percent effect of supply of new residential buildings. Real estate market, generated by ma-
PANAMANIAN ECONOMY nagers and promoters of property grew by 20.0 percent.
12. Private education: This activity showed a growth of 4.7 percent, mostly in response to increases in enrollment of secondary school of general education and university education.
13. Social activities and private health services: Gross value added of this category of health and social services grew by 7.9 percent effect of increase in the activity of private hospitals and clinics, number of doctors and dentists.
14. Other community, social and personal service activities: The whole industry value added increased by 4.9 percent, due to increased wagering on table games, slot machines, betting shops sporting events; meanwhile, racetrack betting, bingo halls and lottery had decreases.
15. General Government (Other non-market production) The value added by General Government for the quarter under consideration grew by 3.5 percent, driven on the one hand by number of staff at Central Government, among others, ministries of Government, Public Security, Economy and Finance; and decentralized public institutions such as Autonomous University of Chiriqui and Social Security Fund.
16. Private households with domestic service Providing domestic services to households rose by 3.6 percent, given increased demand of employed persons concerned.
17. Other components Financial Intermediation Services Indirectly Measured (FISIM) allocated to intermediate consumption of domestic productive activities recorded an increase of 6.5 percent due to demand for loans in productive sectors such as trade, housing, construction and transportation. Net taxes on products decreased by 9.8 grants percent. L&E
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WORLD ECONOMY MEASURES TO CUT THE INEQUALITY OVER WE ALL BENEFIT
-W
e must raise incomes of the poor
and middle class to reduce inequality and promote growth. - A lasting growth is to generate more equitable growth. - Intelligent fiscal policies and educational reforms, health care and labor market are required. “Needless to be altruistic to support policies that raise incomes of the poor and middle class. These policies benefit everyone, because they are fundamental to generate a more inclusive and more sustainable growth”, said Lagarde.
Source: IMF Survey
below and not from above,” Lagarde said, adding that the rich spend a smaller portion of their income, which could reduce aggregate demand and weakening growth. IMF earlier studies show that, in fact, an excessive income inequality undermines economic growth rate and causes, over time, less sustainable growth.
Causes and consequences of excessive inequality. Lagarde said the divergence between the sustained for decades of inequality between -driven by the rapid increase in the average income in the economies of emerging markets- and growing income inequality “In other words, a more sustainable growth is to gene- within a same country descent. rate a more equitable growth.” Lagarde noted that the two main factors that tend to Below and not from above. widen income gap between skilled and less skilled, especially in advanced economies professionals are teNew IMF research shows that an increase in the chnological and financial globalization. Other factors share of income of the poor and the middle class of involved are excessive reliance on debt financing, 1 percentage point results in an increase in GDP of a reduced social mobility and inequality of access to country of up to 0.38 percentage points in five years. education, health care and financial services, especiaInstead, an increase in the share of income of the lly in developing economies. richest 1 percentage point of GDP causes a reduction of 0.08 percentage points. Formulas for growth “Our findings indicate that, contrary to what is thought, the benefits of increased income comes from
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“Because this kind of disadvantages -this kind of inequality of opportunity-, millions of people have little
WORLD ECONOMY or no chance to increase their income and accumulate wealth,” Lagarde said. However, added that there are formulas that allow a stronger, inclusive and sustainable growth in all countries. • Macroeconomic stability -”Solid macroeconomic policies are the best friend of the poor” - supported by good government, since corruption can be a good indicator of the existence of deep social and economic inequalities. • Adopt prudent policies that achieve a balance between promoting greater equality and preserve great incentives to competition, innovation and investment. • Tighten fiscal policy, combating tax evasion, eliminating unfair tax breaks, reducing high taxes on labor, increasing the use of conditional cash transfers and freeing up resources by reducing energy subsidies. • Approve smart reforms in education, health care, labor markets, infrastructure and financial inclusion, to raise potential economic growth and boosting income and quality of life in the medium term. Lagarde said that this year economic authorities will have a unique opportunity of development for current generation, to transform good intentions into energetic and enduring acts: UN summit on Sustainable Development Goals in September and the summit try to reach an agreement to reduce carbon emissions in December. The prominent role of the IMF Lagarde said that the IMF can play a leading role in all these areas. The main mandate of the IMF is to promote global economic and financial stability, and the institution has been actively involved in development programs, helping its188 member countries to design and implement policies, and provide loans to countries experiencing difficulties, so that they could return to doldrums.
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In sub-Saharan Africa, for example, many countries have implemented solid macroeconomic policies in last decade and now reap benefits in form of stronger growth and better quality of life. The IMF has supported these efforts through new instruments such as loans with zero interest, but has also increased funding and capacity building. In addition, the IMF has intensified its studies on issues of inequality, gender and climate change, and are looking for new ways to increase access to its loans to developing countries in order to help cushion external shocks. In particular, Lagarde said the IMF still want to focus on helping the poorest and most fragile countries. L&E
WORLD ECONOMY
ECLAC STUDY ANALYZES INCENTIVES TO ATTRACT FOREIGN INVESTMENT TO CENTRAL AMERICA
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any countries have designed incentive policies to attract foreign direct investment (FDI) and promote exports based on special zones for export or free zones. A new publication by the Economic Commission for Latin America and the Caribbean (ECLAC) analyzes these tools and provides new proposals to replace them, considering that several of the current incentives must be dismantled during 2015 and that contravene certain provisions of the World Health Organization (WTO). The New generation of public incentives to attract foreign direct investment (FDI) in Central America study, prepared by Jorge Mario MartĂnez, Head of Unit of International Trade and Industry ECLAC subregional headquarters in Mexico, identifies international best practices, with emphasis on mechanisms of support services, incentives for research and development, and related to the environment. Taking into account the cases of Costa Rica, Panama, New Zealand, Republic of Korea, Singapore, China and the Middle East and North Africa (MENA), the report seeks alternatives to the WTO rules that prohibit some existing incentives such as tax exemptions contingent upon export performance or the use of domestic products by firms located in free zones, as they have a direct impact in terms of trade and are considered subsidies under the Agreement on Subsidies and Countervailing Measures of the WTO. In his capacity as small economies and developing countries, nations of Central America obtained a transition period to adapt their incentives and comply with WTO rules. However, this period ends CONICYT is December 31, 2015. Hence the need to analyze different policy options to replace prohibited subsidies, so as not to affect FDI and ex-
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Source: CEPAL
ports but which encourage greater corporate ties of free zones with a national development agenda indicates the study. According to WTO estimates, tax exemptions and tax incentives have come to constitute up to 5.6% of GDP in Mexico and 1% of GDP in Costa Rica in 2005. The publication proposes incentives for new generation that balance the need to attract FDI in adherence to the rules of the world body. These include special incentives such as subsidies to services, a sector that has grown in recent years, even beyond trade in goods. In this field the example of Singapore is interesting and could be replicated by Central American countries in order to attract port, financial and research and development services. There are exceptions in the area of environment. Countries can impose import measures or development support relating to health, life of people, animals and plants. The publication indicates other relevant tools that could be used as the design of incentives to FDI and exports are linked to poorer or less developed areas, linking aid or incentives to incorporation of certain domestic inputs, and support schemes for companies to conduct research and development. L&E
WORLD ECONOMY
GUY RYDER: ANTICIPATE THE FUTURE OF WORK IS ESSENTIAL FOR PROGRESSIVE SOCIAL JUSTICE
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he 104th International Labor Conference concluded with a consensus to carry out a major initiative on the future of the world of work. A long-range research on the impact of changing world of work was launched by the ILO tripartite following the massive support given to the initiative on the future of work during the 104th International Labor Conference (ILC). The initiative will focus on four main areas: work and society, decent jobs, work organization and production, and governance work.
Source: ILO
After a phase of intensive research and debates, high-level commission on the future of work will prepare a report for centenary of the ILO Conference in 2019. It is expected that this exercise will define the way in which the ILO will meet its mandate on social justice when it enters your new century.
2014 to the Convention on forced labor to the ILO, 1930 (no. 29) . Many delegates referred to the plight of workers in occupied Arab territories, where unemployment among Palestinians increased by more than 25 percent.
Director General of the ILO, Guy Ryder, said this year will be linked to major international processes, including the post 2015 Development Agenda and monitoring of Paris Conference on Climate Change.
The President of France, Francois Hollande, the President of Panama, Juan Carlos Varela and Kailash Satyarthi, Nobel Peace Prize 2014 and Chairman of the Global March Against Child Labour spoke at the Summit Conference on climate change and the world of work.
Some 4,500 delegates from 169 Member States of the ILO attended the 104th ILC, including 160 ministers. The Conference was chaired by Ieva Jaunzeme, Secretary, Ministry of Social Affairs of Latvia.
The 104th International Labor Conference unanimously adopted the program and budget for biennium 2016-17 of $ 797 million. Specific labor issues As regards specific labor issues this year were discussed During the two-week conference, the Cook Islands were four issues: admitted as 186th member state of the ILO and Niger became the first country to ratify the Protocol of Transition to formal economy
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WORLD ECONOMY On 12 June, the International Labor Organization (ILO) took a decisive step in reaching a historic new labor standard with a massive support. The Recommendation provides an international framework that would help hundreds of millions of workers and economic to move from informal economy to formal units.
trepreneurship, including access to financing; a favorable environment for enterprises; improving productivity and working conditions; development of value chains; and promotion of cooperative enterprises. The ILO also should devote more effort to formalization of SMEs in the informal economy. ILO action should be strategic and measurable and is necessary to ensure the Application of standards: 24 cases and rural workers production of a rigorous analysis of the impact of interThe Committee on the Application of Standards of the In- ventions to guide governments and social partners on what ternational Labor Conference (ILC) adopted conclusions works and what doesn’t in field of policies in favor of SMEs. on 24 individual cases relating to issues arising from implementation of labor rights. This discussion was based on the Social protection (protection of workers) annual report of Committee of Experts on Application of The Commission for recurrent discussion on soConventions and Recommendations, which is an indepen- cial protection (protection of workers) acknowledged dent body of legal experts and is responsible for examining that progress has been made in promoting protection the application in law and in practice of the Conventions and of workers between Member States of the ILO. HoweRecommendations of the ILO by Member States of the ILO. ver, too high a number of workers not benefiting from this progress, either because they are excluded from The Committee also discussed a General Survey concerning the scope of law, because the law is not applied in practhe right to freedom of association and instruments of rural tice, or because the level of protection is inadequate. workers’ organizations, including Convention on the Right of Association (Agriculture), 1921 (No. 11), the Conven- The Commission stressed need for laws, regulations and tion on organizations of rural workers 1975 (No. 141) and institutions governing protection of workers to keep up Recommendation organizations of rural workers 1975 (No. with the changes under way in the world of work. Regu149). The Commission reaffirmed its commitment to ensu- lation of working conditions in respect to wages, worre the application in law and practice of freedom of asso- king hours, safety and health at work is essential for ciation for all workers and employers in the rural economy. social protection of workers effective and inclusive. SMEs are crucial for economic growth and decent work for all The discussion on “Small and medium enterprises and The Commission stressed importance of strengthe creation of decent and productive employment” rea- thening the gender dimension and to extend soched a broad consensus on the vital importance of SMEs cial protection to all workers. Also it showed that for achieving the goal of decent and productive work. effective systems of social dialogue and collective bargaining contribute to achieving this protection. This discussion concluded that SMEs account for two thirds of all jobs worldwide and create most new Identified the following priorities for action: working jobs. The SME policies well designed help create more hours and balancing work, family and private life; extent and better jobs and contribute to sustainable econo- of protection of workers in SMEs; effective protection mic growth. Given the heterogeneity of SMEs, in- of workers in atypical forms of employment; psychosoterventions have to take into account characteris- cial risks and violence in work, work-related stress and tics of enterprises such as size, sector, growth and age. mental health problems that may be caused by changes in work organization; and promoting protection of worIn future, the ILO should maintain its current port- kers through responsible procurement practices. L&E folio of interventions aimed at: development of en-
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ILLUSTRIOUS PANAMANIANS AMELIA DENIS DE ICAZA (1836-1911) To Cerro Ancon No longer guards the traces of my footsteps, you’re no mine, idolized Ancon. And the fate that broke ties That in your hillside formed in my heart.
Amelia Denis Duran de Icaza was born in Panama City on November 28, 1836. Her father, Saturnino Denis, who some say was another France that was more Panamanian, was a newspaper editor; and Panamanian mother Carmen Duran. Moreover, both her father and mother took care to cultivate values and culture in. She received her primary education at Elementary School for Girls, in Santa Ana. Since childhood she had great love for literature and poetry, helped in the newspaper edited her father at the time. She becomes the first known Panamanian woman who wrote verses.
and “public good”, using the pseudonym of Elena. As for her poetry, Doña Amelia kept a style that, though denoted complexity, for it was very easy to master. Her works have a strong social and political content of the era in which she lived. Her best known poem is to Cerro Ancon, where expressed her distaste for the creation of the Canal Zone and aroused the patriotism of the Panamanians to try to recover the Panama Canal. Among the poems of Amelia Denis de Icaza we can mention the following:
Married twice both times with panamanians. Her first marriage was to Antonio Ramirez and the second with Jose Maria Icaza. She had a total of five children, Ernesto, Julia, Florencio and Hebe’s first marriage, and Mercedes, the second. Her daughter Mercedes married in Nicaragua with Ponciano Espinosa. Jose Maria Icaza, her father decided to accompany his daughter to Nicaragua. But it’s in the same country where Mr. Icaza dies. Shortly after Amelia Denis v. de Icaza moved to Nicaragua (in 1894), where she lived with her daughter and granddaughters.
To Cerro Ancon (1906); Country; Mother Love (1879); Let Come (1909); On the death of Victoriano Lorenzo; The cry of a daughter; Letter to My Beloved; Sister Matilde Denis (1875); A Bouquet of Resedá (1900); A Panama (1879), among others Amelia Denis de Icaza died on June 6, 1911 in Managua. The remains of the poet were repatriated by Panamanian government on 1 May 1936, 25 years after her death and 100th anniversary of her birth. Today rest in the Amador cemetery.
Doña Amelia lived in Nicaragua for over 20 years. Worked at several newspapers, among them “The Work”
There are two separate monuments in the Santa Ana Park and the Cerro Ancon where the
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ILLUSTRIOUS PANAMANIANS poet greets you when you reach the top, with our flag and awaken those patriots thoughts again. Walking through our history we are great people with great fervor that drove the Canal Zone to Panamanian hands back and we can proudly say that the Canal is ours.
DEMETRIO KORSI (1899 – 1957) Inflexible Ode (To Cerro Ancon) Ah, When you return to your summit, Our flag fluttering one day? When will the easement slain your people, my country? Demetrio Korsi, 1954. Born in Panama City on 13 January 1899. He died in this city on October 30, 1957. Son of a Panamanian lady and a Greek citizen. Graduate degree in the National Institute (1916). Director of the Colon Library, consul of Panama in San Francisco, California (USA) in Havre, France and Kingston, Jamaica. He founded the magazine Flash Lay and was editor of other cultural magazines. He was also director of the Official Gazette. Among his poems we have the following: Foreign Poems (1920), Virgin Soil (1923), Wind in the mountains, (1926), Block (1934), Cumbia (1935), The cricket singing on the Canal (1937) , I sang at the foot of Ancon (1943), Small anthology (1947), Nocturne in Grey (1952), the gringos come and go cumbia (1953), Time was lost and everything was the same (1956). In his poems recounted stories of daily life in the underclass, where there was a mixture of races among indigenous, African descendants, mulattos and Creole and gringos newcomers apart from having an exclusive area also wanted to snatch women natives.
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Don Demetrio Korsi was one of those who expressed their displeasure with Doña Amelia Denis de Icaza Ancon Hill that no longer belonged to Panamanians and which encouraged the people to fight, so that someday could wave our flag on the highest point of the city.
DEMETRIO HERRERA SEVILLANO (1902-1950) Duffers heat and night, spend rooms, Rooms ... Rooms ... Rooms of the poor with his bare boys. Rooms where the sun does not enter, The sun is aristocratic ...
Born in Panama City on November 27, 1902, his Colombian father and mother native of La Chorrera. Was a humble man, who lived in the Plaza de Santa Ana, except for some absences in San Blas and David. Only he studied elementary school. Self-taught everything he knew about poetry learned in books. Among the poems of Demetrio Herrera Sevillano we can mention the following: became very popular with his poem “Rooms”; My First roulades (1924); Message Verso (1934); Camera (1937); The Feast of San Cristobal (1937); Poems of the People (1938); Poetic Anthology (1945); Slave Song (1947); Windows (1950). In 1949 he won the third place of Ricardo Miró Prize in poetry with poem “Window”. Don Demetrio was characterized by writing daily reality of life in poor neighborhoods where the needs and poverty flood hopes of people who live there.
ILLUSTRIOUS PANAMANIANS
RICARDO MIRO (1883 – 1940)
He was born in Panama City in 1883. His father of the same name died March 26, 1887, and the boy grew up with his brother Gregorio, the care of his mother, Doña Mercedes Denis Miró, sister of Dona Amelia Denis Duran de Icaza. Later he moved to study painting in Bogotá, where had to go back for political reasons. Lived effervescent times the canal by the French, foundation of the Republic in 1903 and experienced very sensitively Saxon presence in the Isthmian territory. After 1903 he held various positions in the civil service. It was at this point that his poetic vocation arose and abandoned his previous interest in painting. Perhaps we should consider here that, in 1904, with the publication of El Heraldo of the Isthmus, directed by Guillermo Andreve, were offered to intellectuals opportunity to publish and read collaborations abroad. In November 1904, received an incentive: he triumphed with three patriotic sonnets in a competition organized by El Heraldo of the Isthmus. In 1906 he married Isabel Grimaldo Jaen, and the following year released the magazine New Rites, directed by him. In 1908 she released her first book, Preludes, and the government in London appointed him as a member of the diplomatic corps, although he didn’t travel to England (the causes are unknown, says his son), but took a consulate of the Republic. In that period lived in Barcelona, frequented Vargas Vila, and that was when he wrote his poem “Patria” in 1909. In March 1910 the Panamanian government appointed him consul in Marseilles, and in 1911 returned to the Isthmus. This was his European period, which accounts for a highly valued and his brother Gregorio Miró, manager of New Rites in the absence of Ricardo, published in the journal production, which
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resumed the poet to address return. In 1913 he released in The Journal of Panama, the nights of babel, serialized novel. In 1916 he published the Second Preludes with the warning that they weren’t “final verses”, but even so, this book admiration won critical. In 1917, he was appointed Secretary of Governor´s in Colon, while Pacific Legend published poem firmly linked to the Spanish scholar tradition. The administration of President Belisario Porras appointed director of the National Archives in 1919, serving until 1927. In 1922, he published his second novel, Flor de Maria. In 1926, Panamanian Academy of Language, newly installed, made him his permanent secretary. During the following period, edited a selection of patriotic poems and recitations school. In 1929, came to light Silent roads, small in size, but with essential poems. That same year released “The poem of reincarnation.” In 1937, when Rodrigo Miró wrote an essay about his father (included trial and updated in Theory of the Fatherland), it was published a Ricardo Miró poetic Anthology: 1907-1937. And as if he had been a writer of the century, with the pseudonym of Juan Franco served the column “From desserts” in The Journal of Panama. On March 2, 1940, shortly before noon, the poet died after a period of existential sadness. Rodrigo Miró Grimaldo trial reported in his Introduction to the poetry of Ricardo Miró, director of New Rites, had to make short story writer, critic, proof reader so aloof from the influence of the Yankees. The joy of native considered an independent country became to perceive despite mediated by the close relationship with the United States. All this, however, is interpretation. The truth is that for over seventy-five, the poem “Homeland” adjusted the mindset of the people to be linked necessarily to the Canal Zone, and remained alive and strong in the popular memory of blacks and whites , the cholos and not so cholos, Indians and children of Chinese, Jews, Italians, Spaniards, Greeks, Hindus, Caribbean and even Americans who attended the Panamanian schools where is taught to worship the poem Patria. Everything else is literature. The annual competition for literature in sections of short stories, poetry, essays, novels and theater offers five prizes named after Ricardo Miró Prize. There is also a first cycle of primary school located in the village of Pueblo Nuevo in Panama City that bears his name.
(Source: Encyclopedia of History and Culture of the Caribbean)L&E
EDUCATIONAL CAPSULE MARCHES AND SUSPENSION OF CLASSES
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ecently students and teachers from Fermin Naudeau Institute village of Bethany, marched to the Presidency of the Republic, in order to denounce poor condition of their squad is. Both teachers and students said that the campus is completely abandoned, so they asked President Juan Carlos Varela and MEDUCA authorities, giving an immediate solution to their problems and have no intention of suspending classes. The secretary general of the Association of Professors of Fermín Naudeau Institute, Elio Gonzalez, emphasized that the institution has problems of infrastructure, which doesn’t have suitable water sources for students, the construction of new bathrooms necessary recruitment administrative personnel, supplies used in biology labs, physics, chemistry and natural sciences, essential equipment to improve quality of education. Also the Association of Professors of the Republic of Panama held a march to the Presidency of the Republic to deliver a letter with a list of demands to address the poor conditions in which many educational institutions throughout the country, indicating that to date they haven’t received any response from the MEDUCA. In addition, the teachers’ union leader, Diogenes Sanchez of ASOPROF, in his remarks said that should invest more in education system, so won’t be MEDUCA budget for infrastructure should be increased. As is known to all, we’re in the second quarter of classes and there are still schools with big problems, such is the case of Empress Taboada school, located in the village of Tocumen,
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Alexander Canto - Educator archivo2@rbc.com.pa
where again teachers suspended classes, demanding solution. Drawing on the above and considering that we are already in the second quarter of classes, educators have raised the MEDUCA that hasn’t faced in best possible way every one of problems faced by schools in the country, so the MEDUCA authorities should have a self-assessment and find strategies and mechanisms for solving each of educational institutions in short, medium and long term. Should create commissions within the MEDUCA where continuous monitoring to give each of the needs presented by each school, taking fundamentals such as infrastructure, educational inputs and equipment both classroom and laboratory, in order to find solutions accurate and concise soon, because the only ones affected are students, since this affects their learning. L&E
FASHION WHAT WE MUST TAKE INTO ACCOUNT WHEN BUYING A SUIT OR JACKET "In fashion, what fits you,” Here’s how! Nadia Chang - Strada Eleganza rbcweb@rbc.com.pa
They can like or dislike the idea of wearing suits, but we all know that it’s essential in a man’s closet, then either employment or social question always comes that moment in the life of a man who has to wear one and that is we should all know the basics to choose it, because although clothe one, if not a good fit for us, it’s not correct or not knowing how to combine size, lose their function to make them see well dressed and not have that air of formality and elegance that characterizes them. In the executive culture of our country, the suit or jacket is an essential part of dress code, so it is essential for men to have correct criteria when their choice.
A suit for everyone You see the purchase of a suit as a necessary expense and not as an imposition, it’s the only garment that is considered formal, because its origin was in European royalty in sixteenth century and has evolved to current suit we all know then there is no excuse to buy one, plus you never know when you’ll need it so it’s better to have it in case of emergencies. But what you should know if you want to buy one or if you have really qualify, here I give a simple guide to find the perfect outfit.
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MODA FORMAL SUIT vs CASUAL SUIT
Instead of a formal suit is made of 100% qualiThe most important thing is to differentiate bet- ty wool, of course can also be combinations such as ween formal and casual one outfit, because although wool/cashmere, wool/silk they are basically fine fathe two are costumes, aren’t equal and everyo- brics. They are fabrics with sober colors or discrene will know to use depending on the occasion. te patterns, plus there are fabrics with different tissues.
CLOTH: A casual dress is made of fabrics like cotton, polyester (combined with some natural fiber), corduroy, linen, viscos, etc. Are made with these fabrics for comfort and ease of use and combine well that can be stamped with bold patterns or dyed strong and equally bright colors that are created specifically for the season and trends these have gone on sale making them become a disadvantage for temporary designs, yes you will look cool, but by the next season or next year will be completely out of it. So if you want a casual outfit opt for solid colors or patterned discrete, then you will be easier to combine in coming seasons (stripes, discreet pictures or Prince of Wales). A casual outfit bold
Choosing a fiber like wool to make a suit is because the wire is thin and has a better view and fall that the fibers used in a casual outfit. In a formal tweed suit we find a label that says SUPER 100, 110,120, 130, 140, 150, 200, inside bag, and this refers to how thin the thread, the number to indicate how many threads There is a, higher the number, finer the thread, square centimeter of fabric but this is independent of the quality because 110 can’t be better than a 100, importance of this issue is that the higher most delicate and better fabric fall has only should note that it can slightly increase the cost of the suit. As for color our recommendation is navy blue or gray that are easy to combine and formal (for the black is considered a color for events or situations labeled), and the fabric is SUPER 110 or 120 because it is a comfortable suit and durable.
CUT:
While cutting is similar for both casual outfits have a tighter body and a more modern design than a formal court attire, but in reality the two are based on three styles of dress:
ENGLISH CUT:
• Discrete pads or without pads. • Moderate adjustment in the waist. • Flap pockets. • Two rear openings. It’s a traditional cut is classic in a suit for two rear openings make best seats in waist, making you look taller and thinner, but this cut is the most tailoring adjustments required.
ITALIAN CUT: Nothing like wool.
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• Pads very marked. • Tight at the waist. • Without flap pockets. • No rear opening. It’s a cut that emphasizes a tiny waist to create the sil-
MODA houette of investment that many seek, in addition to an image of someone with power and sense of fashion triangle. The disadvantage is having no opening on the back of promises your freedom of movement.
AMERICAN CUT:
pant is 32 “which are 8 inches apart, then it can complicate a little finding the size of your suit because the higher the DROP is for an athletic body (back wide, thin waist) and conversely, the lower the wider waist DROP is the customer. Here in Panama in most cases is brought to Drop 6, which is the most popular and fits most bodies.
While it is a cross between English and Italian cut making it more comfortable and casual, it’s a less stylized suit and you really square.
Despite this, there are several brands and concoct costumes that can be sold separately jacket and trousers, disadvantage is that it can increase the cost because it requires more work and resources produced by this type of suit but even if you buy a suit that Band together, with help of a tailor you can fix the pants if you don’t set the waist but the bag itself.
• Discrete pads. • Straight waist. • Flap pockets. • A rear opening.
Our recommendation for the perfect outfit is English cut for comfortable and so stylized that no matter whether it is formal or casual is also the most easily can be adjusted to your body with the help of the tailor.
VEST:
The suit is everything.
The vest makes it more elegant.
SIZE:
And being clear what difference between a formal dress and casual dress, we talk of adjustment of clothes, it doesn’t matter which one you choose, a suit should fit perfect to your body because you talk a lot about yourself and first impression you give to the world. Nothing better be well dressed to complement the impression responsible, reliable, and that cares about details.
As cutting the two types of costume depart substantially same scale is inches in costumes a scale is DROP is handled, and this refers to the relationship between jacket and pants, for example, in one size DROP 8 sack is 40 and the
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Having a vest with same fabric as the suit is the clearest sign that this is a dress suit. Originally a tailored suit without vest was not, now they are no longer used, but certainly the use gives a classic and very formal touch either for work or everyday. So don’t be afraid to wear a suit with a vest, just remember to add more volume to your body so coat and vest should fit perfect to your body.
MODA Key points a suit are:
JACKET OR SACK:
• You must embrace your shoulders, without pulling on your back and have wrinkles either because it is too big or too small.
• The long sleeve jacket, waist and armhole, can be corrected by a tailor, then seeks a perfect fit on the shoulders because these are very difficult to correct addition compromises to structure of suit.
How buttoning, this example is for a three-button model (which is no longer widely used, however I did well for those who still have, and applies equally to two buttons, first button always, and last ever. • The pad should end exactly where your shoulder ends, a method to see if size is correct is that lean your shoulder against the wall, if bag touches the wall first, means that it is very large. • Sleeves must fall where your wrist starts and permits show ½ inch cuff. • To find out if bag is correct length, place your hands on sides of your body and bend your fingers up (like a claw) and this should rest on your fingers. It should cover much of the close of pants and your buttock completely. • When you close the sack buttons should not pull the fabric because it means it is very small and if you pull out slightly the first button shouldn’t go beyond five centimeters, if so it is very large. • Try to armhole (cuff) is not too low because otherwise when lifting arms bag move.
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This way it must to you still have.
PANTS:
• Pants are made to be long, so they can be cut to fit each person. • Pants should have a “break” or double minor when resting front and back of your shoe must end right in the middle of shoe where heel begins. While it’s a personal decision, take shorter (no pleats) is more high fashion is very difficult to use to look good; and with many folds it means that this very long. For convenience and best finish you can ask the tailor to make diagonal hem, so this shorter in front and a slightly longer back. • The clamps on waistband are classic and elegant but now are no longer used because now a leaner and more modern silhouette is sought. For clamps give the impression of packages or extra volume. Avoid them if you’re short and have extra kilos.
MODA collar • Tie should end exactly on the belt, as if pointed toward the closure.
FOOTWEAR:
How to combine footwear.
SHIRT:
• Shirt collar must reserve permits closed introduce two fingers (in parallel). This is to make it comfortable and don’t press when you move the neck wearing tie.
Sometimes we don’t know what colors costumes match the color of shoes, depending on the time, you can use blue or gray suit with brown or burgundy shoes, but if it’s for a night and more formal occasion should use preferably black color however take into account that for daytime occasions can vary and will not be typecast in use only black color, the main idea is to harmonize. But remember that dress suits are used oxfords, blucher or Bostonians (with laces); moccasins give a more informal and casual touch so choose carefully depending on how you use it to suit. And NEVER use with tennis sneakers.
• Choose a cut to body adjusted as SLIM FIT if you’re thin or Taylor Fit if you’re chubby (or width, or stuck, intermediate cut), for there is nothing worse than seeing a man bag remove that setting perfect and has a shirt made balls underneath. • To find out if it’s correct length shirt raising both arms test, this shouldn’t completely out of pants and when you return your arms to sides must not have many bags. • The length of sleeves should end where your thumb meets your wrist. As stated above it should be ½ inch fist when you bring the American setting. • As with suits, waist, long shirt and sleeves can be adjusted by a tailor but also shoulders should fit perfect as it’s the same problem with an American.
NECKTIE:
• Depending on the width of flap of bag, it will be the width shall have the tie. • The size of knot, will depend on length and type of your
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Crossed classic and with style
So now you have it! No excuse to have the perfect outfit, you may choose a formal suit, a casual outfit or both, you know that you should keep in mind to keep a perfect suit and impress everyone. Hopefully that will be helpful and if you have any questions I am always at your service. L&E
SPORTS CAPSULE
Albin Rodríguez albin.rodriguez@rbc.com.pa
PANAMA NATIONAL TEAM READY FOR THE GOLD CUP
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ational team coach Hernan Dario Gomez, defined the list of 23 players who will represent Panama at the CONCACAF Gold Cup in July in the United States. The list consists of 17 legionnaires and six players who play in clubs of the Panamanian Football League (LPF). Of the 23 who travel, eleven were with the team that finished runner-up in 2013 after falling 1 - 0 to United States in the final in Chicago. Of the twelve remaining six will play their first continental tournament. Beginning of Works Work with a view to giving Gold Cup start at eight o’clock in Rommel Fernandez Stadium. Initially started with players from local clubs, as well legionaries who are in country. Team will travel to Dallas, Texas, home of first match of tournament, against Haiti, on July 7. The last training selection of Panama in the Rommel Fernandez Stadium served to coach Hernan “Bolillo” Gomez possible to test with the team owner will use the July 7 against Haiti in its debut in the Gold Cup. The morning practice of Panamanian selection was based on routine began with a jog to campus around the field and then go to a ball game (basketball style) in confined spaces and then the coach Bolillo Gomez proceeded to tactical work. In the defensive zone could be changing include Harold Cummings as a companion to Roman and Machado would be at right side. Cummings has discomfort in his right thigh and was differentiated work on Monday.
join the team in Dallas, while Jaime Penedo is also in United States would be the starting goalkeeper. The captain of Panamanian team Román Torres sends message to fans. In the last training of Panamanian team captain made it clear that go with everything for Gold Cup, are mentally prepared to go step by step and reach the final again as they did in last tournament and try to give everything for all to win. He also said that “the only thing they need is more concentration and a little order, have attitude and desire to do things right.” List of the 23-man squad Player (Club-Country): Goalkeepers Jaime Penedo (LA Galaxy - USA) Luis Mejía (Fénix - URU) Jose Calderon (Coatepeque - GUA) Defenses Román Torres (Millonarios - COL) Harold Cummings (Ind. Santa Fe - COL) Roberto Chen (Málaga - ESP) Adolfo Machado (Saprissa - CRC) Luis Henríquez (Lech Poznan - POL) Eric Davis (Sporting SM - PAN) Middlemen Miguel Camargo (Chorrillo - PAN) Darwin Pinzón (Sporting SM - PAN) Valentín Pimentel (CD Plaza Amador - PAN) Alfredo Stephens (Chorrillo FC - PAN) Aníbal Godoy (Honved Budapest - HUN) Gabriel Gómez (CS Herediano - CRC) Alberto Quintero (Lobos BUAP - MEX) Armando Cooper (St. Pauli - GER)
In midfield could enter Gabriel Torres for Pimentel and at front Tejada would be accompanied by Blas Perez. Gaby Torres and Blas
Strikers Blas Pérez (FC Dallas - USA) Luis Tejada (Juan Aurich - PER) Rolando Blackburn (CSD Comunicaciones - GUA) Roberto Nurse (Dorados de Sinaloa - MEX) Gabriel Torres (Colorado Rapids - USA) Abdiel Arroyo (CD árabe Unido - PAN) L&E
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GO PANAMÁ!!!
CAPSULA CULTURAL Activities for july: Theater:
• Circle Theater “La Fuga” whole month. • Teatro La Station: Magic and Humor, MarKo Magician June 13 to August 16. • Teatro La Quadra: o “Temporarily Gay” from 14 to 26 July. o “Improrrumble” from July 26 to August 2. o Rent in Concert 21st to July 25th. • Teatro ABA: Naked, June 25 to August 2 • Microteatro Panama: Dangerous Liaisons until 8 August.
Festivals & Fairs:
• National Festival of the Pollera in Tables 22 July. • Debutantes Festival of Guadalupana Ladies, July 4, Terrazas del Mar South-Club Union. • Craft Fair July 27 to August 2 Atlapa Convention Center.
Sports:
• Dragon Boat Regatta, July 12 in Playa Veracruz. • World Games - Special Olympics from July 25 to August 2.
Museums and Exhibitions:
• MAC: Essential Zachrrison: Archival Engraving 1 July to 23 August. • Belisario Porras museum in the city of Las Tablas, Los Santos, invites you to visit the exhibition of dresses of the Virgin of Santa Librada, from 11 to 27 July.
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Mariela de Sanjur mariela.sanjur@rbc.com.pa
Galas, concerts and presentations:
• Casa Esperanza “Gran Gala Night 2015”, July 2, Sheraton Panama Hotel & Convention Center. • Blue Man Group 1 to July 5 Anayansi Theater, Atlapa. • Concert by the National Symphony Orchestra | July 9, Balboa Theatre • XII Meeting of the International Guitar, National Theater of Panama from June 28 to July 2. • American Extravaganza, July 4 Figali Square. • Jorge Villamizar in Concert, July 9, Megapolis Convention Center. • Photo exhibition, “A journey 12,000 years”, introduces the UNESCO World Cultural Heritage in Turkey, Monday, July 6 at 5:00 pm in the Gallery Juan Manuel Cedeño INAC, located in the Plaza de Francia in Casco Antiguo.
Seminars, Congress, conferences, Courses and Expo:
• Rivera, Bolivar and Castañedas: Seminar “Meet the new regime for the prevention of money laundering and other criminal behavior” (Law 23 of April 27, 2015), Salon Chagres Sheraton Panama Hotel & Convention Center (Atlapa) July 21 8:30 am to 5:30 pm • Panama Graph Expo 2015 will be held at Atlapa Convention Center from 22 to 24 July.
• “The emergence of the Isthmus of Panama” Talk of Dr.
Carlos Jaramillo, in the auditorium of Building Tupper Smithsonian Institute in Ancon, July 1 at 6:00 pm • MAC: Course: “Our great teachers of century XX” 4, 11, 18 and 25 July. • Bazaar’s Festival: July 19, Continental Hoptel & Casino, Salon Bolivar. • Graph Expo 2015 Panama, 22 to 23 July at the
CÁPSULA CULTURAL Atlapa Convention Center. • Conference: Emotional Intelligence at work, July 29 at the Holiday Inn Express. • Central Entrepreneurship Forum, July 16 Ateneo of City of Knowledge.
Activities and festivities:
• Patron Santa Librada July 19. • Initiates Phase Archdiocesan Solidarity Campaign July 22. • Elections in the Bar July 17. • Independence day of United States of America, July 4. • Foundation of National Library Ernesto J. Castillero, July 11. • Anniversary of storming of the Bastille (France) July 14. • Festivities of the Virgen del Carmen, July 16. • Birth of Simon Bolivar, July 24. • Driver Day, July 25. • International Mangrove Day, July 26. • International day of the Swamp Ecosystem, on July 26. L&E
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Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA