Magazine L&E May 2015 by Revista Legislación & Economía

www.rbc.com.pa

ISSN-1726-1485 MAY EDITION-15

- COBRANZAS DEL ISTMO - CORRUPTION: A CALVARY OF THE PANAMANIANS - AMENDMENTS TO THE LAW OF PROCUREMENT - FIFA CORRUPTION - BELISARIO PORRAS

Consejo Editorial

Colaboradores en esta edición José Javier Rivera J. Ana Sofía Corrales

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

Rafael Fernández Lara Moisés Véliz Arosemena Ileana Lutrel Giovana del C. Miranda G. Maybé Mendieta Yhestryll Mc Cree Lisbeth Martéz

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

Albin Rodríguez Jonathan Forget Mariela de Sanjur Nadia Chang

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

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@rbc_abogados

CONTENT 6. 8. 10. 12. 12. 13. 14. 15. 15. 16. 17.

EDITORIAL COBRANZAS DEL ISTMO, S.A.: ANOTHER SCANDAL

INVITED WRITTER CORRUPTION: A CALVARY OF THE PANAMANIANS

NORMS OF INTEREST COMMENTS REGARDING THE AMENDMENT OF LAW 22 OF 27 JUNE 2006, WICH REGULATES PUBLIC PROCUREMENT, WITH VARIOUS REFORMS APPROVED HISTORY OF RELATIONS BETWEEN PANAMA AND UNITED STATES RETURNS TO CLASSROOMS MINORS CAN’T MARRY AGREEMENT ON DECENT WORK FOR DOMESTIC WORKERS IS APPROVED RENOVATION OF CRISOL DE RAZAS FOREIGN PROFESSIONALS HAVE TO VALIDATE THEIR TITLES EXTEND IMPORT OF FIREARMS

CONSULT DOCTRINE & JURISPRUDENCE STOCK CHANGES OF BROKERAGE COMPANIES MUST BE PASSED BY THE SUPERINTENDENCE OF INSURANCE AND REINSURANCE MIGRATION, EMPLOYMENT AND SILVER POT

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FULL COURT DECLARES THAT IT IS UNCONSTITUTIONAL, THE THIRD CLAUSE OF ADDENDUM No. 4, BY WHICH THE STATE GIVES RIGHTS TO FILL IN THE SEABED TO ICA PANAMA, S.A.

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THIRD ROOM OF THE SUPREME COURT OF JUSTICE DECLARES ON CONTENTIOUS ADMINISTRATIVE DEMAND OF NULLITY AGAINST THE RESOLUTION No. 201-1500 OF MAY 21, 2008 RELATING TO THE PRESENTATION OF “REPORT OF SALES ON CARDS OF DEBIT”

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POLITICS OVERTHROWS OF GOVERNMENTS OF DR. ARNULFO ARIAS MADRID

CONTENT 29. 32. 33. 34.

35. 37. 39. 42.

PANAMANIAN ECONOMY MAIN MONTHLY ECONOMIC INDICATORS: JANUARY-MARCH 2014-15 REVIEWS MONTHLY ECONOMIC ACTIVITY INDEX, MARCH 2015 EIN FIRST HALF 2015 PANAMA CANAL FIGURES RECORDS IN LOADS OF GRAINS AND SALT ADVISORY BOARD HIGHLIGHTS PREPARING TO OPERATE EXPANDED CANAL

WORLD ECONOMY COMMERCIAL CHALLENGE OF CENTRAL AMERICA AND THE CARIBBEAN REGIONAL ECONOMIC OUTLOOK GROWTH IN LATIN AMERICA DECREASE FOR FIFTH CONSECUTIVE YEAR

ECONOMIC OUTLOOK: ASIA AND THE PACIFIC 2015 SOIL IS THE BASIS OF VEGETATION

ILLOUSTRIOUS PANAMANIANS

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46. 48. 52. 55.

DR. BELISARIO PORRAS 1856 - 1942

EDUCATIONAL CAPSULE RAISE THE QUALITY OF EDUCATION

FASHION DRESSING WELL Formal and Casual professionals

SPORT CAPSULE CULTURAL CAPSULE

EDITORIAL COBRANZAS DEL ISTMO, S.A.: ANOTHER SCANDAL

evelations of Cristobal Salerno Ballestas are credible and convincing because they emanate architect and executor of contract No. 100 of August 25, 2010, concluded between his company and Luis Cucalón Uribe, former General Director of Revenue. For the media has been known that Salerno has linked in this plot Ricardo MarBy: José Javier Rivera - Attorney tinelli Berrocal, Gaby Btesh, Luis Cucajj.rivera@rbc.com.pa lón Uribe as the main bribes beneficiaries generated by fees received by Cobranzas del Responsible for setting the amount of conIstmo under the aforementioned agreement. tract is also avoided, although we now know that accounts are charged for the Recall, preparatory acts of this vulgar fra- amount of 172 million dollars and receimework starting in Article 32 of Law 49 of Sept- ved commissions for more than $ 47 million. ember 17, 2009, which authorized the so-called outsourcing of tax collection, and then with Salerno has supported the payment of $ 5.8 mithe resolutions of the Minister of Finance and llion for Cucalón and millions more through Comptroller General of the Republic, prior to deliveries in cash and check in favor of Ricardo the conclusion of contract, in which direct con- Martinelli Berrocal. He also explained how he tracting company is authorized and will set a pal- acquired property that was paid to Gaby Btesh. try performance bonds and handling together only they amounted to the sum of $ 500,000. In paying investigation, Cucalón has requested a confrontation with Salerno and called surrender statement the three mi-

EDITORIAL

nisters of finance who have been invol- ber that on this occasion, from this trench ved with this contract: Alberto Vallarino, we opposed this vehemently against vaFrank De Lima and Dulcidio De la Guardia. grancy, also remember that Ricardo Martinelli Berrocal had slipped surreptitiously Itâ&#x20AC;&#x2122;s noteworthy that General Director of Re- re-evaluation of his block in San Francisco. venue has put the bell on the Collection cat, and has been the first to try to avoid that by Public opinion continues daily the demarcation virtue of this agreement, contractor was main- of these cases and expects respective reports of tained as a private fund-national taxes admi- other state bodies, including Ministry of Punistered by the DGI, and also will conduct an blic Works, the Ministry of Health, Ministry audit to determine whether the company had of Housing and Land Management, Tourism fulfilled its obligations as taxpayers of the di- Authority and the Social Security Fund, all of fferent taxes (income, ITBMS and deductions). which have been characterized by his accomThese days we have learned from the press plice silence, despite the fact some unfinished that between December last year and January works, advances money on nonexistent conthis year, the Company received $ 7 million tracts, cost overruns and other irregularities. from the hands of the very ministry of Finance to cancel unpaid commissions 2014. This Just days culminating the first year of the culast fact shows an extreme negligence of the rrent government, itâ&#x20AC;&#x2122;s necessary that the prebodies responsible for this procedure, since sident examine with serenity and detachit has no basis to have paid a millionaire sum ment supporters commitments and of any to swell the finances of a group of criminals other nature, performance of ministers and that still roam inside and outside the country. other managers and administrators, and saAnd this package is put together, it was so- nitize your government environment and mething like fiscal printers with calls, make decisions that maintain the confidenwhich proved another negotiated tho- ce of the citizens about his presidential term. se in the Zero Circle the Ministry of Fi- Civil society has the responsibility to denance and the Presidency of the Republic. mand results and monitor governance. Itâ&#x20AC;&#x2122;s our country and we must take care of it. Like it did with the outsourcing of mandatory assessments that served as reference, when attempts were robbing taxpayers, who- It will dawn and see... se only sin was to own a property. Remem-

INVITED WRITTER CORRUPTION: A CALVARY OF THE PANAMANIANS

n the RBC news bulletin February of this year, we talk about corruption as a serious crime when prosecuting those accused can be granted guarantees, benefits and you can even reach agreements with them; and moreover, in the edition of Law and Economics March we ask the question ¿resurfaces corruption?

Moises Véliz Arosemena rbcweb@rbc.com.pa

ce behaviors such as smuggling of goods with complicity of public officials, fraud fairs, bribery, influence peddling and even priests who practiced trade; facts that were brought out with Panama’s independence from Spain in 1821. Then, with accession of Panama to the group led by Simon Bolivar’s Gran Colombia countries, we met new forms of corruption, such as electoral fraud, disloyalty to the nation, treachery and bribes in exchange for favors, among other serious breaches ethics and morality.

In any case, they have been efforts to bring our readers information on a topic that has its historical roots in the birth of civilization and that essentially contradicts the ethical, moral and good. They are reprehensible human behaviors that impact negatively on In 1903, we achieved independendevelopment of genuine democracy, ce marred by unedifying, such as sigeconomy, justice and social harmony. ning of a treaty in perpetuity in exchange for economic and commercial From the time of Spanish colony, practi- royalties the signatories business and

INVITED WRITTER

privileges for some of the Isthmus ca- litical party and then switch to another, lled revolutionaries and betrayal bet- in exchange for personal benefits and ween officials in the service of histo- acting with impunity clear corruption. rical events Colombian government. Over past five years, from 2009-2014, Since then there were civilian and mi- the state coffers experienced the bilitary governments led by political ggest heist in its history with compliciparties financed by an oligarchy cha- ty of officials and private businessmen. racterized by control of economic ac- In these five years we have seen abuses tivities, who supported coups, electo- in direct procurement, use of power ral fraud, bribery, illicit enrichment, to persecute political opponents, oveabuse of power, embezzlement, drug rruns in major infrastructure protrafficking, smuggling and impunity. jects, debt above the levels permitted by law new criteria as turnkey lack of After 25 years of efforts to build a new separation powers, unjustified enrichdemocratic model post military dicta- ment of public officials and nepotism. torship, from 1990, they have surfaced same defects and improper conduct, Itâ&#x20AC;&#x2122;s right and fitting that society in geneaggravated and nuances, although elec- ral, reflect deeply about the country we toral frauds have passed away. Now we want for our children; support actions Supreme Court rulings trading, de- that advance prosecution and the judiputies of the Legislative Assembly who ciary through allegations and civic dereceive bribes in exchange for favo- monstrations in show of solidarity with ring unpopular laws, receiving gifts of the work they do for the country cleaned the Executive, who extort money from up. Panama doesnâ&#x20AC;&#x2122;t deserve this ordeal. L&E businessmen, claiming undeserved exemptions, not attending sessions and not comply with rules of procedure, which are elected with backing of a po-

NORMS OF INTEREST COMMENTS REGARDING THE AMENDMENT OF LAW 22 OF 27 JUNE 2006, WICH REGULATES PUBLIC PROCUREMENT, WITH VARIOUS REFORMS APPROVED Ileana Lutrel rbcweb@rbc.com.pa

Generalities:

The reference price, estimated price or official price:

• There is a need for a comprehensive review of Public Procurement Law 22, so that a new legal Regulation is necessary. The institutions could create framework where transparency and accountability a manual showing how to calculate prices and thus are promoted believed. avoid cost overruns. • It should achieve the professionalism of civil ser- • The creation of a unified objective to calculate price, vants in matters of public procurement and imple- blame the officer or officers who calculate reference price mechanism. mentation of information technology. • The State and the Contractor must be on equal Direct Contracting - Exceptional procedure: terms. Contractor is a partner of government that • Should evaluate whether you want to have so many allows the state to meet social needs, the State being cases where direct contracting is allowed. largest consumer of goods, services and works. • We must create a true electronic document management system. Scope of application:

• Articles 92 and 93 of the Consulting must be deleted.

Operation of Evaluation and Controller Commission:

• The procurement rules to all Entities should • Names of members of committees should be aware apply. of before and not by Resolution. • Exceptions encourage discretion.

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• It’s important to identify who defines the criteria for weighting and why are given a certain value, must exist to define this manual. Only price is a fraction

NORMS OF INTEREST established by law. • Commissioners must act under oath and must be notified of their duties as Commissioners. • Copies of tenders must be available to the applicant immediately after the opening of bids. • Is considered to be established clearly that deliberations of the Evaluation Committee must consist in a report will be provided to interested parties, and in this act the criteria and technical support will be established, including literature, that support the assessment. • Deserted statement must be substantiated and documented, and if a proponent contends, should be subject to review and reconsideration.

Payment and effective regulation of automatic recognition of default interest: • A maximum period for payment. • System to verify that payments are made and calculation system default interest.

Comments on the Public Acts: • We are the criteria that procuring entity should be required to answer participant observations. Likewise, we believe that within two days is very short, so it should be extended. • Participants of a public event shall be entitled to receive, from bidding entity, a copy of the file, including proposals of participants in the event, and will have five working days to make comments on the report, which is attached to the file Bidder and the Bank shall be required

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to answer participant observations.

Refutation Measure Bail: • According to these amendments, if a legal challenge is filed with the Administrative Court of Public Contracting (ACPR), which earlier suspended the execution of the contract until the appeal is resolved, now has returned effect (Article 130), whichIt means that hiring continues, and in the award stage, which in practice means that goods are purchased or contracted services, although there is a pending appeal to be resolved. • Due to the above, we believe should be returned to suspensive effect. • In this same vein, the need to provide a guarantee, which was by 10% amount of proposal with a limit of B/. 100,000.00, 15% of the bid amount without limiting aforementioned modified . So in other words it very expensive to go to ACPR, which greatly hinders the administration of justice in such acts. It is for this reason that we believe should be returned to 10% of the amount. L&E

NORMS OF INTEREST

HISTORY OF RELATIONS BETWEEN PANAMA AND UNITED STATES RETURNS TO CLASSROOMS Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa

MINORS CAN’T MARRY Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa

he Executive Branch passed Law 37 of May 12, 2015 by which the compulsory teaching of the subject of History of Relations between Panama and the United States is established, which will be compulsorily included in average education official and private schools in the country.

n May 5, 2015 was passed Bill 30 amending and repealing articles of Family Code, highlighting the fact that Article 30 paragraph 1 has been amended to the effect of establishing that they can’t marry under age of eighteen (18) years.

It has been established that the subject will be taught by Panamanians teachers possessing a bachelor’s degree in history; philosophy and history; geography and history or international relations and teachers who taught the course will be taught on an ongoing courses and seminars on academic improvement. This course will be given during academic year with a workload of three (3) hours per week.

On the other hand Article 35 paragraph 1 provides that marriage is prohibited to persons under eighteen (18) years of age and in turn Article 36 which states that a marriage concluded in violation of prohibitions is valid for the parties, without prejudice to the stipulations of the Criminal Code are subject to rules laid down in that article, which will not be applied to marriages of minors.

The subject of HRPUS must be given by the official and private universities and higher education institutions Within this context, numerals relate to marriage of should include in their careers during the school year. minors under eighteen (18) years of age, in order to Notwithstanding indicated in force shall be regulated cation, so that will not be effectively teaching of this

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above, Act 37 that is by the Ministry of Eduuntil the next year that subject is restored. L&E

maintain uniformity in the rules are removed.

L&E

NORMS OF INTEREST

AGREEMENT ON DECENT WORK FOR DOMESTIC WORKERS IS APPROVED

ith approval of Law 29 of May 5, 2015 the Convention on Decent Work for Domestic Workers, adopted by the General Conference of the International Labor Organization in 2011 is approved. Panama as a red to comply king domestic they comply

member of the ILO is requiwith the covenants ratified, mawork the State must ensure that with the Convention ratified.

The Convention consists of 26 articles, in which we highlight that itâ&#x20AC;&#x2122;s agreed that all member (country) shall take measures to ensure that domestic workers, like workers generally, enjoy fair terms of employment and working conditions decent, and if they live in home for work, decent living conditions that respect their privacy. Convention also contemplated to be adopted measures to ensure equal treatment between domestic workers and workers generally in relation to normal overtime, compensation for overtime work, rest periods daily and weekly and annual paid leave. Our country is not as late as domestic work has a regulation that requires employers to meet certain obligations in favor of the workers, as it is minimum wage, holidays, working hours, bonus. L&E

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

NORMS OF INTEREST

RENOVATION OF CRISOL DE RAZAS

he Ministry of Public Security issued Executive Order No. 169 of May 22, 2015 by which the renewal of temporary residence permits granted within the extraordinary migratory regularization process is authorized. It has established itself as the main requirement of the license applicant is expired or east, don’t support submission of new applications as it is a renewal. The renewal of the residence permit is granted for a period of six (6) years.

The costs for processing the renewal ranging from FIVE HUNDRED to TWO THOUSAND DOLLARS (US$ 500.00 to US$ 2,000.00) depending on the nationality in question and payment must be made to the National Bank of Panama. Reading considering, it’s clear that reason why the Government to issue the decree is that “to date have already expired or are expiring provisional residence permits, whose beneficiaries would be in a state of irregularity, so it’s necessary to grant a license permitting them to continue to collaborate and contribute to national economic development. “ Motives or reasons that appear to be different from that of the past administration; however, it not has been considered an important element is that all foreigners who benefit from crisol de razas was aware that it was granted a temporary residence birthday and precisely that time was to they could regularize their status and opt for some category set out in Decree Law 3.

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

But now it turns out that for government, the only foreigners who have contributed to development of the country aren’t eligible to qualify for immigration status and are deserving special treatment, but what happened to all those foreigners if they come to the country to invest, start a business, hiring domestic staff or who arrives for other reasons and that when submitting an application to National Immigration Service finds a thousand and a lock from obtaining the number for treatment. This is not to say, to be relaxing controls but rather that it is an immigration policy based on equality and respect both to foreign and domestic. Who live day to day hardships that are passed in National Immigration Service, we are aware of the need to implement a migration policy and for this integrated by various sectors of society commission was created; however, it seems that the Commission hasn’t reached consensus or simply decisions are made by a single sector. It’s worth mentioning that at least no new applications for foreign newcomers or those who for one reason or another couldn’t regularize their status in previous fairs will be accepted. We wonder, will happen within six (6) years when permits to be issued in the coming days, which by the way the resolution doesn’t indicate how or when will take place the migratory regularization expire. L&E

NORMS OF INTEREST

FOREIGN PROFESSIONALS HAVE TO VALIDATE THEIR TITLES

EXTEND IMPORT OF FIREARMS

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

tarting next June 14, 2015, foreigners who opt for etermined by No.066/DIASP/15 of 4 May Permanent Resident Abroad as Professional before 2015, the Ministry of Public Security decisubmitting application to the National Immigraded to extend the moratorium on importion Service must approve the diplomas or degrees tation of firearms allowed for use in the of technical courses, undergraduate, postgraduacountry to duly authorized to apply for te, master’s degree at the University of Panama, the Techno- import licenses for companies this type of merchandise. logical University of Panama or to the appropriate national authority, as provided by Resolution No. 10294 of may 7, 2015. The reference Determined, shall take legal effect for a period of one calendar month. L&E It should be noted that the resolution also states that only diplomas of non reserved for nationals professions such as engineers, doctors, accountants, barber and beautician, chiropractor, nutritionist, economy and public relations among others will be received. It’s worth noting that a grace period of thirty (30) days was granted to enter into effect the resolution so that the applications filed during this period don’t require recognition of qualifications, we this approach based on the provisions of the standard. L&E

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CONSULT, DOCTRINE & JURISPRUDENCE STOCK CHANGES OF BROKERAGE COMPANIES MUST BE PASSED BY THE SUPERINTENDENCE OF INSURANCE AND REINSURANCE

ecently, the Office of Administration issued Consultation C-33-15 of May 15, 2015 by which absolves the question posed by the Superintendence of Insurance and Reinsurance around the interpretation of Article 181 of Law 12 of 3 April 2012; in order to establish whether the brokerage insurance companies that are licensed to operate as such in the Republic of Panama, such institutions must request prior authorization, to make changes of directors or operations that produce changes in the control. To absolve question posed, the Attorney brings up Article 181 of the Law 12 of April 3, 2012, which regulates the insurance business and under the rule states that legal entities that have been licensed broker, is ie insurance brokerage companies authorized to operate in the country, have a legal obligation to notify the Superintendent of Insurance and Reinsurance of Panama, any change of control, partners or shareholders or the persons mentioned in the license application (eg subscribers, directors, officers, legal representative, resident agent), such changes as they occur, for approval by that authority of supervision and control. Attorney adds that under Agreement No. 10 of October 30, 2013, issued by the Board of Insurance and Reinsurance exercise of the runners was regulated insurance companies, provides that any amendments to social contract of companies, whose purpose is to switch to the

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Source: Procuradur铆a de la Administraci贸n

directors, officers, legal representatives, resident agents, underwriters; or authorize the issue and sale of registered shares, it must be approved by the Superintendence. Authority concludes, indicating that those rules, are intended to safeguard public interest, as seeking adequate protection for policyholders and proper monitoring of functioning of the insurance market in the country. On that basis and in order to prevent situations that could jeopardize the interests of the insured public or the proper functioning of the insurance market in the country, as it would be for people of dubious economic or moral solvency occupy sensitive positions within corporate structure or corporate of these companies; 3 conflicts or interest or equity concentrations prohibited by law arise, they must have prior authorization from the Superintendence. L&E

CONSULT, DOCTRINE & JURISPRUDENCE

MIGRATION, EMPLOYMENT AND SILVER POT

anamanians are not xenophobic. Since the conquest as they reached our shores Spanish colonialists, the time of California Gold Rush when thousands of Americans went to the west coast of United States, we used to see foreigners in our cities. The construction of railways in nineteenth century, the Canal and hydroelectric in the twentieth century and even Canal expansion in this century have been occasions for workers elsewhere. From simple workers to highly skilled professionals.

Lic. Francisco Bustamante Economist rbcweb@rbc.com.pa

What theory say? An expected behavior is fairly widespread in presence of high unemployment, there is a tendency for the government to increase the level of public employment.

In other cases, it increases the permanence of young people in universities and graduate. When the economy is re-activated, workforce is oriented towards Why has it been possible experienced tremendous immi- the areas of greatest demand, and wages and even gration, regardless of major projects above? First, it’s lar- lower college tuition. What is the situation in Panama gely due to the tremendous growth experienced by natioduring a period when’ve got a great economic activity? nal economy in recent years, driven by public investment financed with increased taxes and additional debt, and the mechanism of deferred expenses that are turnkey projects. With its own reserves, and leaving aside more preMany foreigners from countries with weak economies, with internal wars or unpopular governments, arrived in Panama. But the relevant question I ask myself is, was necessary or essential that immigrant wave? The government and business sectors say yes, there is not enough local labor, in quantity and quality. But is it so?

cise concepts such as underemployment, informality, etc., according to statistics from INEC, between 2008 and 2014 employment grew by 21.5%. Between 2002 and 2012; university enrollment grew 12%, but private education grew about 35%, while enrollment in public universities decreased. At first glance, there was a shift from the official enrollment to the private university college, labor market doesn’t necessarily.

According to the World Economic Forum are three major factors that conspire against the country’s competitiveness: What happened to the official job? It decreased? No. (i) corruption, (ii) quality of labor, and (iii) inefficient puThe public employment in 2014 grew 22.5% comblic sector. The government is working on solving these factors? I leave the answer to your enlightened judgment. pared to 2008. In this scenario, it appears that to-

tal employment has been covered by migrations. How was the performance history of migratory item?

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CONSULT, DOCTRINE & JURISPRUDENCE We have two ways of looking at it: (a) the net balance At first glance, labor demand has grown but has been fiof incoming and outgoing passengers in Panama, and lled according to national statistics, with falling unemplo(b) the net balance of residents legalized in the country. yment and hasn’t been for reduction of the public sector,

or by lowering the top student population. So, the other variables, again, would be immigration. What has been the contribution of this immigration, in qualitative terms?

In first case there is a high balance of passengers who appear to have remained in the country. Even assuming that some of the outputs We know these assessments, if any. The truth is that shows are made in different years to the input, the that restaurants, shops, personal services, etc., are being balance is still very high. Where are the passengers? attended mostly by immigrants. What is the best coun-

try providing skilled labor? again, we know that analysis. Or, what are the priorities of qualification of labor that the country favors? Again, silence from the heights. And we observe, at first glance there is not a lot of highly skilled workers, while special laws exist that protect certain professional associations against competition from highly qualified professionals. It makes sense this “immigration policy”? In my opinion, it makes no sense. We deprive ourselves of trained minds and proven, expert hands, but we have no restrictions to attract labor competing for less productive jobs. And if we have a deficiency in the quality of the local workforce, we aren’t addressing the problem, again, in my opinion.

Here’s another view. Public employment and wages paid. A In the other case, checking for foreign residents legali- salary of B/. 600.00 in 1975 according to the Labor Department zed component inputs and outputs, there are more de- converter US equivalent to B/. 2638.65, according to the partures in 2011 and 2012 to increase the inflow of fo- American inflation has been lower than Panama in recent reign residents in 2013. The accumulated value is more years. By the same mechanism, a salary of 2015 B/. 5,000.00 than 45 000 foreigners legalized, between 2009 and equivalent to B/. 3,639 in 2000. What is the wage policy of 2013. It’s expected that the majority of foreigners le- the government to retain the best employees? Certainly not galized immigrants if they are independent and not merit pay. It attracts the best people? maybe those seeking tied to specific projects, to stay longer in the country. mechanisms to improve and professional training, or to gain experience. Or maybe, seeking less stressful or demanding opportunities in some cases less important positions. According to a study [1] of 2000, at that time 26 countries including Panama were analyzed. Two groups were divided, by attention to their GDP per capita. Panama was at that time in group 2, the lowest income per capita. In this study it is discussed among other variables public employment as a percentage of total population. The country’s best economic performance in the period, Chile, had a rate of 1% of public employment relative to the

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CONSULT, DOCTRINE & JURISPRUDENCE population. The country had the highest rate, was Suriname, with 9.1%. Panama had at the time, a rate of 5.3%.

Initial reflections

With regard to the EAP [2], Argentina had a percentage of public employees of 11.7%, 23% Suriname, Panama 13.8%. The same study makes several comparisons and up to logical conclusions: Programs and salary plans aimed at promoting meritocracy, result in less corruption, greater effectiveness and efficiency of the public sector, etc.

• A clear, aimed at facilitating the country to receive technicians, professionals and experts that the development of country needs immigration policy failure. A policy of inclusion of these professionals to the formation of national resources, it would be highly desirable.

Returning to current situation of public employment in Panama. Regarding the PEA, in period 2009-2014, the indicator is between 22 and 23%. ie public employment today regarding the PEA is greater than in 1999, although due to the experienced economic growth, technological change occurred, the best salaries in the private sector, has not been sufficient to meet demand of employment in the economy, with our own people.

• The regularization of immigrants should be given within the content of the immigration policy that we should formalize. Accompanied actually not tease through subterfuges that we continue to receive additional immigrants who might actually need the country.

Towards the Future Today and in the following years, it is not expected that the high economic growth rates of the recent past are maintained. In fact, there are threats on the domestic economy, the net capital flow, etc. It may be that labor demand is not growing and in some sectors even decreases. Those workers without legal status in Panama or foreign network without family or amical protection, could accept lower paid jobs which nationals of the country, especially in the sectors of lower productivity.

• More than one worker in five of the EAP is public employed. Almost double 15 years ago. With increasingly competitive real wages. Without a process of selection and maintenance of intelligent, humane and responsible human resources. Such a state can’t function and meet the needs of its partners. Urgently it required to establish the Civil Service. • The training of human resources at all levels, is best policy to import labor, particularly in a country with a young population. Recover education and increase its quality is a national priority. L&E

[1] COMPARATIVE STUDY OF PUBLIC EMPLOYMENT STATISTICS IN 26 COUNTRIES OF LATIN AMERICA AND THE CARIBBEAN Ingrid Carlson and J. Mark Payne [2] EAP economically active population of 15-65 years old. Franciscob

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CONSULT, DOCTRINE & JURISPRUDENCE

FULL COURT DECLARES THAT IT IS UNCONSTITUTIONAL, THE THIRD CLAUSE OF ADDENDUM No. 4, BY WHICH THE STATE GIVES RIGHTS TO FILL IN THE SEABED TO ICA PANAMA, S.A.

Yhestryll Mc Cree - Attorney yestryll.mccree@rbc.com.pa

ttorney Victor Manuel Martínez Cedeño invoked the unconstitutionality of the third clause of Addendum No. 4 concession contract No. 70-96, that clause gives to the company ICA PANAMA, S.A., fill additional rights on the seabed, They comprising 40 hectares between the former Marcos A. Gelabert Airport and Atlapa Convention Center, to serve as a source of financing the expansion project of the Southern Corridor; unconstitutional was based on Article 258 of the Constitution which states that goods belonging to the State and in the public domain can’t be subject to private appropriation among which are the territorial sea and lake waters; under the seabed is part of territorial sea, so any padding made there, is a good of public law.

said that according to Article 206, paragraph 1 of the Constitution the responsibility of the Plenary is established to hear and decide on the unconstitutionality of laws, decrees, resolutions alleging the reasons of form or substance, therefore, the thesis of the Attorney General’s Office wasn’t admissible because the constitutional claim allows the interested oppose any attempt, so any agreement, law, resolution and other acts can be known by the Full Court, on its constitutionality.

Moreover, the Attorney General’s Office, Lic. Ana I. Belfon V. suggested nonviable declare the constitutional claim filed against the third clause of Addendum No. 4, arguing that to challenge it, must be used the way of administrative litigation and not unconstitutional.

The Full Court noted that the State could change nature of public property for public interest works, ordering the “reversal” of a good, through an administrative act, laws, decrees and resolutions can transform a well in the public domain, in a capital asset of the state, which in turn can then be subject to private appropriation.

In this regard, the Plenum of the Supreme Court,

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As to the third clause of the Addendum No. 4, the Plenum of Supreme Court said it wasn’t contrary to the constitution, since it aims to protect the social and collective interest of citizens.

CONSULT, DOCTRINE & JURISPRUDENCE The reversal is referred to in Article 332 of .Civil Code, which stipulates that public property and public use both municipalities when they cease to be intended for general use or territorial defense needs, become part of state assets is to say, according to this principle, the Full Court said that the State in exercise of its powers by an administrative act can be declared which are public goods, which may be disaffected or transferred, through an administrative act, administrative concession contract for the execution of public works, as it is contemplated in the judgment of December 11, 2006 related to the constitutional claim against the clauses 3,15,16,17 No. 70-96 concession contract between the State and ICA, S.A. Reasons, by judgmentDecember 22, 2014, the Plenum of the Supreme Court stated that IT 8IS NOT UNCONSTITUTIONAL, the third clause of Addendum No. 4 “by which theSTATE and society ICA PANAMA, S.A., approve the extension work to the South Corridor and granted rights fill in the seabed up to forty (40) hectares between the Old Marcos A. Gelabert Airport and the ATLAPA Convention Center to serve as a source of financing expansion project.” On the decision, they expressed dissenting opinion Judges Luis Mario Carrasco, Harley Mitchell and Victor Benavidez. Now, in the book Honoring Cesar A. Quintero Correa (1916-2003), Attorney Agapito Gonzalez Gomez, made an analysis of the effects of judgments of December 30, 2004 and December 11, 2006, about reversal of public property.

main goods have left the fate of public use, thus raising the inalienable condition that characterizes them, so that they automatically become part of the property State and private property. On the other hand, it is interesting the analysis that González Gómez, about competition for regulating the reversal, as indicating that, while it is true the public property are national assets, which through the Nation a legislative act issued by the National Assembly is empowered to disaffect these goods, since it’s one which expresses the sovereign will of the people and responsible for exercising the legislative function of the state, expressed in Article 150 of the Constitution, power to legislate by formal law, so if the allocation established from the standpoint of the constitution, to affect state assets which by their nature are subject to transformation over time, correspond to the Legislature, as a body representative of the Nation, providing the necessary provisions implementing, including regulations governing situations where these goods lose their destiny in general use. The reversal required legislative development and the responsibility of the Legislature. Therefore, comes an analysis of the judgment of December 30, 2004 in the last paragraph of Article 2 of Law 5 of 1988, added by Article 20 of Law 36 of 1995 was declared unconstitutional, arguing which “violates” Article 258 of the Constitution on the basis of that legal provision “shouldn’t transform public property in private”, having been instituted by a senior precept.

This ruling has the Legislature can’t regulate the As for effects of the reversal it indicates that the reversal of a public good affected by a constireversal recognized that affects the public do- tutional provision, so only other provision and

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CONSULT, DOCTRINE & JURISPRUDENCE equal rank would be ideal to raise this concern, a provision of inferior legal status to the Constitution does not it can impact a public good. However, Agapito Gonzalez Gomez says, who belongs to the State to determine cases in which the effect is interrupted, totally or partially, having undergone changes that make cease destination for general use and also corresponds to the state of their disaffection condition to input private domain, as assets. The involvement of the public domain is linked to fate of well, so losing this destination, it also loses the allocation.

the good and declared constitutional authorization fillings and the reversal of the areas filled on public property, indicating that the reversal of public property can turn them into “capital assets and transfer them into private property.”

Points out, Gonzalez Gomez by converting a public good in heritage, it doesn’t acquire private property be transferred, because the effect of the reversal is that the owner returns to exercise private domain of right which becomes alienable to end the limitation imposed by the impairment. The reversal doesn’t transform the public good, but it is Gonzalez Gomez highlights the lawyer’s analysis in upside down, transforming a public good, it causes that decision the House didn’t authorize a specific it to lose its destination disaffection for public use. individual or entity to exercise private domain on a public good, but only filled disaffected airlines that The ruling means that it’s not necessary that the have lost their destiny in general use , going to be administrative body disaffect the public good. The the state capital assets. Indicating that if the House reversal is required only in the case where the deawould have appreciated the substantial elements ler assigns its rights over the filling to third parties. and features, would have had to conclude that in the absence of constitutional law for the National Therefore, it’s noteworthy that the Full Court in Assembly to legislate on matters of national inter- judgment of December 22, 2014, has maintained its est for the sake of public domain that the paragraph decision, in response to the judgment of December referred Law 5 of 1988, declared unconstitutional. 11, 2006, under the rationale that the State can order the reversal a fine through an administrative act, The ruling concerned scope of the legislative law, etc., transforming a public good, in a good state function attributed to National Assembly to re- assets that can then be passed to the private domain gulate matters of national interest where the of individuals. Therefore, the development of clear constitution doesn’t contain any provision is not standards, regulation of involvement of state promade, so no legal basis for the conclusion that a perty domain and public use, as stated in the consnorm of any statutory should not transform pu- titutional changes which society is crying need. L&E blic property in private, since it was a formal law. Later, judgment of December 11, 2006, gives a complete turnaround from previous statement, all while recognizing that a contract granting administrative law rank below if you can disaffect

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CONSULT, DOCTRINE & JURISPRUDENCE

y judgment of February 5, 2015, the Third Chamber of the Supreme Court of Justice of the Republic of Panama made a statement relating to the Contentious Administrative Complaint of Nullity against Resolution No. 201-1500 of May 21, 2008, issued by the Directorate General of Revenue, Ministry of Finance, and its amendments contained in Resolutions No. 201-2476 of July 2, 2008 and No. 201-3131 of August 28, 2008. Demand for Annulment of Administrative directed against the aforementioned administrative act was sponsored by the law firm TAPIA, LINARES & ALFARO, acting on behalf of the BANKING ASSOCIATION OF PANAMA. Through Resolution No. 201-1500 of May 21, 2008, as amended, Resolutions No. 201-2476 of July 2, 2008 and No. 201-3131 of August 28, 2008, resolved to adopt Tax Administration the “Debit Cards Sales Report” and require monthly reporting thereof to the debit card administrators entities of the Republic of Panama. Similarly, the defendant act indicates that the required report should contain details of transactions to the shops, service providers and all transactions that generally are made by debit cards.

Maybé Mendieta- Attorney maybe.mendieta@rbc.com.pa

BASIS OF DEMAND The contentious administrative action for annulment against Resolution No. 201-1500 of May 21, 2008, as amended was based, for the plaintiff, in the fact that the contested administrative act and its amendments violate these laws and regulations: 1. Article 20 of Cabinet Decree No. 109 of May 7, 1970, as amended by Article 54 of Law No. 6 of 2005 Act, as the DGI uses this standard as the legal basis of the administrative act, despite that it does not establish an assumption of fact or law that can require managers debit cards, contentious monthly transaction reports from users of the banking system and omits the implementation of the regulations of this article entities, Executive Decree No. 177 of 2005, which requires the DGI compliance with a series of budgets that may require information to determine tax obligations, in this particular case “to establish a possible link between the banking information requested and the act under investigation.” 2. Article 85 of Decree Law No. 9 of 1998, as amended by Article 132 of Decree Law No. 2 of 2008,

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since transactions made through debit cards are banking automatic withdrawals from accounts bank deposits and other accounts, while these transactions protected by confidentiality criteria laid down in the Banking Act.

ty of Resolution No. 201-1500 declares, under the administrative act attacked doesn’t meet the requirements of the DGI by Article 54 of Law No. 6 of 2005 Act, which amends Article 20 of Cabinet Decree No. 109 of 1970, that the tax Administration to collect information related to the determination 3. Article 89 of the Commercial Code, because the of tax liabilities and generators made them. DGI can not officially request information or documents to the administering debit card “entities DECISION OF THE ROOM but when you hold an interest in an issue or question filed by any process or research on taxation”, In this regard, the Third Chamber of the Court following the procedures established for such ca- concludes, in view of the facts of the case and the ses. legal and regulatory provisions governing this case, presenting a monthly sales report with debit cards, “that power of the Directorate General Revenue to REPORT OF CONDUCT OF THE collect information from public, private or third parties for purposes of determining tax obligations DEPARTMENT OF REVENUE of natural or juridical persons, other than meet a seIn the lawsuit she will was forwarded to the Direc- ries of requirements properly detailed in regulatory tor General of Revenue of the Ministry of Economy standard, due to the difficulty of the Administration and Finance to present an explanatory report on its prosecutor to obtain relevant information from a activities, which is provided by means of Note No. specific taxpayer, which evidenced that tax authori201-01-816 of 16 July 2009, same as on the foun- ty may not require information on movements of dedation instituted demand noted that “the requested bits and credits bank accounts without specific cause information does not violate the confidentiality that and generally because otherwise a breach would octhe applicant claims, since the data required to re- cur the duty of confidentiality to maintain the insport, are directly related to payments generally do titutions, which, as in specific case of the applicant, entities card administrators debit for commercial, will require respective sectoral rules.” industrial or similar establishment, without discriminating customers come that such payments.” and Based on the foregoing, the Third Chamber deciare therefore “certain processes of research conduc- ded DECLARE VOID BY ILLEGAL, Resolution ted Directorate level control massive respondents or No. 201-1500 of May 21, 2008, as amended by Resolution No. 201-2476 of July 2, 2008 and No. 201filers within Panamanian territory.” 3131 of August 28, 2008, issued by the

OPINION OF THE ATTORNEY OF THE ADMINISTRATION

For his part, Solicitor General by Vista No. 1128 of November 2, 2009, requesting the Chamber to go to claims of the plaintiff and consequently illegali-

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POLITICS OVERTHROWS OF GOVERNMENTS OF

DR. ARNULFO ARIAS MADRID

n our Latin American countries we have had a number of political leaders, regardless of their strengths and successes, whether true or not, and the circumstances surrounding their rise to power, occupied through democratic elections, some irregularities other non, the presidency of the nation on several occasions, and were also victims of the overthrow of their governments, in most cases by decision of the military and others with the intervention of these in combination with some civilian sectors.

Rafael Fernández Lara Independent lawyer rbcweb@rbc.com.pa

Many other Latin American leaders were victims of coups, but none with the frequency of President Velasco Ibarra and President Arnulfo Arias of Panama.

Incredibly, Dr. Arnulfo Arias Madrid was elected in three different opportunities Constitutional President of the Republic, and on two occasions when inhaled again, in judgment and opinion of the vast majority of the country, but was victorious victim of electoral fraud. In other words, it would have served as presidents of the Nation on five seIn this case I refer to the three was subjected to over- parate occasions, like the Ecuadorian president. throw the three-time President of the Republic of Panama, Dr. Arnulfo Arias Madrid and details thereof. However, Arias Madrid could only exercise presidential power for a total of just under three years. In our Latin American political history, no other president has undergone many overthrows, with the excep- The first time he was elected President of the Republic tion of former president of Ecuador, José María Velasco in the electoral tournament on Sunday June 2, 1940, Ibarra, who by popular election was president five times as the sole candidate as his political opponent, Dr. Riin two of these dictator proclaimed himself and ended cardo J. Alfaro, withdrew his candidacy alleging nononly his term on one occasion, while leading the poli- respect for the guarantees constitutional during the tical landscape of the South American country during electoral process. As President-elect, Dr. Arias took much of the twentieth century, representing thirteen office on October 1, 1940, taking only 39 years old and years to be power, which makes us remember his un- to date has been the President of the young republic dying phrase “Give me a balcony and I will be president.” to be democratically elected to assume the position.

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POLITICS Despite having been elected for the period 1940-1944, his On taking quickly, newly appointed Minister in administration lasted only one (1) year and nine (9) days. Charge of the Presidency, in an unlikely event, threatened Third Designate, Mr. Anibal Rios, AmDuring this short administration, among the most im- bassador of Panama in Peru, with arrest and trial portant works of Dr. Arias is the creation of Social Se- for criminal offenses if he returned to the country. curity for officials of public and private sector; also he granted citizenship to Panamanian women, therefore In these situations, the ousted president arrived in Pagranting the vote but with restrictions and conditions, nama on October 15, 1941, he was immediately arrested but with the right to exercise jurisdiction and control and lodged in a cell in the Modelo Prison until October posts; He nationalized retail trade; He created the First 21, when he was expelled from the country, thus starBank of Agricultural and Industrial Development. Also during this brief administration the Second National Constitution of 1941 was enacted, replacing the Carta Magna of 1904 Charter, through previous national plebiscite held on December 15, 1940 whose official results indicated that 146.689 votes cast, 144.312 agreed with the new Charter Magna, 1,865 voted against and 513 voted blank, for approval by the 98.38% of voters. The first overthrow the government of Dr. Arias happens on October 9, 1941, following his private trip to Havana, Cuba without asking the Legislature, thereby breaking the Constitution, which was used by enemies surrounding the President within government circles. The beneficiaryâ&#x20AC;&#x2122;s ouster was his closest Minister of Government and Justice, Ricardo Adolfo de la Guardia, who was in contact with the US authorities, and also had the support of the National Police headed by Colonel Rogelio Fabrega. Minister de la Guardia ordered into prison, and force his resignation, Prime Appointed President of the Republic (Vice Chairman), Dr. Jose Pezet Arosemena. Then it required the presence of the Second Appointed Mr. Ernesto Jaen Guardia, who declined to confront the commitment to continue in office and immediately appointed Ricardo Adolfo de la Guardia as Minister in charge of the Presidency of the Republic.

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ting an exile that took him to Nicaragua, Mexico, Brazil, Chile and to Argentina, where he remained until October 1945, when he was allowed to return to homeland. After about three (3) years in exile, Dr. Arias decides to participate in the elections of May 9, 1948, supported by its new Authentic Revolutionary Party, which was registered in record time.

POLITICS The electoral contest of 1948 was characterized as violent and the government candidate, Don Domingo Diaz Arosemena 73-year-old is favored. According to some, this result was achieved through fraud and a difference of only 1,116 on the Dr. Arias Madrid, who ranked second in number of votes. After just nine (9) months of governing, on July 27, 1949, President Domingo Diaz Arosemena is removed from office for health reasons. He replaces the first vice president, Dr. Daniel Chanis, Jr., who in turn was forced to resign due to discrepancies with the Commander of the National Guard, JosĂŠ Antonio Remon Cantera and the dome of this entity. Then, inauguration of the Second Vice President, Don Roberto F. Chiari Remon, who also leaves office in compliance with the official communication of the Supreme Court, which declared as constitutional president Dr. Daniel Chanis, Jr. Commander Remon, amid unexpected and facing acute circumstances described institutional crisis, brings together the National Elections November 24, 1949 for a recount of the popular vote in 1948 took place, which resulted in acceptance of the electoral victory of Dr. Arnulfo Arias Madrid, now with 74.080 votes and Domingo Diaz Arosemena with 71.536.

After several communications between both sides, as an omen of the facts, on May 9, 1951, the Commander Remon informs the President Arias Madrid that his opponents have called for a sit-down with the intention of moving him to the Presidency. In the evening, a crowd of militants of the Authentic Revolutionary Party goes to the Presidential Palace in support of President Arias. At the same time, the National Assembly dismisses the President Arias and this decision is endorsed by the next day the Supreme Court. In the afternoon of May 9, the refusal of Dr. Arias and his supporters to leave the palace, begins a bloody battle that left 25 dead, 300 wounded and 1,000 prisoners militants, including Dr. Arias and his wife. Dr. Arias was deprived of his political rights in perpetuity and was exiled. In 1960, after nine (9) years, and the beginning of the mandate of President Roberto Francisco Chiari, National Assembly of Panama approved by 38 votes in favor and 13 against, rehabilitate Dr. Arnulfo Arias Madrid so he could hold office public.

In late 1963, Dr. Arias Madrid begins to make the first contacts to participate in the elections of May 10, 1964 as a presidential candidate. At the end of this tournament, supported by one political party, Dr. Arias claims that the electoral process had been subject to fraud, a view shared by many, to give victory by a margin of 10,368 to the government And Dr. Arias Madrid assumed his second term, which candidate, supported by five (5) political groups. was marked by not having the support of the other branches of government, resulting in a smear campaign Four years later, during the election tournament and riots against his government. Faced with this po- May 1968 street clashes live and it becomes one of litical scenario of crisis, the May 7, 1951, the Cabinet the most violent election campaigns registered in Council repeals the Constitution of 1946, dissolved the our political history. On this occasion Dr. ArnulNational Assembly and declares interim to the judges fo Arias Madrid gets the electoral triumph of the of the Supreme Court. The next day, May 8, 1951, oppo- Engineer David Samudio Avila, candidate of the sition from different sectors requested Colonel Remon Alliance government, by a difference of 41.545 votes. Cantera intervene and ask Dr. Arias Madrid to repeal the decree that puts the 1941 Carta Magna in effect. Dr. Arias took possession of the presidency for the third time on October 1, 1968 and immediately set

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POLITICS out to straighten what he called morally clean state entities. However, also arbitrarily he stripped Certainly the political life of President Arnulfo Arias of their seats to some opposition deputies, as cau- has been the most eventful and controversial of all sed great discomfort in a sector of the population. political leaders who have had throughout our national history. He suffered all kinds of humiliation. He Dr. Arias manages to prosecute the National Guard, was exiled for several decades, imprisoned, wounded, forcing its members to obey orders of the executive, tried, was the subject of murder attempts on several which included same moves and changes at headquar- occasions, he was betrayed, overthrown in three preters and in the Sectional headquarters of the National sidential terms, and finally, as a victim of electoral Guard. As a result of these changes, on the evening fraud, he was deprived of occupying presidency of the of Friday, October 11, 1968, commanders of the Na- country five times, a figure that likens it to that of fortional Guard, leaded by Major Boris Nestor Martinez mer President Jose Maria Velasco Ibarra in Ecuador. and others, seeing threatened their interests and hegemonic power, overthrow Dr. Arias by a military coup. His political credo was nationalism. He was an advocate of folk institutions and adverse to imperialism, The military insurrection of October 11, 1968 established militarism and the oligarchy. a control system of military in the country continued to disguising of civilians who had supported for many years. He garnered the support of the majority and respect for their opponents. After sixteen years, a political opening in a new system established by the constitutional reforms adopted Autocrat in their actions and arbitrary, however is conin 1983 and the effect of a new Electoral Code was sidered by many as an icon of Panamanian democracy. initiated. The Electoral Tribunal ordered the opening of electoral process, allowing at age 84, Dr. Ar- He leaded through community action the first coup nulfo Arias Madrid were to run again for president, in the country. backed by three (3) political organizations against Possibly for many was the interpreter of the deepest aspigovernment candidate supported by seven (7) par- rations of his people, for others simply a populist dematies. In these elections he was favored the official can- gogue again, excellent as an opponent, terrible as ruler. didate, who was proclaimed by a narrow majority of just 1,713 votes in an election day that Arias and a Despite being a poor speaker, people enthralled by his large sector of the population described as fraudulent. charisma. On August 10, 1988 Dr. Arnulfo Arias Madrid died in Miami, USA. In the course of this historical narrative of the three overthrows of governments Dr. Arnulfo Arias Madrid, also narrated a vision of what it represented in the national political future his brief presidential management in relation to the years of rule must be completed periods for which he was elected.

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Remember these overthrows against the government of President Arnulfo Arias leads us to think that these shameful acts, which are part of our history, explains the need and obligation of all Panamanians to consolidate and defend the principles and democratic processes, the rule of right, so that the internal contradictions of the political class and their behavior doesnâ&#x20AC;&#x2122;t cause ghost awakening of the military and the enemies of democracy that so much grief and delayed their development have accounted for the country. L&E

PANAMANIAN ECONOMY MAIN MONTHLY ECONOMIC INDICATORS: JANUARY-MARCH 2014-15 REVIEWS

or period of January-March 2015, major monthly economic indicators showed positive performance in production activities related to domestic demand in the country, compared with their counterparts in 2014 were: slaughter of cattle and pigs, production: pasteurized milk, natural milk for derivative products and alcoholic beverages; Hydraulic power generation, electricity and water billing in the Republic; assets of national banking system; value of subscribed insurance premiums and the report registered by operators of games of chance bets. Indicators related to the world, showed positive signs, weight exported: petroleum products, melon, watermelon, shrimp, ahi tuna frozen, fresh fish and fish fillet, clothing, and hides and skins; entry of visitors and the amount of load on Panama Canal.

Source: CGRP

2. Electricity and water: a. Electricity: The hydraulic power generation rose by 73.0 percent; while thermic generation was reduced by 35.5 percent, as the surplus generated by the Panama Canal Authority at 36.9 percent. The total electricity consumption increased by 5.3 percent; which residential customers stood at 4.3 percent, trading at 7.2 percent, 8.3 percent and government generators at 88.7 percent.

b. Water: The turnover of drinking water in the Republic increased by 3.7 percent and the leading sectors were: trade by 4.2 per1. Manufacturing industries: cent, industry by 0.9 percent and by 4.2 percent residential. Increases were reported in sacrifice of cattle and pigs 2.5 For its part, the government sector decreased by 0.5 percent. and 5.8 percent respectively. On the other hand, it increased production of: goosebumps 4.3 percent pasteurized milk 10.6 percent, natural milk used for the manufacture of pro3. Construction: ducts 2.5 percent, tomato by 18.4 percent, salt 7.8 percent, alcoholic beverages 5.8 rectified alcohol percent and 38.9 percent. Negative change was observed in the production The value of permits for construction, additions and reof evaporated, condensed and powder milk 25.0 percent. pairs grew by 17.9 percent. Of these, outstanding residential construction 10.4 percent and nonresidential at 23.6 percent. The increase, per district was: Panama 30.1 percent, 18.0 percent Colon and Arraijan 3.2 percent. Decline was reported in the district of San Miguelito in 12.1 percent and districts grouped David, Santiago,

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PANAMANIAN ECONOMY Chitre, Aguadulce and La Chorrera, at 11.4 percent. Ca- The weight of exports of goods fell by 12.1 percent; specisualties were recorded in the production of ready-mix fic items were 0.9 percent banana, pineapple 47.1 percent, concrete 22.0 percent and gray cement at 0.8 percent. raw sugar 99.9 percent, flour and fish oil 65.9 percent, 54.5 percent coffee and beef cattle 19.0 percent. Moreover, there were favorable performance: petroleum products 6.5 percent, melons 339.7 percent, watermelon 10.7 percent ye4. Internal Trade: llow fin tuna frozen, fresh fish and fish fillet 4.2 percent, clothing 67.6 percent, and leathers and skins 21.0 percent. a. Sale of fuels for domestic consumption: The sale of fuels for domestic consumption fell by 2.8 percent, mainly low-sulfur diesel 20.6 percent; by con- d. Colon Free Zone: trast, growth in gasoline 8.4 percent was observed, The value of commercial activity in the Colon Free Zone highlighting the 95 octane at 22.3 percent and 22.9 bunker reported increase of 14.0 percent as growth in imports and C in percent. b. Sales of new cars: The new car sales re- 18.0 percent of re-exports by 10.3 percent; in turn, increaflected positive variation of 9.5 percent, especially seg- sed the weight of the commercial movement in metric ments: regular cars 15.6 percent, luxury cars 10.6 per- tons, 6.6 percent, specifically in imports by 12.8 percent cent, SUV’S 14.1 percent, minivans 35.7 percent and and re-exports by 0.2 percent. trucks 30.6 percent. Lower panel segments reported by 17.7 percent, trucks and buses 6.0 percent in 35.9 percent.

5. Foreign Trade:

6. Hotels and passenger entry:

a. Hoteles: La actividad hotelera en la a. CIF value of imports of ciudad de Panamá presengoods: tó un aumento en el número The CIF value of imports decreade unidades habitacionales sed by 6.2 percent, mainly consude 0.4 por ciento; sin embarmer goods 17.2 percent; however, positive changes have occurred in go, se observó una reducthe intermediate goods of 8.1 percent and capital goods by ción en: el promedio diario 0.3 percent. de cuartos ocupados de 6.1 por ciento, el promedio diario de pernoctaciones en 9.1 por ciento y b. FOB value of exports of goods: en el porcentaje de ocupación en 6.2 por ciento. FOB value of exports of goods decreased by 11.9 percent and corresponding items were petroleum products at 72.5 percent, 0.5 percent banana, melon 43.4 percent, 55.0 percent watermelon, pineapple 50.5 percent, 15.3 shrimp percent yellowfin tuna frozen, fresh fish and fish fillet 7.7 percent, raw sugar 39.1 percent, flour and fish oil 55.4 percent, coffee 50.3 percent and beef cattle 9.5 percent; on the contrary, positive changes in 33.1por clothing percent, and hides and skins of 31.8 percent were observed.

c. Weight in exports of goods:

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b. Entrada de pasajeros residentes en el exterior y sus gastos: La entrada de pasajeros residentes en el exterior creció en 7.0 por ciento, como resultado de la mayor entrada de turistas al país en 20.9 por ciento, excursionistas en 20.3 por ciento y pasajeros en tránsito y tripulantes de 7.0 por ciento. Los gastos de los turistas se incrementaron en 12.6 por ciento.

PANAMANIAN ECONOMY 7. Transportation: The Panama Canal indicators registered positive variation of toll revenue by 2.0 percent, net tons at 0.7 percent, the cargo volume in metric tons, 11.9 percent and transit of ships at 0.3 percent. Cargo movement through the National Port System increased by 5.6 percent, mainly bulk cargo 15.3 percent, however, general cargo decreased by 10.6 percent and cargo container 2.2 percent. The movement of TEUs containers, grew by 2.7 percent.

8. Financial Intermediation:

tion and technical branches at 32.3 percent: On the other hand, negative changes in the segments presented. Gross claims incurred rose by 3.3 percent. d. Loans from the Agricultural Development Bank: Loans from Agricultural Development Bank fell by 18.9 percent and of these the agriculture 27.2 percent, and livestock by 13.6 percent; however, the fishing increased 24.1 percent.

9. Finance Public Sector:

a. Central government current revenue: a. National Banking System: Current revenue of central government fell by Total assets of national banking system increa- 3.5 percent and of these tax at 4.3 percent. In insed by 14.9 percent, of these, liquid assets in- direct taxes, collection of ITBMS on sales decreacreased by 30.8 percent and loan portfolio by sed by 6.8 per cent and direct taxes by 0.2 percent. 12.5 percent. Total deposits grew by 13.9 percent. b. Stock Market Indicators: The total volume traded on the Stock Exchange fell by 28.7 percent. In turn, primary market fell by 47.9 percent and 79.9 percent repurchases; However, secondary market grew by 58.6 percent. In the stock market, index calculated on the Stock Exchange rose by 0.9 percent, the volume traded in the stock market at 32.7 percent, not, the number of shares which contracted by 35.5 percent. c. Insurance: Value of written premiums had positive change of 4.6 percent; featured segments were 14.0 percent individual life, personal accident 18.1 percent, 6.1 percent health, group life 14.6 percent, 11.8 percent and automobiles 22.2 percent bonds. Fire and multi-risk 3.0 percent, 10.2 percent other transporta-

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10. Recreation:

The report betting operators games of chance recorded growth of 10.1 percent, stand slots â&#x20AC;&#x153;Aâ&#x20AC;? by 11.4 percent, betting shops sporting events in 74.8 percent and table games at 5.9 percent. Net sales giveaways National Lottery fell by 1.3 percent.

11. Other related: a. Employment contracts registered in the MITRADEL: Employment contracts registered with the Central Office MITRADEL grew by 8.2 percent, mainly those defined in 16.5 and 21.8 percent indefinite. L&E

PANAMANIAN ECONOMY

MONTHLY ECONOMIC ACTIVITY INDEX, MARCH 2015

onthly Economic Activity Index (IMAE) in the Republic, in March 2015, measured in terms of the original series in 1996 prices, it grew by 5.49 percent compared to the same period of 2014. The sectors that showed positive performance were: transport, storage and communications, mining and quarrying, construction, electricity, water, community, social and personal service activities, financial intermediation, hotels and restaurants, fishing, trade and agriculture.

The other sectors had a positive impact, but in slower pace, except manufacturing, which registered decrease. Operations of the transport and communications sector recorded a good performance, boosted mainly by telecommunications, air transport and movement measured in the National Port System TEU containers. Categories of construction and mining and quarrying retained its dynamism, attributable in part to the contribution of the construction in the private sector; however, still influenced by lower related to the Canal expansion and the comple-

Source: CGRP tion of several large projects of state investment activities. Production of electricity and water category showed positive results, due to higher hydro power generation and billed consumption of electricity and drinking water; however, it decreased thermal power generation. Providing amusement and recreation services continues to rise, mainly by revenues from gambling halls games of chance, especially type slot machines, gaming tables and betting shops sporting events. The financial intermediation activity performed well, both bank, and insurance business. Recorded favorable results, tourism-related activities, such as hotel and restaurant services, primarily by the strong inflow of tourists and hikers, as well as for expenses made during their stay in the country. Fishing continued to report positive rate due to the capture of species destined mainly for export. For this period, business showed growth, both in Colon Free Zone, and local wholesale trade; by contrast, it was negative retail behavior. The agricultural sector showed positive growth in production of milk, tomato, watermelon, melon, vegetables and in the offspring of pigs, cattle and poultry. By contrast, declines were recorded in banana and pineapple crops, mainly for export. Other services performed well were: private education, demand for qualified personnel and health provided by private sector. Manufacturing decline in industrial production related to production of non-metallic products, metal, textiles and plastics activities. Not so, as food processing, paper and publishing and printing activities. L&E

32.

PANAMANIAN ECONOMY

IN FIRST HALF 2015 PANAMA CANAL FIGURES RECORDS IN LOADS OF GRAINS AND SALT

Source: ACP

he Panama Canal recorded record num- pan, and fertilizers from Peru and China have bers in loading bulk vessels between Oc- taken the route of the Canal of Panama to tober 2014 and March 2015, with a to- reach markets in the US East Coast or Europe. L&E tal of 66 million long tons, representing an increase of 8.0% over the same period last year. This boom in loading bulk carriers was driven by greater movement of grains, salt, minerals, metals and articles of iron and steel. 50 percent of the total load of the Panama Canal is mobilized by bulk carriers, which are the second type of vessels in importance. The most important of the segment, grains, recorded 32.8 million long tons, an increase of 8.5% over the same period last fiscal year. United States is the main driver of the grain trade through the Panama Canal. Meanwhile, shipments of salt a record high of 6.5 million long tons in the first half, an increase of 43.2 percent. Shipments from Chile and the Pacific coast of Mexico and are used mostly to US On the other hand, exports of copper ore and zinc Chile and Peru, exports of iron and steel products from South Korea, China and Ja-

33.

PANAMANIAN ECONOMY

ADVISORY BOARD HIGHLIGHTS PREPARING TO OPERATE EXPANDED CANAL

he Advisory Board of the Panama Canal, integrated by professionals and international experts instance, acknowledged the progress made in expanding the waterway and preparations for the coming into operation of the new locks. As a result of the biannual meeting of Advisory Boards and Directors of the Panama Canal, the international body said the advance of 87.5% recorded globally in extending until March, along with the advanced steps in training the personnel for the operation of the expanded Canal. At the meeting held in Japan, Board and the Canal Administration updated the members of the Advisory Board on the operating performance of the track, the progress of enlargement, in addition to the trainings plan for operation of the expanded Canal and the review of future strategic projects.

Source: ACP

that have allowed the Panama Canal Authority of Panama settle claims arising from the contractor.” He added that the Canal is following the established process and as you follow the rules, will be supported by the Advisory Board. Canal Advisory Board is a body formally established by the Organic Act of 1997, to act as an advisory board of the canal company with primary responsibility to provide guidance and recommendations to the Board and the Administration of waterway.

It is composed of professionals with extensive experience in global business and knowledge of the Panama Canal in particular, which is a solid amalgam that integrates knowledge of transport and world trade, business, telecommunications, civil consPresident of the Advisory Board, William O’Neil, truction and development, banking and academia. said that at the current stage and the focus should be directed to prepare the testing phase of the new The board is chaired by O’Neil, who was secretary of the Interlocks and then the start of commercial operations. national Maritime Organization (IMO) from 1990 to 2004. He currently serves as secretary general emeritus. L&E As part of the preparations for operation of expanded Canal, the Panama Canal built a training center with scale models of ships which will be trained pilots and tugboat captains; Moreover, once construction of locks is complete, a Panamax vessel to be chartered site practices. O’Neil said the Panamanian “should be very proud to carry out one of the most important projects of the world such as the expansion of the Canal, whose complexity was anticipated in the contract terms

34.

WORLD ECONOMY COMMERCIAL CHALLENGE OF CENTRAL AMERICA AND THE CARIBBEAN

n the 80s, trade ties in Latin America and the Caribbean were very similar to those in East Asia -tenous and focused on a single great player North America and Japan, respectively. Today, commercial network in East Asia is much more dense and productive, through all the countries of that region and extends to the north. In contrast, Latin American network is still narrow and dominated by United States, followed at some distance by Brazil. The latest World Bank flagship report for the region, “Latin America and the rise of the South: New priorities in a changing world”, published today in the capital, offers a profound look at these global trade and financial ties and a serious evaluation around their promises and tribulations for the region. The overall economic environment has undergone tectonic movements, leaving behind the old North-South hierarchy. In last forty years, Gross Domestic Product (GDP) to Represent South Doubled About 40 percent of total world; proportion of world trade attributable to the South Also Doubled to reach 51 percent, while its share of the capital flows incoming Represent Nearly tripled to 50 percent. Within ten years, estimates say that participation of developing world in global GDP will be higher (55 percent) than North.

Source: BANCO MUNDIAL

the world economy. But this undeniable impact masks important differences across the South,” said Augusto de la Torre, Chief Economist of the World Bank for the region. “The difference between wealth of links to Asia compared to Latin America suggests that our region still don’t benefit from the virtuous circle generated by greater integration with your neighbors and the world.” For example, the report reveals that between 2000 and 2012 Southern participation in world exports of manufactures rose from 32 to 48 percent, mostly due to China. In fact, China’s share increased by more than 10 percentage points, while the share of these 20 exporters of manufactures South -including Brazil and Chile- increased only 8 percent overall. Moreover, in some southern countries, including Mexico, actually fell. It is also important to emphasize that the East Asian countries have a much more active role in cross-border production networks, known as Global Value Chains (GVC), which most Latin American countries. In fact, the report found that Latin American countries tend to integrate these CGV only at beginning of the same raw materials -such as exporters like end or finished goods producers- and not in the middle, the “sweet spot” that offers the greatest potential benefits of growth.

“The initial strength of the rise of the South -and in “The rise of the South has left an indelible mark on particular commodity boom led by China- meant

35.

WORLD ECONOMY enormous economic and social gains for Latin Ame- • Raising savings rates to help improve trade diversifirica. At present, however, as this force vanishes is cation reducing the overvalued currencies that make imperative that Latin American countries best pla- exports less competitive. yers in this new scenario become” de la Torre said. All these crucial reforms, the report concludes, “What we’ve learned so far is that world trade or re- will require a deft political handling. Still it suceipt of foreign direct investment are not enough”. ggests that this irreversible change in the world ecoMore precisely, Latin America and the Caribbean must nomy is a unique opportunity for Latin America find ways to improve their human and physical capital to unleash its power of growth once and for all. L&E and technological capacity and business environment. In this regard, the report points to three areas for policy makers consider taking into account the changed global environment demand a rethinking of priorities: • Allow financial flexibility in the allocation of labor and capital to allow workers and capital to find more productive sectors. • Learning from international trade and investment to the region not under-utilize trade and financial ties with its neighbors and other partners.

36.

WORLD ECONOMY

REGIONAL ECONOMIC OUTLOOK GROWTH IN LATIN AMERICA DECREASE FOR FIFTH CONSECUTIVE YEAR

Fuente: FMI

t is anticipated that growth in Latin Ameri- Prospects still uncertain ca and the Caribbean decreased for the fifth consecutive year -falling below 1 percent in 2015- In that report the downside risks that could oversalthough there are clear differences between the hadow even more outlook for Latin America said. north and south of the region, according to latest regional projections presented by the IMF . A further decline in prices of raw materials, perhaps linked to a more pronounced slowdown in invesIn the latest IMF report Regional Economic Out- tment in China, accentuate the pressures on net exlook: Americas, released on April 29 in Santia- porters of raw materials from South America. At the go, Chile, growth in Latin America and the Ca- same time, financial risks have intensified, after a long ribbean by 0.9 percent in 2015, lower than period of strong capital inflows and credit growth the 1.3 percent observed in 2014 is projected. at regional and low interest rates worldwide level. The short-term outlook for South America remains relatively weak, with projected output contractions in three of the largest economies -Argentina, Brazil and Venezuela- in 2015, while only Chile and Peru would register a rebound in growth.

A higher than expected growth in the US would benefit its major trading partners in the region, particularly Central America and Mexico, but may also accelerate a more intense now planned normalization of US monetary policy rate.

Prolonged weakening of economic activity also increases risk of errors being made in terms of interInstead, growth is projected to remain stable in Central nal policies, especially concerning structural slowAmerica and the Caribbean, and to strengthen in Mexi- down try to prevent excessive stimulus policies. co, supported by a reduction in oil bill for importers and a robust economic recovery in the United States.

Tendencias divergentes

By 2016, itâ&#x20AC;&#x2122;s expected a moderate recovery of regional growth to 2 percent.

37.

It is projected that growth trends among financially integrated economies -Brazil, Chile, Colombia, Mexico, Peru and Uruguay- diverge in the future, reflecting different exposures to international markets for raw

WORLD ECONOMY materials and other factors specific to each country. difficult external conditions. In particular, currency depreciation helps redirect demand towards the product Brazil is going through its worst recession in more of domestic production, reducing the external deficit. than two decades, with an expected output contracted by 1 percent in 2015. Mexico, the second largest eco- The IMF urged policy makers in the region to ensunomy in region, faces comparatively favorable pros- re soundness of public finances, especially because pects. GDP is expected to grow 3 percent this year. there are still significant downside risks to growth. Among other financially integrated economies, Chile, Co- The vulnerabilities of financial sector should also lombia and Peru face difficulties related to decline in export be kept under control, since reduction in profits, prices for raw materials and a consequent fall in corporate more difficult financing conditions and strengtheinvestment. However, strong macroeconomic fundamenning of US dollar are testing the resilience of debtors. tals provide significant scope for policy implementation. A key priority for governments is to address long-standing structural problems to boost investment, producEconomic conditions in some of other exporting tivity and growth potential. Improvements in the busicountries (less financially integrated) commodities in South America remain particularly challen- ness climate, infrastructure and education can promote ging. Venezuela went into recession in early 2014 a more diversified, resilient and prosperous economies. and is expected to suffer a severe contraction in 2015. In Argentina, exchange pressures have recently dimmed, but still a moderate decline in output is projected in 2015, which extended slowdown of last year. Unlike South America, it‘s expected that economies of Central America from being benefited by current external environment, particularly in US recovery. For 2015, growth is projected at 4¼ percent solid, close to last year’s level. In the Caribbean region, it’s expected to continue the economic recovery despite persistence of external, fiscal and financial vulnerabilities in several economies. In economies of tourism-dependent Caribbean, growth is projected to improve further to 2.0 percent in 2015.

Options of economic politics Despite sharp slowdown in recent years, economic slack remains limited, while expectations of growth in medium term continued to deteriorate, as noted in the IMF report. Also, fiscal positions have weakened in most countries, which doesn’t seem advisable to further fiscal expansion to drive growth. Exchange rate flexibility can play a key role in facilitating the adjustment more

38.

L&E

WORLD ECONOMY

ECONOMIC OUTLOOK: ASIA AND THE PACIFIC 2015

he economic outlook for Asia and the Pacific continue to be favorable, and the region is projected to remain the main engine of global growth over medium term. While pace of expansion has slowed since global financial crisis, robust consumption growth helped cushion the blow from weakening of external demand. As a region of oil-importing countries and participants in supply chains, Asia is expected to benefit from recent decline in world oil prices and ongoing recovery in advanced economies. However, real and financial volatility could overshadow this positive outlook, and persistent delays in implementing structural reforms could slow growth.

Source: FMI

net exports contribute only marginally to growth. Throughout the region, decline in oil prices temporarily push down headline inflation and, since it’s expected that much of the extra income to save, current account balances increase. However, considerable heterogeneity observed in the region.

In China, growth rate is down to a more sustainable level; in Japan, it’s expected to rebound in growth after a year of stagnation; exporters of nonoil commodities whose prices have fallen drastically (Australia, Indonesia, Malaysia and New Zealand) will be adversely affected by the deteThus, policies should continue to focus on strengthe- riorating terms of trade; in other countries, howening the resilience and improve production capacity. ver, growth is expected to stabilize or increase. It’s anticipated that growth in the Asia-Pacific region remains stable at 5.6% in 2015 and decline slightly In addition, effective exchange rates have shown an to 5.5% in 2016. It’s projected that domestic demand uneven developments across countries in the region, will continue to drive growth, supported by an ex- due to several factors: i) in the context of asynchrotraordinary increase in real income generated by nous monetary policies in major advanced econolower oil prices and strong labor market conditions. mies, including Japan, some currencies have remained more closely linked to US dollar, while others These factors are expected to offset the effect of have allowed more flexibility; ii) differentiated imdeteriorating financial conditions derived from pact of sharp fluctuations in terms of trade for imreversals of capital flows caused in part by pros- porters. Net exporters of raw materials, and iii) capipect that the Federal Reserve of the United States tal is to flow to some countries but others are leaving. tighten its monetary policy. It’s also envisaged that

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WORLD ECONOMY This regional diversity could lead to greater volatility. While outlook for Asia and the Pacific remain strong, balance of risks is tilted to downside. First, the considerably slower than expected growth in China and Japan affect the rest of region and the world given large size and deep trade and financial linkages with these economies. Itâ&#x20AC;&#x2122;s anticipated that countries with strong linkages in supply chains as well as exporters of raw materials to these large economies are particularly affected. Second, the continued strengthening of the US dollar against the euro and yen autonomously likely to cause a deterioration in domestic financial conditions in the region and impose higher costs of debt servicing for companies with a substantial amount of debt denominated in US dollars In addition, a stronger dollar against other major currencies would erode the share in export markets economies whose currency shows limited flexibility against US dollar Third, rapid accumulation of debt in the region could intensify sensitivity of growth to global financial conditions and inflation. The tightening of financial conditions in United States will raise domestic borrowing costs, while lower global inflation -if it matters to Asia- will raise the level of real debt. Resulting increase in the cost of debt could affect domestic spending, while higher level of debt could weaken credit channel of monetary policy. On the other hand, the decline in world oil prices has a significant upside risk to growth in Asia. Despite the projected increase in the world price as of the end of this year, is expected in the longer term oil prices remain well below the average of recent years. It could materialize further support growth if the contribution of supply to lower prices is higher or more persistent than currently expected, or if propensity to spend extraordinary revenues generated by decli-

40.

ne in oil prices is higher than currently scheduled. While debt has increased in much of Asia and the Pacific, reaching high levels in some economies, sustained income growth and favorable financial conditions have contained the risks in financial sector. However, risks are evident in real estate and although the bank credit/GDP ratios have increased at a slower rate in most economies, rapid credit growth registered previously has generated substantial gaps in several positive credit economies. Despite this evolution, in general, banksâ&#x20AC;&#x2122; balance sheets have been strengthened throughout the Asia-Pacific region. Looking ahead, pace of growth potential in Asia is likely to remain below pre-crisis levels. Coinciding with the evolution of growth, potential growth has slowed in much of the region. The decline primarily reflects a slowdown in total factor productivity (TFP), though important factor in several other economies has been slower growth in contribution of labor due to population aging. The slowdown in TFP growth Could be due to diminishing returns derived from participating in global value chains (CMV, see Chapter 2), Which Could limit productivity gains if structural Reforms are not implemented. In medium term, region will also benefit from a deeper regional financial integration, which has lagged behind trade integration (Chapter 3). An even greater financial integration in the region could contribute to a more efficient allocation of regional savings to meet the large investment needs of the region while supporting financial inclusion. What is the role of economic policy in this context? Most countries in Asia and the Pacific are in enviable position of having adequate space in interest rates and fiscal policy to provi-

WORLD ECONOMY de additional temporary stimulus if necessary. However, based on forecasts for growth and inflation, interest rates of monetary policy are adequate throughout the region, although concerns about fiscal sustainability and financial stability, and the risk of a resurgence of global financial volatility may make it necessary to adopt a more restrictive orientation of monetary policy in several countries. In addition, policymakers must also deal with several countervailing forces, among which are temporary fall and subsequent rise in oil prices, potential volatility of capital flows, and rising asset prices. Macro-prudential policy and currency intervention can help curb risks to financial stability and addressing sporadically disorderly conditions in exchange market, but allowing flexibility in exchange rate absorb shocks. On the fiscal side, the fall in oil prices and food provides an opportunity for further reform or eliminate subsidies, thus improving efficiency of spending public spending and protecting against future price fluctuations of raw materials. Itâ&#x20AC;&#x2122;s advisable to make further fiscal consolidation in those countries where public debt remains high. Structural reforms remain essential to boost productivity growth throughout region, including through reforms of state enterprises and financial sector in China, efforts to raise productivity and participation of workforce in the service sector in Japan, and measures to address supply constraints in India, ASEAN, frontier economies and small states. L&E

41.

WORLD ECONOMY

SOIL IS THE BASIS OF VEGETATION

Source: FAO

ealthy soils are very important to ensu- poverty and reduce the vulnerability of the rural poor re continued growth of natural vegetation or or- to the effects of land degradation and desertification. dered, which provides feed, fiber, fuel, medicinal products and other ecosystem services such as climate regulation and oxygen production. Soils and vegetation maintain mutual relations. Fertile soil promotes plant growth by providing nutrients and serve as water holding tank and a substrate for the roots. Meanwhile, vegetation, tree cover and forest degradation and desertification prevent soil to stabilize the soil, maintain the water cycle and nutrients, and reduce water and wind erosion.

KEY CHALLENGES

Land degradation is often direct result of mismanagement of this resource. The resulting reduction of vegetation and its products, such as feed, fiber, fuel and medicines, has a negative effect on soil productivity, human and livestock health, and economic activities. By contrast, land cover, particularly dense, healthy vegetation protects the soil from erosion agents, such As demand increases vegetation, animal feed as wind and water, and can improve productivity. and by-products such as wood vegetation, driven by economic growth and demographic chan- The livelihood of a large part of population depend ges, soils are under enormous pressure and the on vegetation: around 80 percent of the people in dedanger that degrade considerably increased. veloping countries use non-timber forest products Sustainable management of vegetation, either forest or to meet health and nutritional needs and income. grassland, increase the benefits that this waiver, inclu- In addition, an estimated 2 600 million people depend ding fuelwood, fodder and food, to meet the needs of on wood fuels, mainly coal, for cooking and heating. The society and at the same time, preserve and maintain the livestock sector is to grow largest user of land by humans. land for the benefit of present and future generations. Rangelands occupy 26 percent of land surface of EarSustainable use of goods and services derived from th, while feed crop production requires about a third the vegetation and the promotion of agro-forestry and of all arable land. The expansion of pasture land is a integrated farming systems can also help to alleviate key factor in deforestation, especially in Latin America, where about 70 percent of the land in the Ama-

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WORLD ECONOMY zon region that were previously used as wooded pastures and feed crops cover a large part of rest. Itâ&#x20AC;&#x2122;s estimated that of all grazing land in arid areas are about 70 percent degraded, mainly due to poor grazing practices. Therefore, sustainable management of pastures, woods and other land with vegetation is essential for the conservation of soil and, consequently, to support rural livelihoods, maintain livestock production, promote vegetation growth and ensure current and future use of raw materials.

FAO IN ACTION FAO has launched several projects related to sustainable production and improved soil management. In Burkina Faso, FAO provides assistance to groups of farmers in five farming communities of humid savanna zone to improve their integrated farming systems through conservation agriculture practices, including crop diversification, using an innovative discovery process by farmers to facilitate agricultural intensification and improved livelihoods. In Central African countries, FAO works to improve food security in the sub-region by promoting the use and regulation of non-timber forest products. While in Asia and the Pacific, FAO is fighting deforestation and degradation through promotion of assisted natural regeneration, a process of regeneration of degraded grassland and shrub vegetation through protection and plant breeding mothers and their wild plants for reforestation. L&E

43.

ILLUSTRIOUS PANAMANIANS

DR. BELISARIO PORRAS 1856 - 1942

e was born in the City of Las Tablas, only child, raised by his grandmother because his father went back to Colombia and his mother died when he was just a child. Course primary school in his hometown, then moved to Colombia with his father to finish his high school studies. Joined the National University of Bogotá to study law. After earning his doctorate in law and political science in 1881, with many difficulties completed studies at University of Leuven in Belgium, thanks to a grant from Colombian government.

Lisbeth Martez - Asistant lisbeth.martez@rbc.com.pa

Although he wasn’t against the creation of an independent Panama, seemed that by accepting the HayBunau Varilla treaty of 1903 Panamanians gave too many privileges to the government of the United States. Among other positions that he occupied before becoming president were the capital Municipality Councillor and President of the Council. He was appointed delegate of the Republic before the International Court of The Hague in 1907.

As minister of Panama in Costa Rica to discuss solutions to the border dispute, signed with the Secretary of State of the United States, Philander Knox, a Convention accepUpon returning to Panama Dr. Porras is a journalist and ting the American Arbitration in resolving the question has entered the ranks of the radical Liberal Party. The first of limits. In 1910, under governance of Pablo Arosemetime he held public office was in 1883, when was elec- na, he was appointed Minister of Panama in Washington. ted representative of the Chamber of Deputies of Panama State, and thus begins his journey through politics. He was elected President by a large majority, served as President of the Republic of Panama during three periods: During the Thousand Days’ War between the Liberals and Conservatives Dr. Belisario Porras, formed a batta- • from 1912 to 1916 lion who fought and enjoyed major successes, including • from 1918 to 1920 capture of the City of David and towns of Chame and • from 1920 to1924 Bejuco. But the Liberal battalion met his end in bloody Battle of the Bridge of Calidonia the July 24, 1900, During his presidential terms he made great after this loss was exiled in El Salvador and Nicaragua. contributions to our country’s development among which we highlight the following: During this exile, Panama achieved independence from Dr. Belisario Porras Panama identified limitations of Colombia. Dr. Porras never agreed with the separa- development, focusing on geographical position, and tion process between Panama and Colombia in 1903. regretted that Panama had not gotten advantage of this

44.

ILLUSTRIOUS PANAMANIANS circumstance to develop national industry and creation was extended based on the principle of equality bete an economy itself. Given that reality, glimpsed in fore the law and the experience of mixed schools in other productive work how to ensure true independence. countries. In a 1920 report, cited Jeptha B. Duncan criteria Belisario Porras, expressed in 1919, in that coeducation is To achieve this plan of government was needed to one of the developments that characterize democracies, provide drinking water to citizens and ensure public and is based on equality of all citizens before the law, regarhealth by building artesian wells (Los Santos, Colón, dless of sex difference, besides being a right that prevails. Herrera, Veraguas) and latrines inside the territory. So he created the National Board of Health, built hos- He founded school libraries and expansion of education pitals in various regions of the country and started a system began. In that sense, the figures show an increase in national anti-tuberculosis campaign of vaccination; number of schools and enrollment in education system betHe created the Department of Uncinariasis and the ween 1912 and 1924. Thus, in 1912 there were 323 schools National leprosarium. Promoted installation of Gor- and 15,082 students; by 1924, educational establishments gas Research Institute for research on tropical diseases. amounted to 420, with an enrollment of 54,792 students, of whom 44,280 were at the primary level, while the rest He contributed to the improvement of communications, was studying secondary, vocational or higher level studies. giving the nation of telegraph lines and courier, and activating the telephone network. He managed the construc- Among its enforceable are creation of Civil Registry tion of the Railroad of Chiriqui, which eased transport of and Public Registry, the Santo Tomas Hospital, Natiopassengers and goods in that province; also it provided nal Archives, nationalization of the National Lottery, the country with roads, bridges, piers, lighthouses, buoys. the Asylum for Children, Plaza de Francia, Model PriAlso pushed measures for the professionalization of the son, National Bank, reconstruction of the Post Office National Police and attempted to create a mounted police. building, colonization of San Blas and Javillo, and the development of national codes: Administrative, CrimiDeveloped a prolific work in education, promoting or- nal, Commercial, Civil. Judicial Prosecutor Mine. Also, ganization and improving infrastructure and quali- the creation of the La Exposicion Neighborhood, comty of education, through a government plan aimed at memorating discovery of the South Sea and in honor providing educational resources to teachers, for suc- of its discoverer, Vasco Nunez de Balboa Monument. cessful performance of their duties academic. He promoted internal reforms in the Ministry of Education, Dr. Porras was a great hero for our country, an honest perthrough which new plans and curricula were prepa- son, with moral and ethical principles that work for his red. Then gained great momentum instruction, both country without expecting anything in return, high convicprimary and secondary, vocational and university. In tion man, who believed and knew his people, who through this context he gave the l3 February 1915, Law 34, ai- education could succeed, since he was a living example med at raising the efficiency of the educational work of of self-improvement. Although spend many vicissitudes teachers, and classified the schools in urban and rural. in life don’t let it influence his public and private career. L&E

Under management of Dr. Porras were founded Adult School, the School of Professional Women and the Normal School of Institutoras; it expanded the School of Arts and Crafts, new guidance was given to the National Institute and the Normal School for Young Ladies, and co-educa-

45.

EDUCATIONAL CAPSULE

RAISE THE QUALITY OF EDUCATION

s promised in his election campaign, President of the Republic, Juan Carlos Varela, seeks to raise the quality of education through its Insignia, Panama Bilingual project of converting bilingual education. In January this year various teaching groups traveled abroad at different universities to improve the English language proficiency for periods of 2 and 6 months appropriately, in order to implement all the knowledge acquired at the end of the intensive course. In recent days, various media have announced the return to the country of teachers sent abroad, who finished successfully the course at the right time.

Alexander Canto - Teacher education/

archivo2@rbc.com.pa

tional resources, contributing to enable learners to develop English language as a second language. The initiative of current government is good; in turn bilingual education, which will invest an average $ 135.4 million between 2014 to 2019, as it seeks to raise quality of education for our students, so keep sending teachers abroad for its planned instruct administraci贸n.se two thousand teachers a year to complete 10,000 educators from around the country; which in turn will impact about 100,000 students in secondary and pre-media and 170,000 initial and basic, this is the one proposed by President Varela goal through Ministry of Education But equally must take into account other factors that affect direct form the teaching-learning process of students.

MEDUCA together with the President, by a ceremony at the Escuela Normal Juan Demosthenes Arosemena of Veraguas, the official handover teachers took certification that accredits them as bilingual teachers, like their new jobs in various As we all know, educational system still presents great schools, so they can apply different methodolo- difficulties, has spoken of a transformation in educagies learned in terms of English language learners. tion system at national level but are institutions with precarious infrastructure, nor have advances in techNow these teachers have the primary responsi- nology, lack of teachers; major obstacles that fails to bility to convey to our students, the full range of develop the project of improving quality of education; knowledge acquired in different areas of knowled- bringing repercussions that directly affect learning. ge through implementation of new methodologies, strategies and techniques, with the use of educa- Now we wonder if all students in the country come

46.

EDUCATIONAL CAPSULE this opportunity; if rural areas are difficult to access that donâ&#x20AC;&#x2122;t have necessary equipment in terms of infrastructure and educational inputs, where social problems such as malnutrition, low income families, students walking several hours also they have to get schools, among others, leaving as a result dropouts, therefore students who are in this demographic are at risk of losing the same level of quality of education that students in downtown areas, thus giving unequal educational opportunities. How could MEDUCA implement this new form of bilingual education in these remote areas, if in many schools dont have a comfortable learning environment, suitable to carry out a good learning effectively; It is a fact that in many of our schools occurs in both downtown areas as inaccessible.

Improve the quality of education is a priority, but not a responsibility that rests solely on the education authorities must also be a commitment on the part of teachers, students and parents to take on this challenge in the best way possible and in order to have a quality education that responds to constant changes occurring today in society.` Having a quality education is not only implementation of new methodologies in terms of bilingual education is a complement to many factors, which are involved at the time teaching process that will achieve real quality education develops, which generates legitimate opportunities for progress and prosperity for the country, achieving a competitive and relevant to the development and personal growth of all students and society education. L&E

We estimate that Ministry of Education in conjunction with the government before starting any project, you should seek concrete solutions to all the problems afflicting our student population.

47.

FASHION

DRESSING WELL

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

P Formal and Casual professionals

rofessionals today are increasingly losing interest in dressing gown and tie, the trend is becoming far more formalcasual with what they’re never out of line. It’s important to note that when discussing the formal term casual aren’t referring to any dress, even must be presentable for meetings, impromptu interviews, business lunches and obviously for all labor Extra events we face daily. Always remembering the proper mixture of colors, we can mix neutral colors with bright colors without overlimit or not get noticed by the color of the garment, we recommend using the following color scale.

48.

FASHION Begin Speaking of shirts, itâ&#x20AC;&#x2122;s important to check cut of shirt if the waist is cut Oval or linear, in case of linear not recommended shirt out. Shirts to be used to be formally casual, vary the color, but as a common factor can wear shirts of a single blue background, celestial, gray or white.

Many colors can vary depending on skin colors are going to be some better than others, but here I give you some recommendations.

49.

FASHION Trousers Trousers, Dark Jean and cotton pants (Chino Pants) now come to play an important role, remember to see Formal pants should be black, gray, Dark Blue, Coffee, Khaki or Beige.

Trouser silhouette depends on body type, is not recommended for very large men cased pants, because at the time of sitting or squatting not look very good, a looser silhouette is recommended. You can vary, remember that it’s not necessary to always use the same type of pants, venture to use new styles is what will accomplish much dynamism in your attire.

Jackets

Jackets we recommend you to make a formal-casual use coffee, black, camel, gray and blue. To mix is important for shoes, belt and jacket are consistent, remember that chords aren’t mean they are the exact same color but are in the same color scale. You can use Blazers, short jackets, long depending on your taste, here we suggest some, but always keep in mind your body, if you’re thin body can wear jackets closely if you are a person with large body recommend this jacket a little wider, a good way to measure is to dress jacket and raising arms, should feel smooth if you feel tight, this jacket will close when you see her in the street.

FASHION Don’t forget that you can also use bags or jackets to go with your outfit, always good change of style, colors and types of clothing. Are some recommendations that can be used in the office at this time of winter, and when it rains they become colder air conditioners in offices and use cotton vests would give you a very trendy touch, and exit can have jackets or waterproof to protect from rain, but avoid jackets with propaganda as spoils any look, invest in neutral one of good quality, can be a Trench Coat (as we see in the picture below) if you are small you can use the Crusaders, but if you are more used plump simple.

Shoes

Shoes are an important presentation letter, so we recommend that you always go very closely with jacket and belt and will be an ideal complement, we recommend you don’t wear shoes that come with high platforms, having tips very raised, at least not for a formal-casual look, try these cases always going with the basics, simple and elegant. For this winter season using thicker soled shoes as they will keep your feet always protected and not get wet when you have to move more in streets on rainy days.

I hope these recommendations will help them know how to choose what we have in our closets to dress formally-casual, these are looks that are making a lot these days and especially in our country that has such a humid climate, our clothes and relax once we are ready to meet any formal commitment, without ignoring that makes us look more cool and we’re always update to fashion trends.. L&E

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SPORTS CAPSULE

The Rojita, ready for World Cup

Albin Rodríguez / Jonathan Forget albin.rodriguez@rbc.com.pa jonathan.forget@rbc.com.pa

Panamanians in the Exterior

anama U-20 is ready to participate in the World Cup t the end of this soccer season abroad, highlighted 2015 to be held in New Zealand, culminating perseveral Panamanians who closed with a flourish his form a series of friendly matches, among which we participation in various clubs to which they belong, highlight the following results: among which Roberto Nurse in Los Dorados, league champion of assent of beating Mexico’s Necaxa team. The team • Panamá 6 – Australia 1 Dorados have fallen in 2006, who for nine years have tried • Panamá 2 – Uzbekistán 2 to climb back to the first division. • Panamá 1 – Uruguay 0 • Panamá 1 – Qatar 0 Another was also highlighted Gabriel Gomez, with his club • Nueva Zelanda 2 – Panamá 1 managed to beat Herediano Alajulense team in the shootout. These games were played the rojita ends preparation cycle waiting for day May 30 for his debut against champion of And finally Rolando Blackburn in the champion team of this tournament team for Argentina. the Guatemalan league, Communicaciones FC.

We are convinced that participation of our team will bring much joy to Panamanian people, as has been the best pre- Alonso Edward wins and gets to the paration of all U-20 they have played this world cup. Olympics in Brazil 2016

CONCACAF Women’s Soccer day

anamanian sprinter won last Sunday May 24 first in China and at the same time ualified for the Olympics 2016 in category 200-meter dash.

It’s the first Panamanian confirming their participation at n Saturday May 23 it was held the day of the the next Olympics. Women’s Soccer at the Maracana Stadium in PaToday, May 30, competition will be in Oregon, United Stanama City. tes, which serves as preparation for improving his record. This day was organized with the aim of generating menta- We wish you success. lity to recover the ideal of formalizing a women’s professioPanamanian athlete Yvette Lewis says here in the Olympics nal league, lift it and promote it. Brazil 2016 Similarly, FEPAFUT is conducting a festival of women’s football on Saturdays from 9:00 in Maracana Stadium, This Panamanian brokerage classification achieved during where girls can attend from 6 to 12 years to be developing the meeting of World Challenge Beijing, where she placed fourth in her career mode, go jump in time of 12.98 setheir skills in the sport and the future have great players. conds.

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The minimum mark to participate in this modality is 13.00 seconds. We hope that our broker has an excellent performance in her first Olympic competition for good results.

SPORTS CAPSULE

SCANDAL IN FIFA

he United States Department of Justice today released a statement announcing that 47 charges have been filed in court in Brooklyn (New York) in FIFA for “mafia organization, massive fraud and money laundering, among others”.

Two vice presidents of FIFA, Uruguayan, Eugenio Figueredo, and Caymanian, Jeffrey Webb, as well as the president of CONMEBOL, Paraguayan Nicolas Leoz, are among the 14 accused by the United States for corruption.

Figueredo could revoke his US citizenship for forgery. FIFA president Sepp Blatter, said “there is no room for corruption of any kind” in that organization since 1998 and that “it is necessary to start restoring confidence” during the inauguration in Zurich 65 conference Friday morning in which presidential elections will be held.

“You will agree with me that these are difficult times, unprecedented for FIFA. The facts of yesterday (Wednesday), have left a long shadow over football and this Congress. Individual actions demand changes. We can’t let FIFA’s reputation is harmed”, he said at the The other defendants are the Costa Rican federation opening of the session. Eduardo Li, the Nicaraguan Julio Rocha, the Trinidadian Jack Warner, Venezuela’s Rafael Esquivel, the Blatter managed to stay for fifth time FIFA president, Brazilian José Maria Marin and Caymanian Costas defeating his only opponent, Jordan’s Prince Ali bin Takkas. Al-Hussein, FIFA vice-president for four years. Blatter invited representatives of the 209 associates that beThe US Attorney hasn’t filed charges against FIFA pre- long to the federation “not to lose the spirit of soccer.” sident Sepp Blatter, presented for re-election for a fifth term next Friday at FIFA Congress in Zurich. Jack Warner to the hospital for exhaustion. The United States is willing to thoroughly investigate. These leaders were arrested when were in a hotel where they were staying prior to participating in the annual FIFA Congress. In addition, we are putting red card in the seven leaders, and to be seen whether eta due to corruption if given the World Cup in 2018 in Russia and 2022 in Qatar in effect.

The former Trinidad and Tobago FIFA vice president Jack Warner left the prison in ambulance where being held, after submitting the Justice bail imposed on Wednesday his country.

According to local media, Warner had shown signs of exhaustion in the last hours and said he wasnt able to meet reporters who crowded at the gates of the prison According to this research the accused would be invol- waiting to present his bail and was released, so he left ved in obtaining bribes worth more than 150 million, the prison in an ambulance headed to a private hospiaccording to the Department of Justice United States. tal. Some of perpetrators of these crimes may face prison Loretta Lynch is the terror of FIFA terms of 20 years, according to the note, which states that in addition to 10 years in prison that be ordered to Loretta Lynch is not afraid of big challenges, either

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SPORTS CAPSULE to shake to FIFA or to order millions to banking giants fines. Last November he appointed Barack Obama, in a controversial decision, replacing Attorney General Eric Holder. “She has spent her life fighting for justice and from its position, will face corruption” predicted the US president.

Al Hussein. ‘Sepp’ by a landslide overtook his rival in the first round of voting that ended up being final but didn’t achieve majority needed (2/3).

In that round Blatter won 133 votes for 73 of its rival. Voting very clear on behalf of the Swiss, they convinced Al Hussein to withdraw from the fight Mrs. Lynch is a fighter with a long career that has earlier before a runoff that would corroborate power of Blatter. jeopardized FIFA.

False alarm at the FIFA congress

Joseph Blatter and began his fifth term as FIFA’s throne, where he agreed in 1998 replacing Joao HaThe FIFA Congress in Zurich was suspended tem- velange. If complete its mandate, the Swiss turns 21 porarily, given that there was a bomb hoax, but at the front and be close to 24 held its predecessor. members of the fire department of the city refused the situation on that explosive device in place. Lesson for FEPAFUT On the other hand, took the opportunity to make a clarion call to the leaders of Panamanian Football Federation (FEPAFUT), this global scandal serve as an example and avoid such situations and are fully transparent in their duties at the helm of this The threat came during the lunch break. The jour- important organization . nalists were evicted under the excuse that it was clear the area. Then, a firefighter barred from ente- Take the necessary corrective measures to prevent a disagreement who among private companies ring the room through the press access. have shown interest in supporting the national soccer repeat, however decide to withdraw their Blatter as usual triumphs collaboration disagree with managing sponsorship Joseph Blatter re-elected FIFA president. Or cases with the Federation. of corruption that have dotted maximum body of football in recent days have affected the Swiss, who Also struck by the sudden change of the leaders of the Federation until Thursday supported Blatter will take his fifth consecutive term. then moved his support contender Blatter, as if it Thus, Blatter emerges unscathed from the ‘case were not known for a long time that FIFA is rotten FIFA’ after winning ratings the Jordanian Ali bin with corruption ago. Police in the Swiss city confirmed the threat, but it was dismissed soon after and journalists and delegates of national federations member of FIFA could return to the main hall Hallenstadion.

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CULTURAL CAPSULE

Theater: • National Theatre: JESUS CHRIST SUPERSTAR, 1 to 7 June 2015. • Circle Theater: Dreams of a Summer Night, from 9 to 28 June 2015. • Teatro La Estation: The Dinner Game 1 to June 30. • La Huaca- Atlapa Theatre:My Gordo no one can take away June 12. • Teatro La Quadra: Cry to Heaven with all my heart from June 4 to July 19. • Teatro La Quadra: Wanted mother, blind, deaf and dumb from 16 to 18 June. • Teatro La Quadra: Don’t play with my bread, sir inspector until 31 May.. • ABA Theatre: Naked June 25 to August 2. • ABA Theatre: Frozen until June 28. • ABA Theatre: The corrupt are honest people from 2 to June 21.

Festivals: • IX Festival Alfredo de Saint Malo - City of Knowledge Ateneo May 27 to June 7. • Festival 80’ and 90’ “Because you did your history” Islands of Atlapa- June 11. • Let’s Dance Salsa and Merengue, June 14, Figali Convention Center. • Corpus Christi Festival of the 4 to 7 June in La Villa de Los Santos is a rich experience in the Panamanian interior traditions:

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

CULTURAL CAPSULE o Eve of the Trinity (May 30). o Eve of Corpus Christi (June 3). o Corpus Christi Day (June 4). o Eighth Day (June 11). o Day of the Heart of Jesus (June 12). o Dedicated to Tourism Day (June 13). o Day Dedicated to Santeña Women (June 14). • XI International Guitar Meeting to be held at National Theatre June 28 to July 2. • III International Arabian Dance Festival in Panama, 6 and 7 June at the Hotel Panama. • Music Festival 2015, 20 and 21 June.

Sports: • June 3 - Friendly: Ecuador vs Panama at Rommel Fernandez.

Museums and Exhibitions: • Interoceanic Canal Museum of Panama: o 1st floor Permanent Exhibition: Discovery of the South Sea or the 5th centenary. o 2nd floor: Exhibition on the canal by Americans. o 3rd floor: Panama through photographs, is a photographic exhibition that starts from 1860 to 2013. • MAC: o “An addition to MAC” we present Dialogue + Mac brunch on Sunday May 31. Time: 11:00 am. Free entrance. o The exhibitors will present the Mayor’s plans for the sector it is May 5 and Ancon. Exhibitors: Architect Manuel Trute, Architect José Isturaín, Architect Carlos Eduardo Rodriguez... o “Creole Albrook 2014-2015. Return “of Aristi-

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CULTURAL CAPSULE des Ureña from May 6 to June 26. o Great auction MAC 2015, June 3 / Hotel Miramar. A benefit of the Art Therapy Program with MAC o Dark eyes: permanent collection until July 19.

Concerts and performances: • Chayanne will be around concert on June 17 Figali Convention Center. • Maluma / Chino & Nacho concert June 20 Figali Convention Center. • Classic Rock Panama Chiriquí David Larios Meeting-June -13. • Interpretir Venezian June 15 Ateneo de la Ciudad del Saber -Asoc. National Concert. • Myriam Hernandez MH25 years in concert, June 23 Theatre Anayansi. • MUSIC-ART from 9 to June 20.

Seminars, Conferences, Courses and Expo:

• Super Women Conference - Holiday Inn June 17.

Activities and festivities: • Corpus Christi June 4. • June 13 San Antonio de Padua. • June 24 San Juan Bautista. • June 21 Father’s Day. • June 29 Feast of Saints Peter and Paul Apostles. • National Prize for Children’s Literature Carlos Francisco Changmarín: o Deadline for applications: June 22, 2015. o Judgment and awards: July 22, 2015. • National Literature Contest Ricardo Miró:

o Deadline for applications: June 30, 2015. o Judgment and awards: October 23, 2015. • III Drawing Meeting Manuel Amador Guerrero from 8 to 26 June. L&E

Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA