Panama Investor Blog

Paperless Panama?

My dear freind Nancy Hanna shared this bit of news with me today. The government of Panama is working with Microsoft to make Panama one of the first countries to digitalize all government transactions. Of all the benefits this should bring I will be pleased if it will increase efficiency and reduce corruption as claimed in this piece. You can read more interesting information at Panamainfo.

Paperless Panama

The government of Panama is working with Microsoft to make Panama one of the first countries to digitalize all government transactions.

This project was presented at Panama’s recent Competivity Forum Oct. 19th at the Playa Bonita Intercontinental Hotel.

The National Innovaction Authority aims to accomplish this by 2012. 50 million dollars have been designated for this project.

Even though Panama is a so-called underdeveloped country, this digitalization will increase efficiency and reduce corruption, enabling Panama to jump ahead in development.

Panama’s education system is also working with Microsoft to create online training for teachers, provide teachers and students with laptops and improve education in general- a critical intiative since Panama’s public education system is one of the weakest in Latin America.

The digitization of transactions will save the country an estimated 25 million a year.

Also, in 2011, the  private sector will soon be able to make tax payments online-  saving money by elimination  countless hours of private sector time. Until now tax payments had to be made with certified checks.

The Martinelli government deserves congratulations for using innovation to develop Panama more quickly, more cost effectively and more effectively.

 

12,700 new hotel rooms and few skilled workers

  I have posted about this challenge before, but an article in the paper today brings the issue to light with a few more details. First consider that Panama will be nearly doubling its number of hotels over the next few years. These businesses are already struggling with finding the human capital required for these many new hotels and restaurants. They are in need of over 15,000 workers in hospitality and as this article points out, Panamanians ar  e deficient in their language skills.

MINERVA bethancourth
mbethancourth@prensa.com

The hotel industry is concerned about the lack of manpower that will require projects to be built in the country.

The president of the Panamanian Association of Hotels (APATEL), Sara Pardo, expresses its concern at the forum on "Investing in Infrastructure and Human Capital as Engine of Economic Growth."

In the next three years will enable 12 000 700 new rooms and it is estimated that hotels need about 15 000 employees, including waiters and waitresses.

Pardo noted that the main weakness observed is the English domain, which is a disadvantage to Panama to other countries like Costa Rica, which is already demanding the use of three languages.

Although some government agencies advance training initiatives, Brown believes it is necessary to start more programs across the country.

 

Overview of new flights to Panama

Salo Shama, Panama's tourism manager, has been very active in getting airline companies to begin direct flights to Panama. He knows that this is the best way to attract visitors because just to advertise the country and have no easy way to get there accomplishes little. Here is an article from La Prensa that gives a good overview of the new flights that are being scheduled into the country.

MAchine translated from La Prensa

ALEX E. HERNANDEZ
aehernandez@prensa.com

New airlines gear up for landing at the Tocumen International Airport.

Between November and December two companies will begin operations of Flight: Tame of Ecuador and Germany's Condor. The first will make its first commercial flight to Panama on December 1, whereas Germany has referred to fly in mid-November.

Tame will have a frequency of six flights per week, excluding Saturdays and cover two routes a week: Monday, Wednesday and Friday made the trip from Quito to Panama, while on Sundays, Tuesdays and Thursdays will fly from Guayaquil to Panama.

But the Panamanian market is no stranger to Tame, the airline already performed two charter flights to Panama every seven days.

"We realized we had an opportunity to establish flights a week and hope in the first months of occupation of 75%," Benaim said Maurice, manager of Tame in Panama.

For its part, the German airline Condor is only waiting for the Civil Aviation Authority (CAA) gives approval to begin flights to Panama.

The company made a direct flight to Panama from the German city of Frankfurt to a 45-minute stopover in the Dominican Republic.

For the president of the Panamanian Chamber of Tourism, Annette Cardenas, it is important to increase flight frequencies to the country, it is the only opportunity to attract more visitors. Besides these two airlines in 2011 awaiting the arrival of new companies, including Qantas of Australia, who will perform a scale of four days in Havana, Cuba, and then fly to Panama, where passengers will take another four days, then return to their country. In November he will take the first step for airlines of the UAE is interested in for flights to Panama.

Rafael Barcenas, director of AAC, said during the forum to carry out the Latin American Air Transport Association will sign a bilateral agreement with the UAE, which would allow companies such as Emirates Airlines and Flydubai set frequencies that include Panama.

For the next year also has seen the arrival of the Japanese airline All Nippon Airways (ANA), which is awaiting the results of the technician performing their new model Boeing Dreamliner to negotiate with Panama is a direct flight between the two countries.

Caribbean Connection

On Saturday October 23 was the first trip of the Dutch Antilles Express Company (DAE) to Panama.

The airline was founded in 2005 will have two flights a week between Curacao and Panama. Floris Van Pollan, CEO of the company, said the airline operates flights to Venezuela, Colombia and the Dominican Republic but said that Panama will be the first Central American destination that will cover the company.

Panama's metro contract awarded

The $1.5 billion dollar metro project has been awarded to a consortium headed by Brazilian construction company Odebrecht. The company has been involved with a number of infrastructure projects in the country, but this will be by far the largest contract they have won. This is the first of a proposed 3 lines for the metro which should help relieve traffic for the city and make getting to work much easier for the hundreds of thousands of people who currently are victims of the notorious red devils.

Machine translated from La Prensa

Roberto González Jiménez
rgjimenez@prensa.com

Line One consortium formed by Brazilian construction company Odebrecht and the Spanish FCC will be responsible for implementing the first Metro line of Panama, to be victor in a long bidding process that ended yesterday.

Although its financial offer was higher than his opponent - $ 1.447 million versus $ 1.401 million offered by the Italian Group Metro from Panama, the evaluation commission gave a better score on the technical side, which made the Brazilian consortium, Spanish obtained the highest total score.

The two economic proposals were below the reference price of the Secretariat of the Metro, which was $ 1.589 million.

After learning the name of the group elected the president, Ricardo Martinelli, asked "to finish the work quickly, within budget and with as little involvement as possible." Also ventured to speak of lines 2 and 3.

For his part, Robert Roy, secretary of the Metro, was more realistic: "We have not done anything. We're starting. "

FINAL EVALUATION OF PROPOSALS

917 points for a proposal of Odebrecht and FCC.

708 points added to the proposal from Metro Italian Group of Panama.

Roberto González Jiménez
rgjimenez@prensa.com

It was eleven o'clock when the crowded hall of the Sheraton hotel was quiet.

Shortly after the door appeared the president, Ricardo Martinelli, accompanied by his inseparable vice president, Juan Carlos Varela. The room stood.

It began with an hour delay the event that became known the winner of the logo work for the administration of Ricardo Martinelli: The first Metro line.

It brought together senior government officials, diplomats from countries with companies involved, representatives of multilateral finance the work, and many members of the consortium that would be the winner. Little Italy was heard in the room.

As revealed technical skills, the balance fell to the side of the Odebrecht construction and FCC and train manufacturer Alstom, the consortium Line One

In the six technical criteria analyzed, its proposal was superior, totaling 578 of the 650 points possible in that part of the evaluation. The Italian Group of Panama Metro was at 358 points.

It was not until they opened the envelopes containing the financial proposals as Brazilian, Spanish and French have forgotten formalisms and warmly congratulated for the win.

Although the price they offered was the highest, $ 1.447 million for the $ 1.401 million Italians, the brunt of the technical part of the contract made them winners.

His bid was below the official price of the Secretariat of the Panama Metro -1.589 million, "but was within the allowable range.

In the absence of formally awarding the process includes a period of three days for possible claims, Odebrecht, FCC and Alstom and celebrated yesterday the completion of the second contract more substantial in Panama's history, behind the design and construction of the third game Canal locks.

The joy of a contrast to the disappointment of others. The representatives of the Italian Group of Panama Metro left without signing the minutes.

11 stations

The price of $ 1.447 million relate only to the construction of 11 stations, not the 13 announced by the Government.

The consortium submitted separate bids for the stations of El Marañón and Curundú listed as optional in the statement of objections. Its construction will be decided in the coming months, said Robert Roy, executive secretary of the Metro.

Whatever the final number of stations, the line will link the Andes and Albrook and will have 13.7 kilometers, each costing more than $ 105 million.

It is estimated that work will start in early 2011, after completion of engineering work.

Antonio Gavioli, representative of the winning consortium, said it will have to work day and night to complete the project in December 2013, the date established in the statement.

Companies will receive a bonus if they deliver the work before, but will also be penalized if they are delayed.

These works, together with the road realignment, will generate a major upheaval in the city over the next three years.

Rests with the authorities, who are already calling for patience to citizenship-the apparent mission impossible to alleviate traffic congestion.

Tragedy strikes Trump Ocean Club

A young construction worker lost his life while working as a sub-contractor on the Trump Ocean Club this week. What makes this loss especially tragic is the fact that the project has a perfect record of safety up until this point and with over 10,000,000 man hours already invested into the project, that record was a testimony to the safety practices of the projects construction manager, Jenaro Echeverri. I had an opportunity to visit the TOC and received a tour of the entire project last month. The thing that really stuck with me was the perfect safety record that Jenaro was so proud of. On several occasions during our tour he pointed out how meticulous they were regarding safety and that in all his years of constructing large projects, this was the one with the best safety record. My condolences go out the family and friends of Jorge Jaramillio, the young man who died, and to his fellow workers at the project.

My visit to the project. Click images to enlarge:

When I had an invitation to visit the Trump Ocean Club while under construction and I jumped at it. As one with an engineering background, the chance to see the "behind the scenes" of a mega project of this kind  was an opportunity I could not pass up. What strikes me the most about this building is its immence size. It dominates everything around it. Standing behind the building and looking up into the two curved architectural structures give you a real sense of size. The project construction manager, Jenaro told me he believed the cost of the curved architectural elements was about $50 million. Not only was it difficult and expensive to construct, but it cuts back significantly on the available square footage the building could have had if a regular box structure had been constructed. It also makes every room on the curve a different size and shape. It may have been costly, but it certainly gives the building a unique iconic identity.

My oldest son Travis accompanied us on the tour and we began on the upper floors working our way to the very top of the building where the air conditioning cooling towers were being installed. Jenaro told us that the top architectural element was being constructed in pieces and will be brought up by crane and assembled on site. This will give the building its "sail like" crown.

We climbed at least 20 flights of stairs in order to reach various levels they wanted to show us. From the casino to the lobby of the condo hotel, it is the immensity and grandness that strikes you. Some of the finishes where being installed in common areas and the details and quality of materials were superb IMO. We visited several completed model rooms of the condo/hotel and the hotel rooms. Definitely no expenses are being spared to make this the finest luxury building in Latin America.

This is a letter from construction manager Jenaro Echeverri to fellow employees about the accident.

Today, at 8:20 am, we found one of our workers dead at basement level, apparently after falling through a shaft from level 1000 or below - we don´t know exactly what happened, as explained further ahead. There is not enough information about this very sad fact, as nobody saw anything. This is a summary of what we know so far:

Jorge Jaramillo was a young Panamanian man, 19 years old, working as a helper - non skilled - in Pool Deck area, this morning, 7:30 am. Jorge was part of NIÑO CAINA´S payroll. NIÑO CAINA is a sub-contractor working in this area, with less than 30 workers, doing tile installation in swimming pools- floor 1350. Jorge´s boss, Foreman LUIS, sent Jorge to look for some elements in the warehouse, nearby, at floor 1300. Nobody saw with path Jorge took, but after more or less ten (10) minutes, someone called LUIS, the Foreman, informing that Jorge had fallen.
Simultaneously, at level 100, was heard that there had happened an accident and someone was laying injured in basement level. In less that ten (10) minutes Jorge was taken to PUNTA PACIFICA HOSPITAL very near from our Project, but died just arriving. Not before Monday or Tuesday there will be an available autopsy.

Police, Ministery of Labor, Union SUNTRAC, and Municipality Authorities came immediately to job site to inspect it. After walking through all floors from 1300 to 000 and Basement with all this Functionaries, it was evident that nothing was clear about this incident. It was unclear from which floor Jorge felt and how it happened: we did not find any wide open shaft un-protected or any suspicious place to look at in detail. There is not a "perfect" Project and to find a risky border in 265,000 m2 is not hard, but we have been taking care of  prevention since the last three (3) years successfully, until today. At least for me, this is something that needs a deep investigation, as I don´t understand how it occurred. (And, I guess, the ones that where with me neither). In this working phase, there are too few risk of falling, an almost all shafts or borders are completely closed. After more that 10,000,000 working man-hours with zero-accidentes score, and after huge investment in safety and prevention, this is really something very discouraging and unexplainable. (But this is only my personal point of view).

Project was closed at 10:00 am by direct order from OPCORP, but, at the same time the Ministery of Labor, the SUNTRACT (Labor Union) and Local Authorities requested to stop all activity. That was accepted, of course. Next Monday was not going to be a working day because it is  Construction Worker´s Day in Panama. So, on this day, we will be receiving again the Police Investigators and Local Authorities that will start doing a complete investigation. Only after having a complete official report  maybe it will be known what happened. I suspect that normality will come back not before Wednesday, October 27, hard pressing our schedule.

As for the News, Radio and TV: I suspect that this situation will attract wide coverage in Panama and maybe outside. Hopefully we won´t get too bad press, but it is very hard to prevent this.

Any new development of this very situation will be informed as soon as possible.

Regards,
Ing. Jenaro Echeverri
OPCORP INTERNATIONAL Inc.
Gerente de Construcción

 

 

 

Panama receives very poor score when it comes to corruption

Panama has once again received a very low score when it comes to corruption according to Transparency International which makes this survey available each year. Although I have seen a positive change with this administration in regard to corruption, there is still a lot of it and it will take years to weed out. Most of the corruption is in the Judiciary from my experience and if you cannot get  fair treatment with the justice system then you have a very weak platform in which to build a solid country. Panama must strengthen its rule of law and get rid of the corrupt judges, attorneys and their minions who are always there "to help" you get through the system. If Costa Rica can manage to get into the top 25% on this index, then why can't Panama. Maybe the President will attack this very sticky problem next year.

From La Prensa:

José González Pinilla
jagonzalez@prensa.com1459691

Panama remains one of the countries with the worst corruption perception index, according to the report released yesterday by Transparency International (TI).

The country received a score of 3.6 on a scale of 1 to 10, where 1 is considered highly corrupt and 10 countries representing the "clean" of corruption.

While Panama rose two points, compared to the 2009 report, which achieved 3.4-no cause for pride, said Carlos Gasnell, executive vice president of the Foundation for the Development of Civic Freedom, the Panamanian chapter of TI. "We would feel relief if we could score 5" he said.

Of the 178 countries assessed, 75% are below 5, while 25%-including Costa Rica, is above the score.

The country seems to progress in the fight against corruption. At the end of the administration of Mireya Moscoso (2004), Panama received a score of 3.7, while with Martin Torrijos as president in 2005, the rating was 3.5.

The result was dismissed by Secretary of Transparency against Corruption, Fernando Nunez Fabrega, arguing that the report does not reflect the reality of the country.

Cielo Paraiso Opens 18-Hole Championship Golf Course in Boquete

I had an opportunity to visit Cielo Paraiso (Paradise Sky) last month and I must say it is beautiful and the views are  truly incredible. It had been well over a year since I have had the time to visit and they have made a great deal of progress under very difficult circumstances. Not only have they been struggling, as most residential projects with a challenging economy, but the man who's vision it was to build this project, Radeep Lal, passed away earlier this year of a heart attack. Raydeep and his wife Colleen came to Boquete about 10 years ago and were determined to build an 18 hole championship golf course and residential community. Radeep loved to play golf and he loved Boquete, so the building of Cielo Paraiso was to be a dream come true.

Radeep will be greatly missed, but fortunately his wife Colleen shared that vision and with the help of Radeep's family they have continued working on the project and completing the golf course. Cielo Paraiso will be a standing legacy to the vision and determination of Radeep and Colleen Lal. His dream has come true and all of us in Boquete and Chiriqui province will greatly benefit.

All of the infrastructure such as roads, water, electric have been completed and the first nine holes of the golf course have been playable for over a year. Now they have completed the back nine and in a few more months of grooming, the entire course will be ready to play. Here is a story from Sportgrass.com with more details.

Cielo Paraiso golfers enjoy serene, hilly terrain with a 360 degree view

Boquete, Panama (NYSE) 26 October 2010

Cielo Paraiso is the first 18-hole championship golf course level in Boquete, Panama, opened in January 2011. The course marks the end of the first phase of the Gladstone Developmentâ? S new residential resort development, Cielo Paraiso, which also completed 14 houses and 30 homesites for sale. Set in the picturesque mountains of Boquete, Panama, the 750-acre development of the newest and most exclusive residential areas resort community in Central America.

Designed by J. Michael Poellet for the protection of native flora and fauna habitat Cielo Paraisoâ?  While playing the beautiful yet challenging course, the players also have a spectacular view of the Baru Volcano, the Jaramillo and Talamanca Mountains and the Pacific Ocean, dotted with islands. The 7200-meter par 72 layout includes forests, meadows, valleys, ridges and riparian coupled with dramatic elevation changes make for a signature golf experience.

Our goal with Cielo Paraiso was to build a course to blend in perfectly with the unique topography of the land  said course designer J. Michael Poellet. I truly believe that we created one of the most visually stunning courses in all Central / South America.

Scenic home sites are currently available for purchase at Cielo Paraiso, starting at $ 150,000. These spacious home sites ranging from ¾ acres to over 2 acres of picturesque places on the property and offer sweeping views of the Pacific Ocean, and Jamarillo Talamanca mountain, Volcan Baru and golf course.

Cielo Paraiso is a unique opportunity, a piece of Boquete, one of the most sought after destinations in Panama for those who want to live or invest in a comfortable house and more popular destination in Central America,says Gladstone President Colleen Lal. The wonderful climate throughout the year and the natural beauty of Boquete region makes a perfect location for an active lifestyle, the Championship golf course, hiking, bird watching, mountain biking, rafting, and may include many other activities.

Gladstone Development is currently working on the plans for Phase II of development, a collection of well-equipped options that are smaller will contain. This idea was received well by buyers looking in Boquete.  Although our home sites are a very affordable option in Boquete, we plan to diversify our product mix to accommodate the demand for customers looking for a smaller second home. Lal says. The master plan for Phase II will be released in 2010, with construction starting early 2011.

Conveniently located just 30 minutes from David, the capital of Panama Chiriquà province, is the target of Boquete in the country situated on the most mountainous region, at 1,200 meters (3,600 feet). Situated between the Caldera River, which lies to the east, and Baru Volcano to the west, Boquete enjoys a comfortable climate, ideal for outdoor enthusiasts. Known as the Valley of Flowers and Eternal Spring,  charming Boquete has established itself as one of the fastest growing retirement and tourist destinations in the western hemisphere, with its serene beauty and variety of outdoor activities. The lush vegetation and vibrant population of rare birds and the possibilities for hiking through the Volcano Baru, the highest point of the country concerned have established Boquete as one of the world's 5 top eco-tourism destinations.

Recently, the AARP is ranked Boquete as one of the top destinations to buy a house, Panama offers first-world infrastructure of roads, business services, healthcare and telecommunications. A growing retirement and investment refuge with a more affordable standard of living, Panama has a sophisticated capital, incredible rain forests, and some of the best ecotourism in the world, bird watching, scores of exotic beaches and islands, snorkeling, diving, sport fishing, rafting, climbing, fine restaurants and a variety of historical sights.

 

The latest polls on Panama Public Education

The results are in and it is not pretty! A countries future will depend on the education of future generations. Unfortunately, like many countries, Panama's public education system is controlled by unions and the result is a very poor performance from educators and students alike. This poll taken in Panama sheds light on how the general public feels about Panama's educational system and specifically what is holding it back.

Machine translated from La Prensa

Public education is in check

The low quality of education due to lack of vocation of educators, says 38.9% of those polled by Unimer.

factors. Poor preparation of teachers and outdated programs, two of the reasons why education is poor, according to respondents. LA PRENSA / Jihan Rodríguez1459271

URANIA CECILIA MOLINA
umolina@prensa.com

58.4% of respondents in the latest survey conducted by Unimer for La Prensa believes that public education is deficient.

The perception of respondents to the survey is far from what the system reflect studies done, including who conducted members of the late National Council of Education, published in 2008 - which warned that 40% Panamanian students' primary for that date (2004-2007) did not master basic subjects such as Spanish, math and science.

The document prepared by the Council noted further that within the Ministry of Education (MEDUC) develop initiatives in the field of quality, but those efforts were "disjointed, without regulation and without a clear direction towards the goals of improving the quality of student learning. "

Subsequent studies have yielded the same conclusions.

The results of the consultation with 207 thousand Panamanians for Unimed, including the past 7 and 11 October, realize that 40.5% believe that public education is good or very good, while 25.5% say exactly Otherwise, which added to the 32.9% that qualify as regular shows that the majority of the population does not trust the quality of service you receive. 1.1% of respondents did not know or did not respond.

The consultation also revealed evidence that the group of 18 to 24 years there is a better concept of education provided in public schools, a perception that is also recorded in those groups with family incomes less than $ 541 a month and living in central provinces and rural areas.

As for the possible causes of the poor quality of education, 38.9% of respondents attributed it to question the lack of vocation of educators, followed by a poor educational background (32.2%), outdated programs (21.4% ), lack of students (14.9%), poor condition of infrastructure (9.3%) and lack of parental involvement (8.7%), among others (see table).

AFFECTS DECAY

The respondents placed the lack of parental involvement at number 6 of the 11 options given by the consultants.

In this regard, Alma Montenegro de Fletcher, who was part of the National Council of Education, said the crisis of education in Panama is linked to problems that start in the family structure due to the instability in children and young people created family disintegration.

Montenegro de Fletcher believes that the lack of vocation of teachers increases the problem. Ensures that for some 30 years teaching career has been chosen as a solution to guarantee pensions, resulting in teachers who have no love of teaching and "just want to get away."

These teachers, he stressed, are resisting the changes required to modernize and improve the system.

Toala Nora, dean of the Faculty of Education at the University of Panama, said that the problem of educational quality is the teacher, but in society, which has given many responsibilities the educator. He adds that as the boys no longer have the strong parental supervision, because both work, searching for what interests them, which is fun, and recalled that before the responsibility for education rested primarily on the parents.

THERE ARE GOOD AND BAD

Yaselis Canto, director of the Escuela República de Venezuela, within the system ensures that there are good and bad teachers.

The first group are aware that their role in the classroom goes beyond complying with a work schedule, he said. They guide, counsel, discipline, teach and above all are aware that many students do not have a dad or mom to watch them, because they regularly are by grandparents, aunts or older siblings.

While the others are bad, only concerned about meeting the work plan, he said.

Justo Medrano, vice president academic at the University of Panama, attributes the problem of poor school performance to the "appalling number of distractions that young people" because education is not a trainer, but to reform.

According to Medrano, teachers must first change the habits that bring young people, and then begin to teach them. He also criticized the media, because it ensures that there are very few who plan programs to help improve the training of young people.

EDUCATION

The results showed Unimer poll for this newspaper did not surprise the Minister of Education, Lucy Molinar. On the contrary. He said the results are the product of many factors that together act to the detriment of teaching-learning process within the public sector.

For Molina, the public perception is the result of an activity (education), which was cooled and left to be seen as a tool to become a better person, beyond that it acquires a title or profession.

And, according to the official, is not worth having training, better preparation and a series of academic qualifications, if the path is lost values education and one ceases to be a good person.

CHANGES

The Minister of Education explained that the work currently carried out in MEDUC heads to turn things around and so are aiming to improve the system in a coordinated way. For that, he explained, is necessary to involve all stakeholders in this process.

"We are bound by their parents in the education of their children, worked to highlight the figure of the educator, within and outside the classroom, because this had been frozen," he said. He added that further work to improve the infrastructure of schools, among other things, for changes within the system.

Molinar reiterated that although not surprised by the results of the consultation is very optimistic to be harvested in the future product of work done within the institution.

These will undoubtedly be to the benefit of society at large, said the minister.

FAR FROM THE BEST ON THE WEB

Panamanian education continues to stumble, but this time the trips were among the public and private universities, and a matter of positioning on the web. In a world university rankings, published by the Higher Council for Scientific Research of Spain, which measured the online presence of 12 000 universities in the world, only five of the houses of higher studies in Panama reached a position. But all, far from the top, and there were some, as the Catholic University Santa María La Antigua, that are not listed.

In the ranking, which appeared only six local universities, the University of Panama reached the best position (3.458), while the University of Panama (UP) 4.984 ranked. American University was ranked in the place 7.050, Universidad del Istmo, ranked 9.596 on the list, ranking as the tail of the Laureate International Universities appeared Panama, ranked 10.785, and Columbus University in the post 11.906. The position reached Panamanian universities was discussed by representatives of some institutions, such as Michelangelo Candanedo, general secretary of the UP, who called absurd ranking, because it only relies on the publications that houses the highest study on their web sites.

He added that this year the UP is adjusting your site, because "they had neglected."

For its part, Julieta Guillén, director of advertising at the University America, said to appear in the list, and is good, because they compete with global universities, which have more infrastructure and budget. In fact, the top 10 list is occupied by U.S. universities. The number one is Harvard.

Quiel Dimas, USMA academic vice chancellor, said this ranking does not necessarily measure the academic excellence of the university, but despite this they will investigate how it is done to find out why not come. He clarified that if the weights are in the use of web sites, this year the USMA has two domains, because they are making changes to the existing one.

URANIA CECILIA MOLINA

 

 

Here's who to call if you get screwed by a developer!

My post last week regarding being screwed by a developer last week recevied a lot of comments and garneshed a few  imformative emails from avid readers. Gail Geerling  has worked on a commitee with the American Chamber of Commerce here in Panama to educate buyers on the pitfalls  and help them navigate through them. Here commenst are below. I also recieved an email from Mitch Creekmore of Multinational title insurance. Here are his comments.

"If I have a title policy issued and I go to sell and find out someone has committed fraud against my land title, my recourse is to the title company who issued the policy via a claim and the coverage’s, conditions, stipulations and exceptions under the policy.  Without it, an owner’s recourse is to no one, not even the notario.  Or you can sue the original seller.  In the case of Costa Rica, we created the endorsement so each year we can renew it at the owner’s discretion with payment and check the public registry.  It’ a minimal cost for the peace of mind it gives.  But naturally, the Panamanian agents and attorneys pooh pooh the notion of title insurance and say it’s not needed…., until there’s a problem Sam

Here is Gails suggestions:

It seems as though all is not lost when it comes to getting screwed by a developer here in Panama.  So what do you do when it all goes wrong?

 According to Gail Geerling, whose company helps foreign investors learn how to navigate the system in Panama, “No longer do buyers- foreign or local- have to accept shoddy, sub-standard construction, outrageous clauses in their contracts, or developers who dance rather than deliver.  There is another option.”

 Panamanians love acronyms, so of course we expect they’d use one of the longest to refer to Panama’s consumer protection agency, ACODECO.  Autoridad de Proteccion al Consumidor y Defensa de la Competencia is a public autonomous entity, which means that it actually has some power to carry out its purpose and follow through—unusual in Panama.  It was created in its original form in 1969, and has morphed quite a bit over the years- including at least two name changes and several refinements to the law pertaining to its rights and abilities.  Though the changes have all been positive they are somewhat confusing, so perhaps that’s why few consumers are aware of what ACODECO can do for them.

 Does ACODECO’s claims system work perfectly? 

 “Absolutely not”, says Geerling.  “It is the usual Panamanian process- sometimes full of bureaucracy and frustration.  But after all, we chose to live and invest here, so why not brave the bureaucracy and take advantage of one of the best tools Panama gives its buyers? 

 It’s not for the fainthearted.  There are limitations in the process, and of course most foreigners (especially non-Spanish speakers) will probably want advice and assistance throughout the process.  Yet, many of my colleagues and I have taken clients successfully through the process- resulting in repairs or money from the developer.  By and large- and to no one’s greater surprise than my own- the process actually works!”

ACODECO’s mandate is to Protect and Preserve the Rights of the Consumer, a fairly broad scope of work covering anything from cases of price fraud to false advertising, to honoring product guarantees. 

However, in a speech given by ACODECO’s representative recently at the AmCham Real Estate Forum in Panama City, it was mentioned that nearly 70% of the cases ACODECO are currently handling pertain to the real estate industry. 

“It’s not a great commendation for developers in Panama,” says Geerling,  “but what we find interesting is that these cases are increasing.  People are sick and tired of being taken advantage of, and they’re making a statement: We’re not going to take it any more.”

Restrictions within the process include financial claim limits, and time limitations for making a claim- but options do exist even after those limits have been exceeded.

For more information, email: Gail.Geerling@SuccessInca.com or check out ACODECO’s website at www.acodeco.gob.pa

 

Panama's Presidential Temptation-WSJ

This article from the Wall Street Journal is written more from a right wing perspective but still manages to attack President Martinelli on a personal basis at the end. The main issues the journalist raises with Martinelli are the same ones I have written about in this blog. The promised flat tax was not implimented as promised during his campaign. The minimum wage increase of nearly 30% and the plans for iconic government buildings. In fairness I realize that Martinelli was pressured by the unions on the minimum wage issues and the flat tax plan was not as easy as he thought it wold be to impliment, but this was an important part of his political commitments and he did not come through.

Its market-friendly leader is beguiled by grandiose state projects.

Has Panama's President Ricardo Martinelli put his country on track to be the region's first flat-tax, open and competitive market economy, as he promised? Or is he just another caudillo, out to grow government and his own power?

These questions are being hotly debated these days in Panama City, and the answers matter to more than Panamanians. As a self-proclaimed believer in markets in a region dominated by politicians from the left, Mr. Martinelli now carries the mantle of anti-chavismo. Candidate Martinelli promised to convert his country into a magnet for investment and a place of opportunity for his people. Failure to keep that pledge could damage the cause he stands for well beyond his own borders.

When the U.S.-educated supermarket mogul took office in July 2009, market liberals were ecstatic and the left was groaning. Now there is gnashing of teeth from the right. He told me his side of the story when he was in New York last month for the United Nations General Assembly.

The president began our conversation boasting about the variety of new trade agreements his government has either signed or is in the process of negotiating. Panama has also dropped all import duties ("with the exception of six or seven products negotiated at the World Trade Organization") to 10%. Then, he said, during the general assembly President Obama made him a promise about the U.S.-Panama free trade agreement: "The first thing I did when I was shaking his hand is that I said, 'President Obama, whenever the U.S. is ready, Panama is ready.' And he told me, 'We'll have to get that done after the election.' Then we took a picture and he said 'You can rest assured that we're going to have that after the election.'"

Mr. Martinelli was also eager to talk about his plans to streamline the process of land titling and make it affordable. "We want [homesteaders] to own their property," he said.

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Zina Saunders
On taxes, he said he is making important progress toward his goal of a single rate. He has started by raising the VAT to 7% from 5% and "reducing corporate taxes to 25% from 30% and income taxes for individuals to 15% from 27.5%."

He adds that he has maintained a budget deficit of 1.5%, in part because he has been closing corporate loopholes. As a result of this, if the VAT is moved to 8%, the corporate rate can go to 20%. The goal is to get to a 10% rate across the board, something he says could happen by 2014.

So what's not to like? Try his decision to hike the minimum wage by 30% in key sectors, a truly bizarre move in a country where 40% of the economy is underground. When the government raises the price of labor it exacerbates the problem of informality. It is also creates a drag on foreign investment. Neither can be good for the 30% of Panamanians living in poverty and the 14.4% in extreme poverty, according to World Bank 2008 statistics.

Worse is his rationale for doing it. "Don't you think that [stores selling high-priced goods] could afford to pay a little bit more so that guy can qualify to buy a car or a house? That would spur growth," he reasons. When I point out that it is his opinion that wages were too low, he responds, "That's BS. Sorry."

This exchange reveals what seems to most trouble market liberals about Mr. Martinelli: He has an autocratic manner and a pronounced tendency toward statist grandiosity. Other examples abound. The government will build a skyscraper in the capital to house public offices and create, in his words, "an icon for the city." There is also a planned "governmental city" in the works, where a metro and bus lines will transport throngs of state employees.

Mr. Martinelli says the projects will save the cost of rent and denies he is expanding the government. But almost 5,000 public-sector employees have been added to the payroll in his first year in office, and salaries are up 7.9% in the first seven months of this year according to the national accounting office.

If this keeps up, who cannot imagine that the promise of a 10% flat tax will soon evaporate in the face of a loud clamor for tax increases to pay for deficit spending? At that point there will be regret about not getting rid of the income tax before raising the VAT.

Mr. Martinelli understands the needs of business. But he is also accustomed to being the man in charge, and the pitfalls of allowing government to grow like Topsy seem to elude him. This is worrisome. He wouldn't be the first well-intentioned planner to be brought low by this fatal conceit.