Panama Living Newsletter

Poverty in Panama

Bob Baker writes an excellent article in Latin Business Chronicle about how poverty is measured and how that measure might apply to Panama. I have often defended Panama as not having as many really poor people as other Latin countries I have visited or lived. As Bob Points out, by many standards, those who appear poor are rich in many ways. It all depends on the benchmark. There are certainly areas of poverty by any standard in Panama, and most of it is with the indigenous peoples. Here in the interior we work with a number of private organizations who help with nutrition, education and other pressing issues that are a result of, or attributable to poverty. Even so, by any measure Panama has much fewer people living in poverty,  simply because it has a relatively small population compared to other Latin countries.
Thanks Bob, for a very insightful article.

Occasionally,  income does not provide a true indication of rich and poor and a quality lifestyle can be defined differently.

BY ROBERT E. BAKER

While Panama is experiencing better than 8 percent growth and our future looks brighter than ever,  a  foreign visitor recently lambasted Panama regarding our level of poverty and warned that we had better watch out because 47 percent of our population lives in  poverty. He based this on the low dollar  income of  almost half of our citizens. Furthermore, while espousing his  reactionary values that  eluded both interpretation and prophecy,  he went on to suggest that Hugo Chavez-type, leftist leaders could be  the future result of our 47 percent poverty level.

How to “fit in” when moving to Panama

A recent article on Forbs.com highlights the most expensive gated communities in North America and explains why the rich buy into them. Security is the most common reason given with amenities listed as a close second by those homeowners. I believe the same reasons apply to those not-so-rich buying into less costly gated communities in Latin America as well.

The adversaries to gated communities all over the world claim they are excluding and divisive. Put in the search term “gated community” in Google and you will find thousands of articles devoted to their supposed negative social impacts. As a developer of the first gated community in Panama catering to foreigners, I have had many emails from people making the same arguments. They claim my project stratifies and separates those coming into a new culture and that the new immigrants will never assimilate into the community unless they live among the locals and “fit in”. There is a “them against us” attitude by many foreigners living outside gated communities. I find this amusing because most of the local Panamanians do not take issue with it. The negative attitude is the mindset of those who chose to live outside the gates.

“Where freedom is, that is my country,”

Well, it is the Fourth of July and a time of celebration in the good old U.S.A.. Of course we will be celebrating the holiday here in Panama as well but with a slighltly different point of view. For many transplants to Panama, this holiday is a reminder of what the country used to be about. I recieved the commentary below which is written by Bill Bonnner and he puts into words what I believe many of us feel about our lives in Panama. Bill writes an interesting daily called the Daily Reckoning. You can subscribe free here.

Dear Daily Reckoning Reader

On the Fourth of July, more than anytime of the year, the emphasis is put
strongly on the American patriotic spirit. Perhaps that’s why we were
recently accused of having “lost our sense of home,” as we have dared to
leave our American birthplace to live abroad in Europe.

Because we were “cowardly” enough to leave America, this reader suggests
that we have not only lost our sense of home, but our sense of family,
neighborhood and roots.

To this we reply: How do you think you got to America in the first place?
Was it because your ancestors were too cowardly to stay in Ireland,
Germany, England or Italy? And what about those who leave from India,
China, or France, today, to make their homes in America? Are they cowards,
too? Is that the problem with everyone who doesn’t stay put; does he or
she lack backbone?

Worlds greatest growing city!?!

When looking around the world there are a number of countries experiencing a boom, but none to the extent of Dubai. I sometimes say Panama is the Dubai of Latin America but..... Panama just does not compare to what is going on in the middle east. A good friend sent me a most amazing PowerPoint presentation about what is going on there. They are all pictures worth billions or words.
Upload and enjoy!
Download WorldsGreatestGrowingCity.pps

Plan to enlarge Canal stirs up controversy

The article in USA today gives a clear picture of the risks and rewards of expanding the canal. Having read a great deal about the proposed expansion, I find it is time for me to add my two cents to the many opinions on whether or not it should be undertaken. I know the head of the canal commission, Mr. Alberto Aleman Zubieta, and many of the politicians and businessmen in the country and have heard them all speak in favor of the project. I also read, in both local and international press, a variety of opinions, both for and against it. From what I can discern, it comes down to how you view the world and its future prospects. For the canal project to be economically feasible there must be an increase in the amount of shipping demand through this part of the world, which means that the American consumer must continue to consume at current or higher levels. If the U.S. economy were to stop running on all 8 cylinders demand for all of the Asian market goods would slow down dramatically which would curtail shipping dramatically. My world view falls more in this line, not necessarily that the sky is falling, but that the future world economy is not so bright as the expansion  assumptions present. Even so, as a developer and promoter, I see much positive benefits to the country in just the effort to build it. It is  likened to a great public works project that will employ many people and force the country to educate their workers to a much higher level of skill. The infrastructure needed to support such a project will bring a  lot of additional investment and opportunity. The worst case scenario is that if world trade drops and the expansion stops the costs will be added to the all ready high debt the country has and like most Latin American debts, will go unpaid or forgiven by the first world (who are also highly in debt). The people of Panama will have gained much in the effort and if the pessimists are wrong and the the Americans can continue to consume more and be in debt more, then they will gain as the purveyors forecast. It is like I say about proposed road building in this part of Panama. I would rather they build a road to nowhere in our area than one to somewhere else in the country. Therefore I cast my vote with those promoting the expansion, but not for the same reasons as the current cast of pundits.

Read the article here...

The Panama Boom Takes Off

My friend Bob Bauman reports in his A-letter on the recent conference held here in Panama by the Sovereign Society. I was fortunate to be able to speak at this conference of over 350 attendees, many of which have now invested in Panama.

Dear A-Letter Reader:
As regular readers know, in May we visited Panama for a week for The Sovereign Society's Total Wealth Symposium. Over 350 attendees and speakers gathered to discuss the many and varied attractions of this leading offshore tax haven, less than 3 hours from Miami by air.
In my recent book, Panama Money Secrets, I wrote: "With this unique history and a huge potential for future development, Panama, as it begins its second century, is on the threshold of a new and unequaled period of prosperity and growth. And you can be part of it.

The Bloody and Invisible Hand

Our local historian at Trust services here in Panama, Derek Sambrook, waxes eloquently on history, economics and privacy in Panama in this months Offshore Pilot Quarterly. Be sure to download the PDF and enjoy it!
The Bloody and Invisible Hand
Download offshore_pilot_june_2006..pdf

This day in history

This is April 1st which is also Aprils fools day and a very special day for me. It is the day I had my first date with my wonderful soul mate Thalia, 9 years ago. There were some other happenings on this date which I share with you below.

In 1918, toward the end of World War I, the Royal Air Force was founded. Two months later, Britain began bombing industrial targets in Germany from bases in France.

In 1924, Adolf Hitler was sent to prison for five years after failing in his first effort to take over Germany by force, the unsuccessful 'Beer Hall Putsch' in the German state of Bavaria.

In 1945, U.S. forces swarmed ashore on the Japanese island of Okinawa, to begin what would be one of the longest and bloodiest battles of World War II.

In 1979, Iran declared itself an Islamic Republic.

In 1982, the United States formally transferred control of the Panama Canal Zone to the government of Panama.

Expats love to be involved in their community!

A very important aspect to the large number of retirees moving into an area is their involvement in the local community. With Boquete now 5 years into developing a growing expat community, I am astounded at the number of civic projects they are involved in. They range from veterinarians spaying and neutering animals to raising funds for a local orphanage. There are fund raisers for ambulances and shoes for Indians. Recycling and trash pick up and many more ways to help the community. I have been in Boquete for 8 years now and the volume of help being given to the local community is amazing.

This helps to forge strong relationships between the local population and the expats and it fosters a new cultural change that has been lacking in most Latin communities. It is not that they did not help their fellows in the past but the know how and capacity to give the new settlers bring is what makes the difference. You can sign up to a bulletin board where almost daily you will receive information of this nature. Here are just a few of the headline posts from the last month.

Letter from Panama

My long time friend, Derek Sambrook, writes a monthly e-letter that addresses many economic and political issues in Latin America and Panama specifically. He has graciously allowed me to share this with you here. You can visit his website for more information on Derek and his company "Trust Services".

Download letter_from_panama_january_2006..pdf