…because it may break. In Panama, political tensions and too much public spending designed to speed up development may compromise this brilliant moment for the canal country.
This is a great editorial from Prensa that tells a balanced view of the economy here in Panama.
We have experienced the threat to businesses of political instability first hand several times. As a specific example, we can note that at the end of last year CentralAmericaData organized a trade mission from Canada to Panama, which almost did not happen due to the disturbances generated by the Gnabe Buglé tribe’s opposition to mining and hydro-power development in the region. The Canadian executives busy schedule did not allow them to postpone the trip for a few days, so the mission would have to be rescheduled for almost a year later, affecting the entire programming of industrial production. Finally, the agenda went ahead, albeit with difficulties associated with the situation.
An article in Prensa.com summarizes the views of various market participants, especially the financial market, warning about political stability and weighs against the possible risks of an imbalance in the state’s accounts in investment decisions.
In this regard the article states, “A first indication of these effects could be reduced foreign investment which fell by 15.3% in the first quarter.”
Personally, while I agree with the statement, I believe that a great deal of the reason that the FDI dropped was that few companies will continue to invest here if they cannot hire competent workers and Panama has a near zero unemployment rate right now.
I’m not sure why but this web site is loading incredibly slow for me. Is anyone else having this issue or is it a problem on my end? I’ll check back later on and see if the problem still exists.
The opposition to mining and hydro-power development is wider and deeper in Panama than a few native indians blocking a road.
Every country has people who do not understand where their relatively good standard of living comes from. Generally, these people gather in left wing political parties and in environmental protest groups.
They lash out against people who do the things that generate the good standard of living and responsible development of resources. They try to block every project or plan that provides a better life and better future for people.
They say they are preventing all the rest of us from destroying the world. In fact, they are against businesses that make profits. They let their favorite dictators get away with terrible environmental and human rights crimes while protesting and fighting responsible governments and companies who are trying to make a better world for everyone.
Canada has such mis-guided brain-washed people, so does the USA and Europe. Looks like Panama has some of them too.