{"id":12168,"date":"2014-12-09T13:49:00","date_gmt":"2014-12-09T18:49:00","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=12168"},"modified":"2014-12-09T13:49:00","modified_gmt":"2014-12-09T18:49:00","slug":"panamas-us-envoy-offers-upbeat-economic-outlook-for-2015","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panamas-us-envoy-offers-upbeat-economic-outlook-for-2015\/","title":{"rendered":"Panama\u2019s US envoy offers upbeat economic outlook for 2015"},"content":{"rendered":"

\"revilla\"<\/a><\/p>\n

 <\/p>\n

Emanuel Gonz\u00e1lez-Revilla, Panama\u2019s ambassador to the United States, makes a case for foreign investment in his country during a Dec. 3 presentation at Washington\u2019s Center for Strategic & International Studies.<\/em><\/p>\n

Here is an article that I read that was written by Larry Luxner\/The Tico Times<\/p>\n

WASHINGTON, D.C. \u2013 Panama, host of the VII Summit of the Americas next April, will see its economy grow faster in 2015 than anywhere else in the Western Hemisphere.<\/p>\n

Emanuel Gonz\u00e1lez-Revilla, the country\u2019s new envoy to the United States, said Panama\u2019s gross domestic product is likely to expand by 7 percent next year. That\u2019s higher than the 6 percent growth recorded in 2014 \u2013 but not as impressive as the 8.5 percent growth of 2013.<\/p>\n

In his first public comments since presenting his credentials to U.S. President Barack Obama on Sept. 18, the ambassador praised his own president, Juan Carlos Varela, who took office in July following an election campaign based on four pillars: social inclusion, revitalization of democracy and public institutions, economic development and national security.<\/p>\n

\u201cPresident Varela is committed to doing away with inequality, and wants to create opportunities for all,\u201d said Gonz\u00e1lez-Revilla, speaking Dec. 3 at Washington\u2019s Center for Strategic & International Studies. The panel was moderated by Carl Meacham, director of the Americas program at CSIS, and attended by about 35 government officials, business executives, NGO representatives, journalists and diplomats, including Rom\u00e1n Macaya, Costa Rica\u2019s ambassador to the United States.<\/p>\n

Doing away with inequality is a tall order, given the stark contrasts between the skyscrapers and glitz of Panama City and the rest of the country, where poverty is endemic. Although the IMF pegs Panama\u2019s annual per-capita GDP at a respectable $19,411 \u2013 putting it on par with Uruguay and Turkey \u2013 the World Bank says Panama suffers from one of the worst disparities of wealth in Latin America.<\/p>\n

Accusations of corruption and mismanagement routinely plagued Varela\u2019s predecessor, Roberto Martinelli, which is why \u201cVarela worked diligently towards the end of his term as Martinelli\u2019s vice president to distance himself from the former president\u2019s most fundamental positions,\u201d according to a policy paper issued in September by the Council on Hemispheric Affairs, a Washington think tank.<\/p>\n

This could explain why Gonz\u00e1lez-Revilla made a point of contrasting Varela with the four previous heads of state who have been elected since U.S. Marines invaded Panama in 1989, overthrowing then-dictator Gen. Manuel Noriega.<\/p>\n

\u201cThe president has said many times the government needs to serve the people, not benefit from it,\u201d the ambassador told his CSIS audience. \u201cCorruption will not be tolerated at any level, and will be prosecuted to the full extent of the law. He wants his legacy to be that institutions are not politicized or subject to whoever is in power at the time.\u201d<\/p>\n

He added: \u201cWe need to make sure there is no favoritism when it comes to doing business in Panama. We want complete transparency in every single government bid, because at the end of the day, corruption has a huge negative economic impact.\u201d<\/p>\n

Gonz\u00e1lez-Revilla said that during Varela\u2019s five months in office, he\u2019s launched major initiatives in the areas of sanitation, clean water, low-income housing, health care and, most importantly, education.<\/p>\n

\u201cPresident Varela believes that education is the cornerstone of progress, and the way to fight crime and poverty,\u201d he said. \u201cSpecifically, with Panama being at the center of world trade, it\u2019s extremely important that our people speak English. We\u2019ve had American bases in Panama for 100 years, so people think everyone in Panama speaks English. But that\u2019s not the case.\u201d<\/p>\n

\"revilla<\/a><\/p>\n

Rom\u00e1n Macaya, Costa Rica\u2019s ambassador to the United States, greets his Panamanian colleague in Washington, D.C., Emanuel Gonz\u00e1lez-Revilla, following a presentation Dec. 3 at the Center for Strategic & International Studies.<\/em><\/p>\n<\/figcaption><\/figure>\n

Aiming to have completely bilingual education by 2030, the Varela government has launched a pilot program to send 1,000 teachers to the United States for specialized English-language training. Eventually, 30,000 teachers will participate in the program over the next 15 years.<\/p>\n

\u201cThe embassy is very much involved in coordinating these efforts, since this is being done exclusively with U.S. universities,\u201d he said, noting that 14 schools have signed up so far \u2013 including American University, Georgetown University and the University of Pennsylvania.<\/p>\n

The bilingual Gonz\u00e1lez-Revilla has a bachelor\u2019s degree in finance from UPenn\u2019s Wharton School and a master\u2019s in accounting from the University of Miami. A prominent businessman, he was chairman of Panama Power Holdings Ltd. and Melones Oil Terminal Inc., as well as vice-chairman of Trader Tankers Ltd., before his appointment by Varela as ambassador in Washington.<\/p>\n

He said he was \u201cthrilled\u201d at Panama\u2019s selection by the Organization of American States as host of the next Summit of the Americas. The event, scheduled for Apr. 10-11, has already generated headlines because it\u2019s the first since the series of OAS hemispheric summit meetings began in 1994 in which Cuba has formally been invited to participate.<\/p>\n

\u201cThe timing is very interesting,\u201d said Gonz\u00e1lez-Revilla. \u201cThe region is doing extremely well as a whole, and according to some estimates, by 2020 Latin America will have a $10 trillion economy, with 640 million active consumers.\u201d<\/p>\n

Yet Panama\u2019s own Trade Promotion Agreement with the United States, in effect since October 2012, hasn\u2019t done much for Panama\u2019s 3.9 million inhabitants.<\/p>\n

\u201cWe\u2019re still trying to figure out how to exploit the FTA better. If you look at the numbers, it hasn\u2019t really benefitted Panamanian exports to the United States. It\u2019s more the other way around,\u201d said the ambassador, noting that last year, Panama imported $11 billion worth of goods and services from the U.S., while exports to the U.S. didn\u2019t even total $500 million. \u201cThere\u2019s a huge imbalance.\u201d<\/p>\n

Clearly, he said, the single biggest boost to Panama\u2019s economy will be completion of a $5.3 billion project to widen the 100-year-old Panama Canal. The project, featuring the construction of a third set of locks, will allow the canal to handle post-Panamax ships with a capacity of up to 15,000 containers, instead of the current maximum of 5,000.<\/p>\n

But the project has been plagued by delays, strikes and a bitter dispute over $1.6 billion in cost overruns with the consortium of companies carrying out the upgrade.<\/p>\n

\u201cWe\u2019ve had problems and delays, but it\u2019s about 80 percent completed, and we expect to have it done by the first quarter of 2016. That\u2019ll have a huge impact locally and internationally,\u201d he explained. \u201cWith the expanded canal, we\u2019ll be able to handle 92 percent of the world\u2019s ships. Today\u2019s trading routes will change once the project is finished, and that\u2019s going to have an impact not only in Panama, but here too.\u201d<\/p>\n

The Panama Canal\u2019s added capacity will bring more revenues for infrastructure projects, he said.<\/p>\n

\u201cThere will be increased investments in ports and logistics projects, power generation and renewable energy,\u201d he said. \u201cWith all this growth, there will be huge demand for hotel rooms, so the hospitality industry will grow too.\u201d<\/p>\n

But neighboring Nicaragua\u2019s plan to build a rival 173-mile-long canal could pose unwelcome competition for the Panama Canal. Construction is set to start very soon on a proposed $50 billion canal linking Nicaragua\u2019s Atlantic and Pacific coasts, though the Chinese-funded project is extremely controversial \u2013 with critics saying the canal would be an environmental catastrophe should it ever come to pass.<\/p>\n

Asked about the Nicaraguan project, Gonz\u00e1lez-Revilla said it would have a hard time competing with the well established and highly respected Panama Canal.<\/p>\n

\u201cA canal by itself is not enough,\u201d he replied without criticizing the Chinese venture in Nicaragua in any way. \u201cYou need service infrastructure to compete, and we\u2019ve shown the world we can operate the canal efficiently. As with any business, another canal is competition, and whoever gives the best service will come out ahead. We just need to concentrate on what we\u2019re doing.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  Emanuel Gonz\u00e1lez-Revilla, Panama\u2019s ambassador to the United States, makes a case for foreign investment in his country<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-12168","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nPanama\u2019s US envoy offers upbeat economic outlook for 2015 - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panamas-us-envoy-offers-upbeat-economic-outlook-for-2015\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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