PROTECTED AREAS Preservation Ecology and CHANNEL Human development EXPANDED Varela ... Starting the third

Britain leaves The European Union ISSN 1726-0485 Edición junio ´16 JUNE 2016

Editorial

CHALLENGES OF THE THIRD YEAR OF PRESI- DENT VARELA GOVERN- Content MENT

22. Polítics 58. Ilutrious People HEALTH CONDITIONS OF PRESIDENTIAL Octavio Méndez Pereira CANDIDATES 60. Sports Capsule 27. Panamanian Economy Panama Makes History in Copa America Indice de los precios al consumidor 65. Cultural Capsule 34. World Economy Activities of the month UK votes to leave the European Union

49. Expanded Canal Our sovereign betting

56. Education and poverty A problem that needs support urgently. 06

Invited writer PROTECTED AREAS - PRESERVATION OF ECOL- OGY AND HUMAN DEVEL- OPMENT

Norms Consult of interest Doctrine

-Traffic violations recorded by electronic means & Jurispru- - Restrict immigration dence permits SUBJECTIVE RIGHT - THE INSTITUTION OF LEADERS JUSTICE COMMUNITY OF PEACE, GOVERNED 10 UNDER PRINCIPLES AND CONCILIATION MEDIA- TION 20 Legislación y Economía June 2016

Editorial Challenges of the third year of President Varela government

José Javier Rivera - Attorney

he next July 1 starts the third year in months it will start accusatory penal system in the office of President Varela and indeed provinces of Panama and Colon which will test effec- the financial, economic and reputa- tiveness of the Public Ministr y and the judiciar y in com - tional scenario in the country has bating the different criminal fronts facing the country. changed a lot in the last three months. The recently announced public works (widening of the Americas bridge - Arraiján, fourth bridge over the TIt’s known that both the OECD countries, G20 na- Canal, line three Metro and others) depend on the tions and even some of our tropics have placed confidence generated by the country to international Panama in discriminatory lists considering that financial institutions, as there is a global environment legal, banking and tax structure suffers from mini- deceleration and changes in major world economies. mum spring to avoid a plurality of illegal activities. As if that were not enough, public act of placing a busi- WHAT TO DO ness group in the Clinton list and place a bank in a con- All governments have a wear is directly related to the ex- dition of intervention by Superintendency of Banks, pectations of population concerning campaign prom- has had an impact on consumer confidence and has ises and the effective implementation of government. produced a reduction in the rate of annual growth. In case of the health crisis, public perception is pessi- mistic. The fact thirty killed by H1N1 influenza virus have The only encouraging news these days is the occurred has generated a fear of massive infection and Opening of the Canal Expansion works, but there consequently a claim to have the respective vaccines. is still elucidating claims between the ACP and Amid such uncertainty of the population, irresponsi- GUPC and also set the final cost of this work. bility of the Minister of Health, Dr. Terrientes produced In the case of the new law on Public Procurement, a very pernicious sense of emptiness for these cases. discussion of articles that have been vetted by the executive and restructuring of this law so that it In the case of companies owned by Mr. Abdul Waked, can mean a change in the right direction to improve perception has been that the process hasn’t been 4 business environment with the state is pending . served with the rapidity that its sequel represents and In the field of administration of justice, in coming Superintendency of Banks and the Executive have had Legislación y Economía June 2016

to be directly legal representation in United States ly the Star of Panama. Article ‘To Panama will to attend administrative proceedings before OFAC. vanish opportunities’, says Ricaurte Vasquez) Despite the glaring illegality, and detrimental effect  it has had on producers and those engaged in selling Subsidies are not being given the successful food, businessmen the government has maintained use since aid should be temporary and not per- prices control is affecting perception of a free market manent. They use most of the resources of the economy. It is not sustainable economically or legal- Panama Canal. They are turning us into a pater- ly that through an executive decree maximum prices nalistic society that annihilates the opportuni- product sales and gross margin for other range of ties and discourages work, success and effort. products that have fixed costs and variable costs.  Offered wages have lagged behind economic The Executive Branch doesn’t seem to have growth... they ask you a college degree and of- a spirit body and therefore a direct and per- fer such low wages, a family can achieve a simi- manent management to act locally and in- lar or higher with income subsidies. That doesn’t ternationally in improving country’s image. motivate people to excel, to study... there is We have been subject of an international smear cam- only rewards for business transactions... so the paign and still don’t know what the strategy of action culture is heading for the easy, the mediocre. to mitigate negative effects on our service center rep-  resenting more than 70% of gross domestic product. The issue of education and justice. On one hand, lack of quality education, often can prevent most of In these circumstances of crisis, it’s essential that the new generations of Panamanians respond ad- social, economic and political forces carry out an equately to the challenges of future and condemn in action to project an image of unity and those them to be behind in a social gap that is becom- seeking investment opportunities the country has. ing bigger. Moreover, democracy requires a level of At the same time it’s necessary that the 1 July the Pres- education. We had a previous regimes to a demo- ident define and describe a national plan of action to cratic system, but it demands that people be con- restore confidence in the country and its institutions. sulted not only for the elections, but they become permanent guardians (rule of law). Democracy, un- Those left to end the year 2016 months will be educated, uncultured and without justice, no walks. crucial in terms of negotiating a series of agree- L&E ments to fiscal matters with Colombia, OECD and other nations seeking to implement the recom- mendations of this entity on jurisdictions that erode the tax base of countries industrialized. IT WILL DAWN AND SEE… The recent decision by Great Britain to disassoci- ate the European Economic Union should serve to strengthen multidisciplinary team of defense of fi- nancial services that provides our place and make corrective rationally without foreign impositions.

The media also have a great responsibility in this dif- ficult task of restoring the fundamentals that kept our country as a pillar of macroeconomic stability. We echo here of the considerations set out by Dr. Ricaurte Vasquez, former Finance Minis- ter on the management of economic, social 5 and financial issues in our country. (See dai- Legislación y Economía June 2016 Invited Writer PROTECTED AREAS PRESERVATION OF ECOLOGY AND HUMAN DEVELOPMENT

Maybé Mendieta - Attorney

tional Environmental Authority; opinion that has been ecause of the importance of environ- greeted with “welcome” by Samuel Valdes, director ment to the favorable economic and social develop- of Protected Areas and Wildlife Ministry of Environ- ment of peoples, this time, I wanted to dedicate a few ment, who said that the Management Plan Multiple lines to reflect on those sites created to ensure the Use Area of Donoso be published in a short time, as conservation of biodiversity, while considering the de- well as by environmental associations in the country. velopment of human beings, which is also part of that Regarding the Judgment of May 25, 2016, it should Benvironment. I mean the so-called “Protected Areas”. be mentioned that the administrative act was sub- ject to challenge, Resolution No. AG-0139-2009 of 4 The occasion is propitious precisely because it is March 2009, prior to the submission of the Conten- noteworthy that in recent years, our Leading Corpora- tious Demand Annulment circumscribed to plane tion of Justice, Third Chamber of Administrative, has of the legality of that act, had been the subject of a spoken in favor of the environment and maintenance writ of protection of Constitutional Guarantees same and conservation of natural resources located within wasn’t granted, as seen in the judgment of 18 July national territory, through the Judgment of Decem- 2011 issued by the Plenum of the Supreme Court. ber 23, 2013, by which the status of protected area to Humedal of Panama Bay and most recently the This didn’t prevent the Third Chamber of the Court Judgment of 25 May 2016 returned under the pre- hear the application for annulment, since in the same sentation of Judge Abel Augusto Zamorano , through states that the defendant administrative act violates which the protection of the nature reserve identified the legally established order, as rightly indicated by as “protected area of Donoso”, located in the province the aforementioned decision, especially regarding of Colon, which has about 76 thousand hectares of the possible omission of public consultation or any tropical forests and passes the Mesoamerican Bio- other form of citizen participation as essential for the logical Corridor of the Americas, declared remains by issue of the defendant act element; Of course this, Resolution No. AG-0139-2009 of March 4, 2009, issued which was subject of a thorough analysis and review 6 by the Minister on Issues Related to Environmental of several international legal instruments governing Conservation and General Administrator of the Na- and define the principles, rights and strategies that Legislación y Economía June 2016

“…, this Court as guardian of legality and control of admin- regulatory procedure approved to declare certain area istrative acts issued by public bodies and under the full Protected Area, conducts analyzes and relevant stud- conviction and awareness of importance of the environ- ies that allow you to know the biological, cultural values, ment and environmental concerns of our time, makes an exhortation to (sic) Ministry of Environment to continue its development centers and thus to implement a manage- role to defend belligerently our environment, and adopt ment plan the area, aimed at sustainable development measures that keep a general public interest and for their protection, ensuring compliance with its regulatory obliga- and preservation of natural resources; these principles, tions, so that timely established in clearly and consistently statements emanating from international, who appre- relevant regulations, thus preventing the purpose of deci- ciate the harmony that should exist between nature sions on procedural technical inaccuracies are hindered.” and development, carried out by residents of States. Judgment May 25, 2016 of Third Chamber of the Su- preme Court - Speaker Judge: Abel Augusto Zamorano. Protected areas play a key role for the entire popula- tion, since, in addition to seeking conservation of should govern environmental matters, among which biological and cultural diversity of an area, serve as are the Rio Declaration of 1992 on Environment and watershed protection, which generate water for hu- development, Convention on Biological Diversity of man and industrial consumption, operation Pana- 1992, ratified by Panama by the No. 2 Act of Janu- ma Canal operation of hydroelectric plants located ary 12, 1995 and the Inter-American Strategy for Pro- within the national territory; likewise contribute to motion of Public Participation in Decision-Making climate regulation, soil protection against erosion for Sustainable development made by the Organi- and protect the scenic and landscape values that fa- zation of American States American States (OAS). vor certain recreational and environmental activities.

In Panama, the State has an obligation to conserve Panama has the National System of Protected Areas biological diversity and the environment, in order to (SINAP), created in 1992 with the purpose of strengthen- guarantee the population, live in a healthy and unpol- ing protected areas -Resolution of Board 022-92 issued luted environment, considering promoting sustain- by the National Institute National Renewable Natural Re- able social and economic development and to avoid sources (INRENARE) subsequently Authority Environ- destruction ecosystem, an obligation of constitu- ment (ANAM) and currently, Ministry of Environment, tional order (articles 118 and 119 of the Constitution). made up of national parks, forest reserves, wetlands, landscapes, monuments, water reserves nationwide. The rector and enforcer of environmental policies in our country, among what was then the National Envi- As you can see, these areas are formed by a set of ronmental Authority, -Law today by Law No. 8 of March ecosystems, including, but not limited to lagoons, 25, 2015, Ministry of Environment. This institution mangrove forests, which provide support to the pop- has a Department of Protected Areas and Wildlife, re- ulation and the various groups of migratory birds sponsible for defining, developing and implementing that have their habitat within the territory national; policies and standards for management and conser- thus comprising coastal land, river and marine en- vation of protected areas to ensure the rational use vironments, which have many uses: farming, fish- of natural resources and sustainable development. ing and in some cases to urban development, an The Ministry of Environment within its legal powers (Ar- activity that involves the cutting of mangroves and ticle 66 of Law No. 41 of 1998), holds the declaration of filling of wetlands, processes that have contributed zones or areas of significant natural and cultural value in recent times to destruction of wetlands, account- within national territory and that the importance of this ing importance to the economy and biodiversity. area, decrease in pressure caused by some human activ- ities and the preservation of their wealth and equity val- It is so, we must emphasize that constitutional guaran- ue for citizens inhabitants of the Republic is necessary. tee of living in a healthy and unpolluted environment, wanted to be disrupted on several occasions by the 7 In this regard, the Ministry of Environment, following the civil society itself, requesting before Third Chamber of Legislación y Economía June 2016

the Supreme Court of Justice, illegality of some admin- ties made in those areas susceptible to a shelter, by the istrative acts through which protected areas, areas for State, which is the main objective of a protected area. its national and international importance, as is the Bay of Panama Wetlands, require protection, maintenance In conclusion, while it’s true that it’s a state obliga- and conservation, referring to alleged affectations tion to protect and conserve the environment, it is of interests and rights are declared citizen groups. no less true that to us as part of civil society in the country behooves us, in addition to respecting envi- And here is where it acquires importance designat- ronmental policies and regulations, contribute to the ed by the Third Chamber resolutions as discussed maintenance and conservation of natural resources above, regarding the importance of citizen participa- before, during and after the execution of any activity or tion in sustainable development issues of environ- project of commercial or industrial nature, especially ment (those interested or affected), as contemplated those permitted in an area susceptible of protection. by international legal instruments also highlighting laws and regulations in force in our domestic law pro- In this regard, we hope to have awakened in all of our visions, which include the promotion of citizen par- readers the interest of preserving and conserving our ticipation, limited to the “importance of the issue or environment for present and future generations, tak- environmental problem” which became the approach ing into consideration that there are still protected the subject of analysis by the Board, as the recogni- areas are being violated, as is the case of mangroves tion of a country area as a protected area, determining Chame Bay, who has suffered a decline in terms of the room that this kind of declaration, which implies area, of nearly 2,000 hectares, by Resolution No. AG- compliance with protection policies and environmen- 0462-2013 of July 19, 2013 issued by the National En- tal conservation concerns and benefits to the general vironmental Authority, today, Ministry of Environment. public, making it necessary to receive contributions Finally, we join the call of our Leading Corpora- and contributions of citizens who live in or adjacent to tion of Justice for the various government agen- the area is declared protected, noting that public par- cies that protect this area (ANAM, ARAP, among ticipation, Citizen participation is important for both others), promote and implement policies to ensure public administration and citizens have a knowledge, compliance with conservation regulations and as- further, of the situations which are required to protect sessment environmental impacts, in order to protect and conserve these areas and maintain sustainable the national heritage and the country’s population. management of natural resources and various activi-

“there is only intended to inform the public of public man- agement or know your opinion of adoption, but is an integration mechanism in matters that affect them as citizens and community; a method of awareness and as- sessment of options and decisions that are to be taken; a way to support and monitor the implementation of the decision and its effective implementation; a means for education on a particular topic of general interest or its various affectations; a space for citizens to express their mission and adopt, achieving consensus levels, commit- ment and acceptance; and also achieve the goal of trans- parency in the decisions taken by a government, in a way 8 facilitating development and participatory democracy.” Legislación y Economía June 2016

Fotografía: www.miambiente.gob.pa

We hope to have awakened in all of our readers the interest of preserving and conserving our environment for present and fu- ture generations, taking into con- sideration that there are still pro- tected areas are being violated.

As is the case of the mangroves of Chame Bay, who has suffered a decline in terms of area, of nearly 2,000 hectares, by Reso- lution No. AG-0462-2013 of July 19, 2013 issued by the Author- ity national Environment, today, Ministry of Environment.

9 Legislación y Economía June 2016

Norms of MIGRATORY INTEREST REGULARIZATION

Giovana del C. Miranda Garzola - Attorney On the other side of the coin we have by Resolu- tion No. 13931 of June 8, 2016, published in the Of- ficial Gazette No. 28056- B new requirements tem. for granting Temporary TRAFFIC Resident Permit foreign personnel hired as execu- Thus we have, users for tive companies whose VIOLATIONS filing complaints should functions have abroad. be recorded in the data- base system, provide a RECORDED BY It has been established brief review of allegation, that prior to granting of ELECTRONIC the evidence supporting permit, the parent compa- its assertions that must ny or subsidiary in Pana- upload to system with a ma must have more than ten years of existence, as MEDIA clear view of the place, well as the presentation part front and rear of vehi- of the financial state- cle, license plate number ments for the last two ransit lution doesn’t alter the in case of infringement years and the alien shall receive a salary of FIVE Authority previously established of improperly parked or THOUSAND DOLLARS and Land traffic infractions, but al- parked in places for peo- (US$ 5,000.00) a month Trans- lows complaints submit- ple with disabilities. before the reform when portation ted via the ATTT Electron- salary was THOUSAND DOLLARS (US$ 1,000.00). (ATTT), issued Resolu- ic System. Resolution provides that Ttion AL NO. 220 of 15 it shall come into force Contradictory immigra- June 2016 by which the It has been established within forty (40) days tion policy in our country, procedure for attention, that ATTT ensure a pro- from its promulgation, ie, if you can call it so, and as a reward for maintain- presentation, processing cedure for dealing with which shall take effect on ing a status of illegality and decision offenses are infringements that are 1 August. L&E reward you with a permit recorded by electronic de- recorded by electronic de- resident with minimum vices such as cameras, vices, inspired by the prin- requirements; however, they stiffen the require- video or electronic devic- ciples of speed, economy, ments for those who es, software applications simplicity, efficiency, eq- want to comply with the for mobile and similar de- uity, non-discrimination, law and that really come signs are approved. publicity, neutrality of to invest in the country. L&E 10 treatment and reliable However, referring Reso- electronic security sys- Legislación y Economía June 2016

THE INSTITUTION OF COMMUNITY JUSTICE OF PEACE, GOVERNED UNDER PRINCIPLES OF MEDIATION AND RECONCILIATION

Karen Fábrega - Attorney

he Assembly of Deputies ap- the application of a method of conflict proved Law No. 16 of June resolution to resolve disputes effec- 17, 2016, by which the Com- tively community-based and peaceful munity Justice of Peace coexistence; quickly and efficiently. is created and establishes provisions Community Me- In each township will run a house of com- diationT and Conciliation Service. In ad- munity justice of peace, however, the dition, law modifies reference articles Mayor may create more than one house of Judicial Code, Family Code, Adminis- of community justice by judges based trative Code, Administrative Procedure on level of conflict, population, munici- Act, Criminal Code and Criminal Proce- pal budget or social reality of judges. dure Law 31 of 2010 Horizontal Property The houses of community justice with Law 38 of 2001 on Domestic Violence, the participation of JPs, community me- among other diators, ; in response judicial to competi- facili- tion assumes t a t o r s this new form (sec- of access r e t a r y, to justice. c l e r k , re- Currently, porter), discrepan- com- cies commu- munit y nity charac- policing ter, assume u n i t s the Corregi- and durías of the com- various districts of the country by ordi- munity volunteers. nary courts, which regularly turns into cumbersome and lengthy processes. Community mediator, is a member of The objective of the creation of the ideal community (should take a training Community Justice of Peace, involves course), which will strengthen funda- 11 Legislación y Economía June 2016

mental values of human coexistence, respect, regarding easements, dividing walls and tolerance, freedom and help in finding and pro- fences; collection of common expenses re- moting peaceful coexistence within judges. lating to the Horizontal Property Regime, not exceeding one thousand dollars; pitch- For initial training and ongoing training of es per intruder and eviction; alimony; dis- JPs, a program run by the National Decen- putes installation and technical services; tralization Secretariat, in collaboration with expansion, improvements and damage or the Office of Administration, the Department occupation of the property, among others. of Alternative Dispute Resolution, Attorney General’s Office to design, Judicial School of INTERIM MEASURES AND SANCTIONS the Judiciary, the National Directorate of Al- THAT JUDGES OF PEACE MAY APPLY ternative Methods of judiciary, University of Panama and the National Institute for Wom- The mechanisms that can use justice of en; and it corresponds to ensure that their peace to ensure the outcome of process or development is effective to the National De- safeguarding peace and peaceful coexis- centralization Secretariat and municipalities. tence in the village, consisting of restraining order; temporary suspension of activities and works related to neighborhood con- COMPETITION JUDGES OF PEACE flicts; eviction order or intruder eviction; Bal- lots protection, financial sureties; when the Some of the issues which apprehend knowl- life of the person is at risk given the power edge Justices of Peace are: alteration of to apprehend prevention provided it doesn’t peaceful coexistence, if not violating rights exceed 48 hours; confiscation of property of peaceful protest of citizens; acts against used to commit an offense; among others. the integrity and public safety that don’t constitute crimes; brawls or fights; burning Among sanctions that can be imposed by garbage affecting neighborly relations; un- justices of peace are: verbal, private or pub- pleasant noise and inconvenience; acts that lic reprimand; bonds of peace and good disturb the peaceful enjoyment of property; conduct; community work; fines up to the acts against morality and decency of com- amount of one thousand dollars; repara- munity; conduct of parties or any fun activity tion or compensation for damage caused; issued without municipal permission; verbal commission and suspension of gun permit. attacks that alter peaceful coexistence in the community; acts that occur through de- Protection measures in cases of domes- ception unlawful purposes against another tic violence, are: order alleged aggres- which shall not exceed one thousand dollars sor vacate the premises shared with the and doesn’t constitute aggravated felony; victim; using any security instrument misappropriation and wrongful acts under with receiver on the victim, and by de- the Penal Code and that the amount not ex- fault will order the arrest; among others. ceeding one thousand dollars; among others. PROCEEDINGS BEFORE THE JUDGES OF Similarly, JPs can order the search warrant PEACE to execute only orders judicial authorities to execute decisions or municipal authority. Actions of the justice of peace will begin its In civil and community matters, Justices own initiative, in which you can choose to 12 of Peace hear: cases involving claims not send the case to Community mediator or an exceeding one thousand dollars; issues oral hearing; or at his request, which will be Legislación y Economía June 2016

invited to the counterparty to the process, temporary custody and domestic violence. if you refuse, you will be cited and may re- quest assistance of the National Police. COMMUNITY JUSTICE IN RESERVA- At hearing the parties to conciliation will be TIONS AND COLLECTIVE LAND encouraged and propose alternative solutions to the conflict, Which are not binding. If there For all it is known that in reservations and is no reconciliation, you will hear the parties collective land, have their own procedures, to present their positions and releases, Rele- therefore, this law provides rules on the ap- vant evidence; And then justice of peace elu- plication of community justice; which shall cidate the case. The decision shall be notified be held traditional authorities of reservations personally at the end of hearing and be ap- and their decisions should be respected. In pealed without oral or written form attorney. the Kunas of Madungandi, Wargandi and Puerto Obaldia regions, will be in charge of The decision of appeal corresponds to the Administrative Delegates, which must meet Enforcement and Appeals Commission, com- same requirements as justices of peace have posed of three justices of peace of the clos- the same competition and their decisions may est in his district judges; and may revoke, be appealed to the Minister of Government. modify or confirm the judgment of justice of peace; and these decisions are not ap- The creation of the Justice of Peace, seeks pealable to the administrative jurisdiction. to supplant the figure of night judges and magistrates, who don’t have a trained for ex- RECONCILIATION AND COMMUNITY ercise of charge or the optimal structures in MEDIATION these offices staff. Also, are the officials with highest degree of disciplinary proceedings Community mediation is that people formu- and resolutions challenged before the Ad- late their disputes before a suitable mediator to ministrative Chamber of the Supreme Court seek a consensual solution to their differenc- by the inconsistency of their judgments. es. To reach a consensus, a mediation agree- Currently, Office of Administration has im- ment shall be in writing, which is enforceable plemented several Community Mediation and provides executive merit is made. Failure Centers since 2013, and to be constituted to reach an agreement, knowledge of the dis- will be recognized as authorized by this law. pute shall be submitted to the justice of peace. We can only hope that selection of these Matters that may be submitted to the alter- justices of peace, mediators and concili- native method of conflict resolution are: ators are appointed by established proce- brawls or fights; burning garbage affecting dures, and not a finger, as generally choose neighborly relations; unpleasant noise and various authorities in this country; and that inconvenience; acts that disturb peaceful implementation of this new law is beneficial enjoyment of property; acts against moral- to all citizens who seek a quick, effective ity and decency of the community; conduct and friendly solution to our disputes. L&E of parties or any fun activity issued without municipal permission; verbal attacks that al- ter the peaceful coexistence in the commu- nity; and in general all competition conflict justice of the peace except for the regulation 13 of visits, custody and parenting provisional, Legislación y Economía June 2016 AMENDING REGISTRATION REQUIREMENTS FOR ENVIRONMENTAL AUDITORS

Giovana del C. Miranda G. - Attorney

Ministry of Environment issued Resolution No. meet any of the requirements listed in preced- DM-0340-2016 of June 2, 2016, by which Resolu- ing paragraph must submit certification of hav- tion AG-0398-2004 is modified which establishes ing participated in the process of environmental requirements for registration in the Entity Regis- management, water quality, soil, air, noise, waste ter of Environmental Auditors. and others whose plan it has been approved by the Ministry and that the time sum not less than The same resolution amending Article 1 to insert eighty (80) hours. a paragraph that gives the Director of Environ- Articles 5-A, 7-A are introduced; 7-B and 7-C that mental Protection authority to approve, reject and in its fundamental part state that: sign resolutions and updating registration in the Register of Environmental Auditors. 1. Those who have not been updated within two (2) years be excluded from reg- One of the requirements established, it’s the pre- istration and environmental auditors must sentation of copy of work permit issued by Minis- submit the update request up to fifteen try of Labor and Workforce Development, in case (15) business days prior to expiration. of a foreigner. 2. Officials who work in the Ministry are Another change is that Article 4 dealing with tech- disabled to conduct environmental audits nical team must have a legal entity to register is and plan environmental audit (PAMA), as eliminated; however, similar text article is added well as environmental auditors who tem- porarily provide services for professionals to Article 3 stating that the technical team will be Entity or Network Sector Environmental composed of five professionals registered and Units on audit-related activities environ- updated in registry, condition tested with presen- mental and PAMA. tation of a copy of the resolution of registration 3. Refresher courses and new must be sub- or update. mitted to the Department of Environmen- tal Quality Protection for approval. As for update every two (2) years of environmen- tal auditors, remains as a requirement the obli- gation to submit a copy of resolution approving Finally indicated that applications that are cur- an environmental audit or a compliance program rently pending are governed by the Resolution and management, which don’t comply with this in question, unless the applicant indicates her requirement to stay in the register must submit desire to be applied Resolution AG-0398-2004 a copy of receipt of at least five (5) monitoring what should be done in a maximum period of one reports of environmental impact studies or fit- (1) month. We understand that the period of one ness programs, before it was sufficient to present month, start counting from the entry into force of a certification that it had received an update of Resolution DM-0340-2016 amending the previous forty (40) hours. one. L&E 14 Within this context, it has to those who don’t Legislación y Economía June 2016

COMMISSION FOR AMP DEFINES THE UPGRADING OF TERM CRUISE ENVIRONMENTAL IMPACT STUDIES

Giovana del C. Miranda G. - Attorney

Giovana del C. Miranda G. - Attorney

The Ministry of En- of priority measures In recent days was with cabins can ac- vironment through for restructuring issued Resolution commodate at least Resolution No. DM- the application of No. 106-52-DGMM 700 passengers. 0319-2016 of May environmental im- of 7 June 2016 by 23 created Advisory pact assessment the Directorate Gen- According to what Commission for in the country. L&E eral of Merchant Ma- stated above, the Modernization As- rine, for which the naval inspectors sessment System term cruise for pur- must certify in in- and aims to sup- poses of application spection reports port the Ministry in of tariffs defined by the type and capac- review and adjust- mandatory annual ity of the vessel be- ment of system en- inspections made ing inspected. L&E vironmental impact by the institution. assess- ment as a We have to cruise tool man- ships are those pas- agement, sengers who have through a rooms and recre- conceptual ational areas and proposal are equipped for and a set international travel

15 Legislación y Economía June 2016

REGULARIZACIÓN MIGRATORIA

Giovana del C. Miranda G. - Attorney

National Paz y Salvo issued by the National Director- he Ministry of Public Security issued ate of Revenue and interview and evaluation that will Executive Decree No. 167 of June 3, be submitted to determine whether or not the permit. 2016 which establishes the Migratory Regularization General procedure and In this respect, we should note that these requirements Executive Decree No. 168 which estab- are to be novelty, because with the Melting Pot neither lishes the procedure and requirements for Extraordi- affiliation asked by Social Security Fund or the paz y Tnary Migratory Regularization Process for nationals salvo national requirements that we consider positive the Republic of China who are in irregular immigration and said either step, to request provisional permit, ex- status in Panama. tension or permanent permit under any other immigra- tion category, must provide two documents. The issuance of both decrees and unpleasantness caused stir among citizens, since it is considered that EXECUTIVE DECREE 168 are nothing but continuation of the famous migratory regularization fairs called melting pot that were cre- It establishes a special procedure for nationals of the ated by the past government. People’s Republic of China who have several years of living in Panama and in irregular immigration status; EXECUTIVE DECREE 167 however one may benefit those Chinese citizens who have arrived in the country before January 1, 2016. Decree provides that procedure is in the process to eli- gible aliens through which it will be granted a tempo- Among requirements are that the person required to rary residence permit for a period of two (2) years and be responsible foreign financial solvency shall haven’t after this period may request a renewal. less than a THOUSAND DOLLARS (B/.1,000.00) month- ly income and when there are dependent HUNDRED They may avail themselves, foreigners have one (1) DOLLARS (B/.100.00) for each additional one. year or longer stay in the country at the moment is enacted Decree, whether they have left the country as Likewise, it will be granted a provisional license per- long as it is not for a period of thirty (30) consecutive mission within two (2) years and after this time you days or fractionated. can apply for permanent residence permits. With Executive Decrees 167 and 168 of June 3, 2016, On the other hand, we have National Immigration Ser- the current administration gives continuity to regula- vice shall determine at the end of each year maximum tion initiated by the Melting Pot fairs in detriment of number of foreigners who can benefit from this pro- foreigners who meet the requirements and that since cedure. his arrival in the country have tried to have a regular immigration status, who are imposed obstacles and Among requirements, are among others the presenta- barriers at the discretion of officials and irregular mi- 16 tion of affiliation to the Social Security Fund and/or gration is encouraged. L&E Legislación y Economía June 2016

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17 Legislación y Economía June 2016

OPPORTUNITIES FOR MATCHING PEOPLE WITH DISABILITIES

Giovana del C. Miranda G. - Attorney

y Law 42 of August 27, From reading the explanatory memoran- 2007 equalization of op- dum it shows that “changes are designed portunities for persons to amend shortcomings detected through with disabilities is estab- the years with implementation of law 42 of lished and that it was regu- 1999, and at the same time, bring it. with lated by Executive Decree the latest instruments protecting human No.B 88 of November 12, 2002. rights of persons with disabilities and their families, so that meets current needs of this The reference standard provides general population sector and our social context. “ framework for creating conditions that al- From this point, we have declared social low people with disabilities, access and interest the guarantee and ensure the ef- full integration into society. with regard fective exercise of the rights, duties and to benefits and social services it’s regu- fundamental freedoms of persons with lated; health, empowerment and comprehensive rehabilitation; ac- cess to education; access to culture, sports, training and the community; access to the physical environment and transportation; right to work; criminal procedural rules applicable to persons with disabilities; proce- dures and administrative sanctions.

On May 31, 2016, the National As- sembly passed Law 15 amending and introduces a plural number of articles of Law 42 of 2007 that among other reasons arose from the need to update our framework law in field of disability, in such a way that it responds to new con- cept and paradigm of care for people with disabilities, which aims as a disabilities and their families through fundamental principle the recognition of measures of inclusion and integration, af- human dignity and individual autonomy. firmative action and adjustments reason- 18 able, equal and quality of life by eliminat- Legislación y Economía June 2016

ing all forms of discrimination on grounds of employees must have in their workforce a mini- disability, in accordance with the Constitution mum of a disabled worker, before the reform com- of the Republic of Panama and other regula- pulsory started from the account workers, that tions that protect the rights of this population. is, It makes broader application of the standard. It also declares of social interest, assistance In this vein, a jurisdiction in favor of the per- and protection for exercise of personality and son with disabilities, parents, guardian or le- legal capacity of other people with disabili- gal representative of disabled person can’t ties on an equal basis as other people, in ac- be fired or demoted in position or salary is cordance with Law 25 of 2007; guarantee- created, unless the employer attesting to ad- ing assistance to people with disabilities vance a cause established by law warranting who present a profound decrease of its pow- termination of the employment relationship. ers, in order to exercise actions and get- ting the right capacity and legal personality. The standard doesn’t establish precisely the procedure, but reading it leads us to consider Another thing to mention is the fact that that in case of private sector, must request people with disabilities who pursue higher permission before the labor courts, which education in state institutions receive an ex- is why, we say that a jurisdiction is estab- emption of 50% on the cost of tuition, simi- lished, it’s not only the benefit of the disabled larly, the State shall ensure that access to person but extends to parents or guardians. higher education, training professional and learning throughout life on equal terms. Another reform rests on taxable income, as It has been added to Law 42 a chapter that regu- State recognizes employer to provide supported lates matters relating to access to information employment and adapt the working place ac- and communication, indicating that National cording to the criteria of universal accessibil- Secretariat for Disabilities coordinate with other ity, double the salary earned by the disabled institutions and the private sector for people with person up to six (6) months in each fiscal pe- disabilities have the aid necessary for access riod as taxable income deductible expense. to technology and the necessary equipment. With regard to the fines to be imposed for non- compliance, have increased them since ranging Indicates the rule that companies pro- from B/.1,000.00 to B/.5,000.00 and before the re- vide, lend or provide telecommunica- form were of B/.50.00 to B/.1,000.00 and in case tions services must guarantee to all per- of recidivism will be of B/.5,000.00 to B/.10,000.00 sons with disabilities access to equipment, and before were among B/.100.00 to B/.5,000.00. telephone equipment and attachments. On the other hand, public, private and public Within this context, the fine for obstructing use infoplazas libraries must have support ser- or park instead designated for exclusive use vices, including personnel, equipment, furniture of persons with disabilities shall be B/.300.00 and appropriate language to allow can be ef- and the media fine for promotion or approach fectively used by all persons with disabilities. the subject of contrary disability acts defined Regarding the issue of employment rights, Article in the law will be of B/.500.00 to B/.10,000.00. 41 is restructured and a paragraph which states Finally, it states that tariff exemptions for that reintegration of disabled workers injured in import of vehicles, can only be obtained ev- industrial accidents must be equitably in accor- ery five years, unless there are reasons of dance with provisions of the code is entered Work. force majeure or fortuitous event requir- ing change the vehicle before time. L&E An important change is that it has been estab- 19 lished that companies have twenty-five to fifty Legislación y Economía June 2016

Consult Doctrine and JURISPRUDENCE

SUBJECTIVE RIGHT LEADERS

Luis Carlos Ortega - Attorney

In the discipline of human rights there are dimensions that sometimes few lawyers and legal professionals can identify or display because of the tenuous effort to feel the reality of things, however, one becomes part of called subjective rights human being.

This concept encompasses a diverse category of rights conferred on individuals as they grow such as: the right to make a decision or to choose the kind of job you want. 20 Legislación y Economía June 2016

n a few terms we refer to the right of try and appeals to the authorities to legalize each person to choose a dignified and seri- and regulate their immigration status in the ous work that meets your needs and allow country, and seen that way, the Executive them to decide where to live, conduct busi- Branch has created powers for immigrants Iness or even more in just a career that gives can apply to a category that allows them to you the opportunity to achieve their goals reside in the territory of our republic tem- in this ever-changing society as it is today. porarily for the space of two (2) years. And here’s the uncertainty of the various profes- In the same vein, the great Greek philoso- sional associations due to fear infusing to pher named Plato us extends the concept imagine that foreigners rob their places of of “another dimension” watching from his work, and that hinder the entry of an alien work The Republic in which projects the with talent and intellectual resources neces- phrase: -a individual is no individual without sary to contribute to the social economy and a role in society. That sentence is accen- cultural development of a country is a be- tuated his own work The caveman, which trayal of its own Constitution. Therefore, in form an epistemological emphasizes the response to such reactions we recommend it importance of identifying the value of our is; initiate a plan for the protection of talents, reason and consciousness to an outdoor ideas and inventions in Panama and Pana- stage shaped by disappointment. Against ma, advocating for the proper regulation of an atmosphere in which Plato promotes foreigners entering the country and so in this the individual’s responsibility to identify way will seek peaceful coexistence between the talent he possesses and exploit their individuals of different nationalities. Other- different characteristics to those results wise, we will continue consuming the prod- promote economic, social and political ele- uct of manipulation led by political manag- ments of a society, a country, a continent. ers who govern us today, and foreigners are clear about their sense of conscience and Take for example the methods that enabled reason as described by Plato, you will be able countless people to achieve identify this “oth- to snatch clean hands squares work of many er dimension” analyzing the right steps that Panamanians survive with the aim of caus- led to success, and we must take into consid- ing a fracture to the Panamanian economy. eration that since these are subject to what we call-leaders of subjective- right to take its And to finish our article, we have the humble decision, the circulation of all commercial or opinion that is correct fair competition be- commercial business whatever nature, were tween the Panamanian and foreign human widely individuals advised by experts such resources in order to enrich cultural, social as: publicists, designers, accountants, law- and professional sector of this great nation yers, etc. Such is the case of the great cham- as the collective interest of all those who co- pion of all time, Muhammad Ali who was de- habit in this territory is development of trade clared conscientious objector for his great through the work of different disciplines in struggle against American nationalism. order to achieve a stable and sustainable economy that allows solved scientific, social But today demographics of the people of and cultural projects benefiting Panama. L&E Panama has been amplified due to constant 21 foreign human resources entering the coun- Legislación y Economía June 2016

Politics Rafael Fernández Lara - Independent lawyer HEALTH CONDITIONS OF PRESIDENTIAL CANDIDATES

The state of health of the rulers before, ness and difficulties that had crossed. during , and even after exercising their public duties , has always been a topic Others had an illness before perform- of general interest. ing the job, but in doing so they are accentuated by enormous responsi- bilities emanating from exercise of power, with commitments intemper- he state of health of the rulers ate post, which is harmful to health. before, during, and even after exercising their public duties, The sufferings of all kinds who have toler- has always been a topic of ated the leaders generally range from sub- general interest. It has also ordination to alcohol, anxiety, bipolar dis- Tbeen a common rule that the performance order, depression, psychiatric disorders of power, only the function of presid- to heart failure, among others. Only in our ing, often take its toll and often difficult. country, several presidents died during the performance of their duties, many as a Many Heads of State and Government of result of a heart attack, as President Jose known ailments suffered before assuming Domingo de Obaldia, who in the second their prominent positions and hid while year of its mandate perished of a heart at- 22 exercising the duties of their mandates. tack 1 May 1910, at the age of 65 years. Only years after knowledge of severe ill- Legislación y Economía June 2016

Another was president Dr. Ramón Maximil- Argentine president Fernando De La Rua, iano Valdés Arce, who is also at second year Nestor Carlos Kirchner, Carlos Saul Menem, in office of his presidential term expired at received different medical treatments as age of 50 of a heart attack on June 3, 1918. they played as presidents of the Republic.

In addition, Dr. Juan Demóstenes Arose- In 2010, Kirchner’s health is seriously weak- mena Barreati, the 18th president of Pana- ened. In February it was operated carotid ma, died in Penonomé of a heart attack in and in September underwent angioplasty, the early morning hours, at 63 years of age, where placed a stent. Doctors suggest- after three years of playing the presidency ed he change his lifestyle due to stress. of the Republic, the December 16, 1939. After a few weeks of rest, he returned to politics and died on October 27, 2010 at President Domingo Diaz Arosemena ruled age 60, of a non-traumatic cardiac arrest. only nine months and twenty-seven days and died on August 23, 1949, taking 74 years. Juan Domingo Peron, with extremely poor health, took his third presidency in Octo- These four leaders, who were elected ber 1973 and died on July 1, 1974, at 78 democratically in our republic, suffered years of age, acute myocardial infarction. ill health that caused their deaths during presidential duties. Given this, we wonder if Roque Saenz Pena, president of Argen- they or their intimates, or the country, were tina, died at 63 years old on August 9, aware of the impairment to their health. 1914, before finishing his term as presi- dent of the country, as a corollary of a Simply evoke our president, Dr. Manuel neurological condition, that comments Amador Guerrero, whose possibility of of the time linked it to a allegedly con- seeking reelection was rumored at the tracted syphilis during war of the Pacific time and missing one (1) year to com- between Chile and Peru, which partici- plete his term went abroad and became pated as a volunteer on the Peruvian side. a general and meticulous examination, where he was diagnosed that was prey French President Francois Mitterrand, to an invincible disease, sarcoma, also in- whose presidency 14 years has been forming you that “would not live another the longest in the country, hid his real two years”. Indeed, this happened, died state of health. He suffered from pros- on May 2, 1909 at the age of 75, a year tate cancer and had a huge obsession after he left the presidency of the nation. to hide his condition. In his international trips he was accompanied by his medi- But if we go into politics of other nations, cal team and hid any evidence, without just teach us that the role of public perfor- a trace in the hotel rooms that could be mance tends to take its toll and sometimes suspected that the president was ill. He serious and serious manner. There were died on 8 January 1996 prostate cancer. many cases of presidents, rulers, dictators, who suffered from various ailments that The four-time President of the United kept under secrecy to avoid weakening States, Democrat, Franklin Delano Roo- their power and their political project and sevelt contracted polio at age 39. How- we consulted texts reveal and confirm the ever, it is noteworthy that all photographs details of this reality for public knowledge. held him in very few appear in wheelchair. 23 When was your first full medical examina- Legislación y Economía June 2016

tion, at the suggestion of his daughter in vestigation reported that JFK used co- 1944, eleven years after the presidency, caine during a visit to Las Vegas in 1960 he was diagnosed dysfunction and heart and experimented with other drugs. failure, acute bronchitis, hypertension. He died on April 12, 1945 without see- Former president, Richard M. Nixon, also ing World War II ended without reaching suffered from depression and paranoia. an agreement with Stalin and his death According to an anecdote, “British Prime was attributed to a massive brain hemor- Minister Edward Heath, Nixon wanted rhage; also he had cancer. Nevertheless, to talk to about the situation in the Mid- history remembers him as one of the top dle East. After a few minutes, Kissinger leaders of the United States of America. turned and said: “When I spoke with the president, he was drunk.” Nixon also When referring to the recalled British had a habit of drink liquor and some- Prime Minister Winston Leonard Spen- times made phone calls in middle of the cer Churchill, whom Hitler, who was a night drunk. It was said that his closest teetotaler, called “drunk”, from his youth advisers referred to him as “our drunk.” was prone to depression. He suffered all his life from many ups and downs. The picturesque Russian President Boris His mood was so variable and its fond- Yeltsin, was also very fond of alcoholic ness for drink was awesome. Daily con- beverages. In August 1994, in Berlin at a sumed large quantities of liquor, whis- ceremony to celebrate departure of last key, brandy and champagne. He died Russian soldiers, Yeltsin snatched from on January 24, 1965 at 90 years old. his hand the conductor’s baton, and be- gan to direct the Police Band of the city, John Fitzgerald Kennedy, the first Catho- then sing a song Russian. On another oc- lic President of the United States, hid the casion he couldn’t get down the stairs of electorate who suffered from Addison’s an airplane because he was totally drunk, disease (an insufficiency of the adrenal despite all the Irish government was glands). When he was diagnosed in 1947, gathered to greet him. His poor health he was given a year to live until he was was a result in part of his alcoholism. In treated medically. He was treated with 1996, a few months before implanting steroids and testosterone, which shot five heart bypass, was at a concert in sexual desire. He according confessed Rostov dancing on the stage with Rus- to the first, Harold McMillan, British min- sian dancers. Boris Yeltsin had five heart ister he needed to have sex every day attacks while serving his high position to face their headaches. He had back and died in Moscow of a multiple con- problems throughout his life, but not gestive heart failure, the April 23, 2007. as a result of a war wound, but as a re- sult of an automobile accident in 1938. Adolf Hitler responsible for the WWII, suf- fered from paranoia, schizophrenia, oe- The history of this President Kennedy dipal tendencies, hysteria, sifilofobia, a was well known for the romance he had fear of contamination of blood and was with famous actresses. Doctors said neurotic. His personal physician, Dr. Gil- that patients with Addison’s disease, a lort Morell, every day injected morphine, high percentage are prone to psychiat- vitamin compounds, caffeine, milk en- 24 ric abnormalities, depression, apathy, zymes, glucose, and had Parkinson. He irritability and anxiety. A journalistic in- suffered from hypochondria and insom- Legislación y Economía June 2016

nia and at the end of war took cocaine. Prime Minister of Barbados, David Thomp- It was said that there was evidence that son, died on October 23, 2010 at age 48 the ruthless and sadistic Chinese leader after suffering from pancreatic cancer. Mao Zedong suffered from mental illness. Sometimes months spent in the “sick George Pompidou, French president, died with worry” bed. He contracted malaria in on April 2, 1974 of a rare form of cancer the seventies. He had cardiac difficulties called “macroglobulinemia Waldenstron”. and became Lou Gehrig’s disease, a de- His death shook the people. According to generative neuromuscular disease type, his doctor, Dr. Jean Bernard, Pompidou had also suffering from bipolar disorders. been diagnosed with the disease since 1968.

According to the Lancet, in the case of The US president, Ronald Reagan, was op- Eva Peron, former first lady Argentina, erated in 1985 by cancerous polyps in the she and the population unaware that hys- colon. Three days later he returned to the terectomy who underwent the American presidential activities. During his govern- oncologist, Dr. George Pack, in secret ment he suffered oversights information in 1951 was cancer. also said he feared and sometimes mistook the name of coun- that the notice could disfavor the regime tries and public places; according to some, and the Peron family wouldn’t affect the possibly already it showed the character- wife of President Peron with an added istics of Alzheimer’s in his second term charge. Hide the disease was an almost (1985-1989). In 1994 he announced he had obligatory option, according to another been diagnosed with the disease, of which version in the newspaper La Nacion, be- he died 10 years later at the age of 93 years. cause Eva Peron was a passionate wom- an and wasn’t predisposed to do medical The president of El Salvador, Francisco Guill- checks with perseverance ladies today. ermo Flores Perez, died on January 30, 2016 at 56 years of age by an arterial blockage. Generalissimo Francisco Franco Baha- monde, suffered from diabetes since According to the magazine, Free Thinker, 1963, Parkinson’s disease since 1964 and General Omar Torrijos could be very de- also suffered from acute renal failure, pressed, with an absorbent personality. acute digestive ulcer and bronchopneu- monia. He died on November 20, 1975. The president of Argentina, Cristina Fernandez de Kirchner, was operated on for thyroid can- Soviet leader Joseph Stalin was para- cer. According to the journalist, Nestor Cas- noid and Lenin seized power while tro, the president is bipolar and suffers from he was in a coma and his condi- psychiatric nature neurological disorders. tion was declared a state secret. President of Panama, Ricardo Matinelli The current president of Colombia, Juan Berrocal, is said to have bipolar disorder. Manuel Santos, was involved in a be- nign lesion in the prostate. A Luiz Iná- This compendium of health status, physi- cio Lula da Silva, Hugo Rafael Chavez, cal, mental, illnesses and diseases that have Dilma Rousseff and Fernando Lugo had to play the political leadership, based of Paraguay were detected cancer. on known true case and know there will be 25 many other capabilities that we will never Legislación y Economía June 2016

know for having kept secret and hidden before the public, causes reasonable questions about where to draw the line between the right to privacy with the lead- ers as people, against the right to have citizens know and understand the condi- tions suffered by our rulers, whose deci- sions before, during and after their man- dates affect future of millions of people. It must provide that candidates for presi- dency and vice presidency are subjected to comprehensive and complete medical ex- aminations before and during the exercise of his constitutional term of governing the country. That is, applicants must be in good health in the broadest sense of the word.

Must be in optimal control of their physi- cal and mental faculties, with humanly normal conditions to fulfill their duties and obligations to govern, they are certified by a duly authorized medical board. All this should be because many times the clini- cal history of would govern only the knowl- edge of the inner circle of the patient and the future rulers cease to be ordinary citi- zens since then become leaders who have the power to take responsibility and make decisions that will affect many people.

It’s then ask whether the voters should know the health condition of our future rulers or should prevail their right to pri- vacy. Do you agree with that legislating on this issue, which would require the com- ing presidents to submit a certification of their health status would be declaring their physical or mental disability, testi- fying that must be issued by a medical commission to safeguard the national interest and establishing it as a funda- mental requirement in our Constitution to be President or Vice President? L&E

26 Legislación y Economía June 2016

Economy

Source: CGRP

CONSUMER’S P R I C E INDEX PANAMANIAN

n May compared to April, four of 0.006 percentage points respectively. twelve groups that make up CPI Transportation group, class with the greatest National Urban basket recorded impact is “Fuels and lubricants for personal increases, five had decreases and transport equipment” by 5.6 percent, the in- three showed no variation. crease in price of fuel for cars. In the Real group Groups with positive and affected and various services, positive variation of the more significantly CPI changes were: Transport class “Other appliances, articles and products 1.3 percent, with an impact of 0.210 percent- for personal care” 0.3 percent, the increase in age points; Miscellaneous goods and services the price of other products for personal care 0.2 percent, with an impact of 0.019 percentage stands. points; Housing, water, electricity and gas and The group Housing, water, electricity and gas, RestaurantsI and hotels, both with an increase had positive change and classes that most af- of 0.1 percent and an incidence of 0.008 and fect this variation is “Gas” with 1.6 percent, rise 27 Legislación y Economía June 2016

in the price of gas tank of 100 pounds, and class “other services related to housing nei” with 0.8 percent due to increase in price of quota management. In restaurants and hotels group, positive price variation and class with the highest inci- Information Processing” with 0.1 percent dence observed it is “Restaurants, cafes and classes. similar establishments” with 0.2 percent, in- In the clothing and footwear group a reduc- crease in price of food and non-alcoholic bev- tion of 0.1 percent in “Clothing” and “Shoes erages outside home. and other footwear” recorded classes. The The groups recorded declines in the CPI decline recorded in alcoholic beverages

Decrease in food and non-alcoholic drinks group, is

due to the low recorded in “Fish” class 2.8 percent; . index variation result “Carne” 0.1 percent, reduction in prices of beef, pork Urban , so the total of the effects given as given Urban , so the total of effects group to the total variation of the National Index to the total variation group

and chicken and class “Fruits” 0.4 percent. to the contribution of each Incidence : Corresponds

were: Food and non-alcoholic beverages 0.1 and snuff, is mainly due to the class “distilled” percent; Communications 0.3 percent; Rec- with 3.2 percent due to the decrease in price reation and culture 0.1 percent; Clothing and of seco. footwear 0.1 percent, and alcoholic beverages and snuff 0.5 percent. Finally, Furniture, household items and rou- Decrease in food and non-alcoholic drinks tine household maintenance; Health and Ed- group, is due to the low recorded in “Fish” ucation, remain unchanged. Comparing the class 2.8 percent; “Carne” 0.1 percent, reduc- National Urban CPI in May 2016, with its simi- tion in prices of beef, pork and chicken and lar of 2015, the following increases shown: class “Fruits” 0.4 percent. Restaurants and hotels 4.1 percent; Health Declining prices in the Communications 3.9 percent; Education 2.8 percent; Miscella- group was influenced by low class “Telephone neous goods and services 2.5 percent; Alco- equipment” 2.2 percent, decline in price of holic beverages and snuff 2.4 percent; Food mobile phones. and non-alcoholic beverages 1.9 percent; Fur- The Recreation and Culture group recorded niture, household items and routine house- 28 a decline in “Vacation Packages” with 1.1 hold maintenance 1.4 percent; and Communi- percent and “Visual Equipment, Photo and cations 0.3 percent. L&E Legislación y Economía June 2016

MONTHLY ECONOMIC INDICATORS: JANUARY-APRIL 2015-16 COMMENTS

onthly economic indicators showed favorable melon, other seafood, raw sugar and coffee; and performance in production activities related to also, daily average of overnight stays in hotels domestic demand in the country for January- in the city of Panama and passengers entering April 2016 compared with their counterparts in the country residing abroad. declines in exports M2015 were: slaughter of pigs, production of evap- of petroleum products, banana, melon, pine- orated, condensed and powdered milk, and pas- apple, shrimp, fresh fish and fish fillet (fresh, teurized; thermal, wind and solar power genera- chilled and frozen), fish meal and oil, coffee, tion, electricity and water billing in the Republic. clothing and beef cattle were reported; also in negative rates were observed in cattle slaughter, toll revenue, net tons and the volume of cargo production of raw milk used for the production transported by Panama Canal and movement of of by-products and hydro electricity generation. cargo through National Port System.

Indicators related to the rest of the world, pre- sented positive sign, weight exported: water-

1. Manufacturing 2. Electricity and Industries: water:

Increase was re- natural milk used a. Electricity supply: The percent government and corded in slaugh- for the manufac- national supply of elec- industry at 2.1 percent. ter of pigs 10.9 ture of products tricity rose by 9.5 percent, c. Water: billing of drink- percent, as in pro- 3.0 percent, toma- driven by gross electric- ing water in the Republic duction of goose- to by 6.5 percent, ity generation by 12.5 increased by 3.4 percent, bumps at 7.5 per- alcoholic beverag- percent, as well as for corresponding to the fol- cent, evaporated, es 6.4 percent and its components: thermal lowing sectors: trade by condensed and soft drinks by 1.8 at 26.1 percent, wind at 5.1 percent and 3.7 per- powdered 14.5 percent . 356.6 percent and plot cent residential; however, percent milk, pas- in 8094.9 percent. Mean- it reduced government teurized milk 3.7 while, the hydraulic de- sector 1.0 percent and in- percent, salt 5.0 creased by 18.5 percent. dustry at 0.3 percent. percent and al- b. Electricity destination: cohol rectified at The fate of energy offered, 30.4 percent. neg- recorded increase in con- ative rates were sumption billed at 6.0 observed: cattle percent and mainly resi- slaughter 8.6 per- dential 11.6 percent, trad- 29 cent, production: ing at 6.1 percent, 11.3 Legislación y Economía June 2016

3. Construction 4. Domestic trade:

Value of permits for observed in the dis- a. Sale of fuel for domes- hicular single record (as- construction, ad- trict of San Miguelito tic consumption: The sociated with the number ditions and repairs in Arraiján 74.9 per- sale of fuel for domestic of cars sold in the period recorded a positive cent and 6.1 percent. consumption period in indicator) increased by change of 0.1 per- Ready-mix concrete question, increased by 12.6 percent; the most cent, excelling in production fell by 27.7 9.6 percent, reflecting an important segments were residential construc- percent and gray ce- increase in gasoline of SUVs (Sports Utility Ve- tion 25.5 percent; by ment at 9.5 percent. 9.6 percent, excelling the hicle) at 21.3 percent, 0.2 contrast, non-resi- 91 octane gasoline by 2.3 percent minivans, pickups dential construction percent and 95 octane 34.0 percent, 4.1 percent decreased by 18.8 16.8 percent, bunker C trucks and buses by 29.0 percent. Regionally, was higher at 47.9 per- percent. the most prominent cent and liquefied petro- districts were: Colon leum gas by 2.9 percent. with increased 391.6 percent and 1.9 per- b. Registered cars: cent in Panama. By The number of registered contrast, low was cars during the month ve-

5. Foreign trade:

a. CIF value of imports 40.5 percent, shrimp 3.8 goods: The weight of ex- cent clothing, cattle stand- of goods: The CIF (cost, percent, fish and fish fillet ports of goods grew by 3.2 ing 60.2 percent and hides freight and insurance) val- (fresh, chilled and frozen) percent; areas with growth and skins 28.0 percent. ue of imports of goods re- 17.0 percent, flour and fish were: watermelon at 3.1 corded a negative variation oil 47.3 percent, clothing percent, other seafood d. Colon Free Zone: The of 8.4 percent, mainly by 18.2 percent, beef cattle 556.4 percent, raw sugar value of commercial ac- intermediate goods by 16.4 33.9 percent, live cattle 161.1 percent and 10.1 tivity in Colon Free Zone percent, consumer goods 7.6 percent and, hides percent coffee. Moreover, decreased by 22.9 per- by 6.8 percent and capi- and skins 56.3 percent; poor performance was re- cent; in turn, imports 22.0 tal goods by 2.9 percent. on the contrary, positive corded in: petroleum prod- percent and re-exports variations in petroleum ucts 72.3 percent, banan- by 23.8 percent. Mean- b. FOB value of exports of products 12.8 percent, 4.2 as 5.5 percent, melon 25.4 while, the weight of com- goods: FOB value (goods percent watermelon, other percent, pineapple 38.1 mercial activity recorded on board) of exports fell seafood and 77.8 percent percent, shrimp 8.4 per- negative change of 15.7 by 12.6 percent and items were observed unrefined cent, fresh fish, fish fillet percent; respectively, im- that more fell were: ba- sugar 160.2 percent. (fresh, chilled and frozen ) ports 20.3 percent and 30 nana 4.8 percent, melon 17.9 percent, flour and fish re-exports by 10.7 percent. 28.2 percent, pineapple c. Weight of exports of oil 52.4 percent, 14.5 per- Legislación y Economía June 2016

6. Hotels and 7. Transport: passenger entry: a. Hotels: The hotel penses: input entry of The Panama Canal in- 19.1 percent, mainly business in the city visitors grew by 5.3 dicators recorded neg- bulk cargo by 20.5 of Panama presented percent, helped by ative variation of toll percent, containerized positive variation in the increased influx of revenue by 2.2 percent, 18.2 percent and con- number of housing hikers in 7.3 percent net tons at 2.8 percent tainers in TEUs (20- units by 0.5 percent and tourists by 2.1 and volume of cargo foot container) 14.3 and average daily percent, while passen- transported by 14.2 percent; however gen- overnight stays at 15.3 gers arriving on cruise percent. In turn, transit eral cargo grew by 5.7 percent; however, av- down in 24.6 percent. of ships through Pana- percent. erage daily rooms oc- The visitor spending ma Canal declined by cupied by 9.7 percent increased by 4.7 per- 3.8 percent. and occupancy rate at cent. 10.1 percent declined. Cargo movement through the National b. Passenger entrance Port System reported living abroad and ex- negative variation of

8. Financial Intermediation:

a. National Banking market increased by creased by 2.8 percent; d. Approved by the Ag- System: Total assets 59.4 percent and 926.4 respectively segments: ricultural Development of the national banking percent repurchases. individual life by 4.7 per- Bank loans: Approved system amounted to 6.5 The calculated on Stock cent, personal accident by the Agricultural De- percent, excelling loan Exchange index de- 15.4 percent, health 11.3 velopment Bank loans portfolio by 9.3 percent creased 8.3 percent; on percent, collective life increased by 239.2 per- and total deposits by the other hand, in the 8.8 percent, fires and cent of these those for 6.1 percent. Bank liquid- stock market, volume Multirisk 8.8 percent, agriculture 80.0 per- ity fell by 12.7 percent. traded in balboas de- automobiles 5.4 per- cent, livestock 150.5 creased by 60.2 percent cent, bonds 1.1 percent percent, fishing 132.6 b. Stock market indica- and number of shares and technical branches percent and other items tors: The average total 50.4 percent. in 27.6 percent. nega- in 785.9 percent. (dollars) by the Panama tive variations were Stock Exchange volume c. Insurance: The value observed in other trans- amounted to 60.8 per- of premiums by insur- portation 17.6 percent cent. Of this, primary ance companies in- and claims 5.7 percent. 31 Legislación y Economía June 2016

9. Public Sector 10. Other Finances: related:

a. Current revenue percent, as non-tax a. Labour con- at 2.5 percent. of the Central Gov- revenue at 5.6 per- tracts registered ernment: The cur- cent. in MITRADEL: rent central govern- Employment con- ment revenue grew tracts registered by 11.8 percent, in the Central Of- mainly tax revenues fice of MITRADEL by 13.5 percent and (Ministry of Labor of these, direct tax- and Workforce es on 19.8 percent Development) and indirect 7.2 per- grew by 7.0 per- cent, with ITBMS cent, respectively, (Tax Transfer of as defined in 8.2 Goods and Servic- percent, indefinite es Furniture) which 10.8 percent and increased by 22.4 works determined

11. Activities of spreading

a. Gross bets: The cent, bingo halls “A” by 9.7 percent, report gross bets 3.6 percent and betting shops (includes premi- 0.5 percent race- sporting events ums paid) of op- course. Mean- 36.6 percent, erators of games while, lottery meeting bingo of chance, re- sales, increased 16.1 percent and corded negative by 4.3 percent. the racecourse at variation of 15.4 6.8 percent. L&E percent, mainly b. Net betting: slot machines Net bets (exclud- type “A” which fell ing prizes), de- by 12.9 percent, creased by 11.9 table games 33.7 percent, mainly percent, betting gaming tables at 32 shops sporting 18.7 percent, slot events 25.9 per- machines type Legislación y Economía June 2016

DGI INFORMATION CENTER OPENS E-TAX SYSTEM 2.0 Source: DGI

he Directorate General of Revenue (DGI) The tax authority asks taxpayers to up- Tof the Ministry of Economy and Finance date their email address, as this new email (MEF) opened on Monday June 20 2016, system constitutes a direct communica- a center of information and assistance to tion channel between tax authority and its taxpayers to introduce them to the new tax users. Email this update is given by enter- management system online e-Tax 2.0, the ing user with RUC and NIT, weblink of DGI. evolution of the current e-Tax, located on the ground floor of PH Mundial building on Unlike current system, with e-Tax 2.0, users Avenida Balboa, headquarters of the DGI. shouldn’t download different software cur- rently used as Rent Software E-tax, Interna- In this information center a group of collabora- tional Taxation Module Reports, CND, but pre- tors of the DGI provide guidance and users can sentation of statements and reports makes observe firsthand the benefits of e-Tax 2.0, pri- will be entirely online. However, payments to or to its entry into operation will be next July 25. taxes should continue to be made, as it is today DGI also remains available on its web through authorized banks in the country. L&E link: https://dgi.mef.gob.pa a sec- tion with information about the e-Tax 2.0, with documents on the procedures, FAQs and guides for users of the service. 33 Legislación y Economía June 2016

Economy

Zumara Garrido - Attormey

UNITED KINGDOM VOTES TO LEAVE THE EUROPEAN UNION WORLD

he UK decided to leave the EU rest of the world different areas. This deci- in a clear rejection of political sion represents an unprecedented consider- and economic order of the ing that had not been paid since the found- continent. This result comes ing of the European Union, the output of any after months of uncertainty country in the bloc, so the sequels that were through counting of votes of discussed before this referendum, were con- the referendum in 304 of the 382 constituencies sidered theories, more no concrete facts. in the UK, with a margin very close difference. Above all, the result reveals how willing vot- Implications that arise and emerge from this ers tolerate being subject to the criteria of event provide that UK will plunge into an eco- a coalition that was in great speeches and nomic crisis whose consequences, many meetings and that rather than seeking eco- ofT which can already be seen, not only af- nomic welfare by improving their own fi- 34 fecting UK but affecting both Europe and nancial structures focused on repudiating Legislación y Economía June 2016

the financial systems of smaller states, which resulted in the lack of economic growth in Europe amid globalization.

The output of the UK could cause a dom- ino effect in countries like Sweden, Den- mark or Netherlands, which require more force and frequency a referendum on re- maining in the EU like Greece, given the deep economic crisis country has been www.hablamosdeeuropa.es considering this possibility for some time.

In political news, both internally, and with respect to its European partners, the UK Fotografía: is obliged to negotiate terms of the output of the European Union, with particular em- phasis on the negotiation of the agreement

The economy has been one of the first affected following the decision by the British.

to regulate annual trade there between the could claim another independence refer- UK and the rest of European Union. The in- endum to continue in the European Union. ternal policy within the EU bloc will have its impact on this process that must choose The economy has been one of the first af- between granting a favorable agreement fected following the decision of the British with broad market access as the UK an im- and impact has been of such magnitude portant trading partner and run the risk of that after hours of the referendum result, encouraging their own similar movements the pound and stock exchange in the coun- the UK, or to focus on countless nega- try have announced they have plummeted tive effects it will have this event on the being shown in the worst fall of the Brit- EU and establish an agreement requiring ish pound since 1985, which fell by 11 per- more in the UK, on the basis that countries cent. In economics consequences are not outside don’t deserve the same favorable long in coming and have already crossed conditions member countries, seeking the borders in Europe, where several coun- to avoid gradual disintegration of the EU. tries have already registered declines in their values. The financial services insti- On the other hand, in the political arena, tutions in the UK are in great uncertainty this event brings separatist ideas that al- about what might happen, mainly regard- ready existed in countries like Scotland ing access to hold banks domiciled in and Northern Ireland, whose population an EU country to do business with any- 35 Legislación y Economía June 2016

one else who also was part of the block. onstrated European Union to improve economic situation of the block without making changes Recession following departure from the UK to exit economic crisis facing the continent. EU represents a major challenge for state finances, as this situation will merit cutting While it’s true, it is not politically correct to see budgets on issues of importance, as are how we benefit from a situation like this, our health and education and similarly require country has-been exposed to a series of attacks a increase in the collection of taxes to meet by this group of countries of large economies the needs of the state, so there are already calls. This coalition Promoted the Implementa- speculations about a possible increase in tion of ineffective policies in response to eco- terms of income tax, value added tax (VAT), nomic crisis Which saw submerged and not be- taxation on inheritances and capital trans- ing willing to Promote a flexible fiscal policy or fers between other tax burdens, as well as at Least find an Appropriate solution to this situ- an increase in taxes on gasoline and alcohol. ation, made the decision to attack small country clubs With developing economies, as Panama is. In this sense, concerned about the decline of investments that can be developed, since Clearly this event has a number of important the costs and expenses of a large number of changes to the European continent, however companies would increase by less attractive we are pleased to know that for the moment the by increasing supply costs and do not get the approach of the European Union will be on the advantages offered by the European Union. output of the United Kingdom of the block, and not on tax structures or efforts made in other From the perspective of Latin America, com- countries to attract foreign investment. L&E mercial transactions carried out by the UK sector of the continent, are in a very small number, considering that Brazil, one of the leading economies in the sector, country only relies on the UK for the 1.7% of its ex- ports, export volumes and British to other Latin American countries im- port are even lower, so that the UK trade with Latin Amer- ica, doesn’t represent a great value to the region to see highly affected by this fact.

On the other hand, from per- spective of a country like Pan- ama, which has been damaged by constant criticism of the G8, for its fiscal structure, it is in- teresting to see how one of its main participants decided to leave their environment mainly by limited capacity that dem- 36 Legislación y Economía June 2016

DIRECT FOREIGN INVESTMENT TOWARDS RE- GION FELL 9.1% IN 2015 TO ACHIEVE 179,100 MILLION DOLLARS

Source: web page CEPAL

nflows of foreign direct investment (FDI) in cesses. With active and integrated poli- Latin America and the Caribbean declined cies, countries can leverage these flows 9.1% in 2015 compared to 2014, reaching to diversify their economies, promote in- 179,100 million, the lowest level since 2010, novation and introduction of technology Ithe Economic Commission for Latin America and meet the challenges of Agenda 2030 announced today and the Caribbean (ECLAC) for Sustainable Development,” said Alicia at its headquarters in Santiago, Chile. Bárcena, Executive Secretary of ECLAC.

This result is explained by the fall in invest- The decline in 2015 in Latin America and ment in sectors linked to natural resources, the Caribbean contrasts with the observed mainly mining and hydrocarbons, and slow- global dynamics, says the document. Last ing economic growth, especially in Brazil, year, global FDI flows increased by 36% to says the agency of the United Nations in its an estimated $ 1.7 billion, driven by an in- annual report Foreign Direct Investment in tense wave of mergers and acquisitions, es- Latin America and the Caribbean 2016 pre- pecially cross-border, focused on developed countries, particularly the United States. Declining mineral prices negatively affected FDI inflows in Chile (20.457 Despite the overall decline, results were million dollars) and Colombia (12.108 mixed country. FDI in Brazil fell 23% to million dollars) 75,075 million dollars, while the country re- mained the main recipient of these flows in the region (accumulating 42% of the total). In sented Wednesday at a news conference. Mexico, second largest recipient, entries in- For 2016, ECLAC projects that FDI will re- creased 18% to 30,285 million dollars, one of main lower than those achieved in recent their highest levels in seven years. The man- years, in line with the economic outlook ufacturing sector, particularly automotive levels. It could decrease by 8%, although industry, and telecommunications received it will remain an important factor in the the largest investments in that country. economies of the region, it is urgent to at- tract quality flows, the Commission says. Declining mineral prices negatively af- fected FDI inflows in Chile (20.457 million “In the current configuration of the glob- dollars) and Colombia (12.108 million dol- al economy, foreign direct investment lars), which fell 8% and 26%, respectively. is expected to play an important role in When analyzing sector distribution of these national and regional development pro- flows, it’s observed, for example, that in 37 Legislación y Economía June 2016

Colombia the share of primary sectors reflecting moderation of the expansion (including mining) decreased from 51% that had begun so-called Latinos between in 2010-2014 to 31% of the total in 2015. 2007 and 2012. considering the stock in- vestment of these companies, Brazil and In Argentina inputs increased 130% to Mexico are the countries with more capital 11,655 million dollars, rising explained that invested outside its borders. However, in in 2014 nationalization of 51% of YPF held 2015 Chile was the leading investor abroad. in 2012 (which represented a divestiture of nearly 6,000 billion in 2014) was recorded. The publication devotes a chapter to ana- In Central America, FDI inflows increased lyze the evolution of FDI in metal min- 6%, totaling 11,808 million. With 43% of the ing, which had a positive impact in re- total, Panama remains the largest recipient cent years in terms of exports and tax in the sub-region; followed by Costa Rica revenues, but does not show the same (26%), Honduras (10%) and Guatemala (10%). results in terms of product diversification Meanwhile, foreign direct investment in the or formation of chains in the countries. Caribbean decreased 17% to 5,975 million. In the last section of the report, while the As for trends in medium and long term, importance of FDI is examined as an en- the study highlights important changes gine of capital accumulation innovation. in the announced projects between 2005 and 2015: decreases the relevance of the “Although the direct contribution of FDI extractive sectors, particularly dynamic to gross fixed capital formation is small, in the automotive sector is observed and transnational corporations can play an increases the importance of telecommu- important role in economic development nications, renewable energy and retail. as they contribute to the creation of inno- vation capital,” says the document. “The “Investments in renewable energy and possibility of appropriating these benefits other environmental projects are the ba- depends on the training of the workforce, sis of the proposal of ECLAC to foster the the competitiveness of the local industry development of the region with a great and its ability to provide foreign compa- boost or big environmental push to move nies, and the existence of a conglomer- towards a pattern of production, energy ate associated” concludes the text. L&E consumption and low carbon” Alicia Bár- cena emphasized, referring to the last institutional document Horizons 2030: equality at the center of sustainable de- velopment, presented at the thirty-sixth session of the Commission held recently in Mexico, where the proposal is detailed.

In 2015 the United States was ranked again as the main investor in the re- gion (with 25.9% of FDI), followed by the Netherlands (15.9%) and Spain (11.8%). Moreover, FDI outflows from the region de- 38 clined substantially to 47,362 million dol- lars in 2015, 15% less than previous year, Legislación y Economía June 2016

THE WORLD BANK CUTS FORECAST TO 2.4% IN 2016 WORLD GROWTH

Source: Banco Mundial

he World Bank is reducing its forecast to 2.4% down from 5.9% estimated for 2015, as low global growth in 2016, compared to projec- energy prices and moderate recovery in ad- tions of 2.9% in January. This measure is the vanced economies support economic activity. Tresult of slow growth in advanced economies, Among the emerging market economies in persistently low prices of commodities, the China growth of 6.7% is forecast in 2016, after weak world trade and declining capital flows. 6.9% recorded last year. It’s anticipated that According to the latest update of the World the robust economic expansion in India will Bank Global Economic Prospects report, remain stable at 7.6%, while Brazil and Russia emerging markets and economies in de- remain in a deeper recession than forecast in veloping exporting commodities have January. According to forecasts, South Afri- struggled to adapt to declining oil prices ca will grow by 0.6% in 2016, ie 0.8 percentage and other key commodities, and this repre- point slower than the pace forecast in January. sents half the downward revision. Projec- tions indicate that these economies barely According to report, significant increase grow at a rate of 0.4% this year, which rep- in credit to the private sector -intensified resents a downward revision of 1.2 per- for a period of low interest rates and, more centage points from January prospects. recently, increasing needs financing- cre- ates potential risks for several emerg- “This slow growth underscores the reasons ing markets and developing economies. why it is crucially important that countries im- plement policies to boost economic growth “While advanced economies are struggling to and improve living standards of people living gain momentum in most of the economies of in extreme poverty,” said Jim Yong Kim, presi- South and East Asia it is registering strong dent of Bank Group World. “Economic growth growth, as in importing emerging econo- remains the most important driver of poverty mies of commodities around the globe,” reduction, and so we are deeply concerned said Kaushik Basu first Vice President and about the sharp slowdown in growth in de- Chief economist of the World Bank. “How- veloping country exporters of commodities ever, the rapid rise of private debt in several caused by the falling prices of those products”. emerging and developing economies indi- cates the need for caution. After a period Emerging markets and developing econo- of rapid increase in debt, it is not unusual mies commodity importers have adapted to note that non-performing bank loans as better than exporting countries, although a percentage of gross loans quadrupled. “ the benefits of lower energy prices and other commodities haven’t materialized quickly. In a context of sluggish growth, world econ- According to forecasts, these economies will omy faces serious risks, including a deeper 39 expand 5.8% in 2016, representing a small slowdown in key emerging markets, pro- Legislación y Economía June 2016

nounced changes in the attitude of financial the income levels of the advanced economies,” markets, stagnation in advanced economies, Ayhan Kose, director of the Prospects Group a period of low prices commodity longer Economic Development noted. “However, some than anticipated, geopolitical risks in various emerging and commodity-importing develop- parts of the world, and concerns about the ing economies have managed to register steady effectiveness of monetary policy to promote growth or faster during the last three years.” stronger growth. Report is used for first time a tool to quantify risks associated with glob- al perspectives and currently shows that lean more toward that lower than in January.

“Weak growth prospects in emerging markets and developing economies may slow or even reverse the progress they have made to reach

REGIONAL PERSPECTIVES

East Asia and Europe and the Pacific: Central Asia

Projections indicate In the rest of the re- Following persistent eastern region have that growth in re- gion, it is expected contraction in Russia, been revised down gion will slow, at a to increase invest- forecast growth in re- from January pros- rate unrevised 6.3% ments in several gion remains at 1.2% pects because coun- in 2016, foreseeing large economies in 2016, representing a tries are adapting to the expansion of (Indonesia, Malay- downward revision of the declining prices China will decrease sia, Thailand) and 0.4 percentage point of oil, metals and agri- to 6.7%, as predicted strong consump- of January prospects. cultural commodities. in January . Accord- tion backed by low ing to projections, prices of commodi- Geopolitical problems The activity in the growth of region ties (Thailand, Phil- in the region, including western part of excluding China will ippines, Viet Nam) outbreaks of violence the region will ben- be 4.8% in 2016, un- promote growth. in the eastern part of efit from moderate changed from 2015. Ukraine and the Cau- growth in the euro These prospects casus and terrorist area and the strength- assume an orderly attacks in Turkey, in- ening of domes- slowdown of growth fluencing prospects. tic demand, thanks in China accompa- to low fuel costs. nied by steady prog- According to fore- ress on structural casts, the region ex- reforms and stimu- cluding Russia will lus policies appro- grow by 2.9%. Growth 40 priate as required. projections for the Legislación y Economía June 2016

Latin America and Middle East and the Caribbean North Africa

Are forecast in the re- and the Caribbean, sup- According to forecasts, sanctions in January. gion a contraction of ported by the links with growth in the region Projections indicate 1.3% recorded in 2016 the United States and will rebound slightly that the expected up- following a drop of 0.7% strong exports would to 2.9% in 2016, ie turn in oil prices in in 2015, the first time in increase by 2.7% and 1.1 percentage points 2017 will support a over 30 years that a re- 2.6% respectively in less than expected in recovery of regional cession is recorded on 2016 and even more in January prospects. growth to 3.5% in 2017. two consecutive years. 2017 and 2018. the fore- It is expected to start cast for Brazil indicates The downward revision growing again in 2017, a contraction of 4% in reflects expected that as it gradually gain 2016 and is expected oil prices will continue momentum to reach to continue in 2017 re- to fall during the year, around 2% in 2018. The cession, in a context and go down on aver- outlook is different in in which you try to ap- age to $ 41 a barrel. different parts of the re- ply a more restrictive, gion: in South America rising unemployment, The main reason for a contraction of 2.8% declining real incomes the slight improve- is forecast this year, policy and political ment of regional followed by a slight re- uncertainty reigns. growth in 2016 is the covery in 2017. by con- anticipated strong re- trast, the product of the covery in the Islamic sub-region of Mexico Republic of Iran fol- and Central America lowing the lifting of

South Asia Saharan Africa

Forecasts indicate ening of activity was Is forecast to grow Sa- should support consum- that growth in the re- recorded, as in Paki- haran Africa will decline er spending. However, gion will accelerate to stan, Bangladesh and again to 2.5% in 2016, inflation of food prices 7.1% in 2016, despite Bhutan. Most South compared with 3.0% esti- caused by drought, high the slower than ex- Asian economies has mated for 2015, as fore- unemployment and the pected growth in ad- benefited from the casts indicate that prices effect of currency depre- vanced economies, fall in oil prices, low commodities will remain ciation could partially which has slowed inflation and steady at a low level, is expected offset this advantage. a increase in exports in remittance flows. to be weak global activity slowdown in the increase the region. The activ- and is registering a tight- in investments is expect- ity remained strong ening of financing con- ed in many countries as due to domestic de- ditions. It is likely that governments and inves- mand, main engine consumption will not rise tors cut or delay capital of growth remained significantly in the oil-ex- expenditures in a context robust. In India, the porting countries, while of fiscal consolidation. largest economy in the decline in inflation in 41 the region, a strength- oil-importing countries Legislación y Economía June 2016

A WORK PROGRAMME TO REVIVE Growth

Source: Fondo Monetario Internacional FMI

he IMF presented its work Monetary politics program for the next twelve months, focused on recover- IMF will continue to study the impact of ing a clearer path and secure unconventional monetary policies and its growth for the world economy contagion effects on other economies, es- The work program is con- pecially emerging markets. A related area sistentT with guidelines established of interest is management of capital flows. by World Policy Agenda and state- Over the next year, the IMF analyze the expe- ment issued by International Mone- rience of its member countries in relation to tary and Financial Committee in April. capital flows in recent times, in order to gain The work program emphasizes activities a clearer idea of risks that these flows pose IMF support to the three-pronged strategy to macroeconomic and financial stability. of monetary, fiscal and structural measures to boost growth. It also exposes the work designed to help member countries to ad- dress emerging issues (such as climate change and inequality) and to strength- en the international monetary system.

En una declaración al Directorio Ejecutivo del FMI, Christine Lagarde, Directora Gerente del FMI, afirmó que “el crecimiento, demasiado lento durante demasiado tiempo, ha supues- to un obstáculo para la economía mundial”.

Addressing policy challenges

With a backdrop of weak global growth, work program aims to help countries to articu- late more powerful and balanced policies.

42 Legislación y Economía June 2016

Supervision of the financial sector stitution will continue to support initia- tives for mobilizing domestic revenues in The IMF also intensify efforts to deepen developing countries, and plans to develop macro-financial analysis as well as its ef- a framework to strengthen capacities of forts to strengthen the supervisory and fiscal management in fragile countries. regulatory frameworks of member coun- tries. In addition, IMF will take stock of Structural Reforms reforms in financial regulation carried out at global and regional levels, given The IMF will pay greater attention to role increased risks to financial stability. of structural reforms to improve productiv- ity and growth. The technical staff will pre- The agenda also includes several issues pare a set of tools for structural reforms, related to the management of financial teams use in their annual assessments of sector vulnerabilities and risk reduction. the economies of member countries, tak- In particular, the IMF will review evidence ing into account factors such as stage of on causes and consequences of trends development of a country, cyclical position in correspondent banking relationships, of the economy and space available for tax and consider what role can the IMF play. reforms. The institution also recognizes that trade plays a crucial role in promoting growth Fiscal policy and development, and in the course of next year draw up a new reference note on trade The work program stresses the need to issues and trade policy, the first since 2010. strengthen fiscal policy in some countries, since monetary policy can’t bear entire bur- In other tasks related to increased growth, den of responding to current challenges. Fis- early next year, the IMF staff analyze role cal policy can contribute much more to sup- of the institution with respect to issues re- port demand in countries with fiscal space. lated to governance, in view of obstacles IMF establish a series of considerations on posed by endemic corruption to in achiev- how to assess the fiscal room for maneuver, ing inclusive growth in many countries. in order to make consistent assessments in different countries. The decision on need Emerging Issues to use fiscal space, and the way to do it’s further based on country-specific consider- The IMF works to expand and refine its ad- ations, such as rules and fiscal frameworks. vice on policies to address emerging issues. The new challenges -whether social, politi- The IMF will lead an initiative to support cal, demographic, environmental, biological infrastructure policies aimed at helping or technological- can have drastic conse- countries improve the efficiency of pub- quences for macroeconomic stability IMF lic investment and, where appropriate, member countries, so that the institution find options to sustainably increase in- will acquire skills in these areas through col- frastructure spending. It’s expected that laboration with other specialized agencies. this initiative -which will be tested in some countries- clarify what policies should be prioritized for investment in infrastruc- ture to reach a strong and lasting growth. 43 As regards low-income countries, the in- Legislación y Economía June 2016

Efforts will continue to integrate super- the role of special drawing rights (SDRs). vision by IMF issues related to climate change and energy. The IMF is developing Regarding the GFSN, the IMF will exam- a tool to assess a number of tax and other ine how to strengthen coordination with measures related to mitigation of climate regional financing arrangements. On the change, to be used in work with countries. other hand, it will review its lending in- struments in order to determine the best In addition, the institution is focusing on way to help countries affected by his- the specific impact of climate change and toric decline in prices of raw materials. natural disasters on the economies of small countries and other vulnerable economies. In addition, the IMF will closely exam- ine the design of loans and programs The IMF staff will continue to study the to ensure that the programs it sup- demographic transition and migration, ports in developing countries to miti- based on previous analyzes on the im- gate stress enough the adverse effects pact of migration on receiving countries. of some macroeconomic policies. L&E

In addition, technical staff will analyze ef- fects of economic migration on private sec- tor activity, competition, public finances and, ultimately, growth and convergence of countries whose citizens emigrate. EU ADMITS THAT “ BREXIT “ The institution will continue to integrate monitoring activities in its work on gender HURTS THE EUROPEAN PROJ- analysis and seek to better understand the ECT AND DIVORCE IS EXPECTED inequality in developing countries, as well as TO CONCRETE FAST putting in innovative motion analysis of the interaction between finance and technology.

International Monetary System Source: Agencia EFE

More generally, given current transitions eaders of the institutions of the in global economy, the IMF is consider- European Union (EU) and Member States acknowledged today that ing the best way to strengthen global ad- European project has received justment mechanisms and provision of a setback unprecedented deci- liquidity, in order to enhance efficiency sion to UK leaving the Twenty- of the international monetary system. eight,L and trusted the “divorce” is occur as soon as possible to avoid further damage.

The technical staff will address main areas The joint reaction of the institutions was wait of reform, such as mechanisms for crisis until after noon, and culminated in a brief prevention and adjustment, strengthen- statement of presidents of European Commis- sion, Jean-Claude Juncker, the European Par- ing global cooperation on policies that liament (EP), Martin Schulz, European Council, affect global stability and global finan- Donald Tusk and Dutch Prime Minister Mark cial safety net (GFSN, for its acronym in Rutte, who chairs this semester EU Council. 44 English). The IMF will continue to explore L&E Legislación y Economía June 2016

POPE FRANCIS WELCOMES ROLE OF FAO IN A NEW INITIATIVE ON MIGRATION IN THE MEDITERRANEAN

Source: FAO

ope Francis met with Director Gen- The Pontiff explained FAO’s position on issue of eral of FAO, José Graziano da Silva, migration and its efforts to achieve sustainable and praised the role of the body in development goals that international community front of efforts of United Nations to has set, including eradicating hunger by 2030. address the issue of migration in the MediterraneanP region and its work to strengthen Graziano da Silva also informed the Holy Father of links between peace and food security, climate concern about impact that climate El Niño is hav- change mitigation and sustainable development. ing on large areas of the planet, creating severe droughts and floods. The Task Force senior UN Graziano da Silva informed the Pope about global food and nutrition security, of which FAO is FAO “Blue Hope Initiative”, which seeks to responsible for the vice president, held a special transform communities of southern Mediter- meeting on Wednesday on the subject of El Niño. ranean engine stability and growth, particu- larly through support to small-scale fisheries. The Director-General of FAO recalled in this re- gard that FAO host two high-level meetings to “Migration is an issue that touches the soul the discuss the scope of El Niño in the “dry corridor” Pope Francis. Much remains to be done to ad- of Central America and in Africa, Asia and the Pa- dress what is happening in the Mediterranean, cific, the next June 30 and 6 July 2016 respectively. where it is estimated that more than 2,500 people have died so far this year trying to reach Europe by Graziano da Silva noted how climate change sea”, said the head of the FAO after the meeting. threat worldwide livelihoods of millions of small family farmers, many of which de- At its meeting, the Holy Father and Graziano da pend heavily on subsistence agriculture. Silva discussed current ongoing peace efforts in Colombia and in the Central African Republic and He also stressed that respond to the impacts of cli- expressed their strong hope that a lasting solu- mate change requires investing in improving the ca- tion to the conflict in both countries is achieved. pacity of poor rural communities for access to land, credit and other resources, while ensuring that also Boost rural development to counter mi- receive basic services like water, sanitation, health, gration education , transport infrastructure and electricity.

Graziano da Silva also highlighted as FAO be- The Pope, meanwhile, expressed concern lieves that increased investment in food secu- about the current bureaucracy in interna- rity, sustainable rural development and efforts tional organizations, and said that within to adapt agriculture to climate change, will help the United Nations system should work fur- create the conditions that enable people, es- ther for the benefit of member countries. L&E pecially young people, not be obliged to leave 45 their land in order to seek a better life elsewhere. Legislación y Economía June 2016

ILO: POLICIES OF LABOR MARKET IN LATIN AMERICA FOR MUST BE REORIENTED TO SAFEGUARDING SOCIAL ACHIEVEMENTS AND ADDRESSING PRODUCTIVITY GAPS

Source: ILO

he International Labor Organization (ILO) Caribbean” was prepared by Research De- recommended that countries of Latin Amer- partment at ILO headquarters in Geneva. Tica make a “strategic reorientation” of its policies in labor market, to face conse- According to document after several years quences of economic slowdown that will of strong growth during which social prog- produce an increase in unemployment and ress was made in employment and failed to informality and to increase productivity. consolidate these achievements, which re- vealed structural deficiencies. The report The report warns that “achievements since the warns that “despite significant progress, still 2000s in terms of social inclusion and quality has not completed the shift to a knowledge- of work have recently stalled and even start to driven economy and based on better jobs”. reverse,” which could lead to a hazardous situ- ation “structural stagnation” in labor markets, which in turn could lead to increased inequality and informality, as well as eroding middle class.

“Alert signal is given, as slowing economy will continue to impact labor markets in the region during 2016 and coming years,” said Regional Director of the ILO for Latin America and the Caribbean, Jose Manuel Salazar, dur- ing a press conference in Lima on Tuesday.

“Now what we are talking about is effective solutions. Active policies of labor market Compendium of ILO policy labor market in calls constitute a new policy approach that Latin America on the basis of a compendi- simultaneously act to update skills, improve um of policies labor market and an analysis the fit between supply and demand for la- of the same over past two decades, the re- bor, and promote creation of productive jobs. port concludes that many countries in Latin This integrated approach is what now re- America don’t have a integrated active la- quire labor markets in the region,” he added. bor market policies, but the evidence from programs implemented in the region is that 46 The report “Effective Solutions: active la- these policies have positive impacts system. bor market policies in Latin America and the Legislación y Economía June 2016

Active policies of labor market are interven- programs benefit entire target population. tions that help people find quality jobs in a sustainable manner, promoting directly or in- The ILO specialist Veronica Escudero, directly creation of productive jobs, improving one of authors of the study, warned that skills and productivity of people and ensur- “while such policies has great poten- ing a link between job seekers and employers. tial, it is noteworthy that both the design and targeting and implementation are es- The ILO report noted that available evidence sential to ensure their effectiveness” . suggests that training programs, employment subsidies and programs to support self-em- In this sense it is necessary “to be clear what ployment and micro-enterprise have shown the barriers to employment that people face positive results in region, but only in a few in the country, as well as social and local labor countries such as Argentina, Brazil and Chile, market needs are to ensure the relevance of a level of spending is observed in compa- policies and ensure greater impact, including rable to levels recorded in high-income coun- the number of beneficiaries, “said Escudero. tries active labor market policies (ALMPs). Another conclusion of the study is that many In other countries of Latin America and of ALMPs implemented in the region focus the Caribbean, or there is no such poli- on only one type of intervention, instead cies or spending levels are exiguous. of providing a more complete set of mea- sures, such as would be desirable. A well- structured policy package can lead “to economic specializations with high added value and increase pro- ductivity growth,” said Escudero.

Regional Director of the ILO noted that slowdown “in slow motion” living the region has highlighted the need to “ad- vance productive development strat- egies and training of workforce are essential to achieving more inclusive growth and more sustainable devel- opment, and that active labor market policies Are effective active labor market are an important part of arsenal of instruments policies in Latin America and the that require countries of region at this time.” Caribbean? The new ILO report reviews data from across Besides putting more emphasis on these poli- region, and delves into cases of Argentina, cies, the study underscores the need for im- Colombia and Peru, in order to understand provements in the ALMPs in region so that what needs and challenges of generation countries can fully benefit from positive ef- and implementation of these policies. L&E fects of these policies, and proposes a num- ber of improvements in design and implemen- tation of ALMPs, such as creating incentives to increase number of beneficiaries, adapting 47 policy to specific context, and ensure that Legislación y Economía June 2016

48 Legislación y Economía Junio 2016

EXPANDED CANAL: OUR SOVEREIGN BETTING

Yestryll Mc Cree - Attorney

49 Legislación y Economía June 2016

Proudly celebrate the most important in the history of the Panamanian nation during the XXI century construction

n June 26, 2016, we proud- blocks dot the path between seas. ly celebrate the most im- portant building in the Last summer, water began to gush through history of Panamanian the concrete, which was supposed to last nation in twenty-first cen- 100 years, but couldn’t reach the first tury, the opening of the Expanded Canal. ship. The Hill analysts had warned that However, it has come to our atten- budget for concrete consortium was 71 tion an article published on June 22, percent smaller than next lowest bid. 2016, by the New York Times a few The budget also allocates about 25 per- daysO before the celebration, entitled cent less steel to reinforce concrete. “The New Panama Canal: A Risky Bet”. In this article, an investigation led by Walt Then there is lock design. Tugboat captains Bogdanich, American journalist, which say they can’t safely escort larger ships presents a chronology of situations that because locks are too small with very little have occurred since the selection of con- room for error, especially in difficult wind sortium Grupo Unidos por el Canal, con- conditions and currents. In fact, in a feasibil- struction of the Canal Expanded until what ity study obtained by The Times, Panama Ca- happened weeks is done before its opening. nal Authority had previously concluded that tugs would need significantly more space. According to the article in The New York Times, future of the Canal Expansion is Tugs themselves are a problem, especially cloudy due to insecurity, poor quality of the 14 new ships purchased from a Span- construction, and doubtful economic vi- ish company, especially for expanded ability of the project, as the Expanded Canal needs sufficient water, a durable concrete and some locks big enough to accom- modate ships that transit through them.

We would transcribe an excerpt from The New York Times:

“The lowest winning bid, one billion dol- lars less than its closest competitor, was “technically complex mega project” precarious from the beginning, accord- locks. To safely maneuver must be pre- ing to a confidential analysis commis- cisely controlled, but according to cap- sioned by the insurer of the consortium. tains, which are so unstable that work bet- ter go back, something that can’t be done 50 Among biggest risks is the con- when towing ships through the canal.” crete lining walls of the mammoth six Legislación y Economía June 2016

Under this publication and concerning opening of the Canal Expansion, June 26, Another problem occurred in Septem- 2016, we need to remember a little of his- ber 1882 when an earthquake shook tory of construction of the Panama Canal. the isthmus, so they had to stop works and railway traffic for some time. This event led to a fall in share price of the History of the Panama Canal company on Paris stock exchange.

The idea of building a canal through Cen- The fact change construction plans on a ca- tral America was suggested again by a Ger- nal with locks, it allowed company to save a man scientist, Alexander von Humboldt, lot of money. However, since 1886, opponents leading to a renewed interest in the early of Lesseps not left him alone and during this nineteenth century. In 1819, the Spanish time, in Paris intrigues against the company government authorized construction of a canal and creating a company to build it.

The Republic of New Granada, now Co- lombia, gave a concession in 1839 for the first time a French company, to estab- lish a line of communication from Pan- ama City to any point on Atlantic coast. Between 1850 and 1875 were carried out stud- ies, which led to the conclusion that two most favorable ways were: through Panama (then part of Colombia) and through Nicaragua. were increasingly open and came to public opinion, which proved disastrous because In May 1879, the French Ferdinand de money was finished in 1888. Lesseps was Lesseps, who had completed excava- forced to stop all works and abandon proj- tion of the Suez Canal, presented to the ect, representing end of the French Canal. Society of Geography of Paris the draft Interoceanic Canal without locks, which Fall bankrupt on February 4, 1889, the com- would connect Atlantic Ocean with Pa- pany de Lesseps was assumed by the head cific Ocean by the Isthmus from Panama. of construction of the canal, Philippe-Jean Lesseps draft was accepted, and rights to con- Bunau-Varilla engineer, who was carrying cession by ten million francs were purchased. out new works according to Eiffel draft. Without financial support, Bunau-Varil- Cost of works were estimated at 600 la goes to the US Government, Which million francs, and a company was decides to transfer rights of exploi- founded Compagnie Universelle du tation and Panama Canal construc- Canal Interoceanique of Panama tion and control of area around it. Works began in 1881, face several challenges: the terrain, epidemics of malaria and yellow fever with a high mortality rate among staff. Gustave Eiffel, consulted on project, put into question its design, and concluded that the canal should include locks to 51 accommodate the relief of the region. Legislación y Economía June 2016

Signature of Panama Canal Trea- territory outside the canal was ties used mainly for military purposes.

The Hay-Bunau-Varilla Treaty validated The military use given by the Ameri- this operation and was signed on 18 No- cans ceased when territory was handed vember 1903, almost immediately after over to Panamanian control, like Ameri- the revolution that brought about the cans who inhabited area were removed. separation of Panama from Colombia. Currently the territory is used for com- The new Republic of Panama, represented mercial, industrial and tourism purposes. by Bunau-Varilla, gave US, perpetual right of the canal, and a large area eight kilometers The Canal passes to Panama on each side thereof, in exchange for a sum of 10 million and an annual income of $250,000. Panama wanted to regain control of the Canal Zone. Negotiations began in 1970 On August 15, 1914, the steamer “Ancon” between the US Government and the officially inaugurated the Panama Canal.

From 1904 to 1979 the territory was controlled by the United States, which built and financed the Canal.

Panamanian authorities. On September 7, 1977, President Jimmy Carter and the head of government of Panama, Omar Torrijos signed the Torrijos-Carter Treaty, which returned to Panama complete con- trol of the canal on December 31, 1999. Due to events on the Day of the Martyrs, on January 9, 1964, which demanded re- Administration passed Pana- turn of the Canal Zone to the Republic of ma Canal to Panamanian hands. Panama, by Torrijos-Carter Treaties signed in 1977, began the decolonization of the ter- Canal Expansion ritory in 1979 and became reverted areas of the Panama Canal, an area of shared On April 24, 2006, former President Martin sovereignty between US and Panama. Torrijos Espino formally announced the proposed expansion of the Panama Canal Gradually, these areas would be trans- through construction of a third set of locks ferred to the Republic of Panama. and expansion of navigation channel. The last American flag was low- ered in Balboa December 31, 1999. Canal expansion was decided by a na- tional referendum, which was announced 52 During US control of the Canal Zone, on 24 July 2006 by President Martin Tor- rijos and took place on 22 October 2006. Legislación y Economía June 2016

The results of the referendum conferred ent in the magnitude of a megaproject a 76.83% of the like Canal Expansion, votes in favor of however, that not the expansion prevented the cel- project and ebration of his inau- 21.76% against. guration, much less his administration. The main ob- jective of the In addition, since Expansion the Canal passes to Program is to Panamanian hands, increase ca- despite the belief of pacity to meet many, Administra- the growth in tion has been seri- demand with ously and efficiency better customer service. The expansion - without any help from the Americans will double the Canal’s capacity, which - with significant increases in revenue. has a direct impact on economies of scale and international seaborne trade. It’s public knowledge events that arose with the consortium Grupo Unidos por el This will help maintain competitiveness Canal, along the Canal Expanded construc- of the Canal and value of the sea route tion, however, administration of the Pan- through Panama, ie, that the purpose of the ama Canal has filed claims and legal ac- Canal Expansion administered by Panama tions against the consortium and clauses is different from the Americans which was contracts, which will be resolved over time. military, now it is meet a service economy. Panama should continue training to Conclusion face the Panama Canal Administra- tion of the way it has been doing. Returning to the New York Times, it should be noted that you can’t remove them mer- Worth noting proudly that even with it Americans about durable construction the difficulties entailed the construc- of the Panama Canal, due to security and tion of the project, we celebrate to- measures with which it was built, how- gether historical fact of opening of ever, we emphasize that being Americans the Canal Expansion sovereign admin- one of the bidders for construction of istered by Panamanian hands. L&E the Canal Expansion and not being who builds perception that you can get the item after complete reading, is resent- ment, bitterness and even exaggeration, without highlighting mood of damage.

Throughout history, as we saw for con- struction of a project of this magnitude both in Panama and other countries, have raised enormous difficulties inher- 53 Legislación y Economía June 2016

GALLERY AND

VIDEO Photograph: Roberto Garrido Castro

Thousands of Panamanians pending Cosco Shipping Panama

54 Legislación y Economía June 2016

ONE LAND , ONE FLAG P A N A M Á

CANAL EXPANSION

55 Legislación y Economía June 2016

Milena Vergara - Assistant [email protected]

e of violence, drugs, lem he sees is that more specialized help. re- gangs, areas etc. . public school teach- ers vulnerable to vio- “This is where we do an Mr. Tenorio believes lence and drug areas orientation serve to- that some children sometimes have to gether as children, the cently conducted a in our country espe- face the situation of school and parents. Wvisit to the compre- cially public school children who receive hensive care center children do not re- abuse in their homes, We offer care in the “New Generation ceive the appropriate have good food, psychosocial, nutri- tion, sports, technol- ogy, “Tenorio said. EDUCATION AND POV- Its facilities, teach- ERTY ... A PROBLEM THAT ers, food, activities, equipment technol- SUPPORT NEEDED UR- ogy are due to sup- port from private GENTLY. companies mostly because they receive very little subsidy Movement” located level of education. gang , rebellion, etc. from the government. in Barraza, Chorrillo. We also noted that the We had the oppor- main problem of the At this time it is that New Generation tunity to interview quality of education is the center offers help Movement deserves Mr. Eduardo Tenorio, the short period and to strengthen the recognition and more psychologist at the changes the govern- teacher through train- support as they per- Center who told us ment no longer reach ing and workshops form a very impor- that their main ob- that concrete projects and in turn create an tant education for jective is the care of to improve educa- alliance to refer chil- children and youth children and young tion in our country. dren with more prob- of our country work. people under seven- lematic and thus the 56 teen years of age vul- Similarly informs us New Generation Move- This visit me is even nerable to problems that another prob- ment can offer them a more clear that we Legislación y Economía June 2016

need to work together covery in the home dents and so on a mix- Generation contribute urgently by improving environment and ture that is seriously their grain of sand as the quality of educa- therefore this affects affecting education in it would be of much tion in our country, the attitude of them. our country is given. help to the Centre especially in areas seeking every day to that have low eco- Over time, given that Education and youth improve the quality nomic resources teachers offer their are important pillars of of life and education and where poverty love, attention and our country, therefore of children and youth becomes an addi- acceptance, children I urge all those entities who attend there. L&E tional enemy to the and young people feel and individuals willing problem of the qual- welcome and often and able to cooper- ity of education that the departure time ate with the growth children and young arrives and do not of the Movement New people is provided. want to withdraw from the Centre. It can be seen with the naked eye the change I think there is a in children usually ar- mixture of prob- rive as we indicated lems ranging from Mr. Tenorio, lack of our homes, teach- acceptance and re- ers, school, stu-

57 Legislación y Economía June 2016

Lisbeth Martéz - Assistant [email protected]

sebio A. Morales and Guillermo Andreve, the last effort to renew ILLUSTRIOUS liberalism from a so- cialistic perspective. In the pedagogical order postulated, with Jep- tha B. Duncan and Jose PEOPLE Daniel Crespo, democ- ratization of schools, socialization of educa- Octavio Méndez tion, coeducation, de- By then return to his mand for manual labor, Pereira (1887-1954) studies in Chile, Men- projection of school in Educator, historian, diplomat, novelist, a Panamanian dez Pereira was part the community and op- university rector and essayist. Founder and first Rec- of the plant teachers position to intellectual- tor of the University of Panama. First Director of the UNESCO Regional Office for the hemisphere, based in of the National Insti- ism and academicism. Havana, Cuba. tute, created in 1909, with illustrious na- He was Rector of the He was born in the the title of Master at tional intellectuals and National Institute orga- Province of Cocle, school, he entered the foreigners who made nized the first Pedagog- Aguadulce district, on Pedagogical Institute the Institute the most ical Assemblies and August 30, 1887. Son of University of Chile, important center of directed the Journal of of Joaquin Mendez and thanks to a grant from learning in the country, Public Instruction, gen- Micaela Pereira. Com- the Government of home to generations of uine forums for teacher pleted primary school Panama for their high shapers of the country, training and updat- in his native province; grades. He obtained the struggle for sover- ing, which brought to- then moved to Panama the degree of Professor eignty within the terri- gether educators from City to pursue second- of State, majoring in tory of the Canal Zone. around the country to ary studies in the Nor- Castilian, Chile in 1912. discuss issues and ex- 58 mal School for Boys. In addition, studied He joined with José change experiences After obtaining in 1907 law, business and art. Dolores Moscote, Eu- on education, teaching Legislación y Economía June 2016

and learning. He was a founder of the jour- of the Republic Harmodio Arias Madrid. The nal Studies. The first issue appeared in 1922. inaugural ceremony of the University took place on 7 October the same year. He was ap- In 1923 he was named Secretary of Education, pointed as the first Rector of the University under the chairmanship of Dr. Belisario Porras, of Panama since its inception in 1935 until had a highly successful management. Found- he died on August 14, 1954. Had two brief ed schools and libraries in various regions of interruptions politically motivated at the be- the country, created the Organic Law of Edu- ginning of the 1940s, the first, 1950 and after. cation, established “Book Day” and “Teacher’s Day”, and created a support fund educator. In his career as Rector, undertook the mis- sion to design their academic-organiza- As a diplomat, Mendez Pereira served diversi- tional structure and implement it in the midst of uncertainties and questions, and having to face two strategic tasks for con- solidation and development: the recogni- tion of academic and administrative au- tonomy and construction University City.

In the literary dimension, Mendez Pereira was an admirer and promoter of the works of José Martí, Sor Juana Ines de la Cruz, Jose Toribio Medina, Victor Hugo, Ruben Dario, Jose San- tos Chocano, and Panamanian poet Amelia Denis de Icaza. He was also author of the first Panamanian Parnassus, published in 1916.

He wrote for many years the newspaper col- umn “Reasons Ephemeral” in the newspaper La Estrella de Panama, on literary, educa- ty of positions; particularly Extraordinary En- tional and national interest issues, and José voy and Plenipotentiary Minister of Panama Dolores Moscote was promoter of modern- to the governments of France and England ism in the newspaper La Antena. Many of his and Delegate of Panama to the League of speeches and essays have been published in Nations and to the International Labor Con- several issues of University Magazine, found- ference. He also held diplomatic missions ed by him in the work University of Panama in Chile, was Special Ambassador for the and, later, in Lottery Magazine. Today, the inauguration of General Gerardo Machado central campus of the University of Panama in the Republic of Cuba and Director of Re- bears his name, and Octavio Mendez Pereira gional Center of UNESCO, based in Havana. municipal level, the Municipal Council of Panama recognizes educators with long ex- As one of the most important thinkers and perience serving students throughout the shapers University in Panama, sustained country. The First Congress of Linguistics and tirelessly advocated, over more than and Literature, in 1988, took his name. L&E two decades, foundation of the University of Panama, finally created by Executive De- Source: Protagonists of the Panamanian twentieth cree No.29, 29 May 1935, being President century. 59 Legislación y Economía June 2016

Albin Rodríguez [email protected]

anama already has its place the goalkeeper Lampe before the first celebration in the history of the America’s of Blas Perez. Godoy leaked the ball to Quintero for Cup. The ‘Panama’ combined the end give way to the scorer. Euphoria Panama. overcame Bolivia (2-1) in his first match in the tournament. Bolivia, in crisis and Baldivieso in the pillory, only cre- A coming-dream: it was 95 ated danger from set pieces. Smedberg pulled his Pyears that a debutante not debut with victory. glove and Penedo, Baloy and company had to be used thoroughly. Bejarano headed goal and Panamanian He did the team coach ‘Bolillo’ Gomez in a disputed pulled his gloves. Panama played and played with match in which Blas Perez became a national hero. freshness. The offensive style ‘Bolillo’ Gómez is tak- ing root. After leading in the Copa America in Ecuador Veteran striker of the Vancouver Whitecaps, for- and Colombia, the coffee technician, in the sixth time merly of Hercules, signed a double that places on the tournament, he led Panama to a historic victory. him as top scorer of the Copa America. All Pana- manians goals in this tournament bearing his sig- The draw didn’t change the script. Panama joined Te- nature. Blas Perez took six shots and 35 touch- jada (top scorer of the ‘Panama’ combined) and con- es of the ball to appear in the papers with two tinued to attack. Duk stood before the goalkeeper goals, the last agonizing and seal the triumph. and Cummings came to the rescue. The match was back and forth. Bolivia and Panama matured which Never before has a team from the CONCACAF had at times seemed deranged, looking for the goal. premiered with victory in the tournament teams from CONMEBOL. Panama did with suffering. Historical. Each throw of Machado was a danger in the area of Lampe. Tejada sent to limbo his

Sports Capsule Brash and fearless Panama appeared on the lawn chance before the Panamanian ecstasy. of Orlando. The rain was but the storm was ‘ca- nal’. Quintero sewed the ball at his feet and broke Arroyo left behind with power Cabrera and all defenses that came forth to meet. Turns and waited, waited... to give in to Blas Perez glo- turns. It was the highlight of the Central Ameri- ry. The goal of the ‘Panama’ triumph. L&E cans. Torres proved in a distant failure that cleared PANAMA makes history 60 in the America Cup Legislación y Economía Junio 2016

Albin Rodríguez [email protected]

Photograph: www.elperiodico.com

Second Panamanian Copa America when Messi stepped on lawn replacing Augusto match Fernandez. Such a sea change in quality of both players that the difference in development is fur- ther stretched with only 10 presence in the field. Panama showed the courage that earned to put in A demonstration of this is environment that came some trouble to Argentina in the first half, although down from stands when the rosarino entered. the South Americans had quickly taken the lead. But the ‘Bolillo’ Gómez were smart and knew their Leo took just six minutes to open in scoreboard. options passed to cut the ball movement to isolate He did so after receiving an Higuain ‘assistance’ -a rival goalkeeper Penedo of the dangers that could clearance of the defense gave him in the face and cause you let your opponent if that could drive defined with the subtlety and quality that we are leather. accustomed. At that moment, he looked into an al- leged imagination Panama throw in the towel, but This situation allowed the ‘Panamanian’ were play- 10 wanted more. ing very close to the Argentine Romero and they looked uncomfortable because it was an approach A scratch on his neck Gomez allowed to remain a that wasn’t in plans of the Argentine team. free kick in the position that best dominates. He Although sigh and relief for the ‘albiceleste’ arrived outlined to his left boot, leather lifted over the bar- with the second yellow card he received Godoy, rier and deposited it in the left corner of Penedo after punch that gave Gaitan. From that moment, being pulled in vain. The third was the result, once Argentina returned to have a break and began to again, its innate quality to dribble Baloy on a tile sigh a fresh air and leaving behind the burdens. Ar- and definition of left-handed. gentina only depended solely on what did Banega. If this account does more references to other Ar- When the ball away from their boots, selecting Mar- gentine names it is because the performance tino became opaque and dull. outshone 10 other references. That his injury last friendly against Honduras, Argentina can breathe 61 The second half went on to have another story easy and think and in the rooms. L&E Legislación y Economía June 2016

Chile Copa America win or die

he meeting began ‘warm’ for Chile. The second half began with the same script with First, because it was positioned well which ended the first half and grew much after the above Panama to drown in their own goal by Alexis, who put much more land through for field in order that these couldn`’t Chileans. The ‘gunner’ Penedo shot them with a right get the ball to generate danger. volley after a cross from Vargas, who was inside right. AlthoughT neither the more adventurous you would have imagined that a serious error Clau- After 62 minutes, Chile eased pressure in the at- dio Bravo to blow up the alarm in Philadelphia. tacking half and Panama took the opportunity to stretch a little more. This circumstance led to put A loss of ball Jara unleashed a distant and fo- on alert to defend the ‘red’ and had their chances cused Camargo shot but the keeper of Barca did in the boots of Arroyo and Torres, who had en- something difficult, getting the leather inside tered instead of the ineffective Tejada and Nurse. his goal in a play that had nothing of danger. The downside of Chile in defense was that his op- Chile continued for himself and used the bands ponent was causing “headaches” with very little. to approach Penedo. Several raids Fuenzalida, A new Claudio Bravo error, who wasn’t able to originated Beaseajour and Islas a constant do- catch a ball that was headed without much pow- main of the current champions. The ball was er by Arroyo, put fear in the body of Chileans, owned by Vidal and Marcelo Diaz. Chile gave but was afraid it was caused more by insecurity no respite to his rival and the equalizer came af- that produced its defense by the actual extent ter coasting into the empty net Vargas rema- of the danger that could generate the ‘Panama’. chase a Penedo catch before an Alexis shot. Before the end, Alexis put the finish- Chile had mobility in Aranguiz, danger in Vidal, ing touches to his final performance with Marcelo Diaz clarity and good start with Fuenzal- a header that left no option to Penedo. ida and Isla on the right side and Beaseajour on the left side. The transandinos asfixiabas to Panama with constant movements of the ball in midfield, forcing his opponent to come out with long balls constantly returning to their property.

The domain was overwhelming and the first time was running out for a draw that was short for champions of America. Until the middle ap- peared Vargas to connect a center Beaseajour facing no opposition from the ‘canal’ defense.

Despite the meager difference in the electronic, 62 the territorial domain that Chile had over rival Photograph: www.lacapitalmdp.com was even more than what was shown in the field. Legislación y Economía June 2016

Panama’s Water Polo Team Heading to Guatemala

The water polo team of Panama left for Guatemala to see action in the Central American and Carib- bean (CCCAN 2016) event to be held from 21 to 27 June in the pools of Sports City and Central Nor- mal School Physical education in this country.

Note that for this fair will see action more than www.planetafobal.com

175 athletes Water Polo Costa Rica, El Salva- dor, Trinidad and Tobago, Panama, Puerto Rico, Cuba and Guatemala who seek the first places that will direct qualification for the Pan Ameri- Photograph: can Championships 2017 (venue to be defined). Future Qualifying Quotes The categories will be played in both branches It’s clear that the team of Panama is not at the level of youth (16 years and under) and Senior (17 and over). the other teams in South America, level with the Amer- ica’s Cup was measured, with a win and two defeats. Also tests will be held in the form of fixed taking events of 1 and 3 meters in the categories of 12- Despite this, this edition of the America’s Cup 13 and 14-15 years. Cuba, El Salvador and Guate- thermometer served us to know how we are mala will be the participants in this discipline. to upcoming appointments knockout that would be against Jamaica and Costa Rica. The opening ceremony of the Central Ameri- can and Caribbean Championships 2016 will be We could notice that the team of Panama is weigh- held on Wednesday, June 22 at 7:30 p.m. and ing her high age of some players including Blas the Finals and overall awards by country will Perez, Luis Tejada, Luis Henriquez, Gabriel Gomez be June 26 at 7:30 p.m. on the same stage. L&E and captain Felipe Baloy, are experienced play- ers but I think it came time to give the opportu- nity to young people who are entering with force and motivation to the team and also these play- ers play for clubs outside and show a good level, players such as Gabriel Torres, Eric Davis, Abdiel Arroyo, Ricardo Clarke, Roderick Miller, Valentin Pimentel, Ricardo Buitrago. With these players we can have more speed and brand as this is be- ing lost and still a long way to reach Russia 2018.

Hopefully DT Bolillo Gomez this tourna- ment has served to open his eyes and make the corresponding changes to have a good and competitive team for playoffs. The categories will be played in both branches youth (16 63 years and under) and Senior (17 years and more Legislación y Economía June 2016

Albin Rodríguez [email protected]

anama prepares with his best soldiers to meet Then will have free on Tuesday, June 21, to re- the 2016 Centrobasket tournament to be held turn to play June 22 against Nicaragua and in the Roberto Duran Arena, from 19 to 25 June. closed the group stage facing Cuba, on June 23. During these days, not only have national re- Meanwhile, Group B is made up: Mexico, Dominican sponsibility for hosting this important fair, but Republic, Bahamas, Costa Rica and the Virgin Islands. to write a page in history of istmian basketball. They will be participating in the fair ten (10) coun- PAt the same moment that people focuses on the inau- tries in Central America and the Caribbean. guration of the expanded Canal, on June 26, where they Panama has hosted the competition on will present some of the most important world leaders. two previous occasions, 1977 and 2006, having won the gold medal in the latter. The Spanish coach Joaquín Ruiz Lorente is respon- sible for leading the largest quintet for this fair. In 2006, he won the gold after beating in the final the Figures like Michael Hicks, Josimar Ayarza, Joel representative of Virgin Islands, by score of 73-59. Muñoz, Enrique Grenald Jr., Jonathan King, Er- Including this year, Panama has participated in nesto Oglivie, Miguel Gotti and Jaime Llore- 21 of the 24 editions of the Centrobasket Champi- da make the shortlist for the Centrobasket. onship which began in 1965 and has 4 gold med- als in its history (1967, 1969, 1981 and 2006). The XXV Basketball Championship Cen- tral American and Caribbean Fiba Ameri- For the Centrobasket, the Panamanian Basketball cas (Centrobasket 2016) award five seats Federation (Fepaba), led by Jair Peralta former play- for the 2017 FIBA Americas Championship. er, has chosen to bring together the Panamanian In that event, Panama, located in Group A, players who play in various international leagues. opens against Antigua, June 19 (8:00 p.m.). For more quintet coach, the task will be diffi- Second opponent will be Puerto Rico, on June 20, cult, but not impossible to achieve more with which has won the most medals in this tournament a fan base that calls the victory of his war- 64 (23). Followed by Cuba with 14 and Panama with 12. riors and gives its wholehearted support. L&E Legislación y Economía June 2016 Culture Capsule Mariela de Sanjur [email protected]

TEATHER

TEATRO EN CÍRCULO

• “The Wizard of Oz” From June 22 to July 10

• “Cultural Evening and 2016 Henna” 24 July-3: 00 p.m. to 7:00 p.m.

TEATRO EL ANGEL

• “Dona Flor and Her Two Husbands” Premiere June 26 Ticket price: $ 15.00 FESTIVALS AND FAIRS

TEATRO ABA • PANAMA shows • “Roberto is along the cattle” Sunday 3 July- 10:00 a.m. June 2 to July 10 Old town Ticket value $ 15.00 • Debutantes Festival • Bethania tel: 260-6316 / www.teatroaba. Organized by the Guadalupana Ladies com July 2nd in the South Sea Terrace Club Union

“My Dear Dinosaur” • National Festival of the Pollera (Las Tablas-Los Santos) Sunday, July 3 to September 11 22 July- Contest Pollera “Margarita Lozano Medal” Ticket value $ 7.00 IV National Contest Pollera

• Sunday July 31, Club Union ESTUDIO GECU, UNIVERSIDAD DE PANAMÁ Tribute to Don Lucho Azcarraga

• “This boat will not float forever” • 36 National Handicraft Fair From 14 to 17 July, 8:00 p.m. July to 4 August 31 Atlapa Convention Center TEATRO INIDA Ticket value $ 3.00 • “Peter Pan and Mr. Hook” June 17 to July 3 Value: $ 15.00 MUSEUMS AND GALLERIES

• “Great Masters Panameños” From Thursday June 30, Allegro Gallery. From 6:30 to 8:00 pm. Info: 226-6967 65 Legislación y Economía June 2016

FILM PREMIERES OF Castillero, July 11 • Festivities of the Virgen del Carmen, July 16 THE MONTH • Boy and girl Day, July 17 • Starts delivery of the Archdiocesan Piggy Campaign “CINEMA SUNDAYS” • Patron Saint of Santa Librada July 20 Cultural Center of Spain - Casa del Soldado. • Birth of Simon Bolivar, July 24 • Driver Day, July 25 Plaza de Francia, Casco Viejo • Santiago Apóstol - July 25 11:00 am every • International Mangrove Day, July 26 Sunday of the year CONCERTS AND • Ice Age “The PRESENTATIONS Clash of Worlds” • The Legend of • “Yanni in concert” Anayansi-Atlapa Theatre Tarzan. July 2nd • Ghostbusters Tickets Panatickets

• “Guilt is Columbus’ new monologues July 2nd SPORTS Latitude 47 Tickets for sale: Ticketsplus • The 2nd Dragon Boat Festival • Vienna Soloists accompanied by the soprano Marta Poliszot July 17-Gamboa Thursday, July 7, 8:00 p.m. Ateneo City of Knowledge • ASICS circuit City5k Scotiabank Pana- National Concert Association ma2016 July 3, Cinta Costera, 7:00 a.m. • “Briceno tells all” Donation: $ 20.00 Thursday, July 7 Teatro La Huaca-Atlapa • Ultimate Combat Challenge # 29 • Tony Vega in concert Friday, July 1 8 Hotel Riu July- Atlapa Convention Center Tickets: Ticketsplus

EXPO, SEMINARS AND CONFERENCES • “Vocal Sampling” Saturday July 9, 2016. Hotel Riu. TicketPlus tickets. Info: 306-0555 • Panama Food-Expo Show • “SAGA Tour 2016” 1 and 2 July 14 July-8: 00 p.m. Atlapa Convention Center. Ateneo City of Knowledge Tickets: Ticketplus • Spa Week-1 to July 15 http://spa.week.com.pa/ • “I’m Pure Mother” Standup Comedy 16 July-Hotel Hilton • Panama Wedding Expo • “Carlos Vives In Concert” From 16 to 17 July - 11:00 a.m. Thursday 21 - Atlapa Convention Center and Megapolis Convention Center Saturday, July 23 at Fair Grounds David-Chiriquí Tickets Panatickets

ACTIVITIES AND • Ricardo Velasquez Concert 21 July-8: 00 p.m. FESTIVITIES: Anayansi-Atlapa Theatre Tickets: Panatickets

• Initiates Phase Solidarity Campaign • Diego Schissi-Quintet (World Music Panama 2016) Archdiocesan 1 to 3 July- Collects on 21 July- Ateneo City of Knowledge the streets • “Rumba Tropial 2016” • Independence day of United States of Saturday, 23 July America, July 4 Amador Convention Center. • Anniversary of the storming of the Tickets Panatickets. L&E 66 Bastille (France) July 14 • National Library Foundation Ernesto J. Colaboradores en esta edición

José Javier Rivera J. Rafael Fernández Lara Editorial Giovana del C. Miranda G. board Maybé Mendieta Yhestryll Mc Cree Karen Fábrega Luis Carlos Ortega Zumara Garrido Albin Rodríguez Mariela de Sanjur Milena Vergara Lisbeth Martéz

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

Portada y Diagramación: Virginia Medina

Fotografía: Mariela De Sedas de Sanjur Roberto Garrido Castro Rivera, Bolívar y Castañedas

@rbc_abogados

RBC Abogados Legislación y Economía June 2016

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

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