Qué Nos Deja La JMJ Panamá 2019?

Pacto Mundial sobre Migración

La Asamblea de Chivo Chivo

¿Qué nos deja la JMJ Panamá 2019?

Reformas Tributarias rbc.com.pa / ENERO19 EDICIÓN ISSN1726-1477 - Ley 68 de 2018 que revive los cheques fiscales - Ley 69 del 26 de diciembre de 2018

Perspectivas futuras del sector minero de panamá Economía Naranja Nueva oportunidad de crecimiento económico sin afectar el ambiente ISSN 1726-1477 EDICIÓN DIC.18 / rbc.com.pa rbc.com.pa Colaboradores en esta edición Consejo José Javier Rivera J. Virginia Medina Editorial Rafael Fernández Lara Idalia Ballesteros Javier Mitre Bethancourt Milena Vergara Giovana del C. Miranda Garzola Ana Sofía Corrales Dayra Argelis Castañedas López Mariela de Sanjur Augusto García Donna Ballestero Ailen Galván Gabriela Melgar Yinnelle Smart

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

Diseño y Diagramación: Virginia Medina

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

@rbcabogados

RBC Abogados JANUARY 2019 Editorial 10

Future perspectives of the mining sector of Content Panama

35. Politics 63. Illustrious People SOME CONTROVERSIAL FAILURES OF OUR SUPREME COURT OF JUSTICE IN OUR 68. Sports Capsule NATIONAL POLICY 73. Fashion 41. Panamanian Economy EXECUTIVE BOARD OF THE IMF CONCLUDES 81. Cultural Capsule THE CONSULTATION OF ARTICLE IV 2018 WITH PANAMA 46. World Economy LITTLE AUSPICIOUS PERSPECTIVES: WORLD ECONOMY WILL DECREASE TO 2.9% IN 2019 WITH WEAKENING OF COMMERCE AND INVESTMENT 60. Environmental Capsule MANAGEMENT OF HEALTHY LANDS AND RESCUE OF TRADITIONAL CROPSDE CULTIVOS 63 TRADICIONALES RICAURTE MARTÍNEZ THE DEAN OF ART Invited Writer 13 SUMMARY OF THE CONTENT ON THE PROJECT OF THE FIRST CODE OF TAXATION PROCEDURE FOR THE REPUBLIC OF PANAMA Content

Norms Consult of interest Doctrine &

NEW TEMPORARY Jurispru- RESIDENT PERMIT dence

BOARD OF ADMINISTRATORS OF 17 RURAL AQUEDUCTS 28 Legislación y Economía January 2019

Editorial FUTURE PERSPECTIVES OF THE MINING SECTOR OF PANAMA José Javier Rivera - Attorney [email protected]

he Mining Chamber of Panama has pre- tion of deposits and the source of the mine- pared an interesting document that co- ral reserves clearly show that precisely in the llects information on this sector and parti- regions of the country where poverty and ex- Tcularly data for an orderly development of treme poverty exist, a series of deposits and both non-metallic mining and metal mining. mineral reserve sources are located. that they would have the capacity to solve situations of Regarding non-metallic mining, its tremen- extreme poverty in our country in the medium dous impact on gross domestic product is term, and at the same time achieve sustaina- evident, particularly in the cycle that begins ble integral development through technology in 2007 and until 2014, as well as the cu- transfer and the best production practices that rrent situation that shows a reduction in the allow these populations to insert themselves production of concrete, cement, and other not only in the direct economy of mining, but aggregates during the period 2015-2018. in complementary activities such as tourism, production of sophisticated food, fisheries As regards metallic mining, map of the loca- development, cultivation of exotic agricultu- 5 Legislación y Economía January 2019

ral species, gastronomy, handicrafts and are located in counties, it is of cardinal im- other manifestations of the new economy. portance, the early territorial dialogues so that all the actors commit themselves The CAMIPA document also raises how to respect the agreements and the law. the mining activity can increase its contribution to the gross domestic product It is necessary to have a vision of efficiency as of this year and with a material impact in public policies to promote legal certainty, in 2021, generating a significant num- promote territorial ordering, promote moder- ber of new jobs, both direct and indirect. nization of environmental licensing processes and include social and economic aspects in In another order of ideas, for all these ob- the evaluation of impacts of this activity. Also, jectives to be met it is essential that the mi- create stabilization and savings funds and ning sector in Panama be restructured un- take advantage of social, environmental and der guidelines that guarantee the creation productive challenges to generate innovation. of an independent entity endowed with an effective and modern structure that allows It would be long to list all the details of this com- it to develop, promote and regulate mining. prehensive CAMIPA initiative that comes as a and geology with a priority national interest breath of fresh air for an activity that has been activity of public utility and social interest, absent from the country’s economic develop- which can determine the potential of the ment plans and that has a long-term future with country’s natural capital and safeguard its a view to solving the grades problems of pover- sustainable exploitation, projecting future ty and extreme poverty that affect the popula- scenarios, promoting investment and public- tions that are located precisely in the territories private collaboration to generate activities where these deposits and sources of mineral in different areas of the national territory. reserves are found that nature has given us.

It is essential that there are mechanisms of We congratulate CAMIPA for this extraordinary inclusion and mutual benefit with the - com work and we hope that the new administra- munities that are within the environment of tion that starts in July 2019, undertakes this the areas that have deposits in order that task to improve the future of our country. L&E mining becomes a motor of economic development, innovation and productivity. It will dawn and we will see... In the cases of exploitation areas that

6 Legislación y Economía January 2019

7 Legislación y Economía January 2019

Invited Writer

Summary of the content on the project of the first code of taxation procedure for the Javier Mitre Bethancourt - Tax Republic of Panama Affairs Advisor of the MEF

• ill No. 692, which proposes creation of contain, in attention to the tax-taxpayer re- Bthe Tax Procedure Code for the Republic lationship, since in 1996 an initiative like this of Panama, means the most important tax only came to the first debate of the Natio- reform in history of the Republic of Pana- nal Assembly, because the current Fiscal ma, since for first time relevance is given Code of 1956 only regulates, in one of its to the rights and guarantees of contribu- books, the tax procedure currently applica- ting citizens of this country, in the face of ble to taxpayers but lacking in tax concepts multiple tax reforms that have been made and principles , and with a marked absen- with the objective of collecting taxes. ce of rights and clear rules for taxpayers.

• We are facing the second opportunity of • Making a brief summary of the background our republican era to have a Code that re- of this project, which is presented on this oc- flects the norms and rules that in a Rule of casion, we must state that it is based on the Law that respects the principles and fun- initiative that the Tax Administrative Court damental guarantees of its citizens must had when it made the call that allowed in 8 Legislación y Economía January 2019

2015 an audit firm and local tax advice, which the rights of taxpayers without weakening represent private sector of the country will or eliminating any of the powers of the DGI. present this project to the Ministry of Eco- • This is against the bad position that Pana- nomy and Finance, which after its review and ma has occupied for many years, as a coun- adjustments necessary for a healthy balan- try that doesn’t facilitate compliance with ce with the reality of our tax administration, tax obligations, which, although it is true, presents the National Assembly under the has made great strides in betting on techno- parameter established so that said project logy to facilitate the payment of taxes. taxes will be based on the Tax Codification Model and compliance by taxpayer, unfortunately prepared by CIAT Inter-American Center of without a modern regulatory body and gua- Tax Administrations, which gathers the good rantee we will still present obstacles to provi- practices of what the tax-taxpayer relations- de a good service as Tax Administration, and hip should be in order to encourage voluntary yes, as well as listening, a good service, be- compliance with taxes, through a modern cause the DGI is not only inspection, collec- and guarantee system, far from the fiscal tion and collection, but also the entity has a procedure ordinary current that is evidently role of facilitator of business and commercial pro-tax and that regulates our Fiscal Code. activity that has not been able to meet in recent years because among different factors • All the countries of the region have been we lack a tax coding such as the one propo- characterized by adopting the good prac- sed here, without the itself is subject to any tices of the taxpayer-government rela- kind of international pressure by any body. tionship, by means of these models of tax codification highlighting the rights and • This project after the review carried out by guarantees of the taxpayers in attention the different actors of the public and priva- to two fundamental principles, such as the te sector has us here, with the aim of rati- principle of equality and the principle of le- fying the consensus that will allow us to gal security, without limiting the powers have the best Tax Procedures Code of the and powers of the Tax Administration re- region and allow the country to improve its presented in our country through the DGI. position as a country that facilitates trade and business in the area that represents the • The adoption of this model seeks to make services provided by the DGI, as the provi- us more competitive and attractive as a sion of effective and efficient public servi- country for investors to want to do business, ces are also a task of this entity, in addition because we will have a Tax Administration to the classic tasks of collection and con- that will be really effective and efficient, trol as we have already said, to promote the that respects the principles of equality and premise of voluntary compliance of taxes. legal security, as well as speed at the time 9 of resolving, and also, of course, highlight Legislación y Economía January 2019

Content of this Project: tention to the LIBOR rate in force and that will be generated from one year after the date in which the return request was made, with the Components of dynamization of the national objective of accelerating the returns of taxes, economy. and reduce return times that easily reach up to 4 years, when the law provides 2 months. 1. For the first time, payment in kind for national taxes (through land), duly endorsed 6. The answer to tax queries will have bin- by the General Comptroller of the Republic. ding legal effects on part of the Tax Adminis- tration and in this way grant legal security to 2. Compensation of accounts when taxpayers, and thus put an end to the uncer- a State provider is pending receipt of tainty, that when a revenue manager chan- a payment from a public entity and in ges, the criterion to be followed changes. turn, this is the debtor of the treasury.

7. Exempt from liability to cancel fines that 3. The option is reinstated so that the li- are not responsibility of the taxpayer, espe- quid and exigible credits of a taxpayer or cially when they have been caused by errors person liable for taxes can be transferred in the electronic system of the DGI or when to other taxpayers or responsible parties. there are causes of force majeure, since at Rights and Guarantees of taxpayers: present there are no regulations that allow these corrections to be made without inter- 4. In accordance with the principle of le- vention of the discretion of the duty officer. gal certainty and to correct the distortions with other country’s regulations (Commer- 8. The appeal for reconsideration before the cial Code), and to become more compe- Administrative Tax Judge assigned to the titive, national taxes will be automatically MEF and not to the DGI for greater impar- prescribed after 6 years of prescription pe- tiality, objectivity, speed and guarantees of riods that currently reach up to 15 years. due process in the administrative process and thus ending the delay of files to be re- This is also done, with the objective of kee- solved in these instances that today day ping the current account of the taxpayers exceed the more than 1500 files with years healthy with the tax debts effectively collec- unresolved (cases of up to 8 years unresol- ted and eliminating the wear and tear by co- ved), harming the taxpayer that is not resol- llection procedures then declared prescribed. ved in the prudent period, nor the treasury collects the projected, and thus causing 5. The payments due and undue that give little interest for foreign investors consi- right to returns will accrue an interest in at- der Panama as a country to do business. 10 Legislación y Economía January 2019

9. Adoption of alternative means of conflict 13. Rules of recognition of positive and ne- resolution such as Tax Arbitration for cer- gative administrative silence to meet the re- tain types of disputes that require a prompt quests of taxpayers in a timely manner and response and does not hinder the course reduce the lack of responses to the request, of commercial activities of large taxpayers this being very common in this jurisdiction. once the government channel is exhausted, as another alternative to solve the high liti- 14. For the first time terms, deadlines and gation between large taxpayers and the DGI. rules in the tax audit and audit procedures that guarantee transparency to taxpayers, 10. The Taxpayer Advocate attached to the especially that from these procedures arise Office of the Ombudsman is hereby crea- most of the cases for tax fraud or evasion. ted so that through an impartial official, the rights and guarantees of the taxpayers are 15. Guarantees in the forms of notification of monitored and enforced against any abu- administrative acts by the tax authority, by se or arbitrariness of the tax authorities. the mechanism used either by modern or technological means or by traditional means. 11. Concepts are established for the first time to distinguish what should be unders- • It should be noted that this project is not tood by tax fraud or evasion of what is tax the product of any suggestion or pressu- avoidance or different forms of tax planning, re from an international organization, even which is crucial for a country that considers though it takes as a model the tax coding the prosecution of the tax fraud and that to- developed by CIAT, which is an internatio- day the Tax Code of such concepts lacks. nal organization based in Panama, however, faced with the imminent need to prosecute 12. For the first time concepts that allow the penalty of imprisonment for tax fraud, differences in types of taxes, and avoid which has already existed for many years legislating confusing what taxes are rea- in the administrative sphere, the least we lly, taxes or special contributions and vice should achieve is the modernization of our versa and thus avoid court decisions de- tax procedure rules so that they can be com- claring the unconstitutionality of tax ru- bined in this new tax system for Panama. L&E les and this delays the forms of financing works, due to conceptual errors (such as the case of the so-called tax by burial).

11 Legislación y Economía January 2019

Norms of INTEREST NEW TEMPORARY RESIDENT Giovana del C. Miranda G. - Attorney PERMIT [email protected]

y Executive Decree No.7 of January 8, 2019, the of migratory repatriation services and fines. Temporary Resident Protection Permit is crea- Bted within the Temporary Resident Category for From the reading of the recital, it could be in- those persons identified as victims of the crimes dicated that the Decree in question arises be- of trafficking in persons and related activities. cause Panama is a member of the international community that approved the United Nations Within specific requirements, it has been esta- Convention against transnational organized cri- blished that the person must provide a certifi- me and its protocol to prevent, suppress and pu- cate duly issued by the General Secretary of the nish trafficking in persons especially in women National Commission against Trafficking in Per- and children through Law 23 of July 7, 2004. sons, in accordance with the reasoned technical resolution issued by the Trafficking Victims Added to this fact, it is found that the National Identification and Assistance Unit of people. Immigration Service by disposition of article 81 of Decree Law 3 of 2008 will watch over the com- On the other hand, the National Immigration pliance of the norms in force in the Republic of Pa- Service will grant a one-year temporary card ex- nama, in the matter of prevention and repression tendable for the same period, up to a maximum of property of the crimes of It’s about people. L&E 12 of six years and are exempt from the payment Legislación y Economía January 2019

AGRICULTURAL CHAINS ARE REGULATED

Giovana del C. Miranda G. - Attorney [email protected]

ith the approval of Executive Decree No.132 The Chain will work through Chain Com- Wof December 28, 2018, the internal procedures mittees, which will act as a steering group that must be carried out by the Ministry of Agri- for compliance and monitoring of ac- cultural Development for the implementation tion plans and competitiveness agree- and development of agrifood chains establis- ments at the regional and national levels. hed in accordance with Law 49 of 16 June 2017 Another of the themes developed in Decree in Within the developed aspects, are the Agro- question, states that in order to promote com- Food Chain Committees for blush and to form petitiveness of productive sectors in an integra- one should involve representatives of pri- ted manner, the Chains will develop competitive- vate sector incorporating the processes of ness agreements, for which they must present preproduction, production, postproduction, an Action Plan, which defines precisely the ac- marketing and government sector linked tech- tions to follow to focus the work to be executed. nically, socially and economically to an item or activity from primary production, conser- With regard to the Administration and finan- vation, conditioning, industrial transforma- cing of the chains, it provides that the State tion, final transformation and consumption. will provide a line to administer the budgetary funds necessary for the functioning of the It has been established that in order to form an agrifood chains, which will be administered Agrifood Chain by sector, it is required to ob- by the Technical Unit of Agri-Food Chains. L&E tain legal status through a resolution of MIDA through the Technical Unit of Agri-Food Chains. 13 Legislación y Economía January 2019

OFFICE ADMINISTRATION SERVICES IN PANAMÁ PACIFICO Giovana del C. Miranda G. - Attorney [email protected]

n December 13, 2018, Law 66 was ap- Board of Directors No.100-18 of Decem- Oproved, which amended and added articles ber 26, 2018 which approves the regulation to Law 41 of 2009 that creates a Special of the requirements that must be met by Regime for the establishment and opera- companies that provide administrative ser- tion of the Panama-Pacific Area and an au- vices and establishes that the same they tonomous entity of the State called the Spe- must comply with being part of a business cial Economic Agency Panama. Peaceful. group that has assets for an amount equal to or greater than US $ 200,000,000.00 or One of the modifications was cente- be a company that provides office admi- red on article 3, in which the numeral 23 nistration services to at least 7 subsidia- that provides the definition of office ad- ries, subsidiaries or associated companies. ministration services was added and it is established that it will be regulated. In this way, it is made clear the requirements that must be met by the Consequently, the Board of Directors of Pa- companies of office administration 14 nama Pacifico issued the Resolution of services for the purposes of Panama Paci- fico restricting the scope of application. L&E Legislación y Economía January 2019

REQUIREMENTS FOR THE UNIFICATION OF THE ENVIRONMENTAL MANAGEMENT PROCESS

Giovana del C. Miranda G. - Attorney [email protected]

he Ministry of Environment through Resolu- tion No. DM-0553 2018 of December 24, 2018, established the requirements to request the unification of the process of supervision, control Tand environmental enforcement of environmental management instruments in force on behalf of the developer with the same company name.

It has been established, that it may opt for the unification of the process of supervision,- con trol and environmental control of environmental management instruments, the promoter shall: 1. Have an approved environmental management instrument either a PAMA or an environmental impact study or the combination of both. 2. When projects, works or activities with environmental management instruments are located in the same adjacent polygon or polygon. 3. The promoter or company has the same corporate name and has resolutions of the environmental management tools approved and in force.

It will correspond to the Direction of Verification of Environmental Performance, to carry out the inspections in order to verify the environmental compliance and to issue the corresponding Technical Report recommending the approval of the request that complies with all the requirements demanded in the Resolution in comment.

It should be noted that once the unification resolution has been approved, the promoter will submit a single Environmental Compliance Report where the evidences of the environmental compliance of the projects, works or activities and their respective resolutions of approval will be incorporated. L&E 15 Legislación y Economía January 2019

LAW 68 OF 2018 REVIVES FISCAL CHECKS

Augusto García - Attorney [email protected]

n December 27, 2018, it was publis- Next, we will review in detail each of these news: hed in the Official Gazette No. 28684-B, Creation of the Fiscal Council, within the fra- OLaw 68 of December 26, 2018, which re- mework of the Fiscal Social Responsibility Law: forms Law 34 of 2008 on fiscal social res- The Fiscal Council will function as an inde- ponsibility and dictates other provisions. pendent entity and will be responsible for evaluating the macro-fiscal policy, by issuing Among the main novelties introdu- reports on modification and compliance with ced by this Law are the following: fiscal rules and will promote public discus- sion of the formulation and execution of • A chapter is added to Law 34 of 2008 on the General State Budget, within the fiscal fiscal social responsibility to create the framework established by Law 34 of 2008. Fiscal Council. • An exception is added to the closure of The evaluations to be carried out by the Fis- immediate accounts established by Law cal Council include the fiscal projections 56 of 2013, which creates the National contemplated in the Medium Term Fiscal Treasury System and the unique National Framework, the monitoring of the budget Treasury account. throughout the budgetary cycle, the quar- • An amendment to Law 48 of 2016 is terly, annual and medium-term evolution of introduced, which establishes retaliation the public finances, the temporary suspen- measures. sion of the financial limits in case of natu- • The extension of the validity of the fiscal ral disasters and / or economic slowdown, checks still in circulation is established, the main fiscal risks and contingent liabili- so that they serve as a payment instru- ties that could affect the financial situation ment, total or partial, before certain Sta- and the sustainability of the public debt. te institutions, for debts or fines that are 16 delinquent as of December 31, 2018. The bill that is presented before this Na- Legislación y Economía January 2019

tional Assembly, grants the Fiscal Coun- blished by Law 56 of 2013, through which cil functional and financial independen- the National Treasury system and the uni- ce so that it can freely and efficiently que National Treasury account are created. execute the tasks that will be entrusted to it. The purpose of this provision is to exempt The Fiscal Council will be integrated by the immediate closing of the paying ac- three independent professionals, who will counts, with prior authorization from the be appointed by Executive Organ. To be Treasury General Directorate in order to fa- a member of Fiscal Council is required: cilitate payment. This Directorate will determine the term by which the bank accounts 1. Be a Panamanian citizen, without ties of will be kept open, the use and the amount kinship within the fourth degree of consan- required monthly according to the needs, guinity and second of affinity or conjugal as well as the available bank balances. relationship with the rest of members of the Fiscal Council, or with the Minister of Eco- New sanctions for countries that apply dis- nomy and Finance. criminatory restrictions against the Republic of Panama: 2. Possess an academic degree equal to or higher than a master’s degree or equivalent In accordance with this provision, the Repu- degree in economics, business adminis- blic of Panama may apply pecuniary sanc- tration, banking, finance or practice as an tions to the cargo, originating in a State of the authorized public accountant or lawyer spe- list, that uses the territorial sea and the con- cializing in taxation or tax matters. tinental waters of the Republic of Panama, in accordance with the analysis and evaluation 3. Enjoy recognized moral solvency. of the economic and commercial implica- tions determined by the Evaluation Report. 4. Have extensive experience in public finance or macroeconomics. Extension of the validity of the fiscal checks still in force: The members of the Fiscal Council shall be appointed for a period of seven non- One of the provisions contained in Law 68 extendable years. The exercise of the posi- of 2018 that draws more attention is the tion of the members of the Fiscal Council extension of validity of the fiscal checks is not incompatible with the performance created by Cabinet Decree 7 of 1991. of private activities and they will receive a diet for each ordinary meeting of the Fiscal As established in article 5 of the aforementio- Council they attend. The Ministry of Eco- ned Law, fiscal checks still in circulation may nomy and Finance, through ministerial re- be used as a means of total payment or to solution, will determine the amount of the pay delinquent debts at their face value, that diet to the members of the Fiscal Council. is 100%, in favor of public entities, such as the Agricultural Development Bank, the Na- Exception to closure of immediate ac- tional Mortgage Bank, the Agricultural Insu- counts established by Law 56 of 2013: rance Institute, the Institute of National Aque- Law 68 of 2018 establishes an exception ducts and Sewers, the Urban and Domiciliary to the closure of immediate accounts esta- Cleaning Authority and the Institute for the 17 Legislación y Economía January 2019

Training and Use of Human Resources, which existed until December 31st. December 2018. Likewise, they can be applied to their face value, that is 100%, for the payment of each and every one of the national taxes in favor of the National Treasury before the General Direc- torate of Revenue of the Ministry of Economy and Finance, existing until December 31, 2018. Similarly, fines may be applied to the Ministry of Environment, the National Public Services Authority, the Transit and Land Transportation Authority, the Urban and Domiciliary Cleaning Authority and the Consumer Protection and Defense Authority. of the Competition, which are delinquent as of December 31, 2018.

It is important to highlight that the Fis- cal Checks are a legal figure created in 1991 as a consequence of the critical situation that the Central Government was going through at that time due to the political, economic and social crisis that affected the country at the end of the eighties.

These fiscal checks were created as a consequence that public institutions owed significant sums of money for the acquisition and rental of goods and services in fiscal years prior to 1990, so that with these fiscal checks the State’s creditors were allowed to cancel taxes and other debts in favor of the State, as a palliative to the enormous debt that the Cen- tral Government maintained to its creditors.

In this order of ideas, the extension of the validity of these fiscal checks after 28 years of its creation draws attention, by allowing its use at 100% of its value for the cance- llation of debts in favor of the State in force until 31 of December 2018, without es- tablishing within the aforementioned Law a detail of how many of these fiscal checks are still in circulation at present, nor the reasons and grounds of the Central Govern- 18 ment for the application of this measure. L&E Legislación y Economía January 2019

CONSIDERATIONS ON LAW 69 OF DECEMBER 26, 2018

“The provisions of BEPS usually benefit from the obsolete norms of an economic model based on past measures and not in the globalized economy of the 21st century, characterized by the growing importance of intangibles, such as intellectual property. For this reason, the G-20 and the OECD countries, together with a large number of non-member countries - developed, emerging and developing countries - have decided to work together in order to modernize international tax regulations to limit the problems of BEPS.“

Yinnelle Smart - Legal Assistant [email protected]

“10 Questions on BEPS” prepared by the Orga- and the G20, we find Action number five (5), nization for Economic Cooperation and Develo- “Combat pernicious tax practices, taking into pment (OECD). account transparency and substance”. This “ action is in charge of the revision of those As of October 31, 2016, the Republic of Pana- preferential regimes that allow the develop- ma became part of the Inclusive Framework ment of geographically mobile activities and for implementation of recommendations pro- that in turn grant tax incentives with respect vided by the countries that make up the G20 to the Income Tax, including regimes that and the Organization for Economic Coopera- offer a preferential tax treatment to the inco- tion and Development (OECD); These recom- me derived from the Property. Intellectual. mendations, also known as 15 BEPS actions, are aimed at ensuring that tax systems of the In response to accepted international com- different countries of the world adhere to in- mitments, several special regimes in Panama ternationally accepted principles, based on were submitted to the OECD’s Forum on Perni- transparency and fair and free competition. cious Tax Practices, which, as a result, provided a series of recommendations to be included in In this sense, within the Inclusive Framework our legal system, which serve as a foundation 19 package of actions promoted by the OECD for enactment of Law 69 of December 26, 2018. Legislación y Economía January 2019

The Law begins by determining that in the Patents, trademarks, copyrights, goodwill, event that an income derived from the assig- internet domains, franchises, know-how, in- nment or exploitation of intangible assets is dustrial design, technical documentation and subject to preferential treatment for purpo- software rights are some of the many assets ses of Income Tax, said exemption will only that make up the extensive catalog of intan- apply to qualified taxpayers, to qualified in- gible assets, classified in commercial intan- tangible assets and to the income that re- gibles, marketing, marketing, among others. sults from applying the method foreseen within the same legal body in its third article. Within the framework of Transfer Pricing, intangible assets are assets that may be Qualified taxpayer is the natural or legal per- subject to ownership or control for use in son who is entitled to a tax exemption or commercial activities, and whose use or trans- treatment preference in the matter of Inco- mission would be remunerated if it were pro- me Tax for the assignment or exploitation duced in an operation between independent of an intangible asset, by virtue of any spe- companies in comparable circumstances. cial Law in force in the Republic of Panama.

Law 69 of December 26, 2018 establishes a Qualifying intangible assets are intangible as- new method to calculate the income derived sets protected by means of a patent, utility from the assignment or exploitation of intangi- models and industrial models or drawings pro- ble assets subject to preferential tax treatment tected by a registry and software protected by based on the “Nexus Approach” in which the copyright, in accordance with the laws of the Re- application of a preferential regime related to public of Panama subject to a registration pro- Property Intellectual depends on the level of re- cess and approval by the competent authority. search and development activities carried out by the taxpayer. For this, the Law defines the Marks, image rights and any other intangi- assets contemplated, the participating parties, ble asset used for marketing are excluded. as well as the procedures, duties and sanctions that bind them, within the intricate process of The method provided by the Law is calculating the income subject to tax benefits. as follows:

Where the qualified expenses are the expen- ded that they lead to the creation or improve- ses or costs incurred by a qualified taxpayer ment of a qualified intangible asset. Likewise, in carrying out research and development ac- it is considered a qualified expense to contract 20 tivities within the Republic of Panama, provi- services with unrelated parties of the qualified Legislación y Economía January 2019

taxpayer or related parties of said taxpayer, such as Cost of acquisition of a qualified intan- provided that the services are provided in the gible asset or income derived from the assign- Republic of Panama, linked to the creation or ment or exploitation of a qualified intangible as- improvement of the qualified intangible asset. set; and warns that the rent must be determined by each intangible asset qualified individually. This concept will not include payments for interest, capital contribution, real estate expen- Among the duties established by Law 69 of ses or other non-separable capital expenses 2018 to qualified taxpayers is the obligation or that is not directly related to the creation or to carry in Panama a system of accounting improvement of a qualified intangible asset. and non-accounting records necessary to determine the connection between income The increase established by regulation is derived from the assignment or exploitation a percentage determined by regulation, of qualified intangible assets, qualified- ex which in no case may exceed 30%, on to- penses and total expenses corresponding to tal expenses of qualified intangible asset. qualified intangible assets. In addition to this, you must have a registration system that re- The total expense includes the costs of acqui- flects the connection between the losses as- ring a qualified intangible asset that corres- sociated with each qualified intangible asset. ponds to the cost incurred by the qualified taxpayer for the acquisition of a qualified in- The sanctions imposed by the Law on taxpa- tangible asset, for the acquisition of a person yers who fail to comply with the obligations who owns a qualified intangible asset or for the established therein are those established in acquisition of a license of a qualified intangible Chapter VIII of Title I of Book IV of the Tax Code. asset; the qualified expenses and the expenses of services contracted with related parties, pro- The sanctions imposed by the Law on taxpa- vided that the services are provided outside of yers who fail to comply with the obligations the Republic of Panama linked to the creation or established therein are those contemplated improvement of the qualified intangible asset. in Chapter VIII of Title I of Book IV of the Tax Code that start from B/.100.00, amounting to a And the net income derived from the assign- fine of not less than five. sometimes not more ment or exploitation of a qualified intangible than ten times the sum defrauded, closing the asset is the positive difference between inco- commercial establishment or imprisonment me derived from the assignment or exploita- for two to five years, depending on the degree tion of a qualified intangible asset and expen- of the infraction and the recidivism thereof. ses, costs and losses that are attributable to said income, incurred during same fiscal pe- Before finalizing, Law 69 of 2018 restores the riod, in accordance with provisions establis- validity of article 762-L to the Fiscal Code, hed in the Fiscal Code and normal regulations. which had been added according to article 1, of Law 33 of 2010 and later repealed 21 Additionally, the Law defines other concepts according to article 11, of Law 52 of 2012. Legislación y Economía January 2019

The text of the article varies from its original, decreeing the subjection of any free zones or special economic areas established or to be established to the Transfer Pricing Regime, except as provided in article 762-D of the Fiscal Code.

Additionally, the Transfer Pricing Regime will be applicable to any operation that a natural person or legal entities established in any free trade zone or special economic area with related parties established inside and outside the national territory without distinction of its establishment in free zones or special economic areas. e, regardless of whether they are exempt from the payment of income tax or maintain a reduced rate of this tax by provision of special laws, the provisions of article 762-D of the Fiscal Code are not applicable.

Grosso modo, these are some of the most important considerations that the enactment of Law 69 of December 26, 2018 has brought about. No doubt these modifications will bring a greater work for companies, already fatigued by the labyrinthine process of tax payment in Panama, which in turn will affect the international perception of our country.

Eventually the consequences of the condes- cension of the Legislative Body will be unveiled in the face of foreign pressure in the fight against “tax evasion”; However, with the co- ming electoral process we hope that the next deputies take into account the wise ones that once said the famous playwright Victor Hugo, “Change your opinion, but keep your principles. Change your leaves, but keep your roots.” L&E

22 Legislación y Economía January 2019

Consult Doctrine & JURISPRUDENCE

BOARD OF ADMINISTRATORS OF RURAL AQUEDUCTS

Source: Office of the Administration Attorney General

hrough Consultation C-095 of December in Law 38 of 2000 and concluding that it is ap- 19, 2018, the Attorney General’s Office of the propriate to accede to the request in the terms Administration had the opportunity to answer provided in numeral 6 of Article 3 of the Law 38 questionsT raised regarding the administration, The Office of the Attorney General of the Ad- operation and operation of a Rural Aqueduct ministration states that, pursuant to Executive Administration Board, as well as retiree bene- Decree No.1839 of December 5, 2014, which fits, pensioners and people of the third age. dictates the new regulatory framework of the Rural Water Supply Administrators’ Boards Before absolving the query, the Attorney (JAAR’S), it is clear that the JAARS are respon- General’s Office of the Administration went on sible for the operation and maintenance of the to analyze if it was within the budgets contained goods and investments that the State has made 23 Legislación y Economía January 2019

for the benefit of the communities and that in On the other hand, he indicated that the presi- turn said administrative boards are authorized dent of the Board of Directors of the JAAR’S to register in the Public Registry the goods, in- and/or of the JIAR’S, are responsible to the Mi- frastructure, equipment and others that they nistry of Health and the communities for the acquire in order to guarantee the common good good running of the aqueduct (administration, of the rural aqueduct on particular benefits. operation and maintenance) , and is even attri- buted the function of authorizing, in coordina- To answer the first question, the aforementio- tion with the other members of the Board of ned regulation states that those communities Directors, the expenses required by the adminis- that have more than 1,500 inhabitants and that tration, operation and maintenance, as well as do not have access to the supply systems of the the duty to send the Ministry of Health and the Institute of Aqueducts and Sewerage Systems responsible technical team, the Regulatory and (IDAAN), and/or by their own will. these determine financial reports for analysis and monitoring. it, they will be able to establish Integrated Joints of Rural Aqueducts, for the establishment of a ru- It considers that within the statutes of the ral aqueduct system that supplies these needs. JAAR’S must establish the mandatory micro- measurement for all users of the system. It adds that having the Community of Rio Con- Regarding the question posed, of whether re- go constituted the JAAR’S, this through its Ge- sidents, retirees and the elderly of Rio Congo neral Assembly could have if it is kept under are entitled to the discount established in the the current management and administration Law in the conditions in which the service is cu- mechanism (rural aqueduct systems), or in its rrently provided, considers that in accordance absence, request the Institute of Aqueduct and with Law 6 of 1987 on benefits to retirees, pen- National Sewers (IDAAN), provide the service, sioners and the elderly with all modifications, taking into consideration that in the memo- the discount of 25% of the tariff for water con- rial of your query indicates that the commu- sumption is established, public or private enti- nity is planned until the entrance of the same ty, provided that the consumption is not grea- by a supply system IDDAN, which comes from ter than thirty balboas (B/. 30.00), the account the Plant Laguna Alta water treatment plant. is in the name of a retiree, pensioner or senior citizen, which is residential and that is consti- With regard to the purchase of block water and tuted on the housing of the retired, pensioned resale to the community, it is estimated that ac- or elderly person, however, determines that will cording to Executive Decree No. 1839, the Rural apply the normal rate to the surplus of this sum. Aqueduct Management Boards (JAAR’S), the Integrated Rural Water Supply Boards (JIAR’S), Concludes by noting that according to Law 45 as well as the regional associations of the Ru- of 2007 modified by Law 14 of February 20, ral Aqueduct Management Boards, which are 2018 that dictates rules on Consumer Protec- legally constituted, can contract obligations for tion and Defense of Competition, the Consumer the administration, operation and maintenan- Protection and Defense of Competition Autho- ce of water supply systems, and also provides rity would be the competent entity to address that the Ministry of Health will promote and claims for lack of knowledge of this right. L&E supervise their constitution and functioning. 24 Legislación y Economía January 2019

SUPREME COURT OF JUSTICE DECLARES THAT IT IS NOT ILLEGAL “AGREEMENT OF THE AUTHORITY OF THE PANAMA CANAL”

COMPETENCE: Third Administrative Litigation Room DATE: Thirty-one (31) of August two thousand and eighteen (2018)

Ailen Galván - Attorney [email protected]

EEN: these areas, establish the environmental norms SAn administrative contentious nullity lawsuit applicable to the patrimonial areas of the Pana- was filed by the firm Morgan & Morgan on be- ma Canal Authority, and the patrimonial areas half of Panama Ports Company, S.A., to declare of the Canal Authority of Panama, and to the articles 5, numeral 2 of article 7, article 37 and areas under their exclusive administration, as article 40 of agreement No. 5 illegal. 116 of July well as the environmental terms and conditions 27, 2006, issued by the Board of Directors of the required by the Canal Authority within the area Panama Canal Authority (ACP), “By which the of compatibility with the operation of the Canal Regulation on Environment, Hydrographic Ba- and Hydrographic Basin of the Panama Canal. sin and Interinstitutional Commission of the Pa- nama Canal Hydrographic Basin is approved.” They consider that the preceding articles con- travened by exceeding the provisions of Organic FROM THE ACTING PART Law 19 of June 11, 1997 “By which the authority The plaintiff considers that the purpose of this of the Panama Canal is organized”, at the same agreement is to develop the general rules on the time they exceed their regulatory powers under environment contained in the Organic Law of the Organic Law , and conclude that these ex- the Authority in matters of administration, pro- ceed the allowed, as they grant powers of the tection, use, conservation and maintenance of general regulations in force in Panama as is the the water resources of the Canal Hydrographic Ministry of Environment in coordination with Basin, to coordinate the administration, con- the competent authorities and published in the servation and use of the natural resources of respective procedure manual, such as the ap- 25 Legislación y Economía January 2019

proval or not of an environmental impact study. conserve and administer everything Regarding the natural resources of the environment in the OPINION OF THE PANAMA CANAL National territory, the truth is that in the case of AUTHORITY the natural resources adjacent to the Panama The Panama Canal Authority stated that power Canal watershed, especially the natural resou- of the Board of Directors to approve the ACP rces adjacent to the Panama Canal waters- Environment Regulation is set forth in our Po- hed, especially of the water resource that this litical Constitution (Articles 319 and 323) and study basically deals with, there is a particular in Articles 18, 6, 57 and 121 of the Organic situation, since the treatment to be followed Law. And the faculty of administrator to deve- in these cases is totally special since this is a lop and execute decisions and policies of the protected area due to its own environmental Board of Directors are set forth in articles 22 characteristics and with vital cultural and hy- and numeral 2 of 25. And as for the powers drological resources and potentially economic of the ACP to carry out environmental evalua- And for this reason that the ACP is the one who, by tions of projects and the like are contemplated constitutional mandate, is responsible for prepa- in the numeral 3 of article 57 and in numeral 5 ring policies, strategies, programs and projects, of article 121 of the Organic Law of the ACP. whether public or private, that may affect the Panama Canal watershed in one way or another, They conclude by stating that the ACP is sub- not only addressing economic factor but also ject to its special regime of constitutional ori- the conservation of the environment and the mi- gin, which includes regulations on environ- nimum impact of the ecosystems of the region. mental protection of its areas, environmental assessments and Environmental Impact Stu- CONSIDERATIONS OF THE ROOM dies, and that the single text of Law 41 of 1998, The Third Administrative Dispute Chamber di- General of Environment, it is not applicable to ffers from the approach taken by the plaintiff, the ACP. And that the aforementioned numeral since it considers that the regulation on the 5 of Article 121 of the Organic Law that refers Environment, Hydrographic Basin and Interins- to the content of the Environment Regulation titutional Commission of the Panama Canal on environmental assessments, states that it Watershed was issued pursuant to article 316 must be “taken into account” which is synony- of the Political Constitution, which states that mous with considering the general regulations the Panama Canal Authority will be responsi- in force in Panama, for its incorporation. or not to the regulations of the ACP on said evalua- ble for the administration, operation, conser- tions, but does not oblige to comply with them. vation, maintenance and modernization of the Panama Canal and its related activities and OPINION OF THE ADMINISTRATION that the Panama Canal Authority is responsi- ATTORNEY GENERAL ble for the administration, maintenance, use The Public Prosecutor’s Office considers that and conservation of the Panama Canal. water the articles subject to the aforementioned resources of the watershed of the Panama Ca- lawsuit are not illegal, since it is observed that nal, constituted by the water of the lakes and although the National Environmental Authority, their tributary streams, in coordination with now the Ministry of the Environment, is the body the state organisms that the Law determines. 26 created to attend, manage, take advantage of, This coordination proposed by the constitutio- Legislación y Economía January 2019

nal article 316, is the one that corresponds to 57 of said legal excerta it states in section 3 the Ministry of environment, whose regulatory that the Authority will regulate carrying out of norm is not contradictory to the evaluation work environmental impact studies of works that are carried out by the Panama Canal Authority. planned to be carried out in relation to the canal.

And it is that Article 323 of the Constitu- The Chamber concludes that it is common tion establishes that the regime contai- knowledge that the Ministry of Environment is ned in the Title called “The Panama Ca- the authority in charge of natural resources and nal” may be developed by the Laws that environment, and to administer environmental establish general norms and that the Panama impact assessment process, but it can’t be ig- Canal Authority may regulate these matters. nored that Political Constitution is of greater hierarchy and that the will of the constitutiona- What emerges from the reading of these two ar- list was to assign to the Panama Canal Authori- ticles is that the regulatory power granted to the ty not only the responsibility for the approval of Board of Directors of the ACP is derived from development projects on the banks of the Pana- our Political Constitution that establishes that ma Canal Hydrographic Basin, but also to grant the constitutional regime on the Panama Canal constitutionally the regulatory power about can only be developed by laws that establish the goods and resources that it administers, norms General and that it will correspond to with the purpose of creating a special regime. the ACP itself, through the Board of Directors, to regulate these matters through the exclusi- It is for this reason that they indicate that one ve approval of the necessary regulations for of the purposes of the regulatory faculty is the better functioning, maintenance, conserva- to be able to develop those aspects of the tion and modernization of the Panama Canal. laws that need more detail, or in which the law has been very limited in terms of its con- Therefore, it is evident that Agreement 116 of tent and that the article 323 of the Constitu- July 27, 2006 is in accordance with the provi- tion reiterates that the laws that develop the sions of our Constitution, to which we can point constitutional regime of the Canal will be of out that the regulatory power of the Board of Di- a general nature, to which it becomes neces- rectors of the Panama Canal Authority is It is re- sary through this regulation, to approve norms cognized by means of our maximum legal norm, on the environment, the Hydrographic Basin and by means of the Law that “Organizes the Pa- and the Interinstitutional Commission of the nama Canal Authority”, which also strictly recog- Hydrographic Basin of the Panama Canal . nizes as one of the faculties of the Board of Di- rectors of this entity, that of issuing regulations. And that regarding the phrase “taking into account the regulations in force”, the Chamber On the other hand, it is demonstrated that the agrees with the plaintiff in relation to the opinion Organic Law of the Panama Canal Authority, that this sentence is not mandatory so there is contemplates a series of articles that validate no violation as such, so it was reaffirmed that regulatory faculty of said Authority in matter of the Defendant items are not illegal in any way. environmental impact studies such as article 27 Legislación y Economía January 2019

OF THE CLARIFICATION OF JUDGMENT OUR OPINION On November 15, 2018, the clarification of the We consider that although it is true that the judgment presented by the plaintiff was resol- Ministry of Environment is the entity in charge ved, where the plaintiff intended that the Cham- for all the evaluations and approvals of envi- ber pronounce itself, requesting whether or not ronmental impact studies, it is the authority in the decision contained in the operative part of charge of the natural resources and environ- said Resolution is in accordance with the law, ment created to attend, manage, take advan- since they pointed out that the The Ministry tage of, conserve and administer everything of the Environment is the competent authority Regarding the natural resources of the envi- for all evaluations and approvals of environ- ronment in the National territory, it is also true mental impact studies, urging the revocation that in the case of the natural resources adja- of the same on the basis of the stipulations cent to the Panama Canal watershed, espe- of articles 473 and 1129 of the Judicial Code. cially the water resource, there is a particular situation, since the treatment of To continue To which the Chamber considered that the clari- in these cases is totally special because it is fication of the sentence only proceeds to modify a protected area due to its own environmental or correct the operative part regarding the fruits, characteristics and vital and potentially eco- interests, damages and costs, in addition, to ex- nomic cultural and hydrological resources. plain obscure or double-meaning phrases. But this procedural remedy can’t be used with the It is for this reason that we share the approach purpose that the judge modify, reform or revoke of both the Chamber and the Attorney General’s the main decision or make new assessments re- Office and that, our Constitution is clear in garding the motivations expressed in the ruling. stating that the legislation on “The Panama Canal” will be developed by general rules and And that Article 1129 of the Judicial Code that that they will be regulated by the Authority. of deals with an appeal for reconsideration by the Panama Canal through the Board of Direc- the plaintiff is inadmissible for the judgments tors, thus achieving a better functioning, main- of the Supreme Court of Justice, which ac- tenance, conservation and modernization of cording to Article 206 of our Constitution in- the Panama Canal and its adjacent areas. L&E dicate that they are final, final and binding.

Therefore, one can’t enter to debate the motivations already expressed by this highest justice corporation, to which the judge Abel Augusto Zamorano considered that the aforementioned request for clarification of the sentence presented should be rejected outright as inadmissible. 28 Legislación y Economía January 2019

Politics

Rafael Fernández Lara - Independent Lawyer [email protected]

SOME CONTROVERSIAL FAILURES OF OUR SUPREME COURT OF JUSTICE IN OUR NATIONAL POLICY

The Supreme Court of Justice is the main judicial organization of our country and, in accordance with our Magna Carta, has the function of protecting and safeguarding the judicial rights of the country.

ith the course of time, the Court has played an of us reaches our own conclusions. important role many times in matters related 1. The first case we found was the one re- Wto our national policy, which objectively have ferring to Dr. Belisario Porras Barahona, who originated criteria opposed to their verdicts, was three times President of the Republic of which unfortunately have left much to be said. Panama. Dr. Porras at first disagreed with the separation of Panama from Colombia in 1903, So I wanted to delve into and cite and even refused to accept positions in the some of the disputed verdicts, mentio- organization of our incipient republic, among ning their details slightly so that each them that of the Plenipotentiary Minister be- 29 Legislación y Economía January 2019

fore the Central American governments, and However, others pointed out that the his designation as member of the National suit against Dr. Belisario Porras to remo- Constituent Convention of 1904 by the Pro- ve him as a Panamanian national res- vince of Los Santos, a position he didn’t hold. ponded to purely political purposes. Shortly after independence, Dr. Porras joined On September 1, 1906, the National Assem- the Republic, forming part of a Commission bly of Deputies began its sessions and on of Studies of the Isthmian Canal Conven- September 13, a memorial of Dr. Porras re- tion and in December of 1904 was elected a questing his rehabilitation was submitted for member of the Municipal Council of Panama, consideration. Unanimously, the members of later to occupy the presidency of the same. the Legislative Body restored his status as a Panamanian citizen and declared him “fully Subsequently, on March 14, 1905, the politi- enjoy the rights inherent to that citizenship.” cal opponents of Dr. Porras, including some members of the Constitutionalist Party, sued For those ironies of life Dr. Belisario Porras, him before our highest court of justice, for who at time his political enemies called not having originally accepted independen- him “traitor”, would later be elected three ce according to Article 7, Ordinal 3 of the times constitutional president of the Re- Magna Carta of 1904, which indicated that public of Panama (1912-1916, 1918-1920, Panamanians by birth lost that quality “for 1920-1924 ) and considered by many with not accepting the movement of the Indepen- the nickname of “Architect of the Nation”, dence of the Nation”. Subsequently, through leaving his legacy to many generations of “Agreement Number 54 of November 15, Panamanians, who remember him as the 1905,” the Supreme Court of Justice depri- best President we have had in the country. ved Panamanian citizenship of Doctor Be- lisario Porras “since he had not recovered it 2. Another case related to the subject that because he had not applied to the National concerns us occurred in the elections held on Assembly for his rehabilitation.” This agree- August 5, 1928, when Engineer Florencio Har- ment was approved by four votes, one having modio Arosemena was elected as the sole been denied. This long sentence originated candidate for the Presidency of the Republic a great opposition of the population, headed for the period 1928-1932. At that time, the by the leadership of the Panamanian libera- National Assembly of Deputies was in charge lism, that was pronounced against the same. of electing the Designates (vice-presidents) of the Republic for a period of two (2) years, On the other hand, a sector of the population designating for the biennium 1930 to 1932 considered that the aforementioned ruling was Don Tomás Arias as First Appointed (Vice correct because it complied with the law, ba- President); as second appointee (vice presi- sed on the evidence presented where it was de- dent) to Carlos Laureano López and as third monstrated that Dr. Porras, with his positions appointee (vice president) to Enrique Linares. and actions, didn’t agree with the separation. 30 After 27 months of holding the office of Cons- Legislación y Economía January 2019

titutional President of the Republic, Engineer leaders to prevent him from replacing him. Florencio Harmodio Arosemena was over- Then it was agreed to call the Second Appoin- thrown by a coup d’état by the members of ted (Vice President), Ing. Ernesto Jaén Guar- the civic association Acción Communal. The dia, to take charge of the presidency. Upon president was forced to resign. When resig- taking office, Ing. Jaén confirmed his brother- ning, it should be replaced in its order by the in-law Ricardo Adolfo de la Guardia as Mi- Designates (Vice-Presidents) elected for the nister of Government and Justice in the go- period 1930 and 1932 already mentioned. vernment, and then resigned as president of As the first two Designates (Vice-Presi- the republic, with which the Cabinet Council dents) were rejected by the insurgents and appointed Ricardo Adolfo de la Guardia as In the third one-the honor of one of the prota- charge of the Executive Body, based on Arti- gonists of the uprising, refused to occupy cle 116 of the National Constitution of 1941. the position, then sought a supposed “constitutional” exit to the political mammoth. All this despite the existence of a Third De- signated (Vice President), the Licdo. Aníbal The Supreme Court of Justice, surprisingly Ríos Delgado, who was responsible for ta- and inconceivably, declared election of tho- king office as President, but he was exercise Designates (Vice President) unconstitu- sing the position of Ambassador of Panama tional and put into effect those elected for in Peru and under threat of being arrested the previous biennium, from 1928 to 1930, and brought to trial for common crimes “applying by analogy Article 67, ordinal 4 was not allowed to return to the country to of the National Constitution, correspon- occupy the first magistracy of the nation. ding then to be in charge of the Presiden- cy to the Dr. Ricardo J. Alfaro, in his con- Despite all these anomalies, in 1941 our Su- dition of First Appointed (Vice-president). preme Court of Justice, through “Agreement No. 72”, legitimized the overthrow of Presi- 3. Another example that we contemplate hap- dent Arnulfo Arias Madrid, through the fo- pens after Dr. Arnulfo Arias Madrid was elec- llowing considerations: “1. That Dr. Arnulfo ted President of the Republic, as the only can- Arias Madrid, President of the Republic, has didate, in the elections held on June 2, 1940. unexpectedly absented himself from the In the following year, on October 9, 1941, country, leaving such office in vagueness “; President Arias traveled to Havana, Cuba “two. That it has not been possible to find the and while he was out of the country, he was whereabouts of the First Appointed to be in overthrown from office of President of the charge of the Executive Power “; “3. That it is Republic, by his Minister of Government and not possible, it is not convenient for the inter- Justice and also Commander of the National ests of the country that the position of Head Police. His first appointee (Vice President), of the Executive Power continues in accla- Dr. José Pezet Arosemena, had to replace Dr. mation. “ “Agrees: Call the Second Designee Arias, however he was imprisoned by coup to be in charge of the Executive Power and 31 Legislación y Economía January 2019

hold the office in accordance with the Cons- that in the character of Second Vice-president titution.” Without the slightest doubt, all this it assumes possession of the position of Pre- “constitutional” ruse, endorsed a coup d’état. sident of the Republic before the National As- sembly in the terms that they indicate the Ar- 4. On May 11, 1952, the presidential elections ticles 141, 149 and 152 of the Constitution “. were held, with the former National Police Commander, Colonel José Antonio Remón This Resolution was interpreted by the majo- Cantera, achieving the electoral triumph for rity of the Assembly as an indicator that after President of the Republic; the first Vice Pre- the Guizado President could be tried by the sident was José Ramón Guizado and the Se- same Chamber, not only for common crimes cond Vice President Ricardo Manuel Arias but also for political crimes. The Assembly Espinosa. In the exercise of his constitutio- then tried the Guizado President and on March nal mandate, on January 2, 1955, in the early 29 issued a guilty verdict against the Guizado hours of the night, Colonel José Antonio Re- Engineer with the adherence to the sentence món Cantera was assassinated at the Natio- of 43 deputies. The remaining eight (8) de- nal Hippodrome Juan Franco in Panama City. puties objected and formulated a Vote Res- cue for the innocence of President Guizado. On the same night as Colonel Remón died, First Vice President José Ramón Guizado took The National Assembly in judicial functions the constitutional oath as President of the Re- condemned José Ramón Guizado “to suffer public. On January 14, who originally pleaded the penalty of principal of ten years of im- guilty to the murder involved President Gui- prisonment, the sentence being reduced to zado, saying that “he and I are responsible.” six years eight months”, “to the dismissal of the office of Constitutional President of the The President Guizado, having knowledge of Republic” and “ to the accessory penalty of statements that involve him, requested a li- interdiction of public functions for the same cense to separate himself from the position time, that is, six years and eight months “. of Chief Executive. The National Assembly, in session held on the night of January 14, 1955, After the conviction, the Panamanian lawyer after hearing the files containing the charges, Alejandro Piñango requested declaring un- issued Resolution No. 35 denying the license constitutional the Resolution No. 35 of request and ordering the arrest of the President January 5, 1955 issued by the National As- of the Republic and “Suspend the Engineer sembly and the “Supreme Court of Justice, José Ramón Guizado referred to the position in exercise of its constitutional powers, in of President of the Republic under Article 2309 agreement with the Supreme Chief of the of the Code of Procedure “as follows:” Order Public Ministry, declares that there is no the arrest in accordance with Article 2091 of place to make the declaration of unconsti- the Judicial Code for having merit for it “and” tutionality demanded. “ That is to say, the Call the citizen Mr. Ricardo Arias Thorough so Supreme Court of Justice confirms the com- 32 Legislación y Economía January 2019

petence of the National Assembly to prose- administration were supporters and friends of cute former President José Ramón Guizado. the president and who changed under the pressure of the head of the new political alliance In 1957, during the following administration, formed to support the opposition candidate in of Don Ernesto de la Guardia, the alleged the 1968 elections--, judged President Robles material author of the assassination was based on the arguments presented above and acquitted by a jury of conscience. Then the dismissed him on March 24, 1968 in a hurried competent authorities proceeded to order the process, with a vote of 30 votes against the release of the prisoner president, José Ra- President, 11 in favor and one save of vote. món Guizado, who had been condemned as They took advantage of the fact that the Ju- the alleged mastermind of the murder, and no dicial Branch was on vacation in March 1968. doubt that opinion put the National Assembly in a difficult position in our national history. Faced with the decision taken by the National Assembly of Deputies to dismiss President 5. In the electoral elections held on May 10, Robles, supporters and defenders presented 1964, the three candidates were favored, hea- an appeal for Constitutional Guarantees Am- ded by Mr. Marco Aurelio Robles Méndez as paro before the Municipal Judge on duty, who President of the Republic, Mr. Max Delvalle received it and kept it until the Supreme Court as First Vice President and Mr. Raúl Arango of Justice will resume its functions on the fo- Navarro as Second Vice President. At the llowing April 1. The National Guard communi- beginning of the administration of President cated publicly that by order of the Second Mu- Robles, the great majority of the members of nicipal Judge all actions by the Deputies were the National Assembly of Deputies suppor- suspended until the Constitutional Guaran- ted his administration, as a corollary of the tees Appeal was decided in its fund as of the different political parties that supported him month of April, when the plenary of the Supre- in the 1964 elections. Later, near the end of me Court of Justice He rejoined his vacation. the President’s term Robles, the presidential candidate of the Christian Democratic In the following days, once the judicial Party, presented an accusation against the functions were resumed, the Supreme Court President before the National Assembly of Justice admitted the Appeal of Amparo of for alleged overstepping of constitutional Constitutional Guarantees proposed by the functions, for the excessive support he had lawyer Cristóbal Garrido Romero in favor of for the government candidate, Eng. David Mr. President Robles. The Supreme Court ru- Samudio Avila, accusation that was admitted ling stated that “For this reason and in respon- by the President of the National Assembly. se to all the considerations raised, the Supre- me Court of Justice - Plenary” ... “grants the The Legislative Body was then summoned to Constitutional Guarantees Protection propo- judicial sessions and began trial against Pre- sed by Lic. Cristóbal Garrido Romero in favor sident Marco A. Robles by decision of the ma- of the President of the Republic, Marco Aurelio Robles, and consequently REVOKES the con- jority of deputies - who at the beginning of his 33 Legislación y Economía January 2019

tested act through which the National Assem- as guarantor of the freedoms and rights of ci- bly decided to accept and process as accu- tizens and public and institutional order, we sation the complaint presented by Dr. Antonio have decided to return the Nation to the consti- González Revilla against the President of the tutional order, substituting the usurper regime Republic, Mr. Marco Aurelio Robles, for viola- for a Provisional Government that is in charge te the Article of the National Constitution “. of the powerful task of restoring the empire of the Constitution and laws, assuring the coun- There were eight (8) votes in favor and one (1) try a regime of freedom, law and democracy. “ salvage of vote. Therefore, the Supreme Court declared the proceedings vitiated by nullity, Such ‘provisional government’ establishes revoking the actions of the National Assembly the aforementioned Statute of the Gover- and ordered the file to be kept, thus maintaining nment on October 17, 1968, and it is sued Marco A. Robles as President of the Republic. as unconstitutional by the Attorney Roque J. Gálvez before the Supreme Court of Jus- 6. In the electoral tournament of May 12, 1968, tice. For its part, the Supreme Court of Jus- in an atmosphere of unrest and acts of violen- tice, when making the considerations in ce, the electoral victory of Dr. Arnulfo Arias Ma- relation to the declaration of unconstitu- drid was achieved. On October 1, 1968, for the tionality presented, stated the following: third time, he took office as Constitutional Pre- “It is therefore declared that the Revolution sident and then adopted measures in what he of October 11, 1968 has instituted a law or- called “completely cleaning the government’s der especially for the following reasons: a. It institutions.” But unjustly also deprived some has not repealed the Constitution; b. It has opposition MPs of their seats, a decision that been effectively accepted by public opinion caused discomfort in a sector of the popula- and maintains the order and security of the tion. Only 11 days after serving as the 35th Country; c. In function of government, it has President of the Republic, Dr. Arnulfo Arias a long duration and absolute stability; and d. Madrid is deposed by a coup d’etat on Octo- ber 11, 1968 at night, led by the National Guard It has obtained the recognition of the gene- in a movement headed by Major Boris Martí- rality of the foreign governments with which nez and other officers of the military entity. the Republic maintains diplomatic relations.”

Immediately after the coup, a “Provisional Go- “Therefore, it is absurd to impetrate a decla- vernment Junta” was established, according ration of unconstitutionality of the basic ins- to them to prepare the climate for the return trument of the revolutionary government.” to democratic order. The leaders and officers “In the merit of above, the PLENARY of the of the armed institute explained the reasons Supreme Court of Justice, in the exerci- that prompted them to make their decisions se of its constitutional powers and in ac- by stating the following: “It is in obedience to cordance with the request of the Assis- these principles and to this irrevocable respon- tant Prosecutor, REJECTS PLANNED the sibility that corresponds to the Guard National claim made.” (Eight magistrates sign). 34 Legislación y Economía January 2019

Undoubtedly the examples presented show us that these judgments took political considerations primarily on the legal arguments when deciding on the situations described. The application of the law in all these examples was folded to the most convenient political circumstances at the time. It leaves a lot to say then the proceeding of our Supreme Court of Justice, which with its behavior in all these cases harms the rule of law and accomplishes something very negative, that the trust in justice is lost due to its lack of inalienable values such as respect , equity and equality of liberties.

The aforementioned issues cause institutional pain and outrage and reminds us that when making decisions, the magistrates of our highest court of justice should not be subordina- ted to politics and politicians, because if the judicial function is corrupted and it is mocking all the trust that the State and society deposi- ted in them. It is highly convenient to remember and insist that political countermeasures should be resolved in the particular environment of politics, since the judicial authority has its own sphere of action, which is to define political disputes with the force of legal truth.

The most unfortunate of these controversial decisions is that not only the Supreme Court of Justice didn’t perform within the strict framework of the law and the legal logic that should support its rulings, but it also endorsed in some of these cases, the legitimation of state. Let it be clear, coups d’état represent one of the most abomina- ble crimes against democracy and the rule of law, and legitimizing them provided a supposed and arbitrary constitutional garb. L&E 35 Legislación y Economía January 2019

Panamanian

Source: MEF

PANAMA ACHIEVES POSITIVE EVALUATION ECONOMY

he Forum on Pernicious Fiscal Practices of Pacific, City of Knowledge and the Law that esta- Tthe BEPS Action Plan, coordinated by the Or- blishes the method to calculate the rent subject to ganization for Economic Cooperation and De- a tax exemption or preferential treatment for the velopment (OECD), granted Panama a positive assignment or exploitation of intangible assets. rating in the evaluation of Panamanian regimes. On the other hand, Panama did not repeal or The ruling is a product of the progress made abolish its preferential regimes, but rather, it by Panama in adapting its legislative fra- produced changes so that the benefits that mework to avoid the erosion of the tax ba- these give to companies are applied when ses and the transfer of benefits, with empha- the entity in question carries out a substan- sis on geographically mobile activities. tial activity in the country that justifies it.

Through the evaluation process, special re- In addition, during the last biennium, the gover- gimes were reviewed in more than one hun- nment team worked in consultation with the dred and twenty-six jurisdictions, which, private sector, in the necessary adjustments to like Panama, had the opportunity to be eva- the regimes under review, which produced chan- luated working under equal conditions. ges that guarantee the country’s compliance, maintains employment, favors the investment The country achieved the qualification of not climate, and the competitiveness of the econo- 36 pernicious in following special regimes: Head- mic operators of the Panamanian regimes. L&E quarters of Multinational Companies, Panama- Legislación y Economía January 2019

COMMENTARY ON THE CONSUMER PRICE INDEX (CPI): DECEMBER 2018

Source: GCRP

The groups that showed declines in the Natio- ses. The biggest variation was in the “Tools nal Urban CPI for December compared to No- and large equipment” class with -1.9%, due to Lvember 2018 were: Transportation with -2.8%; the reduction in the price of tools for the home. Alcoholic beverages and tobacco with -1.9%; Furniture, articles for the home and for the ordi- The decrease observed in group Housing, nary conservation of the home with -0.3%, and water, electricity and gas, was due to the Housing, water, electricity and gas with -0.2%. decrease recorded in two of its eight classes. The class with the greatest variation The decrease reflected in the Transport group was “Gas” with -2.1%, due to the reduc- was due to the decrease in two of its se- tion in the price of the 100-pound gas tank. ven classes. The greatest variation was in the class “Fuels and lubricants for personal The Apparel and Footwear, Communica- transportation equipment” with -9.0%, due to tions, Recreation and Culture, and Edu- the reduction in the price of automotive fuel. cation groups remained unchanged.

The group Alcoholic beverages and tobacco The groups with positive variations were: presented low in its four classes. The class with Food and non-alcoholic beverages; Health; the greatest variation was “Beer” with -3.0%. Restaurants and hotels, and Miscella- neous goods and services all with 0.2%. The group Furniture, articles for the home and Increase observed in group Food and non-alco- for the ordinary conservation of the home holic beverages, was due to increase registered showed decrease in eight of its eleven clas- in seven of its eleven classes. Greatest variation 37 Legislación y Economía January 2019

was in “Legumes-Vegetables” class with 1.2%, MONTHLY INDEX OF ECONOMIC due to increase in price of pulses and tubers. ACTIVITY, NOVEMBER 2018

The Health group showed rise in three of its seven The Monthly Index of Economic Activity (IMAE) in classes. The class with greatest variation was the Republic, for January-November 2018, grew “Medical Services” with 1.4%, due to the increase reflected in the price of medical consultations. by 3.18% compared to the same period of 2017.

The increase presented in the group Restau- The interannual monthly variation refe- rants and hotels is the result of the increase in rring to November 2018 was 3.49%, compa- one of its two classes, “Restaurants, cafés and red to its similar one of the previous year. similar establishments” with 0.2%, due to the increase in the price of alcoholic beverages outside the home and meals prepared to take away. In the period of January-November, the main categories of economic activity that showed a The increase registered in the group Mis- favorable behavior were: transport, storage and cellaneous goods and services was the re- communications, electricity and water, and trade. sult of the increase in six of its ten classes.

The class with the greatest variation was The commercial activity registered a “Other services n.e.p.” with 0.6%, due to the good performance, mainly, in the who- increase in the price of funeral services. lesale trade and the Colon Free Zone.

• The National Urban CPI for De- Transportation and communications services cember 2018 compared to its similar presented a favorable performance, mainly for 2017 reflected a variation of 0.2%. due to the performance of the Panama Ca- When comparing the National Urban CPI of nal, the container movement of the TEU Na- December 2018, with its similar of 2017, the tional Port System and telecommunications. following increases were observed: Educa- tion 3.8%; Restaurants and hotels 2.7%; Health The production of electricity and water 1.0%; Food and non-alcoholic beverages, supply category reported a positive re- Alcoholic beverages and tobacco, and Mis- sult, favored by greater generation of re- cellaneous goods and services all 0.7%; newable energy, hydroelectric, wind and solar. Housing, water, electricity and gas, and Fur- niture, articles for the home and for the or- On the other hand, some activities that showed dinary conservation of the home both 0.3%. a lower rate of incidence were those of the agricultural sector, fishing, manufacturing pro- The groups that showed decreases were: Trans- port -1.6%; Clothing and footwear -1.3%; Commu- duction and leisure and entertainment. L&E nications -1.2%; and Recreation and culture -0.3%.

38 Legislación y Economía January 2019

ORANGE ECONOMY: New economic growth opportunity without affecting the environment

Virginia Medina - Marketing and Advertising [email protected]

WHAT IS ORANGE ECONOMY? 2. Support areas for creativity. Activities based The orange economy is the set of activities that in on creativity and differentiation. a chained way allow ideas to be transformed into The foregoing is explained by Felipe Buitrago cultural goods and services, whose value is de- Restrepo, consultant of the Division of Cultural termined by their content of intellectual property. Affairs, Solidarity and Creativity of the Inter- American Development Bank (IDB), which is According to John Howkins, specialist in the the author of the study on the orange economy. subject of the “creative industries”, he affir- med that the “creative economy” includes 7i: IDEAS FOR THE DEVELOPMENT the sectors in which the value of goods and OF THE ORANGE ECONOMY services is based on intellectual property. In policy design there are no magic formu- The activities of Orange economies ran- las. However, the work of pioneer people ge from architecture, visual and perfor- and organizations always serves as a guide. ming arts, handicrafts, editorial design, and even covers film, music, fashion and toys. 1. Information: The deficiency of information is the original sin of the Orange Economy.

HOW IS ORANGE ECONOMY COMPOSED? 2. Institutions Institutions as mechanisms of cooperation and coordination for the pro- 1. The cultural economy and the creative indus- gress of the Orange Economy have been cons- tries, in whose intersection are the conventio- picuous by their absence in the strategic de- nal cultural industries. bates on economic and social development. 39 Legislación y Economía January 2019

3. Infrastructure: Although it is repetitive, For the individual to be inspired, I have both in the Orange Economy access is key (virtual models to follow and models to defeat; you or physical), Access and contact are the fundamental catalysts to generate the innova- need the opportunity to know the work of tion that is derived from the cross-fertilization of ideas, uses, interpretations, customs, etc. other creatives; You need to examine the past, interpret the present and dream the future. 4. Industry: Talking about industry in the Oran- ge Economy is talking about maintaining the ba- lance of an ecosystem, linking the early training Currently in the Chamber of Commerce and of talent, the basic tools for managing money. Perhaps the main thing is to recognize that many Industry of Panama are the first meetings to people in the culture and creativity sector hate to talk about money, which is necessary for them form commissions from all areas related to to learn as much and as quickly as possible. the creative industries with the purpose of

5. Integration: Nowadays, the nature of creating a movement and a work team so that content consumption is niche (segment or we can be at levels of neighboring countries group of people with homogeneous characteristics and needs). Thanks to the internet, as Colombia, which You have taken this is- the niches no longer know about geogra- sue very seriously in the work of the govern- phy. You have to integrate the neighborhood

and stop fearing the regional competition. ment of President Iván Duque Márquez. L&E

6. Inclusion: The activities of the Oran- ge Economy have a proven capacity to generate or regenerate the social fabric, from the possibility of creating alternative iden- tities to young people who are at risk of fa- lling into the temptation of drugs or crime.

7. Inspiration: Creativity does not hap- pen in a vacuum. The creative needs the opportunity and the incentives to assu- me the 10,000 hours of practice that are needed to become an overnight success.

Innovation + imagination + instruction + incentives + individual= Inspiration

40 Legislación y Economía January 2019

World

Source: World Bank

LITTLE AUSPICIOUS PERSPECTIVES: WORLD ECONOMY WILL DECREASE TO 2.9% IN 2019 WITH WEAKENING OF COMMERCE AND INVESTMENT ECONOMY

ccording to projections, world economic have experienced considerable pressures. Agrowth will fall from 3% (downward revi- sed figure) in 2018 to 2.9% in 2019, amid According to the Global Economic Prospects growing adverse risks from the economic report of January 2019, the growth of advan- outlook, according to World Bank state- ced economies is expected to fall to 2% this ments. International trade and manufac- year. The decline in external demand, the Innovation + imagination + instruction + incentives + individual= Inspiration turing activity have eased, trade tensions rising cost of debt and persistent policy un- remain high and the financial markets certainty are expected to influence the pros- of some of the large emerging markets pects of emerging market and developing 41 Legislación y Economía January 2019

economies. It is expected that in 2019 the sions could result in lower global growth and growth of this group of countries will remain disrupt globally interconnected value chains. stable at 4.2% (a lower rate than anticipated). “At the beginning of 2018, the world economy “Solid economic growth is essential to re- was moving at full speed, but it lost speed duce poverty and boost shared prosperity,” during the year and the trip could become said Ceyla Pazarbasioglu, vice president of even more eventful this year,” said Kristali- Equitable Growth, Finance and Institutions na Georgieva, general director of the World of the World Bank Group. “Faced with a less Bank. “As economic and financial difficulties auspicious global economic outlook, and in increase for emerging and developing coun- order to face the current uncertainties and tries, global progress in reducing extreme revitalize growth, it will be fundamental to poverty could be threatened. To maintain strengthen contingency planning, facilita- momentum, countries must invest in people, te trade and improve access to financing.” promote growth and build resilient societies.” Analytical chapters of the report address The economic recovery in countries that ex- important current issues: port basic products has stagnated, while the activity of the countries that import these • The informal sector represents around 70% products is slowing down. In 2019, per capi- of employment and 30% of gross domestic ta growth will not be enough to shorten the product (GDP) in emerging market and de- income gap with advanced economies in veloping economies. Given that this sector about 35% of emerging market and develo- is associated with lower productivity and ping economies, a percentage that will increa- lower tax revenues, as well as with a higher se to 60% in the case of countries affected level of poverty and inequality, these figu- by the crisis. fragility, conflicts and violence. res are symptomatic of lost opportunities. Reducing the tax and regulatory burden, im- Several events could further slow down eco- proving access to financing, providing better nomic activity. The increase in borrowing education and better public services, and costs could depress capital flows and cau- strengthening public revenue frameworks se a slowdown in growth in many emerging could help to equalize the conditions bet- market and developing economies. The in- ween the formal and informal sectors. crease in public debt and private debt in the past could increase vulnerability to changes • Vulnerability to debt in low-income coun- in financing conditions and the attitude of tries is increasing. Although indebtedness the market. The intensification of trade ten- has allowed many countries to meet im- 42 Legislación y Economía January 2019

portant development needs, the median world price of wheat and corn. This increa- debt / GDP ratio of low-income countries se brought poverty to 8.3 million people (al- has increased and the composition of debt most 1% of the poor population worldwide). has been oriented towards higher-cost financing sources based on the market. “Policymakers will have two important priori- ties for overcoming problems associated with These economies should focus on mobilizing informality in developing economies: desig- domestic resources, strengthening debt and in- ning tax and social policies to match the con- vestment management practices, and establis- ditions between the formal and informal sec- hing more resilient macro-fiscal frameworks. tors, and strengthen mobilization of internal and external income. debt management,” said • There is no guarantee that historically low the director of the World Bank’s Development and stable inflation rates can be maintained Perspective Analysis Group, Ayhan Kose. in emerging market and developing econo- “In the face of a gloomy economic outlook, mies. The cyclical pressures that have kept these efforts become even more important.” inflation low in the last decade are gradually dissipating. The long-term factors that have Regional perspectives: contributed to reducing inflation in the last 50 years - world trade and financial integration, East Asia and the Pacific: East Asia and the and the widespread adoption of sound mone- Pacific remains one of the fastest growing tary policy frameworks - may lose momentum developing regions in the world. Growth in or reverse. Keeping world inflation low can be this region is expected to moderate to 6% in as difficult as having succeeded in lowering it. 2019, based on a generalized stabilization of commodity prices, a moderation of world • Policies aimed at mitigating the effects of demand and trade and a gradual hardening fluctuations in world food prices can have of the conditions of financing worldwide. unintended consequences if many govern- According to forecasts, in China growth will ments implement them in an uncoordinated slow down to 6.2% this year, while the in- way. Government interventions may provide ternal and external rebalancing continues. temporary relief, but widespread adoption of measures is likely to exacerbate escalating It is anticipated that growth in the rest of food prices, affecting poor more strongly. For the region will reach 5.2% in 2019, as the example, trade policies applied during 2010- resilience of demand compensates the ne- 11 food price rise may have accounted for gative impact of the decline in exports. In more than a quarter of the increase in the Indonesia, growth is expected to remain sta- 43 Legislación y Economía January 2019

ble at 5.2%. The expansion of the Thai eco- nada. It is predicted that Argentina will con- nomy is expected to slow to 3.8% in 2019. tract 1.7% as the deep consolidation of the fiscal situation produces a loss of jobs and Europe and Central Asia: The persistent a reduction in consumption and investment. effects of financial stress in Turkey are expected to impact regional growth this year and re- Middle East and North Africa: Growth in this duce it to 2.3%. In that country, a weakening of region is projected to increase to 1.9% in 2019. economic activity and a deceleration of growth to 1.6% are expected due to high inflation, high Despite the slowdown in global trade growth interest rates and lack of confidence, which and the tightening of external financing condi- will moderate consumption and investment. tions, domestic factors are expected to in particular, policy reforms-will boost growth in the Excluding Turkey, a slowdown in growth is region. This year a slight upturn in the growth projected in the western part of the region. of the oil-exporting countries is expected, as In Poland, growth is expected to slow to 4% the countries of the Gulf Cooperation Council with the slowdown in growth in the euro area. as a whole accelerate their growth, from 2% in Slower growth is anticipated in the eastern 2018 to 2.6% this year. A contraction of 3.6% part of the region, as the growth of the ma- of Iran’s growth in 2019 is expected as a re- jor economies, including the Russian Fede- sult of the sanctions imposed on that country. ration, Kazakhstan and Ukraine, slows down. Algeria’s growth is projected to fall to 2.3% Latin America and the Caribbean: Accor- as the increase in public spending last year ding to projections, this region will grow at decreases. Growth in Egypt is expected a rate of 1.7% this year, supported mainly by to accelerate to 5.6% this year, as a result a rebound in private consumption. Brazil is of investment support through reforms ai- expected to expand by 2.2%, assuming that med at strengthening the business clima- fiscal reforms are introduced quickly, and te and as private consumption rebounds. that the recovery of consumption and investment exceeds the cuts in public spending. South Asia: Growth in this region is expected to accelerate to 7.1% in 2019, supported In Mexico, uncertainty in policy and the pers- by the increase in investment and strong con- pective of still weak investment are expec- sumption. Growth in India is projected to in- ted to maintain growth at a moderate rate crease to 7.3% in 2018/19 due to the persis- of 2%, despite less uncertainty regarding tence of strong consumption and investment trade after the announcement of the Treaty growth. Bangladesh’s growth is expected to 44 between Mexico, the United States and Ca- slow to 7% in that same year, with economic Legislación y Economía January 2019

activity backed by strong private consumption and infrastructure spending. According to projections, growth in Pakistan will slow to 3.7% in fiscal year 2018/19, and financing conditions will be hardened to help offset rising inflation and external vulnerabilities.

It is anticipated that growth in Sri Lanka will accelerate slightly to reach 4% in 2019, backed by strong domestic demand and boosting investments related to infrastructure projects. In Nepal, the impetus generated after the ear- thquake is expected to moderate, and growth should fall to 5.9% in the 2018/19 fiscal year.

Sub-Saharan Africa: In this region, growth is expected to increase to 3.4% in 2019, as a result of less policy uncertainty and improved investment in large economies, in addition to a solid continued growth in countries that are not rich in resources. In Nigeria, growth is expected to increase to 2.2% in 2019; it is assumed that oil production will recover and that a slow improvement in private demand will restrict the growth of the non-oil industrial sector. Angola is expected to grow 2.9% in 2019 as a result of the recovery of the oil sector as new oil fields begin to operate and the reforms boost the business environment.

According to projections, South Africa’s growth will accelerate moderately at a rate of 1.3%, amid constraints on domestic demand and limited public spending. L&E

45 Legislación y Economía January 2019

46 Legislación y Economía January 2019

EXPORTS FROM LATIN AMERICA AND THE CARIBBEAN RISE, BUT AT A LOWER RHYTHM

Source: Inter-American Bank

xports from Latin America and the Ca- pared to the same period of the previous year. Eribbean increased 9.9 percent in 2018 Mexico and the Caribbean had a positive ex- and reached its highest level in six years, port performance that failed to compensate although in a context of greater downsi- for the slowdown in South America, accor- de risks in the future, according to a report ding to the latest version of the series of Tra- from the Inter-American Development Bank. de Trends Estimates: Latin America and the Caribbean. The report analyzes the commer- The region managed to export US $ 1.08 trillion cial performance of Latin America and the Ca- - close to its historic high of 2012. However, ribbean, its main subregions and countries. the increase was lower than the 12.2 percent registered in 2017 and lower than the growth The fall in the prices of agricultural pro- of world trade, which rose 11.6 percent. per- ducts and minerals impacted the perfor- cent in the January-September period com- mance of South America, which was partia- 47 Legislación y Economía January 2019

lly offset by an increase in the price of oil. Prices and volumes of exports “The evolution of exports from Latin Ame- In terms of prices, 2018 reversed a positive trend rica and the Caribbean continues to be po- in prices of important commodities in the region’s sitive,” said Paolo Giordano, principal eco- export basket. Bearish pressures, in addition to nomist at the IDB’s Integration and Trade responding to specific factors of each market, Sector and coordinator of the study, “although were motivated by the strengthening of the dollar. the tendency to decelerate occurs in a context of greater external risks that could con- Copper saw its price drop 6.1 percent in the tribute to deteriorate export performance “. January-November period, compared to the same period in 2017. Soybeans fell by 4.3 percent Risk factors include lower growth in the global eco- in the same period, coffee fell by 16.4 percent, nomy, higher interest rates, greater financial un- and sugar accumulated a loss of 23.4 percent. certainty, and more commercial tensions among The export volumes, which had accelerated large global players, according to the report. markedly in 2017 with an average rate of 4 percent, registered a significant deteriora- China remained an important engine for ex- tion in 2018 and it is estimated that expan- ports from Latin America and the Caribbean. sion was only 2 percent, according to data Shipments to the Asian giant increased 24.2 available for nine countries in Latin America. percent in 2018, above increase in sales to the United States (increase of 8.6 percent) Mexico and Chile were the only countries in and intraregional exports (7.8 percent). Sales the region that showed improvements in the to European Union rose by an average of 10.6 performance of real exports. In Mexico, in percent, but slowed markedly in the second 2017, the expansion of volumes had been 8 half of 2018 and remained virtually stagnant. percent, and in 2018 it is estimated that they grew 9 percent. While Chile reversed the 2 per- The Caribbean recorded an estimated 22.4 cent retraction recorded in 2017 and expanded percent increase in its exports in 2018. the quantities exported by 7 percent in 2018. South America was characterized by an estimated increase in external sales of 8.9 per- The Trade and Integration Monitor report pu- cent, marking a sharp slowdown from the blished in November includes recommen- 15.1 percent in 2017. In Mesoamerica it is dations to increase the competitiveness of estimated that exports grew 10.6 percent. Latin American exports in the context of a 48 more challenging external environment. L&E Legislación y Economía January 2019

49 Legislación y Economía January 2019

POVERTY IN LATIN AMERICA STAY STABLE IN 2017, BUT INCREASED EXTREME POVERTY, REACHING ITS HIGHEST LEVEL SINCE 2008, WHILE INEQUALITY HAS BEEN REDUCED APPRECIABLY SINCE 2000

Source: ECLAC

he general poverty rate -measured by inco- of the regional organization of the United Na- me- remained stable in 2017 in Latin Ameri- tions, at a press conference in Santiago, Chile. Tca, after the increases recorded in 2015 and According to the Commission’s projections, in 2016, however, the proportion of people li- 2018 poverty would fall to 29.6% of the popu- ving in extreme poverty continued to grow, lation, which is equivalent to 182 million people following the trend observed since 2015, re- (two million less than in 2017), while the extreme ported today the Economic Commission for poverty rate would remain at 10, 2%, that is, 63 Latin America and the Caribbean (ECLAC). million people (one million more than in 2017).

In 2017, the number of people living in poverty “Even though the region achieved important reached 184 million (30.2% of the population), advances between the past decade and the of which 62 million were in extreme pover- middle of the present one, since 2015 the- ty (10.2% of the population, the highest per- re have been setbacks, particularly in terms centage since 2008), according to the Social of extreme poverty,” warned Alicia Bárcena, Panorama of Latin America 2018 report pre- who, faced with the challenges faced, called 50 sented by Alicia Bárcena, Executive Secretary for the promotion of complementary public Legislación y Economía January 2019

policies of social protection and labor inclu- and 2014, of 0.8%, and between 2014 and 2017, sion and redistributive as regards income. of 0.3%. Social protection systems have played When analyzing the countries with the greatest an important role in recent years to contain dis- reductions in poverty in the period 2012-2017, tributive deterioration, according to the agency. it is observed that in Chile, El Salvador and the Despite the context of fiscal adjustments, social Dominican Republic, the increase in labor inco- spending by central governments is the main me in low-income households was the source component of total public spending (51.4% in that contributed the most to this decrease, whi- 2016), the Commission points out. Public sole in Costa Rica, Panama and Uruguay the main cial spending by the central government of 17 factor was the pensions and transfers received Latin American countries reached, as a simple by low-income households. “This corroborates average, 11.2% of GDP in 2016, a slight increa- the importance of providing more resources to se compared to 2015 and the highest level sin- the population living in poverty, combining the ce 2000. In per capita terms, social spending strengthening of labor income with the provi- average of Latin American countries practically sion of public transfers and the strengthening doubled between 2002 and 2016, reaching $ of social protection systems,” says ECLAC. 894. However, there is a high degree of hete- rogeneity among countries and there are still Due to the update, in 2015, of the methodolo- great challenges in financing social policies to gy used by ECLAC to measure monetary pover- achieve the goals of the 2030 Agenda for Sus- ty, and the subsequent revisions made by the tainable Development, especially in countries agency, the figures included in this edition of that have higher levels of poverty and other the Social Panorama differ from those disclo- deficiencies in terms of social development. sed in the last report published in December of 2017 and in previous. The report also highlights To progress towards increasing levels of that income inequality has been reduced. in participation in the benefits of develop- the region since the beginning of the 2000s. ment and in exercise of rights, it is neces- The simple average of the Gini indexes (where sary to progress simultaneously in social 0 represents absence of inequality and 1 maxi- inclusion and labor inclusion of the popula- mum inequality) of 18 countries in Latin Ame- tion through active policies, stresses ECLAC. rica fell from 0.543 in 2002 to 0.466 in 2017. On average, around 40% of the employed popu- However, , the rate of reduction slowed in recent lation of Latin America receives labor income years: between 2002 and 2008 the average annual below the minimum wage established by their decrease of the index was 1.3%; between 2008 country and that proportion is much higher 51 Legislación y Economía January 2019

among women (48.7%) and young people between 15 and 24 years ( 55.9%). Among young women that figure reaches 60.3%. It is necessary to implement universal policies sensitive to differences to close the access gaps that affect different groups of the population, as well as to recognize the scenario of new and old risks that affect society as a whole, says the Commission.

In 2017, the participation of women in the labor market remained lower than that of men, 50.2% and 74.4% respectively, while in that same year female unemployment (10.4%) remained unchanged. over that of men (7.6%). More than half of employed women (51.8%) are employed in low productivity sectors and 82.2% of them are not affiliated or don’t contribute to a pension system.

The low participation of women in paid work contrasts with their high participation in unpaid work for their own home: in Latin America, 77% of unpaid work is done by women, according to data from the surveys use of time. “Without ade- quate public policies that address key issues such as the training and employment of women in the areas of science, technology, engineering and mathematics, which help to avoid the pre- cariousness of jobs and promote co-responsibility in systems of care, Women can not only lose the benefits of the jobs of the future, but also run the risk of perpetuating the existing gaps and the deficits in decent work that currently

affect them.” the document concludes. L&E

52 Legislación y Economía January 2019

THE ILO, CLOSER TO PEOPLE

Source: ILO

hile celebrating its centennial, the ILO people, from gender equality and youth employ- Wannounced the global campaign “The ILO, ment, to climate change and artificial intelligen- closer to the people”, to demonstrate the ce. Through a series of graphic elements and relevance of the founding mandate of the Or- animated images, the campaign is designed ganization with contemporary challenges and to be adapted to the local context and disse- its central role in building a fairer future for all. minated in public spaces and social networks.

“The search for work and work itself affects The campaign materials were designed to all aspects of our lives, however, many do not be flexible and can be used in posters, public know the international organization that, since transport, magazines and websites. In addi- 1919, has helped shape the world of work. Our tion, a series of cards and GIF ready to be goal, through this global outreach initiative, is disseminated on social networks are availa- to show how the ILO has improved and continues to improve the experience of people in the world of work,” said the Director of Commu- nication of the ILO, Martin Murphy.

The campaign highlights 25 issues that concern the daily life of 53 Legislación y Economía January 2019

ble to the public, with the use of the # ILO100 to the public, with the use of the # ILO100 tag. tag. While celebrating its centennial, the ILO announced the global campaign “The ILO, All materials contain a link to a new inte- closer to the people”, to demonstrate the re- ractive website - www.ilo.org/100/en - that levance of the founding mandate of the Orga- opens the doors to an interactive journey nization with contemporary challenges and its through the past, present and future of the ILO. central role in building a fairer future for all. Founded in 1919, the ILO brings together go- “The search for work and work itself affects vernments, employers and workers to es- all aspects of our lives, however, many do not tablish international labor standards and know the international organization that, sin- promote decent work. From the eight-hour ce 1919, has helped shape the world of work. workday to the protection of motherhood and the eradication of forced labor and child la- Our goal, through this global outreach initiati bor, the ILO has shaped international labor ve, is to show how the ILO has improved and standards that impact people’s daily lives. continues to improve the experience of people in the world of work, “said the Director of In 2015, as the centennial approached, the Communication of the ILO, Martin Murphy. ILO established a World Commission on the Future of Work, convened to formulate res- The campaign highlights 25 issues that concern ponses to the most important transforma- the daily life of people, from gender equality and tions that now have an impact on labor mar- youth employment, to climate change and artifi- kets. The Commission will publish its results

cial intelligence. Through a series of graphic ele- on January 22 in an important report. L&E ments and animated images, the campaign is designed to be adapted to the local context and disseminated in public spaces and social networks.

The campaign materials were designed to be flexible and can be used in posters, public transport, magazines and websites. In addition, a series of cards and GIF ready to be disseminated 54 on social networks are available Legislación y Economía January 2019

Environmental CAPSULE

MANAGEMENT OF Milena Vergara - Assistant [email protected] HEALTHY LANDS AND RESCUE OF TRADITIONAL CROPS

he Small Grants Program (PPD) is a cor- suffer from social exclusion and are linked Tporate program of the Global Environment to high levels of poverty and to work with Facility (GEF) implemented by the United women and indigenous people, especially in Nations Development Program (UNDP) areas rural areas, having as a priority those since 1992 and executed by UNOPS. populations that are located in the surroun- ding areas of protected areas (national parks, The PPD started in Panama in 2006. In its forest and hydrological reserves), waters- management in this country, the PPD has heds and micro-basins of environmental focused on working with communities that and social importance, marine-coastal zo- 55 Legislación y Economía January 2019

nes with high levels of biodiversity, biological de for the knowledge of the traditions, the corridors and areas of ethnic cultural value. land and the forest; your intangible heritage.

Last December, the testimony shared by Michelle Szejner, ethnobotanist who collects Beatriz Schmitt, national coordinator of the in Jaqué, Darién, all possible knowledge in Small Grants Program of the Global Envi- order to start feeding the initiative “Rescue ronment Facility, implemented by the Uni- of traditional crops in the regions and coas- ted Nations Development Program (UNDP), tal areas of Darién”, which is clear from the was published in the newspaper La Prensa. work of the Small Grants Program , indicates that after walking through the forest and ta- Smith said the situation is complicated for lking to the locals, they get to know stories most of the traditional plants and seeds of the of the dozens of banana and anonymous countryside that are at risk of getting lost. Va- bananas for the rest of the country, as well rieties of rice and other foods have been stop- as fruits, seeds and the difficulties to har- ped in part because villagers in the jungle now vest the elusive fruit of the trupa palm to have access to government products or mar- then start the process of extracting your oil. kets, saving them months of hard work and reducing risks of mushroom losses. and plagues. When you walk the paths of the recondite villages of the regions of the country, you Something similar happens with the tru- discover the gastronomic wealth that hides pa oil: the palm is only found at points very in the luxuriance of the jungle and it is fasci- far from the mountains, it is very tall and nating until the discomfort comes after un- the fruits are difficult to take, and then you derstanding that it can be a matter of time have to cook the trupas for hours to be able for these crops to be forgotten and lose that to extract a little oil; in addition to that the intangible that is the popular knowledge that palm does not bear fruits of periodic form is shared from one generation to another. and can spend years without new trupas. It is not easy or profitable to obtain the oil. In Jaqué, there are, for example, several particular types of the 40 thousand rice seeds of To try to avoid it, in the following years the the world, such as the picaforte, three months, focus of the initiative “Rescue of traditional Colombian, heron, silver, dwarf, fulo, rock, crops in the regions and coastal areas of tumbacasa, fortune, diamond, heron, bull, re- Darién” will aim to investigate, register and, soro, centuripana, chin chin, burbon, little ball, most importantly, highlight among the re- purple chombo and red chombo, the latter, sidents of the regions the courage and pri- the wildest to be remembered, said Szejner. 56 Legislación y Economía January 2019

There are also unique mango species: donkey egg, cascarita, plantain, afrechu- do, pork, papaya, bird beak, flip flop, jobo, teta, full man and cinnamon, the rarest.

And among bananas and bananas classes such as the bird, castile, primitive, apple tree, salamander, popocho or four corners, Do- minican, green, taiti (like the Dominican, but with red shell), 500 (very large penca with hundreds of bananas) were recorded), felipe and the banana tree (because it is big).

Species of avocado, cocoa and plants with medicinal applications, are other crops that have been crossed during the expeditions by the regions.

Let us hope that all these investigations are of great importance for the project of “Rescue of traditional crops in the districts and coastal areas of Darien” since this type of crops has many advantages such as better products, better means of subsistence, more food, etc.

We have a country that still has great natural resources, biodiversity, water resources, fer- tile soils and large expanses of tropical forest. These vital natural resources, however, require careful management and proper use to prevent environmental degradation. L&E

57 Legislación y Economía January 2019

Illustrious Idalia Ballesteros - Assistant PEOPLE [email protected] RICAURTE MARTÍNEZ El Decano del Arte

Ricaurte Martínez was and at the same time December 22, 1972, School of Mary Im- born in Aguadulce on attended the National at the St. Vincent de maculate in Panama August 3, 1953, son of School of Plastic Arts Paul School in David. City and the French a Spanish father and where he obtained His first exhibitions Alliance, where he Panamanian mother. the title of technician were made before taught until 1975, and He completed his pri- in Plastic Arts in or- finishing secondary from the following mary studies in his na- der to understand the school at the public li- year he collaborated tive land Aguadulce. beautiful paths of art”, brary of David and the as a teacher of pain- paths that lead him to Maximum Classroom ting and drawing, gi- In the 60s he moved complete his bacca- of his Alma Mater. ving particular impor- to the city of Panama, laureate studies in the tance to watercolor in where he continued Province of Chiriqui, He entered classes the Center of Art and 58 his secondary studies there he graduated on at the International Culture of the Minis- Legislación y Economía January 2019

try of Education, where he worked until 1979. “Muele Fiscal”, “Puente del Rey” or “Sal si puedes”. He has participated in several auctions aimed at social collaboration or improvement of institutions promoting art and culture in Panama, among which we can mention: Auction of Works of Art Pro Help for the Deaf Child (COVANIS) in which he participated with four works, along with other great personalities of the Panama- nian plastic arts such as Alberto Dutary (qepd), In 1978 he founded the Ganexa School of Manuel Chong Neto, Coqui Calderón, Alfredo Fine Arts, of which he has been its director Sinclair, Adriano Herrerabarría and Guillermo and president from the moment of its crea- Trujillo; the Auction of the Inter-American Asso- tion. There he has taught classes in drawing, ciation of Women in favor of the Museum of the painting, graphic arts and sculpture. At the Panamanian Man, today Reina Torres de Araúz same time, he collaborated as a set designer Anthropological Museum in 1977; the Auction at the National Theater School of the INAC. for the City of the Child of 1980; the Expo-Auc- tion in favor of the Active Club 20-30 in 2001, and Ricaurte was always characterized by being since 1978 in several auctions of Panarte for friendly and being in a good mood which can be the benefit of the Museum of Contemporary Art. seen in some of his drawings of that time, inno- cent caricatures that in their school notebooks In January of the year 1978 he presented under remain to this day. Their attention is drawn to their the title of LANDSCAPES TO THE NATURAL a mastery of the human figure, the firm and sure series of ten works in Chase Gallery, in which, stroke that lasts until their most recent works, once again, he praises Panamanian landscape. and the use of shadows as a tool of expression. That same year he was awarded a scholars- hip by the Organization of American States, at His passion for the technique of waterco- Regional Arts Center of San Jose, Costa Rica. lor and his good handling of the brush helped him to gain the category of “watercolor pain- His connection with the arts of gouge and bu- ter” during his first years of production. With rril, his passion for watercolor did not stop and this technique he makes Chirican landscapes in 1979, taking the title of the technique that and compositions alluding to typical passa- pleased him so much, the World Frame Ga- ges of Panama City. However, the painter was llery, served as a not satisfied with those average averages and space for his show that same year he had made an individual ex- WATERCOLORS. hibition, which took his name, in the Center of Art and Culture of the Ministry of Education of To this period co- Panama, which also presented some acrylics. rrespond works such as “Fog”, For its human theme, some copies stand out in “The House of the work of that novel painter, titles such as “La the Patriarch” Lavandera”, “Rowers in the Tuira”, “Peasants” and many others, 59 and “Marino”. As an urban landscape, others like in them the the-

Neblina 1978 Legislación y Economía January 2019

me is the country or marine landscape. his left hand and hitting, with his back on the ground, the ball that represents the Chilean One of the greatest virtues of our artist in his that El Matador made to Mexico, on March permanent plastic experimentation. Thus, he 30, 2005 at the Rommel Fernández stadium. has discovered his own interpretation of traditional genres. Just as the landscapes initially In June 1985 Martínez made a shared exhibition found in watercolor their means of expression, with watercolor and urban landscape where she Ricaurte finds comfort, but not conformism, invited her ex-student, María Mercedes Morales, in the pastel as a means to work the still life. to make an exhibition of watercolor landscapes in the Gallery of Marriot Hotel, today Caesar Park. In the 1980s he opened his production at the Pro At the end of the 80s, he made two individual Artes Gallery where he told us in his own words: exhibitions in the Ganexa Art Gallery, samples “Today I wanted to bring you so that you can en- that also helped him to keep the school functio- joy as I did, with every bunch of pipes or every ning during those difficult years for the Nation. flower, with the enormous variety of tiny plants that clump together supporting each other on In 1997 he launched the oil series NUESTRA the rough bark of the one who allows them to HERENCIA, at Galería Arte Plaza; your last indi- live ... and tomorrow when they cross hastily vidual before these LIVES. To our heritage be- next to the tree, work of the Lord, the greatest longed works such as “Watermelons”, “Head artist of creation, find in their trunks, branches of Banana” and “Landscape of Playa Venao, and foliage, so much beauty that our limited still lifes, living natures and landscapes, share human capacity will never be able to interpret.” the defragmented new aesthetics of the artist.

His first relevant Their nationalism was reflected in two ways, sculptural com- on the one hand, the interpretation of icons of mission was the our traditions such as the devils, peasants ca- bust of General rrying out daily activities, skirts in movement, Omar Torrijos, indigenous; works that deal with traditional which is located themes, close to costumbrismo, but far from at the entrance being so, it is a question of a research, of a to Parque Omar. personal approach, to the recurrent aesthe- tic problem of mobility. The other way of his Other busts he has executed are Torrijos proximity to Panama is projected by his works in Colón, Cristóbal Colón located in Ave- of evident social concern, paintings of total nida 12 de Octubre and Maestro Roberto realism that confront us, evidently, to lack and Lewis, who recently and under the auspices poverty. “Hope is you”, oil with which Ricaur- of Doña Zita Lewis, daughter of the Master, te participates in the ARTISTS UNITED FOR was unveiled in 2005 at the National Theater. THE 50 YEARS exhibition, celebrating that an- niversary of the United Nations Organization. Ricaurte Martínez also made the statue of Luis Matador Tejada that is located in a small For the year 1990-1991, thanks to her dedica- soccer field located in Carrasquilla, erected on 60 tion in the teaching of the arts, the then direc- Legislación y Economía January 2019

tor of the National Institute of Culture, Julia ment in his sculptural creation. Regales appointed him as National Director of Art Education. Since taking office, he be- “Los Pilares de la Patria”, in the Calzada de gan the work of recovering several state insti- Amador, a work sponsored by the Banking tutes of Fine Arts in the interior of the country. Services Company of Bladex, celebrates the cultural and ethnic diversity of Panama, and In this sense, the reconstruction of the School shows the brotherhood and peaceful coexis- of Fine Arts of La Chorrera, and the creation tence that this soil inspires for those of us who of the National School of Folklore in the Vi- have lived in him during our first centenary. lla de Los Santos are particularly important. Unveiled at the end of 2003, this work consists In 1992 he was president of the Organizing of four three-meter giants that support a flagpo- Committee of the Continental Congress of Plas- le of ten with the flag of Panama. Made with tic Arts, United America for Art. Undoubtedly, so a unique technique, very typical of the author, many merits were recognized by President Er- the modeling was initially made in epoxy foam nesto Pérez Balladares, who distinguished him in bathed in fiberglass, and then recoated in bron- 1994, giving him the responsibility of being Gene- ze paste, on which the final details are carved. ral Director of the National Institute of Culture, a position he held until 1996, having been the only He led a group of more than one hundred ar- painter to date. occupied so dignified position. tists who joined together to build the National Association of Plastic Artists, obtaining re- In 1998 he returned to preside over APAP until cognition by the Legislative Assembly at that 2002, and as such he became World Vice Presi- time, on August 19, 1991. Under that mana- dent of the International Association of Plastic gement he managed to declare August 19 as Artists (AIAP), an entity linked to UNESCO to at- the National Day of Plastic Artist, a decision tend attic and professional topics of plastic arts. accepted by the Legislative Assembly of that As president of the APAP, he has been a mem- time, and for greater honor by UNESCO. The ber of the INAC Board of Directors since 2003. international organization adopted that date, the same date on which APAP is founded, as In the year 2000, Ganexa Fine Arts, was trans- the International Day of the Plastic Artist. formed into the Ganexa Art University, making Panama the first country in Central America to Algunos premios y distinciones que ha recibido have a private university entirely dedicated to the “El Decano del Arte” durante su trayectoria son teaching of the arts. los siguientes: Thanks to this project, Professor Martínez • Second Prize in the Pictorial Contest. has received as alias Colgate Palmolive “The Dean of Art”, • Honorable Mention, Pictorial The Centennial Competition. Colgate Palmolive of the Republic meant for Martinez • First prize. Photography in Black and an important mo- 61 White. Contest of the Photographic Club of Panama GS Magazine February 2014

• Third award. Color Photography. Contest of the Photographic Club of Panama

RUNNING TITLE RUNNING • Distinguished Guest from the City of Our Lady of Peace, La Paz, Bolivia

• Distinction as Creator and Founder of the Panamanian Association of Plastic Artists

• Guest of Honor. City San Pedro Sula

• Distinction as the main promoter of the Patronato de Panamá Viejo

• Distinction as a collaborator of the Afro-Antillean Museum of Panama

• Distinction of Honor. Live Easter Organizer of Pesé

• Diploma of honor. Founder of the National School of Folklore

• Diploma of honor. Founder of the School of Fine Arts of Aguadulce

• Collaborator of the Women Rehabilitation Center

• Distinction as the First President and Founder of the A.P.A.P.

• Distinction and permanent participation in the Auction of the San Felipe Foundation

• Winner of the design of the sculpture for the 2002 Press Prize, Panama

• Distinguished Guest from the City of Tegucigalpa, Honduras. L&E

62 Sport Capsule A risk again to take new challenges. to left pending. It is the opportunity new goals, achieving what we have Sometimes we find it difficult to re to difficult it find we Sometimes recognize it and beable to face it. thing is to knowhowto important abachelor,The new jobs,oropportunities. a career, finish to able lent. As forothers,it would be to be all the ta ned and show on court to put into practice everything lear Foran athlete means new season

[email protected] Ana SofíaCorrales start of the year means setting start - - - at everything wereally propose. in confidence have yourself, because we are good to have you All changes are frightening, so this, maybe it would be different”. everything in one: “IfIhaddone stay in the same place we will see new projects. Since if we and start zone selves, get out ofthat comfort best we candois to challenge our safe andwedonotrealize that the and consider to be more important distracted by other things that we and we get cognize opportunities, GS Magazine February 2014 - 63

RUNNING TITLE Legislación y Economía January 2019

WITH 100% OF VOTES, MARIANO RIVERA ENTERS THE HALL OF FAME

ith 100% of the votes, Mariano Ri- ce was essential for the Yankees’ dynasty vera was announced as a new mem- that won five World Series championships. Wber of the Baseball Hall of Fame. Mariano retired in the 2013 sea- The chorrerano got the 425 votes in his favor, son, and after five years in retirement never before a player got 100% in the voting, a was included in the ballot of the vote. Panamanian who transformed the role of re- liever and emerged from poverty in a humble “When I finished my career, I thought you fishing village. Mariano became the second had a good chance of reaching the Hall player in our country to get the distinction, of Fame,” Rivera said. “But this was so- and it was 28 years ago that Panama cele- mething that surpassed my imagination.” brated the entry of Rod Carew to immortality. “I feel grateful that God allowed me to “It’s a privilege”, Rivera said in a telecon- be born in that beautiful country,” Rive- ference. “Every athlete wants to get so- ra said. “This I want to share and celebra- mething like this. Being the first, being Latin te with all Panamanians, who deserve it.”

: midiario.com American and Panamanian, is an honor. “ The announcement was made pu- With his fulminante straight cut, the re- blic through the official major league Source primerahora.com liever set the record for saves with 652 in channel (MLB TV) and Mariano recei- 19 seasons with the New York Yankees, ved the news at his home in New York. 64 adding 42 in the postseason. His dominan- Legislación y Economía January 2019

BASEBALL

In the Big League Baseball the well-known PipeLine has been published revealing the list of the 10 prospects to observe this season 2019 in three areas; Right throwers, left throwers and receivers.

In the group of catchers, is the santeño Amaya that militates in the organization of the Chicago Cubs, was placed in position seven.

It is pleasant to see a Panamanian arise, so we wish them success.

National Youth Baseball Championship

In his ninth day of the National Youth Baseball Championship, fight for classification to second phase is even, to the point that there are four teams tied at the top.

The eight best pass to the next round, which will be direct elimination in series to the best of seven games.

65 Legislación y Economía January 2019

SOCCER

The Panamanian soccer player, who today are On the other hand, the preparation of the se- playing in different clubs at international level nior soccer team continues and the current have left national leagues such as the Natio- technical director, Gary Stempel is in charge nal League of Promotion (LNA) and Panama- of directing the Panamanian team for their first match of 2019, when facing the United nian Football League (LPF), which for this sea- States on January 27 and has already revea- son 2019 are scheduled to start on February led the names of those invited to this meeting. 1. However, the Association of Footballers of Panama is demanding that clubs pay their Currently there is much talk of the appointment salary accounts to avoid a work stoppage. of the new Technical Director of the national team, however, that is a task that the current pre-

The Association claims:

• “That the respective resolutions or rulings of the cases presented in 2018 are issued, which are still awaiting a decision”. • “That there is a real guarantee for the debts of the clubs in favor of the players”. • “That the necessary mechanisms be established

for Dispute Resolution for sident of Fepafut, Pedro Chaluja, has decided to this Closing 2019 tournament” are the other leave to the new leadership of the federation.

points raised by Afutpa. Meanwhile, interviews were given to the Colombian coaches Eduardo Lara and Carlos Restrepo; also to the Panama- nians Julio Dely Valdés and Gary Stempel. 66 Legislación y Economía January 2019

And to start this 2019, we are pleased to share The idea would be to organize some matches in that the 2018 season among the best figures, neighboring countries, “insisted the FIFA boss. Concacaf, after a period of voting, announced that the Panamanian goalkeeper Yenith Bailey Qatar is at the center of a major diplomatic cri- was placed in second place, being surpassed sis with some of its neighbors, Saudi Arabia only by the American archer Alyssa Naeher. in front, which complicates the possibility of organizing parties in the bordering countries. On the other hand, we are still in the expecta- We will continue to follow up FIFA’s decision. tion of the decision of FIFA, the feasibility of ex- tending to 48 the number of participants in the World Cup in 2022 said the president of FIFA, Gianni Infantino, insisting on the possibility of “playing some parties in neighboring countries “.

Most federations would like it to be done. But we must see if it is possible from the organizational point of view. Of course, it would be difficult to organize a World Cup of 48 teams in Qatar alone.

FOOTBALL

Los Panamá Sharks brilla- ron en la casa de los Dallas Cowboys el pasado viernes al derrotar a la selección Sub-18 de Estados Unidos por marcador de 30 a 25 en acción de la décima edición del International Bowl. L&E

67 Legislación y Economía January 2019 FASHION

The Battle of the Virtual Assistants

Donna Ballestero - Assistant [email protected]

Tendencias tecnológicas del 2019 For this 2019 during the CES (Consumer Electro- nic Show 2019, the most important technology The unlimited needs of the human being, in addi- fair in the world), the fifth generation (5G) wireless tion to the various problems that are presented technology, speakers with artificial intelligence to him, have forced the technology to renew and cybersecurity are emerging as protagonists. itself, and produce articles that meet the necessary characteristics to satisfy the new demands. The battle of the speakers with artificial This technological renewal leads many peo- intelligence: ple to discard their products and update themselves, either by necessity or simply The Echo speaker that has a personal assis- by being fashionable. This idea of fashion tant called Alexa, launched in 2015 by Ama- is a very significant cause of high volume zon, has created strong competition among of consumption of technological products. manufacturers, who seek to create a trusted 68 digital companion. A year later, Google laun- Legislación y Economía January 2019

ched its version called Home, a smart speaker These devices have wireless connection, and that is controlled by its Google assistant. knowing the keys by default, it is relatively easy to access their cameras and micropho- The goal of these companies for 2019 is to ex- nes. On the Internet you will find with relative pand the reach of their virtual assistants to each ease pages that compile images of webcams of the parts of people’s lives, such as the kit- from around the world some of private homes, chen, the living room, the office and the car. The which as they have not changed the default two technological giants have made alliances password, share their images with everyone. with device manufacturers such as light bulbs, car accessories, doorbells and thermostats. The security of smart devices has its challenges in the same way has a solution, but requi- Because these assistants are in their first res certain actions by users and manufacturers. years of development they have their disad- vantages. They are controlled by specific The internet of things works by connec- commands, in languages established by re- ting to the network and the center of the gions, for people who are not familiar with the networks are the routers, hence the im- terms might think that the devices are more portance of keeping them updated. difficult to use than pressing a simple switch. The manufacturers are starting to become For now these speakers are only used for ba- aware and we can see an avalanche of equip- sic tasks such as listening to music, chec- ment and programs aimed at security, of which king the weather, reviewing your agenda we can mention Eero Wifi equipment manu- and setting an alarm. Which tells us that facturer who launched Eero Plus a subscrip- we should still learn more about them. tion service that includes protection against viruses and malicious programs for all the de- Privacy, for your smart things: vices connected to your Wifi network. Scalys networking company presents this year to What happens with devices that connect to TrustBox, a router with integrated security the network and can’t install antivirus soft- functions, who won the “Award for the best ware or some type of protection? We re- of innovation” in the category of cybersecuri- fer to televisions, watches, speakers, equity and personal privacy by CES organization. pment connected to Wifi, and that are making us an easy target for cyber attackers. The arrival of 5G

We have recently seen that when the connected Telephony companies are preparing for an technology is not up to date it is vulnerable, attac- upgrade in their infrastructure this is due to kers of this type take advantage of holes in the the arrival of 5G technology, we refer to the form of obsolete software that have devices con- fifth generation of technology for mobile te- nected to the network, here lies the main securi- lephony. The speed at which you can navi- ty problem, while updating a PC or A smartpho- ne is relatively simple, it is not the same with gate with this technology on mobile devices a device designed to work and doesn’t require is 400 megabits per second which will allow maintenance at the software level by the user. users to download content in just seconds. 69 Legislación y Economía January 2019

It is expected that this technology will reduce the time it takes for the devices to communi- cate with each other, it is intended to optimize to make the devices as efficient as possible for the internet of things, although initially not many phones will be compatible with 5G technology.

Some manufacturers have announced prototy- pes as is the case of SAMSUNG who presented Exynos Modem 5100, its first 5G modem, compatible with the final specifications of the 3GPP. It is built with 10 nm technology and is prepared for the most current 5G specifications.

On the other hand, Apple is expected to launch an iPhone compatible with the 5G until 2020. Undoubtedly technology has tested the creativity and ingenuity of man, in the search to trans- form the world, this tool emerged to improve the quality of life and deal with problems in an efficient manner. Great strides have been made in health, education, industry and commerce.

In the case of health, the arrest and cure of diseases obtained significant advances; Edu- cation having a broad access to information has changed its learning model; In the field of industry and commerce, the implementation of the new technology optimized processes, which encourage economic production.

Day after day there are new proposals that mate- rialize in devices, tools and applications that help men with their daily tasks. The great challenge is to create ways to eliminate the negative impacts and to diminish the risks in their use. L&E

70 mething tangible, it would undoubtedly be some, to makeof the acomparison internet with so the one that many ofus don’t know, if we were like everything in this it world, has its dark side, the thatgood wecanmention fromthe internet, and benefits the all from apart However, use. to its thanks simplified greatly is work Our ce dailysin of our work, it is something that is part a distractionfree inour time, whatever the case, web every day,simply as education or work, for lives, ofour webrowse the the internet is part gin, werealize that he is absolutely right. Today, this sociologist and philosopher ofJewish ori I f we stop to think based on the phrase of -Zygmunt Bauman bad.”the youto when don’t have Internet to culture enough filterinformationgood from is sterile to and dangerous “It believe that you dominate the entire world thanks THE INTERNET THE THE DARK SIDE OF - - - in Spanish as deep internet or hidden inter the term forrefer to it is “Deep web”, known all kinds and, onthe other hand, the dark part, among others, we can access information of search engines such as Google, Yahoo!, Bing, through where all know, we that part perficial that su The Internet is divided into two parts, dark, mysterious and, in some cases,dangerous. and in the same way, the internet has its depths, areas recondite more those explore to difficult depths. For the human being, it has been a bit little is but very knownofwhatis in its surface, with the ocean, many know what exists on the [email protected] Gabriela Melgar-Assistant GS Magazine February 2014 - - 71

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net, here you can’t access it so easily through become dangerous or incur some type of crime. traditional search engines, you need different protocols and other browsers to enter. It has The Hidden Wiki, something similar to Wi- RUNNING TITLE RUNNING kipedia that works as an index to access tho- Basically within the Deep web, is the content se pages that carry .onion domain, as we know of the internet that is not indexed in the tra- the conventional pages have domains such as ditional search engines, that is, it is not sto- .com, .org, .edu, among others. Similarly the red in them, therefore, when searching for URL of the pages within the Deep Web are a this type of information we will not find it so combination of letters with numbers, making easily. To be able to access this content it is it difficult to trace. It also has a search engine necessary to follow a series of steps, starting called Grams, similar to Google, where only tho- mainly with contacting a VPN service, through se pages whose creators have requested to be which the IP of the computer is changed, in included appear. It should be noted that those the same way you must deactivate the brow- who browse the Deep web, should be clear and ser scripts and maintain an updated antivirus. know specifically which sites they are going to search, otherwise they will only navigate va- As you can’t access through conventional guely, since by the type of information and tho- search engines, as mentioned above, you must se things that can be found, the search will not use a different one, the best known is the Tor be so easy like who uses Google, for example. (The Onion Rou- ter) browser, which Within this website, you can establish gives anonymity contacts that are not monitored, as well to the user, which as transactions with cryptocurrencies makes it difficult to (bitcoins), which are impossible to track. know who is looking While it is true, not everything that can for certain information. It is defined as the onion be found on the Deep web, is bad, in many ca- router, since it, like the popular vegetable, has se- ses, is used to be anonymous, without incurring veral layers, when entering in search of informa- something illegal, a common example would tion, the IP address of the device is encrypted, be its use by journalists or activists They are making it difficult in this way to identify the user. in countries where freedom of expression is not a privilege they can count on. But as the Being within the Deep web, you can access currency will always have two sides, the Deep thousands of sites with different types of infor- web does not escape this reality because brow- mation, from one that wouldn’t be so easy to get sing it, you can find pages related to topics 72 through the superficial Internet, as one that could ranging from arms trafficking, drugs and or- rious, a criminal or an experienced hacker. on the other side of the screen is a simple cu vulnerable, because we don’t know if who is not all content is bad, to get into it we become nown ,although in these depths of the web, security bycomputer venturing into the unk sites out ofcuriosity, risking our it is not worth careful, likewise avoid entering these types of can find many things, however, we must be very There is no doubt that browsing the internet we tify victims of child abuse, among other crimes. sible cases of illegal arms sales as well as to iden intelligence will be implemented to warnofpos tion that is handled in it. In the same way, artificial wrong hands, because of the delicate informa their creation, since such atool cannotfall into So farthey have rejected license applications of the depths of this dark side of the internet. docu ments in about 140 thousand pages within million 450 identified has and fferent cate that it has more than 70 languages di the Google ofthe Deep web, its creators indi called Aleph Networks, the same as start-up, launch ofasearch tool developed by aFrench At the end of last year, it was announcedthe publications that have been stolen by hackers. scientific confidential and advances nological of international organizations as well as tech files private even pornography, child cloning, card persons, in trafficking killers, hired gans, L & E ------

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The first mission to the last planet

Donna Ballestero - Assistant [email protected]

he New Horizons probe entered history by It established a new category, that of dwarf becoming the first to visit Pluto, the only planet planets, in which it included Pluto and of Tin the solar system that remained unexplored. which, at moment, only four other bodies are part (Ceres, Eris, Makemake and Haumea). Its launch was on January 19, 2006, taking off from the Air Force Base in Cape Canave- After 9 years of travel and 5 billion kilome- ral, after a brief encounter with the asteroid ters traveled on July 14, 2015, the New Hori- (132524) APL, which allowed it to reach Ju- zons probe achieved its approach with Pluto, piter, on February 28, 2007 it had its maxi- this being the fastest trip that has been ca- mum approach to the planet at a distance of rried out so far. At a speed of 49,600 kilome- 2.3 million kilometers. After the visit to Jupi- ters per hour, it was 12,500 kilometers away ter the probe was put in a state of hiberna- from Pluto collecting images and data from tion to preserve all the instruments on board. this dwarf planet and from Charon, the lar- gest of its five known moons, for a few hours. When, on January 19, 2006, NASA New Hori- zons probe took off from Cape Canaveral to The emissary of humanity opened for science Pluto, this was the only planet that remained a window of the most distant and extensive to be explored. But during the summer of that structures of our solar system. It is the Kuiper same year, International Astronomical Union Belt, one of the three large concentric rings of 74 (UAI) agreed in an assembly held in Prague to rocks that surround the planets. It is composed remove it from list of planets in Solar System. of millions of objects smaller than our moon which you will sail through Kuiper. tteries will last another 20 years, during ce, the probe is in good shape. Yourba crossed millions of kilometers of spa Despite being 13 years old, and having to agrain that counter carries onthe spine. dust, thanks distribution of interplanetary asthe aswell Sun, ener the by high fired particles the gy of profile a making on king physics and physics of the Sun. It is wor The mission is evolving to be one of astro distant and primitive object ever studied. ration of anobjectKuiper belt, most for mission team it symbolizes the explo Ultima Thule means “beyond Thule” and year, at a speed of51,000 kilometers per hour. meters from Ultima 1 of this Thule on January ters, whenit reached approximately 3,500 kilo kilome history, million space 6,500 in at flyby New Horizons completed the most distant oblong bodies that exhibit their own rings. that include ice balls, pieces of rock and other L & E ------

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RUNNING TITLE RUNNING Cultural Capsule Mariela de Sanjur [email protected]

THEATER FESTIVALS AND CONCERTS: • Teatro El Ángel: The hotel of the entanglementsTEATRO until February 17. • VII Micro Brew Fest Panama 2019 from Fe- • Teatro El Ángel: Single and successful bruary 15 to 16 at City of Knowledge. looking for the perfect boyfriend since • Full Moon Drums: Retro Night on Sunday, Fe- February 23. bruary 17 from 4:00 p.m. with Mercadito Lunero • Teatro El Ángel: Colorin Colorado this and at 6:00 p.m. the drums start. story has not ended until February 24th. • Musicalion: from February 20 to 24 at Parque • La Estación Theater: The next door from Omar from 7:00 p.m. February 5 to March 23 o Wednesday 20: Movie soundtracks / Big • La Estación Theater: The 3 Little Pigs for the Carnival from February 2 to March 31. Bands. • Teatro Aba: No filters on the language until o Thursday 21: Panama Bilboard-Latin Music February 3. Showcase. • Teatro Aba: Aladdin and the wonderful o Friday 22: Electronic Summit Together. lamp from February 3 to March 17. o Sunday 24: Symphonic Rock. • Teatro Aba: Negotiating my reelection • Festival of the Poor Cinema (Panalandia): from February 6 to 17. from February 13 to 16 at the Omar Torrijos • La Plaza Theater: Burundanga until Fe- Foundation. bruary 24. • The BBQ Fest: February 3 at Albrookmall par- • Teatro en Circulo: Welcome to the Jewel king lots in the dinosaur hall. on February 2. • Comets and Panderos Festival (Aprochipa): • La Huaca Theater: The ball of letters re- on February 17 from 10:00 a.m. at 6.00 p.m. on newed on February 9. the Boulevard Panama - Pacifico, in Arraiján- • Faculty of Fine Arts Howard. - Domo • Chinese New Year Festival 2019: from Fe- Curundú, An- bruary 3 to 5 celebrating the Year of the Land cón: Poca- Pig, at Atlapa Convention Center from 12:00 hontas and noon to 7:30 p.m. Mr. Smith, • The Recreative Cycle of Panama: A space Saturday available every Sunday from 6:00 a.m. at 12:00 and Sunday m starting from SF Edif. Coco Bay, passing from Fe- by the Coastal Strip 1, 2 and 3 to the Amador bruary 2 to Causeway. Remember that the use of a helmet 24 at 3:00 is mandatory and you should not use headpho- p.m. nes. • Free bike school: Sundays from 8:00 a.m. at 76 in front ofMarco Alarcón School-7:30p.m. *Friday, February 8-Metetíshoppingplaza October 19-7:30 p.m. *Wednesday, February 6-AguadulcePark Porras -7.30p.m. * Tuesday February 5-Las Tablas -Parque nario -7.30p.m. *Monday, February 4-Chitré - Parque Cente semena Park -7:30p.m. *Sunday, February 3-SantiagoJuanD. Aro vantes -7:30p.m. *Saturday February 2-David -Parque Cer Changuinola -7:30p.m. * 31-ChanguinolaPlaza Thursday January try: o The movie Cocointenlocationsthecoun *JBalvin *REIK *Joey Montana *MecániKInformal a Marte *Llevarte *DJEdward Allen&Friends *Mayra Hurley 2:00 p.m.,guestartists: oSaturday, February 16:MusicFestival -from more than100 history ofPanama anditscultural diversity with gic Night,amusicaltour oFriday, February 15-7:30p.m.:Work The Ma tion ofUlpianoVergara and oFriday, February 15-7:30p.m.:Live presenta o Thursday 14-7:30p.m.Cocomovie. oIntheStairsofAdministration Building: • CanalSummer: Bicycle, Helmet,Instructor andsafe circuit. 11:00 a.m.behindtheHotelMiramar, includes: artists onstageandguestartists. artists through the his orchestra. tos -6:30p.m. Comercial 4Al Colón -Centro February 10- * Sunday, ------Guaricha. of February inBoquetethecultural houseLa visions,from• Free the5thto artistic the18th house inCascoViejo. ne ChapeluntilFebruary 28atthePérez Alemán • Romecomesto Panama -ExhibitionoftheSisti - Workshop at Teatro laPlazaonFebruary 16. of being a priority in • yourOwn Love life” “The art • Feb 11:World Day oftheSick • Feb 11:OurLadyofLourdes • Feb 10:Day oftheMedical Technologist • 9Feb: Dentist’s Day • Feb 6:Photographer’s Day andcameraman • Feb 5:ChineseNewYear • 4Feb: World CancerDay • 2Feb: World Wetlands Day • February 2:CandelariaDay (Law No.29ofMay 12,1998) • February 25:Day oftheDuleRevolution (1925) • Feb 20:World Day ofSocialJustice cancer • Feb 15:Day ofthefightagainst childhood ship • Feb 14:Valentine’s Day, day oflove andfriend • Feb 13:World RadioDay (1929) ofGeneral Omar • February 13:Birth Torrijos • February 28:We’ll see. • February 21:Myfingerprintshome. AND EVENTS: AND EXHIBITIONS, TALKS CINEMA VARIOUS: GS Magazine February 2014 - - 77

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IMPORTANT FAIRS: MUSEOS Y EXPOSICIONES

RUNNING TITLE RUNNING • San Sebastián Fair: from February 14 to 19 in • Interoceanic Museum of the Panama the Ocú, Province of Herrera. Canal: • Feria de la Chorrera: from January 30 to Fe- • Biomuseum: bruary 10 in La Chorrera, Province of Panamá o Every Sunday from 7:00 a.m. at 11:00 Oeste. a.m., bicycle loans for one hour (available 25 • Oranges Fair: from January 31 to February 3 in bicycles), in the Plaza de la Gente. Churuquita Grande, Province of Coclé. o On February 3: free entry Panamanians • Fair of Tonosí Valley: from February 13 to 17 in and permanent residents. Tonosí, Province of Los Santos. o February 3: free classes at Plaza de la • La Candelaria Fair: from January 30 to Fe- Gente: bruary 3 in Bugabá, Province of Chiriquí. * 7:00 am. Yoga • Fair of Santa Fé de Veraguas: from 7 to 10 * 7:45 a.m. Dance February in the District of Santa Fe, Province of * 8:30 AeroBox Veraguas. o Exhibition “Gaudí, son of María” free • Traditions Festival: from the 22nd to the 24th admission until February 7 from 10:00 a.m. of February in Dos Ríos de Dolega, Province of at 5:00 p.m., the Biomuseo room. L&E Chiriquí. • Chitra Fair: from February 22 to 24 in Calobré, Province of Veraguas. • Almojábano International Folk Festival with Cheese: from February 13 to 17 in Dolega in the Province of Chiriquí. • Acobir Real Estate Expo: from February 20 to 24 at the ATLAPA Convention Center. • Baby Fair: from February 15 to 17 at the Mega- polis Convention Center.

78 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