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Legislacionyeconomianov In this edition Consejo José Javier Rivera J. Idalia Ballesteros Editorial Rafael Fernández Lara Milena Vergara Giovana del C. Miranda Garzola Ana Sofía Corrales Yinnelle Smart Mariela de Sanjur Ayeisha Williams Ivana Herrera Donna Ballestero José Javier Rivera J. Giovana del C. Miranda G. Design & Layout: Gabriela Melgar Rivera, Bolívar y Castañedas @rbcabogados @rbcweb RBC Abogados NOVEMBER 2019 Editorial 5 Content WHAT WILL BRING US THE YEAR 2020? 38. Politics OUR PRESIDENTIAL CANDIDATES WHO RESIGNED BEFORE THE ELECTIONS 68. Ilustrious People 43. Panamanian Economy 73. Sports Capsule MONTHLY INDEX OF ECONOMIC ACTIVITY 82. Trending Topic COMMENTARY ON THE CONSUMER PRICE 88. Cultural Capsule INDEX (CPI): OCTOBER 2019 47. World Economy IT IS PRECISE TO INCREASE ACCESS TO INFORMATION LITERARY COFFEE, THE AND SUPERVISION CAPACITY IN DEVELOPING COUN- FOUR AGREEMENTS TRIES TO IMPROVE BANK SYSTEMS 60. Environmental Capsule CONSERVATION AND HANDLING OF 79. THE CURRENT HYDROGRAPHIC BASINS IN PANAMA Invited Writer 7 INEQUALITY IN PANAMA AND THE WAYS TO FACE IT Content Norms Consult of interest Doctrine & NATIONAL ALPHABETIZA- Jurispru- TION PROGRAM dence 34 PANAMA AND THE DOING BUSINESS 24 2020 REPORT Legislación y Economía November 2019 Editorial WHAT WILL BRING US THE YEAR 2020? José Javier Rivera -Attorney [email protected] t has been seven months since the elections to choose elections and this sum would imply that in December, those responsible for the Executive and Legislative Body the country exhibited a new growth above 5%. Iand five months since the installation of both powers. The reality however has shown that the world economy is in a recession and the commercial For most citizens, after the long period of war between the United States and China doesn’t uncertainty, decline in economic activity, rising seem to come to an end and therefore the Panama unemployment, future of what remained of 2019 Canal has not only been negatively impacted by this was flattering and automatic; So over the course of cause, but by the Little precipitation in the water this brief period, citizens have felt that a presidential collection areas for the Canal has implied a reduction change doesn’t mean a magical solution to the in the maritime cargo that crosses the country. endless number of problems the country has. In the institutional field, it turns out that the For example, it was believed that public finances government on duty has faced a real offensive by the were robust to make payments to the creditors of the Assembly of Deputies that has limited its ability to set State, inject income through investment expenses, a calendar of legal norms of wide impact in the country. increase the State return and wages and from the private point of view, revive construction, attract The appointment of officials of the Judicial Branch has Chinese investors who had taken over the political just begun at the level of the Supreme Court of Justice, 5 scene since the end of 2017 until the same date of the but it is known that it is essential to undertake the Legislación y Economía November 2019 establishment of the judicial career and make changes channels such as logistics, telecommunications in the Accusatory Criminal System to strictly comply and environmental benefits, coupled with security with universal principles such as the presumption and political stability to attract investments from of innocence and the prevalence of the Judge of multinational companies that can add value in our Guarantees on the initiatives of the Public Ministry. country and incidentally reduce unemployment. It is known that, for widely disclosed reasons, the In the field of geopolitics, balance between powers replacement of the position of attorney general and reception of academic and scientific research of the Nation is pending and this will surely have entities can transfer development to the provinces in implications of officials in the Public Ministry. general and in particular to western area that already has a master development plan led by CECOMRO. In the agricultural sector so far there has not been an increase in the prices of pig and cattle products, In the financial field, infrastructure projects need so producers are selling their animals for fear of an to be addressed with priority, but the focus must be extended period of drought and the loss of their on the provinces to be able to reduce the inequality livestock due to lack of feeding. This requires that the country exhibits and that constitutes a a political decision on the importation of these permanent source of possible social conflicts. products since it is clear that, if the local population consumed national production preferentially, this Up to now, management of reforms to the Constitution could alleviate the situation of the sector that has been intelligent, because it has allowed the general represents more than 40% of the economically active public to express their point of view on this new economic, population but only receives approximately 3% of GDP. institutional, political and social model, but personally, at this time, engage in a constituent parallel or original In the activity of services, the country maintained a spectacular development from the creation of the can generate a very important political attrition banking center in 1970, but new global regulations and maintain a reserve or even cause an economic have limited the use of financial services from Panama paralysis that is worse the remedy than the disease. and in the case of structures such as corporations, trusts, limited liability companies, private The Executive Branch should ponder the country’s interest foundations the number has decreased. course with great serenity and patience and look in the mirror of recent events in several countries The same has happened in the maritime field in Latin America and others in Europe and Asia. where the collection of flagging is practically 6 scarce, so it is essential to take advantage of other It will dawn and we will see...L&E Legislación y Economía November 2019 Invited Writer DESIGUALDAD EN PANAMÁ Y LAS VÍAS PARA ENFRENTARLA Carlos Garcimartín - Econoimist [email protected] uring the National Meeting of Sustainable improve the living conditions of the great majority. DDevelopment that was held on October 29 and The first graph shows the gross domestic product per 30 in the City of David, Chiriqui Province, the inhabitant of the countries of Latin America and the economist Carlos Garcimartín presented a very Caribbean, Central America and Panama and there we interesting presentation on the characteristics can see that this numerical manifestation indicates of Inequality in Panama and the Ways to Face It . in a reliable way that, on paper, Panama has had a robust growth between 1990 and 2017 if compared This presentation was complemented by a series with the rest of the countries already mentioned. of data of great impact and that I consider of great interest for our readers, so I have allowed myself to In the same order of ideas, however, this economic make a series of comments on a subject that has result of the country has not permeated in an been worrying Panamanian citizens since it is a equitable manner in all areas nor has it favored fact negative about the distribution of wealth and the great majority, because without a doubt, this 7 also about social spending and its importance to growth has been concentrated in the province of Legislación y Economía November 2019 Panama and something in the province of Colon, much higher than the average for Latin America. but it has not been uniformly in the rest of the The subsequent table on the Gini coefficient indicates provinces and also in the indigenous regions. that since 2007 inequality has been reduced in Panama by 2.8% compared to an average of 5% in Latin America. The economist also showed that inequality Another aspect that is highlighted in the presentation is in Panama is very high and this has recently been complemented by an ECLAC publication that the province of Panama has 70.1% of the provincial that indicates that Panama is among the three distribution of gross domestic product and Colón has countries that have the highest inequality: Brazil 13.4%, which means that both total and individual (0.540), Colombia (0.497) and Panama (0.498). GDP growth only grows in the province from Panama. - Latin America according to ECLAC is the most Another of the data reflected in this unequal region in the world. presentation is that social spending in Panama is below the average for Latin America. - It was also shown that inequality is very resistant to decline. Finally, the presentation indicates that Panama’s tax The presentation shows the Gini Index and there revenues are the lowest in Latin America and the it is reflected that the inequality of our country is fiscal pressure is also the lowest in Latin America. Next, we show the presentation of economist Carlos Gacimartin: 8 Legislación y Economía November 2019 9 Legislación y Economía November 2019 10 Legislación y Economía November 2019 11 Legislación y Economía November 2019 12 Legislación y Economía November 2019 13 Legislación y Economía November 2019 14 Legislación y Economía November 2019 15 Legislación y Economía November 2019 Conclusions and recommendations In the opinion of the economist, IDB operations has characterized the administrations, its centralist are focused on early childhood care, health in the regions, education, rural electrification, approach has prevented it from having a transverse training of workers in the provinces and tourism. effect and therefore more than 90% of the population The document also raises the need to redistribute is in the low and middle strata segment; while in the public investment in the provinces and in the regions upper stratum is less than 10% of the population.
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