Sunday, September 27, 2009

Is Latin America Moving to the Right?













Panamanian President Ricardo Martinelli, left, and Brazilian President Inácio Lula da Silva, right, illustrate the growing right-leaning trend in Latin America. Martinelli, a conservative, defeated his center-left opponent in elections earlier this year, while leftist Lula's approval rating remains high but his recently announced chosen successor trails the opposition in polls.
By Stephanie Miller September 24, 2009
Nearly half a decade ago the dominant political story in Latin America was the growing strength of leftist movements, often called the “rise of the left,” and a string of electoral victories by left-leaning candidates throughout the region. But now that the region is entering a new wave of presidential and parliamentary elections, the scales may be tipping away from the leftist trend as a significant number of polls show conservative candidates leading in several countries where a leftist president is currently in power. There have also already been conservative electoral victories in several countries where there were formerly either left-leaning presidents or majorities in congress.

These latest developments may suggest a general trend in the region that can be linked to the global economic crisis’ impact on Latin America. But politicians and analysts of the region should also be asking whether the winners of the elections will address the region’s problems, which go beyond ideology and the global downturn.
The economic crisis that began in 2008 has spread to nearly every corner of the globe, and Latin America has not been immune. One of the economic crisis’ main effects on the region is a reduction in remittances sent there from workers in industrialized countries. After receiving nearly $70 billion in remittances in 2008, a recent study projects that the region will receive only $62 billion in 2009.
And even though the region as a whole was much more prepared to handle the effects of the crisis after six consecutive years of positive economic growth, the global economic recession resulted in a sharp decline in demand for the region’s main exports, such as oil, soy, and copper, leading to higher unemployment. After maintaining a regional gross domestic product growth rate of 4.2 percent in 2008, Latin America’s growth rate is expected to fall to -1.9 percent in 2009 with unemployment levels reaching 9 percent.
It’s still not clear whether what looks like an unfolding right-leaning trend in Latin American politics is the region’s response to the global economic crisis, and a survey of recent elections and polls doesn’t give conclusive results.
On the one hand you have the recent presidential election in Panama and parliamentary elections in Argentina, in which opposition conservative candidates defeated their competitors.
On May 3 of this year Ricardo Martinelli defeated the former President Martín Torrijos's chosen successor―former Housing Minister Balbina Herrera―taking nearly 60 percent of the popular vote. Martinelli campaigned on a platform emphasizing the need to battle rising public insecurity and provide business solutions to the challenges posed by the global economic crisis that began in 2008.
In Argentina recent parliamentary elections dealt a blow to left-leaning President Cristina Fernández de Kirchner and the ruling Peronist Party, which lost seats in both houses of congress. Largely viewed as a referendum on Fernández de Kirchner’s government, the Peronist party was defeated in Argentina’s five largest provinces and Fernández de Kirchner’s husband—former president Néstor Kirchner—lost the battle for a congressional seat in Buenos Aires. The government has lost considerable support for having nationalized the country’s pension system and for tax increases levied on farm exporters during the global economic downturn, which led to four months of protests and road blockades.
Then there are cases like Brazil and Chile, where left-leaning presidents are still very popular, yet current polling for upcoming presidential elections shows that opposition and more conservative-leaning candidates are in the lead. In Chile socialist President Michelle Bachelet enjoys a 73 percent rate of approval. Yet current polling for the upcoming presidential elections in December 2009 shows conservative opposition candidate Sebastián Piñera leading Bachelet’s chosen successor, former President Eduardo Frei, by nearly 10 percentage points.
Leftist Brazilian President Inácio Lula da Silva’s approval rating remains above 75 percent and is among the highest in the region. Yet similar to the situation in Chile, Lula’s recently announced chosen successor, Chief of Staff Dilma Rousseff, trails São Paulo State Governor Jose Serra, an opposition candidate, by nearly 20 points. Brazil’s 2010 presidential elections remain a year away―plenty of time for Rousseff to close the gap in voter preference―but the fact that an opposition candidate is currently polling so strongly even as Lula remains widely popular is noteworthy.
And then there is the case of Mexico, where the conservative ruling party, the Partido Acción Nacional, or PAN, lost the midterm parliamentary elections held recently in July 2009 to the Partido Revolucionario Institucional, or PRI―a more centrist or left-leaning party than the PAN. Mexico has been particularly hard hit by the economic crisis due to its proximity and economic interdependence with the United States. Even though a host of factors are influencing Mexico’s electoral politics—such as high rates of public insecurity and violence due to the presence of powerful drug trafficking organizations—Mexico’s poor economic performance during the last year clearly had an impact on electoral results.
The takeaway for Latin America’s politicians and analysts is that keeping tabs on whether conservative-leaning or left-leaning candidates win this next round of elections is secondary to whether the winners of these electoral contests provide solutions to the region’s problems, which apart from the economic crisis’ effects include corruption, inequality, institutional weakness, and rising public insecurity.
If the ruling parties and governments do not or have not sufficiently addressed the full range of issues by the time the next election cycle begins—rather than focusing only on the economic situation today—we may see an electoral response that favors opposition candidates throughout the region, regardless of ideology.

As long as the democratic process unfolds in each country in a clear and transparent manner, hopefully the dominant political story of this next round of elections won’t be another rendition of “the rise of the left” or the “return of the right,” but rather will focus on how the new governments will deliver on their promise for a better future for Latin America’s people.
Stephanie Miller is currently a consultant on U.S.-Latin America relations and was formerly the Research Associate for the Americas Project at the Center.

Panama: so much more than hats and a canal

Janice Nieder
SF Girlfriend Getaways Examiner
Why Panama?

Because hiding in that skinny little isthmus is one sorely under-appreciated Latin American country that is poised to explode as 2010’s hottest new Latin American travel destination. It offers something for travelers of every ilk, starting with a rich history, jam-packed with colorful tales of famous explorers, Spanish conquistadors, pirates and smugglers, bloody wars, slavery rebellions, all leading up to one of the world’s most extraordinary engineering achievements... the building of the Panama Canal.

As for natural beauty, Panama’s got it going on. Flanked by the Pacific Ocean and the Caribbean Sea, there are miles of sandy beaches that are perfect for surfing, fishing and scuba diving; cool lush mountains just waiting to be climbed and biked, cloud and rainforests that will tempt the adventurer, and hundreds of gorgeous remote islands. (Calvin Klein and Playboy have both done model shoots here.) Cosmopolitan skyscrapers are just minutes away from steamy jungles teeming with wildlife. Crumbling colonial buildings are being transformed into edgy restaurants and boutique hotels. There is no shortage of vibrant markets, fashionable shopping malls, nightclubs, and luxury spas. About the only thing I didn't find in Panama were swarms of tourists.
After spending four days there last month, I highly recommend Panama as a unique, fun-filled, surprisingly safe, Girlfriend Gateway choice. (There were just a few sketchy run-down neighborhoods en route to Casco Viejo, which can be easily avoided by taking a taxi here.)
Day One
Checking out Panama City
Since I was visiting during the rainy season I expected Panama City to be unbearably hot and humid, and rainy, natch, but actually it wasn't bad at all. The warm precipitation seemed to freshen up the city and the sun would always shine brightly moments later. Plus, you can score some stellar hotel deals during the off- season.
Morning:
I awoke totally refreshed after a peaceful night’s sleep at the Country Inn and Suites. At first I questioned the choice of this rather generic hotel situated far from the hustle bustle of town, but it turned out to be a super location. My balcony had a sweeping view of the Pacific Ocean, dotted with boats bobbing under the soaring Bridge of the Americas, as they waited their turn to cross the canal. Country Inn sits at the beginning of the new Amador Causeway, formerly a U.S. military base, which juts out between the canal and Panama Bay and was formed from rocks excavated from the channel. This primo piece of real estate connects three small islands with a popular walking/jogging/biking path (plenty of bike rental shops nearby) that filled nightly with romantic couples taking full advantage of the glittering skyline backdrop.
Big Surprise:
A five minute jog down the causeway brings you to a startling tangle of dramatic beams, plaster and wire which is the result of four years work building the Bridge of Life Biodiversity Museum designed by Frank Gehry.

I spoke to the head engineer, who shook his head ruefully as he shared, “It’s the most exciting project I’ve ever worked on, as well as the biggest pain in the ass! Even Gehry’s simplest components turn into complex nightmares.”
He then proudly informed me that Gehry was married to a Panamanian woman. He hopes the iconic building will be finished next year and then this amazing accomplishment will provide an astonishing opening view for arriving cruise ships.
Head into town:
After a brisk, wake-up stroll, start your city tour by exploring the ruins of Panamá Viejo, the oldest capital in the Americas. This original 1519 Spanish settlement, sprawling over 57 acres, is now a UNESCO World Heritage Site. Stop in at the Visitor's Center and Museum for a thorough historical background and then climb Cathedral Tower for the money-shot outlook.
Time for Shopping:
Conveniently located next to the visitor’s center, the Mercado Nacional de Artesania, offers quality handmade crafts gathered from all over the country. Popular gift items include reverse appliqué stitched Molas sewn by the Kuna Indian women (these make good prezzies for teenagers who like to sew them on their backpacks), tiny ivory-like figures painstakingly carved from a tagua nut and intricately designed woven baskets, some are even tight enough to hold water.

Thursday, September 17, 2009

PANAMA CORPORATIONS ADVANTAGES

• Panama does not have tax information exchange agreements with other countries.
• Panama is planning to negotiate Double Tax Treaties to prevent double taxation.
• Panama Corporation Law has not been changed since it became effective in 1927.
• Law number 32 of February 26, 1927 (“Corporation Law”) expresses that two or more persons, of any nationality, even though not domiciled in the Republic of Panama, may form a corporation for any lawful purpose.
• In the practice, two nominee members incorporate the corporation.
• The articles of association is notarized and duly registered in the Public Registry of Panama.
• The Board of Directors must be composed of at least three different (3) members.
• Corporate entities from any jurisdiction, can act as directors.
• The corporation should have at least the following officers: President, Treasurer and Secretary.
• Corporate entities from any jurisdiction, can act as officers (President, Secretary and Treasurer).
• Nominee directors and officers can be appointed.
• Change of directors and officers needs to be filed in the Public Registry of Panama.
• No paid-in capital is required.
• No minimum or maximum capital requirements.
• Corporation can issue shares without nominal value.
• A connection between the paid-in capital and the value of the corporation assets is not required; The par value of the shares does not essentially correspond to the book value of the corporation.
• The shares of the corporation may be issued in nominative form or to the bearer.
• Flexible transfer of shares. Bear shares are transferred by delivery of the certificate. No filling is required in the Public Registry of Panama.
• The name of the shareholders of the corporation is confidential. The name of the shareholder is not public information. • No requirements to disclose ownership. The structure is confidential.
• Ownership may reside in a single individual or corporations and no part of the capital needs to be held by a Panamanian.
• A single person may be the owner of all the shares of the corporation.
• Shareholders, Directors and Officers are not required to be nationals or residents of the Republic of Panama.
• Corporate entities can act as shareholders and directors.
• Neither the Directors nor the officers are required to be shareholders.
• No requirement to hold annual meetings.
• Meetings may be held outside the Republic of Panama.
• Shareholders and Directors may attend meetings personally, by proxy, by phone or any electronic means.
• The corporation may execute in favor of one or more individuals a broad Power-of-Attorney to operate the company.
• The shareholder registry and minutes of the company can be kept in any part of the word.
• There is not restriction of the objects of the Panamanian corporation.
• Panamanian Corporations may conduct legal businesses all around the world.
• Income generated by Panamanian Corporations outside the Panamanian Territory is tax exempted.
• Corporation will only pay taxes on income from profitable activities within the territory of Panama.
• No need to file financial reports or tax returns in Panama if the company does not operate in Panama.
• Panama Corporations have to pay an annual tax of US$300.00.
• Panama corporations can be transferred to any jurisdiction.
• No restrictions on Mergers & Acquisitions.
• Every corporation ought to have a resident agent in the Republic of Panama.
• The resident agent is a Panamanian lawyer or law firm.
• KYC (Know your client) rules needs to be followed by lawyers before incorporating.

Air cargo shippers may show interest in Panama too

September 17, 2009
While the Canal expansion is getting most of the ink, Panama is also wooing U.S. air cargo shippers.As a consequence, the U.S. Trade and Development Agency (USTDA) has awarded a $258,000 grant to Gulf Coast International Cargo Panama S.A. to help conduct a feasibility study on the construction of an air cargo facility with cold storage capability at Tocumen International Airport.
U.S. companies may compete for the USTDA-funded study through the Federal Business Opportunities web site. Gulf Coast Panama will select the company.
“At present, few air cargo facilities in Latin America and the Caribbean have cold storage capacity, which hampers the region's ability to develop international markets for its perishable products and contributes to the region's food insecurity,”
USTDA said. Gulf Coast Panama, a private cargo and distribution firm, proposed to build a 2,330-square-meter air cargo facility at Tocumen that would include a refrigerated storage area for perishable goods.
USTDA spokesmen said the study will provide Gulf Coast Panama with a market analysis, an assessment of facility requirements, a financial plan, and both developmental and environmental impact analyses, all of which are needed to order to move to project implementation.
Posted by Patrick Burnson on September 17, 2009

Friday, September 11, 2009

Free internet is on its way

STAFF periodistas@laestrella.com.pa

PANAMA. The contract to bring free internet to the entire country, particularly low-income families, has been awarded to Liberty Technology Corp at a cost of $25. 5 million.
According to Liberty’s proposal, the 512kbps, 24-hour-a-day, wide band, 7 day a week wireless “Wi-Fi” and “Wimax” service should be up and running by the second week of October.
One of the promises of president Ricardo Martinelli during his election campaign was that people would have free access to internet within the first 100 days of his administration.
The free access points that will be set up in the first phase of the project will target numerous public areas including parks, tourist sites, schools, libraries, universities, hospitals and health centers in Penonome, Colon, David, Chitre, Las Tablas, Pese, Arraijan, La Chorrera, Santiago, Sona and the capital city.
In the second phase, public access sites in Meteti, Bugaba, Aguadulce, Chepigana, Ocu, Los Santos, Capira, Chame, Chepo and San Miguelito, Bocas del Toro and Changuinola will be put on line.
The second phase should be completed by 18 January 2010.
Liberty Technology Corp. will limit access to certain government-specified sites, including those involving pornography, “peer to peer“, gambling, downloading music and videos, and others.
The project entitled National Network for Universal Access is run out of the government’s Innovations Office.
The initial implementation costs will be $6.9 million, with an additional monthly fee of $310,000. Liberty Technologies Corp was founded in 2003.

Pope Benedict receives invitation to visit Panama

Vatican City, Sep 11, 2009 / 10:51 am (CNA).- After a visit to the grave of Pope John Paul II on Thursday afternoon, President Ricardo Martinelli Berrocal of Panama met this morning with Pope Benedict XVI and extended him an invitation to visit his country.

The meeting with Benedict XVI took place at the papal summer residence in Castel Gandalfo, just outside of Rome.
The audience involved a discussion of the current international and regional situation.
"Attention also focused on certain aspects of the situation in Panama itself, in particular on the social policies launched by the government, development projects for the country, and collaboration between Church and State with a view to promoting Christian values and the common good," a statement from the Vatican press office said.
At the end of their conversation, President Martinelli invited the Holy Father to visit Panama.
Pope John Paul II’s visit to the country in 1983 was the last time a Pontiff spent time there.