Fighting the waste in Panama

As the tropical rain pours down outside, I am sitting here hoping that the tide is out. Otherwise, tomorrow morning we are going to wake up to news and images of the flooding throughout the lower parts of Panama City.

Unfortunately, Panama City has not done a great job of “city planning”, especially in respect to natural runoffs and areas of watershed. As the population and housing needs expand, the city has expanded. Encroaching on tidelands and mangrove forests. Though there has been a move now to curb the expansion into the mangroves, there has still been a lot of land-fill of the tidelands that were once the watersheds of the river basin. So, areas which were built 40-50 years ago, which have never flooded before, now flood regularly when the high tide and tropical rain meet.

Many people accuse the government of failing to deal with the issue of waste and rubbish blocking the sewage and storm water drains. But the issue is much bigger than this; there are

  • The typical issues of rubbish bags being opened by stray dogs, cats or vultures.
  • Failure to collect rubbish regularly (most weeks our rubbish is collected on a Sunday, or not). Sometimes we simply have to call and beg them to send a special truck to pick up because it’s been so long.
  • Homes here don’t have gardens and composting: and most people don’t even know what compost is anyway.
  • This is the tropics – you can’t just leave rubbish out for more than a day without it starting to turn rancid.
  • Re-cycling is virtually non-existent here and there is only a small culture of reuse and recycle.

I’m aware of this every Saturday when I go to the market with my own bags and I still have to refuse the offer of a plastic bag at each stall. I’m aware of this when I go to the supermarket and I see that most people are not carrying their own bags. And I’m aware of it when I see the rubbish on the sides of the streets.

This issue has not been addressed by recycling stations at the primary schools or outside supermarkets or gas stations.  Even trying to recycle paper and cardboard in Panama seems to be hard work! They don’t come and pick it up – you have to drive it over and drop it off. How many companies or homes are going to take the time to do that?

But I am even aware of it in my kitchen. Every maid so far has had to be trained not to simply throw away the peel and veggies that are “up to scratch”. They don’t realize that those ugly veggies that are not pretty enough for the salad can be used to make a fabulous vegetable broth!

And then they complain to me that I don’t have any bullion cubes for veggie broth! Really?  Admittedly, my cooked veggies from the broth that I then throw away (and keep only the broth) probably decompose much faster in the rubbish than the raw ones would have – they probably smell more as well.

But more than anything, I am appalled by the packaging at the supermarkets (not that I buy my veggies at the supermarket anymore) – the way that they individually wrap all in Styrofoam and glad-wrap! As if there wasn’t enough rubbish already.

But this is definitely a modern day problem, the same way that the floating island of rubbish is a problem in the middle of the Pacific Ocean and the plastic now found at the bottom of the Mariana Trench!

There are ingenious solutions found in a number of parts of the world, such as this solution to “flip-flops”:

It’s really easy to complain about the problem, it’s much harder to do something about it. Even on a personal level. I can make small choices:

  • a recycling bin in the yard (because I’m lucky enough to have a  yard)
  • the choice to take my own bags to the vegetable market and supermarkets and only buy fruit and veggies that are not pre-packaged
  • the conscious decision to hold onto the paper to take it to the recycling plant ourselves
  • metal / glass water bottles – which we refill regularly rather than buying bottled water

But the plastic bags, bottles and packaging issues need to be addressed on a massive scale if we are going to make any headway.  My little contribution is only a tiny grain of sand in the Sahara desert and that’s not enough.

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Panama, business, money, entrepreneur, business index, economy, doing business, starting a business, economic indicators, ideal business environment, import, export, fintech, incubators, assistance

Panama’s money stories, part 2

In Part 1 of Panama’s money stories, I highlighted some of the sordid details that Panama has been known for and the ways that Panama has been presented and vilified in the press internationally.  In this Part 2, I want to have a good look at what Panama has to offer, the strengths and weaknesses of Panama’s location, workforce, and infrastructure.  In Part 3, I am simply going to dream of “what could be” – well, because this is PanUtopia.

Location, location, location

Like any good real estate investment, Panama has a great location.

It is the Bridge of the Americas and the Crossroads of the World: with the InterAmerican (or Pan-American) highway travelling East-West along the entire length of the Isthmus (well, except for the Darien Gap which Panama refuses to open – but that’s fodder for another post). Running North-South through the Istmus is the Panama Canal, recently expanded to allow post-Panamax ships to pass through.

The Pan-American highway has many stories to tell, haivng 14,000 miles of road (or roads) that traverse from Tierra del Fuego all the way to the Arctic Ocean. I remember at 8 years old a French couple that had started riding their motorbikes in Argentina and were heading up through Mexico, intending to get all the way to Alaska! pedal moped, riding bikes, interamerican highway, argentina, alaska, mexico, colombia, Panama, Bridge of the Americas

They were something like this – but much more worn and dirty! And fitted out to carry their bags on the back, and side-bags.  At 8 years old, I could only imagine the adventures they were having!  Roll forward to 2018 and we still get those bikers through Panama – perhaps riding better bikes, but with the same adventuresome spirits!

As the land bridge between the two continents, Panama boasts an incredible variety of species, both plant and animal life.  From North America, it has jaguars, tapirs and deer, from South America sloths, anteathers and armadillos, and from the oceans the giant sea turtles which lay their eggs in Bocas del Toro and even on the Casco Viejo beach in Panama City!

Panama, Isthmus, land bridge, Bridge of the Americas, Crossroads of the WorldPanama is blessed in its location: we are protected from the hurricane belt, getting pelted only by tropical storms and heavy rain.  While Panama rests on the Pedro Miguel fault line, it does not have a history of seismic activity.  You might read about the 1621 earthquake, or the 1991 Bocas del Toro earthquake (which actually happened in Costa Rica, but caused considerable damage in the neighbouring Bocas area).  This is one the strongest recorded earthquakes in Costa Rican history, registered at 7.7! But, as noted, it was actually in Costa Rica…

Since the 1500s (you might remember the pirate stories) Panama has played an important role in international trade routes: from Peru through to Spain, with the French and the United States heavily interested in participation in the possibilities of this location.  Even today, Taiwan and China dispute investment and participation in the Panamanian economy (the ports), and a US presence is continually felt under the terms of the 1979 treaty in spite of the removal of a military presence.

Hub of the Americas

Panama Canal, Miraflores, locks, logisticsFrom this location, Panama has become known as “the hub of the Americas” – one of the most significant transportation and logistics countries in the world.

As a travel hub, Panama has developed Tocumen International Airport to attract flights from Europe (KLM, Lufthansa, AirFrance, Iberia, Turkish Airlines, & Condor), China, and North, Central and South America.  The recent investment in the expansion of Tocumen is about 84% completed, with an expected completion in the third quarter of 2018.  This investment project was above US$900M, taking it up to 54 gates and extending the runway for larger aircraft. By 2025, the two terminals are expected to handle some 25 million passengers per year.

Panama has also become an important hub for telecommunications, with the Submarine Cables passing through Fort Amador and Colon (such as the Arcos Cable that connects Central America, Florida and the Caribbean and the South American Crossing cable).  In 2010, Panama became one of the first countries in the world to offer free wireless broadband access nationwide through the National Internet Network project, which provides free wifi at libraries, some busstops and other government sites.  In Panama City, connectivity is pretty easy to get, but there are generally fluctuations in the areas where there are not fibre-optic connections.  For businesses that rely on fibre-optic level connectivity, there are a limited number of neighbourhoods that can guarantee this service.

Panama, shipping, transportation, logisticsAs a logistics hub, Panama intends to make the most of its geographical location, creating the largest logistics conglomerate in Latin America. Shipping, logistics and trade contribute close to 35% to the national economy, making the concept of “hub” vital to Panama’s growth.  It uses the Canal, the ports on the Caribbean and Pacific Oceans (MIT, CCT, Cristobal, Balboa & PSA), the train line between the ports, and Tocumen International Airport (Copa, DHL, FEDEX & UPS), to provide multi-modal solutions.  This is all interconnected with the Colon Free zone and Panama Pacific zone.  The logistics industry is expected to create 10,000 or more jobs per year for the next 10 years or so – over 100,000 jobs in a growing industry!

Obviously, in order to fully develop this hub, Panama needs to continue investing in additional infrastructure for distribution and storage essential to the international business community.  Georgia Tech maintains a Logistics Innovation and Research Center in Panama, aimed at aiding the country to become the trade hub of the Americas.

Open for Business

Panamanians are complaining that the economy has really slowed, and yet it continues to be the 2nd fastest growing economy in Latin America. While the growth rate dropped from 11% in 2013 and 5.3% in 2016, it is still over 4.6% in the first quarter of 2018!  Infrastructure investments are underway in a number of areas, including the building of the second metro line in Panama City and the studies underway for another bridge across the Canal, which will include a metro rail bridge for the third line.

Depending on who you believe, and how the scoring is done, Panama ranks #3 in being “open for business”.  The World Bank rates Panama as 79th, taking into account a number of factors, and 39th for the ease of starting a new business.  Apparently registering for and paying taxes in Panama is one of the most difficult aspects of doing business in Panama!  But, hopefully that ranking will change, with the adoption of the online tax payment system implemented recently.  Panama is also ranked 54th in Economic Freedoms, which looks at rule of law, government size, regulatory efficiency and open market criteria.

That said, Panama continues to consolidate its position as a business hub, as the headquarters for more than 130 multinational companies!  The principal business and investment attractions for Panama are:

  • corporate headquarters & regional services
  • multimodal logistics
  • infrastructure development
  • maritime services
  • light manufacturing (free zones)
  • renewable energy investments
  • tourism

This translates into the following prime locations/special laws and incentives:

  1. Panama Pacific 
  2. Ciudad del Saber
  3. Colon Free Zone
  4. Special Free Trade Zones (dotted around the country)
  5. Multinational Headquarters

In terms of quality of life, Panama is ranked #1 in Central America and #4 in Latin America (UNDP).

Workforce & other challenges

workforce, employees, professional, training, educationAs I pointed out in my previous blog post about Panama’s money stories, corruption is probably the biggest obstacle that Panama faces – and it certainly is as far as perception goes. While Panama’s economy is stable and Panama has a well-developed services sector (most employment in the areas of banking, commerce, tourism and logistics), Panama continues to under-prepare its workforce for modern challenges. The poorly educated workforce ranks as the third obstacle in business for firms!

Education standards are considered to be poor by the World Economic Forum. The quality of public school education in Panama is still under fire, with a World Bank study indicating that upon completion of secondary school, the quality of the education is equivalent to 8 years of education, rather than 12.   Panama has taken important steps in improving the level of English in the public school education system, but still needs to modify the focus at Univeristy level.  Nonetheless, tertiary education is not in line with the needs of the marketplace – as social sciences, administration and law continue to be the predominant choices for students, rather than technology and sciences!

Back in 2016, news sources were reporting the problems employers faced at job fairs: while 72,000 jobs were on offer, only 25,000 people joined the labour market through these fairs, because they were under-qualified or lacked experience.  Call-centers in Panama provide about 14,000 jobs to the Panamanian workforce – the principal ones in Panama are Dell and HP.  But there continues to be a need for better qualified English-speakers for Call-Centers.  Even in 2018, Panama faces these same challenges in logistics, tourism and even the construction industry.  Among the listed skills required are “soft skills”, such as discipline, punctuality and others.

At the same time, it appears that Panamanian firms do not do well in offering formal training to their employees, which does not assist employees in getting the industry specific training that they need.  Training for tourism or customer services is virtually non-existent and foreigners are constantly complaining of the bad service in restaurants.

Retraining, especially in technical schools, is very low.  There is a “stigma” attached to working in “manual labour”, and yet a dearth of properly qualified electricians, plumbers and specialist construction workers. Improvement is especially necessary in the vocational and technical areas. Everyone is a “handyman” and “knows how to do it”, but the reality is that you wouldn’t be able to pass inspections!  And as Panamanians have sought to move out of “menial labour”, Nicaraguan, Colombian & other immigrants have taken the posts of maids and housekeepers.

There are laws protecting many professions, such as law, medicine, dentistry and engineering. This means that foreigners cannot practice in these professions in Panama.  Yet, one of the fallacies is that chemical engineering is reserved solely for Panamanians – but Chemical Engineering isn’t actually taught in Panamanian Universities! Guess how many chemical engineers we have…

Inflexible labour laws are another cause for complaint among prospective investors into Panama: firing is heaving regulated, labour mobility is limited and labor typically costs 41% more than the paid salary (including social security, holiday pay, liquidation costs, etc.).  Panama’s minimum wage is the highest in Central America, and it is often difficult to find fluent English speaking employees.  Panamanians typically have an intermediate to advanced level of English, but are seldom proficient in business writing and customer service level English.

 

All of that said, Panama continues to be one of the most attractive places in Latin America for investment.  And yet, with respect to innovation, Panama still has so much to learn.

Panama, business, money, entrepreneur, business index, economy, doing business, starting a business, economic indicators, ideal business environment, import, export, fintech, incubators, assistance

Panama’s money stories

Last month I saw this tweet regarding Panama’s money story:

In Panama, there are three types of money: old (from the grandparents), corrupt (from politicians and friends) and dirty (drugs, weapons, laundering, etc.)

Panama’s reputation as a country of carpetbaggers, “cocaine towers” (from the Tailor of Panama), the “home” of #PanamaPapers (even if most of the guilty parties were spread across the four corners of the globe), the country where Odebrecht continues to receive government and municipal contracts in spite of the scandals and admissions of guilt, and the general “juega vivo” precedes it.

But how true is this really? Is the only money in Panama really old money, corrupt money or dirty money?

In this post, I want to have a look at how Panama suffers from both a reality issue and a perception problem.  In my next post, I want to look at the opportunities that Panama offers, the free market, the incubators and technological advantages, as well as looking realistically at challenges (labour force, incentives for small & medium businesses) and close with a third post offering some suggestions for those living or moving to Panama that can make this country the land of opportunity that it really is: the “bridge of the Americas”, the “crossroads of the world”.

The strikes against Panama:

A history of #Pirates and #Carpetbaggers

Anyone in Panama can tell you the history of “Captain” Henry Morgan, the “privateer” who invaded Panama in 1671!  It is an extraordinary story in military history – the capture, sacking and burning of Panama City – especially when you consider that it wasn’t a military campaign. It was just plain piracy by an intrepid Welshman and his “men at arms”!  With 37 ships and possibly 2000 men, Henry Morgan set out for Portobelo, Panama, to pick up the gold that passed through from Peru on its way to Spain.

A few years earlier, he had asserted himself in Portobelo.  Instead of hitting the two fortresses that guarded Portobelo from the sea, where they would have been seen and expect, Morgan landed elsewhere and then marched his men through the jungle and attacked one of the forts from the landward side, in a surprise assault. They took the fortress over quickly, massacred the defenders and blew up the armaments!  The attack on the 2nd fort had many casualties, but was still effective.  Holding these two strategic points, Morgan sent a ransom demand to the Spanish governor of Panama: 100,000 pieces of eight – possibly some $12 million today.  At that time, he took his money and left.

Portobelo, Panama, ruins, pirates, Henry Morgan
Portobelo ruins

But now, set with some 48 cannons and more than 30,000 pounds of gunpowder, Morgan set out to attack Panama City itself (on the Pacific side, not the Caribbean Sea).  To do this, he had to take his men by boat up the Chagres river, so they first hit the Chagres fort. By luck, a shot from one of the pirates set fire to the Spanish magazine, with the resulting explosion devastating the fort and allowing the pirates to storm its walls.  Leaving a small garrison of men behind to guard the fort, Morgan lead some 1,200 men into the jungle to cross the isthmus on foot.

They almost starved to death, crossing the Isthmus, as the Spanish burned and stripped everything in their path, knowing they were coming. They were anticipated when they arrived finally in Panama City with a contingent of 3,600 Spanish troops, some of which were cavalry.  To Morgan’s advantage, the ground was boggy and the horses were unable to maneuver. They cut down most of the cavalry with accurate fire, and when the Spanish tried to stampede a herd of cows, they gratefully slaughtered and barbecued the beasts!  Seeing their cavalry cut down and their stampeded herd slaughtered, the Spanish infantry fled, clearing the way for Morgan’s assault on Panama City itself.  Morgan eventually returned to Portobelo with 175 pack animals laden with treasures. As history books go, the “pirate” Henry Morgan died as “Lieutenant Governor Sir Henry Morgan”, rich and respectable.

Panama City, ruins, pirates, attack, Henry Morgan
ruins of Panama Viejo

As history and geography would have it, the Camino de Cruces of Panama – the legendary trail across the Isthmus – lies between two rich colonial ports, with a history rich in gold and gold that was plundered by pirates!

Most people don’t know that the treaty “The Hay–BunauVarilla Treaty (Spanish: Tratado Hay-Bunau Varilla)”, signed on November 18, 1903, by the United States and Panama, was signed by a French-man with the United States.  This treaty established the Panama Canal Zone and the subsequent construction of the Panama Canal. History kindly refers to Philippe-Jean Bunau-Varilla as “the French diplomatic representative of Panama”, many Panamanian historians describe this treaty signing process a little differently (like how the Panamanian representatives were told to “shut up”).

Panama deals, Panama, carpetbaggers, taking advantage, pillage, raping the natural resources, scoundrels

It is said that Bunau-Varilla was an important shareholder in  Compagnie Nouvelle du Canal de Panama, which still had the concession, as well as certain valuable assets, for the building of a canal in Panama. He had not been in Panama for seventeen years at the time of representing Panama before the United States and never returned to Panama after the negotiations. For some reason, as part of the treaty negotiations, the US bought all the shares and assets of Compagnie Nouvelle du Canal de Panama for US$40 million (yeah, $40 million in 1903).  I’m not saying he was a carpetbagger: you can draw your own conclusions.

The “carpetbaggers” come down from “the north” seeking private gain in the underdeveloped “south”.  According to the Merriam-Webster Online Dictionary, a carpetbagger was an

“Epithet used during the Reconstruction period (1865-1877) to describe a Northerner in the South seeking private gain. The word referred to an unwelcome outsider arriving with nothing more than his belongings packed in a satchel or carpetbag. Many carpetbaggers were involved in corrupt financial schemes.”

Unfortunately, I have seen my fair share of foreigners coming into Panama with an idea to “get rich quick” and then making off with “the spoils”, leaving their investors (often other foreigners) high and dry.  There’s also some stories about Panamanians having done the same, such as the title dispute in Bocas over Hospital Point:

“Stephens, 75, an entomologist, came to the isthmus in 1959 to work for the fruit company. In 1970 he bought Hospital Point, two acres in area, with title dating from 1899. Later on, he bought possession rights to several acres south of the point. His neighbors are a Gnöbe Indian village and another American, Jon Nilsson, who bought possession rights to twelve acres south of Stephens and build a vacation home.”

But a guy showed up with a hand-drawn map, claiming his grandfather had left him that land. When his map was found to be faulty, “no problem”,  “My surveyors will fix that”.  The claim is going through the court-system.  For more on this story: http://laestrella.com.pa/panama/nacional/carpetbagger-hospital-point/23749723 

But most of the cases are like those of “Too Good To Be True” – foreigner on foreigner. Developments and investments where the developer has “gone bankrupt” or left the country with the purchasers money before finishing the project and delivering.  The best advice I read in that article was:

If it seems too good to be true, it most likely is. Panama has many flaws that will not be seen on a two week visit.

Due diligence is required for Panama to be right for you.

Even the late Lee Zeltzer warned in 2011 of a guy “doing the rounds” in Boquete, trying to get people to invest money in a marina project that he wasn’t the owner of!

#Corruption

Since 2016, Panama has been immersed in the “Lava Jato” scandal of Odebrecht.  So far, 43 people have been charged with corruption and related crimes and have been identified as having received money from the Brazilian giant.  News outlets world-wide have outed many politicians, and locally we read news articles that express the following:

  • “In Panama there is a feeling that many people of the current Government are involved in the Odebrecht scandal.”  “Despite of rumors and accusations against government officials involved in the Odebrecht case, no clear evidence has been laid on the matter.”  “Fernando Migliaccio da Silva, executive of the Brazilian construction company, responsible for paying the bribes of the company and close friend of Marcelo Odebrecht, said that two people associated with the company, Luiz Eduardo Soares and Rodrigo Tacla Durán, repeatedly traveled to Panama to avoid the government’s cooperation with the investigation.”   http://www.panamatoday.com/special-report/odebrecht-corruption-scandal-has-left-traces-panama-4624
  • “Odebrecht has become the largest government contractor in Panama in the past decade, with contracts totaling upwards of US$500 million, including one for the construction of a subway line in Panama City.” In these cases, there is $59 Million identified as having been paid out/received by the 43 implicated and charged.  “Although a number of defendants in the case have remained anonymous in order to preserve “the principle of presumption of innocence”, according to a statement from the Roland Rodriquez, spokesperson for the Prosecutor’s Office, some of the high profiles charged with bribery are ex-president of Panama Ricardo Martinelli and his children, among other well known officials.”  https://www.telesurtv.net/english/news/Suspects-in-Panama-Odebrecht-Corruption-Probe-Rise-to-43-20170727-0010.html
  • “Third witness says Varela {current President of Panama} took money from Odebrecht”  “Now the specific allegation is that his party’s 2009 campaign — which was dropped after an alliance with Ricardo Martinelli was formed at a meeting at the US ambassador’s residence — got $700,000 from Odebrecht via a US foundation.” “In the October 30 online edition of La Prensa, it was reported that former Panamanian ambassador to South Korea and Panameñista Party activist Jaime Lasso told anti-corruption prosecutors that the Brazilian construction conglomerate Odebrecht gave $700,000 to President Varela’s 2009 presidential campaign.”  http://www.thepanamanews.com/2017/10/third-witness-says-varela-took-money-from-odebrecht/

Lava Jato, Odebrecht, corruption, stadiums, World Cup, scandal, investigations, politicians, corrupt businessmen, kickbacks, kick back, bribes

On the other hand, almost 1/3 of Brazil’s current ministers of government are under investigation.  In Colombia a former senator and the former vice-minister for transport have already been charged.  In Venezuela a number of people were implicated, all the way up to the President Nicolás Maduro. Peru has two ex-presidents under investigation, and even the opposition leader Keiko Fujimori has come under investigation.  (more at http://www.bbc.com/news/world-latin-america-41109132) This is considered to be one of the biggest corruption cases in history!

#Dirty Money

After all that history of Panama’s money stories, how much more can I say about the dirty money in Panama? Almost thirty years ago when you mentioned “Panama”, everyone responded with “Noriega”. If you were lucky, someone had heard about the Panama Canal and that would be the topic of conversation, rather than Noriega and the 1989 invasion!  Twenty years ago you mention “Panama” and everyone is talking about John le Carré’s book “The Tailor of Panama”, the cocaine towers, and his own description of how he”was drawn by the obvious corruption of Panama and the wonderful collection of characters you meet there”. Ten years ago, you mention “Panama” and every one says “oh, the canoe lady“, referring to the Anne Darwin case of the missing canoeist who showed up alive and well in Panama, alleging “amnesia”.  Role on 2016, twenty years after Le Carré’s publishing of The Tailor of Panama and you get the #PanamaPapers!

Panama, Darwin, canoeist, missing, scandal

A 2003 examination of tax havens by Jeffrey Robinson quotes a US Customs official as saying:

[Panama] is filled with dishonest lawyers, dishonest bankers, dishonest company formation agents and dishonest companies registered there by those dishonest lawyers so that they can deposit dirty money into their dishonest banks. The Free Trade Zone is the black hole through which Panama has become one of the filthiest money laundering sinks in the world.

Of course, Robinson’s book then goes on to say:

It is a path that leads ultimately to the dealing rooms of New York, the vaults of Zurich and the plushest boardrooms of the City of London.

But most people get stuck on the first quote.  And this perception of Panama is shared by all the publicity on #PanamaPapers, which focused on “The Secrets of Dirty Money“. Of course, the name itself fails to remind readers that most of those secrets were because Mossack Fonseca had “offices in more than 35 locations around the globe” and that most of the referrals of clients were from “first world” countries – bankers, lawyers and other professionals.

PanamaPapers, Panama, money, dirty money, scandal, challenges

On the other hand, there are issues that Panama is tackling in the non-financial institution sectors.  As highlighted in Open Democracy:

the task force identified nearly 730.000 Panamanian businesses considered to be at “high risk” of participating in money laundering. The group found that supervision of these entities is low, and that most of them are still active.

Nevertheless, in 2016 and 2017, Panama took some significant steps in legislating and implementation to clear up those areas of business which were previously unregulated or unsupervised:

The final challenges – perception & development

I can remember speaking with a client on the phone in 1996, who would be visiting Panama for the first time, and he asked me what kind of clothes he should bring and how far out of town the airport was.  I don’t know what got into me that day, but I told him to wear his khakis, and that we would have a white land-rover at the airport to pick him up, and that he shouldn’t worry too much about the accommodation, because we had managed to put air-conditioning in our “huts” in “town” with generator electricity. When he arrived in our office a few days later, he was livid at me! He’d only brought khakis and taken everything I had said seriously!

Image result for caesar park  hotel panama cityHe really did think that he would “walk down the steps” off an airplane at a “jungle airport” where a driver would pick him up in a white land-rover and drive him into “town” which was basically huts. When he got through the airport and the driver ushered him into a sedan and took him to the Caesar Park hotel, he realised that I had been pulling his leg!

In my defense, I was young, with a sense of humour! But those are the images that he had in his head of what he was coming to in Panama!

Some rustic huts, sitting on the beach, perhaps?

Panama, development, challenges, infrastructure, perceptions

It really is all about the perception!

And Panama continues to battle with the perception of how life is in Panama – “Banana Republic”.

 

But, I disagree with Ursula Keiner – I think there is a lot of room for money to be made in Panama by honest, entrepreneurial investors.

Crystal clear streams & rivers

So, in the midst of all the discussion worldwide regarding climate change and whether the extreme weather conditions in the US (fires in Washington, Oregon, Montana & California and flooding in Texas & Florida from two mammoth hurricanes) are somehow man-made; with more than 41 million displaced in Asia from monsoons and rains with flooding in too many places to count, Panama seems idyllic!

So, it was with considerable amazement that I watched a rather well-known figure in Panama get trolled for polluting the environment. Contributing to the problem? Definitely. She should definitely have known better! (First rule – don’t get caught. Assume that someone is following you and filming you in everything you do).

Well-dressed, in high-heels, she took bags of rubbish out of her car and proceeded to push them through the railings into the stream and watershed below. And that, ladies and gentlemen, is one way that you get rubbish in the waterways!

Shame! Shame! Shame!

panutopia-rubbish-fine75

panutopia-rubbish-trolled-twitter

This poor lady was all over Twitter, Facebook & WhatsApp in Panama, with a zoom in on her number plate, and shortly thereafter, the Traffic authorities tracked her down, and gave her a fine.

A paltry, measly and worthless US$75.00 fine!

That’s what you get for throwing rubbish out of your car window. Or, in this case, for taking bags of rubbish out of your car and pushing them through the railings and into the stream below.

The internet was having none of it! They tracked her down and then they blew her up. They trolled her, they tracked her and they made sure that she knew “everyone” had seen her.

And then they started asking: “what was in the bags that she couldn’t just throw them into a rubbish bin somewhere?”

So much so, that some reporters actually climbed down into the gross and dirty waterways to rescue those rubbish sacks and open them to have a look!

I have no idea what people were expecting them to find, but the reporters seemed to be quite disappointed when they opened the bags and simply found rubbish.

So, while the rest of the world is either on fire or flooded, Panama is on fire because some unrefined lady (and I use that term very broadly) threw a couple of rubbish sacks into a river that may (or may not) be part of the bigger problem of flooding in Panama.

So, some of water is not quite so crystal clear. More like, shirty (yes, I made up a word) water.

Let’s put this in perspective, shall we? Just for a moment?

We’ve got:

 

Because we have fires from California to Washington, from Montana through Idaho and Colorado: and no hope of rain for that part of the country.

And then you have #HurricaneHarvey and #HurricaneIrma tearing through the Texan gulf and the Caribbean: Harvey was a Category 4 by August 25th. The flooding in Houston is still not cleared, even after 3 weeks. And so you end up with tweets like this:

Across the world, 41 million are displaced from flooding in Pakistan, India & Bangladesh. Mumbai flooding:

Honestly, why would we even think Panama has a problem? In the August flooding, there were only 283 homes affected, possibly some 2,000 people. This was the worst of the flooding:

Some houses just had to clear out the water but there was no major damage. But I know these parts of town – they are old parts (well, by old I mean built more than 30 years ago). Before this, they have never been susceptible to flooding. So what changed?

In other flooding in September 2017, there were a grand total of 7 houses affected. Yes, you read that right: 7 houses.

Siete casas afectadas por inundaciones en San Sebastián. Vía @Sinaproc_Panamapic.twitter.com/58f9ZB4Kpx

 

— TVN Noticias (@tvnnoticias) September 9, 2017

But then there’s the news and allegations that the garbage that caused this flooding:

A little bit of hard work and maintenance clearing those waterways, and we’ll be all fine and dandy, right?

Unfortunately, it rained after all of this work was done, and today everything got flooded all over again!

What could be worse than a culture that does appreciate clean & tidy? How about a culture of corruption where building permits and landfills are approved for wetlands and swamp areas, clearing of mangroves to build communities, thus blocking off all the exits for that water when the rains hit?

I’m told that just downstream from all these affected areas there are new landfills for housing developments. But that’s all – rumor has it! Of course, I don’t see anyone trolling the developers and construction companies? It’s much easier to blame the poor than to think that maybe it’s our development that is partially responsible for the destruction to the environment.

Don’t get me wrong, I’m all for development. There is a lot of need for good housing in Panama. But there is also town-planning or city-planners and responsibility to do it properly without cutting corners. I have a feeling some corners may have been cut here!

PanUtopia:

Utopia would be living in a country that provided an education to the engineers, architects and city planners that included respect for the environment. Where rather than regulating them out of business and making compliance impossible, there were incentives for full compliance; where approval processes were simple, yet effective in ensuring that proper planning and projections were completed. It’s not enough to consider whether “your development” will get flooded: “love thy neighbor” should mean that you don’t cause harm to another either.

Utopia would be a country where this actually got investigated and studied: where University students were actually out in the field looking at these difficult cases and working out what should have been done differently, so that when they are professionals and working, they have seen the actual effects of cutting corners.

But that would be Utopia.