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The past week indirectly began to appear reports of public policies of the government of Ricardo Martinelli. These analyzes are not product of Creole politicking, but extremely serious comparative statistical studies. ">Although there was a slight improve seven points between TERCE and SERCE tests, countries less prosperous than ours showed an improvement of 50 points.
   ">   
It is on the issue of distribution of income and wealth in which our country has deepened its great social and economic failure. According to the World Bank, Panama is one of the 10 most unequal countries in the world. In 2009, 40% of the poorest received the ridiculous amount of 4.1% of gross domestic product (GDP) as income. ">By 2014, this amount is just 3.6% of GDP.

In most of Latin America, the second amount was less than the first by falling prices of raw materials. In specific cases such as Brazil, Argentina and Venezuela their economies were in outright recession. Chile had one of the worst earthquakes of the last half century and many Caribbean countries were battered by relentless hurricanes. Panama did not suffer any of this. ">By contrast, the Panamanian GDP grew as the belly of a child who is about to eat a whole cake for himself.

Analytical readers will surely claim that the poorest 40% in 2009 was less crowded than the poorest 40% in 2014. Others observed that in terms of nominal dollars, but in 2009 received more as a share, in 2014 the pie was much larger . However, these arguments do not take into account that precisely in this period the most generous subsidies offered the Panamanian government in its history were established: from 100 to 70, the Universal Fellowship, the Guardian Angel and continued Opportunities Network. All this without taking into account the regaladera food bags, the floor and ceiling, and the proliferation of very generous circuitales items that benefited converts friends and members alike. ">The net result is that the poor in Panama ended up poorer after the government led by Ricardo Martinelli.

To the credit of the former rulers, the Panama problem is structural.  ">Panama has historically been known for a high degree of inequality that follows the lines of social class, ethnicity, race, geographic location and education level, mainly.

 
">Why is it important to eradicate inequality?

If one reviews the literature of multilateral institutions on this issue, you will find some almost metaphysical explanations of the importance of equality. For me, equality has important social, cultural, economic and ethical advantages. Equality increases our competitiveness, reduce our mortality, improving public finances, builds institutions and sense of belonging. Although it is possible to imagine a very poor country where there is a high level of equality because everyone is miserable, the notion here presented aims to equal access to public services, opportunities for personal development and enjoyment of a favorable environment for development talent and peaceful coexistence.  ">Inequality is killing us.

 
">What are the root causes of inequality in Panama?

">Well we could build a grocery list of reasons underlying a highly unequal society from racism to corruption, but most think the following are essential:

">1. Weak spirit of national identity

The average Panamanian would be very easy to list the qualities and most representative cultural tastes of our country and although everyone is beating the heart when one of us in the Olympics, or the national team is in the Cancha, are precisely those exceptional samples of common identity which confirms the weakness of national cohesion. ">In many poorer countries, there is a greater number of volunteers that nourish the social fabric activism, and also, generally speaking populations tend to defend better their collective interests Panamanians.

">2. Institutional Fragility

Public and private institutions in Panama are very susceptible to distortions caused by a caciquista political culture and very exposed to dirty money. It's amazing how quickly a drug dealer or money launderer can be inserted into the highest circles of power, with no filters or barriers control. Although routine gives five years of the revolving door of the tens of thousands of officials who are thrown away every time you change the political party in power. ">Of course corruption and influence peddling are also symptoms of this problem.

">3. An exclusionary labor system

Labor mobility in most companies operating in Panama is not as easy or as wide as it should be. It is very easy to blame the foreign labor by this phenomenon, but the challenge exceeds the migration. It is overwhelming contact with most public or private work environments, because the level of inefficiency, stress and stress is extremely high. I know extremely successful businesses, where there is no promotion or salary increases for members who made possible that the company was thriving. There is no culture of training and academic growth conducive to improve workforce productivity. The crisis of the work culture in Panama is further compounded by the recession looming and technological transformation that has become extremely efficient to have call centers of many companies in Colombia, or bring to El Salvador or Mexico, a significant amount of ">administrative operations of large companies and previously done in Panama.

">4. Low rate of innovation

The most important innovation developed in Panama over the past 15 years has been the expansion of the Panama Canal. Although the medium-term it will bring a significant increase in maritime trade and port activity, the vast majority of Panamanians will not get a direct benefit from this investment. On the other hand, although the Metro de Panama has significantly reduced travel time from an average of 230 thousand Bogota daily, the economic cost of the dams in the metropolitan area exceeds 600 thousand million dollars a year. ">That is, that inefficiency in transportation and urban management cost the equivalent of a subway line every year.

">The deeper reflection is the absence of institutionalized innovation in both the public sector and private.

The country has no business incubators, and other than the exceptional case of the City of Knowledge, there is a favorable environment for scientific research or business innovation environment. How many companies are forming scientists and researchers to solve their business problems? ">While scientists Costa Rica will produce millions of dollars to its economy, with all kinds of innovations, Panama scientists are punished by a rapacious bureaucracy and political class that despises Phoenician intellectual, scientific and humanist.

">5. Predominance of an inbred enterprise architecture

Public policies that encourage the creation of wealth in Panama favor the concentration thereof in too few hands. Not that the Panamanian economy is small or that as we few, we all know. Here the fundamental fact is that the form of business interaction is mainly via relationships. When there is a business opportunity, the average Panamanian company does not seek to generate business opportunities for new players looking to relatives and acquaintances. It is what some have called as "the Republic of cousins." ">This eventually creates an inefficient and uncompetitive business class, which becomes a burden to the country's productivity.

We can imagine a bank only gives business loans cousins ​​and acquaintances of the owners, eventually that bank decreases its performance because the selection criteria is not what is best for the bank, but what is best for the family . ">Also hundreds of SMEs are marginalized to offer their services and grow, because both the government and the private sector insist favor a few.

I remember in the National Assembly when the draft was discussed Canal expansion is said that SMEs have much space in construction activity. the example of the multiplicity of providers meals, uniforms and trucks that have a chance of doing business is mentioned, and when the truth became a handful of well connected suppliers and benefit from highly lucrative contracts. In the United States, by contrast, banks and large companies are required to give a small percentage of their business to SMEs, especially those owned by women, ethnic or racial minorities. So it was that the IBM contract to a company SME to become his operating language provider for its line of desktop computers. ">With this contract, Microsoft began his journey as a technology giant.

To combat the deep inequality in Panama will not be easy because existing policies and business structures short-term benefit from this situation. Perhaps the most important step is to organize the population to know their rights and understand that the subsidies it receives are the crumbs that serve as payment to keep us in poverty. ">A century of foreign enclaves, monopolies and oligopolies national, and an all-embracing government hipercentralista executive branch have not allowed us to create an economy of talent and knowledge, favoring sustainable development of a better society.

Civic inequality feeds cynicism and deepens the sources of common crime. That unfairness is the worst enemy of Panama.

http://www.prensa.com/blogoterapia/causas-convierte-Republica-panama-desigualdad_7_4600109944.html

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  • I think education should be number 1 to be improved.
    • Yes that is number 1 education. In Singapore 20% of GDP is being spend on education.

  • I have to admit that any time I hear "distribution of wealth" it conjures up images of the USSR and it's modern day legacy countries like Venezuela and Cuba.

    The "Business Cousins" is logical in any business environment.  You use proven partnerships and people you can trust.  In fact, to get a contract with the US Government "Past Performance" (on government contracts or preferably the agency seeking the bid) is a significant part of your bid.  Lowest price does not necessarily get the award if the likelihood of performance to standard is sketchy. 

    Some people still talk about the "Nicaraguan Canal Project."  Dead before it started and more hype than anything.  The one issue you never hear people talk about is that even if the communists pulled it off, through the homelands of thousands of people ready to go to arms against it, et. seq., there is no business infrastructure in place in Nicaragua for all the support related to canal operations or a remotely conducive environment to business such as Panama has.  Nobody in their right mind would invest in Nicaragua in a commercial enterprise.

    Having said that, I have never done business in country and don't intend to. 

    BUT, if there is any country in Latin American that I would think about it would be one.

  • Hey!  Why so negative?  Let's look on the bright side. Panama ranks higher than Haiti.  All of Haiti's wealth (mostly in the form of foreign aid) gets funneled to the Clinton Crime Family Foundation.  Panama doesn't have that problem!  The income disparity between a Haitian and a Clinton donor is of quantum orders of magnitude greater than that between a Pana and a rabi blanco.

    • The corruption, theft, cheating, manipulating by the USA government is enormous. The multiple war crimes , bombing, droning people in many countries of the world . look at the amount of homeless people in the USA. Hillary Clinton and her stealing, lying.  The USA invasion of Panamá.

      First look into your own shit in the USA. Anyway lo perfecto es enemigo de lo bueno. First jail the Clintons and all the people involved. Better send Bill and Hillary to a working camp in North Korea.

      I am a libertarian and Gary Johnson is my favourite. 

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