Panama Becoming World Class? |
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| Written by Matt |
| Wednesday, 26 August 2009 06:48 |
 It's sometimes ironic how stepping back from Panama allows one to focus more clearly on its nuances. Currently in the midst of a US-wide tour visiting friends I haven't seen in ages, I've come to some conclusions beyond how fat everyone has gotten. Life in the US, compared to Panama, used to be one of artificial excesses and costs. The prices, both literally and figuratively, of living or working or vacationing in exotic Panama were poles apart from doing so back home.
When groups of foreigners arrived in a bubble of Panama pre-boom-hype, they arrived to a one-trick town. A city on steroids. A three-legged milking stool of trade, banking, and concentrated wealth. There was potential because juice was flowing and no one was there to capture the run-off. While looking back you could throw a few additional legs in there (tourism, real estate, medical services) everything more or less evolved in Panama by accident. There was no hard-fought focus or careful planning by the government, but rather a surge of invention by those who knew what a great place it could be. To be world-class. Amidst a state-endorsed declaration to become world class, here are four areas in which I feel Panama has oppositely declined over the years. These are facets that, while difficult to calculate or really put a finger on, represented to me the best of what Panama had to offer as an emerging nation. They are now beginning to signal merely eras of the past. 1. Cost of living: Panama is touted as a cheap place to vacation and live, and at one point this was rightfully so: hotels were cheap, meals were too, rent was delightfully affordable. But not unlike the overnight rap sensation or the premature NBA signing forgetting his roots, a sense of reality got lost somewhere amidst Panama's rise to fame and the very things that made the country an inexpensive alternative became just as expensive as in the developed world. In my recent trip home, I would say on average, the nicer things in Panama (that is to say, the things that first-world investors/travelers like to consume) sit on par with those in a mid-level US city (Atlanta, Philadelphia, Boston). My personal basket of goods - a financial hodgepodge of transportation, entertainment, food...etc - increased in Panama by about 30% over the past few years. For my budget, I could now just as comfortably live in a mid-range US city. 2. Ease of business: In a rogue sort of way, doing business in Panama was great for all the wrong reasons. The bribes, the blind eyes, the Wild West attitude that anything could be done as long as you knew the right people. With Panama's attempt to become "first world," one could argue it has become a victim of its own intent. Immigration, corporations, licensing, permits: small businesses and entrepreneurs who choose to play by the rules now jump through carnival-like hoops to operate and if you don't have plenty of capital to jump through hoops, you're a sitting duck. While the needs of Panama's markets still far outshine anything left in the US, the sacrifices in Panama have begun to be reassessed. 3. Expectations: It's a hard notion to stamp on a country, but for me the pleasure of living or vacationing or doing business somewhere can often be narrowed down to its people and more specifically, the expectations government has for them. A lot of Panama's heavy lifting is done by the Canal - a virtual and indestructible money machine. However in most of the country's other realms, complacency has become more and more the name of the game: an unyielding comfort with the status quo: an unmotivated acceptance of class definition and how to capitalize on foreigners with the least amount of work necessary. Climbing one's way to the top is unheard of in Panama: you're either born with it, or you're not. And in a lot of ways, the powers that be have resigned to keep things this way. Expectations in Panama have become less demanding of Panamanians, which equates to anti-progress. 4. Entrepreneurial spirit: Statistics have a difficult time capturing the true do-it-yourself business ethic we associate with developing cities (the roaring 20's, the dot-com boom in the 90's). In Panama, a small-business boom sprung from a one-dimensional economy and grew as the byproduct of rapid growth: there was an openness and energy that permeated the business community and a faith that anything in Panama could be overcome through dedication, problem solving, and some third-world charm. Over the years though, this spirit has tangibly started to fade due to a number of factors (primarily something resembling exhaustion). The once-infectious enthusiasm in Panama is now something more of a drone, with once-non-existent formalities now increasingly more obstacle-like. It may be ironic that, as Panama nears 2010 with a focus on acceptance in the broadest sense of the word, it's simultaneously beginning to lose the very foreign pioneers that once found its untailored charm so appealing. Most recently, Panama's politicos decided to throw it out there: a simple goal to make their country world-class; to compete with the likes of Paris and Madrid and New York and Tokyo on all levels. But how? Panama hasn't pushed hard to develop any specific sector? It hasn't built its own identity or uncovered a gold mine or embraced a particularly unique gem. It hasn't, in looking back, really changed much from the Panama I remember five years ago. The buildings are taller, the booze is more expensive, and everyone seems to walk with a swag: as if this rise in popularity was the result of carefully strategized hard work. Change seems to be a popular theme in today's political renaissance, but it requires building blocks and a foundation. I see people leaving Panama everyday. People who'd been there for years. They choose to leave not because of the traffic or the roadways, but a simple thing called frustration. Maybe it's just that Panama has a way of wearing you out: that those people's time has come and a new group of adorers will arrive in their place. My recent trip to the US didn't refute that Panama still has immense potential. It did however suggest that world-class attributes in places like San Francisco and New Orleans are almost impossibly hard to develop over night. Whether deservedly or not, Panama got a taste for champagne really quick. There are traces of stardom (a revolutionary administration, improved social indicators, deathly beautiful landscapes, San Blas, Casco Antiguo...etc). However, there are also the inherent snags seemingly forever woven into the fabric of society (corruption, work ethic, exploitation). These two forces may pull at the strings of Panamanian progress for eternity: the type of dynamic, ironically by way of evolution, that may never develop as people wish. Image: dreambox.com/blog/wp-content/uploads/2009/01/math-skills-restaurant-bill.jpg
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Comments (11)
  written by Marcy , August 26, 2009 Matt, I respect your views and ultimately think you are pretty accurate. Panama, as much as I love it and as much as it's deteriorated in my eyes, will always have the same fundamental problems that keep it from becoming (and I laugh when I say this) world class. I think Martinelli and his crew should focus less on being the best and merely try to be good enough. As you say, some are born with it and others are not.
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 written by Boquete Safari , August 27, 2009 Again, you're observations are right. I'm glad to hear that I'm not the only one feeling this way.
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 written by Bonnie , August 28, 2009 President Martinelli and his Cabinet are trying hard. The Latino mentality is something totally different from the anglo...
Just consider this: in Panama, the blood that runs through our veins also has a mixture of pirates' blood! report abuse
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 written by bonniemaravilla , August 28, 2009 Dissapointed? Please, don't be. Hopes are that Martinelli will improve the country's way of business.
President Martinelli and his Cabinet are trying hard. The Latino mentality is something totally different from the anglo... Just consider this: in Panama, the blood that runs through our veins is also mixed with the pirates' blood! Please, give us a chance, would you? report abuse
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 written by BV , August 28, 2009 I agree with most of your analysis. Am I glad that someone took the time to describe a down to earth picture of the situation in Panama. Every time I talk to the realestate agents they paint a picture of El Dorado and I am not sure of what country they are talking about. The average Panamanian is hurting, the employment rate is not increaseing as fast as the new workforce entrance. The public eduacation and health system has to be improved in quantum leaps. And yes, as you say, Panama is not cheap, contrary to all the anouncements that you can live with $800 a month playing golf, with maids and living on the beach. It is just not true.
Panama has made enourmous strides but it still a long way to go. The small sectors that have developed mainly realestate, is not a development motor that will provide benefits to the vast majority of the population. report abuse
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 written by Flint , September 02, 2009 Oh the sad truth is coming out. Panama isn't really that cool of a place to live or do business after all. After 5 years here, instead of being energized by the opportunities,I cringe at the thought of trying to launch a new business idea in Panama. Between myself and my partners, we have invested US $10 million in this country and we were about to bring another $40 million and then it dawned on us that none of the partners wanted to stay in the country to run the business and see the investments through. Why? Ask anyone who has been here working for a few years. The corruption layered with government inefficiency or ineptness (your choice), a really poor quality of employee (white and blue collar), a poorly motivated and trained professional sector (bankers, attorneys), the sense of entitlement (particularly when dealing with foreigners) and the general I don't give a damn attitude of the Panamanian people has left us, a very enthusiastic entrepreneurial group, who has worked all over the world - dull, frustrated, and just ready to get the hell out and move ourselves and investment dollars elsewhere. And guess what Panama, the executives who run the PG's, Caterpillars, GE's and other multinationals that everyone is banking on to boost the local economy are figuring it out as well, not to mention the horrible experiences many tourists are having. It won't take long before Panama falls on the short list of the least popular countries to live, work, and play.
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 written by E. Gregor , September 25, 2009 great article, matt, can i reach you some how? doing a story for forbes and want to feature panama.
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 written by wwlc , September 26, 2009 World Class is hard to accomplish and will not happen if things continue as you state. I'm trying to build on the Azuero peninsula and have experienced all of the above. There is virtually no accountability. When the times get tough (going world class)the tough get going. This is not my experience. Things look affordable at first until you realize you have to do things 4 times to make them world class. World class standards and doing things right the first time come hand and hand. This comes from the top down.
I love many attributes of Panama and would love to spend my life here but getting things done and done right is becoming too painful. The next month will dictate if I move forward with my projects. I need my attorney to make things happen. I have several peers watching the process to see if they will invest millions into Panama's economy. report abuse
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 written by Crew , September 26, 2009 Another thing that ticks me off is there is no attempt to have legal documents available in English. This would make doing business here so much easier. Not to mention more English speaking government workers. Immigration...now here's a whole different nightmare. We been waiting for our "Investor" residency for 18 months. My lawyer has worked their butt off. The past administrator, after we were told that it has been approved and just awaiting signature, denied it along with several thousand more. What a piece of shit they are. They took $100's of thousands in bribes to admit immigrants but if you did it the legal way you were screwed. So far the new crew at slowmigration isn't doing any better. All you get is another 2 weeks dance. But if we wanted to change to a "Pensionado", we would have to refile everything again including all the nonsense stuff from your local police and banks. WHY??? Cause they are to stupid to use a copy machine. The more I think about it the more I think it was not the place to come to live. Way to may hoops to jump through and a complacency that is just above a rock. They simply don't care cause they can't get fired.  Anyone interested in a Finca with a view....CHEAP !!!! New Zealand here I come !!! report abuse
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 written by Bart Tumolo , September 26, 2009 having vacationed in Panama for 4years, and loving it my wife and I chose to retire there. I'm a retired master plumber from NJ and try to even get the proper materials in the Azuero, is next to impossible, most of the materials that would be used in the US are nlot even known there! Plumbing is the most important aspects of the builing trades and yet there everyone "knows how to do it" and that is a bold faced lie, a can of glue and a saw does not a plumber make. We have lived in Pedasi now for 1 year the home has been completely "americanized" but it took an entire year in the US, I could have built a mansion in that much time, you can't hire anyone to work that knows anything, so if you are skilled you must do it yourself. FRUSTRATION IS THE MAIN ISSUE, PANAMIANS ARE BORN FRUSTRATORS basically for the lack of education across the board. BUT I STILL LOVE LIVING THERE AND WILL STAY.
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 written by SW , October 03, 2009 These are frightening commentary and if portents of the future, all Panama's governments' efforts to become world class will be exercises in futility. I cannot deny the truth, we have lived here for 9 years and experienced them as well. Can we focus on and publicize the rays of light that do exist here - places where the service is top notch, the Panamanian employees have risen to achieve, and the things that are working, in order to bring about the change that needs to happen, or do we accept how things are in order to maintain a lifestyle in a safe country with a decent infrastructure that is difficult to afford nearly anywhere else in this hemisphere? We have a choice in this.
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| Last Updated on Wednesday, 26 August 2009 06:54 |
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