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New Administration’s Goals Embrace Change While Shoring Up Key Industries
Does the ascending administration mark a sea change in the politics of the Central American nation,
or merely a mild corrective to a working system? The new Minister of Economy and Finance discusses the philosophy and priorities that will guide policy over the next five years.
Following the victory of Juan Carlos Varela in Panama’s 2014 presidential election, many investors are anxious to know what this shift in the political wind will mean for the country’s economic climate. A sit-down with Dulcidio De La Guardia, Panama’s Minister of Economy and Finance, reveals the new administration’s plan to sustain the country’s rapid growth, while expanding infrastructure and investing in the Panamanian people.
TBreaking new ground ...
he promise to expand services and build infrastructure to benefit ordinary Panamanian citizens
was an important factor in the election. Minister De La Guardia is optimistic about the government’s ability to help its citizens “benefit from the huge economic growth that Panama has experienced over the last few years and basically improve the life of the people.” He sees four principal areas of development as key to reaching this goal: water and sanitation, mass transit, education, and the ongoing development of the logistics hub.
identity, has made Panama a global logistics hub, and the canal expansion is redefining trade patterns around the world. Minister De La Guardia compares the current canal to a highway built for small cars and local traffic; he expects the post-reconstruction canal to be more like a superhighway, accommodating much larger vehicles at a higher rate. The canal expansion should be up and running in early 2016.
Panama has served as the regional financial center for more than three decades, and there is fresh concern that the strategies of the 1970s are no longer optimal for today’s global business environment. Many of the members of the new administration, including the president himself, came from the private sector and understand the importance of maintaining the country’s business-friendly attitudes. As public servants, they now find themselves in a unique position to promote the mission of Panama’s financial sector, Toward those ends, the Ministry will continue to support free-trade policies while encouraging the development of value-added logistics and the growth of legal and future use services. One of the minister’s goals is to turn over an improved economy at the end of his term that allows his successors to “have a healthy government that can actually continue to invest for the benefit of the country in coming years.”
MSound investments
inister De La Guardia is confident that his administration’s attention
to the country’s people and infrastructure will continue to draw investors from around the world. Logistics and the comparatively new industry of Panamanian tourism are “the key areas where Panama has a competitive advantage” at this time, but he sees potential for broader growth in the country’s future as the administration works toward ambitious yet achievable goals.
ECONOMY
Providing clean water and sanitation to
the entire population is a top priority,
according to De La Guardia, and will
be reflected in the government’s new
budget. The people will gain better
access to jobs and resources through
highway improvement and a substantial
expansion of Panama City’s Metro, which
has already seen great success in its
first line. In education, the minister
points to Singapore as the model for
an invigorated system that stresses
vocational learning and English-language proficiency.
Dulcidio De La Guardia
Minister
Ministry of Economy and Finance
The rise of a new politics
in 2014 is a catalyst for change across Panama. An administration insider answers questions about business, investment, and the goals of the new government.
C... And revitalizing the old
onnectivity has historically been the key to Panama’s growth, and it will continue to play a central role in the country’s strategy for the future, says De La Guardia. The Panama
Canal, always a focal point of the country’s economy and national
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