Panamas competitiveness plunged in Martinelli era

PANAMA fell another eight positions in the Global Competitiveness Index in 2014, a drop attributed to the deterioration of the country’s institutions and corruption, says a World Economic Forum (WEF) report.

In the Martinelli years Panama plunged from 70 to 93,out of 144 countries,just one place above Pakistan.

WEF experts analyzed more than 100 indicators by interviewing entrepreneurs, taking into account some variables like the scourge of embezzlement, and ‘coimas’ (bribes) and favoritism (insider deals) in the decisions of officials , among other things.

Corruption was noted by respondent entrepreneurs as the main obstacle to doing business in the country, something that did not happen in the previous edition of the report, when the main perceived barrier was an inadequately educated workforce.

With regard to misappropriation of funds, the country fell steeply during the administration of Ricardo Martinelli to 93 of 144 countries. In  2009-2010, when Martinelli took office, Panama was ranked 70 in the world reports La Prensa.

The nation was overtaken by countries like Uruguay, Chile and Costa Rica, who occupied positions 21, 23 and 54, respectively

‘COIMAS’, FAVORITISM
Under “irregular payments and bribes”, the country also experienced a sharp decline, dropping from 67 in 2013 to 79 this year.

As for influence peddling and favoritism in decisions of officials, the index ranked the country 89th among 144 countries. Chile is the Latin American country best placed in this component (ranked 27th), followed by Uruguay (31), Bolivia (40) and Costa Rica (45). Panama was overtaken by countries such as Ethiopia, Ghana and Kenya, which stood at positions 86, 76 and 75

JUSTICE
When the “independence of the judiciary” was measured, Panama occupied 116th, place, behind Honduras and Sierra Leone, and just ahead of Myanmar and Serbia.

The report mentioned the “poor quality of the educational system” (position 83), which is unable to provide skilled manpower for robust economic growth registered in last year.

MARTINELLI SHADOW
For Guido Rodriguez, president of the Forum of Panama Journalists of Panama, the WEF report “is the logical result of the sad spectacle we attended during the past year, especially the last six months of the administration of Ricardo Martinelli in the exercise of power, when State resources were used openly to intervene in electoral politics in favor of government candidates “

According to Rodriguez, “none of the institutions provided supervision and control and ,if necessary, acted to pursue in the event of misuse of these resources,” he said.

 Carlos Gasnell, vice president of the Panama chapter of Transparency International, the results of this annual Index, “were systematically ignored by the previous government,” which only gave importance to Panama’s upturn in economic terms.

Gasnell noted that: “There are many investors who check everything before making decisions, and our ranking will be important for them.

For Ramon R. Arias, president of the Foundation for the Development of Civic Freedom, the report shows “A judiciary that has collapsed, a Public Ministry that doesn’t exist and a Comptroller directed by a person who should be in jail”

On institutional deterioration, said the problem goes far beyond choosing a candidates for attorney general and comptroller because “the problem the systems are totally failed”

Distrust in the judicial system has consequences “that maybe people do not see.” Arias said.

“Investors stop investing when the certainty of punishment for those who break the law for corruption ceases to exist, and people stop feeling safe” he said.