Weekend celebration and then a thank you

I really dislike going to Panama City, but if you live in Panama the center of the world is in the Capital and at times you must go. Usually I need to go to visit a government Ministry since everything in this country is centralized the offices in the Provinces can rarely do much of anything. This time was different, a better reason and over a weekend.

Via Espana Panama City

Via Espana Panama City

This trip was with Mayra and both of her daughters, Karina and Johana to formally celebrate the engagement of Johana.

Karina, Johana, Mayra

Karina, Johana, Mayra

After a seven hour bus trip we received a room at the Milan Hotel early, and slept to recover from sleeping on the 11PM semi express bus. Then  we did a little shopping, I forgot it was Saturday some of the markets, the kosher markets, were closed. I forgot it was the first day of Passover and Sabbath too, oh well, those little grey cells are overused.We did our spice shopping at Foodie.

Then later went to the engagement dinner at Lung Fung, which I think has the worst Chinese Food in Panama. After the formal meeting of the families, Mayra, Karina and I went out for a drink to relax. It was a formal meeting because Johana is marrying into a Indian family and the Hindu traditions are different than any we know.

Sunday morning I wanted to compensate for Lung Fung, so I took the group to the Golden Unicorn for great Dim Sum. In my opinion, Lung Fung and Golden Unicorn, both in Panama City are the opposite extremes in Chinese cuisine.

Then the trip home, long but uneventful until I hit the rain driving from David to Boquete. Allow me to suggest avoiding that ride at night if you can. Between the detours and lack of paint on the highway it is really difficult to know where you are on the road. It is easy to slide into a ditch.

I avoided the ditches, at least until I started up Jaramillo, up the muddy unpaved road that climbs to my house. My Rexton hit a slippery spot I slid backwards into a drainage channel. What do you do at 8:30PM on a rural road in Panama when you are stuck in a ditch. This is the magical difference in Panama, no AAA, I could have called for a tow truck but they might never have found me or ended up in the same ditch.

Instead I called my neighbor. As I waited for Carlin, Kent and Phyllis, other neighbors drove up and offered to help. Eventually using Carlin’s winch and his jeep tied to Kent’s pickup I was extricated. Then Carlin tried backing down the hill and ended up in the same ditch. We extracted him and with Carlin leading in the jeep and Kent walking by my side I backed down to a point I could turn the car and return to an intersection and use a paved road up the hill.

There is a message in this monologue. Panama is a country of diversity, a melting pot. Panama has attracted some great people along with the losers. I know my neighbors, we rely on each other, this is a lot different than my life in Arizona. I knew I could call any neighbor when I was stuck, I never hesitated, they also know they can call me if they need help, when that has happened I never hesitated either. This is a very different than my past life, I prefer this life. Thank you to Kent, Phyllis and Carlin, all of you are reasons I love living here in the boonies.

 


Seeds of change, they take time and fertilizer to grow

When I arrived in Panama in 2006 I said that it was like taking a time machine back to the 1950′s in the US. In my six plus years here I can say that some rural areas like Bongo, Bugaba at back someplace in the beginning of the 20th century, others like Panama City and the Pacific Beach area have jumped into the 21st century.

When you see such remarkable change in such a short time only the vanguard lives the transition. Panama’s upper and much of it’s middle (professional) class are riding the wave of change. The poor of Panama are helping to create the change, but many cannot afford to participate. Many of the rural poor have not even noticed a change, unless they saw it on television.

This change is not unique to Panama. When I travel to the US with Panamanians they are stunned by poverty in the US. They thought everyone in the US lived well. I think they must have seen too much CSI Miami and not enough reality. Poverty exists everyplace, in some places worse than others.

In Western Europe, Canada and to a lesser extent to US the government provides a safety net. Although there are indeed people living on the streets and starving in the US, many that would join them are in shelters, apartments and receive food stamps. Panama has little of that type of safety net, what Panama has is a extended nuclear family.

The culture I have observed here is a startling contrast the the culture I saw in my microcosm in the US. Here families take care of each other. You can find three or even four generations in one house, that makes that into a home. Parents have live in baby sitters, grandparents have assistance. Often this make for overcrowded housing but it allows families to function as units despite low incomes.It also creates burdens of caring for the sick, the elderly and the children. Often this very solution exacerbates the generational continuation of poverty.

La Prensa recently ran an article about the now slowly decreasing poverty rates in Panama. Still a large portion of people are considered very poor. I have been searching for a workable definition of poverty, the UN definition below is the best I can find.

“Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and cloth a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living on marginal or fragile environments, without access to clean water or sanitation”

(UN Statement, June 1998 – signed by the heads of all UN agencies)

Nogble Bugle Comarca

On the Nogble Bugle Comarca

Under this definition all the world has poor people, Panama included. The world has always had poor people and barring some amazing change in economics and politics, the world will always have poor people.

Some blame poverty on laziness, others on cruel capitalists, others on lack of education, still others on lack of opportunity.  I am sure it is a combination of all of the above, with some poor falling into each group and others I did not identify. The question is how can you reduce the level of poverty, I doubt you can ever eliminate it.

This time of the year people find themselves in a generous mood, they give gifts and donations, some to feel good, others for business reasons, still others for tax deductions. The real solution to reducing poverty requires the type of year long activities I am seeing here in Boquete people helping people. People educating people, people taking some of the burden off families so those who can gain education or work have the ability to do so.

I want to take this opportunity to thank those in Boquete, expats and non expats, who give of themselves all year. Those who do want they can to break the cycle of poverty one person at a time. There are organizations like Bid4Boquete, our version of the United Way, Buenos Vecinos de Boquete, who help feed people who have no food, the Handicap Foundation of Boquete /Fundación Pro Integración, Capítulo de  Boquete who work with those with physical disabilities and their families, Finca Dos Jefes that gives part of it’s earnings to  a education project on the Comarca  and many more. There are individuals and churches who give all year long, they give food, they give clothes, they give education and most of all they give hope.

School Uniforms donated by  Boquete Bible Fellowship  to Las Lomas School in David

School Uniforms donated by Boquete Bible Fellowship to Las Lomas School in David

 

Lunch, much of which is now grown by students on the comarca with assistance from Dos Jefes, Carlos Ortega, a teacher and others on the Comarca.

Lunch, much of which is now grown by students on the comarca with assistance from Dos Jefes.

For all of those who believe this is the time of the year to give, please give now to the organizations that give all year. If you believe either through your religious or political beliefs that it is not the role of government, but the role of people to help others less fortunate this is your opportunity to make your point.


Open letter to new immigrants, you are welcome here but …

I want to be the first to say to the huddled masses who want to leave the United States after the Obama victory that you are welcome to join us in Boquete Panama. It might be helpful to understand some differences between the United States and Panama. Since I have no interest in selling you anything, you might find my perspective a contrast to the many people hustling Panama online. This post is intentionally negative, but it is also intentionally a contrast.

Panama is not part of the United States. I feel compelled to say that because I have read so many comments and questions on various Yahoo groups from people who are looking to immigrate here with families and find work in Panama. You will need a passport to enter Panama. Although English is widely spoken among educated Panamanians, the official language here is Spanish and you will need to speak Spanish to get a job or function efficiently almost anyplace outside of immigrant enclaves like Boquete.

As an American passport holder you can enter Panama as a tourist for six months and recycle that entry in one day by visiting Costa Rica. That policy can be changed and has been as little as 30 days in the past for tourists. Tourists cannot legally work in Panama. If you work as a tourist and are caught you will be fined and possibly deported. Tourists and retirees cannot work here without a work permit from the government and tourists and people with retirement visas cannot legally get work permits.

The laws are different here,  the government can create or change laws in days and they are in force as soon as recorded. Recent events have shown, when a law is very unpopular the people attempt to shut the country down until the law is repealed, they have succeeded several times recently.

Immigrants often learn the legal system is of no value to them, there are many corrupt lawyers and forget a malpractice suit, a lawyer will not sue another lawyer. Even if you can find one to file a lawsuit, he with the most wealth or best political connections will likely prevail in the lawsuit.

Many people buy property here. Too often people buy Right of Possession (ROP) property, only to discover others have claims on the land. The buyers might discover they own nothing but a document after a legal battle. You need a lawyer to make an intelligent purchase and need to hope the lawyer is honest. Just because the lawyer speaks English does not make them honest. You can buy titled property safely, most of the time but need to check on liens, tax liabilities etc before buying. There are no escrow services here and although I have heard of people selling title insurance I have never actually seen anyone benefit from Panama title insurance.

We have many English-speaking carpetbaggers here. Some of these people fled their criminal past in other countries and came to Panama because the laws on White Collar crimes like fraud are weak at best. You can buy a house from the honest Gringo and find out he never owned it. You will have little recourse and may have lost your investment.

If you are from the USA you will find your money is good here. The currency of Panama is the Balboa, but the Balboa only exists as coins, the paper currency here is the US dollar. That is convenient,  but if you believe the dollar is doomed, so is the Balboa. Unless the government decides to really upset the economy and change the currency; which they could do.

Domestic and farm labor is available and appears to be very inexpensive. However the labor laws in Panama are 99% skewed to the worker. An employee has Social Security of which you must pay a percentage. Employees are legally entitled to a month vacation each year and you need to pay decimo, a 13th month of wages each year. In essence an employee works eleven months and is paid for thirteen. You also need to pay severance after ninety days of employment, terminating an employee can be expensive . If you hire someone for $2 an hour, the real cost is closer to $2.80 without factoring in severance.

If you are fleeing socialism, it is here already. In Panama the government owns the canal, a couple of banks, half of Cable & Wireless, a telephone company, a part of the electric utility, the Colon Free Trade Zone, part of the coast to coast oil pipeline and probably a lot more. Social Security provides not only a meager retirement income but medical care also. Your medicare, medicaid and with some exceptions your health insurance will not work here. If you have Tricare you can get reimbursed, but most US health insurance does not work here in Panama.

Despite any rumors to the contrary we have taxes in Panama. There is a 7% VAT on most purchases other than food, medicine and agricultural goods. There are import duties on almost everything and transporting goods from overseas is expensive. There are property taxes and although there are some exonerations, you need to be sure you actually have them or your tax bills will grow with penalties and interest. The liability might first be discovered when you try to sell your property. If you do work, there are also income taxes and Social Security taxes.

You can start a business and as long as you do not work in your own business unless you get a work permit. You can profit from your enterprise as a shareholder but if government inspectors find you working expect a hefty fine.

With all of the negative said, if you are careful and do not check your brains at the airport Panama is wonderful. Panama is a great place to live. I have been here more than six years and love it but it does require a reset of expectations and not everyone is willing to make the necessary changes. Too many people come and leave within two years, some with less than they had when they arrived, that is my reason for the splash of ice water.  This was a counterbalance to the sales pitches that are on most internet sites about Panama. Consider the changes you need to make to adjust to a new country, visit, rent and see if it for you before you sell your assets and buy your family a one way ticket.

 


Republics and Politics

Election year in the United States and a lead up to next years Panamanian are making for an interesting comparison and an opportunity for some education.

Both Panama and the United States are Republics, as with many words, I and perhaps others use the word Republic without thinking what it really means.

“A republic is a form of government in which the country is considered a “public matter” (Latinres publica), not the private concern or property of the rulers, and where offices of states are subsequently directly or indirectly elected or appointed rather than inherited. In modern times, a common simplified definition of a republic is a government where the head of state is not a monarch.[1][2]” Wikipdia

Republics can be very different, the common claim is that in a Republic government is responsive to the people and that the people who govern are elected by the people.

“The purpose of government is to enable the people of a nation to live in safety and happiness. Government exists for the interests of the governed, not for the governors.”― Thomas Jefferson

In my opinion, jaded by life,  whomever is in power, wherever they are in power, has one common goal, to stay in power and profit from that power. I realize that is cynical and anti Jeffersonian, but it is my observation of government from reading history and life.

Four years ago Panama elected a businessman, Ricardo Martinelli as President of the Republic. When he was elected President Martinelli was the darling of the US media. Here was a US educated, University of Arkansas, a businessman with a very successful chain of business in Panama. Pundits said he could be a example of how a business owner leader could change a country. He has indeed created a great deal of change, some good, some bad.  However instead of privatizing government,  has has transformed the national government of Panama into a business, his business.

In about four years he has neutralized most of his political opposition and is running the country with little effective opposition. As a businessman he has recognized that he needed to improve Panamas credit rating so he could borrow money. To do that he had to prove the ability to repay. loans; he raised taxes.

Much of the borrowed money is being poured into infrastructure, public works. Panama is doing some amazing things, new public buses replacing independents, a new metro rail system, a urban sewer system in the capital, new roads everyplace and more.  Unemployment, especially for those who have education is very low, 4.5% total by one estimate. This investment in infrastructure in Panama has the short term effect of providing jobs, so many jobs that Panama has had to import skilled labor. the speculation is that it will also have the long term impact of allowing for faster commercial growth nationally with the improved infrastructure.

Another area President Martinelli sees worth investment is education. The government has been forcing a new regime into the rather awful public education system. Teachers are having to work more, go to more seminars, learn how to use computers and have more classroom hours. Not everyone is happy about the changes because they are putting pressure on underpaid teachers, inadequate facilities and even parents who are having to adjust to change.

I point these few things out as I think about the current US election where a very successful businessman Mitt Romney is making his play for the presidency. Mr. Romney is a bit different than Mr. Martinelli. Mr. Romney does not think the government should do much of anything for it’s citizens, he seems to think the private sector can do it all.

I am not sure what type of government I prefer. I want government that leaves me alone but I also want  government that is there in the event I need assistance. Perhaps I would rewrite Jefferson’s quote to say this:

“The purpose of government is to enable the people of a nation to live in safety and happiness. Government exists for the interests of the governed, not for the governors. Government is to serve the needs of the people, the people are not here to serve the needs of government.” 

Over the next few days I want to compare and contrast the politics of Panama and the United States through my eyes. These posts will be my opinion,s based on my world view. I welcome comments and debate as long it is based on facts. I will pick some specific areas of contrast, State Religion, Social Security, Social Safety net, security and where ever the discussion goes.

 


Why I chose and live in Boquete Panama

This post is personal and will not apply to everyone, in fact I doubt 100% of it will apply to anyone except me. Like the previous post on budget, these reasons I stay in Boquete will not be the reasons anyone else might choose to live here.

“The longest journey begins with the first step”

I needed a change in life. I was wearing down, too much work, too much stress and a bad feeling about the future.  However the primary motivator for my wife and I to leave Arizona was physical and emotional fatigue, a need for a change and an opportunity. When my youngest daughter completed High School and chose not to live at home for University, we decided this was the opportunity.

In exploring options for a change my wife and I looked at Europe and Latin America. We explored Costa Rica and then Panama.  I spoke very little Spanish, she none. Neither of us wanted heat or beaches, we needed cool and wet after almost forty years of Arizona. We discovered the expat mountain community of Boquete Panama and it was perfect for me, she reluctantly agreed.

After a year and a half the charm of Boquete wore off for my wife, it grew for me. This point is important to people considering a move to any new place for retirement. Retirement is difficult, instead of a couple sharing a few hours a day suddenly they are sharing all day and all night. Toss in a new environment and it can either forge a new stronger tie or drive a wedge. Many people arrive here as couples and some leave uncoupled, others arrive single and find new loves.

What drew me was a change.  Life in Boquete was less expensive than our life in Arizona, with less stress. The climate of Boquete is perfect for me, I love the clouds and year round temperate climate; no air-conditioning, no heating.  Here in Boquete I discovered fishing as a recreation, it is not my favorite thing but a couple of times a year I find myself on a boat with a group of friends angling for tuna. i discovered tropical beaches and learned to relax, something new for me.

As a city boy looking for a change in life, I bought a small farm. I grow my own vegetables, raise chickens, have citrus trees and coffee. Food was one of the motivators for the move. The food chain in the US is broken, the food production by a handful of companies in the US has destroyed the family farm and the quality of food. Yes, prices on food in the US can be lower than what we see in Panama, but the food itself is also lower quality. That is changing here, in October 2012 the US Panama free trade agreement will open the floodgates to US government subsidized exported foods. I suspect that as in Mexico and other countries many small local farmers will lose their battle for survival. Still, at this moment the quality of food is better in Panama. Because I have my own farm my tomatoes will still ripen on the vine, my chiles will still be harvested and roasted by me, I will still pick my own bananas and my eggs and chickens will not get antibiotics or hormones.

As all new immigrants to any place learn, immigration is not easy. You can learn a new language or be isolated from the mainstream culture. You need to deal with a different form of government and entirely different and ineffective legal system. You will need a lawyer for property purchases, immigration and who knows what else. I have been learning Spanish for six years, a little classroom time and a lot of immersion. Slowly I am getting both the language and the culture. It has been said that learning a second language as an adult is difficult, for me it is. However it has also been said that learning a second language as an adult helps prevent dementia, maybe, but even if that is not true it does stimulate the little grey cells, I like it.

When I arrived the healthcare system was not something of much concern, I was still twenty years old, in my head. Later as I used the healthcare system both for my wife, for my daughter when she visited and for myself when my heart decided to be testy, I learned a lot. I and my family received better healthcare in Panama than we received in the US. Doctors here are not yet caught up into the insurance company assembly line process. I have the cell phone number of my doctor.  I feel better about medicine here, with some exceptions, than in the US. Medicine is also more affordable if you are forced to go out of pocket you can for most things. I do pay for a high end international health insurance policy, but I would pay almost as much for far less coverage in Arizona at todays inflated health insurance rates.

I like the people in Panama. Many of the expats I have met here are people, not sheep, and they are from all around the globe. They took a risk leaving their native countries, those who stay are open to new ideas and new cultures. I try to avoid the carpet baggers who are also here being parasites on the new comers, in time people learn who they are and learn to avoid them. I like the Panamanians I know, I have developed some excellent friends who were born here, live here and work here, they also help keep me here.

Then there is the opportunity to grow personally. City boy turned farmer, businessman turned writer and at times a social gadfly. These are all positive changes for me. Many of my peers came here to retire and created new adventures either in business or for the good of the community. Just like any community in any country there are vast needs in Boquete Panama and both expats and locals have banded together to tackle some of those needs. We are a community.

The summary for me is that I moved from the city to the country, I could have done that in Arizona.I found a perfect climate in the mountains a couple of hours from tropical beaches and fishing, not possible in many places. I can swim in both the Pacific and the Caribbean in one day, if I wanted to. I forced myself to learn and grow intellectually both with a new language and a new culture. I learned patience, any Type A personality coming to Panama needs to learn patience or die trying. I enjoy the diversity of geography, language, culture and opportunity. Those are the things that attract me to staying here. Equal are things going on in the US that repel me from returning, but that is another story.

 


The Cost of Living in Boquete Panama

So many people ask what is the cost of living in Boquete Panama that I decided to provide a working budget. This budget is going to be based upon two different scenarios, first someone who buys a home and second someone who rents. Each will have some variables because clearly not everyone lives the same lifestyle.

I want to make a few points going in to this discussion. First and most important that this entire post is nonsense because each person will have variations on either theme. The purpose of the exercise is to demonstrate a low and high end budget, but neither is real, because once again we all choose to live differently.

For the Home owner I am going to use myself as an example. I do not live in a subdivision so I have no Homeowners fees. I pay for water and electricity directly without markup. The expenses are for one person but in reality would not change much for one or three. except for health insurance.

Home Paid in Cash, no mortgage

Property Taxes  $200  (there might be property taxes in Panama, I have them)
Electricity            $ 40
Gas                        $  5
Water                    $  3
Cell phone           $ 25
Internet               $ 60   ( I do not have cable or Satellite TV) Add $40 minimum
Home Insurance $ 20
Food                     $300
Diesel  (car)         $200
Car insurance      $ 65 ( I have Maximum coverage)
Clothing               $100
Car                          $400   I paid cash but if I needed to take a loan this would be a guess
Health Insurance   $1000  (This is a US 100% Medical and Dental Policy good anyplace in the world.  Local options like                    MS Chiriqui would cost less and cover less.)
Entertainment         $300

Total:   $2718

Note: My biggest monthly expense is health insurance.

A rental solution using most of the same numbers but eliminating a car and those things normally included in rent.

Rent :  Range from $500 to $2000 You can spend $2000 or more if you wish. I will use $1000 for the total below.

Electricity            $ 40
Gas                      $  5
Water                  $  3
Internet               $ 60
cell phone           $ 25
Food                     $300
Clothing               $100
Health Insurance   Self Insured
Entertainment         $300
Transportation        $100 Assuming local taxi and bus expenses

Total:   $1933          Assuming no car and that rental has satellite or cable TV

Health insurance is the loaded gun for retirees in Panama. You have options, you can self insure for almost anything.  Self insurance will work out to be less expensive unless you have a catastrophic emergency and want to use a private hospital. Public hospitals are very inexpensive but unless you have a local person to be your advocate you might die before you see a doctor.

If you are a US Medicare recipient, Medicare will not help here, but you can return to US for non urgent care situations. There is a rumor floating about that Medicare will cover emergencies, according the website Medicare.gov, there are only three conditions that would be covered, none of which will apply for a resident in Panama. A tourist might be able to make a case for #3.

1. You’re in the U.S. when you have a medical emergency, and the foreign hospital is closer than the nearest U.S. hospital that can treat your illness or injury.

2. You’re traveling through Canada without unreasonable delay by the most direct route between Alaska and another state when a medical emergency occurs, and the Canadian hospital is closer than the nearest U.S. hospital that can treat your illness or injury. Medicare determines what qualifies as “without unreasonable delay” on a case-by-case basis.

3. You live in the U.S. and the foreign hospital is closer to your home than the nearest U.S. hospital that can treat your medical condition, regardless of whether it’s an emergency. Remember, in these situations, Medicare will pay only for the Medicare-covered services you get in a foreign hospital.

http://www.medicare.gov/Publications/Pubs/pdf/11037.pdf

If you have no pre-exisitng conditions you can buy far less expensive Panama only or even International health insurance policies. If you have pre-exisitng conditions you will find qualification for those policies difficult or impossible.

In my personal opinion life in Panama is not that much less expensive than life in the US. I will submit my utility bills are much lower here than they were in Arizona, but that is more a function of not needing heat nor air-conditioning, less a function of lower costs for electricity. Water and gas are an exception because water is far less expensive and propane can be government subsidized.

I do not live here because it is less expensive, I too bought into the myth, but I think you can buy a house for less in many places in the US now. I left before the bubble burst.

I live here because I like living here far more than I enjoyed life before I moved here. This is a personal decision based on my life experience and although my opinion is shared by many, it is not shared by all.

 


Wither the fourth estate

“The Fourth Estate (or fourth estate) is a societal or political force or institution whose influence is not consistently or officially recognized. “Fourth Estate” most commonly refers to the news media; especially print journalism or “The Press”.” Wikipedia

During the Noriega years in Panama the press was bullied and harassed. La Prensa was one media that stood up to Noriega. In fact La Prensa was created in 1981 to oppose the rule of Noriega. Wikipedia .

In all the world the media is both the influencer and investigator, often a free press is the only loud voice against repressive governments and like Chavez in Venezuela. In Venezuela, Chavez slowly silenced the press, we have that same danger in Panama. There has been a series of events with a large local contractor that makes me wonder who actually runs this country.

“ARRAIJAN, Panama West. – The vehicular traffic on Highway Arraiján-La Chorrera was interrupted this Wednesday, August 1, for workers Transcaribe Trading Company, in charge of extension work this way.

The workers’ action was in defense of the company, owned by brothers David and Daniel Ochy, for the publications in the newspaper La Prensa in recent days concerning the benefits and infrastructure projects that have been tendered by the current government.

The four-lane road was closed with heavy equipment and dump trucks.

According to workers, these publications not only affect the company but also the workers, saying the protest action was clearly of the workers.

After 30 minutes to keep the road closed the workers agreed to open it, but did not rule out new blocks in the coming days.”

La Prensa

On August 2, the same company blocked the road to the Centenario bridge. La Prensa

On August 3 2012 trucks owned by Transcaribe Trading blockaded the offices of La Prensa in Panama City by blocking all access and egress with their trucks. The owner of the company David Ochy said it was done because La Prensa printed false statements about him and his company. What is alarming is that when the police arrived they did nothing, when the vice President arrived along with others from the press no trucks moved, only after the President of the Republic arrived did the trucks disperse.

The accusations printed claimed that the Transcaribe Trading  was given over $400,000 million dollars in contracts by the government, including contracts where there was no work to be done.

I have no idea whether the claims of La Prensa are true or false. I do know that the actions of the demonstrators were wrong, the lack of action by the police was wrong and in this politically charged atmosphere we in Panama and around the world we the people need a free press not a intimidated press.

If La Prensa printed false information Panama has rather draconian libel laws, the arena for the argument is in the courts, not the streets. The government not only turned a blind eye to harassment of the press but several recent incidents have made government agents to perpetrators.

El Siglo a local newspaper, reported on 10 August 2012, Rafaela Sanchez, a RPC news reporter and his cameraman were attacked, yesterday, by five units the Institutional Protection Service, while preparing to make a coverage Chilibre Water Treatment Plant.

The lack of uniform law enforcement is a sign of a country that is not yet matured enough to enter the developed world. Lack of a free press is the sign of a government afraid to have an informed populous.


A day in Volcan and some interesting but taxing information

When I first arrived in Boquete I did a lot of exploration in Chiriqui, later when I was writing for Live and Invest Overseas, I did a lot of travelling throughout Panama. Recently I have logged miles only between  Bugaba, David and Boquete. Yesterday I went to Volcan, just on the other side of Vulcan Baru.

I made the trip to Volcan to do a presentation at their monthly community meeting. I went because I wanted to see, compare, contrast and donate my time and knowledge. It seems that someone who tries to find good speakers for meetings in Boquete should be willing to speak in another community when asked. The topic was the same as I most recently presented in Boquete, Internet 101. My speaking however is not the motivation for this post.

Although I have driven through Volcan to Rio Sereno several times in the past years yesterday was the first time I stopped and looked around since July 2010. Volcan is changing, slowly.

Volcan Panama Community Meeting

Volcan Community Meeting

In Volcan they meet monthly, not weekly as in Boquete. This meeting was in the Artisans center which has shops and a restaurant integrated. The Volcan  meeting is focused on US expats.  One topic yesterday was about a new bill in front of the US House of Representatives, passed in the US Senate already as SB1813. In the US the controversy about the bill focuses on this section.

SEC. 31406. VEHICLE EVENT DATA RECORDERS.

(a) Mandatory Event Data Recorders-

(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the Secretary shall revise part 563 of title 49, Code of Federal Regulations, to require, beginning with model year 2015, that new passenger motor vehicles sold in the United States be equipped with an event data recorder that meets the requirements under that part.

In Volcan the focus was on an unrelated amendment that would empower the IRS to seize passports from US taxpayers who owe more than $50,000 in taxes. No place in the world is going to be safe for US tax evaders.

SEC. 40304. REVOCATION OR DENIAL OF PASSPORT IN CASE OF CERTAIN UNPAID TAXES.

(a) In General- Subchapter D of chapter 75 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

‘SEC. 7345. REVOCATION OR DENIAL OF PASSPORT IN CASE OF CERTAIN TAX DELINQUENCIES.

‘(a) In General- If the Secretary receives certification by the Commissioner of Internal Revenue that any individual has a seriously delinquent tax debt in an amount in excess of $50,000, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport pursuant to section 4 of the Act entitled ‘An Act to regulate the issue and validity of passports, and for other purposes’, approved July 3, 1926 (22 U.S.C. 211a et seq.), commonly known as the ‘Passport Act of 1926’.

‘(b) Seriously Delinquent Tax Debt- For purposes of this section, the term ‘seriously delinquent tax debt’ means an outstanding debt under this title for which a notice of lien has been filed in public records pursuant to section 6323 or a notice of levy has been filed pursuant to section 6331, except that such term does not include–

‘(1) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or 7122, and

‘(2) a debt with respect to which collection is suspended because a collection due process hearing under section 6330, or relief under subsection (b), (c), or (f) of section 6015, is requested or pending.

‘(c) Adjustment for Inflation- In the case of a calendar year beginning after 2012, the dollar amount in subsection (a) shall be increased by an amount equal to–

‘(1) such dollar amount, multiplied by

‘(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2011’ for ‘calendar year 1992’ in subparagraph (B) thereof.

If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next highest multiple of $1,000.’.

(b) Clerical Amendment- The table of sections for subchapter D of chapter 75 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

‘Sec. 7345. Revocation or denial of passport in case of certain tax delinquencies.’.

(c) Authority for Information Sharing-

(1) IN GENERAL- Subsection (l) of section 6103 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

‘(23) DISCLOSURE OF RETURN INFORMATION TO DEPARTMENT OF STATE FOR PURPOSES OF PASSPORT REVOCATION UNDER SECTION 7345-

‘(A) IN GENERAL- The Secretary shall, upon receiving a certification described in section 7345, disclose to the Secretary of State return information with respect to a taxpayer who has a seriously delinquent tax debt described in such section. Such return information shall be limited to–

‘(i) the taxpayer identity information with respect to such taxpayer, and

‘(ii) the amount of such seriously delinquent tax debt.

‘(B) RESTRICTION ON DISCLOSURE- Return information disclosed under subparagraph (A) may be used by officers and employees of the Department of State for the purposes of, and to the extent necessary in, carrying out the requirements of section 4 of the Act entitled ‘An Act to regulate the issue and validity of passports, and for other purposes’, approved July 3, 1926 (22 U.S.C. 211a et seq.), commonly known as the ‘Passport Act of 1926’.’.

(2) CONFORMING AMENDMENT- Paragraph (4) of section 6103(p) of such Code is amended by striking ‘or (22)’ each place it appears in subparagraph (F)(ii) and in the matter preceding subparagraph (A) and inserting ‘(22), or (23)’.

(d) Revocation Authorization- The Act entitled ‘An Act to regulate the issue and validity of passports, and for other purposes’, approved July 3, 1926 (22 U.S.C. 211a et seq.), commonly known as the ‘Passport Act of 1926’, is amended by adding at the end the following:

‘SEC. 4. AUTHORITY TO DENY OR REVOKE PASSPORT.

‘(a) Ineligibility-

‘(1) ISSUANCE- Except as provided under subsection (b), upon receiving a certification described in section 7345 of the Internal Revenue Code of 1986 from the Secretary of the Treasury, the Secretary of State may not issue a passport or passport card to any individual who has a seriously delinquent tax debt described in such section.

‘(2) REVOCATION- The Secretary of State shall revoke a passport or passport card previously issued to any individual described in subparagraph (A).

‘(b) Exceptions-

‘(1) EMERGENCY AND HUMANITARIAN SITUATIONS- Notwithstanding subsection (a), the Secretary of State may issue a passport or passport card, in emergency circumstances or for humanitarian reasons, to an individual described in subsection (a)(1).

‘(2) LIMITATION FOR RETURN TO UNITED STATES- Notwithstanding subsection (a)(2), the Secretary of State, before revocation, may–

‘(A) limit a previously issued passport or passport card only for return travel to the United States; or

‘(B) issue a limited passport or passport card that only permits return travel to the United States.’.

(e) Effective Date- The amendments made by this section shall take effect on January 1, 2013.

Source Govtrack.us

I often wonder if anyone in the US Congress reads the bills they vote on, or considers the impact. It is clear the US government wants more tools to take what they think is due to them. This IRS has often been used a tool to deal with matters the were otherwise untouchable, remember Al Capone. His jail time was not for murder, it was for tax evasion. My advise to US taxpayers, file your returns, file your FBARS, file whatever is needed and sleep better at night.

I spoke on the Internet and the final presentation in a meeting spanning two hours, was regarding smash and grab robberies that are occurring in David. There have been a string of these all focused on people leaving the HSBC bank in the El Rey Shopping center in David. The targets are people who withdrew large sums of cash, left the cash in their cars went elsewhere, return to discover a broken window and no cash. It is pretty obvious someone is observing transactions in the bank and has associates on the outside doing some very profitable smashing and grabbing.

The group was small between 20 and 30 people. People were from Volcan, La Barraqueta and Bugaba, large distances.

After the meeting I visited a few places, some familiar one new. I had lunch, a executive special for $4.50 at a place new to me, a large, multi faceted place call La Cava of Volcan, it was a good lunch and I ran into some Boquete people returning from their quarterly pilgrimage to  Costa Rica.

Then off to Berard’s back door to pick up some goodies, they are about 20% less expensive there than in the markets. Finally across the highway in Collegio San Benito to the Lands End outlet. Sadly the selection for June was too heavy on inexpensive down coats. I wanted a rain coat, they had many but all were lined with something making them too well insulated for here.

After Volcan I drifted down to Concepcion, a detour motivated by a lust for some cigars. (Note to my children: Your father is still vice ridden.) I stopped in the Caribbean Tobacco facility and bought direct from the ladies there, it took some negotiating but what started at $7 ended up at $4, so advice is never say yes on the first offer.

In all a nice day trip and nice view of beautiful Volcan, a great place to visit but I would not want to live there. Some people consider Boquete boring, I heard that again last week from an expat. Boring is a state of mind, but I am convinced that there is little community interaction in Volcan, Boquete has a critical mass and that makes for activities that can fill in for social interaction many of us need.

 


Four weekends of parties

I have been enjoying the local culture for the past four weekends of immersion. It all started when Mayra’s younger daughter asked if she and few friends could camp out on my deck for a weekend of the Orchid Fair in Boquete. We had a well behaved group of twenty somethings from David here eating drinking and having a good time. It was fun to get to see a bit of the youth culture. It is a tragic that I cannot stand the current techno music they seem to need to blare, to me it is not music but redundant noise. I was glad none of my neighbors were close enough to hear the the late night blaring.

That was followed the following weekend by a birthday party also here on Jaramillo. It was Mayra’s older daughter celebrating thirty five years, this time and in addition to her friends we had lots of family from David and Bugaba. I wondered why a clown and pinata we in the plans for a thirty five year old woman until the family descended on us.

Johana birthday pinata

Smashing Tweety for the children

I ended up cooking for this group, I resist the traditional local fare of starch and chicken. I made a huge Greek Salad and Chili con Carne for the group. No one seemed to object and I observed three generations of Escalantes dancing the night away.

Dancing till the wee hours

Mayra’s daughters seem to be a violation of the local tradition, one celebrating thirty five years, the other at twenty six, both university graduates with professional jobs, neither married , neither with children. The rest of the family seems to have born children before they reached twenty which allows for great grandchildren and Mayra’s parents watched the scores of offspring with joy. I wonder how Panama has such a low overall population; I wonder if the census counts the indigenous?

Last weekend we went to Bugaba for a wedding. It was a niece of Mayra with two children getting married, again. I have known both the bride and groom for more than two years and it was fun participating. We were “padrios”, that translates to godparents, that means I had to wear a suit, not something high on my list.

Me, in a suit

There were two distinct ceremonies, first a judge who read the law, recited the penalties for bigamy and required two witnesses to sign the documents that attested to knowing the couple and swearing they were not married to others. The couple and the Panamanian witnesses needed to sign documents of marriage at the wedding.

Olivet signing away her freedom

Olivet signing away her freedom

After the civil ceremony came the Pastor for a religious ceremony, finally we were able to sit down and relax.

We were in Bugaba and I was advised that if we were going to drive back to Boquete not to drink. It appears the police have been busy stopping people for DUI’s, they are not discriminating. Mayra’s younger daughter has recently earned a ticket, she being aware of the risk, spent the night in Bugaba; she drove home early on Sunday morning. She was stopped before seven in the morning and still blew too much alcohol and gained a first DUI ticket. Late night partying has it’s risks.

I also figured out the “honor” of being a padrino. The padrinos are involved in  preparation of the wedding and also provide a gift of substance selected by the bride and groom. We were lucky, we were asked to pay for the judge to attend the wedding, a bargin at $150, compared to the other options like a stove, a bed etc.

This past Sunday we were in Bongo Bugaba, for a wedding anniversary. Mayra’s parents celebrated their sixty fifth wedding anniversary. Once again the entire family gathered on their farm for a celebration and lunch.

There is a lot of discussion of food in Panama and I cannot speak for the country as a whole but each event we attend has basically the same cuisine. Rice, chicken and some other starches. Yesterday Mayra and I resisted in instructions to bring a rice based dish and brought a green salad, but the rest of the fare was chicken, rice and potato salad.

Like up north this type of diet is packing on the pounds and making diabetes an epidemic in Panama. Unfortunately just like anyplace else the hollow calories of starches are the cheapest food available and therefore a mainstay of the diet.

Today, Monday 30 April is a national holiday. The government decided that today is 1 May, Mayday and moved the holiday to create a long weekend. Today we get to relax before all things go back to normal tomorrow.

 


NPR on Panama’s economic growth

“From my perspective, the major challenge Panama has is the economic and social polarization,” says Roberto Eisenmann, founder of the Panama City daily newspaper La Prensa.

“We still have two countries — a First World country that’s going gangbusters, and a half an hour away, a Fourth World country with too many poor people,” Eisenmann says.

read the entire piece here