Boquete hug your local tree hugger, they are saving your lifestyle

In late 2012 there was a meeting held with ANAM organized by a few local people with claims on land in Volcan Baru National Park. The intent of the meeting was to have ANAM, the environmental protection agency of Panama, rezone parts of Volcan Baru National Park to allow deforestation and agricultural use of land. Fortunately for all of us, a small group of environmentalists also attended the meeting and made enough impact that ANAM stopped and decided to listen to reasons this should not happen.

Volcan Baru before much of the clear cutting

Volcan Baru, look at the treeless patches

For those not familiar with Volcan Baru, walk outside and look West, it’s that big mountain with the antennas and clouds on top. If you look at the slopes you will see that some farms have been established within the park. You will see the clear cut brown areas where trees were removed. Now you can yawn and say who cares, that’s good capitalism, take the unused land and make it productive. You would be wrong on many levels and two effect all people living in this area.

Volcan Baru is the upper watershed for almost a half a million people. I know that because today I attended a meeting with ANAM and some of those environmentalists at the Chamber of Commerce in David. A biology professor from UNACHI in David has done extensive watershed research on Baru.  He stated that if the logging does not stop now, the water will stop within five years. That simple, the trees hold the mountainside and hold the water from seasonal rains. Eliminate the trees and you eliminate the roots that hold the soil and the entire ecosystem that holds and gradually releases the water we all need to live. Clear cuts and farms do not act the same way as forest ecosystems.

The Mayor of Boquete was at the meeting and it was decided that since the watershed effects more than just Boquete District that the mayors of all of the other effected districts also need to be involved to stop the destruction. There is a chance we can save our valley.

This simples analysis below is from a similar crisis in Jamaica

 

1.2(a) Causes of Watershed Degradation

The environmental factors contributing to watershed degradation in Jamaica have been intensified by the following types of human activity:

  • Unsuitable hillside agricultural practices such as over cultivation of steep slopes, indiscriminate slashing and burning, and cultivating without soil conservation or engineering works;
  • Deforestation due to illegal removal of trees for fuelwood and charcoal production, yam sticks and lumber;
  • Illegal settlements on hillside lands;
  • Improper construction and lack of maintenance of roads;
  • Forest fires caused by individuals;
  • Unapproved quarrying and sand mining.

 

1.2(b) Effects of Watershed Degradation

While the impact of human activities on watershed are many and varied, some of the main ones may be summarized below:

  • Reduced tree and vegetative cover;
  • Reduced water availability and quality;
  • Reduced productivity of land, increased siltation of rivers and reservoirs due to soil erosion;
  • Increased marine and coastal contamination and degradation adversely affecting the tourism industry;
  • Increased flooding resulting in loss to human life, property, roads and agricultural crops;
  • Loss of habitat for important flora and fauna.

National Environmental Planning agency

And you thought a shaking from a small temblor was significant, consider an unsupported mountain side, soaked by seasonal rains, without trees followed by a few seconds of the earth shaking. Watch parts of the mountainside slide down into your house like some people in Valle Escondido did a couple of years ago.

valle-escondido11-500x375

If ANAM is allowed to make the changes we will all suffer economically as a few people pocket some short term gains.

Volcan Baru National Park was created by   DECRETO No. 40 (de 24 de junio de 1976) . You can download the PDF of the Decree here. LINK

Article 2 says,

Homeowners with surrounding land titles Baru Volcano located more than in 1800 (1,800) meters high and included within the limits described will not be affected in their rights by the establishment of the National Park, however, shall adopt the provisions on land use arising Forest Service National Directorate of Renewable Natural Resources, aimed at protecting soil, water regime, wildlife and flora of the area being able to prohibit any activity detrimental to them.

That means those who had title to land cannot do things destructive to the water, soil, wildlife and flora. That might be interpreted to mean they cannot clear cut land to plant onions. It was also pointed out that ROP claims have even fewer rights within the park and since 1976 no ROP land could be titled within a national park.

The law is already in place to prevent development which is why they want it relaxed even as it is ignored by developers and law enforcement alike.

As Boquete’s economy shifts from agriculture to tourism and residential tourism for it’s economy, saving the park takes on a second significance, income for more than a few farmers.

baru

Tourists are more valuable to Boquete than a few more onions. Our watershed is more important than either onions or tourists. As we notice on days where there is no water we need it to live.

There are other meetings on this coming and community support is important. I spoke at this meeting, I spoke about the water issues echoing the biologist from UNACHI, I spoke about the lack of enforcement of the current laws and the price of deforestation. Come to the next meeting and let ANAM know you want to look up and see trees on Volcan Baru and be able to drink the mountain fresh water we have come to enjoy here. I will post on Boquete Ning when I know about the next meeting.


Primary Day today for the PRD

If you noticed lots of trucks and cars shuttling people to schools today, a Sunday it was not for classes it was a get out the vote campaign within Panama’s largest political party, the PRD.

PRD Primary

 

Barring divine intervention we will hear that the PRD candidate for President of the Republic of Panama for 2014 elections will be Juan Carlos Navarro.

Juan Carlos Navarro ” received his A. B. from Dartmouth College (1983) and a Master of Public Policy from Harvard University(1985). He is one of the founders and former head of the National Association for the Conservation of Nature (ANCON), Panama’s leading non-profit environmental NGO, in 1985 and established it as the top independent environmental group in Panama and one of the most important in Latin America.”

“He joined the PRD in April 1998 and was elected to the nine-member National Executive Committee, the PRD’s top governing organism, in August 2002. Mayor Navarro was awarded the International Award for Excellence in 2001 by the prestigious Botanical Research Institute of Texas (BRIT), in recognition of his global environmental leadership. Navarro is fluent in Spanish, French and English.”

Wiki Pedia

Personally I have given up hope for incorruptible politicians but maybe if elected he will provide a more balanced approach to the environmental destruction created by the current administration. Time will tell.

 

 


Hugo Chavez has passed on to places unknown

Now we will need to wait and see the ripple effect. Many are probably relieved, others, in particular the poor of Venzuela saddened. But Mr. Chavez had influence far beyond his borders. Bolivia, Nicaragua, Cuba and Ecuador were all at least partially subsidized by oil from Venezuela.

The law there suggests an election must be held within thirty days. Even if his chosen successor, the current Vice President prevails that does not mean policies and priorities will stay the same. This unfolding drama will effect us in Panama. Many Venezuelan immigrants have invested huge sums in Panama, will they stay? What will happen in those countries that rely on low cost oil from Venezuela? This will effect much more than Venezuela.


Financial Pacific, still another fallen star in 2012

I have heard that residents in Boquete Panama has been hurt by the failure of the investment firm Financial Pacific.

Apparently in an audit by the Superintendency of Securities the firm was discovered to be missing seven million dollars. Panama Guide

It might be of interest to know that the President of the Republic has been busy using his office to deny that he had any involvement with the failed company.

The National Chamber of Commerce has issued this statement in asking for an investigation into the failure of the firm.

“This case undermines the international image of our country, since its effects are counterproductive in the attraction of investments and has a bearing on the value of shares that are quoted on the stock exchange, which ends up creating insecurity for current and future investors in Panama,” the chamber said. “We join the pronouncements made by the Superintendency of Banks of Panama, the Panama Stock Market and the Panama Chamber of Capital Markets for due transparency and a quick, complete investigation that clarifies what happened with Financial Pacific.”

La Prensa

The newspaper La Prensa, no friend of the President, has published a lengthy article tying President Martinelli with Financial Pacific and the Petaquilla Gold mining operation in Panama. Petaquilla is a publicly held Canadian company.

La Prensa claims to have documents from the fraud investigation process in Financial Pacific, linking Martinelli with this brokerage.

“The investigation was performed from 22 to 29 November 2012, and she, Pellegrini (A former employee of Financial Pacific currently in custody), said that managers of Financial Pacific, West Clare and Ivan Valdes, said publicly that an account called High Spirit is “Mr. Ricardo Martinelli.”

“There is an account called High Spirit, which Mr. Ivan Valdes and West Clare have publicly stated that Mr. Ricardo Martinelli had the opportunity to manipulate the stock market value of shares of Petaquilla. In this way, they could make money with inside information he received President Martinelli on Petaquilla’s performance. ”

Martinelli accused La Prensa of “manipulating information”, and try to involve him in a “small problem”.”

La Prensa

According to the same article in La Prensa the “Officials of the British Columbia Securities Commission, the Canadian regulator which is subject Petaquilla Minerals Ltd. – contacted yesterday by The Canadian Press on publications in Panama, preferring for now “no comment on the issue.” In this city, the Embassy of Canada decided not to comment, stating that the ambassador, Sylvia Cesaratto, is on holiday in your country.”

There is much more background on the Newsroom Panama site.

and more on the Panama Guide.

In 2012 we have seen the collapse of Pronto Cash, the seizure of COACECSS Cooperative and this issue with Financial Pacific. I for one would not consider putting any significant sum of money into any entity in Panama.


Panama perceived as more corrupt in 2012 than 2011

Transparency International has published it 2012 report on perceptions of corruption in government. Perceptions are about all we have to work with when governmental corruption is the topic. Governments never admit to corruption nor do those who bribe officials; unless of course they are caught with their hands in the cookie jar.

In 2011 the report placed the United States at position twenty two and Panama at seventy three. In 2012 the perceptions have changed, the US has moved up the ladder, perceived as less corrupt at nineteen. Panama despite a great publicity effort by the current government has magically tumbled to eighty three in one year, along with El Salvador, Peru, Burkina Faso (where ever that is) and Jamaica.

People perceive Panama as more corrupt now than last year. The least corrupt counties in Latin America appear to be Uruguay and Chile, tied at number twenty. The most corrupt in Latin America, Venezuela at one hundred sixty five and Paraguay close behind at one hundred fifty.

In the past Panama was known for what I call “equal opportunity” corruption, anyone could afford to make a petty bribe and often did. This perception has changed in 2012 and one big reason was imported from Italy.

“ROME, April 24 (UPI) — Panama’s security minister denied the country’s government was involved in corrupt contracts with an associate of ex-Italian Prime Minister Silvio Berlusconi.

The Berlusconi associate, Valter Lavitola, returned to Italy last week after living more than six months in South America as a fugitive from Italian authorities, Italy’s ANSA news agency reported.”

Read more at UPI

This scandal is continuing to unfold in Italy, number seventy two on the 2012 index.

In November 2012 “In Italy, the website www.la7, it unveiled the audio of an intercepted telephone conversation between former Prime Minister Silvio Berlusconi and the former President of the Italian company Impregilo, Massimo Ponzellini, who is being investigated for corruption, tax fraud and money laundering, which involves the Panamanian authorities.

In the call, made in April 2011, Berlusconi tells Ponzellini he “must reach an agreement with Panama regarding the hospitals, or the President (Ricardo Martinelli) will issue a statement in order to block the work of Impregilo on the expansion of the Panama Canal, producing a grave failure and crisis.” Impregilo is part of the consortium Grupo Unidos Por El Canal, SA, which is executing the work to expand the waterway.”

Panama-Guide

It appears the perception of corruption in Panama is now beyond equal opportunity corruption and escalated to big business and big government in the international arena.


A COACECSS Update

I wrote about the Credit Union COACECSS in the past to inform people that the government agency that regulates Cooperatives intervened in COACECSS due to irregularities.

The people who were selling expats on investments in COACECSS at the Tuesday Market discounted the event as a “Administrative Intervention”.

“To that end, you can be assured that these are some of the facts regarding Credit Union funds:

This is an “Administrative Intervention” and as such by definition, in no way involved the immediate financial health or solvency of the Credit Union
· The credit union will continue to honor all interest payments in both certificates of deposit and Money Market savings accounts,
· The credit union has the solvency to pay all principal amounts of certificates of deposit when matured and if requested.

Clients funds are not in jeopardy. Hopefully, whatever needs correcting will be done soon, and things will return to normal. For this reason, a decision has been made by this group of Americans, to supply information on this situation on an “as asked” basis, rather than make a company statement.

All is well. And all was well, but needed a few minor adjustments. You are promised to be kept informed, and please keep in touch with us.”

This comment from Jim is below this post, LINK

On Nov 6 2012 the auditors posted this on the COACECSS Web site.

LINK to complete document above.

I do not have the language ability to do a precise translation, if someone can it would be appreciated.  I believe the essence is they will make every effort to pay their account holders.  They were trying to keep the whole deal quiet to avoid panic. They are trying to do what they can to keep open the Cooperative and avoid bankruptcy.

Two of the measures they are taking:

1.  To stop account closings for a while.
2.  When they pay the Christmas accounts, they will deduct any passed due financial responsability the person has.

There are a few loans that haven’t been paid as of yet so they are trying to collect the money, somehow.

In other words the Cooperative is trying to avoid bankruptcy, the issues are real and fiscal.

Today there is an article in La Prensa, LINK in English. It appears that the people being accused of mismanagement are trying to regain control.

This quote is from Capital Newspaper. Full text in Spanish is at this link.

“Referring to the case of  Coacecss operated since June 28, the official (of Ipacoop the auditing agency) explained that one of the problems was that COACESS paid high interest funds with fixed term rates to 9%, while placing these funds in the banks earning interest at 2%.

The directors of this cooperative have also questioned the fact that the intervener has purchased bonds totaling more than $ 20 million, an operation “unusual” that this organization had never done.

Roses Vallarino said that what is sought is that liquid funds were not placed in an interest earning loans of up to 4%, which remain liquid assets because they can sell at the time that these resources are required.
Another issue that remains is related to savings of Christmas, which could amount to about $ 8 million and although it has been announced that will be delivered on the first of December, the director of IPACOOP said “we are working on that evaluation, because It’s useless to meet commitments today, not in January can not be met with other commitments. ”
He stressed that the cooperative has suffered much and detected the payment of over $ 1,000,000 in commissions to companies related funds and identified many foreign funds, without the measures taken to meet the client.” (Emphasis added by me for those who invested through Offshore CD Network, they earned a lot of money)

If you are one of the people who have money invested in COACECSS you should make further inquiries to protect your “safe” investment. You were told no credit union in Panama has ever failed, according to the auditors at Ipacoop, they are doing what they can to maintain that record.


Politics again, this time Panamanian Politics

Every five years Panama holds an election and elects an entire government.  A new President, who is not allowed to succeed himself, all the Deputies of the legislature, Mayors and Representantes, the District Junta like a city council. Just as in the rest of the world Politics is a full-time profession in Panama and here membership in political parties can be very important.

If you visited downtown Boquete yesterday you might have seen the large crowd in the park. People were registering to the PRD, the Democratic Revolutionary Party.

The PRD was formed by General Omar Torrijos as a move toward Democracy in Panama that was required by the Panama Canal treaty with the US. It was the party of the military dictators.  Wikipedia

In the years since the US invasion in 1989 the PRD candidate for President has been elected after each opposition candidate has proven not to satisfy the electorate. Each new government campaigns on the promise of cleaning up corruption and usually they make some noise for about a year and then go back to business as usual. Therefore people vote for another option in each cycle hoping for real and promised changes.

There is a high probability that the next President of Panama will be the candidate of the PRD. This year the PRD had a housecleaning and the old guard was replaced with new leadership headed by Juan Carlos Navarro. Sr. Navarro who might be the next President of Panama has  a Master’s Degree from Harvard and unlike the current President is an environmentalist. He was Mayor of Panama City from 2004-2009. I suspect second to being President being Mayor of the Capital City is the most challenging political job in Panama. Wikipedia

Yesterday the PRD was recruiting members throughout the country and they signed up almost 50,000 new members making them the largest political party in Panama, again. Newsroom Panama

So what motivates people to change party affiliations in Panama. Short term a hot meal, long-term job prospects.

Beneath this tent was the free food, in the gazebo were the registrars. I stopped over and a friend asked me if I was going to make the leap into politics. I explained to her and a party official that I am not a citizen so could not sign up into anything political.

It is an interesting reality, you need to show your Cedula to do anything official in Panama, it is your ID and it states whether you are a National or Extranjero. Maybe a lesson for a bigger country up north is that a National ID could solve a lot of problems around elections.

Food is a short-term enticement, the big enchilada in Panama are political patronage jobs. Those who are in the winning party, who work hard and visibly for successful candidates often get rewarded with jobs. Those from the previous government find that in Panama having a government job is only secure for five years at a time.

It is going to a fun year political year in Panama, the current ruling party has not even hinted a candidate to succeed President Martinelli. There were rumors that he wanted to change the constitution and run again, he has vigorously denied that desire. More recent rumors are that he has sold Super 99 to Wal-Mart and is using the proceeds to clone himself and have either his clone or his wife run.

We will learn the answers in about one year.

 

 


A man for all reasons

This will be my last commentary on US politics until after the US presidential election. My comments from a mountain in Boquete Panama will not influence one vote anyplace but the venting regulates my blood pressure and prevents ulcers.

I have come to the conclusion that all of those who regale me about the Marxist, Socialist, Communist, Arab Muslim from Kenya must be right and I am going mad. It seems each time I listen to Mitt Romney I become more convinced he is both the right and the left, the alpha and omega of all things.

Regardless of the event, his mercurial personality and ever evolving stand on all things makes him a master negotiator. As Newt Gingrich said “you cannot debate a liar’. A slanderous statement, that states the black and blue that Newt felt after a primary debate. Newt once considered Mitt a liar, now of course Mitt is the golden boy, no longer the Mr. Mercury. Politics does make strange bedfellows, not literally of course. I would hate to imagine those two curled up under the sheets, god would weep at the immorality.

Now we have the tragedy of Hurricane Sandy, which was sent by god to devastate only blue states. Before the Hurricane hit Mr. Mercury said “It is immoral to borrow money for Disaster relief. It makes no sense at all. FEMA should be privatized.” Please imagine disaster relief brought to you by Halliburton with security by Blackwater, managed by Dick Cheney. I might not be a big fan of the Federal government but at least their goal is to help not to profit. The National Guard consists of your neighbors not mercenaries.

The role of government is to help it’s citizens, not multinational companies. Mr. Mercury has shifted stances on Gun Control, yes when Governor of Mass, no, now when he needs the Tea Party vote. He has shifted positions on abortion, something a President cannot change regardless of opinion. I suspect he has shifted positions dogs traveling on the roof of his car, now they should be allowed to drive.

It is good to have a flexible politician. He has a tax plan but he will not tell us what it is, it’s just better. I like better too, we need more that is better, less that is worse.

Mr. Mercury supports other politicians that believe rape is god’s will and that women should be grateful for the children it brings. However if those babies are born into poverty they have no need for food or education, they just need to make to eighteen and enlist as cannon fodder in the military. Thanks Mitt, that’s a hell of a deal.

Mr. Mercury wants to move healthcare back to where only those employed by large corporations and the government can afford it or qualify. Yet if elected Mitt will have some of the best medical care in the world paid for by the taxpayers.

Mitt would reduce taxes again despite the fact the big reduction by GW Bush helped plunge the government into debt and did not benefit the economy. Mitt, however will be unaffected because most of his assets are offshore and we only know about his convoluted taxes for two years. The tax benefits Mr Mercury uses to hide his wealth are only available to the very wealthy, maybe they should be eliminated; I doubt that will happen.

Mr Mercury opposed the Auto bailout, it started under GW Bush, continued under Obama and Mitt and his friends made millions from the bailout. Those Communist loans did save a ton of jobs that he now says are going to China. GM and Chrysler both deny the truth because Mitt probably does plan to export Jeep production to China for his personal gain. Bain Capital certain has done it before and is doing it now, but Mitt is only a retiree of Bain.

America needs Mitt, America needs more money for defending the Middle East, money borrowed from China. America needs to lower taxes, again to encourage more trickle down economics. It was the George Bush the first who called that plan of the late great actor Ronald Reagan “Voodoo Economics”. How history has been rewritten to say it did any good, only George Orwell could say.

We must not forget the military and veterans, unlike Mitt. Obama who was too young for Vietnam, Mitt was ripe and ready. Being a god fearing patriot Mitt weathered Vietnam in the hazardous streets of Paris France assisting his church not his country. I was not a big fan of the war in Vietnam either but I tried to enlist and was rejected as defective and when my lottery number came up I went to my physical and failed yet again. Mitt never had the opportunity to have my experience of rejection or the experience of others in combat. Still Mitt is the champion of militarists and the Multinationals that benefit from wars. I missed the news about his children enlisting in the military. Even the royalty of Great Britain do their military service, not Mittens nor his flesh and blood.

If America elects Mr. Mercury, Americans will get what they deserve, a fast path to economic oblivion and we in Panama will get a lot of new quality expats who flee the fast track to a Plutocratic, Fascist America. What a tragedy that people cannot see beyond the media empire of Rupert Murdock and think for themselves based on the facts.

Please remember Mercury is toxic to humans, but not to worry Mitt will eliminate the EPA also.


The President of Panama is eating Sushi while Colon burns

Current politics in Panama is enough to distract those of us living here from the impending Presidential election in the US. The President of the Republic of Panama is visiting Japan and Vietnam to promote trade while the people of Colon Panama are in rebellion over a new law allowing the government to sell the Colon Free Trade Zone.

The law, law 72 jammed through the legislature in the normal record time allows the government to sell land considered by many to be property of the people of Panama. This is the confusion of Capitalism and Socialism in a country that has a bit of each. The government needs money, the rent in the free zone pays about $33,000,000 a year to the government and they want to sell the zone for fast cash.

The legislation may or may not be good for Panama. It is probably not so good for the people because it will provide a short term benefit for a long term loss. It is likely cause long term price increases for all things imported through the second largest free trade zone in the world because any buyer will want a good return on investment.

In what is becoming the cycle of this government, the government is now preparing to repeal law 72. La Prensa

It appears that this government acts in haste without considering the consequences and when the people take to the streets then the government backs down. This is not a good way to govern.

After signing the law the President headed out to Asia. On his last trip to Europe he surprised Panama by suggesting Panama adopt a third currency, the Euro. Not to be outdone in Asia, the Republic of Panama has taken a public stand on an issue few in Panama even understand. The sovereignty of an archipelago known as Senkakyu. This is a dispute between China and Japan and now the international powerhouse of Panama has taken a public stand with Japan.

The Chinese who have ever so much more economic influence in Panama were not amused. This is a link to an article in La Estrella for more details. La Estrella

Being in Panama is a daily amusement, I love it, but sometimes it can be a bit overwhelming.


Of Balboas, Dollars, Euros and Juan

As many who follow local News are aware, the President of Repúblic of Panama, Ricardo Martinelli made a surprise announcement while in Germany this week. To the surprise of his hosts and residents of Panama he suggested that Panama will be adopting the Euro as a third currency.

Currently we have two legal currencies, the Balboa, as of this time only in coins, including the new and not so loved, one balboa coin, usually called the Martinelli. The one Balboa coin which is minted in Canada has an image of Balboa. Balboa was the Conquistador who is credited with making all the indigenous of this portion of the world second class citizens in their own country; mostly because they did not understand what a country was supposed to be.

In addition the Balboa, Panama uses the US dollar, which historically kept Panama from the outrageous inflation it is suffering now. This inflation is a function of an international surplus of dollars, except in my pocket, and a decreasing demand; except by me.

So now in some misguided effort to expand good will from Panama to Europe, which has a surplus of Euros as well as Dollars, the President has offered to help Europe to export some of their devaluing paper to join the devaluing dollars and the weighty metallic Balboa in Panama.

At no time did anyone suggest even the most rudimentary problem, the Balboa is worth a Dollar, in fact except to Citibank they are the same thing. Citibank which is in Panama, the US and Europe, charges it’s credit card users 4% to convert dollars to dollars, if the new dollars are used in Panama.

Imagine the delight at Citibank in Panama if the Euro is tossed into the mix. The value of dollars and Euros are not tied together and fluctuate daily. Now, when a taxi driver tries to gouge you, at least you know you can pay in Balboas or Dollars, equal value. After this transition, you might negotiate thinking dollars, and need to pay in Euros, oops. Never underestimate the wisdom of a taxi driver. Nor should you ever underestimate the ability of a bank to earn a commission in a currency exchange.

But not to worry, The President will soon be visiting China where the up and coming currency is the yuan, pronounced by me as the Juan. That is a clear enticement to a major trading partner. The Panamanian banking industry would love the arbitrage of being the world broker of Balboas to Dollars to Euros to Yuans. Yuans would become the wager because they are under valued and can be used to teach Mandarin in the public schools of Panama. Every family, with or without a Juan, will want a pile of Yuans.