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Panama Welcome to Panama, a country where the concept of exotic
begins in its name, which means "abundance of fish and butterflies"
mi amigos with uzis
 July 21,
2007 · Fueled by a rash of new construction, Panama's economy is
thriving and attracting notice all over the world, but some say that the
country's economic surge is straining its infrastructure.
The tiny Central American country is now one of the fastest-growing
economies in the region, experiencing a growth rate of 8 percent last
year. That rate is expected to be even higher this year, making it the
Latin American powerhouse.
The economic boom comes amid efforts by the Panamanian government to
market itself as a financial haven in an area of instability, drawing
investors from across the region and the world.
A Construction Frenzy
In a cavernous sweltering hall on the former Howard U.S. Air Force Base,
all of Panama's ministers and President Martin Torrijos gathered to sign
an agreement to construct what will become one of the largest
development projects in the country's history.
The project, worth up to $10 billion, will include a media city, an
industrial area and a residential town on the shores of the Panama
Canal, the site of the former base. For a country of only 3 million, its
scale – the size of central London — is massive.
British company London & Regional will manage the project, and Ian
Livingstone, the company's managing director, says the expansion of the
Panama Canal, new refinery and ports projects, and a possible free-trade
agreement with the U.S., all make Panama attractive.
"Panama is going through a big economic boom at the moment. It is a
stable oasis for investment in a part of the world that isn't always
quite as stable as Panama. We see huge opportunities," Livingstone says.
American money is also pouring in, and the wealthy of Bolivia, Venezuela
and Ecuador, nervous about the direction of their own governments, are
also investing.
More than anything else, construction is driving the boom, and the
Panama skyline is showing the result.
"Right now, according to the government numbers, we've got 175 projects
under construction, 120 more projects that have already been approved by
the government," says Ivan Carlucci, president of the Panamanian Real
Estate and Developers Association. "So right now, we are talking about …
close to 400 projects that are in construction, to be constructed or
waiting for approval."
Many of the buildings are high-rises whose skeletons are making Panama
City look like an out-of-water coral reef. More than 11,000 apartments
are coming online this year, and already they have all been sold.
Growing Pains
While positive in many respects, the economic boom is causing its own
set of difficulties. At the main thoroughfare between the old and new
sections of Panama City — where all the high-rise buildings are being
constructed — traffic is bumper to bumper, and Panamanians have been
noticing more and more that the new construction is placing a strain on
the country.
"The infrastructure is not appropriate to sustain this growth and is not
adequate to sustain all the building that is going on," says Carlos
Guevara Man, a Panamanian analyst. "The sewer system, the road system,
the public transportation system, the electric grid — the public
infrastructure is not adequate."
Man says speculators are playing a huge role in the market, and some
landmark projects have already been pulled because they simply weren't
viable.
Though it's marketing itself as a first-world destination, Panama isn't
there yet, Man says.
Panama is plagued by a high level of corruption and is run by a white
oligarchy that is profiting from the economic boom. Its judicial system
is in serious need of reform.
Countries in Latin America have a very poor track record of making sure
that everyone benefits from economic growth, and Panama, with one of the
most unequal distributions of wealth in the region, is no exception.
Despite the money pouring in, so far that disparity has not changed.
"Most of the benefits of this growth are being appropriated by the
people at the top … Most people at the bottom are not seeing these
benefits. What they are seeing is an incredible rise in the cost of
living ... They are not seeing increased salaries, they are not seeing
increased opportunities ... and I think that creates a lot of
resentment," Man says.
 Panama,
officially the Republic of Panama (Spanish: República de Panamá; IPA: [re'puβlika
ðe pana'ma]), is the southernmost country of Central America. Situated
on an isthmus, Panama is a transcontinental nation which connects North
and South America. It borders Costa Rica to the west, Colombia to the
east, the Caribbean Sea to the north and the Pacific Ocean to the south.
It is an international business center and is also a transit country. In
Central America, its the second most industrialized country, behind El
Salvador. Panama was settled by the Spanish in the 16th century. In
1821, under the leadership of the then-colonel in command, José de
Fábrega, it broke with the Spanish Crown and joined Simón Bolívar's
Republic of Gran Colombia. When this dissolved in 1830, Panama remained
part of Colombia.
On 3 November 1903, Panama declared its independence from Colombia. The
US Battleship Nashville prevented the Colombian military from sailing to
Panama. An invasion through the dense Panamanian jungle was impossible.
The President of the Municipal Council, Demetrio H. Brid, highest
authority at the time, became its de facto President, appointing a
Provisional Government on 4 November to run the affairs of the new
republic. The United States, as the first country to recognize the new
Republic of Panama, sent troops to protect its economic interests. The
1904 Constituent Assembly elected Dr. Manuel Amador Guerrero, a
prominent member of the Conservative political party, as the first
constitutional President of the Republic of Panama.
In December 1903, Mr. Phillipe Bunau Varilla –a French citizen who was
not authorized to sign any treaties on behalf of Panama without the
review of the Panamanians– signed unilaterally the Hay-Bunau Varilla
Treaty which granted rights to the United States to build and administer
indefinitely the Panama Canal, which was opened in 1914. This treaty
became a contentious diplomatic issue between the two countries,
reaching a boiling point on Martyr's Day (9 January 1964). The issues
were resolved with the signing of the Torrijos-Carter Treaties in 1977.
The original intent of the founding fathers was to bring peace and
harmony between the two major political parties (Conservatives and
Liberals). The Panamanian government went through periods of political
instability and corruption, however, and at various times in its
history, the mandate of an elected president terminated prematurely. In
1968, a coup toppled the government of the recently elected President
Arnulfo Arias Madrid.
panama city 
While never holding the position of President himself, General Omar
Torrijos eventually became the de facto leader of Panama. As a military
dictator, he was the leading power in the governing military junta and
later became an autocratic strong man. Torrijos maintained his position
of power until his death in an apparent airplane accident in 1981.
After Torrijos's death, several military strong men followed him as
Panama's leader. Commander Florencio Flores Aguilar followed Torrijos.
Colonel Rubén Darío Paredes followed Aguilar. Eventually, by 1983, power
was concentrated in the hands of General Manuel Antonio Noriega.
Noriega came up through the ranks after serving in Chiriqui province and
in the town of Puerto Armuelles for a time. He was a former head of
Panama's secret police and was an ex-informant of the CIA. But Noriega's
implication in drug trafficking by the United States resulted in
difficult relations by the end of the 1980s.
United
States invasion of Panama
Main article: United States invasion of Panama
On 20 December 1989, twenty-seven thousand US personnel [1] invaded
Panama in order to remove Noriega. A few hours before the invasion, in a
ceremony that took place inside a U.S. military base in the former
Panama Canal Zone, Guillermo Endara (winner of the May 1989 elections)
was sworn in as the new President of Panama. The invasion occurred ten
years before the Panama Canal administration was to be turned over to
Panamanian control, according to the timetable set up by the Torrijos-Carter
Treaties. After the invasion, Noriega sought asylum in the Vatican
diplomatic mission represented by Monsignor Jose S. Laboa. To induce
Noriega's surrender, US forces played loud music outside the embassy
which reportedly included the song "Panama," by the 1980s rock group,
Van Halen. (WSJ) After a few days, the embassy staff talked loudly for
his benefit about the possibility that the mob surrounding them might
break through and lynch Noriega. He surrendered to the American military
shortly after, and was taken to Florida to be formally extradited and
charged by U.S. federal authorities. He is eligible for parole in
September of 2007, but the Panamanians want him for trial on charges of
murder.
Under the Torrijos-Carter Treaties, the United States returned all
canal-related lands to Panama on 31 December 1999, but reserves the
right to military intervention in the interest of its national security.
Panama also gained control of canal-related buildings and infrastructure
as well as full administration of the canal.
The people of Panama have already approved the widening of the canal
which, after completion, will allow for post-Panamax vessels to travel
through it, increasing the number of ships that currently use the canal.
Portal:Panama
Panama Portal
Panama's politics takes place in a framework of a presidential
representative democratic republic, whereby the President of Panama is
both head of state and head of government, and of a pluriform
multi-party system. Executive power is exercised by the government.
Legislative power is vested in both the government and the National
Assembly. The judiciary is independent of the executive and the
legislature. Great story on Panama City's buzzling nightlife!
TRAVELS WITH LONELY PLANET History and nightlife in Panama City
Long overshadowed by its forested neighbor to the north, Panama has
finally earned its place among the world's hot new destinations. The
wonder is that it has taken so long to be discovered. Like Costa Rica,
Panama is packed with wildlife, teeming jungles and breathtaking
highlands; it's one of Latin America's safest destinations; the currency
is the U.S. dollar; and it's close--it takes less time to fly between
New York and Panama than it does to fly across the United States.
But most importantly, Panama has Panama City, a steamy salsa-infused
capital with a beautiful historic district reminiscent of Old Havana,
dozens of restaurants, nightspots and jazz clubs, and a rich mesh of
cultures all adding to the lively street scene beneath the tropical sun.
Casco Viejo is the city's colonial gem, complete with picturesque
plazas, cobblestone streets and old mansions near the edge of the bay.
Dilapidated for years, this neighborhood was first rediscovered by the
city's artists, who came seeking cheap rents amid old-world ambience.
Since then, others have followed suit, giving the crumbling homes a
much-needed facelift. One of Casco Viejo's most famous arrivistes is the
singer-actor-activist Ruben Blades. He is only slightly overshadowed by
President Martin Torrijos, who holds court in the elegant Palacio de las
Garzas, named after the slender white herons (garzas) gliding about
nearby.
A wander through Casco Viejo will lead visitors past splendid churches,
tiny art galleries, charming cafes and several museums, including the
excellent Interoceanic Canal Museum. Exhibits here offer a wealth of
information on the first railroad across Panama (built to carry
prospectors from the eastern United States to the gold fields of
California), the early efforts of the French to build a canal (leaving
one French company bankrupt and thousands of workers dead) and the later
success of American efforts (though it, too, came at a heavy loss in
life). The museum is housed in a lavishly restored 1870s building that
headquartered the French and later the U.S. canal commission.
Although Casco Viejo is the oldest still-inhabited part of the city,
Panama's first foundations were laid a few miles east of there in 1519
by Spanish conquistador Pedro Arias de Avila. Founded as the first
European settlement on the Pacific, Panama soon became a major link in
Spain's golden pipeline. Gold plundered from Peru passed through Panama
on its way back to Europe. This brought the city great wealth as well as
unwanted attention from English pirates.
Although Sir Francis Drake left his calling card in Panama, Henry Morgan
was the one who dealt the city its most lethal blow. In 1671, he sailed
up the Chagres River, continued overland and, in a surprise attack,
routed the city in a few hours. He and his band stripped the gold from
the storehouses, then left the town in flames. Three years later, Panama
City was refounded in present-day Casco Viejo. Although only fragments
of the original settlement remain, visitors can wander through the
ruins, photographing the still-standing tower overlooking the sea.
Nearby, the Panama Viejo museum gives a sense of what things might have
looked like in 1671.
As night falls on the city, it's time to return to the present and take
advantage of Panama's relentless vida nocturna (nightlife). Casco Viejo
is a good place to start the evening, in one of its excellent
restaurants, low-key bars or jazz spots (one located in a former
dungeon). Later in the night, Isla Flamenco, with its many open-air
nightspots and underground clubs, becomes the destination of choice. One
of four islands created from dirt dredged during the construction of the
Panama Canal, Isla Flamenco has some enviable cocktail-sipping spots on
charming patios beside the water. In the wee hours of the morning, Plaza
Pacifica keeps the party going, with several late-night clubs and DJs
spinning a broad mix of tunes.
Just before dawn, it's back to Casco Viejo once again, to catch the
early morning fish market and the wild spectacle of sunrise over the
city. Because of Panama's twisting shape along an east-west axis, from
the city it appears that the sun rises from the Pacific and sets in the
Atlantic: one of many curious wonders, just like Panama City itself.
Where to stay: Located in the best part of Casco Viejo, the beautifully
restored 19th Century mansion of Casa Mar Alta has lavish guest rooms
and a scenic rooftop terrace (011-507-211-2277; www.casamaralta.com;
doubles from $155). The all-suites DeVille Hotel has a boutique feel,
with spacious antique-laden rooms. It's located in El Cangrejo, a
neighborhood packed with restaurants and bars (011-507-206-3100;
www.devillehotel.com.pa; suites from $155).
Where to eat: Stylish Limoncillo serves a creative blend of eclectic
dishes, prepared by one of Panama's top chefs. If you like the ambience,
take it home. Most of the artwork adorning the walls is for sale
(011-507-263-5350; Calle 47 near Calle Uruguay; entrees run $14-$20).
For one of the world's more unique dining experiences, take a cab 20
minutes west of the city to the Miraflores Locks. Here you can dine al
fresco on tasty Panamanian fare while watching ships pass through the
canal just below. Call to reserve a choice table and to find out the
best viewing times (Miraflores Restaurant; 011-507-232-3120; entrees
around $9-$15).
Attributes of a Good Offshore Jurisdiction
Panama has a number of unique attributes that make this a great asset
protection jurisdiction for corporations, foundations, banking and stock
brokerage accounts. Some call Panama the Switzerland of Latin America
but this is not fair, Panama is far better than Switzerland and any
other jurisdiction. Read why Panama excels:
* Offshore derived Income is not taxed and does not need to be reported.
You can have a Panama Corporation, and/or Foundation that banks in
Panama and has an office in Panama and yet will not pay any Panama taxes
if all the income is derived from offshore. Right here is a big reason
for choosing Panama.
* Bearer Share Corporations are allowed in Panama. Most jurisdictions
have eliminated bearer share corporations. They are referred to as an
S.A. Corporation having this designation after the corporate name. This
means the ownership of the Corporation is not recorded anywhere just the
directors (which can be employee professional directors provided by our
law firm). These corporations can be used to own or control assets such
as bank accounts, stock brokerage accounts, real estate, boats, planes,
vehicles, businesses, precious collectibles like artwork, jewelry,
stamps, coins, etc. The owner has the stock certificates of the company
which can be transferred privately as often as needed with no reportage
of the new owners. No one need know who owns the corporate shares except
the original owner and new owner. When you think about it ownership
could be transferred 10 times in a day. When you send an international
bank wire using the S.A. Corporation no one monitoring the international
wires as some countries do knows who the actual owners of the
corporation are that are receiving the funds. If ownership of a
corporation is publicly recorded rest assured it is in numerous
databases and can be accessed in seconds to determine who is actually
receiving money sent to a corporation.
* Panama uses the US Dollar as its currency. No currency conversion
costs. No currency devaluation problems or issues like most of the
little tax haven countries have. In Panama the ATM machines spit out US
$20 bills. Even USA coins are used in Panama.
* Panama is stable. It is a neutral country. Panama controls the Panama
Canal and does not have a standing army. Most of these small countries
never ever use their armies to repel an invading army from another
country. These little banana republic countries use their armies to
control the people, suspend elections, hold rigged elections, keep
dictators in power under the guise of democracy etc.
Panama is in a treaty with the USA regarding the Panama Canal which
Panama has sole control over. If the canal is threatened by a foreign
power as in an invasion, the USA has the right to come in and protect
the canal and the canal zone which is the area surrounding the canal (25
sq. miles only, not the entire country) - think aircraft carrier groups,
marine expeditionary forces, air force fighter planes, navy seals, etc.
The treaty does not allow the USA to take over Panama per se just the
few square miles around the canal, not the banking district. So who is
crazy enough to try and attack Panama, a UN certified neutral country,
no one. US air force jets could be in Panama within two hours, an
aircraft carrier group would probably be there in 24 hours. So we can
forget about Panama being invaded by another foreign power, it would be
essentially the same thing as attacking the USA directly. The same would
apply if a dictator tried to seize control over Panama. The USA would
see this as a potential threat to the Panama Canal and take military
action, fast. The USA has no authority in Panama. Their Federal Agents
have no authority or power. USA courts have no authority in Panama.
Panama is a free country that has a treaty with the USA concerning
protection of the Panama Canal. Interestingly enough China is involved
heavily in commercial operations in the canal ports and also has a
vested interest in seeing Panama and the Canal operate freely and
smoothly. If anything happened to the Panama Canal shipping worldwide
would be interrupted which means there are a lot of nations that want to
see Panama operate as a free democracy maintaining it’s neutral status.
Panama is at very low risk for revolution or military attack.
Panama holds free elections as a democracy, really and truly. Panama
cares about their people. Medical care is affordable, food is cheap,
housing affordable with special projects for the working folks to own
their homes, homeless people are absent, college is made affordable and
many young people attend. Panama has two medical schools, two dental
schools, two law schools etc. In Panama 15%-20% of the work force are
employed by the 135 banks domiciled there. Since Panama values these
jobs do not expect to see any changes in banking laws, same for their
corporate laws. Panama has over 400,000 corporations domiciled there.
The only information sharing going on concerns bona fide criminal cases
on file in a court as a criminal prosecution, serious criminal cases of
money laundering and narcotics trafficking, terrorism, and child
pornography. Panama has little interest in pursuing fiscal crimes.
Income tax violations in Panama are civil offenses only. Panama also
serves as a maritime registry for ocean going vessels. Panama is
anything but a banana republic. You can feel safe and secure in Panama,
come for a visit if you like.
Panama Banks are Stable
* Panama Banks are stable and well established with substantial assets.
Panama Savings and Loans have $10,000 insurance on the individual
accounts. Panama Banks have the best privacy laws in the world; the BEST
got it, the VERY BEST. You have the greatest chance of protecting your
money from your potential or actual financial enemies in Panama. If you
go to actually visit some of the other frequently used asset protection
countries you see unpaved streets, poor impoverished people, lack of
computerization in government offices, ancient telephone systems, poor
health care, a government that is as corrupt as can be and you may find
out your "Bank" is located on an unpaved road, in a second story walk-up
office building over a grocery store. You do not want to bank in these
places. People have lost billions banking in these island and banana
republics. In Panama your bank may very well have a 40 story modern hi
rise office building with their name on it.
* In Panama as one of our clients you are going to be banking with a
bank that has a real banking license. This means that the bank can
conduct transactions with citizens of Panama as well as citizens and
companies located outside of Panama. The bank will have branch offices
with tellers, drive through windows, ATM machines etc. The bank has to
post $10,000,000 cash with the government as one of their license
requirements. In many offshore jurisdictions there are “Offshore Banking
Licenses.” These licenses allow the bank to only open accounts for
people who are not citizens of the country. Sort of makes you feel
scared or it should. These offshore banks can't do business with
residents of the country they are located in! Additionally the deposits
required for an Offshore Banking license in some of these jurisdictions
is typically $100,000 to $1,000,000 compared to the $10,000,000 Panama
requires. Panama banks have their own ACH system which allows for online
transfers from one Panama bank to another at a cost of about $1.00 per
transaction. Currently thirty Panama banks are in the system. These
transfers do not go over the international wire systems. Panama banks
allow for the deposit of checks drawn in US dollars, clearing takes two
to three weeks. Most offshore banks will not take checks any more or if
they do, they put long holds on them like ninety days.
* Panama was built and maintained by the Americans up until 2000. Panama
is loaded with skyscrapers that are 30 to 50 stories high. You can drink
the water, there is American type electrical systems, you can use
American appliances in Panama, good paved roads, really excellent
internet perhaps better than what you have in your country, good phones,
and it is only 2.5 hours from Miami, Florida. Panama is a remarkably
crime free country - New York City has more violent crime in one day
than Panama has in a year.
* English is always spoken by people working in Panama Banks and the
Nicer Hotels, Fine Restaurants, Law Firms and by the Doctors.
* You DO NOT have to physically go to Panama to get a corporation,
foundation or bank account in Panama WITH US. Our business connections
are unique in this regard. Panama is the undefeated world heavyweight
champion when it comes to privacy and asset protection.
* Tax Treaties - Panama is in none of them.
* Mutual Legal Assistance Treaty (MLAT). Most websites do not even want
you to know about this
Essentially Panama will cooperate in a multi-national case involving
narcotics and money laundering (these crimes need to be tied to
narcotics). If you are not a narcotics dealer and are not a money
launderer you should not be concerned by this. Panama will also
cooperate in cases of terrorism and child pornography. The MLAT requires
that there first needs to be a criminal prosecution case on file in the
criminal courts of the requesting government (which means no fishing
expeditions). Then through diplomatic channels involving the embassies,
requests are made for information, then reviewed by Panama officials and
a decision on compliance is made or requests for more information are
made so a determination can be arrived at. These cases can take months
and even years for completion. At times the country where the bank is
located has been known to once alerted to the problem, conduct their own
investigation first and this usually requires them to seize the relevant
records and documents which can stall the process for a long time even
years since their justice systems typically moves quite slow and statues
of limitation can run out. Please don't construe this to mean Panama
does this routinely, it is just something that does occur from time to
time around the world. The MLAT has no application to civil cases such
as divorce, civil judgments, bankruptcy, business litigation, any sort
of civil litigation, civil tax matters etc. Taxation matters of any sort
are not covered by this as far as Panama is concerned. Income tax
evasion is a civil (non- criminal) offense in Panama as are all tax
matters. Even Switzerland cooperates on income tax cases if the return
is filed falsely like all income was not declared, things were omitted
or so the complaining government says. Belize has tax treaties as do
most of the so called "tax havens". Panama has no extradition treaties.
There is no better jurisdiction than Panama today!
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