Social Democratic Costa Rica envious over freemarket Panama

Panamanian news and gossip site Dealante has a great collection of opinion columns from Costa Rican newspapers about Panama.

The 30 second background for people unfamiliar with the two neighboring countries in Central America. Costa Rica has been hailed for years as the example of a well functioning Social Democratic welfare state in the tropics. Panama on the other hand has a reputation of being poor and run by dictators and the CIA.

None of these are particularly true. Panama has had it’s fair share of dictators and in recent years it’s fair share of government officials, however except during a brief period of Noriega’s rule Panama has pretty much since it’s inception 500 years ago been a more or less freemarket trading nation. The corruptos don’t dare touch it as it finances their corruptness.

Costa Rica on the other hand has had a long series of Social Democratic rulers, who have used good old fashioned social spending and protectionism to protect it. Now Costa Rica is falling apart by it’s seems and Panamanians are enjoying a better and better quality of life.

Now follows the opinion pieces:

Envy of the good

The mental retardation we are experiencing in Costa Rica is impressive

Fernando E. Naranjo V.
Ex minister of foreign relations (Costa Rica)

The Legislative Assembly of Panama ratified the free trade agreement with the United States, 2 weeks after it had been signed by the representatives of both governments. This news should make us think.

The contrast between the achievements that Panama is doing and the mental retardation that we are living in Costa Rica is impressive. A few years ago both countries had similar problems, only we had the highest per capita income of the regions and the highest social indicators of all the Central American countries. Now Panama is beginning to pass us.

While Panama approved a profound tax reform which modernizes the revenue system, here we have been arguing the executive branch’s suggestions in congress for 5 years.

Panama’s congress also approved a law modernizing the social security institutions and the results are obvious. Today we are still thinking about social security the same way we did 30 years ago.

The best and the worst. Panama has the most modern and efficient airport in Central America. We have the most old fashioned airport in the region, even though Juan Santamaría (San Jose’s airport) has a greater number of flights and passengers than Tocumen (Panama’s airport).

The Panamanian highways built with concessions are the most modern in the region. We still have the same basic road network we did 30 years ago.

The Panamanian people went to referendum in October 2006 to approve the modernization and amplification of the canal. This was overwhelmingly approved supporting the governments investment of $7 billion.

So it’s not really strange that from this year Panama has the highest per capita income in Central America, passing Costa Rica for the first time. The GNP of Panama will easily grow 10% in 2007 and is estimated to grow by 11% in 2008.

Total advantage. Panama has a vision for the future. They have been able to modernize their economy in few years and to take complete advantage of all the opportunities that the world of globalization is bringing with it. Besides the US, they have signed free trade agreements with various other countries including Costa Rica.

It’s sad to see that while our neighbours to the south are moving at accelerated pace in the process of modernizing their country, that Costa Rica only has a vision to the past without noting the great opportunities that this country is losing that won’t return in the future.

In a few years Panama will without any doubt not only have better economic indicators than Costa Rica, but will also have far better social indicators.

What is happening with us? If we don’t leave this darkness where we have fallen and look to the future positively and with optimism. If we unite into a national force that can bring us to modernize our country and utilize the large opportunities that the globalized world of today can bring to benefit our population, in particular the young, the farmers, the workers and small business owners.

The decision on the 7th of October is ours. We should participate with enthusiasm ratifying the free trade agreement with Central America, Dominican Republic and the US. Lets not lose this opportunity so we aren’t filled with regret later.

There are several more that I will be happy to translate if there is interest.