According to statements by the president of the Chamber of Commerce, Industry and Agriculture of Panama, Marcela Galindo, “our country is going through the worst employment crisis in its recent history,” which, among other reasons, finds its cause in a declining confidence to develop business in the country as a result of barriers that make entrepreneurial initiative or the arrival of capital that nurture foreign direct investment increasingly difficult.
“Our country is in free fall in the international “Doing Business” classification prepared by the World Bank, which measures the regulations for doing business in 190 countries. In the last measurement, it was ranked 86th, when in 2014 it was ranked 55th,” explained Galindo.
Similarly, since that year, Panama has experienced a collapse in the measurement of the competitiveness ranking of the World Economic Forum. After having occupied position 40 in 2012, in the last measurement of 2019 we find ourselves 26 positions below in number 66 of 141 countries analyzed. While competing countries such as Mexico, Colombia, Costa Rica and Peru are above.
The decreases that these lists show, he explained, are only a reflection of how the free market is less and less free, besieged and threatened with greater interventionism and public officials who go beyond their functions. “Today, the opinion is more and more constant that doing business in Panama is increasingly impacted by bureaucracy, government discretion and regulations without technical support. This is leading national and international businessmen to abandon the idea of making new investments or, worse yet, reduce or relocate their operations,” Galindo said.
At a time when the country needs to generate as many jobs as possible, it is unlikely to hear that thousands of jobs are put at risk as a result of uncertainties generated by actions or inactions of national authorities.
The president of the CCIAP, assures that as a country we must commit to a framework where the right of individuals to carry out any legal productive, business or commercial activity without excessive burdens or regulations, or State interference in the administration of their companies is respected. With clear protection of the rule of law, the right to property and fiscal responsibility. These are the elements that will help encourage investment by both locals and foreigners, thus promoting the increase in jobs, contributions to the treasury, transversal economic growth and, therefore, prosperity for all.
