U.S.-PANAMA BUSINESS COUNCIL

in association with
CARIBBEAN/LATIN AMERICAN ACTION (C/LAA)
NORTH-SOUTH CENTER
GENERAL CONSULATE OF PANAMA IN MIAMI

co-sponsored by
COPA Airlines
Panama Canal Authority
Panamanian Institute of Tourism
Interoceanic Region Authority
Great Lakes Dredge & Dock Company
Prudential Securities

COUNTRY PRESENTATION & RECEPTION
PANAMA 2000 & BEYOND

Special Guests:

His Excellency Dominador Kaiser Bazan
Vice President of Panama
His Excellency Guillermo Ford
Ambassador of Panama to the U.S.

HOTEL INTER-CONTINENTAL 
100 Chopin Plaza, Miami


Aminta Konawicz, Edward Konawicz, Elisa Sosa, David Konawicz, & Vice President Dominador K. Bazan


Guest, Ambassador Juan B. Sosa, Lucinda Aunon, & Tomas Aunon


Aminta Konawicz, Guest, H.E. Guillermo Ford, Ambassador of Panama to the U.S., & Guest


The Honorable Simon Ferro, U.S. Ambassador to Panama, David Konawicz & Edward Konawicz


Aminta Konawicz, Ricardo Eskildsen, The Honorable & Mrs. Manuel Cohen, Consul General of Panama in Miami, Irma Fonseca Turco & Paul Turco


Alberto Aleman Zubieta, Administrator, Panama Canal Authority, Guest, The Honorable Simon Ferro, U.S. Ambassador to Panama, Guest & Juan Francisco Pardini, President, CICYP (Panama)

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ADDRESS BY DOMINADOR KAISER BAZAN
SECOND VICE PRESIDENT OF THE REPUBLIC OF PANAMA TO THE ANNUAL MIAMI CONFERENCE OF THE CARIBBEAN AND LATIN AMERICA ACTION MIAMI, DECEMBER 7, 2000

It is an honor and privilege to address the 24^th Annual Conference on the Caribbean / Latin American Action, an organization that has been at the forefront in building a solid economic foundation in the hemisphere and promoting the concept of free and fair trade. I want to congratulate Ambassador Donald Planty for the leadership he has provided the organization in his first full year at the helm. I am also very pleased to see my very good friend from Panama Alberto Motta, prominent member of the C/LAA Board of Trustees, and a tireless worker for expanded trade among the nations of the hemisphere.

 INTRODUCTION:

We live in exciting times and the last twenty years have been critical to the development of a framework in which the concept of globalization can prosper and open opportunities to nations, specially small states in the Caribbean Basin, which have gone through structural adjustments in their economies, some of them extremely painful, to be able to access new markets and compete in a world where borders become more blurred every day.

Panama recognizes the World Trade Organization, better known as the WTO, as the primary rule-making entity of the globalization process. We also recognize that the globalization process is not a guarantee that our countries will succeed in enhancing its economic development. However, it allows countries to reach new markets, to attract flows of capital, to create dynamic models for development strategies, to build social safety nets and to improve the overall performance of a country externally and internally.

However, the route to globalization has not been easy. Per capita income in industrialized countries are now an average 25 times those of developing countries, up from 16 times in 1968. Per capita income in the richest country is 500 times that of the poorest nations in the world. These realities highlight the need for developing countries to be more effective in their strategies and more successful in their practices, especially in those "export oriented" strategies which have been so successful in East Asia, based on the promotion of competitive advantages, the use of highly productive techniques, and building harmony among the various sectors of the economy, instead of using the old and misplaced strategies of creating artificial incentives that sometimes have negative impact in the local economies.

The World Bank, in its 1997 Report, recognizes that an effective state is central to economic and social development, but more as a partner and facilitator, instead of being the center of economic activity. States should seek to complement markets, not replace them.

Ladies & Gentlemen, Panama supports the position of the World Bank concerning the need to have an effective government, fostering growth, and acting as a facilitator, together with a strong civil society and private enterprise, as the foundation for development.

Within the framework presented herewith, I want to report how Panama is preparing to meet more effectively the challenges it will face during the first decade of this twenty first century.

First of all, Panama recognizes and has acted to generate consensus among government, civil society, entrepreneurs, and labor, to follow the model of a market economy, where private enterprise is the dynamic force leading economic activity while the Government adopts the role of a facilitator and developer of the required infrastructure, physical and human, to sustain economic development and social growth.

Consistent with that model, the administration of President Mireya Moscoso has adopted the following social and economic guidelines:

1. Pursue multilateral and bilateral trade agreements, particularly with Central America, Mexico, Chile, and MERCOSUR, as well as more access to the U.S. market. 

2. Give priority to the formation of the Free Trade of the Americas Area FTAA). We are pleased to inform that Panama will host the negotiations of the working groups and the secretariat of FTAA beginning in March of 2001, for the next two years. I would like to take this opportunity to thank all of those countries of the Americas that supported Panama in its aspirations to be a host country. 

3. Being a member of the WTO, Panama will respect the agreements with this organization but will continue to exert its discretionary power to adopt policies which are justified for the wellbeing of our nation.

4. In order to benefit as much as possible from the globalization process, Panama has pursued the realization of the following objectives:

* Increase Panama’s competitive advantage in the maritime industry through improved efficiency in its port terminals at the Pacific and the Atlantic side, building what is now recognized as the largest and most integrated and efficient Transshipment Center of the Hemisphere outside of the United States.

* Panama has put into effect a plan to enhance and modernize the Panama Canal which will terminate on September 2001 at a cost of $1 billion. In the near future will start a new phase which includes the construction of the third set of locks in order to increase its capacity to handle the ever increasing volume of transits generated from a higher volume of international trade, and accommodate larger vessels(150,000 ton Post Panamax ships). This is a huge total investment of about US$8 billion that will have a major impact on world trade, the shipping industry, as well as the Panamanian economy.

* Making the most of its geographical position, Panama is in the process of establishing international multi-modal transportation hub centers in the Pacific and Atlantic side where air cargo will be received, stored, processed and combined with maritime and land-based cargo. In this sense, Panama will complement its neighbors’ trade efforts, increasing the possibilities of their success from globalized trade.

* Being tourism one of the most dynamic sectors of the world economy, Panama has developed port facilities for passenger cruises. Initial reports of cruise vessels arriving in Panama have shown a vibrant industry that is fast becoming part of Panama’s growth strategy. Panama will become "Home Port" for many cruise lines and also will play a major role in the Caribbean cruise business. Ecological tourism is another sector that has been developed and will become the base for Panama to become a major international ecological tourist attraction in this decade. At present, Panama is also in the planning stage to build a major international Sea Aquarium in the entrance of the Panama canal on the Pacific side (Fort Amador), designed by the world famous Architect Frank Gehry. Once built, thousands of visitors, particularly from Central America, the Caribbean & South America are expected, thanks to the impressive effort of major airlines operating in Panamaincluding COPA, Continental, American , Delta and Iberia.

* The Colon Free Zone, a bastion of international trade for the last fifty years and now reinforced as an international transportation logistic hub, will continue playing a major role, and its increasing levels of exports will be very much a part of the hemisphere’s trade, particularly from Venezuela, Colombia, Ecuador, Chile and Central America.

* Panama has strengthened the structure of its international banking system and its insurance and reinsurance business, positioning it in an advantageous position to become an important player in the economy of the hemisphere.

* Non-traditional exports, particularly from the agricultural sector, have become an important target for development. This sector is being promoted by the Government, through the opening of markets via multilateral and bilateral trade agreements.

* Panama recognizes the energy that small and micro enterprises provide not only to the economy but to the family structure as well, and is allocating resources to support and expand this sector.

* Great emphasis has been placed by Panama in higher education. With a population close to 3 million, Panama now has over 14 universities operating throughout the country. The City of Knowledge, -formerly Fort Clayton U.S. Army South Headquarters- which will host to universities and institutes from all over the world, and will cater to international students, offering quality academic standard at competitive prices!

5. Panama is well aware that today’s world is divided not by ideology but by technology and that a small part of the globe, accounting for some 15% of the earth’s population, provides nearly all technological innovations. A second part, including perhaps half of the world, is able or adopt these technologies in production and consumption. We are aware that Panama needs to promote further technological education and training and that its educational system needs major reforms in order to increase its standard of living. These actions are of top priority.

6. The New World economy needs to restructure its international financial architecture, not only to reduce disruptive market situations and the burden of an extremely high external debt, but also to merely allowing our countries to allocate a higher portion of our national income to addressing social problems, educate our people and upgrade our level of technology. Without social stability there will be no economic stability. In this respect, we propose a joint effort and cooperation among the countries of the region, in order to press further for a better and fairer architecture in the international financial system.

7. Panama is addressing in a serious manner poverty levels among its rural population. President Moscoso’s Administration has established a well thought-out program for developing 3,000 small sustainable farms, which will house 500,000 people in five years, to help mitigate thebasic needs of the rural sector, as well as providing an extensive health services program. This program, which is becoming a model of development, as evidenced by the support generated by the private sector and evaluated by the Inter-American Development Bank, will help create wealth and stability among our rural population, while at the same time providing the basics for them to participate in the globalization process.

As we embark on this new journey, we most be realistic of the opportunities and limitations that we face. Countries, regional economic blocs, and multilateral organizations such as the United Nations, the World Bank, the Inter-American Development Bank and others, will be instrumental in the implementation of new and creative strategies.

Organizations like C/LAA, who have proven throughout the years to be a strong advocate for the development of the region, will be called once more to provide vision and energy. I am confident that once more, C/LAA will come though with flying colors. Once again, I express my gratitude for having the opportunity to speak today, wishing you the best success in your 24^th Annual Meeting.

THANK YOU!