Tax Haven Blacklist

Despite an economic crisis, business is picking up

by Willy Carrera Loza

Starting with the month of December, business activity picked up, as it does every year. On Avenida Central in Calidonia, holiday spirits mingle with the stores' sales, the appearance of more street vendors and increasing throngs of shoppers, who are looking to buy gifts despite the economic crisis in which Panama has been immersed.

The merchants were well prepared for Mothers Day, Christmas and New Years. There are games, greeting cards with special messages, clothing for the whole family and household items. Some of the holiday offerings appear to defy the 2000 economic downturn that has dashed so many people's hopes, although in some cases they are desperate short-term efforts to en the year on a profitable note.

The discounts are to be found in restaurants, whose owners put signs in the middle of the sidewalks, offering meals for a dollar and sodas for free.

But despite a hard year for most people, there is the hope that this month will improve things, as the millions of dollars spent by holiday shoppers circulate through the economy.

The banks and credit unions are disbursing Christmas savings estimated at no less than $60 million, and then there are the thirteenth month bonuses paid to public and private sector wage and salary earners, private holiday bonuses and people buying on credit.

Panama's second vice-president, Dominador Kaiser Bazán, said that increased business activity during this month will give the economic recovery that has begun to register over the past three months an important push. "This is a positive outlook that came along with the Ibero-American Summit, which created a climate of satisfaction and optimism in the country," he said.

Kaiser Bazán noted that consumer spending in the month of December will affect the economy positively, generating permanent and temporary jobs which will provide a platform for an economic rebound during 2001.

The president of Panama's Chamber of Commerce, Industry and Agriculture, Manuel José Paredes, told The Panama News that December's sales will result in an eight percent increase in sales tax revenues. He takes that as a positive sign for next year's economic prospects.

For his part, National Police Chief Carlos Barés has ordered a series of operations he calls "Navidad 2000," with the aim of suppressing the wave of robberies that has washed over different parts of the capital. Barés warned that during the year-end festivities "strange friends" are ready to assault pedestrians who are shopping or withdrawing savings from banks or automatic tellers.

"These operations have been coordinated with the corregimientos, so that they can support our work and make citizens feel more protected," the police chief said. "In recent days we have been able to observe an increase in crime, especially in Curundu, Santa Ana, Chorrillo and Barraza, among other areas."

"We're asking people, through the press, to report any suspicious activity by shady characters, in order to prevent any incidents that they may cause. I hope that these year-end festivities are celebrated in peace and love, and more than anything with plenty of reflection," Bares added.