Panama has a new president

Panama’s elections have come and gone, and with them, we now have a new president.!

True to form, Panamanians have never elected the incumbent party for a second term, and this May 5th was out with the old and in with the new. Juan Carlos Varela on the Panameñista ticket won the presidential spot by a hair, beating out President Martinelli’s protégé Arias and trumping PRD hopeful Juan Carlos Navarro.

In his acceptance speech, Varela committed to “unify Panama and bring about change for the Panamanian people,” which seems to be standard rhetoric for any president elect.

Let’s see what happens with Varela, but I for one have high hopes.

Panama’s been on an economic streak for the last 10 years. Averaging 8% growth has made this small country the envy of the region, and outgoing president Martinelli can take a lot of the credit.

Prioritizing infrastructure projects, tourism, mining, and the financial services sectors have helped fuel growth in the country, and president-elect Varela, along with his new Minister of Economy and Finance Dulcidio de la Guardia, have been vocal about their commitment to continue many of the economic priorities of the last government.

“Line 2 of the metro will happen,” said de la Guardia in an interview with Capital Financiero this past week.

The incoming administration, through the finance minister, also expressed solidarity with campaign promises to “simplify the tax filing process, to limit the frequency with which business owners have to submit documents,” with no intention of increasing taxes.

He also addressed the price control measures for emergency goods which was a major part of Varela’s campaign platform and an economic policy many outsiders are wary of.

“This is a case of monopolies setting the prices, not market forces. We have seen the price on these types of goods quadruple in five years, while prices on a global level for the same products have increased only moderately. Something is wrong in Panama, because this should not be happening.”

Interestingly enough, outgoing president Martinelli owns Super 99, one of the biggest supermarket chains in the country. Coincidence? We’ll know in a few months if there’s something that can actually be done through economic policy to lower the cost of basic goods…

“At the end of the day, Panama already has had price controls enacted for the last four years with our combustibles. It’s a matter of selecting a specific item – for example, tuna – and holding the price for six months and then letting the market determine the price after that period.”

The Varlea team has also committed to improve Panama’s deplorable public school system and lend a hand to the agro and farming sectors, both of which are in desperate need of some fresh policies.

Again, it’s all campaign promises so let’s wait a few months to see how campaign rhetoric and celebratory promises play out in the real world, but I for one am excited ot see what the new administration can bring. Stay tuned next month for a profile on incoming Panama City Mayor Jose Blandon, who has already started talking about adding MORE SIDEWALKS!!!