Political crisis: challenges and opportunities

Panama is currently experiencing a political crisis, which has been accompanied by demonstrations and road blockades for around three weeks. The population is angry about the rapid approval of a controversial mining contract with Minera Panama, a subsidiary of the Canadian company First Quantum Minerals. A broad alliance of groups, including trade unions, teachers’ associations and youth organizations, have called for nationwide demonstrations to protest against the contract and demand a ban on mining.

The protesters are criticizing the negative environmental impact of open-cast mining, as well as the unfair conditions and various one-sided advantages for the Canadian company.

The copper mine in Panama has been operational since 2019 and is one of the largest in the world.
It is an important part of Panama’s economy (4.8% of GDP) and a major employer (2.3% of total employment).

Meanwhile the opportunity is also used to draw attention to dissatisfaction with the current government in terms of corruption, slow action, etc. At the same time, the opposition parties and trade unions are fueling the mood to put pressure on the current government during the election campaign. Government elections will be held again in Panama in May next year (every 5 years).

The crisis offers the opportunity for a social debate on the sustainable economic development of the country. The government must seek dialog with interest groups in order to listen to their concerns and demands. Above all, they have to find solutions that guarantee economic opportunities as well as environmental protection and social prosperity. Likely, this will also have positive consequences for the future, as lessons will be learned from mistakes made. A new government will have to heed the voice of the people on these issues and act in their interests.

Panama has a history of overcoming challenges, otherwise it would not be the flagship country of the region and the headquarters of major multinational corporations in Latin America.

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FRAPAN-Invest

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FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

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