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by William Bright Marine (1998)
Just when you thought Panamanian politics could not get more bizarre, the media in Panama is reporting, and the government has confirmed, that President Balladares has hired James Carville to head his reelection campaign. Carville is being funded by Mayor Alfredo Aleman, a major player in drug laundering and the money man for President Balladares’ campaign. President Balladares is trying to change Panama’s Constitution so he can run for office again. The required plebiscite is to be held on August 30 this year. The latest polls show that President Balladares is trailing 51% to 31% with 18% undecided.
Corruption has been the legacy of the Balladares Administration with 169 documented cases. The U.S. Commerce Department has blacklisted Panama for defrauding seven U.S. companies (MIT. Kansas Southern Cellular, Vision TeleCom. Varian Associates, Unisys, and Sayholt). Over 70% of the inmates in Panamanian jails have not seem a judge much less a lawyer. In 1991 a young U.S. soldier, Zak Hernandez, was gunned down in cold blood. The number one suspect was the son of Panamanian Senate President Gonzalez, and was found not guilty even though the evidence showed otherwise.
When asked by Panamanians why I do not support U.S. troops being placed under Panamanian legal jurisdiction, I respond that I do not want either Panamanians or Americans under the jurisdiction of the flawed Panamanian legal system.
Political freedom is desperately needed, but it is not enough. Panama needs economic freedom and the guarantee of individual rights. The greatness of the U.S. is that opportunities are open to all. In Latin America, control of the economy is in the hands of what is known as the Oligarchy. Fourteen families control Panama and if you do not have the proper lineage or last name, you are relegated to the lower class and opportunities are not available. While Panama has the second largest free trade zone in the world, 150 major banks, and the Panama Canal, they are all in the hands of this Oligarchy.
The World Bank’s and IMF’s responses have been that Panama must privatize government services. However, this alone cannot solve the problem. Mexico had two billionaires prior to their privatization program; now there are 34. The rich got richer and the poor got poorer. Privatization must be done in a very controlled and deliberate manner to function properly as a free-market activity.
In Panama, Cable & Wireless won the highly contested bid to operate Panama’s phone system. To sweeten the deal, Panama arbitrarily changed the billing system. In the U.S. and Panama, local calls were free. Now, unless you pay $24 a month per phone line, you are charged for local calls. Panamanians were paying $10.50 for that service. A long distance call to the U.S. costs $1.40 a minute plus a government connection tax of $1.00. A one-page fax costs $2.40. In Panama 60% of the work force earns $250 or less, while 90% earn up to $500. How can these individuals enjoy the benefits of globalization, which Panama is in the perfect position to exploit? The answer is they can’t.
In 1996 Panama and the U.S. agreed to a 25-year seven U.S.-base deal. The only sticking point was compensation for Panama. I had proposed that in exchange for the base rights agreement, the U.S. build an underwater telecommunications system that incorporated all of the Western Hemisphere. American companies would build it, and provide long distance service. Panama would be responsible for marketing and would receive financial revenues based on the usage of the system. The U.S. and Panama would enjoy the lowest rates (.10 - .20 per minute). It should not take long for the U.S. government to recoup the estimated $250 million tax dollars spent on this project. An estimated increase of taxable revenue on $1 billion dollars in sales to Latin America should take no more than 5 years to be reached.
On August 7, Panama gave Mac McLarty a medal. Under MacLarty, the Panama Canal physical plant has been falling apart and seven U.S. companies were defrauded. Panama was rightfully blacklisted by the U.S. government. After James Carville arrived in Panama, the Communist Chinese and the Lippo Group took control of U.S. bases, U.S. ports. and the functions of the Panama Canal.
While Americans must wait for their judicial system to punish those responsible for these crimes, Panamanians will get their chance at justice when they vote NO in the August 30 plebiscite.
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