New Strides in the Region

PANAMA: THE FASTEST GROWING ECONOMY IN THE WESTERN HEMISPHERE Despite slower GDP growth of 6.2% in 2014, according to the Ministry of Economy and Finance and LAFTA reports, Panama remains one of Latin America’s fastest growing economies. With its history of low inflation, this is a trend set to conti nue in the coming years with the IMF forecasting average annual growth of around 6.5% over the next five years. The main reasons for the increased GDP are: TOURISM - The Tourist Industry in Panama con tinues to show increases in the number of visitors and it is hoped that support for the increased investments (hotels, airline flights, marinas) continues to record a major expansion. EDUCATION – A shortage of skilled workers has been one of the most commonly voiced concerns of business professionals in Panama. With the skills shortage having an impact on the labor market, authorities inaugurated recent developments in subjects offered in technical education, obtaining a Government commitment and thrust to reduce labor shortages. PANAMA CANAL – It is expected that the fore casted inauguration of the widening of the Panama Canal marks the beginning of important investment opportunities in real estate, light industries, industrial estates, warehousing and exports. SUSTAINABILITY – The prolonged joint forces of successive governments together with an agreement on a flat tax system of 10%, have helped position Panama as a stable global business destination and a global transport destination. Panama received a big boost in August 2016 with the added joint forces of public and private sector organizations.

DUTCH GIANT UNILEVER BREAKS GROUND FOR FACTORY IN CUBA Dutch consumer product giant, Unilever, is the largest foreign company to establish itself in Cuba. With the recent move to open up the Cuban economy to foreign investors, the government has created a special economic development zone at the Cuban port of Mariel that is intended to attract foreign investment. Unilever broke ground on a US$35 million joint venture with the Cuban government to produce personal-care products such as shampoo, soaps and other products, for local use and for export. Unilever will hold a 60% ownership of their Cuban investment. The factory is expected to generate a much-needed 300 local jobs and will be managed by Unilever. Seven other foreign companies have initiated plans to open operations in the special econo mic zone since it was inaugurated in 2014, but have not completed documentation to do so. Many other firms hope to gain entry into Cuba but are also yet to break ground, while others remain in the early stages of negotiation. Cuba says it hopes to accelerate the pace of foreign investment, which has been lagging at less than half its annual goal of over US$2 billion.

CARIBBEAN FINANCE MINISTERS DISCUSS ECONOMIC PROBLEMS IN THE REGION International Monetary Fund, (IMF), Deputy Managing Director, Tao Zhang, stated that the current global financial situation, with its low interest rates, provides an opportunity for Caribbean countries to pursue adjustment, undertake liability management to lower fi nancing costs, reduce debts to safer levels and facilitate lending. This will all contribute to a renewed balanced growth. During a recent Caribbean Forum he argued that fiscal and broader macroeconomic stability are neces sary, but not sufficient, conditions for growth. He said additional country-specific structural reforms have to go hand-in-hand to reap a growth dividend. Several Caribbean Heads of State, as well as Central Bank governors from nearby regions attended the forum. Tao Zhang told the delegates that the global outlook continues to be shaped by a subdued recovery from the global financial crisis and weak trade, and that 2016 is proving to be another year of lackluster growth. On the positive side, low oil prices have bene

fited most countries in the region because they import oil and fuel. Many of these countries have seen their external positions improve significantly.

NEW STRIDES IN THE REGION

HAITI AND BRAZIL: AGREEMENT ON THE STRENGTHENING OF VOCATIONAL TRAINING The Brazilian Ministry of National Education announced that in the framework of bilateral cooperation between Haiti and Brazil, the two governments signed a memorandum of un derstanding to strengthen technical cooperation in the field of vocational training. Training and qualification of technical personnel, project mo nitoring and evaluation, preparation of specific studies and detachment of experts are some of the activities planned under this agreement. As such, a Reference Centre for vocational training will be established in Les Caye, Haiti.

COSTA RICA RECORDS LOWEST POVERTY FIGURES IN SEVEN YEARS According to the United Nations, an increase in the average income of the population has resulted in a reduction of poverty levels by 1.2% in Costa Rica. Research conducted by the National Statistics and Census Institute, demonstrates that the change translates to 10,350 families who are no longer considered poor, raising the number of Costa Rican families above the poverty line from 307,270 households in last year’s survey to 317,660 this year. The decrease in poverty is attributable to three variables: a reduction in the country’s inflation rates, benefits granted by government subsidies and aid programs launched by public agencies such as the, The Inter American Development Bank, (IADB). INEC also reported that the average income for the wealthiest households in Costa Rica is almost 13 times higher than that of households with the lowest income levels.

THE DOMINICAN REPUBLIC AMONG THE 3 LEAST DEMOCRATICALLY DEVELOPED IN LATIN AMERICA Venezuela, Guatemala and the Dominican Republic are Latin America’s three least democratically developed countries, according to a report by Latin American political consulting company, Polilat, which measures the institutional, political and economic stability of the region and reveals an average fall of 3% in the South American continent and countries/islands in this area. According to the Latin America Democratic Development Index (2016), the continent barely reached the approved percentage this year, with a 4.7% average in terms of social, economic, civic and economic democracy. The Index looks at civil liberties, socio-economic criterion, political culture and pluralism. Poverty, drug trafficking, bribery and corruption have become functional problems in recent years and this has reversed political structures.

AS ZIKA STRENGTHENS - ‘NALED’ MOSQUITO KILLER UNWELCOME TO MANY The first baby with Zika-related congenital Microcephaly in the region was recently born in Puerto Rico. In response to this development, the controversial pesticide, Naled, was sprayed over Miami in an effort to eradicate the Aedes Aegypti mosquito. However, the spraying has prompted protests from environmentalist groups because Naled is a highly toxic insecticide that contains Malathion. It is lethal to all insects, and according to the Environmental Protection Agency, (EPA), it was recently responsible for killing millions of bees in South Carolina, some birds and some freshwater fish. Naled is used in the US but banned in the European Union. To date, it has not been used in Puerto Rico. But the question remains: Will it stop Zika? Other mosquito control measures are failing and the Zika viral threat to babies is very great. Naled reduced the mosquito population by 99% in Florida and by 95% in New Orleans, but is it worth the price to pay for the environment?