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1. Appraising the Economic Potential of Panama: Policy Recommendations for Sustainable and Inclusive Growth

Author:
Ricardo Hausmann, Miguel Angel Santos, and Juan Obach
Publication Date:
05-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This report aims to summarize the main findings of the project as gathered by the three baseline documents, and frame them within a coherent set of policy recommendations that can help Panama to maintain their growth momentum in time and make it more inclusive. Three elements stand out as cornerstones of our proposal: (i) attracting and retaining qualified human capital; (ii) maximizing the diffusion of know-how and knowledge spillovers, and (iii) leveraging on public-private dialog to tackle coordination problems that are hindering economic activity outside the Panama-Colón axis.
Topic:
Development, Economics, Economic growth, and Economic Policy
Political Geography:
Central America and Panama

2. Special Economic Zones in Panama: Technology spillovers from a labor market perspective

Author:
Ricardo Hausmann, Juan Obach, and Miguel Angel Santos
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Special Economic Zones (SEZ) have played an important role in Panama's successful growth story over the previous decade. SEZ have attracted local and foreign investment by leveraging a business-friendly environment of low transaction costs, and created many stable, well-paid jobs for Panamanians. Beyond that, SEZ shall be assessed as place-based policy by their capacity to boost structural transformations, namely attracting new skills and more complex know-how not to be found in the domestic economy. The aim of this paper is to evaluate the three largest SEZ in Panama: Colon Free Zone, Panama-Pacific, and City of Knowledge. Our results suggest that SEZ have been successful as measured by static indicators, such as foreign investment, job creation and productivity. We also find that SEZ have boosted inflows of high-skill immigrants, who are most likely generating positive knowledge spillovers on Panamanians productivity and wages. However, significant legal instruments and institutional designs are preventing Panama from taking full advantage of the skill variety hosted at the SEZ. Complex immigration processes inhibiting foreigners from transitioning out of the SEZ, a long list of restricted professions and even citizenships considered as a national security concern, are hindering the flow of knowledge, keeping the benefits coming from more complex multinational companies locked inside the gates of SEZ.
Topic:
Business, Economic growth, Investment, and Special Economic Zones
Political Geography:
Central America and Panama

3. Shifting Gears: A Growth Diagnostic of Panama

Author:
Ricardo Hausmann, Luis Espinoza, and Miguel Angel Santos
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Leveraging on the Canal, Panama has a developed a major comparative advantage in the exportable services sector. In turn, the stellar growth in this sector has spurred the demand for construction, which has been key to promote upward social mobility and increase labor productivity. But there are signs that this sector is receding, incapable of sustaining growth rates that are higher than the rest of the economy. This threatens to undo some of the progress made in terms of reducing income inequality and poverty in the country, and have the potential to stir social unrest. To face these new challenges, Panama must increase its stock of human capital by improving the quality of education, which is among the lowest in the world. Meanwhile, the country must open up to high-skilled immigration by removing harmful restrictions. To fully profit from immigration, it is equally important to maximize the diffusion of these skills and promote know- how spill overs through adequate policy. Finally, Panama must strengthen its institutions and reduce red tape and corruption, which most firms currently consider the most binding constraint to growth.
Topic:
Development, Immigration, Infrastructure, Economic growth, Institutions, and Human Capital
Political Geography:
Central America and Panama

4. Panama beyond the Canal: Using Technological Proximities to Identify Opportunities for Productive Diversification

Author:
Ricardo Hausmann, Jose Ramon Morales, and Miguel Angel Santos
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
The economy of Panama has thrived for more than a decade, based on a modern service sector on the activities surrounding the Canal. Panama has inserted its economy into global value chains, providing competitive services in logistics, ship handling, financial intermediation, insurance, communication and trade. The expansion of the modern service sector required significant non-residential construction, including office buildings, commercial outlets, warehouses, and even shopping malls. Large public infrastructure projects such as the expansion of the Canal, the Metro, and Tocumen airport, have provided an additional drive and paved the road for productive diversification. But productive diversification does not spread randomly. A country diversifies towards activities that demand similar capacities than the ones already in place. Current capabilities and know-how can be recombined and redeployed into new, adjacent activities, of higher value added. This report identifies productive capabilities already in place in Panama, as signaled by the variety and ubiquity of products and services that is already able to manufacture and provide competitively. Once there, we move on to identifying opportunities for productive diversification based on technological proximity. As a result, we provide a roadmap for potential diversification opportunities both at the national and sub-national level.
Topic:
Development, Infrastructure, Economy, Economic growth, and Diversification
Political Geography:
Central America and Panama

5. Special Operations Today: FSR Interviews LTG Cleveland (Ret.) Former Commanding General, USASOC

Author:
Charles Cleveland
Publication Date:
09-2015
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Lieutenant General Charles T. Cleveland, an Army Special Forces Officer, relinquished command of the United States Army Special Operations Command (USASOC) and retired after 37 years of military service on 01 July 2015. He previously commanded the Special Operations Command Central and Special Operations Command South as well as the Combined Joint Special Operations Task Force-North during Operation Iraqi Freedom. LTG Cleveland is a native of Arizona and a 1978 graduate of the United States Military Academy at West Point, New York. His military awards and decorations include the Defense Superior Service Medal and the Legion of Merit Medal.
Topic:
Security, Defense Policy, War, Military Strategy, Military Affairs, Interview, Army, and Special Operations
Political Geography:
Africa, North America, Panama, and United States of America

6. Cuba and the Summits of the Americas

Author:
Richard E. Feinberg
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
In the coming months, the United States is going to face a tough choice: either alter its policy toward Cuba or face the virtual collapse of its diplomacy in Latin America. The upcoming Summit of the Americas, the seventh meeting of democratically elected heads of state throughout the Americas, due to convene in April 2015 in Panama, will force the Barack Obama administration to choose between its instincts to reset Cuba policy to coincide more closely with hemispheric opinion and its fears of a domestic political backlash.
Political Geography:
United States, America, Cuba, Latin America, and Panama

7. Logistics: Shipping on the Panama Canal

Author:
Liliana Rivera and Yossi Sheffi
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
The Panama Canal Expansion Program (PCEP), launched in September 2007 and scheduled for completion in 2014, is expected by its proponents to have the greatest impact on global shipping of any project underway today. Once completed, the $5.5 billion project will roughly triple the size of vessels that can pass through the Canal, from the current maximum of 4,400 20-foot equivalent units (TEU) to 12,600 TEU. In a December 2010 article, The New York Times echoed the general consensus that the project will lead to “the biggest shift in the freight business since the 1950s, when sea-faring ships began carrying goods in uniform metal containers.” Nevertheless, at the midpoint of the project's timeline, there are important questions about what has been achieved to date, and in particular, about how effectively ports outside Panama will be able to handle the larger ships and the associated increased volume of traffic.
Political Geography:
New York and Panama

8. Pathways to Prosperity in the Americas

Author:
Donna E. Shalala, Ph.D. and Charles E. Cobb
Publication Date:
09-2008
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
It is critical that Florida and the United States provide bipartisan support for the 12 Western Hemisphere countries that have formed the alliance called "Pathways to Prosperity in the Americas." These 12 countries that previously have negotiated trade agreements are: Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Panama, Peru and the United States.
Political Geography:
United States, America, Canada, Colombia, Dominican Republic, Mexico, Honduras, Costa Rica, Chile, Peru, Guatemala, Florida, El Salvador, and Panama