Social investments, the priority is to raise the economy

He good performance of the economy during the government of Ricardo Martinelli (2009-2014) is not an act of magic, but the result of his ability and experience as a man in the private sector.

This is how it is expressed journalist and economic analyst, Aram Cisneros, when analyzing the impact of the former president’s economic policy.

“Not as a traditional politician, since he did not devote his life to politics, but to the creation and development of companies, brought the best business practices to the public sectorwhere these practices are rare,” he summarized.

And Cisneros and Frank De Lima, who in Martinelli’s government was first deputy minister and then minister of economythey recalled that the former ruler began his administration in the midst of the global financial crisis and yet, against all odds, had the power to move the economy forward.

De Lima stated that the government of Martín Torrios even lived very low economic growth of 0.1% in the first half of 2009with which they had to begin their administration.

“Because of the anti-cyclical policy that we managed to launch in… second half of 2009the cycle of growth that we all know has begun,” said the former minister.

How did they manage not only to maintain the economy, but also to expand it?‘

35%

was the debt/GDP ratio that Ricardo Martinelli left behind and which rose after his administration.

8%

It is about the average nominal economic growth that Ricardo Martinelli wants to achieve.

The first thing that stands out about De Lima was public investments which was carried out.

He admits that the expansion of the Panama Canal is underway, however, with that project, it is over 14 billion dollars of public investments in that five-year period.

“It was a government with a social feeling and a business-like economic plan,” recalls De Limawho remembers the tours that Martinelli led to bring in foreign investment and the investment fairs that the Ministry of Trade and Industry held in the major capitals of Europe and the United States.

What did it achieve?

The poverty fell by more than 10 pointswhich meant that more than 300 thousand Panamanians left that state.

On its part, extreme poverty fell by eight points and not only is it possible to get an investment rating, but the risk rating has also improved.

The unemployment rate fell from 7% to 3.5%becoming a full employment economy.

“Almost everyone had a job, and those who didn’t got one quickly”Cisneros pointed out.

The economic journalist praised what was achieved in Foreign Direct Investment (FDI)which was 4.4 billion dollars, an unprecedented figure.

“The investor notes that the president is a private sector man, weathering the 2008 crisis, bringing unemployment to historic lows, lifting 300,000 people out of poverty. That investor says: “You know what, I’m going to Panama”Cisneros said.

Former Minister De Lima supports this point of view and pointed out that FDI per capita in that period It was the highest in Latin America.

In turn, Gross domestic product (GDP) per capita managed to position itself as the second highest, below Chile, a country that was later surpassed.

He operating costs fell from 55% to 40%interest payments represented less than 10%, and more than 30% of the budget was allocated to public investments.

It has been achieved about 9% of GDP in public investments in 2012which are figures never seen in Latin America.

“When it was my turn to show the numbers outside, People were left speechless because in the middle of the recession they were wondering how we could grow 10% and not have unemployment,” De Lima remembers.

Challenges

Today the reality is different and considering that, Government plan of presidential candidate Realizing Goals (RM), Ricardo Martinelliseeks to recover macroeconomic stability, achieve an average economic growth of 8% and lower the debt/GDP ratio below 40% by the end of 2029.

Additional work will be done on strengthen investments and job creationimprove competitive access to international markets and develop sectors with high production potential and employment potential.

The government’s plan will guarantee the sustainability of the economic growth strategy, giving priority strengthen transparency and participatory democracymaintaining fiscal discipline, strengthening the judicial system and citizens’ security, as well as modernization of public administration and decentralization, as well as improvement of environmental protection and risk management.

Among the drivers of growth visualized is agricultural productionwhich will be funded by technology to improve it and its commercialization will be promoted through embassies.

The construction, logistics and tourism They will also get all the attention.

Except, public administration will be modernized Information technology will be used to work on more efficient decentralization, expeditious payment to state suppliers and investment in human capital.