CCIAP: Chronic bureaucracy blocks the country’s development

The Chamber of Commerce, Industry and Agriculture of Panama (CCIAP) he pointed out that chronic bureaucracy and the inefficiency of state institutions are exacting a high price in economic and human development for Panama.

“Every day, hundreds of companies, large, small and medium, as well as entrepreneurs see their efforts and business initiatives seriously affected. In many cases, even destroyed as a result of non-existence or non-functioning of institutional systems, procedures and mechanisms”, the text states. CCIAP in your weekly newsletter.

As the union says, we have accepted as normal that in procedures related to the state there are unjustified delays, process costs, late payments and a series of situations that seriously harm business.

For businessmen, it shouldn’t be like that, that’s why they demand a definitive end to this practice that causes so much damage to our country.

They see the effects of this inefficiency as deep and long-lasting. On the one hand, companies spend additional time and resources to comply with poorly implemented regulations, navigate endless paperwork or deal with unforeseen procedures.

“This not only increases operating costs, but also creates higher costs for consumers. These obstacles also cause delays in launching new projects, product launches or commercial expansion,” they added.

They also explained that this is limited to Panamanian businessmen who, due to the high cost of bureaucracy, are no longer competitive in the face of market changes and opportunities.

They explained that at a time when the economy needs to innovate and be more efficient than ever, the obstacles created by institutions only discourage innovation.

Namely, due to unjustified bureaucracy and delays, various entrepreneurs and businessmen, several of whom are CCIAP members, informed them of their intention to stop producing or marketing some products and services due to the impossibility of overcoming bureaucratic obstacles.

As for small and medium-sized enterprises, which do 96% from our private sector, indicated that they are the ones who suffer the most from the obstacles imposed by the bureaucracy, since these are costs that simply become potential closures or bankruptcies.

Chronic bureaucracy, with its characteristic lack of transparency, is also a frequent breeding ground for corruption. Procedures and formal processes that can be resolved with the utmost discretion encourage a market for services and inappropriate payments, which must be punished by the strictest law.

In recent years, they have welcomed the implementation of technology to create efficiencies in service delivery in institutions such as election court and issuing an identity card, Administration for Transit and Land Transport and the delivery of a driver’s license or Panama Passport Authority; as well as for the distribution of subsidies to citizens.

In the same way, the union called on the government to invest and implement actions aimed at technological platforms that enable online procedures and the presentation of transparency information in real time.

Only with these tools will we achieve a culture of efficiency and equal opportunities for all traders, regardless of their size and economic capacity, the union points out.