Panama and the United States shared a strong bond throughout their respective histories. The link between these countries lasted for over 100 years and helped Panama become the second largest economy in Central America. While these two nations are different in language, climate and poverty, some of their business structure, government and business communications shares similarities with the United States.
A brief, general background on this nation, Panama has a population of 2.4 million people and is one of the smallest countries in Central America. The official language is Spanish. Because of the extensive U.S. influence, most Panamanians are bilingual in Spanish and English.
The ethnic background of most …show more content…
Panamanians is mestizo (a mix of Indian and European) around 70 percent, 14 percent West Indian, 10 percent European, and 6 percent American Indian.
The majority of the people (85 percent) are Roman Catholic, although Panama has no official religion. There are also small numbers of Protestants, Muslims and Hindus. (Nicol, 2012)
The United States, by comparison, is 56 percent Christian with only 28 percent being Roman Catholic. The predominant lineage in America is of European descent. Nevertheless, the United States welcomes everyone from every country and culture in the world. Since the U.S. is much bigger by area and population than Panama, the nation is much more diverse with race and religion. American influence however, had a significant presence that remains quite large today.
Economy
The United States held control of the famous Panama Canal from 1914 until 1999. Nevertheless, the Panama Canal remains one of the world’s most popular tourist destinations and still serves as a key conduit to international trade. Currently, the canal remains one of the main revenue sources for the country and is undergoing expansion set to complete in 2016. Cities look forward to the expansion completion, as it will allow bigger, wider ships to enter and improve the speed of trade to many ports in the United States and beyond. Approximately this development created more than 30,000 jobs since the project’s implementation.
The expansion has given the nation a plethora of a new service jobs, however Panamanians and their work ethic have changed since the late 20th century.
For example, 30 to 40 percent are white-collar workers who are highly skilled and educated, with very little agricultural or industrial experience. Panamanians and other Hispanics represent a consumer market of between $140 billion and $190 billion in the world’s economy, and that market will be responsible for much of the consumer market growth here in the United States in the future. In addition, business profits were estimated at $29.6 billion in 1990, up 48 percent from 1987 (Dean, 1996).
However, Panamanians and other Hispanics suffer from high poverty levels compared with non-Hispanics. For example, income, employment status, education and other factors, the average net worth of a white household is about eight times that of a Hispanic household ($43,279 as opposed to $5,524) (Dean, 1996). In the private sector, Panamanian workers are active members in the nation's work force. Panamanians have had better luck of finding improved jobs during the past decade, but they are more likely to be employed in lower-skilled, lower-paid …show more content…
professions.
Workers in manufacturing and construction typically join a union. The unions negotiate pay rises and help with any disputes. Strikes are not particularly common, but a number of strikes happened 2010, which succeeded in overturning anti-strike legislation enacted by the government. A law known as “Law 30” places limits on union memberships and strike action. Organizing street protests once was a crime. However, a strike by the banana plantation workers succeeded in getting the government to set aside this legislation
Most of the increases in the employment of approximately 60 percent of Panamanian women were in mid-level occupations (technical, sales, and administrative support) and in lower-paid service occupations. Another 15 percent of Panamanian women work in management and professional positions. Panamanian men generally work in the managerial, professional, technical, sales, and administrative support positions. Approximately one-third of Panamanian men work in heavy labor, intermediate skill jobs such as construction, metal fabrication and operating heavy machinery. According to Nation Master, 20.8 percent of Panamanians work in agriculture, 18 percent in industry and 61.2 percent work in the service (commercial, tourism, trading) industry.
Panama's location and role in global trade make its success crucial to U.S. prosperity and national security. While Panama's economic growth rate is among the highest in the hemisphere, the country faces the challenge of making this growth more broad. Increasing pressure from drug trafficking and organized crime contributes to security problems that threaten Panamanian security, democratic institutions, and economic prosperity. Because of our shared history, cultural ties between both countries are strong.
American assistance aims to guarantee that Panama stays a secure and prosperous, country that continues to work with the United States as a major partner in Central America. The United States and Panama work together to advance common interests in improving citizen safety and strengthening governmental institutions. They cooperate in many ways, including combating illegal drug trafficking and other criminal activity and promoting economic, democratic, and social development through U.S. and international agencies. (Expat, 2014) (Nicol, 2012).
According to the U.S. Department of State, both countries have signed a bilateral investment treaty and a Trade Promotion Agreement. This agreement eliminates tariffs and other barriers for U.S. exports. This will also promote economic growth, help provide resolutions for trade or investment disagreements and grow trade between the two countries. U.S. exports to Panama include, but not limited to oil, machinery, aircraft, and agricultural products. Imports from Panama include fish and seafood, gold, cane sugar, bananas and pineapples. The finance/insurance and wholesale trade industry lead United States investment in Panama. Panamanian investment into the United States comes from the manufacturing and real estate businesses.
Politics
While the commercial interest in Panama remains high, the United States was instrumental in changing the government and power structure in Panama. Throughout the 20th century tensions over the canal caused a strain in U.S.- Panama diplomatic relations. Since the 1960’s, both countries saw a lengthy negotiation process in regards to the Panama Canal’s transfer. From 1982 until 1989, Panama was under a dictatorship led by Manuel Noriega. Relations diminished sharply under his rule. The United States launched Operation Just Cause in 1989, which the U.S. entered Panama and captured Noriega after he would not give up power following his lost election.
Panama modeled their political structure similar to the United Sates’ model. The nation operates in a “representative democratic republic.” Panama, like the United States, has an elected President who serves as the Head of State and the Head of Government. Government has executive, legislative, judicial and an electoral branch (which the United States does not have). The executive branch includes a President and two Vice Presidents whom appear on one single ballot for a 5 year, non-renewable term elected by popular vote. The Legislative branch contains a 72-member, one-house assembly elected from multiple districts. Panama’s judicial branch is organized under a nine-member Supreme Court established by law abiding by the Constitution of Panama. Lastly, the Electoral Branch oversees voter registration and all activities for political parties. Nonetheless, Panamanian citizens are required to vote but no penalty for those who abstain.
In the United States federal government there is a Panamanian presence throughout all departments and agencies since the United States handed over operations of the Panama Canal back to Panama in 1999. Panamanians in the United States are no longer limited to social Departments of Education, Health and Human Services, and Housing and Urban Development. They are also in the Commerce, Labor, Interior, the State Departments, and the Pentagon, as well as the White House. During the last two decades, Panamanian Americans and other Hispanics have been ambassadors to numerous Central and South American countries.
The United States collaborates with the Panamanian government with all political, economic, security and social development. Panama and the U.S. also fight against arms and drug trading. Panama’s laws also coincide with the United States in regards to counterterrorism, anti-drug trafficking, maritime laws and stolen vehicles. This country wants to ensure a safe, democratic nation and once again, the shared history promotes strong cultural ties between the two nations.
Education
The continuing United States influence translated into Panama’s educational system. Long ago, Panama’s school system became available only to those who were in upper, elite social class. By the 1930’s, schooling became more liberal under U.S. influence and the enrollment of children in elementary schools doubled. Nevertheless, numbers in high schools and universities exponentially increased in the mid 1980’s. According to ExpatFocus, Panama’s education budget is roughly 20% of the national spending. The United States only allocated 2.11 percent into education for FY 2013 and since FY 2003, the United States has a -29.61 percent decrease in educational spending. (Boccia). Panama’s educational structure constitutes a six-year enrollment in primary school (primaria) and three years attending middle school (premedia). Secondary schools range from grades ten through twelve. Five-year olds must attend kindergarten and must turn five by May in the current year. If not, the child must wait until the next academic year. A typical school day begins around 8 or 9 a.m. and finishes between two and three p.m., similar to the United States. The academic year runs from April until December, which stays divided into four terms. The government oversees all primary and middle schools and free to attend. No requirement exists for attending secondary schools; however, the option remains available for a fee. (AngloInfo, 2015) (Roberts, Taylor 2012). Public schools follow a similar curriculum for all subjects. This way, the country can easily monitor the standards of education. A number of bilingual schools now exist in areas where the foreign presence is high and these are schools teach languages such as French, Italian, Chinese, and Spanish. Most students require learning English in primary and middle school. Nevertheless, public school students usually require wearing a school uniform, unlike most American public schools. Primaria children wear navy blue pants or skirts with white shirts, while premedia students wear light blue shirts with navy blue pants or skirts. (AngloInfo, 2015) (Roberts, Taylor 2012) Panama and the United States share similarities educationally, but still face challenges to compete at a high level. According to World Bank, Panama’s literacy rate jumped from 89 percent to 94 percent from 1990-2010, while the United States remains at 99 percent, but that five-percent gap leaves America at number 22 and Panama down at 109. Panama’s reluctance to fund secondary education stands as another reason why this rate is low. Panama has some colleges and universities, but the rate of poverty make it difficult for most to afford higher education. Nevertheless, Panama gets credit for making school mandatory for all children at age five and adheres to a government-run curriculum, much like the United States. Panama’s education has respectable structure, but seems to lack fundamentals that the United States possesses.
Culture
My reasoning for choosing Panama stems from my girlfriend attending a wedding in Panama this upcoming July. Her old college roommate hails from there and she is familiar with some of the culture. She has shown me many beautiful pictures of the city, and the sights she has seen, including the Panama Canal. I have always been interested in the Panama Canal and hope to travel there myself. Nevertheless, I have always been interested in visiting and learning a Latin American country. Getting familiar with some Panamanian culture will make the trip more comfortable and gives me an upper hand on what to expect. The Panama business culture once again shares some similarities to American business. First with appearance, conservative business suits are appropriate for men. Panamanian executives in higher positions wear suits; others wear camisillas (a lightweight, open-necked shirt not tucked inside the trousers). Women should wear a dress or skirt and women should avoid wearing any kind of revealing clothing. In the United States, not all meetings are conducted in formal business attire, and sometimes very laid back depending on the type of business, and the location business is conducted. When greeting, Panamanians understand many North American gestures. Handshaking is customary while close friends embrace each other. Conversations typically begin with small talk before getting serious. Some good discussion topics are family, baseball, basketball, soccer, hobbies while avoiding politics, race, and the former U.S. occupied Canal Zone. Titles are important and should be included on business cards. You should address a person directly by using only their title. For example, a Ph.D or a physician is called Doctor, Teachers prefer the title Profesor, and lawyers are Abogado. Those who do not have professional titles go by Mr., Mrs., or Miss, plus their last names. In Spanish, these are Senor, Senora and Senorita, respectively. Business cards print and distribute in both Spanish and English and exists as normal practice when meeting an associate.
There is a still an old fashioned attitude towards women, but of chivalry rather than sexism. Women have reached levels of high management, but do not receive the same compensation as a man in their position. This issue continues here in the United States. Men still open doors and pull out chairs for women. This means that very few women have problems with sexual harassment. Any employee who suffers from this type of harassment can instantly terminate their contract and will receive severance pay from the company.
Panama’s working culture is a relaxed environment. Workplaces tend to be informal and there is a strong emphasis on building friendships. If you are working for a large company, you should expect social events on a regular basis. Senior managers attend dinner parties on a frequent basis. It is inappropriate for the guest to bring gifts, but it is customary for the host to distribute gifts. Decision making is a time consuming process in Panama. There is no rush to get things done quickly but Panamanians do expect punctuality. When at a dinner, the host normally sits at the end of the table and the guest of honor sits at the opposite end. Lastly, Panamanians never cancel appointments. If you make an appointment, you are expected to keep it. (Expat, 2014) One interesting difference between the two is the concept of gift giving. The United States frowns upon this, as it may appear to be a bribe. Companies provide a thank you note or a meal invitation; however, Panama’s hosts are more gracious with gifts, possibly due to less severe laws against corruption and bribery. Panama’s laid-back, patient decision-making structure is a contrast to how Americans operate with a rush to get things done. Nevertheless, both nations take the workplace seriously and treat their guests with respect and kindness.
Analysis & Conclusion American influence inserted itself into Panamanian culture.
While that may be true, Panama is still a proud, independent, traditional Latin American nation with a developing capital city and its chief moneymaker set to become even bigger. Panama has endured rough times in its history throughout the last 100 years but pulled through to become the second largest economy in Central America. Of course the Panama Canal attributes to most of the success, but the blue-collar citizens working in construction and agriculture drive the success as well. Education remains important for the present and future. Panama’s educational system is fine, but I feel young people miss valuable lessons to learn because public education stays funded only through middle school. Panama’s population lives below the poverty line, like most other Central American countries. Parents cannot afford to send their children to high school and college, so those options are only for the small upper class of Panama. Many families work in farming and agriculture and make little money. Public education should not stop at grade 9. If public education expanded into those years, there is a possibility the literacy rate increases. Nevertheless, credit the United States’ influence creating their school
structure. From my research, the Panamanian people are generally kind and accepting of others. Their business dealings promote comfortability and ease. As an American conducting business in a foreign nation, feeling relaxed in that setting is ideal. Building relationships means a lot to Panamanins where social life seeks to intertwine with business life. Panamanians have respect for themselves and for visitors to their nation. I am thrilled to visit Panama and eager to live their welcoming culture for several days.