By Lisa Leuthesser,
Stephen Harris, a reporter from the Overseas Property Professionals magazine contacted us recently for our opinion on the election of President Martinelli and its impact on Panama's economy in general and the real estate market in particular. Below are some of his questions and our answers:

Q. How do you think the election of President Martinelli will effect Panama’s standing in the business world? Are investors likely to see the country differently?
A. As you probably are aware, Pres. Martinelli is the owner of the largest supermarket chain in Panama. What you may not know is that the president, in his early career, worked at Wal-Mart and brought his training back to Panama with him and modeled his stores on many of the successful policies and methods employed by Wal-Mart that elevated the chain to the 'superstore' it is today. People told him he was crazy and he laughed all the way to the bank. What the Panamanian people overwhelmingly mandated when they elected Martinelli was a faith in the capitalistic, free-market model that the President brings to the table. This message is loud and clear here in Panama's business world but whether it reaches the world in general will depend on the actions taken in the coming months.

Q. What will it do for the property industry, particularly for those selling overseas, like yourself?
A.We are extremely optimistic about the president's influence on the property industry. We believe that he is capable of recognizing and removing many of the obstacles the property markets have met with, particularly in light of the former tourism minister's apparent vendetta against residential tourism that has been a traditional strong market for many years. We believe that the somewhat hostile attitude of the past administration toward foreign home buyers will disappear immediately.

Q. I’m not very familiar with Panamanian politics. Can you tell me what the President-elect has pledged to do to develop the economy and promote overseas investment?
A. This is the most difficult question to answer. Panamanian politics (and I'm no expert) seems to be more about personality and party philosophy. There is little discussion about actual programs, policies or proposed legal initiatives to change one thing or another. One specific thing that did echo throughout Martinelli's campaign was his commitment to end corruption. Of course, they all say that (in all countries). But the prevailing attitude seems to be that if anyone can keep guvvies hands out of the public pocket it is a man who is already tremendously wealthy himself. If he indeed leads by example and follows through it will go a long way toward improving the efficiency of doing business in Panama as well as providing a stronger basis for trust so critical to any overseas transaction.

Since the interview, I've had the chance to read up a bit more on Martinelli and to read his inaugural address. My respect for the man and my optimism has grown as I learn more about the President and his agenda.

If you'd like to read more about what's being written about the new president, The Latin Business Chronicle has a very upbeat take on Martinelli called "Panama: Investors are Bullish on Martinelli"

The Sovereign Society weighs in with their opinion that "New Panama President Challenges Latin American Left".

And finally, thanks to Eric Jackson at The Panama News for providing an English translation of the President's inaugural address.

Visit our website: http://www.buyingrealestateinpanama.com

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By Frederick DeWorken Management Consultant

Hi, I am bullish on Panama as well and I'd like to expand a bit on your answer to question #3 "Can you tell me what the President-elect has pledged to do to develop the economy and develop overseas investment" It is true that President Martinelli has committed to end corruption. But he has also pledged to invest 12 billion dollars, not including the 5.2 billion that is scheduled to go into the enlargement of the canal, into the Panamanian economy through infrastructure projects and investments.

The centerpiece of his plan is the new comprehensive transportation system based around a metro for the nation's capital city. His investment plans, also including roads, bridges, schools and airports for the country, have already garnered monetary and technical support of the IMF, the World Bank and the Japanese government.

Those are his plans for the short term. He also has plans to lay the foundation for long term development by reorganizing the educational system, building low cost housing for the working class and restructuring the national healthcare system.

His pledge to debureaucraticize the government has been followed by strong initial steps to streamline the tax code and governmental processes while also crusading to eliminate corruption.

Top this off with Mr. Martinelli's pledge to prioritize the US-Panama free trade agreement, among others with the EU, Ecuador, Canada and the Dominican Republic and it is easy to see the outlines of a focused effort to promote trade and increase capacity within the country as well as bring more foreign direct investment to Panama.

Hopefully, for Panamanians and those invested in the Panamanian market, these plans come through to fruition. The next five years should be very interesting indeed.