1513. Vasculunas de Balboa, Spanish conquistador, set out on an expedition to find wealthy lands,
rumored to be on the borders of another sea.
3 centuries later, the site Balboa eventually discovered has been long established as the
shortest point between the Pacific and the Caribbean. This 50-mile stretch, now a vital
artery for world trade, is known as the Panama Canal. As a small country, Panama's success
is derived from being an export-led economy. Close to 15,000 ships passed through the canal
locks yearly, enabling unparalleled opportunities for both Panama and the global market.
But as the demands of world trade expand, the canal must expand along with it.
The construction of the canal expansion will have two very important effects. During the
construction period, the next eight years, the expenditure of $5 billion adds to the expansion
of the economy. Secondly, and more importantly, once the canal expansion is finished, the growth
of traffic through the canal will keep expanding more dynamically in volume and in the size of ships,
and that will stimulate the growth around the canal. It will pose a unique opportunity
for the country, and especially as an attraction to Panama City and the city of Cologne,
but each other has to balance the development of the country as I call it.
As I said, a tremendous opportunity, but a very big challenge.
So
the largest challenge lies in the equal distribution of wealth.
Income from the Panama Canal makes the country one of the most wealthy in Latin America.
However, few people are actually seeing that income.
A study put out by the World Bank shows that the disparity between the rich and the poor
in Panama is one of the widest in the world.
The economy is growing, its economy is growing, last year the economy grew to 11.7 percent.
For that reason, we should be fine, but that's not the case.
There is a situation that does not reflect reality, and that is that that growth has
hounded the gap between the rich and the poor.
