2014 Panama Post Presidential Elections Q&A

INTER AMERICAN DIALOGUE

1211 Connecticut Avenue, NW

Washington, D.C. 20036

LATIN AMERICA ADVISOR Newsletter

Tuesday, May 6, 2014

QUESTION:

Juan Carlos Varela, Panama's vice president, was elected to the country's presidency on Sunday, defeating President Ricardo Martinelli's preferred candidate, José Domingo Arias, and former Panama City Mayor Juan Carlos Navarro. What factors propelled Varela to victory? What will be Varela's biggest challenges after taking office July 1? What does his election mean for businesses in Panama?

JAIME FIGUEROA NAVARRO:

Several factors influenced the elections:  First, Martinelli´s stubborn selection of his wife as the vice presidential candidate on the government´s ticket.  Second, the grossly divisive lengthy and negative campaign, including the obscene spending and overcharged marketing that turned people off.  Third, the erosion of institutions that placed all the power in the Presidency, a la Berlusconi.  Finally, Varela himself, who handled false accusations and presented himself as a decent man for all the people and not just for selected interest groups, an insider responsible for major social legislation prior to being treacherously fired. 

One could sense it at the polls, the underdog was creeping up during the final weeks and there was no stopping the tide.  PRD and CD parties’ associates running frantically, offering free transport for all on Election Day.  At the end, at the moment of truth, the people, myself included, voted enthusiastically for Varela as the next President. 

Varela´s biggest challenges after taking office are regaining institutionalism, placing an emphasis on all the social programs in his campaign plan and halting corruption while appointing able-bodied professionals to key posts in lieu of politicians.

Given Varela´s excellent ties with the business sector and the international arena as a result of his tenure as Panama´s Foreign Minister, it´s business as usual for the private sector where the new government will continue to encourage foreign investments and continued solid financial growth.

Jaime Figueroa Navarro is Secretary of Internal Affairs and member of the Board of Directors of the Panama Business Executives Association