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Panama’s Darien is the province on its Eastern border with Columbia. The Darien is largely untouched tropical rain forest with scattered population centers. The Darien is popular for ecotourism and is the home of a large national park. A recent concern in the Darien is the alleged presence of rebels from Colombia fleeing a losing fight with Colombia’s Special Forces.

La Prensa, Panama reports that Fronts and 57 and 58 of Fuerzas Armadas Revolucionarias de Colombia (FARC) have crossed the border from Colombia and are operating in the Darien. This report comes on the heels of stories of success such as the rescues of hostages held by the rebels.

In general the government has not had a lot to say about problems in the Darien with rebels although there have been arrests related to drugs. A common assumption is that FARC elements what have fled to Panama may well be doing what they did in Colombia to raise money. They will sell drugs, kidnap for ransom, and extort money. Although the rebellion in Colombia may have had legitimate social reason forty years ago much of it seems to have degenerated into warlords hold feudal reign over parts of the jungle with local as their only reason for existence.

Will this problem spread to Panama?

The short and final answer is no. The rebellion started in Colombia due to social causes that do not exist to the same degree in the Panama of today. Panama has made great strides in reducing poverty, largely by attracting foreign investment. The military dictatorships of Panama are the thing of the past. Panama has a boisterous political system governed in the end by the ballot. Labor strikes are common and the press is free. That is to say, there is no base of support for a rebellion in Panama.

Panama Real Estate Investment

Regarding investment in real estate in Panama the Darien is a long ways away from Panama City. It may be a short plane trip but there is a lot of jungle in between. It is hard to imagine someone in jungle fatigues while walking through Panama’s bancaria which has the world thickest collection of banks next to Zurich.

Panama has had a ten year run of rising real estate values. Investment in housing as well as commercial real estate has paid great dividends. Panama’s investment in its infrastructure with projects like the Panama Canal Expansion not only creates jobs and prosperity but builds the groundwork for further prosperity.

Although Panama disbanded its army Panama has well trained and competent police and National Guard who deal effectively with drug smuggling and other crime in Panama. Panama has no interest in seeing a return of military dictatorship. Investment in business in real estate in Panama is likely to do well for years to come and will likely do better as the world deal with credit problems beyond Panama’s borders.

Much of Panama’s investment capital is in Panama because of the uniqueness of Panama’s banking laws, its private interest foundations, and its bearer share corporations. These institutions attract and retain the capital needed for continuing investment in Panama’s business and real estate future.

If you are interested in Panama real estate investment come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and do business throughout Panama.