Panama Real Estate Investment and the Politics of the Panama Military
Remilitarization is a hot topic in some circles in Panama. Since the United Stated invaded and captured Manuel Noriega in 1989 Panama’s new government reduced its military. The argument is being made that Panama needs to reconstitute its military to be able to defend the Panama Canal and to deal with drug related terrorism. For the potential investor in Panama real estate how will this scenario play out and who will benefit?
Panama
Panama is a crossroads for world trade. The width of the Isthmus of Panama is 50 miles at the Panama Canal allowing an eight hour passage through the dredged approaches, locks, Culebra Cut and Lake Gatun. Forty percent of Latin American container shipping passes through the Panama Canal as well as an estimated 5% of world shipping.
A recent military exercise involving 40 countries played out the scenario of an attack on the Panama Canal related to narco-terrorism.
Panama Real Estate Investment
Panama real estate has been a good to great investment over the last ten years. A flood of North Americans have made Panama one of the most sought out locations for retirement in the world. Low prices, the US dollar as the local currency, a democratic government, large areas of unspoiled natural beauty and a first world infrastructure are an ongoing attraction. Panama makes residency easy and foreigners can purchase real estate in Panama.
Panama Military
From the time of a military coup in 1969 to the US invasion in 1989 Panama had two military dictators. The first was Omar Torrijos Herrera who instituted land reforms, promoted birth control and who negotiated the turnover of the Panama Canal from the US to Panama. Following Torrijos’ death in a plane crash Manuel Noriega ran Panama from 1983 to his ouster in a US invasion in 1989. Noriega was known to be on the US’ CIA payroll from the 1950’s. It is the general opinion in Panama that his ouster was for betraying his US masters.
After the ouster of Noriega Panama’s military was cut back dramatically and no further coups have been attempted.
Panama Politics
Currently the argument circulates that Panama needs to reconstitute its military in response to the threat of narco terrorism. The counter argument is that a strong military is a threat to Panamanian democracy, human rights, and prosperity.
Transshipment of drugs from Colombia through Central America to Mexico is a recurrent problem with arrests of entire networks making the Panama news. The Darien on the border with Colombia is a wild area and said to be a hiding place for Colombia anti government rebels who finance their operations with the sale of cocaine.
Meanwhile Panama’s economy is booming, politics are boisterous and the main issues are economic with inflation and the minimum wage major concerns. The average Panamanian does not seem especially concerned about narco terrorism, has money in his pocket and likes the idea that his recently purchased piece of Panama real estate will appreciate with Panama’s economic boom over the years.
Panama Real Estate Investment and the Politics of the Panama Military
Panama real estate is a great investment. The prices are low compared to the USA even with the drop is US prices. Panama’s position on a crossroads of world trade will continue to make Panama real estate more valuable for years to come. For many American expatriates the perceived loss of individual liberties associated with Homeland Security measures has made living and purchasing real estate in Panama doubly attractive.
Certainly if Panama politics move far to the right and the Panama military becomes a major factor again the perception of Panama as a place to invest in real estate may diminish. For now, however, Panama’s real estate is booming and the politics of the Panama military are a sideline concern.
If you are interested in investing in real estate in Panama and would like our read on the situation please feel free to contact us at ABPanama.
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