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Panama is handing out free light bulbs. In an effort to reduce electric consumption and electric costs Panama started delivering ten energy efficient light bulbs to each household. The deliveries started in November although the project has been in the works for almost two years. There are two issues flying around as the project starts, safety and cost.

Light Bulb Safety

As bulb delivery starts questions have arisen in Panama about the safety of the bulbs in question. A fire department pointed out that there have been five recent house fires caused by the type of bulb in question. Other alleged health risks are toxicity from mercury in the bulbs if they break and worsening of skin conditions when the bulbs are in use. A review of outside sources seems to diminish the health and safety concerns but the new energy efficient bulbs contain mercury so disposal might be a problem.

Light Bulb Cost and Who Panama Bought Light Bulbs From

The first issue has environmentalists concerned. The second issue seems to have political overtones. Panama bought its light bulbs from Cuba and may have paid more than if they had purchased directly from the manufacturer in China.

The November 8, 2008 lead article in La Estrella, Panama reads, “Por qué Cuba y no China?” That translates, “Why Cuba and not China?

Light Bulb Project

Panama has had a run of inflation in the last few years that has threatened its gains in reducing poverty over the last decade or more. Electric costs have skyrocketed to the point where Panama’s government had to subsidize household electric bills in 2008. Panama has already replaced incandescent bulbs in government buildings throughout the country with the new energy efficient florescent bulbs. Use of the new energy efficient bulbs is considered such a good idea that countries such as England will only allow sales of the new bulbs in a couple of years.

Because of the energy savings for a country that does not produce any of its own oil Panama decided to purchase and distribute ten energy efficient bulbs per household. The question raised in the La Estrella article is why Panama used Cuba as a middle man in purchasing the light bulbs when, apparently, they could have been purchased directly from the Chinese manufacturer at lower cost.

According to La Estrella the bulbs bought through Cuba cost $1.43 each delivered to Panama. A survey of Panamanian business people who import from China is a the type of bulb in question can be bought from the Chinese manufacturer and delivered to Panama for $0.63 each including import fees and all other costs to an importer.

An additional twist to the story is that Venezuela purchased energy efficient light bulbs and donated them to Cuba for installation in homes starting in 2006. La Estrella asked the Venezuelan ambassador to Panama if perhaps come of the bulbs that Venezuela gave to Cuba have ended up being sold to Panama. The Venezuelan ambassador categorically denied this assertion.

A number of Panama’s politicians have commented that the purchase of the light bulbs needs to be investigated. According to La Estrella the man in charge of purchasing the light bulbs did not want to talk to the newspaper.

Panama has come a long way since its years of military dictatorship. Newspapers are free to bring up issues such as, apparently, overpriced light bulbs without fear. This free exchange of ideas, and complaints, is healthy as Panama’s economy grows and prospers.