Worst Elements Of Doing Biz in Panama
Panama City Panama: a Business Mecca?
There are plenty of great things about living and working in Panama. I’ve covered those many positives in plenty of past articles. This post deals with the more annoying challenges of living and doing business in Panama City, Panama. So, without further adieu, the list:
- Talent – Good people are always hard to find, but in Panama City, hiring is BRUTAL. Most of the quality talent in the country has been geared toward Canal related industries such as: maritime law, shipping, merchandising and banking. Even if you are operating a business in one of the “talent rich” sectors, you’ll be hard pressed to fill openings without some major headhunting.
- Legal Maze – Laws in Panama are complex and it seems, ever changing. You’ll need a lawyer for seemingly mundane things. Finding a good lawyer merits another article entirely. If you know one, please share!
- Taxes – Panama is NOT a tax haven if you do business IN Panama. In fact, it’s quite punitive if you choose to obey the laws completely, which few seem to do.
- Labor Laws – The laws grossly over compensate for the past sins of fruit and other mega corps that raped and pillages in latin america. Thanks a lot United Fruit Co!
- Supplier Talent, Service – Even if you manage to attract, train and maintain quality talent at your organization, chances are you’re going to need to work with other businesses who may not be up to your standards. Finding quality suppliers and supporting services can be a nightmare.
- Juega Vivo Culture – If you are foreign, there is an element in Panama which will exploit you for being an outsider. It’s very unfortunate, as the vast majority of Panamanians are helpful and kind folks, but there are some that are, well…not. Caveat Emptor.
- A Different Concept Of Time – All those things you read about in 8th grade Spanish and civics classes regarding Latin America having a different concept of time were TRUE. You just need to grin and bear it, or you’ll go insane. This is probably the one thing that weeds our foreigners more than any other. If you can adapt, you’ll survive. If you cannot live without Swiss timing, you’ll have a heart attack.
I realize that this may seem like a discouraging list. The good news is that few first world business folks have that patience for these frustrations, so competition in most areas is very limited. As they say, “In the land of the blind, the one eyed man is king!”
| Written by Casey Halloran |  |
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Filed under: Living & Retirement on March 25th, 2009
I’d like to add to this list an overarching theme of ‘common sense’ or perhaps more acutely a lack thereof. So many times I find myself asking…”why wouldn’t you just do this?” or “is there a reason we’re not doing that?” This aspect may fall comfortably into your #1 – Talent. However, beyond just lacking talented or skillful workers, there seems to me to be a lack of independence or ‘think on your own’ matra.
Some say this originated with Panama’s history of relying on outsiders, others simply point to Panama’s greenness to so many new industries. Either way, the inability to apply common sense and practice motivation is a really frustrating facet of doing business in Panama. For me, that’s why there are so few “Panama born and raised entrepreneurs” but rather those who have been exposed to life outside of this Republic.
So does this mean that Americans that are college educated and bilingual have a good chance of getting a solid job that pays some what well?
I hope so….I am not bilingual….but it would be cool to get a job when I go:)
As far as getting a good job in Panama. It is tough for foreigners because there are strong nationalistic slash nepotistic forces at work. Basically if there is a Panamanian or someones relative that can do a job, they will get it before you do, be prepared!
You have got the Juega Vivo Culture concept wrong or lacking to say the least. I am Panamanian but I have been living in the US for a couple of months now so I know the concept thoroughly. Its actually taking advantage of any situtation or person to the maximum extent this being ethically or not. Most of the times its unethical but its an inherent part of panamaniam way of living.
Please clarify for our readers exactly how you define Juega Vivo Culture. Is it good? Is it bad? Have you tried it out yet in the U.S.?
I tried in the US twice and these are the results I got:
- A ticket for an illegal U-turn
- Got kicked out of the classroom during an exam
I realized it doesnt work outside of Panama very well
i agree smarty pants alot of what u said is spot on
Smarty Pants, I’m glad to know that I’m not alone in thinking that. My latest employee went to great lengths to stress he was not your “average” Panamanian employee. To my great disappointment I’ve found that he is very similar to the average! And this is a guy who was born and raised in Peru to panamanian parents and educated in the states.
But other than staffing problems I think that I’ve been pretty lucky in that I have never really encountered any problems in running a business. Lots of frustration, yes! But nothing that hasn’t been relatively easily overcome.