(Source) By Steven Dudley McCLATCHY NEWSPAPERS: PANAMA CITY, Panama - Just days before a historic referendum Sunday on a $5 billion Panama Canal expansion to accommodate larger and more ships, polls show that a majority of Panamanians are poised to vote “yes.” Two-thirds of Panamanians support expanding the Panama Canal, according to polls earlier this month by Dichter & Niera and CID Gallup. This is up from just over half of respondents who said “yes” in August. Approval would allow the government to pursue the estimated $5 billion project that proponents argue is necessary for the long-term development and competitiveness of the country. “It would be a failure of the country” if Panama voted against the expansion, President Martin Torrijos said recently. It’s little surprise the canal referendum has caused a stir. The thin body of water connecting two oceans with a complicated series of locks and lifts has always been a source of pride and struggle for this country of more than 3 million people. Thousands died building it. Dozens more perished in the struggle to win control of the canal from the United States. Now, while most Panamanians are for the expansion, many wonder who the expansion will benefit.
“This is a huge fraud,” said Miguel Antonio Bernal, a professor of constitutional law and longtime leftist activist. “This is for the business and banks, and most of all, for the establishment of this country.” With at least 100 so-called “Post-Panamax” ships — too wide to fit through the current locks — coming online, the canal is becoming outdated and overcrowded. Backups of ships are already pushing customers toward other routes, and neighboring countries are talking about alternatives.
The expansion project would create a new set of locks that would be wide enough to accommodate the “Post-Panamax” ships and ease the backup, most likely running parallel to the existing ones. Polls indicate that most Panamanians accept that they need the expansion to keep up with a global trade boom between Latin America and Asia. While China sends goods to this region, Venezuela and Brazil are increasing their shipments to the Far East.
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Torrijos and the Panama Canal Authority, which has run the canal since the United States handed it over on Dec. 31, 1999, have made sure people saw and heard their point of view. As the vote has drawn near, the canal authority has increased the number of workshops with community organizations, unions and citizens’ groups to argue in favor of the expansion. They’ve also promised that money from the canal will be put toward social programs.
But some opposition parties, unions and advocacy groups are asking for more time and more discussion about how best to ensure that canal expansion benefits all Panamanians. “Regardless of who wins, the country will lose,” said Juan Carlos Varela, president of the Panamenista opposition party. “It’s something that should unite our country. Instead, it’s dividing us.”
Critics say the objections may dog the project, even if it passes with a strong mandate. Panama has gone through a minieconomic boom in recent years with high-tech and banking operations moving in for its relatively stable economic and political climate, low costs and solid infrastructure. Yet, close to half of Panama’s population lives in poverty and corruption remains endemic. The canal is one of the country’s greatest sources of income but is not a major source of jobs. And many Panamanians seem to have little confidence that expanding the canal will mean they will benefit.
In a poll by Dichter & Niera last month, nearly a quarter of those who would vote “no” said they didn’t have confidence in the government’s ability to administer the project. What’s more, 88 percent of those polled said Congress is corrupt, and nearly half say the president is “not very efficient.” Behind this split personality is a host of doubts surrounding the project. Panamanians wonder how much the expansion will cost. Government estimates say $5 billion, but critics say it will be closer to $10 billion.
Along with this is the question of who will shoulder these costs. The government has mentioned various ways of paying for the expansion, including increased tolls and bond issuances, and avoided talk of the kind of international debt that has traditionally plagued the region.
“We think the expansion will cost a lot more than they say it will, and they will have to look for loans,” said Gabriel Castillo, a leader of the National Confederation of Independent Unions, one of Panama’s most combative labor federations. “Who will pay for these loans? Panamanians.”
SOURCE: Don Winner @ Panama-guide.com
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Source: VIP Panama