President Varela and Chinese leader Xi
The Chinese group Shanghai Gorgeous announced last year the realization of projects for about $1.8 billion in the province of Colon, both in the port logistics sector and in the production of energy based on liquefied natural gas. The consortium expects to inaugurate, in 2020, a plant of 441 megawatts of electricity generation. But this is not the only investment of the Asian country in similar projects. Shanghai Electric, a Chinese state company, is part of the group of investors in NG Power natural gas, also located in Colón. Panama needs to attract foreign investments that help develop the country, however, depending on the government of a foreign country controlling them can lead to unknown costs and unnecessary political loyalties. The credit rating of Panama and a good legal and institutional framework of transparency and security for investments must be more than enough to attract the good capital that the country needs. Miraculous shortcuts and projects always bring headaches. Prudence and transparency are better alternatives to have a solid economy.-LA PRENSA. Sep. 18.
To understand mega-projects and the financing behind them, read ¨Confessions of an Economic Hitman¨ by John Perkins. The US was the master of the craft but seems like China is taking over. Bottom Line Up Front: Sink Third World countries into perpetual debt by offering loans for questionable and usually unsustainable mega-projects. Hydro dams, huge mining projects, ports, power plants, ¨belts and roads¨, etc, etc. The debt hangs like an anchor round the necks of the peons and the corrupt government cronies get rich.