From: Christic Institute <christic@igc.apc.org>
Subject: panama social and economic rights
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Sat, 12 Sep 1992 03:38:54 GMT

/* Written  9:19 am  Sep 11, 1992 by codehuca in cdp:carnet.alerts */
/* ---------- "panama social and economic rights" ---------- */
COLON, PANAMA 
A 'DEVELOPMENT' MODEL THAT VIOLATES HUMAN RIGHTS

In the March-April, 1992 edition of the BRECHA we published an
article concerning 'Social, Economic and Cultural Rights in
Panama'. The article covered the situation in general. In this
edition we look more closely at the economic-social situation in
the port city of Colon.

Colon is the city on the Caribbean end of the Panama Canal. In
1991, the Free Trade Zone in Colon generated $7 billion worth of
business. It is the biggest Free Trade Zone in Latin America,
outdone only by Hong Kong. The Zone caters to 1,440 private
companies, mostly foreign owned. It has four airports, five sea
ports, and is linked to the Pan-American Highway and inter-ocean
train services. According to the reigning development models, it
is a perfect investment zone.

The vicious circle of development models and violations of
social, economic, cultural, political and civil rights - The
situation in Colon offers a case study of the inter-relatedness
between the further implementation of neo-liberal development
models in Central America. Over the last 3-4 years governments in
every country have been implementing (under direct pressure from
the first world and first-world controlled institutions like the
World Bank and the International Monetary Fund) 'austerity
packages' that result directly and indirectly in systemic
violations of the rights to adequate housing, health, work,
education and food of the poor sectors of every country in the
region.

It has clearly been shown that when governments implement
"austerity programs" it is the poor (and majority) sectors that
suffer the austerity, never the wealthy sectors. The
implementation of these "austerity" programs leads directly to
violations of rights such as the right to work, to housing, etc.

This in turn leads to political activity to protest the resultant
violations. In turn, this leads to state repression against the
persons and organizations protesting, violating many political
and civil rights.

Colon is a case study of how the neo-liberal theories are working
in practise today in Central America: creating rich islands in
seas of poverty, spiralling into violence - state violence and
social violence. 

Post U.S. invasion development - Between 1987 and the U.S.
invasion (December 20, 1992) Panama was the target of two years
of U.S. economic, commercial and financial sanctions. Since the
invasion, the Endara government (sworn into office at a U.S. army
base in the Canal Zone) has implemented an economic\development
model that follows closely neo-liberal guidelines that are
demanded by the World Bank and the International Monetary Fund. 

In 1991, according to 'economist' analisis, Colon increased its
trade by 31% and the economy grew by 9.3%, the highest rate in
Central America. And yet, the post invasion $420 million loan
package (referred to as "aid"), made by the U.S., 'has had no
significant impact ... on the underlying causes of political
instability'. This analisis was made by the General Accouting
Office, the investigative arm of the U.S. Congress. (Miami
Herald, 14/6/92)

That these loans have not addressed the underlying causes of
political instability (which are systemic violations of social,
economic and cultural rights violations) is not surprising. Of
the $420 million of loans, $352 million were used to cover debts
with international financial institutions, fund infrastructure
improvements and expand credit to business. The development model
being demanded by the U.S. is not one that serves to promote and
guarantee the basic human rights of the sectors of the Panamanian
population that live in conditions of poverty.

In Panama, over 50% of the population live in poverty - poverty
being systemic violations of numerous human rights, such as the
right to housing, health services, education, food, work, etc. In
Colon over 60% live in these conditions, over 60% being
unemployed. 3000 families in Colon do not have a permanent home
let alone adequate housing. Subsistence is the daily norm for
tens of thousands of Colon residents - a struggle for their daily
bread.  There is a lack of educational, health care and other
social services. These figures are the worst in recent Panamanian
history.

Historical racism - On top of, or added to these economic, social
and cultural rights violations, there is historic racial
discrimination in Panama. There are many cases wherein the owners
of the businesses in the free trade zone discriminate against the
local black population. In Panama there is a clear racial
division between the economic elites and political rulers, on the
one hand, and the majority of the poor in Panama, on the other,
who are descendents of African slaves and Indigenous peoples.
This racial discrimination is very much intertwined into the
cycle of human rights violations.

In June 1992, President Bush made a four hour visit to Panama.
His speech was cut short because U.S. trained Panamanian riot
police used excessive force, firing U.S. supplied tear gas, to
break up a legal demonstration against the presence of Bush in
Panama. Before being forced to leave the podium, Bush was able to
say that the 'U.S. community in Panama must take great
satisfaction in Panama's achievements'. (Miami Herald)

His speech contrasts with the reality of a city like Colon, which
is now home to some of the worst slums in Latin America. Sewage
spills out of back alleys. Rickety wood slat buildings house
thousands of residentes. Use of crack cocaine is rising.

Human rights violations and drug use - There is a direct link
between the systemic violation of the right to work, and an
increased local use of drugs. After graduating from or dropping
out of school tens of thousands of youth are unable to find work.
Years go by. Youth fall into despair and there is increasing drug
abuse - crack is readily available. The future generations of
Colon are condemned: no guarantee or respect for their human
rights, social and economic destitution.

There are suspicions that the free trade zone is also used for
the purposes of narco-trafficking, as import-exports regulations
are very lax. $186 million worth of cocaine was confiscated in
the zone this year.

Political and civil violence - There is little wonder that Colon
exploded into violent protests, beginning in April and May of
this year. When people are refused and denied their basic human
rights, they will protest. Three civic groups have been formed
recently to address the major claims of the population to work
and to housing: MODESCO (Movimiento de desempleados de Colon),
FRASCO (Frente Amplio de salvacion para Colon) and an
organization that works directly on the right to housing.

In early July, Maria Colombia Calonje Jurado, 31 year old mother
of three, was killed when police used real bullets during a
public demonstration organized by the three organizations.

The government has entered into negotiations with the strikers
and civic organisations representing the homeless and unemployed
in Colon. To date no solution has been reached.

There are "development" plans to link the Free Trade Zone to a
Tax-Free Port, which would mean that Panamanians could come and
shop in the area, supposedly creating more work opportunities.
However, there is controversy over this development proposal. The
Mayor of Colon, Alcibiades Gonzales, points out that this would
mean that the Free Port would cater only to wealthy investors and
does not necessarily mean development for the people of Colon.
Land speculation might force the locals to move, and "it doesn't
make sense to get rid of one ghetto for another" he says.

In early August, 1992, President Guillermo Endera vetoed a bill
to create a Tax-Free Port. It is alleged that he did so because
its creation would take business away from the Tax-Free Port at
the other end of the Canal, in Panama City, where the economic
ruling class of Panama have historical vested interests.

Conclusion - In this brief report CODEHUCA believes it is
important that this vicious circle of neo-liberal development
models, systemic violations of social, cultural and economic
rights, and the resultant crackdown on political and civil rights
be kept in mind. Any solution to this situation in Colon, a case
study for similar situations throughout Central America, will
only occur if work is done at all points of the vicious circle. 

This means that strategies are needed to pressure first world
governments and institutions to take responsability for the human
rights violations that result from the development models they
are imposing on the region.

Contact - Marjoleine and Grahame
Newsgroups: misc.activism.progressive