Panama owns canal, related
headaches
By BARBARA J. FRASER
Special to the National Catholic Reporter Panama
City
The camouflage-painted Humvees are gone, the former U.S. military
bases seem like ghost towns, and the city is sprinkled with billboards that
say, The canal is ours, and Thank you, Omar, a
reference to the late Gen. Omar Torrijos, who signed the Panama Canal treaties
with former President Jimmy Carter in 1977.
Even the beer is called Soberana -- sovereign, in Spanish. While
the rest of the world counted down the millennium on Dec. 31, an electronic
clock outside the Canal Authority headquarters flashed the seconds to noon,
when the Panama Canal officially passed from U.S. to Panamanian hands. Crowds
surged across police lines in jubilant celebration despite drenching rains.
But the perception that Panama is now free of U.S. influence takes
into account only what appears on the surface. The country has been under U.S.
tutelage virtually since it was sliced out of Colombia in 1903, and the legacy
is here to stay, from the unexploded ordnance and toxic waste littering
abandoned firing ranges to the enormous disparity in income between the richest
Panamanians and the poorest.
The unfortunate thing about Panama is that they consider us
a developed country, with a high gross domestic product, but they dont
realize that Panama is the third-worst country in Latin America in distribution
of wealth, Bishop Carlos María Ariz Bolea of Colón
said.
While we have exorbitant salaries in the canal area and
banking center. In the free zone (the duty-free commercial district in
Colón) we have rock-bottom wages.
The contrasts in Panama are visible. A visitors first
glimpse of Panama City takes in the shiny skyscrapers of the banking district.
But the poverty of San Miguelito, one of the citys fastest growing areas,
belies the facade, as does the hand-to-mouth existence of subsistence farmers
in rural parts of the country. For years, development has centered on the
transportation corridor between Panama City and Colón, as well as
Colóns duty-free zone.
For every dollar spent by the poorest 20 percent of Panamas
population, the richest 20 percent spend $30, according to the Institute of
National Economic Studies. A familys basic monthly food costs about $213,
but the minimum wage is only $230 a month.
At first glance, there appear to be two Panamas, but Ariz said
that is an oversimplification.
It isnt just a matter of capitalist Panama and poor
Panama, the bishop said. Theres also indigenous Panama and
Afro-Panama. At least these four elements are important, and they all have
their own world views.
With the U.S. dollar as the official currency (although Panama
mints its own coins) and U.S. business franchises in every shopping center, the
years of occupation of the Canal Zone have left their mark.
Although U.S. personnel were withdrawn from the former Canal Zone
over several years, many doubted that the United States would step out of
Panama forever. U.S. officials continued negotiations for a multilateral
anti-drug center in Panama, but the government of former President Ernesto
Pérez Balladares finally rejected the idea in 1998, and U.S. anti-drug
efforts moved to bases in Ecuador and the Netherlands Antilles.
Threat along the border
One part of the 1977 treaties, however, maintains an invisible
link between the countries. Added by the U.S. Congress after Panama had already
held a referendum on the treaties, this Neutrality Treaty allows the United
States to intervene unilaterally if the security of the canal is
endangered.
In the months before control of the canal reverted to Panama,
conservatives in Congress pointed to the fact that the Hong Kong-based
conglomerate Hutchison Whampoa has the port concessions at either end of the
waterway as a threat to the canals security. If the Neutrality Treaty is
ever invoked, however, it is likely to be because of a threat that lies closer
to home, along the border with Colombia, on the doorstep of that countrys
civil war.
As a result, attention has suddenly turned to the densely
forested, sparsely populated Darién province, once ignored by virtually
all outsiders except a handful of adventure tourists and naturalists.
Darién, which was once synonymous with backwardness
and the savage Indian, has become a strategic area, said
Jesús Almancia, director of the Panamanian Center of Studies and Social
Action (CEASPA) in Panama City. Weve finally fallen within the
concerns of the United States.
An estimated 900 Colombians have taken refuge across the border in
Panama, fleeing a struggle between the Revolutionary Armed Forces of Colombia
(FARC) and right-wing paramilitaries for control of the area. The first group
to arrive was sent home on a plane. In recent years, however, the flow has
become steadier.
In late January, more than 400 displaced Colombians fled
Juradó, in Colombia, for Jaqué on the Panamanian side of the
border.
The town was attacked by guerrillas and many soldiers died.
Now the paramilitaries are supposedly looking for people who helped the
guerrillas. So everyone has fled the paramilitary reprisals, said Bishop
Rómulo Emiliani of the Apostolic Vicariate of Darién.
Its a classic case: They are victims of the crossfire between the
guerrillas and the paramilitaries or the guerrillas and the army. They are
victims of an absurd, unjust war.
Because the Colombian conflict has not been declared a civil war,
people displaced by the violence are not considered refugees and are not
eligible for aid from international organizations such as the U.N. High
Commissioner for Refugees. The Catholic vicariate has a ministry to the
displaced, and Emiliani meets periodically with the Colombian bishops of the
border zone.
The border region is difficult to control, and observers say it
has long been porous. For years, FARC guerrillas crossed the border to buy
provisions, paying the Panamanian campesinos more for their products than any
other buyer.
In addition, because of the distance from Panama City and the
difficulty of travel, politically, socially and economically the [people
in the border area] relate more to Colombia than the rest of Panama,
Almancia said.
Recent years, however, have also brought incursions by
paramilitaries, who accuse Panamanians who sell provisions to FARC guerrillas
of being collaborators. In late 1999, paramilitaries entered three communities
near the border in the Kuna indigenous territory, burning one community, La
Bonga.
Almancia questions whether the timing of the attacks was entirely
coincidental. At a critical moment, less than three months before U.S.
withdrawal was complete, the incursions underscored a key point: The Panamanian
army was dismantled under agreements that followed the December 1989 U.S.
invasion of Panama, in which Gen. Manuel Noriega was ousted.
The $1.6-billion aid package for Colombia, currently being debated
in the U.S. Congress, includes several million dollars for security along the
Colombian-Panamanian border. While the aid is ostensibly to fight drug
trafficking, critics -- and even some Colombian military officers -- say that
it is impossible to separate anti-drug efforts from counterinsurgency
operations in Colombia.
While some critics ask how a country with no army can secure its
border against a potential threat from Colombia, police patrols have been
stepped up along the border, and there are checkpoints along the Pan-American
Highway in the province of Darién. Emiliani said the government must
ensure that the police are better-trained and better-equipped in order to
provide security.
We dont want them to involve us in the war, either on
the side of the guerrillas or the side of the army, he said. It
isnt our war. But little by little, theyve been getting us
involved. I have said publicly that in Darién there are informers,
people who are paid by the guerrillas and paramilitaries, people who provide
information, sell food, sell clothing, and may even sell weapons.
Emiliani, who has received threats, is often accompanied by
bodyguards as he travels around the province on pastoral visits.
Ironically, while politicians and security strategists focus on
Darien because of its border location, others worry about a threat to the
province from rampant development. In many ways, that threat is also a legacy
of nearly a century of U.S. presence.
Stanley Heckadon Moreno, of the Smithsonian Tropical Research
Institute in Panama City, called Darién one of the great
treasure-houses of biodiversity in the Americas. It will remain
so, he adds, as long as development as its known doesnt
get there, because its been a very destructive type of
development.
Cutting down the rain forest
When the Pan-American Highway was extended to Yaviza in the late
1970s, it opened the province to a wave of homesteaders who migrated from other
parts of the country in search of land to farm. Using traditional
slash-and-burn methods, they cleared large swaths of rain forest. The highway,
still a dirt and gravel road, is lined with small communities, cattle ranches
and plantations of teak, a non-native tree with a high export value that is
grown in reforestation projects.
The Inter-American Development Bank has approved financing for a
six-year, $70.4-million project that includes paving the unpaved segment of
highway. Bank president Enrique V. Iglesias has called the project a road
to the development of the region, protection of its ecology, rational
exploitation of its resources and respect for its ethnic communities, and
said it is the most participatory project undertaken to date by the
bank.
Emiliani supports the project as a way of improving the livelihood
of the regions residents. But other observers say large-scale development
for tourism and agroindustry is sure to follow, with an enormous impact on the
areas campesino, Afro-Panamanian and Emberá and Wounaan indigenous
communities.
And the effect on the remaining rain forest could be devastating.
Although 550,000 hectares -- almost one-third of the area of the
province -- is a national park, there is gold and valuable lumber in the area,
and critics say Panamas parks are not entirely protected against
exploitation of natural resources.
The Darién province is also part of the Mesoamerican
Biological Corridor, a series of protected areas ranging from Mexico to
Colombia, and clearing would leave biogeographical islands,
Heckadon said. You will have little isolated spots of forest, and a lot
more species will vanish. Because they need longer territories, theyll
disappear. Some people say thats the cost of progress. For others,
its a tragedy.
Unregulated development
The costs of unregulated development can already been seen around
Panama City, where the bay is seriously polluted and new highways have slashed
through the metropolitan park and low-income neighborhoods and cut off a
fishing communitys access to the bay.
President Mireya Moscoso, who took office in September, has
pledged greater spending on social programs, but the keystone of her economic
program is to pay down Panamas enormous debt and attract developers to
the former U.S. properties. Investment is expected to lean heavily toward
tourism. The former site of the infamous School of the Americas has already
become a five-star hotel owned by the Spanish Meliá chain -- and
transportation.
The World Bank has valued the infrastructure of the former U.S.
military bases at $4 billion. The airport and cargo facilities at the former
Howard Air Force Base alone are expected to bring an investment of at least
$300 million, and development, which has largely been confined to the eastern
side of the canal, is expected to spill over to the west, where many of the
bases are located.
This could help relieve population pressure on the countrys
two principal urban areas, Panama City and Colón, which lie at opposite
ends of the canal. But it will also threaten the fragile ecosystem of the canal
watershed, and force the issue of the cleanup of unexploded shells and mines
that still litter former artillery ranges in what used to be the Canal
Zone.
The canal treaties call for the United States to clean up the
ranges insofar as may be practicable, a phrase that is interpreted
differently by the two countries. As long as it appeared that the multilateral
anti-drug center would be based in Panama, little or no cleanup effort was
made, because it was expected that the ranges would continue to be military
property.
Once the drug center was scrapped, however, cleanup became an
important issue. Some of the areas still littered with unexploded ordnance are
in zones slated for tourism development. Twenty-one Panamanians have been
killed and many injured by accidental explosions on the ranges.
U.S. officials contend that adequate technology does not exist,
and that cleanup would be too costly and result in deforestation of the
canals sensitive watershed. Marco Ameglio, president of the Panamanian
Congress Foreign Relations Commission, has said that if the United States
does not comply with the treaty, Panama will sue for damages in an
international forum.
Another nagging question is that of chemical weapons tested by the
United States during World War II and through the 1960s and 70s.There is
evidence that the U.S. military tested or stored sarin nerve gas, the powerful
neurotoxin VX gas, mustard gas and Agent Orange in Panama, but U.S. officials
have not provided information about storage sites.
The canal itself poses another headache for the Panamanian
government. A mainstay of the economy, the waterway pumps $500 million a year
into the economy. But the locks are now too small for some large ships, and the
pressure is on to build a third, larger set of locks.
Aside from the cost, estimated at $8 billion, new locks would
create another environmental strain. The present gravity system sends 52
million gallons of fresh water through the locks and out to sea with every ship
that passes through the canal.
36 ships a day
When the canal started business back in 1914, two ships [a
day] used the canal. Now its 36. So you multiply 36 times 52 million
gallons, 365 days a year. Its an astronomical quantity of water,
Heckadon says.
The drought in 1996-97, when Panama was affected by the El
Niño current, nearly forced the government to ration city drinking water
or reduce the draft of ships passing through the canal.
Whether or not new locks are built, the country will need to
increase its water supply. The mostly likely solution is a plan to expand the
canals 3,300-square-kilometer watershed through an additional system of
lakes and dams that would flood a large tract in the central province of
Coclé. For the Catholic diocese of Colón, the proposed lakes have
become a major human rights issue. Government officials say about 9,000 people
would be displaced, but Colón Bishop Ariz says the real number is
probably twice that because many communities that would be affected do not even
appear on official maps.
While the government moves ahead with development plans, and most
Panamanians say they are glad their country is sovereign territory, opinion
polls reflect mixed feelings about the U.S. withdrawal. Some question whether
Panama will be able manage its affairs, maintain security and keep corruption
under control.
Bishop Emiliani of Darién says the country needs to change
its mentality. Panama has had a rich houseguest -- very orderly, very
disciplined, very efficient -- the Americans in the Canal Zone. A state within
a state. So weve grown up with a great inferiority complex, which we must
break. Panama has to understand that although its a small country, it can
take charge of its future, and we want to demonstrate this now that we are a
sovereign nation.
National Catholic Reporter, May 5,
2000
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