THE IMPACT OF THE PANAMA CANAL EXPANSION PROJECT ON THE
ECONOMIC RELATIONSHIP BETWEEN PANAMA AND TAIWAN
學生: ELVINS KELSINS SANTANDER CEDENO
學號: 600330426
教授: Ren-YowHuang 黃任佑
Tamkang University 淡江大學
Graduate Institute of International Affairs and Strategic Studies, Master’s Program
國際事務與戰略研究所, 碩士班
Thesis Proposal 論文建議
2012
1
Background Introduction
Panama in the heart of Central America was certainly a country of enriched by
many natural resources, Throughout its history this small country became a real trade
center famous for it regional financial center, its free zone market and of course the
Panama canal
The arrival of the first Chinese immigrants to Panama was produced in the mid
1850’s specifically coming from the province of Canton, in order to participate in the
construction of the first railway in Panama. According to Panamanian Historianchinese
Origen Juan Tang in his book Chinese footprints in Panama (Huellas Chinas en
Panama)1
Economic development and cultural and social contribution of the Chinese
community in Panama has been developed for over 150 years and today this community
almost reached the figure of more than 200,000 in a country with a population of 3.5
million people
Althoughgovernment by kuomintang politic party of the move from mainland
china after they failed the civil war against Chinese communist party the Republic of
China in 1949 that brought the rise of Taiwan, Panama continued its diplomatic relations
and maintaining a historical development of economic, cultural and social trends.
Today Panama is a country on the rise, its economy is one of the largest in Latin
America and that is why this year ECLAC2 reflected in its annual report that leads an
economic growth in the region with 8% above countries such as Peru that would register
for this year (2012) a growth in GDP of 5.7%, Bolivia with 5.2%, Costa Rica and
Venezuela of 5%, Chile with 4.9%, Mexico with 4%, Argentina with 3.5% and Brazil
with 2.7%.3
1http://www.rlp.com.ni/noticias/11816/documentan-llegada-de-los-chinos-a-panama-hace-150-
anos.
2Economic commission for latin America (ECLAC) The spanish acronym is CEPAL.
3http://www.prensa.com/uhora/economia/panama-encabeza-la-proyeccion-de-crecimientoeconomico-regional-cepal/100420
2
This positive economic impact is made possible because panama currently
investing heavily in the country for example, the construction of the first subway, the
modernization of the bus system, large investments in the construction sector but mainly,
the most ambitious project of all times, the modernization of the Panama Canal through
the construction of the extension and third set of locks.
The modernization of the Panama Canal comes along with significant challenges
which to build and give the world for decades a service that meets the demands of
globalization and can help contribute in the economic development of other countries.
Taiwan currently maintains a free trade agreement with Panama and in turn is a
major user of the Panama Canal. We can say that the canal expansion will serve many
major Asian shipping companies including the capital of Taiwan to develop further and
thus have a sustainable economic development in the coming decades.
Once the expansion project is set, we would see how much it can benefit both
countries and what type of economic technique will be utilized by implementing
analytical methods such as SWOT/PEST that can lead us to have successful results for
both countries in the next 20 years.
i.
Research motives
For many years, Panama has been a world center of commercial exchange,
cultural and economic well so is known as the center of the world, heart of the universe
and the crucible country race.
Taiwanese companies and producers and Panamanian businessmen presently
benefit from a free trade agreement currently other Asian countries did not have this
advantage and can help much to improve the economy of both countries through trade.
Canal expansion plays a very important role in the national economy of Panama,
and it is no secret that Taiwanese-funded enterprises will benefit as this megaproject
starts working for the benefit of the world.
3
The social economic and cultural impact of both countries would be subject to
study as long as they continue to maintain stable diplomatic relations, and there is no
unbalance in the world economy over the next 20 years.
ii.
Research Objectives
1.Analyze the presence of the Chinese people in Panama since its inception and also
study their economic contributions through social cultural history and what their
contributions were in the Panama Canal
2. Analyze the expansion project of the Panama Canal since its inception.
3. Studying and understanding the behavior of economic and political relations between
Panama and Taiwan multinational investments from maritime companies in Panama,
especially Evergreen Group and its implications.
4. Analyze the economic, social and political impact between Panama and Taiwan once
the Panama Canal expansion project has been finished in the next 20 years.
Literature review
Category 1:
-Title: Antecedents of Chinese man in Panama and its history until today.
-Chinese Footprints in Panama, 150 years of presence, John Tam, printed in
Panama by Unique Printers, 2006. (Huellas Chinas en Panamà, 150 años de Historia)
This book written by the Chinese-Panamanian Juan Tam also takes us into the
origins of the Chinese man to Panama over 150 years ago when they reached a
population of 705 that helped start work on the first Panama Railroad.
It is very important to recognize that its origins to the Chinese presence in Panama
was not easy for these people, who faced difficult situations such as the clash of culture
and traditions, but their contribution to the Panamanian economy and the development of
4
this country is reflected in each of the most important passages that have left this ethnic
group in Panama
- Why, When and How didtheChinnese people arrive in Panamà, Berta Alicia
Cheng P, poyectos editorials, Panamá, 2010. (Porque, Como y Cuandollegaron los
Chinos a Panamà)
In this book of the well known and famous Chinese-Panamanian writer Berta
Alicia Chen analyzing how the Chinese community in Panama and what were their
contributions in building the Panama Canal since its inception and the people and
companies who contributed to this giant work early last century that remains as a truly
wonderful work of engineering.
The Chinese people were always characterized by working in the fields and small
shops (small shops selling food or items) reason why they were helping to feed the large
number of employees who were working on the building of the canal.
The Chinese people were fully trust by everyone at that time according to the author who
wrote that the black employees gave their money to the Chinese people that owned small
shops near the canal construction to save money4
-Centenary of the Republic of Panama: Economic and institutional history.by
Nicolas Ardito Barletta, Ernesto Ayala Molina, L. ArtaviaLoríaArtavia edited by
San Jose, C.R. year 2005
Hundred years of economic evolution lived panama, dramatic transformation in
all aspects nacional activity5 we can say that this book contains all the aspect happened in
Panama's economic in the early years and last years of the previous century and what
4Why,
When and How the Chinnese people arrive in Panamà, Berta Alicia Cheng P, poyectos
editorials, Panamá, 2010. (Porque, Como y Cuando llegaron los Chinos a Panamà) pag 42. (Como
cuando y porque llegaron los chinos a Panamá)
5Centenary of the Republic of Panama: Economic and institutional history. by Nicolas Ardito Barletta,
Ernesto Ayala Molina, L. Artavia Loría Artavia edited by San Jose, C.R. year 2005 pg 3.
5
were the engines of development to the panama we can see now, a country in
development.
-The history of Panama The Greenwood histories of the modern nations, Robert C.
Harding, printed united state of America year 2006.
The author gives us a direct approach to the history of Panama but we want to
analyze how the Panama Canal was done and also how did the democracy won after the
fall of dictator Manuel Antonio Noriega and at the same time see how panama emerged
from dictatorship and an economic crisis that left the country in ruins.
It is estimated that the country needed to rebuild around $ 2 billion, the United
States after having invaded the country pledged to help end country6 but were the same
Panamanians who raised this country together with investment and democracy and the
successor governments followed by the regime of dictatorship.
Analysis y considerations:
It is very important to note that the results we found through this research we
needed to know the history of Panama and the Chinese man in this nation since its
inception and analyze the economic relations that have existed between the two countries.
I agree with the points made by both authors, in which they made research
through years and managed to write about the development of this class in our country
and what did they provided to the Economic Development and social culture of the
Republic of Panama.
Category 2.
Title: The Panama Canal and the Canal Expansion project.
-Master Plan canal expansion project 2005 2025, Author Panama Canal Authority.
Edited by ACP Year 2006.
6The
history of Panama The Greenwood histories of the modern nations, Robert C. Harding, printed
united state of America year 2006. Pg 120
6
The Panama Canal through the ACP 7 produced the only document that was
released on the 7th of June 2006 in order to announce the plan to expand the canal and
their long-term goals.
This document was prepared to take many years of research and it contains
specific and accurate details of the expansion project from the beginning, and how it
should develop.
-The Panama Canal, A study in international law and diplomacy. Harmodio Arias,
Honolulu Hawaii year 2000.
Before analyzing the importance of the Canal expansion is very important to
know the factors and reason of why the panama canal receives international status. That's
why in this important book Panameniam,Harmodio Arias speaks a little more about the
U.S. presence in the canal and we analyze how much control had the United States and
may have had control over the Panama Canal.
The author discusses the importance of inter-ocean canal in all nations of the
world and especially in the maritime sector, and also shows each of the treaties and
conventions that were used to get to build this work.
-The united states and the Americas, Panama and the united State. The forced
alliance, MichaellConnifprinted united state of America second. edition 2001.
Is very important to note that the Panama Canal and its success is not achieved
alone, that is why we need to get into the components thathad the Panama canal to
achieve, that is why the book written by Connifmichaell a tells the work on the Colon
Free Zone and ports that were developed in the mid-90s, so we will analyze the first port
and the first congress in Panama near Colon Free Zone for example the Taiwanese
company evergreen who won the award of the former military base at Coco Solo and
currently operates one of the most important contenders ports center8
7Panama
canal authority (PCA) the Spanish acronym is ACP.
united states and the Americas, Panama and the united State. The forced alliance, Michaell
Connif printed united state of America second. edition 2001. PG 177.
8The
7
Analysis and Recommendations.
Importantly, in this category we will be focused first on the Canal expansion and
its project since its inception.
The ACP9 panama announced to the world and a document of great importance
because this is where everything started, this document said when was the canal built and
where there have been some forecasts and some expected outcomes of this megaproject.
We disagree on some points and we are confident that if the Panama Canal project
costs not actually talking about a projected debt situation and then distort the results
expected
In the following study documents that we will be analyzing the panama canal
itself and some treaties or agreements already talked about future projects and their
importance in the maritime world and also see the ports and see the colon free zone as
complementary to the middle of the nineties began to grow product sales of the former
military bases of the United States in Panama.
Category 3.
Economic Impact between Panama and Taiwan ROC.
-Collection of papers of the ninth international symposium on Latin America in the
Republic of China, Graduate Institute of Latin American Studies, Tamkang
University, 2005.
In this paper it packs a lot of exhibitions and study sections, in which discusses
about economic models and commercial cooperation between Latin America and Taiwan
from the economic point of view 10 We may also analyze the conclusions and
9Panama
Canal Autority. (PCA) the Spanish acronym is ACP.
of papers of the ninth international symposium on Latin America in the Republic of China,
Graduate Institute of Latin American Studies, Tamkang University, 2005 pg 157
10Collection
8
recommendations from their point of view dealing with their digital age based economy
knowledge11.
-Changes in the Commercial Environment hemispheric opportunities and obstacles.
Mark Rosenberg, FLACSO-Chile 1993.
The new world economic order which we have been going through the past years have
led to draw conclusions such as those who say that the climate of international trade is
changing so drastically that economic partnerships could eventually replace military
agreements future analyzes of national security according to Carolyn lamm12
In this document will discuss the opportunities that economic alliances from Latin
American countries such as Uruguay or Brazil the reason why we will see the reason of
the study of this alliances is to analyze and look for opportunities that can be and
challenges afforded by the ROC Panama and Taiwan in the coming years.
-Globalization and inclusive alternative to VVI century Basave Jorge
Alejandro Dabat, Carlos Morera. UNAM Institute of Economic Research
2002.(Globalizacion y alternativasincluyentespara el siglo VVI)
In this book discuss the gobalizacion from the global scenery and the global
search for answers so we can see the reality of the current global capitalism.
To learn more about this global phenomenon will have to take a look at American
scenarios especially Panama and see how far you get to put globalization competing
companies in search of excellence and monopolize territories.
Innovative companies often multinationals have become the engine of the
globalization process and its investment strategy and determine the new location
11ibid.
12Changes
in the Commercial Environment hemispheric opportunities and obstacles. Mark
Rosenberg, FLACSO-Chile 1993 pg 231.
9
international13 order so we can say that the Canal expansion is a global demand
conditions that have been the world today .
Analysis and recommendations.
In this category we analyze the current international economic cooperation models and
how these models help and give strength to the companies so they can hold and may have
competitiveness in a globalized world.
Market globalization and competitiveness is undoubtedly the most important factor and is
now responsible for the Panama Canal this is a process of modernization, and the reason
why we will see how this will bring prosperity inversion long as no external factors such
as competition panama canal affect far companies and give a strength to this important
global work.
Just so, when we can analyze the behavior of enterprises, the current processes of
globalization where we are and also the international economic models currently
implementable Latin America can get a give our conclusions, findings and our opinions
in this research project.
1. Hypothesis
1.
Finalization of the Panama Canal expansion we can find their true costs were
compared with those presented in preliminary reports before the project started, so then
we can find that will be as profitable and beneficial for the country and the world.
2. Many Asian companies among those the Taiwanese capital for example CFZ
Taiwanese co, Mega International Commercial bank ICBC, evergreen Group, embassy of
ROC Taiwanin Panama, will see a positive impact on their profits sumac given the
benefits meant for them to use this route as important to the world, this will be reflected
in a significant increase in commercial exchange of their goods and services and so we
13Globalization
and inclusive alternative to VVI century Basave Jorge Alejandro Dabat, Carlos Morera.
UNAM Institute of Economic Research 2002.( Globalizacion y alternativas incluyentes para el siglo
VVI) pg. 137
10
can take them to other countries among those south Central Europe and North America as
well.
3. The impact on the economy will be reflected panama when vessels start to move as
much tonnage ( post-Panamax) but also is necessary to know the possible negative
impact and repercussion for example the incomplete project a canal in Nicaragua, politic
aspect, gobal economy and American market decadence
4. The social, cultural and economic impact will be of significance in our country when
we will see Taiwanese venture capital firms in the Panamanian economy and also study
the extent to which the population will grow Chinese Panamanian in the next 20 years.
2. Methodology
In this project we focused on history books dealing with issues such as the presence
of Chinese and Taiwanese companies in panama both will have reference books dealing
with the history of Panama and the Panama Canal also be using basic economics books ,
shipping companies and multinationals.
As a secondary reference discuss the canal expansion project prepared by the Panama
Canal Authority and the tripartite commission composed of the United States, Japan and
Panama.14
Other references with which we will have are the magazines, brochures, newspapers
and abroad, face to face interview with project engineers panama canal and research
through websites that can give us a different approach to how other countries see
continents this project and its impact on both countries between Panama and
ROCTaiwan here.
Begin by reviewing principal bibliography, historical research and so within the
analysis process will develop and understanding their positive and negative impacts of
14I
will be traveling to republic of Panama in january 2013, for conduct interviewsin the expansion
project.
11
the canal by method of SWOT/PEST, And finally give conclusions perspective
observations and recommendations.
Example:
15
3. Expected contributions
One of the main contributions is to deliver this research economic relations
department of the Ministry of Foreign Affairs of the Republic of Panama and thus may
have a pattern of economic analysis between the two countries as the main determinant
using expansion project of the Panama Canal .
We also hope to deliver this project to the library Simon Bolivar University Panama
where it can also serve as a reference for students to provide an educational tool capable
of assisting the training of students.
I hope to donate this document to the diplomatic library of the Ministry foreign affairs
in ROC Taiwan.
4. Research limitations
In the current investigation we can establish that one of the limitations with greater
value is that at the present time there is no record of considerable books related to the
expansion of the Panama Canal.
15Figure:
analysis ofSWOT/PEST.
12
On the other hand we have a problem linked to the fact that the majority of references
utilized such as books, newspapers and more and in Spanish. Since my native language is
Spanish I will do my best to be accurate and perfect with translations and make sure the
reader has a clear and precise understanding when the time comes to develop certain
analysis.
5. Chapter arrangement
I - Introductory Proposal
Background introduction
Research Motives
Research Objectives
Literature Review
Hypothesis
Methodology
Expected contributions
Research Limitations
Analytical Framework
II –Background about the Expansion of the Panama Canal.
2.1 Arrival of the first Chinese Immigrants.
2.2 Diplomatic Relations Between Panama and the ROC.
2.2.1 Relations Between Republic of China-Panama before the 1947.
2.2.2 Relations Between ROC Taiwan-Panama after the 1947.
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2.3 The Panama Canal in the century XXI and the relations with ROC Taiwan
after 1947.
III- -Panama Canal Expansion Project
3.1 The Tripartite Commission and the 2006 national referendum in Panama
3.2 Costs and projections of the Panama Canal
3.3 Development and current progress of the canal expansion project
IV –Overall vision of the economic impact between Panama and Taiwan ROC after
completion of the expansion project Panama Canal
4.1economic challenges of transnational corporations and the Colon Free Zone in
the next 20 years
4.2 The free trade agreement between Panama and Taiwan
4.3 Vision strategy to implement political and economic objectives to achieve
prosperous communes to Panama and Taiwan
4.3.4 analysis of SWOT FODA and economic and political impact of the
expansion of the channel with Taiwan ROC
4.4 analysis and recommendations
V- Conclusion
14
15
VI- Bibliography
English bibliography
Anderson David, Sweeney Dennis j. Williams Thomas A. Stadistic for business and
economics, west publishing company, 1987.
Chow, Peter C. Y. Taiwan in the Global Economy. Westport, Connecticut: PRAEGER,
2002.
Dev Gupta, Atya. The Political economy of globalization.Massachussetts: Kluwer
academic Publisherts, 1997.
Frieden Jeffry A. Lake David A. International political Economy, perspective on global
power and wealh, st. Martins Press, 1995.
Gilpin Robert, the Political economy of international relations, Princeton University Press,
1987.
Harmodio
Arias.
The
Panama
Canal.A
study
in
international
law
and
diplomacy.Honolulu Hawaii year 2000.
MichaellConnifThe united states and the Americas, Panama and the united State. The
forced alliance, printed united state of America second. edition 2001
Nicholson, Michael. Formal theories in international Relations. Cambridge university
press, 1995
Ocampo, jose Antonio and Juan Martin, globalization and Development, a latin American
and carribean perspective. Chile: standford University press, 2003.
Pugel Thomas A. International Economics,macgraw-hill/Irwin 2007.
The history of Panamà the greenwood histories of the modern nations, Robert C. Harding,
printed united state of America year 2006.
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Viotti, Paul R. and Mark v. Kauppi. International Relations Theory Realism, Pluralism,
Globalism, and Belond. 3 ed. Massachusetts: longman publishers, 1999.
Spanish bibliography
Aldo FerrerHistoria de la globalization,origen del ordeneconomicomundial, impreso en
argentina. 1996.
Berta Alicia Cheng, Como cuando y porquellegaron los chinos a Panamá,poyectos
editorials, Panamá, 2010
Carlos
Fernandez,
Roberto
Hernandez,
PilarBaptistaMetodologia
de
la
MoreraGlobalizacion
y
investigacion,.Primeraedicion, McGraw-Hill, 1991.
ConstituciónPolitica de la República de Panamá
Jorge
Basave,
Alejandro
Dabat,
Carlos
alternativesincluyentespara el siglo VVI, Instituto de investigacioneseconomicas UNAM
2002.
Juan Tam Huellaschinas en Panamá 150 años de presencia, impreso en Panamá
porUnicosImpresores, 2006
Mark Rosemberg, Cambios en el Ambiente Commercial Hemisferico, Oportunidades y
Obstaculos, FLACSO- Chile 1993.
Website.
www.epasa.com
www.laprensa.com.pa
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