Democracy is the worst form of government,
except for all those other forms.
- Winston Churchill
(Mis-)Managing Social Programs In Panama
The Foundation for Economic and Social Development of Panama's most recent study re-emphasizes that poverty is the most pressing issue facing the federal government. The study notes that about half the country's budget, some $4 billion, is directly or indirectly spent on social programs. However, these programs have not proven effective in ending poverty, primarily, according to the study, because the programs are poorly planned and managed. The study concludes, " ..the programs are scattered, uncoordinated, often duplicated, and are not measured or evaluated." (Roughly half the national budget!)
Planning? Since 1985, the government has created 11 separate agencies to deal with various poverty and social issues. In effect, every time the government targeted a 'new' problem, a new agency was created. This hodge-podge of agencies all operate independently, absent any requirements to coordinate with one another. The foundation's report recommends, among other things, that all these agencies be combined and consolidated under the Minister of Social Development.
The problems are further complicated by the infrastructure (or lack of same) in the country's 'interior'. In the comarca (reservation) of the Kuna Yala indigenous tribe, 4,273 families receive welfare payments, and an additional 850 other families are in the agency's eligibility screening cycle. Each family receives $100 every two months plus a $50 'bonus' at Christmas time.
However, as of January 24, the December checks due before Christmas have not been received. The Minister of Social Development's representative for the Kunta Yala blames "continuing problems distributing checks," further explaining the, "distribution of the money is not as easy as in some other areas of the country." He added that the only branch of Banco National in the entire region has problems with its computer system. Plus, the local post office needs to bring in additional staff when the checks arrive, and that staff is not always available on short notice.
Can you believe that bureaucratic tap-dance? Any brand new U.S. Air Force 2nd Lt. who couldn't handle this ´big´problem would be sent back home to his momma! And to add insult to idiocy, the agency representative has recommended to the Ministry that they not process further the 850 pending applications until "the government addresses the problems with the distribution system."
The Various Faces Of Justice
The office of the Panamanian ambassador's office in Brussels, whose sole purpose for existence is to manage the preferential tariff relationship with the European Union, did not submit the paperwork required to extend their preferential agreement by the Oct 31 deadline. Therefore, Panama lost it's long-standing 'favored' status, and therefore it's reduced tariff status effective on Jan 1, 2009 (The EU also says that the preferred status can not be re-instated before 2010).
The EU says it sent numerous reminders starting six months before the submittal deadline to all the countries involved. In addition, a detailed reminder was sent specifically to Panama's Brussels office two months before the submittal deadline - a reminder that included a sample of the required submission documents all completely filled-out properly. As a result of this fiasco, Panama's National Assembly has had to set aside $32 million to reimburse exporters for their loses of preferential tariffs on exports to the European Union.
Three months after this 'oversight' became public, the Panamanian government says they are "still investigating how this happened and who is responsible." Critics speculate that the reason for the extended length of the investigation is, like many things in Panama, politically motivated. The political-appointee ambassador in the Brussels office is the brother of Balbina Herrera, the candidate for the PRC party in the upcoming presidential elections.
The consequences? In all probability, based on historical patterns of government - none!.
In the midst of the financial crises in the U.S., which has impacted not only every single U.S. citizen, but economies around the entire world, Bank of America used a big chunk of their $25 billion government handout to buy ailing Merrill Lynch. To insure that he personally qualified for the 'Sleaze-Ball Hall of Fame', John Thain, the CEO of Merrill Lynch, rushed through millions of dollars of year-end bonuses for Merrill employees, paying them just before Bank of America completed the acquisition. Ironically, some of the employees were receiving their bonuses as they were preparing a report revealing that Merrill Lynch had a fourth-quarter loss of $15.3 billion. Because of these losses and the bonuses, Bank of America has requested additional billions of bail-out funds from the government.
The consequences? Bank of America executives did not want to embarrass Thain, so he was allowed to just resign.
In China, two milk suppliers, in an effort to make a few extra pennies per gallon, were watering-down the milk they were supplying to a large dairy. Then they added melamine to artificially inflate the protein so the milk would pass testing and inspection. When this hoax was discovered, the top executive of the dairy admitted she knew of the suppliers actions for a month before 'blowing the whistle'. Six babies died due to this hoax, and thousands of others may suffer from kidney stones.
The consequences? A government investigation and the resultant trials of the three culprits were all completed in less than four months. The dairy manager received a life sentence - the two rouge suppliers were given the death penalty.
Questions?
NOTE: As I went to press with this update, it was revealed this AM that some officials of the U.S. company that was distributing tainted peanut butter products, were aware of the contamination prior to the products being shipped. Their 'defense' is that there was no government regulations requiring them to take action. Suppose there will be any 'death penalties'? Maybe we should extradite these clowns to China for trial, and throw in a few financial industry corporate CEOs for good measure. Ha!