IIEM International Study Tour 2011 Wrap Up

It is the final morning of the 2011 IIEM Study Tour and most of the students are anticipating the arrival back home. We have been in Panama for the past week and it is evident that homesickness is setting in, but at the same time we are honoured to have been given such a wonderful opportunity to visit Panama. For those of you who have been following our experiences intently through our postings, you would already have a fair idea of our brief, but action filled stay in Panama. Every visit, and by extension every experience, which the team shared, brought with it valuable lessons and insights. We all hope to take these lessons home to Trinidad (along with the numerous items we ‘procured ’) and apply them for the benefit of our country. If you recall, we had a fairly busy schedule with official visits to a number of ministries as well as the University of Panama. We also visited the Colon Free Zone and the Mille Flores Locks on the Panama Canal. Each visit brought valuable information to the team and we all tried to take advantage and absorb as much of it as we could.

The visits to the ministries were strategically scheduled for the first half of the tour. This ensured that we were able to be at our most alert and that we would have the most time possible to assimilate the information provided. It was evident that the schedule was meticulously constructed since each visit followed from the previous one. In addition, those visits paved the way for the visit to the University of Panama. This visit to the University provided further clarity on our higher purpose as students of the University of Trinidad and Tobago. Like the University of Panama, the University of Trinidad and Tobago recognizes the needs of our country and is therefore seeking to promote and develop the human capital through specially designed programs like IIEM to meet the human resource and entrepreneurship needs of our nation. As such, our mandate as future leaders is to take our country forward through innovation and entrepreneurship.

The visit to the Colon Free Zone allowed us to appreciate that proper legislation, easy access to credit facilities, and convenient and efficient document processing are some of the salient ingredients for enabling commercial activity and attracting investors. Ideally situated at the Atlantic gateway to the Panama Canal, the Free Zone makes use of its proximity to a number of world class ports, a highway and an airport; most of which will be upgraded to coincide with the completion of the Canal’s expansion works. It capitalizes expertly on its position close to the Panama Canal and virtually all types of goods, from almost any part of the world, pass through the Zone. The Zone plays an invaluable role in the generation of employment opportunities for a large number of Panamanians. Equally importantly, it not only facilitates, but it encourages international trade and future relationships for both exporting and importing.

The country itself utilizes its strategic location and efficient support infrastructure to capitalize on trade and transport through the Panama Canal and for its rapidly growing tourism sector. Tourism is a major player in Panama’s huge service sector industry. It already contributes significantly to the country’s wealth generation and competitiveness on the global market and it is rapidly growing at the moment. Tourism was formerly heavily influenced by just the Canal but the country has been aggressively marketing itself as a tourist destination for more than just the Canal. Its natural beauty and it location as a convention destination are some of the ways which the country has been presenting itself to the world. This direction is certain to impact Panama’s already strong tourism sector positively.

The 80 km long Panama Canal connecting Panama City on the Pacific, and Colon on the Atlantic, is a fulcrum of trade for the entire world. The Canal greatly aids in supporting the efficiency of trade and transport, most notably where time and money are concerned. Approximately $US 5.24 billion has been allocated for expansion of the Canal through the installation of two new sets of locks. The locks have been designed to allow larger ships to pass through which in turn would contribute to a greater volume of trade and transport through the country. It is expected that this expansion would affect all other sectors and thus development works are also taking place on other sectors in preparation for this.

The most obvious reason for Panama’s great success is it strategic geographic location but the country has endeavoured to use the fruits obtained from this unique advantage to develop and strengthen other sectors. Additionally, since Panama depends heavily on its strong service sector it means that the country also depends heavily on the people who provide these services. These human resource needs, which have been greatly fueled by national pride and academic enlightenment through facilities such as the University of Panama, have played an immense role in ensuring the service sector’s continued success. Other factors which facilitate the success of Panama’s strategic advantage and its economy as a whole include its continued development of the infrastructure, an increasingly vibrant tourism industry with plans for the development of numerous hotels, a strong financial sector and the country’s impending emergence as the communication hub of Latin America and by extension the Caribbean.


With our Study Tour over, it’s now back to work as usual. We had to remind one another that reflections have to be done, reports have to be written and presentations have to be prepared, so that we can tangibly show what we learned on the tour. Hopefully we can remember most of the information which we collected and more importantly impart it onto any willing listeners. The tour itself turned out to be an enjoyable learning experience, and though it was hectic for most of the time, we were glad that it happened exactly as it did. From the visits to the various ministries, to the visits to the Panama Canal and the Colon Free Zone, to visits to the grocery every night to pick up dinner, we all had experiences and learnt lessons which we are unlikely to forget for some time (and yes, we learned some more Spanish).


And so, as we conclude this module, the IIEM class of 2010/2011 would like to express our deepest gratitude to all persons and institutions that contributed to the success of the 2011 IIEM Study Tour to Panama. Our heartfelt thanks and appreciation goes out to our accompanying lecturers, Mrs. Judith Morrain-Web and Dr. Natalie Persadie; who both pushed us to be our best during the study tour with their sound guidance, great focus, and in Mrs. Webb’s case especially, acceptance of nothing but the best from each and every one of us. The members of the IIEM Class would also like to extend our sincere thanks to the Panamanian Ambassador to Trinidad and Tobago, Mrs. Arline Gonzalez Costa who was instrumental in making the 2011 IIEM Study Tour not only possible, but enjoyable. We also wish to thank to The Government of Republic of Panama and the various Panamanian Ministries that facilitated our visits so graciously. In closing, the IIEM class of 2010/2011 would like to humbly thank the University of Trinidad and Tobago, Professor Prakash Persad, the IIEM faculty members, and last but not least, The Government of The Republic of Trinidad and Tobago, all of whom contributed immensely to the Study Tour being a reality and a success.

Until next time!

By: Ishmael, Trevon and Marcus

The Panama Canal

The Panama Canal is recognized as one of the eight wonders of the world and on the last day of our study tour, the class was privileged to witness one of the marvels of science and history in motion. Upon arriving at the Miraflores Lock, the class was invited to the theatre where a lecture was given on the Canal. We were shown how the canal works and how much it has developed from being a military logistics facility to a large commercial logistics centre. Over 14,000 ships pass through the Panama Canal annually; a far cry from the early years of annual ship counts of 1000.

After the lecture, students and facilitating faculty members were given the opportunity to experience two ships moving through the Canal. At the observation tower many tourists gathered to witness the operations occurring at the Miraflores Locks. It was truly amazing to see the huge cargo ship approaching the canal with tug boats at its side to keep the ship aligned on the correct route. When the ship entered the lock, it was attached by cables to two trains that pulled it along through the passage way.

As water filled the lock, the huge ship was lifted a height of 26 meters in total over the Atlantic Ocean. This truly fascinating operation is based on using water collected in reservoir lakes during Panama’s eight month rainy season.  A percentage of the water at these lakes is used domestically at neighbouring villages. The majority, although, is used at a power plant to generate electricity for the Canal’s facilities before being used to fill the locks. After filling the locks, this water is finally released to sea. Expansion of the canal will include new locks that will recycle 60 percent of this water although having enough rain water is never an issue as there is a large supply from the reservoirs. It takes approximately eight hours to cross from one ocean to the next and operations are continuous.

After observing the ship cross this spectacular wonder, the class then visited the four storeys of the Panama Canal museum. This comprehensive museum gave a detailed account of the important incidents and operations of the canal, from its inception to its completion and even included details of its current operations. The museum was filled with replicas of the machines used in the building of the canal as well as the ones that are currently in use.  The museum also showed  the various flora and fauna that could be found in Panama. This tour of the Panama museum completed our tour of the Panama Canal, a wonder of the world.

Authors: Kwame, Shazeer and Salahudeen

La Zona Libre de Colón

Day five (5) was a very interesting one of learning for the IIEM team. We were afforded the privilege of visiting the second largest duty free shopping area in the world, the Colón Free Zone. Upon arrival at our destination we were greeted and pleasantly welcomed by our tour guide for the day, Mr. Harry Davis. As we proceeded past the first security check point and into the Free Zone we were taken aback by the layout and structure of the area. The picture of an enormous flea market in a warehouse building quickly left our minds, as our bus passed by towering multi storey buildings on our way to the administration department.

 

 

At the administration building we met with the enthusiastic marketing director, Ms. Sonia Anton, who prepared a very detailed and informative presentation on the history, current operations and future plans of the Free Zone. We delved lightly into the past to learn about the initiative taken by seven business men to start this venture by using warehouses while occupying 35 hectares of land, in 1946. They saw the importance of leveraging the geographic position of Panama to commence trade. This massive trading area that started off with ten companies has evolved into a city-like community spanning 988 acres. To this day the Colón Free Zone is run by the business community as opposed to the government of Panama.

 

 

We also saw that 2,500 companies are currently being facilitated on the 988 acres, which eventually came as no surprise to us after hearing about the seemingly unsurpassable incentives that are offered to the owners. Some of these include; 0% taxes; competitive operation costs and 24 hour digitalized surveillance. Companies also have the liberty to build their own stores, warehouses or industrial plants on lots leased to them from the Free Zone Administration. A minimum of 60% of the merchandise that is imported however, needs to be exported and lot lease agreements are signed for 20-year periods.

We were reminded of the fact that the Panamanian Government is keen on providing solid banking centers and uses the United States currency which attracts investors. Other attractions include the fact that there are two main home ports for cruise lines, four container ports, ISO 9001:2008 standards are in place and there are laws against money laundering.

Ms. Anton noted that although the Free Zone is run by the business men and women, customer service and warehousing system facilities are provided by the Administration department, to assist with the operations. As a measure for ensuring efficiency, every company is given a registration number and operation code which allows for ease of tracking the amount of imports and exports that take place.

We enjoyed a very enlightening session at the administration building and then we were off to experience the “zone” ourselves. We were guided by Mr. Davis to what seemed like a normal city with streets and street signs and miles of blocks and of course, stores. Instead of seeing goods stacked up on a table as is the case in a flea market, all the wholesale merchandise was nicely showcased through mainly glass shop windows. Most of the stores were also outfitted by well designed logos and signage. This was no warehouse bargain centre.

 

 

As members of a society that is also well positioned at the end of the Caribbean chain of Islands and to the north of South America, it is imperative that we do not just look at the Free Trade Zone as another good initiative that was accomplished by a country that is bigger than ours. We must instead, seek to find ways to leverage our own geographic location by doing the necessary research to ensure that Trinidad and Tobago is utilized to its maximum capacity.

 

 

By: Lindy and Cherise

Universidad de Panama

The history of the University of Panama is very much integrated with the history of its country. The oldest in Panama, its founder and first President was the distinguished citizen Dr. Octavio Mendez Pereira. This university is a state institution of superior, independent education, inspired by the highest civic, moral, and ethical values. Moreover, financed by a budget that represents 20% of national expenditure, the programs in this university, are oriented to the needs of society for well-trained and educated individuals. This facilitates the need for new demands in the advancement of the country through the Maritime, Scientific, Ecological, and Communication  sectors.  

In realizing the needs of the country, the University therefore seeks to promote sustainable development of its citizens via specially designed programmes inclusive of Entrepreneurship. In today’s competitive world, the University further realizes the need for graduates to become bilingual which facilitates trade negotiations with key global partners.

The University of Panama organized scheduled visits to different units of which was coordinated by the International Co-operation Unit . The goals of this  such unit are linked to ensuring that the university becomes globally recognized by collaborating with other universities that share  a similar  vision. It was further established that all international agreements that with which the University becomes affiliated are managed by this unit.

 Panama has a rich cultural heritage, and the University of Panama actively contributes to the preservation of its traditions by means of its Faculty of Fine Arts.  This faculty offers programmes in painting, music, dance theatre and architecture, just to name a few.

As we entered the art gallery, priceless facial expressions were made, as majestic pieces of art hung from the gallery’s wall. A wide selection of paintings was proudly displayed from the rich-color infused which depicted the country’s wealth of flora and fauna to the simple and unfussy portrayal of the county’s first settlers.

Further to being in the presence of marvelous art, we were given the privilege to meet descendants of the country’s first settlers, dressed proudly in traditional wear. They stood elegantly in the gallery, adorned with beautiful traditional jewelry attracting our attention just as much as the art pieces did.

In addition to the spectacular display of art, we have an opportunity to visit the only “Dome” in Panama, which is located at the University of Panama. The “Dome” is the facility used by the students of fine arts to present spectacular displays of their work in dance, theatre, etc. The facility houses one thousand (1000) people and serves as the academic judging point for all students in the faculty.

We visited the department of physical education at the University of Panama where we learnt all about the programs they offer and the variety of sports that the university teaches. Sports activities vary from the familiar soccer and swimming to fencing and gymnastics . The University has several programmes in the physical education department such as sports management and physiotherapy. A key point that stood out was the university’s policy that in order to graduate from a program, each student must take and pass an English course.

The tour of the facility was quite interesting as they took the class from one building to the next. We saw the gym, gymnastics room, the twin basketball courts and above them was the male gymnastics room. The university is home to a magnificent sporting field where athletics is practiced by many of the students. After a tour of the facilities we shared in a toast which included a pastry and a drink called “chichi” that celebrated the inauguration of the campus’ cafe.

By: Nazma, Nalini and Nadine 

Panama's Commerce and Tourism

On this the third day of our official visit to Panama, we are pleased to provide an account of our visits to the Ministry of Commerce and Industry and the Tourism Authority. We were warmly greeted in both government establishments by officials who were eager to share their expertise and also find out more about our country. We arrived at the former destination and were exposed to an overview of Panama’s Free Trade Agreements (FTAs). The speaker engaged us in questions that provided a more detailed account of the events involved in the implementation and policy of FTAs. After this presentation, another speaker offered insight on four (4) main aspects of Panama’s Strategic Plan outlined by the Government for the period 2009-2014. In the afternoon, we ventured to Panama Tourism Authority and were also greeted by a government official who was very eager to promote Panama as a tourist destination by thoroughly explaining its competitive advantages. The accounts written below describe the events of our day in more detail.

Some students sharing a photo with Ms. Jaen.

Our first meeting was facilitated by Ms. Lidia Lena Acosta Jaen,  a lawyer in the International Trade Agreements department. Ms. Jaen’s presentation focused mainly on an overview of Panama’s Free Trade Agreement.   We learned that Panama pursued a policy of liberalization and free trade to promote real integration amongst the world’s leading economies with the World Trade Organization in 1997.  

Panama’s first free trade agreement came about with El Salvador in 2003.  Since then, Panama has formed FTA’s with Taiwan in 2004 to facilitate trade in the fields of plastic processing and construction. Following this, the next trade agreement was formed with Chile, followed by Costa Rica. In 2009, trade agreements were formulated with Guatemala to facilitate trade for oysters and milk. Honduras was then pursued to trade cotton products and cocoa. Nicaragua established an FTA with Panama to create trade with the dairy industry and fruits and fruit juices. The next course of action for Panama is to finalize their Free Trade Agreement with that of the United States.

Following Ms. Jaen’s presentation, we were then given a presentation by Mr. Ricardo Barnett on the Strategic Plans of the Panamanian government for the period 2009 - 2014. Four major sectors were highlighted by Mr. Barnett, namely, 1) Tourism, 2) Logistics, 3) Finance and 4) Agri-Exports.  Mr. Barnett was proud to express that Panama has excelled in the area of Logistics.   Mr. Barnett made mention of the company that works in conjunction with the Ministry of Commerce and Industry, that is, ProInvest. They function as an entity that promotes export of goods from Panama to other countries, and the attraction of foreign investment within Panama.

Ms. Claxton presenting a token of appreciation to Mr. Barnett

We learned that one of the ways the Ministry of Commerce and Industry facilitates entrepreneurs was by making the Ministry into a ‘one stop shop’. In this way, producers can get all the necessary paper work needed to create exportation of goods done at one location. The Ministry also works in close relations with these producers by training them for meetings with potential buyers. This could be regarded as an example of how high the nationals of Panama regard their reputation on the global scale. This helps to create an image for the country that business conducted within Panama is done in a secure manner. To further articulate our tour, the group’s scenic view on the way to Panama’s Tourism Authority brought particular Industries into perspective such as monumental architectural high-rises which showed us, steps towards accommodating Tourism.

Panama Tourism Authority passionately expressed  their function and purpose to support the development of tourism in Panama. Their communication style  and hospitality helped the group realize how they practiced tourism etiquette. The presenter shared an insight into what maybe expressed as “Secrets to Success”. Panama has been tailoring packages to suit the specific needs of their target market by way of extensive market research. He later shared how Panama arrived at focusing on this Industry, where, their main focus on the Canal which decreased in revenue generation which lead to the development of other industries as a result. While creating an emphasis on tourism, Panama focused on areas such as Adventure, Eco-tourism and lately Events and Conferences . They use such target  groups to market Panama to countries . In striving to promote Panama as a destination that can also be a haven to investors they project the ease of doing business in addition to accessible diverse activities making it a complete getaway.

Showing some appreciation to our facilitators at the Ministry of Tourism.

From this experience today we gained a more thorough understanding of the opportunities that present themselves for Panama in leveraging their strong competitive advantages with respect to its trade policies, commerce and tourism. We are also more informed about the objectives established by the government for the country’s development. We are now able to draw comparisons between Panama and Trinidad and Tobago where trade, logistics, commerce, and tourism are concerned. We are truly grateful that we are able to experience what our country aspires to so that we can make erudite decisions regarding our short term deliverables for the program (a business plan and a research project) as well as beyond. In closing, we would like to sincerely thank UTT for strategically positioning us, as future entrepreneurs, at the epicenter of development in the Latin American and Caribbean region.

Welcome smiles from the presenters at the Ministry of Tourism.

By Marisa, Denizia and Chinyere.

Ministerio de Relaciones Exterioresmire

Panama’s Ministry of Foreign Affairs, located in San Felipe in Panama City, was the scene of our first official visit in this year’s study tour. On arrival at the Ministry, we were greeted by Mr. Francisco Marquez who gave the group an overview of Panama’s history.

The ministry is housed in a building rich in history; formerly a monastery and a Jesuit college, adjacent to the former Presidential Palace. Panama’s rich cultural history is reflected in its architecture and great care has been taken to preserve and protect the historic architecture of the country. We were introduced to the idealism of the Bolivarian Republics of which Panama is one. These are nations which were former states of Gran Colombia which were liberated by Simon Bolivar; save Trinidad and Tobago which was captured by the British before these liberation efforts. Although Simon Bolivar never set foot in Panama, he chose the nation to be the central hub for the Bolivarian Republics.

We were privileged to see the replica of the sword of Simon Bolivar. The history of the Bolivarian alliance was enumerated with such fervor and alacrity that we could not help but be moved by the presentation. The reverence for their leader as well as the alliance was evident during the visit. Panama became the seat of the alliance and still to this day maintains its strategic position as the meeting place of the ambassadors of the Alliance.

The Ministry of Foreign Affairs is responsible for the ensuring the strategic objectives of the Government of Panama. These objectives are: to defend Panamanian national interest; to comply with and enforce constitutional norms, international laws and treaties signed by the Republic of Panama; professionalizing and modernizing Panamanian Foreign Service in accordance with the requirements of the new international order. Panama’s mission is to design and implement a coherent foreign policy as an instrument to promote international openings and manage opportunities and partnerships for the effective development of the Panamanian people. The Ministry is able to successfully achieve this through their management of the relationships with other nations, by formulating and implementing foreign policy. The Ministry is therefore able to facilitate trade among other states in the Latin American region.

Panama has benefited greatly from the alliance of these nations and has fostered trade agreements with other countries regionally and globally. Amongst the team, comparisons were made to Panama’s successes in forming strategic links with their neighbouring countries and T&T’s efforts to forge and become the hub of regional alliances.

There is much that Trinidad and Tobago can learn from the Panamanian model of forging alliances based on historical and geographical similarities and developing these alliances into profitable trade relations. The exposure gained from this experience would therefore significantly aid in our country’s efforts to accomplish strategic alliances.


By: Curtis, Ronel and Joseph

La Llegada

A bird's eye view of Panama City's skyline implanted an impressive mark upon the mind of the twenty students of the IIEM programme whose destination was that of Latin America's "number one" country for business. Panama City was aglow in the evening sky and it was apparent that the country had been very successful in moderning and developing its urban landscape and attracting continued foreign investment and commercial activity.

The country of Panama is located on a narrow strip of land joining North and South America and has significant strategic value for trade among countries or cities. It is best known for the Canal which was opened in 1914 to connect the Atlantic and Pacific Oceans and to facilitate easier and more efficient transportation of goods and services among countries operating in the aforementioned spheres. Panama is also known for its strong service sector - primarily its financial sector, whose physical manifestation was observed in the form of numerous local and international banks which dotted the El Cangrejo area in the vicinity of our hotel - the Toscana Inn. After checking in we soon realized that Panama City was literally one that did not sleep. The city continued to bustle with acivity into the wee hours of the morning.

The IIEM academic staff worked feverishly to ensure that we all got to Panama and were provided with the opportunity to visit sites of interest. This study tour is of utmost importance because we can witness first hand, opportunities and the subsequent benefits that Trinidad and Tobago can gain from trade agreements with this country. Therefore it is of no surprise that we will be visiting the Ministry of Foreign Affairs, Ministry of Commerce and Industry, the Panama Tourism Authority, the National University of Panama, the Colon Free Zone and the Panama Canal.

On Sunday morning we divided ourselves into our designated groups and started working toward our various goals which centered on viewing various aspects of Panama such as Infrastructure and Logistics, taking into account physical, corporate and regulatory aspects. We supplied preliminary assertions as to how Panama leveraged its resources to get where it desires and how this has allowed them to be extremely competitive and successful in their attempts to fuel economic growth.

It was during our group discussions we realized the following have helped Panama to solidify their stance as the ideal place to conduct business in Latin America:

• Panama benefits from its location and its Canal is recognised as one of the Wonders of the World.
• Panama chose to focus very heavily on the services sector to reduce dependency on the Canal for revenue generation

This has resulted in a lot of foreign investment coming into Panama which means that there are actually policies and laws that assist or facilitate good, ethical and safe working relationships to sustain the developmental path that the country is on.

We look forward to our first official visit the Foreign Affairs Ministry on Monday to learn more about this exciting area and what it can mean for us and by extension our country.

By: Shantelle, Liz and Deidre