IO Podcast | Episode 64
Panama’s road to prosperity began with its separation from Colombia at the turn of the 20th century. While economic motivations fueled the secession, Panamanian business leader Surse Pierpoint emphasizes that cultural differences also played a key role. Panamanians have consistently sought to attract foreign capital and industries.
Pierpoint cites Law 401 as a prime example of Panama’s legal framework that incentivizes foreign investment. A cornerstone of this strategy is Panama’s de facto dollarization. Without a central bank, Panama relies on an agreement with the US Treasury to circulate US dollars, which has been pivotal to building a robust international banking sector. With a stable currency and sound economic policies, Pierpoint argues that Panama is well positioned to continue its trajectory of economic success.
Pierpoint also reflects on Panama’s foreign policy, especially regarding China. While the country has cultivated diplomatic ties with Beijing, the current administration is refocusing efforts on strengthening relations with the United States.
Recommended Links
- Follow Surse Pierpoint on X.
- Buy The Path Between the Seas: The Creation of the Panama Canal, 1870-1914.
- “Gabriela Calderón: Ecuador’s Dollarization Is Undefeated,” Impunity Observer.
- “The Price of Panama’s Banking Secrecy,” Impunity Observer.
- “The Beginning of the End for Panama,” El Universo.
