Puerto Rico and Panama - Political Environments

Political Environments

In recent decades, Panama has undergone extreme changes in the political environment. Though at times this has been tumultuous, it has resulted in a more organized and reformed system of government. After years of military control, the government was able to abolish the Panamanian military completely in the 90's, and now rely on a treaty with the United States (U.S.) to provide their security. Panamanian political parties "tend to be centrist to conservative in terms of economic outlook" ("Political Environment," 2011, para. 5).

Historically, Puerto Rico was under the Spanish rule and had several governors throughout decades. Governors were chosen by the King of Spain. In the late 1800's, the political environment changed. Puerto Ricans began to form political sects that turned into political parties and confronted Spanish rule. "In 1898, Puerto Rico became a part of the United States as a result of a war with Spain" ("The New Book," 2003, p. 532). They remain a self-governing commonwealth of the United States to this day.

Economic Environment

The economic conditions within Panama are indicated by the climb in Panama's gross domestic product (GDP) rating, and it is one of the few countries over the past several years that has had no drastic decline in the rating. GDP is a market value of goods and services developed or produced by a country. Because of its location and of being surrounded by two oceans Panama is high in the export and import trades.

Plans to widen the Panama Canal by 2014 will double the canal capacity and increase the trade market. Although the benefit of a widened canal will primarily be for Panama, there is likelihood there will be a benefit to the United States economy too because of increased in moving goods through the canal at a faster rate. There appears to be a large concern that the canal expansion could impact Lake Gatun that is the source of over 50% of Panama's drinking water. Lake Gatun is a short distance from the third canal location, and could be infiltrated by ocean salt making it unfit for human consumption.

The economic status of Puerto Rico, is also on the rise with a GDP rating that primarily has increased over the past 24 years. United States firms have invested in Puerto Rico due to large tax incentives and duty-free status. Trade with the United States, Tourism, and dairy, and livestock products all contribute to a good economic environment.

Political Structures and Politicians

Panama is a republic. The government consists of a president and two vice presidents, a Legislative Assembly, and a judiciary branch. The latter is headed by a nine member Supreme Court, appointed by the president. The other governmental members are elected. "At various times in Panama's history, the military has exercised considerable power in the government" ("The New Book," 2003, p. 48). One of the most notable politicians in Panamanian history was General Manuel Antonio Noriega. During his reign as military ruler of Panama there were several civilian presidents elected. However, Noriega wielded control of the country for most of the 80's. The U.S. eventually used military force to remove Noriega. He was tried in the U.S. for drug trafficking and sentenced to prison. Although his prison sentence was complete in 2007, he is still being held while the courts try to make a determination on whether he should be released or turned over to other countries with pending suits against him.

Puerto Rico is a self-governing commonwealth of the U.S. Citizens of Puerto Rico do not vote in U.S. elections, but are represented in the Congress by a resident commissioner. The commissioner has a voice in the House of Representatives, but no vote. The commonwealth itself is administered by a governor, elected by the people. The governor in turn appoints cabinet members and Supreme Court judges. The people also elect members of the Puerto Rican senate and House of Representatives. Luiz Munoz Marin was the founder of the Popular Democratic Party, and was elected the first governor of Puerto Rico in 1948. "In 1952, under Munoz Marin's leadership, Puerto Rico became a self-governing commonwealth freely associated with the United States" ("The New Book," 2003, p. 532).

Major Industries

Major industries in Puerto Rico include manufacturing