The twin resignation of Nobel laureate for economics, Joseph Stiglitz, and of fellow member Mark Pieth from the government committee on financial transparency has cast a dark cloud over the image of the country intentionally. Multiple experts agree that the Panamanian government should take swift action to counteract the reputational damage this has caused.
According to the president of the College of Economists, Olmedo Estrada, Stiglitz's departure has raised doubts about the adequacy of "financial transactions that are actually carried out with full transparency in Panama".
Mr. Estrada shared his concern that the high-profile resignation will damage the country's international standing. He insisted that it is contingent upon the government to clarify precisely why the Nobel laureate chose to step down from the committee that the government had set up to cast light on murky financial practices. The action was taken in the wake of the global scandal brought about by disgraced Panamanian law firm Mossack Fonseca.
Mr. Stiglitz denounced “lack of transparency and censorship” on the part of the Panamanian government has the primary reasons behind his resignation.
In his declarations, he also referred to supposed “pressures being exercised on the government, as well as evidence of criminal activities ranging from money laundering to child prostitution rings”.
According to local lawyer Ernesto Cedeño, such declarations make it imperative that the government publish the preliminary reports presented by the committee in its entirety, followed by a list of actions aimed at improving transparency.
“If this is not dealt with in a swift manner, the image of Panama internationally will deteriorate even further”, Mr. Cedeno declared.
Following reports of supposed differences of opinion within the committee made by both Mr. Stiglitz and Mark Pieth, a respected Professor of Criminal Law and Criminology at the University of Basel, other committee members also spoke out.
Nicolas Ardito Barletta, former deputy president of the World Bank and one of the Panamanian members of the committee, rejected claims of differences of opinion on matters of transparency, arguing instead that Mr. Stiglitzs and Mr. Pieth where following a personal agenda. His version of events was corroborated by international expert Roberto Arcadia, as well as by the committee co- heads Alberto Aleman.
According to Mr. Ardito Barletta, Mr. Stiglitzs and Mr. Pieth aimed to 'publish a report of global relevance, when the actual mandate was to produce a report for the benefit of the Panamanian government'. In his view, the commitment of the committee to its mandate was supported by the concrete proposals it made to the government in its preliminary report.
Mr. Ardito Barletta rejected claims that the abrupt and very public departure of the two international experts in any way affected the image of the country's financial system.
Members of the Panamanian business community were supportive of his views.
Roberto Troncoso, former president of the Association of Business Executives (Apede), accused Mr. Stiglitz of 'having the wrong profile for this kind of job, and up being unable to work in teams'.
Another member of Apede, David Saied, went as far as to label his initial designation to the committee “a mistake”, given his prejudicial stance on low-taxation, open economies such as Panama’s.
