Ricardo Alberto Martinelli Berrocal (born 11 March 1951) is a Panamanian politician and businessman who served as the 36th President of Panama from 2009 to 2014.
In 2024, Martinelli was sentenced to ten years in prison for embezzlement of public funds and money laundering related to his use of public money to buy several Panamanian media outlets in 2010. He was implicated in several other corruption cases during his presidency (Odebrecht, New Business, Financial Pacific, Blue Apple, among others); as of February 2024, he is facing several trials.
Early life Born in Panama City, Ricardo Martinelli is the son of Ricardo Martinelli Pardini and Gloria Berrocal Fábrega. (English Translation)
His father is of Italian and Spanish descent, and his mother is of Spanish descent.Barcelona Center for International Affairs: "Ricardo Martinelli Berrocal". Archived. Retrieved August 17, 2013 |Hijo de los señores Ricardo Martinelli, de ascendencia italiana, y Gloria Berrocal, de ascendencia española, nació en la capital del país pero se crió fundamentalmente en Soná, distrito de la provincia de Veraguas
Ricardo Alberto Martinelli Berrocal is a direct descendant of a historic lineage connected to prominent figures in Panamanian history. On his mother’s side, Gloria Berrocal Fábrega, he is a sixth-generation descendant of José de Fábrega —a 19th-century political leader— making Martinelli the seventh generation linked to this notable family line. He is also the great-great-grandson of Justo Arosemena, one of the most influential thinkers in Panamanian history, widely regarded as the ideological father of the nation for his work promoting autonomy, legal reform, and national identity in the 19th century.
He completed his secondary education at Staunton Military Academy in Staunton, Virginia, in the United States. In 1973 he graduated with a Bachelor of Science in business administration degree from the University of Arkansas where he was a member of Sigma Nu fraternity.
Business career Martinelli began his career as a credit officer at Citibank in Panama. After several years of banking, he purchased the business of a client, in turn becoming an entrepreneur, buying or starting additional businesses. His net worth was estimated at $1.1 billion or more, according to press reports. The Economist stated that voters "want him to run the country as well as he manages his businesses" in response to his victory in the 2009 presidential election.
In 2009, he was the president and director of the board of Panamanian supermarket chain Super 99 and of two other companies. In May 2009, he passed the presidency of Super 99 to Luis Enrique Martinelli.https://www.super99.com/sobre-nosotros.php (Spanish)
Politics During the presidency of Ernesto Pérez Balladares, Martinelli served as Director of Social security from 1994 to 1996. From September 1999 to January 2003, during the presidency of Mireya Moscoso, he served as chairman of the board of directors of the Panama Canal and as the Minister for Canal Affairs.
Martinelli was the president of the Democratic Change party, which he formed in 1998. He led the party and was the presidential candidate during the 2004 general election, when his party came in last; Martinelli received 5.3% of the vote and came in fourth place in the election.
Martinelli was the leader of Democratic Change and presidential candidate in the 2009 general election. He ran on a pro-business platform, promising to cut political corruption and reduce violent crime and spent an estimated $35 million on promoting his campaign. By Election Day, Martinelli was the favorite to win the election, with opinion polls giving him a double-digit lead over the ruling Democratic Revolutionary Party (PRD)–People's Party coalition. He had the support of the Alliance for Change, a group of political parties that includes his own Democratic Change party, the Panameñista Party, the Nationalist Republican Liberal Movement, and the Patriotic Union Party.
His main opponent was PRD candidate Balbina Herrera. Though initially the favorite, she was damaged in the election by her links to former military ruler Manuel Noriega and by the perception that she was a "Chavista", a supporter of leftist Venezuelan president Hugo Chavez. Martinelli was also helped by strong support from the business community.
On May 3, 2009, Martinelli won the national election by a landslide, with over 60% of the votes, thanks to the alliance with who would be his vice president, Juan Carlos Varela, who contributed the votes of the Panamanian party, 22.2% of the total, compared to Herrera, who received about 36%. Former president Guillermo Endara finished a distant third. This was the second-largest majority in Panamanian history and the largest since 1989. Martinelli's victory was an exception to a trend of victories for left-leaning Latin American candidates. He was sworn in on July 1, 2009.
Presidency (2009–2014) Martinelli served as president from 2009 through 2014.
Under Martinelli, Panama enjoyed high economic growth. As reported by The Economist in 2012, "though it lies in Central America, the poorest and most violent region in the West, the country's 3.6m citizens are now richer than most Latin Americans." The following year, The New York Times stated that "Panama [was] booming, with an average economic growth of 9 percent in [the past] five years, the highest in Latin America."
This prosperity widely benefited Panama, with unemployment declining from 6.6% to 4.1%. Income disparity also declined: according to The Economist, "the incomes of the poorest 10% are now 35 times lower than those of the richest 10%, rather than 60 times lower, according to the finance ministry." Gross domestic product (GDP) grew by nearly half, while GDP per capita rose 11%, from $9,982 in 2010 to $11,036 in 2014.
Martinelli introduced a number of measures designed to alleviate poverty, including a $100 monthly pension for the elderly, an increase in the minimum wage, and subsidies for students to meet the cost of uniforms and supplies. He also increased the minimum wage, making it the highest in Latin America.
He also implemented measures to help Colón, an impoverished city on the Gulf Coast. This included projects like a new highway connecting Panama and Colón, the Canal expansion, construction of a new hospital and other public works intended to help reduce unemployment and poverty. The government also announced a $9 million project to rehabilitate Colón's seaside park.
In 2012, Panama—along with the U.S.—was one of the few countries that voted against Palestine in a key U.N. vote.
Infrastructure investment As of 2010, Martinelli's administration announced plans, ultimately fulfilled during his term, to invest $20 billion over the next four years on infrastructure designed to enhance Panama's role as a global logistics hub and increase foreign direct investment. The plan included greater investment in roads, hospitals, sewers, schools, and a Panama City metro. Fitch Group called the "ambitious public investment program" part of "Panama's highly favorable investment cycle." This plan ended up considerably increasing the public debt of the Panamanian state, which reached 45% of GDP.
The cornerstone of Martinelli's expansion program was the $5.3 billion expansion of the Panama Canal, which was started by his predecessor.
Pro-business policies and tax reform Once during his first year in office, Martinelli proposed and signed into law tax reforms to simplify filings, reduce rates, and improve collection. The number of income brackets was reduced from five to two, the corporate tax rate was cut to 25%, and delinquent collection was outsourced. The tax reform imposed and collected taxes on a large swath of Panama's elite, which had largely avoided significant taxation. The program was not without controversy, however. A spokesperson for Fitch Group defended the tax reform "underpin[ned] the government's commitment to sustainable fiscal policies."
Martinelli oversaw the final approval of the Panama–United States Trade Promotion Agreement, which was signed more than two years before he took office but had not been finalized. Martinelli had designated the completion of this agreement as his top priority upon taking office. The agreement was ratified by the US Congress on October 13, 2011.
He also oversaw, the approval of a comprehensive Association treaty with other regional countries and the European Union.
Through pro-business policies, Martinelli saw through the growth of Panama as an international transport and financial hub. According to The Economist, "Its canal is becoming the backbone of a transoceanic logistics network. Its airline, Copa, connects much of Latin America. Its offshore-banking sector sucks in Latin American money."
Rule of Law Martinelli also undertook efforts to strengthen the rule of law in Panama and to create greater transparency in its institutions, this had some success. According to the New York Times in 2011, " American law enforcement officials, while giving the country credit for improving its police forces and cooperation with international agencies, still consider it a major money-laundering haven." Furthermore, they report that "In the past two years [Panama] has signed agreements with 12 countries, including the United States, to exchange tax and other information upon request, a tool to investigate financial criminals."
In addition, Martinelli upheld and reinforced drug trafficking laws throughout his presidency. In 2012 alone, the Panamanian government seized over 11 tons of cocaine, as reported by IHS.
Panama becomes "investment grade" During Martinelli's term, Panama's sovereign debt rating was upgraded to "investment grade" by Fitch, Moody's, and Standard & Poor's. Fitch had upgraded Panama twice since Martinelli took office, and Standard & Poor's followed its upgrade with a revised "positive" outlook. The Fitch upgrade was described as "a victory for conservative President Ricardo Martinelli, who has pushed two tax reforms through Congress since taking office".
Martinelli's policies contributed to credit upgrades but also robust increases in foreign direct investment (FDI). During his tenure, FDI rose from $1,259.3 billion (in 2009) to $4,651.3 billion (in 2013).
According to the New York Times, direct investment in real estate was exemplified by "the tallest building in Latin America, a 70-story Trump hotel and condo tower," further growth in financial services ("banking is booming") with "well-heeled foreign transplants" spending on local services and goods.
Relations with Venezuela
Reputation Martinelli experienced high popularity ratings during his term of office, at one time in excess of 90%, the highest in the Americas at the time. In 2014, when he was preparing to leave office, his approval rating was still high, at 65%.
The Democratic Change Party, has continued to see strong legislative support: with Martinelli as its leader it continues to hold the biggest bloc of 30 seats, versus 12 seats for Panameñista Party in the 71-seat National Assembly. Martinelli remains the leader of Panama's opposition party.
Martinelli has also been criticized in the local and international media. In 2011, The Economist described the foreign investment as still hurt by "doubts about the rule of law", citing suspected corruption in the bidding for the metro contract and the flooding of a wealthy Panama City neighborhood with sewage due to a lack of enforcement of planning laws.