A knight on the rim is grim…
The tree most important things in trading are location, location and location. The power of entities, individuals and ideas are dependent upon their location. Dominating the center gets you close to everything for the deepest you can go into the forest is the center. Spiders are usually on the alert at the “hub” to monitor vibrations, for most vibrations will usually pass by the center first. When compared to their counterparts in the north or south, places in the center (tropics) are never too far from the sun throughout the year, therefore, they don’t get cold winters. Figuratively speaking, the “middle man” is the most important player in commerce for it is the one enabling the bridge that makes business possible.
The most democratic gesture in commerce as far as sharing the burden of moving goods is to meet halfway with the counterpart, this will of course vary depending on the pre-established business agreement, but for the most part finding a “mid” ground is customary when interacting with a party we have common interest with.
During meetings at a table, where the theme of equality amongst the members was important, they would use a round table for fostering the feeling. Seldom times this round table would have something placed in the middle, but when it did it would usually be candles or food. The food placed right in the middle represents everyone’s same right and distance from resources; the candles in the middle represents everyone’s same amount of illumination and distance from the main source of light.
Throughout history -particularly in the ancient and medieval periods- opposing armies often sent emisaries or commanders to speak in a “middle a ground” an area also referred to as “no man’s land”, the purpose of this encounter was to discuss terms, negotiate truces, or establish rules of engagement, this process was commonly known as parley.
“Parece que si el mundo hubiese de elegir su capital, el Istmo de Panama seria señalado para este augusto destino”
Nowadays wars are not fought with guns but with marketing tactics. The main goal is not to seize land but to gain clients.
One way or another the purpose is the same; to gain power and dominion over the adversary. In both scenarios -old styles of war or new age war- superior logistics guaranteed victory. Having on demand supply for food and articles of basic need certainly secured the survival of your people. The few armies educated on the art of war would sometimes capitalize on resources and logistics principles and win the conflict.
Armies frequently locked themselves around a fortified city or castle and waited for the enemy to to starve, a classic, highly effective, and brutal method of siege warfare used throughout history.
These tactics were extremely effective, causing some enemy troops to desert, surrender or even switch sides. Not having resources on time or not having resources at all has the same impact on clients. Protectionism, in commercial warfare, has the same objective of siege warfare, however, just like in ancient times the kingdom or fortress must be highly efficient resourceful and independent.
In this new commercial modern warfare era where would that perfect middle ground be? Where do the masses of water and continents meet?
Apparently the answer to these questions where known since the start of the 19th century. The idea was delivered by one of the most influential minds of the times; a South American native creole by the name of Simon Bolivar. He believed the isthmus of Panama in Central America was destined for this purpose, that it should serve as the hub for unity, trade and have strategic importance in world affairs.
The world of commerce is dominated by stocks (a subset of inventory specifically referring to finished products ready for sale to customers), logistics, and maritime trade among others. The position of the isthmus of Panama being in the middle of the new world’s sea routes, turns out to be the perfect location for the spider web of communications, stock, reprocessing, rework and distribution for the Americas. The isthmus is the keystone of the commercial bridge and holds the potential for the largest common goods station in the west. It serves as the perfect oasis and middle ground for economic warfare, for loyal troops that don’t want to desert.
Key takeaways:
*Approximately 80% of global trade by volume is transported by sea *Approximately 16% of the world’s merchant ships fly the Panamanian flag. Panama operates the largest registry because of being the “flag of convenience”, offering low cost, fast registration and relaxed regulation. * Approximately 40% of all USA containerized traffic travels through the Panama Canal, with the USA being the largest user representing 70% of total canal traffic by volume.
But Commerce is not without a sense of irony…
–Despite having the staff and the largest flag registry Panama doesn’t own any ships.
-Despite holding the keys to the gates of international commerce, Panama’s unemployment rate is higher than the one in the USA.
-Despite having the best location for distribution in the world, it doesn’t have any major distribution company in its territory.
Thanks to the painters that inspired this article: “The Devil’s Checkmate” 1831 by Friedrich Moritz August Retzsch. “Simon Bolivar” 1922 by Luis Toro Moreno. “The Raft of Medusa” 1818-1819 by Theodore Gericault.