Country Profile
From The Report: Panama 2015
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Though one of Latin America’s fastest growing economies, Panama’s political situation stands in contrast to its economic performance. The past decade has seen sustained economic growth, while institutional development struggled to keep pace. Though more than two decades of peaceful democratic transfers of power have facilitated economic development, Panama is now faced with the challenge of maintaining steady growth while overcoming a number of hurdles, in particular marked social inequality and a lagging education system. The government of Juan Carlos Varela has placed particular emphasis on social programmes and the fight against corruption, a move expected to lead the country to improved governance and less social inequality. Though it is too soon to judge the overall effectiveness of the current administration’s efforts to create a more transparent government, by and large the encouraging trajectory of the Central American republic looks set to continue in the future.

This chapter features interviews with Isabel de Saint Malo de Alvarado, Vice-President and Minister of Foreign Affairs; Victoria Marina Velásquez de Avilés, Secretary General, Central American Integration System (SICA); Gina Montiel, Manager, Central America, Mexico, Panama, and the Dominican Republic, Inter-American Development Bank.

Articles from this Chapter

Overview

Melting pot: The country is at a crossroads of history and culture
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For millions of years the Isthmus of Panama has been the bridge adjoining the Americas, shaping the development of life on the continent. Its importance has been magnified in recent centuries, as it is also the shortest land route for maritime goods crossing from the Atlantic to the Pacific and vice-versa. As a result, the isthmus has played a vital role in enabling the movement of native people in early history, aiding the flow of natural resources in colonial times, and drastically altering global…

Overview

Forging forward: Building on decades of reforms and expansion
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Though one of Latin America’s fastest growing economies, Panama’s political situation stands in contrast to its economic performance. The past decade has seen sustained economic growth, driven by the transport, services and banking sectors. More recently, expansion of the canal and other large public spending infrastructure projects have set the pace of economic development. By contrast, institutional development has struggled to keep pace. Though more than two decades of peaceful democratic…

Interview

Isabel de Saint Malo de Alvarado, Vice-President and Minister of Foreign Affairs: Interview
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Interview:Isabel de Saint Malo de Alvarado How can Panama manage public resources to contribute to its long-term national development goals? ISABEL DE SAINT MALO: The most important way to improve public resource management is transparency and respect for the rule of law. Therefore, access to public information is key. Our administration has chosen a non-partisan head of a state agency to monitor access to public information. We are also making efforts to share all information regarding possible…

Interview

Victoria Marina Velásquez de Avilés, Secretary- General, Central American Integration System (SICA): Interview
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Interview:Victoria Marina Velásquez de Avilés How can SICA capitalise on its commercial agreements with multilateral organisations in the region? VICTORIA MARINA VELÁSQUEZ DE AVILES: SICA focuses on its communitarian and supranational nature in order to strengthen social cohesion and quality of life among its peoples. The path we have chosen is a constant, gradual process of regional integration, with the support of intergovernmental institutions and cooperating partners. Such support…

Analysis

Increasing transparency: Taking steps towards greater accountability
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For decades, many countries in Latin America struggled with corruption, and Panama is no exception. Corruption has become more prevalent in the country’s psyche, however, as more Panamanian officials, including former president Ricardo Martinelli, were indicted recently for a series of alleged corrupt activities. A New Leaf Though many Panamanians grew accustomed to official impunity during the decades of military rule before the transition to democracy in 1989, the Panamanian public has since…

Interview

Gina Montiel, Manager, Central America, Mexico, Panama and the Dominican Republic, Inter-American Development Bank: Interview
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Interview:Gina Montiel How can Panama broaden its energy mix? GINA MONTIEL: Broadening the energy mix requires policies geared towards expanding generating capacity and diversifying sources. Availability of power has been outpaced by demand, so expanding capacity is key to maximising the economic potential of the Canal Zone. Demand is currently close to 2500 MW, 48% of which is met by hydropower. In fact, inefficiencies and droughts have driven capacity as low as 1600 MW and occasionally…