Panama
Panama performs at the high range in Representation and in the mid-range in Rights, Rule of Law and Participation. It is among the top 25 per cent of countries regarding several factors of all four categories. Compared to 2018, it has maintained steady performance, only declining in Economic Equality. Panama is an upper-middle income country with an economy centered around the services sector, which includes the Panama Canal and financial services.
Panama gained its independence from Spain in 1821 and seceded from Colombia in 1903. Politics are largely driven by unrest about corruption and related concerns about poverty and inequality. The economy has been particularly vulnerable to external shocks in recent years, leading to inflation, growing unemployment, and skyrocketing fuel prices. This pushed Panamanians to a boiling point, starkly illustrated through a 2022 protest that blocked the Pan-American Highway, in which protesters called for price caps on food and increased government spending on education. Corruption is a significant problem in Panama: it is estimated that the country loses about one per cent of its GDP to corruption each year. Further, changes in 2021 and 2023 to the electoral code have been criticized for being adopted without sufficient transparency, for favoring larger political parties, and in the case of the latter reform, for changing electoral rules within less than a year of general elections. Between 1989 and 2004, the center-left Revolutionary Democratic Party and the nationalist Panameñista Party were the main players in the country’s politics. The 2009 election of the Democratic Change candidate shifted Panamanian politics from a two-party system to wider competition. Division within the latter led to the creation of the current ruling party, the conservative Realizing Goals (Realizando Metas).
The majority of Panama’s population is Mestizo, with Indigenous, Black and Mulatto minorities. Indigenous peoples make up roughly 17.2 per cent of the population and have a significant degree of autonomy, with six self-governed comarcas in the country. Remote Indigenous communities, however, often lack access to basic services, and large-scale development projects encroach on indigenous land without consent. Indigenous and rural communities are particularly affected by extraction activities on the environment, an increasingly salient issue, as evidenced in the 2023 mass protests against a controversial mining contract, which was eventually struck down by the Supreme Court. Afro-Panamanians, who make up around 30 per cent of the population, face disproportionate levels of unemployment, poverty, illiteracy, and discrimination in practice. In the past years, migration has become a social cleavage, as Panama is used as a transit route. In 2023, a record number (over half a million) of irregular migrants entered the country through the Darien Gap, an increasingly dangerous route, testing the government’s preparedness to meet the demand for services and ensure migrants’ safety .
Despite having a legal framework that promotes and monitors gender equality, the Covid-19 pandemic exposed gender-based vulnerabilities, including a rise in domestic violence and femicide during this period. Women’s political participation and representation remain a challenge. Although the electoral code requires parity in nomination of candidacies, normative flaws allow for parties to bypass this obligation. In the May 2024 elections, only 19 per cent of candidacies were held by women.
In the coming years, the recently elected government’s efforts to strengthen the rule of law and tackle corruption will be key in order to address one of citizens’ most pressing demands. It will also be important to watch Panama’s measures to improve Economic Equality, as challenges to alleviate poverty, particularly for Indigenous peoples, Afro-Panamanians, children and adolescents, remain.
Last Updated: June 2024
https://www.idea.int/democracytracker/
May 2024
José Raúl Mulino is elected President
On 5 May, Panama held elections to choose its president, members of the National Assembly, members of the Central American Parliament, mayors and other local leaders. José Raúl Mulino was elected president with the support of 34.3 per cent of voters, nearly ten percentage points ahead of second place Ricardo Lombana. Former president Martin Torrijos came in third place, while the ruling Revolutionary Democratic party (Partido Revolucionario Democrático) candidate only attained around 5.8 per cent of votes. Mulino entered the race as the candidate for the Achieving Goals (Realizando Metas) opposition party after the original candidate, former President Martinelli, was deemed ineligible for having been convicted for money laundering. Just days before the election, the Supreme Court confirmed that Mulino could run for president, denying a challenge to his eligibility for not having participated in his party’s primary process.
In Congress, independent candidates earned enough seats to become the largest group in the Legislature. According to preliminary results, 15 women were elected to the National Assembly out of 71 members (one less than in the previous legislature). Voting is mandatory but not enforced in Panama, and electoral participation was around 78 per cent (up five percentage points compared to 2019).
Sources: El Pais, Organization of American States, EFE, The Guardian
March 2024
Electoral Tribunal confirms ineligibility of former president
The Electoral Tribunal confirmed the ineligibility of former president Ricardo Martinelli to run in the upcoming presidential election, given his criminal conviction for money laundering, ratified last month by the Supreme Court. Martinelli, who is currently seeking asylum in the Nicaraguan embassy, had appealed his ineligibility after the Tribunal first decided on the matter in early March. The Tribunal further determined that Jose Raul Mulino, who was Martinelli’s running mate, can hold the presidential candidacy for the Realizando Metas (RM) and Alianza alliance. The Tribunal determined Mulino will appear on the ballot without a running mate, a decision criticised by some analysts as a restrictive interpretation of the law.
Further, a lawyer filed a constitutional appeal before the Supreme Court against Mulino taking over the presidential candidacy for RM and Alianza, in which it is argued that because Mulino did not participate in a primary as a presidential candidate, it contravenes party rules and the constitution.
Sources: EcoTV Panama, Destino Panama, Metro Libre, International IDEA
February 2024
Former President Martinelli sentenced to 10 years for money laundering
The Supreme Court confirmed former President Ricardo Martinelli’s conviction for money laundering as well as his 10.5-year sentence. The Court’s ruling results in Martinelli’s ineligibility to run in Panama’s upcoming presidential elections, given that the sentence imposes more than five years imprisonment. Martinelli had won the primaries of his political party, Realizando Metas, last June. The ruling comes days before electoral campaigns officially commenced and is related to Martinelli’s involvement in corruption schemes for which he had been arrested years prior in the United States and subsequently extradited. He is the first former president of Panama to be convicted for money laundering.
Sources: La Prensa Panamá, France 24
November 2023
Supreme Court strikes down controversial mining contract
Following more than a month of mass protests and criticism over its approval process, the Supreme Court declared the unconstitutionality of Law 406, which granted Canadian company First Quantum Minerals a 20-year concession to extract copper from a biodiverse, protected area. Among other issues, the Court found that the contract violated 25 articles of Panama’s constitution, including the constitutional protection to human rights such as the right to life, health, and to a safe and healthy environment free from pollution. As a result, Minera Panama — Central America's largest open-pit copper mine, will be closed.
Environmental activists, teachers, union leaders and Indigenous Peoples had joined massive protests blocking main highways and port access to the mine.
Critics argued the contract would negatively impact the environment and access to water for communities, and strongly opposed the lack of public consultation around the bill.
President Laurentino Cortizo said his government would abide by the ruling, while the Canadian company expressed it would seek arbitration, defending the contract’s validity and benefits, including cash inflow and thousands of jobs.
Sources: El Pais, Panama America, La Prensa, La Estrella de Panamá
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