Panama - 74.46

43

A graft society

Panama is significantly freer, wealthier, and more democratic than its score reflects. Panama’s democracy is more robust than Norway, New Zealand, or Austria. They are leagues freer than the United Kingdom and handily outscored Mauritius and Australia. Their economy, while not standout, is stronger than the economy of Costa Rica, a country that outscored Panama by more than fifteen points. The key issue that Panama faces is corruption. Panama was tied for corruption with Viet Nam, Kazakhstan, and Lesotho. The Odebrecht Scandal indicted two former presidents. Anticorruption packages get caught up in checks and balances and graft exists at nearly all levels of Panamanian society. The country is a tax haven and draws a significant income from holding the foreign assets of oligarchs and legitimate businessmen alike wishing to hide their money from their home governments. Panama also struggles with an unprecedented migrant crisis, as migrants make the dangerous voyage through the Darien Gap, a completely undeveloped stretch of jungle in Northern Colombia and Southern Panama. Along with migrants drug smugglers also cross this dangerous stretch of jungle to run drugs up the Central American subcontinent to Mexico. Panama, a nation both troubled and successful, will not better its situation without eliminating the corruption that plagues it.

Human Rights - 71

Panama has fully abolished the death penalty. Prisons in Panama suffer from poor conditions. Prisons were overcrowded throughout the year and lacked adequate staff, with many prisons more akin to self-regulating colonies than penitentiaries. Pre-trial detainees were held with convicts due to a lack of space. Prisoners lacked adequate access to medical facilities and sanitation supplies. Homosexuality is legal and trans Panamanians can change their legal gender without sex reassignment surgery but there are no other rights or protections. Abortion is legal to save the woman’s life and in cases of rape, incest, and fetal impairment.

Democracy - 97

The president is directly elected and can seek unlimited nonconsecutive terms but cannot seek re-election from office. The assembly is directly elected. Elections are free and fair and Panama is home to a strong multi-party system. LGBT are disenfranchised.

Freedom - 81

Libel is a criminal and civil offense occasionally used to silence journalists. Defamation and insult are also defined under Panamanian criminal law but are unenforced. Journalists critical of the government occasionally faced barrages of frivolous lawsuits designed to bleed them financially. Catholicism is the official religion but freedom of religion is guaranteed. Panamanian drug laws go generally unenforced and Panama is a major part of the American cocaine run. Panama shall issue gun ownership licenses for semi-automatic rifles and handguns. Panama issues concealed carry and self-defense permits.

Economy - 76

Health - 81

Panama has a life expectancy of 79 years and an infant mortality rate of 1.23%. 22.7% of Panamanians are obese and 3.7% are malnourished. Panama’s universal healthcare system provides free care to all Panamian citizens that deteriorates in quality moving away from major urban areas. 92% of Panamanians have access to clean, running water. Panama has minor problems with some mosquito-borne tropical diseases, namely zika.

Corruption - 17

The Panamanian justice system rarely, if ever, convicts on corruption charges. Former Presidents Ricardo Martinelli and Juan Carlos Varela were both indicted in the Odebrecht Scandal. Martinelli was arrested in the United States and extradited back to Panama, where he was acquitted upon arrival. Martinelli was later arrested in Guatemala and extradited to the United States, where he pled guilty to corruption charges. Varela is accused of embezzlement but his trial has not yet concluded. Attempts to pass anti-corruption legislation are often caught up in checks and balances, with legislative attempts blocked by the executive branch and vice versa. Police bribery is common and public services must be bribed into action. Public contracts at all levels are impossible to obtain without corruption.

Competency - 64

The government is failing to provide for the rural population and control corruption.

Future - 76

While Panama’s future is bright it is doomed to a level of stagnation if it does not rectify the corruption that has plagued it since independence. The current administration of President Laurentio Cortizo aims to crack down on corruption and has not suffered any major corruption scandals of its own. The Panamian economy took a major hit due to COVID and will likely take several years to recover.

Actions Abroad - 79

Panama does not maintain an expeditionary military force. The Panamian military was dismantled following the US invasion and Panama now falls under the military protection of the United States. Panama is a tax haven. Panamanian banks have been involved in a number of high-profile money laundering and corruption scandals in recent years. Panama severed relations with Taiwan in favor of China after receiving a large foreign investment package. Panama recognizes the independence of the Sahrawi Arab Democratic Republic from Morocco. Panama maintains very good relations with and falls under the military protection of the United States. Panama received a ten point penalty for being a tax haven.

1.2% of Panamanians live under the international poverty line and 38.3% live under the national poverty line. 9.55% of Panamanians are unemployed. Panama has some of the highest economic disparity in the world. The minimum wage varies by sector but the lowest is $1.22 per hour. Panama maintains a decent universal healthcare system. Healthcare is provided for free to all Panamanian citizens and is of very high quality in Panama City. Other cities also have high-quality care but quality declines moving into rural areas and moving away from Panama City. Most wealthy Panamanians pay for private healthcare. Panama’s economy shrunk 17.9% in 2020 and grew 3.7% in 2019.