Political Rights: 1
Civil Liberties: 2
Status: Free
Population: 3,000,000
GNI/Capita: $3,260
Life Expectancy: 74
Religious Groups: Roman Catholic (85 percent), Protestant (15 percent)
Ethnic Groups: Mestizo (70 percent), West Indian (14 percent), European (10 percent), Amerindian (6 percent)
Capital: Panama City


Overview

Though Panama's presidential elections are scheduled for May 2004, early electioneering dominated the national scene during 2003. President Mireya Moscoso's government has been unable to improve economic growth or seriously reduce dishonesty. The effects of the civil war in neighboring Colombian continued to spill over throughout the year.

Panama was part of Colombia until 1903, when a U.S.-supported revolt resulted in the proclamation of an independent Republic of Panama. A period of weak civilian rule ended with a 1968 military coup that brought General Omar Torrijos to power. After the signing of the 1977 canal treaties with the United States, Torrijos promised democratization. The 1972 constitution had been revised to provide for the direct election of a president and a legislative assembly for five years. After Torrijos's death in 1981, General Manuel Noriega emerged as Panamanian Defense Force (PDF) chief; he subsequently rigged the 1984 election that brought to power the Revolutionary Democratic Party (PRD), then the political arm of the PDF. The Democratic Alliance of Civic Opposition (ADOC) won the 1989 election, but Noriega annulled the vote and declared himself head of state. He was removed during a U.S. military invasion, and ADOC's Guillermo Endara became president.

In May 1999, Mireya Moscoso, the widow of three-time president Arnulfo Arias and herself an unsuccessful presidential candidate in 1994, won 44.8 percent of the vote, more than 7 percent above the amount garnered by her rival, Martin Torrijos, son of Omar Torrijos, as the head of a PRD-led coalition. In the years following the U.S. handover in 1999, the Panama Canal continued to operate smoothly, although the departure of the remaining U.S. troops and the closure of U.S. military bases meant the loss to Panama of some $250 million in revenues.

President Moscoso's government continues to be hampered by its inability to effectively reduce corruption and incompetence in the public sector. There is generalized discontent with the government's efforts to fight corruption and with its running of the state and handling of the economy. High unemployment and underemployment are among the principal concerns among Panamanians.

Early electioneering has begun in anticipation of the general elections in May 2004, and has built upon the popular disappointment with the government's overall performance. The leading candidate is Martin Torrijos, but former president Guillermo Endara is also in the running. Several polls conducted by the Latinobarometro and CID-Gallup gave failing job ratings to the government, leaving no branch unscathed. A celebration of the country's 100 years of independence was marred by partisanship as well as widely broadcast comments over the country's corruption.

Effective governability is in question as armed violence has increased significantly in Panama in the past several years. Weekend police checkpoints are now commonplace both in Panama City and in crime-ridden Colon, although the country remains relatively safe when compared with many of its regional neighbors.

Repeated incursions into Panamanian territory by Colombian guerrillas, self-defense armed irregulars, and drug traffickers continue to spark concerns in the region about the spillover effects of Colombia's civil war. Since being invaded by the United States in 1989, Panama has had no military. It relies on the police to provide both internal security and defense of its borders. Dozens of confrontations between armed Colombian groups and the Panamanian police, who suffered several injuries as a result of the fighting, raised questions about whether the latter are up to the challenge provided by the seasoned Colombians. In October 2003, the Coordinadora Nacional de Pueblos Indigenas de Panama warned that indigenous people in the border with Colombia were victimized by armed groups active in the Darien region.

Political Rights and Civil Liberties

Panama's citizens can change their government democratically. The 1999 national elections were considered free and fair by international observers. The constitution guarantees freedom of political organizations. In early 1999, Panama's largest political parties agreed to ban anonymous campaign contributions in an effort to stem the infiltration of drug money into the political process. Nevertheless, the widespread corruption of the governmental apparatus indicates the difficulty in enforcing any such bans. In November, accusations resurfaced that President Mireya Moscoso's campaign had received suspect contributions.

Panama's media include an assortment of radio and television stations, daily newspapers, and weekly publications. There are 5 national dailies, 4 private television stations, 2 educational television broadcasters, and 100 or so radio stations. Restrictive media laws dating back to the regime of General Manuel Noriega remain on the books. The law permits the government to prosecute individual reporters and media owners for criminal libel and calumny. Officials can remand anyone who defames the government to jail without trial. A censorship board can fine radio stations for use of abusive language. There is free access to the Internet.

Freedom of religion is respected, and academic freedom is generally honored.

The judicial system, headed by the Supreme Court, was revamped in 1990. However, it remains overworked and its administration is inefficient, politicized, and prone to corruption. An unwieldy criminal code and a surge in cases, many against former soldiers and officials of the military period, complicate the judicial process.

The Panamanian Defense Force (PDF) was dismantled after 1989, and the military was formally abolished in 1994. However, the civilian-run Panamanian Public Forces (the national police) that replaced the PDF, although accountable to civilian authorities through a publicly disclosed budget, are poorly disciplined and corrupt. There are four components: the Panamanian National Police, the National Maritime Service, the National Air Service, and the Institutional Protection Service. Criminal investigations are the responsibility of a semiautonomous Judicial Technical Police. Like the country's prison guards, officers frequently use "excessive force." The penal system is marked by violent disturbances in decrepit facilities packed with up to eight times their intended capacity. About two-thirds of prisoners face delays of about 18 months in having their cases heard.

Nongovernmental organizations are free to organize. Labor unions are well organized, but only 10 percent of the labor force is unionized. However, labor rights were diluted in 1995 when President Ernesto Perez Balladares pushed labor code revisions through congress. Furthermore, the government has issued decrees that do not allow union organization in export processing zones.

Discrimination against darker-skinned Panamanians, especially those from Colon, is widespread. The country's Asian, Middle Eastern, and Indian population is similarly singled out. Indigenous populations continue to be marginalized and often do not speak Spanish. Their living conditions are significantly lower than those of the general population and they face significant discrimination in employment. Since 1993, indigenous groups have protested the encroachment of illegal settlers on Indian lands and delays by the government in formally demarcating the boundaries of those lands. Indian communities do enjoy, however, a large degree of autonomy and self-government.

Violence against women and children is widespread and common. Panama is both a destination and a transit point for human trafficking.

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