Panama  

Panamanian workers have access to a moderate level of physical capital, such as offices and productive machinery, placing the country in 61st place for this variable. Unemployment, inflation, and domestic savings rates are near the global average at 9% and 4%, and 28% of GDP, respectively. Household expenditure, however, is low, ranking the country 74th for this variable. Both the low proportion of loans in default and the low interest margin of almost 3.1 percentage points indicate high levels of banking competition and efficiency. However, a raw material concentration of 68% indicates a high dependence on commodities, placing the country among the last 10 on this variable. Foreign direct investment as a share of GDP is rather high at a rate of 10%, while the country’s terms of trade are very strong, ranking the country ninth, globally.

Barriers to entry for new business are low, with limited numbers of procedures required to start a business, and value added in service industries is high, ranking the country eighth on this latter variable. However, despite having the 30th highest number of secure internet servers in the Index, Panama’s level of internet infrastructure, as measured by bandwidth, is average and access to personal computers is limited, with only 46 per 1,000 people. ICT exports as a share of exported goods are at just 0.25%, ranking Panama 74th, internationally, while high-tech exports are very low, placing Panama in the bottom 10 countries, worldwide. At 0.2% of Panama’s GDP, R&D expenditure is also comparatively low, as is the level of royalty receipts, ranking the country 76th.

Panama’s citizens enjoy high levels of political and civil rights, illustrated by their freedom to participate in political processes and express beliefs and ideas without fear for personal security. Panama has well-regulated executive elections and good levels of open political competition among multiple parties in both the executive and legislative branches. The political system in Panama is characterised by significant checks and balances, ranking the country 30th on this variable. However, the country lacks a fully-dependent judiciary and shows low regime stability, with the last change in the political system having occurred less than 20 years ago.

Panama has a high level of gender equality in primary school enrolment, but class sizes are above the global average, with 25 students per teacher. Secondary and tertiary school enrolment rates are moderate, at 70% and 45%, respectively. Panama’s workforce is well educated, with moderate years of secondary education and high levels of tertiary education per worker, placing the country 61st and 17th, respectively. Panama’s expenditure per student at both primary and secondary levels is moderate at approximately $1,500, ranking Panama 53rd on this variable.

Panama provides an average number of doctors and nurses per capita and has a high score in terms of access to sanitation facilities. It also provides an average number of hospital beds, with 22 available beds per 10,000 people. Panamanians’ health-adjusted life expectancy is 66 years, which ranks the country 33rd, globally. However, malnourishment rates are comparatively high, ranking the country 82nd, and infant mortality rates are moderate at 19 deaths per 1,000 births. Overall, 89% of Panamanian respondents are satisfied with their health, with 80% claiming satisfaction with the quality of water, only one out of five respondents experiencing pain the previous day, and 77% stating they are well rested.* Furthermore, the number of reported health problems is low, placing Panama among the top 20 countries in this variable.*

Legacies of group discrimination and other grievances as well as human flight from dangerous or degrading conditions constitute significant security problems in Panama. Furthermore, challenges related to refugees and internally displaced individuals rank the country 35th, globally. Insecurity in terms of state-sponsored violence and torture is limited, ranking in the top quartile, globally, and Panama suffered no casualties due to civil or ethnic war in 2008. Only 12% of respondents had property stolen in 2008, and just 7% were assaulted or mugged. In addition, 56% of Panamanian citizens feel safe to walk alone at night, ranking the country 63rd for this variable. However, the homicide rate is comparatively high, with 124 deaths per one million people, ranking the country 73rd, internationally.

Rule of law is enforced unequally and inconsistently in Panama, ranking the country 57th overall. However, Panama’s citizens enjoy freedom of political participation and have the right and ability to change the laws and officials that govern them. The quality of regulation of economic and commercial activity is high, while the policy and institutional framework of government is moderately developed. A confidence level of 41% amongst respondents indicates very low trust in the military.* Furthermore, approximately nine out of 10 respondents express concern about corruption in local businesses and government, ranking 75th and 81st, respectively.* Similarly, only 31% of respondents are confident in the judiciary and just 42% believe in the honesty of the elections, ranking Panama 89th and 60th, globally.*

Panamanian citizens have moderate freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country, placing the country 40th on these variables. More than six out of 10 citizens believe that Panama is a good place for immigrants and ethnic minorities, a figure near the global average.* Approximately three out of four Panamanians are satisfied with their freedom of choice, placing Panama just outside the top 50 countries.*

The majority of Panamanian respondents believe they can rely on family and friends to assist them in times of need.* Panamanian citizens are moderately generous, with 36% of respondents having donated money in 2007 and one in five having volunteered.* Moreover, there is a high rate of individuals who claim to have helped a stranger, placing Panama 27th on this variable.* Citizens report high levels of religious practice, such as personal religious activities and membership of religious organisations, ranking the country 32nd on religiousity and suggesting widespread access to religious support networks.* Data on trust, importance of friends, and group membership were unavailable.

* Data taken from the Gallup World Poll

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