Panama: Political and Economic Conditions and U.S. Relations
Abstract
With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Ricardo Martinelli of the centrist Democratic Change (CD) party was elected in May 2009, defeating the ruling Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a fiveyear term on July 1, 2009. His Alliance for Change coalition also captured a majority of seats in Panama?s National Assembly that will increase the chances that the new President will be able to secure enough votes to enact his legislative agenda. One of the most significant challenges facing the Martinelli government is dealing with the economic fallout stemming from the global economic recession. Panama?s service-based economy had been booming in recent years, largely because of the Panama Canal expansion project, but the global financial crisis and the related decline in U.S. import demand stemming from the U.S. recession has begun to slow Panama?s economic growth. During the presidential campaign, Martinelli pledged to simplify the tax system by the introduction of a flat tax in order to discourage tax evasion. He also has called for a number of large public infrastructure projects, including a subway system for Panama City, a light rail system on the outskirts of Panama City, regional airports and roads, and a third bridge over the Canal. These and other expenditures could prove difficult as the country continues to feel the impact of the global economic recession.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 15, 2009
- Accession Number
- ADA503785
Entities
People
- Mark P. Sullivan
Organizations
- Library of Congress