ABSTRACT

Panama: Political and Economic Conditions and U.S. Relations [March 1, 2011]   [open pdf - 450KB]

"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. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's Alliance for Change coalition also captured a majority of seats in Panama's National Assembly. Panama's service-based economy has been booming in recent years, largely because of the ongoing Panama Canal expansion project (slated for completion in 2014), but economic growth slowed in 2009 because of the global financial crisis and U.S. economic recession. Nevertheless, the economy rebounded in 2010, with a growth rate approaching 7%, and strong growth is continuing in 2011. President Martinelli still retains high approval ratings, but he has been criticized by some civil society groups for taking a heavy-handed approach toward governing and for not being more consultative. The country experienced labor unrest in July 2010 after the government approved legislation that would have allowed companies to suspend contracts of striking workers and hire replacement workers during strikes, but the government ultimately agreed to repeal the provisions. In February 2011, the government amended the country's mining law to allow foreign investment. Indigenous groups have protested the change even though President Martinelli has vowed that his administration would not approve any mining concessions in indigenous areas."

Report Number:
CRS Report for Congress, RL30981
Author:
Publisher:
Date:
2011-03-01
Series:
Copyright:
Public Domain
Retrieved From:
Via E-mail
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations