"Panama remains a country marked by inequality."

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Transcript of Karina Batthyány's column
in InfoCLACSO – May 15, 2024

Today, we will analyze the face of inequality in Panama, a nation that serves as a bridge between continents and a commercial epicenter thanks to the iconic Panama Canal. The Central American country finds itself at a critical juncture in its history, both politically and socially, due to the recent electoral victory of José Raúl Mulino, which signifies a shift to the right.

What is happening with inequality in Panama? Despite the economic growth it has experienced in recent decades, it remains a country marked by inequality and various disparities among its population. The wealth generated by, for example, the Panama Canal and the financial sector—one of the country's primary economic activities—is not distributed equitably among its citizens. According to World Bank data, income inequality in Panama is reflected in a very high Gini coefficient, indicating a significant gap between the richest and the poorest and a problem with how resources are allocated in the country.

Rural areas and indigenous communities are the most affected by the unequal distribution of resources, income, and assets in Panama. They are also affected by poverty and lack adequate access to basic welfare services, such as education and healthcare, among others.

In the capital, Panama City, one can see opulence, grand buildings, and modernity—a stark contrast to the reality of other areas, particularly more marginalized neighborhoods, where opportunities are scarce and social mobility is severely limited. While a minority enjoys high incomes and a high standard of living, a large portion of the population faces significant economic hardship.

According to the Gini coefficient, Panama is among the countries with the greatest inequality in our Latin American and Caribbean region. This implies significant differences in access to the basic conditions for individual well-being, which ultimately contribute to social well-being. We also observe geographical inequalities; geography plays an important role in the distribution of territory, the distribution of wealth, and access to these basic services.

In Panama and other urban areas, we have the largest investments, the greatest economic development, and the greatest provision of services. In contrast, rural areas and indigenous communities suffer from a chronic lack of basic infrastructure such as access to drinking water, roads, communication routes, and electricity, which only perpetuates the cycle of poverty and the impossibility of social mobility. Furthermore, many indigenous communities exhibit alarming levels of child poverty and factors associated with malnutrition and developmental problems in childhood.

In terms of education, access to and quality of education also vary significantly across the country's regions and territories, depending on socioeconomic level. Generally speaking, schools in urban areas have better infrastructure, are better equipped, and have more highly trained teachers compared to rural and indigenous areas. This educational inequality perpetuates the cycle of poverty, depriving children in disadvantaged regions of their rights and opportunities to access primary, secondary, and higher education. We also know the link between education and opportunities for personal development, in terms of entering the labor market and obtaining decent, quality, and well-paid jobs.

Gender inequalities are not absent in Panama; on the contrary, women in Panama face significant inequalities in various dimensions. As in other Latin American countries, there has been some progress, but a substantial gender pay gap of around 30% persists. Furthermore, women are underrepresented in various leadership positions, both in the public and private sectors, and gender-based violence is undoubtedly another issue.

Furthermore, if we look within the Women's Collective, rural and indigenous women still face additional barriers due to a lack of access to essential resources, services, and items.

In terms of health, we find inequalities in access to healthcare services, with a significant gap between urban and rural areas. Quality medical services are more readily available in urban areas, particularly in the capital, while access to healthcare is very limited in rural areas. This has direct consequences for health indicators in Panama, such as life expectancy and infant mortality rates.

We also find inequalities in the workplace: informal workers, who represent a significant portion of the workforce, lack access to basic labor benefits and social protection in general, such as health insurance, retirement benefits, pensions, and protection against dismissal. Furthermore, informal employment is a problem in the country, much more pronounced in rural areas and among lower socioeconomic groups, which only exacerbates their precarious economic and social situation.

I cannot fail to mention the issue of migration in Panama: the expulsion of so-called illegal migrants from Panamanian territory. Let us recall Panama's geographical location within the migration corridor that runs from south to north in the Latin American and Caribbean region. This issue of migration adds another layer of complexity to existing inequalities, as Panama is both a transit and destination country for migrants, presenting challenges in terms of guaranteeing human mobility and the rights of these migrants across the various dimensions of the country's economic, social, and cultural life.

Once again, this concern must be raised regarding migration issues due to the tendency, particularly observed in neoliberal, right-wing, and conservative governments, to criminalize migration. We must reiterate that human mobility and migration are a right, as is the integration of migrant populations—that is, the integration of migrants under conditions of equality and with respect for all their rights in the various communities, both in transit and in their destination.

In short, these inequalities present a significant challenge that requires a multidimensional approach to be sustainable over time. We therefore wonder how many of the aforementioned dimensions will be a priority for the current Panamanian government. We believe that issues of inequality, poverty, and migration will not be central to public policy definition or to the priorities discussed, such as the equitable redistribution of resources, infrastructure improvements for disadvantaged areas within the country, and even less so will they address guaranteeing universal access to basic welfare services like education, health, and employment.

Unfortunately, the election results and José Raúl Mulino's victory raise serious questions about whether these public policy priorities will be addressed. Panama is once again at a crossroads. The decisions made now should be aimed at correcting these historical inequalities so that, from a multidimensional, inclusive, and equitable perspective, we can move toward a fairer country for all its inhabitants.

– In 2023, more than half a million migrants crossed the Darién Gap with tragic results, many of whom were unable to make it through the jungle. Far from considering a system to compensate for the hardship of crossing in desperation, the president-elect's statements propose repression and blockades. InfoCLACSO was in Panama last year during large-scale street protests against mining, and all indications are that Mulino is already in talks with several mining companies to reactivate their operations, which opens up numerous avenues of conflict…

– Absolutely. Ultimately, the priorities we mentioned are not the focus. Based on Mulino's campaign platform, it's clear he intends to pursue a different path: neoliberal, conservative, and right-wing. The collective interest, much less the interest of Panama as a whole, is not the priority; instead, the focus is on interests driven by market forces rather than on the well-being of life and care. Undoubtedly, it's very likely that in the coming months we will be facing or analyzing various social protests as a result of the application of these neoliberal models in relation to the inequality gap.

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