Panama

40% of Panama’s residents live in poverty, 12% in extreme poverty. One in five Panamanians lives on $30 a month. Panama has the second most unequal distribution of income in the hemisphere. The richest 20 percent of the population earn 60 percent of the country's annual income while the poorest fifth earn just 2 percent. As a middle-income country, reports of high GDP hide the plight of the urban and rural poor. Poverty and extreme poverty are concentrated in the countryside,with 65% of the rural population living in poverty. Indigenous areas suffer the most profound poverty. More than 95% of the residents of indigenous areas, about 200,000 people, fall below the poverty line and 86% live in extreme poverty. Although inequality is higher in rural areas, it is more obvious in urban areas, such as the city of Colón, where the modern, dynamic, wealthy sector lies closely with poor city slums, accentuating the perceived gap between rich and poor.

Over 16% of all children under five (close to 50,000) suffer from some form of malnutrition. Most are of the indigenous population. Though Panama has gained the reputation as a safe country, the pervasiveness of the poor threatens its democratic security. Characteristics of Panama’s poverty include: high rates of unemployment, wage discrimination for indigenous workers, limited access to schools leading to disparities in education (although it is improving), and inequities in health care.

Panama’s judiciary system is subject to corruption and political manipulation, and the criminal justice system was inefficient and often corrupt. In one incident, the Panamanian National Police (PNP) narcotics officers arrested the entire PNP uniformed shift at the substation in San Carlos, including the police captain, for off-loading boats from Colombia that carried illegal narcotics. Overall prison conditions are harsh, with reports of abuse by prison guards and overcrowding. Prolonged pretrial detention was a problem. Right to a fair trial is disrupted by the judiciary’s susceptibility to corruption and outside influence, including manipulation by other branches of government.

The media are subject to political pressure, libel suits, and punitive action by government officials. Discrimination and violence against women remain a serious problem. Abusers were commonly convicted of unintentional killing in cases of spousal death. Trafficking in persons was a problem despite improved anti-trafficking laws and publicity and a government crack down on traffickers. Prostitution is legal and regulated in Panama. Sexual abuse of children, including incest, occurs in both urban and rural areas, as well as within indigenous communities. Trafficking in children and child labor are problems within Panama; over 6,000 children between the ages of 10 and 17 works as domestic servants. Discrimination against indigenous Panamanians and minorities, including Chinese, Indian, and Middle-Easterners, is also prevalent, especially in the workplace. The white elite population discriminates against citizens with darker skin through preferential hiring practices in the private sector and manipulation of government resources in the public sector. The predominantly Afro-Panamanian city of Colon, the country's second largest city, suffers from a conspicuous lack of government services.

Panama is included in the four of six Latin American countries that have the highest prevalence of HIV/AIDS with a prevalence rate of .9%. There are about 170,000 people in Panama living with HIV/AIDS. The most-at-risk population belong to large urban conglomerations and specific population groups such as sex workers, homosexuals and men who have sex with men. Analysis by gender shows that men are most affected by the epidemic. The regions which presented the highest rates of HIV/AIDS for 2004 are Province of Colón (44.1%), the Metropolitan Region (33.8%), the District of San Miguelito (23.7%) and West Panama (16.1%).

Panama currently occupies third place with respect to HIV/AIDS prevalence in Central America, preceded by Honduras (1.8% prevalence) and Guatemala (1.1% prevalence). Panama is the country with the most deaths due to AIDS in Central America and the disease is the seventh cause of death in Panama.

Panama faces many threats for its environment. Its environmental issues include water pollution due to agricultural runoff, which threaten its fishery resources; deforestation of tropical rain forests, land degradation and soil erosion, which threatens siltation of Panama Canal; air pollution in urban areas; and mining, which threatens natural resources.

Deforestation began in the southern coastal lands by European settlers. Today, the southern watershed has been stripped of trees for agriculture and cattle. Settlement in the Darien jungle has risen concern about whether the area can support intensive agriculture and selective logging of the most valuable trees in that region.

Another concern is the soil erosion in the Chagres River Basin. With about 25,000 families living in this area, clearing and planting, soil runoff is put into the river and eventually the Panama Canal.

Environmental hazards also stem from the disposal of hazardous materials and unexploded ammunition on U.S. military bases in the Panama Canal Zone.

The government provides free compulsory education (6 yrs). 92.6% of Panama’s population is literate. Panama has one of the highest literacy rates in its region with nearly universal school attendance in the elementary level. In 1998, 17.6 of the governments budget is spent on education. Higher education is provided by the University of Panama and its associated Technological University and the University of Santa Maria la Antigua. There are also private colleges and trade schools.

Children do not always attend school due to traditional attitudes, financial and economic constraints, lack of transportation or secondary schools, and insufficient government resources. The problem is most extreme in Darien Province and among indigenous groups.

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