Corruption and constitution challenge Panama’s Cortizo

Significance

Despite a recent economic slowdown, Panama remains one of the most dynamic economies in Latin America. Cortizo needs to attract more investors and keep up the pace of development, while demonstrating that his government’s social democratic approach can make headway against corruption and poor governance.

Impacts

• The removal of price controls on basic foodstuffs suggests Cortizo is committed to market-friendly growth.
• As a former farmer and agriculture minister, Cortizo will strive to boost domestic production of food and reduce reliance on imports.
• The Cortizo administration is preparing legislation to promote public private partnerships, which could face trade union opposition.
• Cortizo will try to continue the strengthening of Chinese relations begun under the last administration, while maintaining close US ties.
• The government will strive to improve anti-money laundering regulations fast, to get Panama removed from international ‘grey lists.’