How did Panama go from promising growth to the brink of a social abyss?

First modification: 07/15/2022 – 11:47

Panama closes this second week of demonstrations where all social sectors have participated. The government of Laurentino Cortizo has offered some solutions, but for some experts these proposals will not be enough to guarantee calm, and social discontent has deeper roots.

Despite the fact that in 2021 and the first quarter of 2022, the economic growth rates in Panama exceeded 10%, the news was not positive for everyone. The ordinary citizen felt that this bonanza that was being talked about was not reflected in his wallet.

The uncertainty became more acute when the price of gasoline, the basic basket and medicines rose through the roof. Causing the outbreak of one of the strongest social crises in that country since the fall of the military dictatorship in 1989.

Corruption and expensive whiskey

“When the pandemic began, there were several cases of corruption in the purchase of respirators for hospitals and the health system has not worked properly. Education was stopped for two years. In addition, a part of the population feels that the banks have been favored,” Harry Brow, from the International Center for Political and Social Studies of Panama, tells RFI, who believes that the outbreak was a matter of time.

To appease the discontent of the population, the government of President Laurentino Cortizo agreed to reduce gasoline, freeze the price of the family shopping basket and reduce expenses for officials. However, for Brow this commitment will not be enough.

“It is not clear how announced measures such as reducing the state payroll by 10% are going to translate into benefits for the population,” he says.

The protesters also criticize members of the National Assembly. Lately, some deputies were involved in a scandal after a video was released in which they appear celebrating with expensive bottles of whiskey.

“They don’t just expect to eat better”

Brow explains that reasons for anger have been accumulating in the last 30 years, to the point that it would take “a change of direction to satisfy the mobilized population.” “Not only do they hope to eat better and have a job, but there are longer-term claims that require more important efforts,” he details.

So far, the solutions to the social crisis proposed by the Cortizo government have not found an echo in some social sectors. These are waiting for a counterproposal that is consistent with their reality, it will depend on it if Panama returns to calm.