Panama Government Profile 2012

After the overthrow of military strongman Manuel Noriega in December 1989, Panama restored democratic rights and procedures. Since then, universal suffrage and the right to campaign for public office are conducted properly. Panama is a representative democracy and places no constraints on free and competitive elections. Presidential elections held in 1994, 1999 and 2004 resulted in a regular alternation between the two most important political parties.

With the abolition of the armed forces, the single most important anti-democratic veto-power disappeared from the political scene. A national police force overseen by civilian authorities replaced the military. Since the early 1990s, elected rulers have, in principle, the effective power to govern. After the takeover of the Canal management and the definitive withdrawal of the United States from the former Canal Zone (i.e. closing of military bases), U.S. influence on Panamanian politics diminished significantly. Business groups (linked to the service sector) and a handful of militant trade unions represent the most influential pressure groups. The lending conditions of the International Monetary Fund somewhat restrict Panama’s room to maneuver in its economic policies.