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Panama
>> Regional Overview >>Panama Overview
Development Challenge Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 199720
Introduction
U.S. assistance to Panama contributes to the achievement of U.S. foreign policy objectives in the areas of environment, democracy, and human rights. The assistance program focuses on ensuring effective protection and management of the Panama Canal Watershed (PCW) through which significant amounts of U.S. (13%-14%) and world (4%) ocean-going cargo transit the Panama Canal. The protection of the watershed's natural environment is vital to safeguarding the fresh water resources upon which canal's hydrology depends. USAID's assistance program also seeks to develop momentum towards substantial improvements in the criminal and commercial justice systems of Panama. A democratic, transparent, and stable Panama will help ensure transparent treatment of U.S. citizens and businesses in Panamanian commercial and criminal courts, in addition to efficient canal operations.
The Development Challenge
During the past fifty years, massive deforestation has reduced the forest cover in the Panama Canal Watershed and in the process eroded its river valleys and lakeshores. Increasing rates of population migration into the watershed, with concomitant urbanization and economic activities, threatens its environmental health. As a result, the water supply of the watershed is increasingly vulnerable to agricultural and industrial pollution, siltation, sedimentation, and a consequent reduction in the storage capacity of its lakes. This is a serious problem considering that gravity fed, fresh water, provided by rain across the 326,000-hectare watershed, powers the Panama Canal. The PCW is the only source of water to meet the needs of the Canal, as well as meeting the water supply needs of the fast growing populations in the area. With USAID assistance, the Government of Panama (GOP) has embarked on a wide-ranging program to reverse the deterioration of the natural resources in the PCW and encourage environmentally friendly activities there. USAID assistance has supported essential infrastructure, equipment and management plans for the five national parks located in the watershed. USAID also has supported GOP efforts to establish a comprehensive monitoring program to measure changes in forest cover, hydrology, bio-diversity, and human settlements in the watershed. An Ecological Trust Fund that provides a permanent source of funds to finance environmental education and awareness activities developed by local non-governmental organizations (NGOs) and the country's environmental authorities, as well as related management and protection activities, was successfully established with USAID's assistance. USAID also provides assistance to improve the management and technical capabilities of key GOP institutions, local governments, non-governmental organizations and communities in protection and conservation of the natural resources of the watershed. Assistance also is provided to the private sector on clean production practices. Finally, joint public/private climate change initiatives are supported by USAID assistance.
Development in Panama, including in the environmental sector, is affected by a justice system that is inherently slow, complex and non-transparent. The system is difficult to understand or access for both Panamanians and non-Panamanians, and it is highly susceptible to manipulation. USAID is providing technical assistance and training to support the consolidation of ongoing efforts by the GOP to implement critical reforms of both its criminal and civil justice systems. The assistance complements a larger effort supported by the Inter-American Development Bank (IDB) in criminal justice. USAID is providing additional resources to address issues in commercial justice, an area in which the IDB is not involved. In an effort to modernize the justice system, major efforts will focus on the application of internationally recognized commercial law tenets and legal practices, enforcement of environmental regulations, and the active participation of civil society groups interested in improving the system.
Other Donors
USAID is the major donor active in the PCW. Under the Common Agenda Initiative, the Government of Japan (GOJ) is providing assistance to the GOP and NGOs in activities complementary to the USAID program in the conservation and protection of the watershed. With support from Japan, the GOP is establishing a training center in the PCW. This center is providing environmental education and awareness training in forestry and agro-forestry techniques.
The World Bank is implementing a lending program to Panama of up to $225 million for the period 1999-2001. This nation-wide effort is concentrating on poverty reduction, economic growth policies, reforestation and selected activities focused on environmentally sustainable development. In addition, the World Bank is also financing activities in land administration, which complement USAID activities in watershed conservation.
An ongoing IDB program is assisting the GOP to strengthen institutional management and implementing mechanisms to support community environmental mitigation. IDB is also supporting a process of conversion of destructive agricultural practices to environmentally friendly productive activities in the PCW. Additionally, IDB is implementing an integrated development program in the Darien province with an important focus on environmental issues. As stated earlier, the IDB is the lead donor supporting a major GOP effort in the improvement of its criminal justice system. USAID administration of justice activities complement this effort.
FY 2002 Program
USAID will focus its resources on the protection of the canal watershed, as well as assist on-going efforts by the GOP to implement critical reforms of its criminal and commercial justice systems. In FY 2001, USAID continues to support strengthening GOP institutions responsible for the protection of the watershed and the sustainable management of natural resources in the PCW. To enhance the sustainability of watershed protection, USAID will continue to encourage and assist the participation of civil society, the private sector and local governments in the watershed in this effort. Special efforts will emphasize activities related to NGO strengthening, co-management of parks and protected areas in the PCW, development of eco-tourism opportunities for local communities, climate change initiatives and the development of a carbon market, as well as furthering concessional arrangements for liquid and solid waste disposal. USAID also will provide assistance to the court systems, justice sector personnel, and civil society organizations in order to increase fairness and efficiency in the justice sector.
Activity Data Sheets
- 525-004 Panama Sustainably Manages the Canal Watershed and Buffer Areas
- 525-005 Momentum Towards Fairer and Faster Justice Established
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: February 12, 2003 |
