Panama

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Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Panama Previous Years' Activities 2002, 2001, 2000, 1999, 1998, 1997 Last updated: 35     THE DEVELOPMENT CHALLENGE: 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 protection of the watershed's natural environment is vital to safeguarding Each ship that transits the Panama Canal requires 52 million gallons of fresh water. the fresh water resources upon which the canal's hydrology and sustainability depends. Increasing rates of population migration into areas near the watershed, with concomitant urbanization and economic activities, threaten the environmental health and stability of the PCW. As a result, the fresh water supply of the watershed is increasingly vulnerable to agricultural and industrial pollution, siltation, and sedimentation with a consequent reduction in the storage capacity of its lakes. This is a serious problem considering that fresh water, provided by rainfall across the 339,649-hectare watershed, powers the Panama Canal. The PCW is the only source of water to meet requirements for Panama Canal operation, as well as the needs of the rapidly growing population in the area. USAID's assistance program also seeks to increase the momentum towards improvements in the criminal and commercial justice systems of Panama. A more fair and efficient justice system will help to ensure transparent treatment of U.S. citizens and businesses in Panamanian commercial and criminal courts, strengthen democracy, and enhance the credibility of justice sector institutions. An inherently slow, complex and non-transparent justice system has impeded development in Panama. The system is difficult to understand or access for both Panamanians and non-Panamanians and is highly susceptible to manipulation. The USAID program complements a larger effort by the Inter-American Development Bank (IDB) to consolidate ongoing efforts by the Government of Panama (GOP) to implement critical reforms of both the criminal and civil (commercial) justice systems. The USAID program is selective in that it focuses only on issues not addressed by IDB or other donors. USAID will concentrate on implementing pilot activities that would improve management of the courts and on capacity building for non-governmental organizations (NGOs) to advocate more effectively for justice sector reforms. Panama's external debt is about $5.6 billion, or close to 60% of GDP. THE USAID PROGRAM: FY 2002 Estimate: $8.5 million FY 2003 Request: $10.5 million USAID's program addresses complex issues related to the protection and conservation of the Panama Canal Watershed and critical judicial reforms. In an environmentally friendly manner, the PCW program seeks to increase the capacity of Panamanians of all strata who have a direct impact on the PCW. As such, mechanisms to coordinate activities of central and local government entities as well as those of local residents are being established and strengthened. New sources of cofinancing are being developed to support the increased effort of PCW protection. In addition, technical assistance and training is being provided to increase environmental awareness and develop alternative production methodologies that replace current destructive environmental practices. The program supporting judicial reforms is gaining support from influential groups in the judiciary and the private sector in an effort to initiate reforms and increase the momentum towards fairer and faster justice in Panama. FY 2002 funds will be used to improve the management of criminal courts by implementing pilot-targeted reforms, foster alliances in civil society to increase their advocacy role and impact for significant reforms, and to promote the use of alternative dispute resolution mechanisms in the civil (commercial) courts. In the Darien border region with Colombia a new program is anticipated that would mitigate the 'spillover' effects of illicit narcotic trafficking activities and tentatively explore the feasibility of a complementary anticorruption activity. The new program would strengthen democracy and expand good governance in this neglected region, with greater community participation addressing critical needs. ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED: None. OTHER PROGRAM ELEMENTS: Other U.S. Government-supported activities include USAID's regional Central American Program (G-CAP) support to provide technical assistance and training to promote policy dialogue/public awareness, strengthen NGO capacity for effective HIV prevention efforts and for the development and implementation of a condom social marketing strategy. Another G-CAP program is providing limited technical assistance and training through its PROALCA program (Program Support to Central American Participation in the Free Trade Area of the Americas [FTAA]), in support of Panamanian efforts to prepare for participation in the FTAA. OTHER DONORS: USAID is the major donor active in the PCW. Under the Common Agenda Initiative, the Government of Japan is providing assistance to the GOP and the NGO community in activities complementary to the USAID program in the conservation and protection of the watershed. With support from Japan, the GOP has established a training center in the PCW. This center is providing environmental education and awareness training in forestry and agroforestry techniques. Also, the Japan International Cooperation Agency is funding a study to develop for the Municipality of Panama a plan for solid waste management. 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 from destructive agricultural practices to environmentally friendly productive activities in the PCW. Additionally, IDB is implementing an integrated development program in the Darien province, including environmental issues. As stated earlier, the IDB is the lead donor supporting a major GOP effort in the improvement of its criminal justice system, primarily by constructing infrastructure, which will physically house law enforcement and judicial functions at two locations in Panama. USAID justice reform activities complement this effort. Program Data Sheets 525-004  Panama Sustainably Manages the Canal Watershed and Buffer Areas 525-005  Momentum Towards Fairer and Faster Justice System Established Country Background Information Resources     CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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