Why is this election important?
A political crisis has engulfed Panama’s May 5 presidential election, adding to uncertainty in a country grappling with the fallout from drought and widespread protests.
Former President Ricardo Martinelli appeared in opinion poll As a leader, disqualified He was exempted from running after being sentenced to 10 years in prison for money laundering. Panama’s electoral court allowed his running mate, former Public Security Minister José Raúl Mulino, to take his place. Mr Martinelli claimed he was politically persecuted.
Mr. Martinelli ruled Panama during a period of strong economic growth and remains popular despite his beliefs. Mr. Mullino seems to have inherited his following. The result is a paradox: Although Panamanians see corruption as one of the country’s most pressing problems, they also show the highest support for Mr. Mulino, who strongly backs Mr. Martinelli.
The election comes amid widespread disillusionment with the political system. The current president, Laurentino Cortizo, hails from Panama’s largest political party, is deeply unpopular and has been dogged by corruption scandals. His government sparked huge protests, with Panamanians paralyzing the country in 2023 over a copper mining contract that critics said would endanger the environment.
Political conflict and social unrest have affected the foreign investment climate on which Panama relies heavily. In March, Fitch Ratings downgraded Panama’s credit rating, citing the government’s closure of the mine following protests.The country’s GDP growth is expected to decline That number will fall to 2.5% in 2024 from 7.5% in 2023 due to the shutdown, according to the International Monetary Fund.
Who is running?
Eight candidates competed for five-year terms on a single ballot. Panama does not allow a sitting president to run for a second term. Panama also elects representatives to the National Assembly and local government.
In addition to Mr. Mulino, the hopefuls include current Vice President José Gabriel Carrizo (also known as Gabi); Martín Torrijos, Former president, son of the Panamanian dictator who negotiated for the United States to hand over control of the Panama Canal; Rómulo Roux, former foreign minister; and former diplomat Ricardo Lombana .
What’s the main problem?
Panama is a global trade hub and has been one of the fastest-growing economies in the Western Hemisphere, fueled by the expansion of the Panama Canal and free trade agreements and the use of the U.S. dollar as the local currency attracting investors. But the next president will have to address many fiscal, environmental, immigration and corruption issues.
Panama’s pension system runs a high deficit. The economy is largely service-based, with a shortage of skilled labor and a high number of informal workers, exacerbating income inequality.
Environmental challenges include drought causing low water levels There are fewer ships in the canal, resulting in fewer ships being allowed through. The financial impact has so far been limited due to toll increases before the water crisis began, but shipping lines may eventually look for ways to avoid the canal.
Hundreds of thousands of migrants trek across Panama’s Darien Gorge jungle, creating a humanitarian burden that the next administration must address. Finally, corruption is an ever-present problem and high-profile “Panama Papers” and Odebrecht bribery Scandals have thrust the country into an unflattering spotlight in recent years.
Who is expected to win?
opinion polls show Mr. Mulino was more than 10 points ahead of his nearest rivals, Messrs. Lombana, Torrijos and Roux. Mr. Mulino’s campaign has said that “Mr. Mulino is Martinelli,” and it is unclear whether Mr. Mulino would be able to help Mr. Martinelli’s situation improve if elected president. After the Supreme Court upheld his conviction this year, Martinelli fled to the Nicaraguan embassy in Panama City.
In March, Panama’s Supreme Court said it would hear a challenge to the electoral tribunal’s decision to allow Mulino to replace Martinelli as the presidential candidate. It’s unclear when a ruling will be made.
When will we know the results?
The Electoral Tribunal will provide unofficial election results after 4:30 pm on Election Day. The winner is expected to be announced that evening.
