The new 2024-2028 Country Partnership Framework (CPF) with the Republic of Panama aims to address three key areas, focusing on long-term economic growth and improving people's well-being.
Labor-market constraints have prevented certain groups from fully benefiting from Panama’s recent growth. Fifty percent of the labor force is employed informally in low-quality jobs within low productivity sectors. Medium and Small Enterprises (MSMEs) represent an estimated 95.7% of all firms in Panama, yet 61% of small businesses report limited access to credit. This might explain why small firms have experienced minimal productivity gains over time. The first desired outcome of this plan is to promote the creation of high-quality and inclusive jobs by enhancing access to finance for MSMEs; exploring alternative sources of growth in sectors with untapped potential such as sustainable tourism, forestry management, and agribusiness; and exploring opportunities for private capital mobilization for large infrastructure projects that could create jobs.
A child born in the country today will achieve only 50 percent of her potential lifetime productivity, according to the Human Capital Index. Students in Panama learn less than their counterparts in other countries, with 70% of 15-year-olds failing to reach basic-level proficiency in reading, math, and science. Therefore, the second outcome of this plan aims to strengthen and promote inclusive human capital development in Panama by improving access to and quality of health, education, and water services. This includes modernizing health systems and safety nets and improving public service delivery in underserved areas such as indigenous territories.
Finally, Panama ranks 14th among countries most exposed to multiple impacts from climate change. The third desired outcome for the CPF is to adapt to and mitigate climate change impacts on the economy and population while supporting Panama’s contribution to the international climate change agenda. The World Bank Group (WBG) will support this objective by promoting enhanced climate-smart interventions including implementing the Energy Transition Agenda for 2020–30, energy efficiency measures, adoption of biodiversity-friendly farming practices, forest conservation and restoration, protection of coastal ecosystems and oceans, as well as strengthening institutional frameworks for disaster risk management.
The framework places a special focus on strengthening public institutions and creating opportunities for women, indigenous groups, Afro-Panamanians, and other vulnerable populations. "We are committed to working with the Republic of Panama," states a representative from WBG "to close gaps and drive balanced growth without leaving anyone behind."