You are here :: Panama Real Estate » Panama-real-estate » Panama-control-of-corruption

For every year since 1996 the World Bank has published a list of Worldwide Governance Indicators. Among the indicators of good governance measured, control of corruption is considered not only an indicator of good governance but also a strong indicator of a nation’s potential for economic growth and prosperity. The only category in which Panama does not place forth in Latin America is in the control of corruption. Improved control of corruption will be a strong predictor of improved success in investment in Panama business and the Panama real estate market.

Panama

Panama is the land bridge connecting North and South America and where the Panama Canal connects Atlantic and Pacific. Panama has unspoiled natural beauty and a first world infrastructure. Panama has the best roads, airports, ports, and telecommunications in Latin America. Panama is currently enjoying an economic boom fueled by foreign investment.

Panama: Control of corruption

According to the World Bank, “Governance consists of the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them.”

The following table shows where Panama places in comparison to other Latin American countries ranked by percentile for the control of corruption in the WGI (Worldwide Governance Indicator) survey from 1996 to 2007.

Other Latin America countries besides Panama fall below 50% in ranking for the control of corruption and are not shown. According the WGI website the indicators are based on a wide array or sources. “The aggregate indicators combine the views of a large number of enterprise, citizen and expert survey respondents in industrial and developing countries. The individual data sources underlying the aggregate indicators are drawn from a diverse variety of survey institutes, think tanks, non-governmental organizations, and international organizations.”

Control of Corruption and Panama Success

Panama places seventh in all of Latin America in the control of corruption according to the World Bank’s Worldwide Governance Indicators. This is the only one of seven indicators of good government where Panama does not place forth in Latin America. Governmental corruption has long been the rap against Panama. Forty-nine percent is the middle of all countries evaluated. Forty-nine percent is a long ways from industrialized Europe where Denmark ranks 99% and France 89.4% in control of corruption.

Since the USA turned the Panama Canal over to Panama there has seen a continuing economic expansion in this tropical paradise. Panama retains the highest rate of foreign investment in Latin America. Real estate investment has prospered and real estate values have steadily risen for the last decade. Panama is in the midst of an economic boom perhaps despite the fact that Panama still has a problem with the control of corruption.

Expect to see Panama’s good governance continue to help promote protect Panama’s drive toward more economic prosperity, success in real estate investment, and investment by Panama in its infrastructure in the future. This democratic country has strong economic assets and, well governed and regulated, will exploit these assets to the good of its citizens and those wise enough to invest in Panama’s future. We expect that over time Panama’s strong democracy, unimpaired by military takeover will improve its control of corruption.

If you are interested in investment in real estate in Panama come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and would be pleased to help you.