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For every year since 1996 the World Bank has published a list of Worldwide Governance Indicators. Among the indicators of good governance measured, regulatory quality is considered not only an indicator of good governance but also a strong indicator of a nation’s potential for economic growth and prosperity. Panama places forth in Latin America in regulatory quality. Regulatory quality is a strong predictor of success in investment in Panama business and the Panama real estate market.

Panama

Panama is the land bridge that connects North and South America where the Panama Canal connects Atlantic and Pacific. Panama has great fishing, white sandy beaches, and virgin forest all a few hours or less from a first world city. There is great real estate available on both the Pacific and Caribbean coasts. Panama has a well run government and a first world infrastructure with the best roads, airports, ports, and telecommunications in Latin America. Panama is currently enjoying an economic boom fueled by foreign investment.

Panama: Regulatory Quality

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 regulatory quality in the WGI (Worldwide Governance Indicator) survey from 1996 to 2007.

The other Latin America countries fall below 50% in ranking for Regulatory quality 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.”

Regulatory Quality and Panama Success

Panama places forth in all of Latin America in regulatory quality according to the World Bank’s Worldwide Governance Indicators. Panama has seen a continuing economic expansion, a high rate of foreign investment, and a steady increase in property values over the last decade. It is no coincidence that Panama is in the midst of an economic boom and that Panama rates high in Latin America in regulatory quality.

The Panama press is continually full articles relating to government oversight and when someone abuses their power they seem to get caught. The Panama Canal Authority just received an increase in its bond rating from Moody’s. After the US passed the Panama Canal over to Panama the canal has operated more efficiently with a first world management and oversight.

Expect to see Panama’s system of oversight and regulation 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.

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.