A blog of the Latin America Program

1. Jos茅 Ra煤l Mulino acaba de ganar las elecciones de este domingo en Panam谩. 驴Era la esperado?
R. S铆, en esta ocasi贸n las encuestas acertaron. Mulino siempre fue el favorito en todas las mediciones, con un porcentaje similar al que finalmente obtuvo: 34.3%. Como es tradici贸n en Panam谩 desde 1994, hubo voto de castigo para el oficialismo (PRD); partido que sufri贸 una fuerte derrota tanto a nivel presidencial como legislativo y territorial. Sin embargo, hubo tres aspectos que la mayor铆a de las encuestas no lograron prever. Primero, aunque la diferencia entre el primer y segundo lugar fue significativa (casi 10 puntos), result贸 ser menor a la esperada. Segundo, no se produjo un triple empate por el segundo lugar; Ricardo Lombana (25%) se destac贸 claramente por encima de Mart铆n Torrijos (16%) y R贸mulo Roux (11%). Tercero, la conformaci贸n de la nueva Asamblea Nacional con la bancada de los diputados de libre postulaci贸n (independientes) como la m谩s numerosa, con 20 esca帽os, fue un resultado sorprendente e in茅dito, no solo en Panam谩 sino tambi茅n en los congresos de la regi贸n.
Jos茅 Ra煤l Mulino just won the elections this Sunday in Panama. Was it expected?
Yes, this time the polls were right. Mulino was always the favorite in all polls, with a percentage similar to the one he finally obtained: 34%. It is tradition in Panama since 1994 to punish the incumbent (PRD), who suffered a notorious defeat on the presidential ballot as well as in Congress and local elections. However, there were three developments that most surveys failed to foresee. First, although the difference between first and second place was significant (almost ten points), it was less than expected. Second, there was no three-way tie for second place; Ricardo Lombana (25%) stood out clearly above Mart铆n Torrijos (16%) and R贸mulo Roux (11%). Third, the number of independent deputies elected to the new National Assembly, the largest bloc, with 20 seats, was surprising and unprecedented, not only for Panama but for any congress in the region.
2. 鈦燤ulino gan贸 con solo el 34% del voto, lo que no muestra un apoyo contundente, no?
R. Coincido en que, aunque el triunfo electoral de Mulino fue claro, no result贸 contundente. Esto se debe al sistema electoral que elige al presidente en una sola vuelta y por simple mayor铆a. Aunque Mulino representa a la primera minor铆a, el 66% de los votantes, es decir, dos de cada tres electores, no votaron por 茅l. Adem谩s, la nueva Asamblea Nacional muestra una significativa fragmentaci贸n con 8 partidos y 20diputados independientes, de los cuales Mulino solo ha logrado asegurar 16esca帽os (14 de Realizando Metas y 2 de Alianza) de los 71 totales. En este contexto, asegurar la gobernabilidad representa un desaf铆o considerable para el nuevo presidente. Por ello, ya se observan esfuerzos tanto de Mulino como de Martinelli (a pesar de su asilo en la Embajada de Nicaragua) para establecer alianzas que aseguren una mayor铆a absoluta de 36 diputados en el 贸rgano legislativo.
Mulino got just 34% of the vote. That's hardly overwhelming support.
I agree, although Mulino鈥檚 victory was clear, it was not overwhelming. In part, this is because Panama鈥檚 electoral system has a single round and simple majority system. Although Mulino represents the first minority, with 66% of votes, two out of three voters did not vote for him. Furthermore, the new National Assembly shows significant fragmentation, with eight parties and 20 independent deputies. Mulino only managed to secure 16 seats (14 from his party, Realizando Metas, and two from Alianza) of 71. In this context, ensuring governability represents a considerable challenge for the new president and both Mulino and former President Ricardo Martinelli (in asylum in the Nicaraguan Embassy) are establishing alliances to ensure a majority of 36 deputies in the legislature.
3. 鈦犅縌u茅 sigue para Panam谩? Los paname帽os parecen estar listos para ver cambios sustanciales en varios temas, pero Mulino no hizo campa帽a en temas de gran embergadura por lo que vimos.
R. Mulino asumir谩 la presidencia en un contexto de gran complejidad pol铆tica, econ贸mica y social, probablemente la m谩s desafiante de las 煤ltimas d茅cadas. Tiene la necesidad de abordar una agenda saturada de retos cr铆ticos que requieren respuestas urgentes. En el 谩mbito econ贸mico, deber谩 impulsar un crecimiento inclusivo y sostenible que genere empleo de calidad, recuperar el grado de inversi贸n, abordar la escasez h铆drica que impacta al Canal, enfrentar la crisis de la Caja del Seguro Social, gestionar la elevada deuda externa, reducir el gasto p煤blico, resolver el complejo tema de la mina de cobre y, sobre todo, fomentar la confianza, garantizar la seguridad jur铆dica y la estabilidad pol铆tica para mejorar el ambiente de negocios y aprovechar el nearshoring para atraer nuevamente la inversi贸n extranjera que el pa铆s necesita.
Es tambi茅n crucial que atienda de manera urgente la dimensi贸n social de la democracia, enfrentando los altos niveles de desigualdad, el elevado costo de vida y de los medicamentos, la provisi贸n de servicios p煤blicos de calidad, entre ellos la salud y la mejora de la calidad educativa para una sociedad del siglo XXI.
Adem谩s, deber谩 reducir significativamente la corrupci贸n e impunidad, modernizar el Estado con un servicio civil competente, fortalecer las instituciones y la justicia, realizar ajustes a la Constituci贸n y a la ley electoral (incluyendo la incorporaci贸n de una segunda vuelta electoral), y abordar los retos de seguridad ciudadana, crimen organizado, narcotr谩fico, y los crecientes flujos migratorios.
En pol铆tica exterior, debe priorizar y equilibrar estrat茅gicamente sus relaciones con Estados Unidos y China, fortalecer la cooperaci贸n con Colombia, Costa Rica y los Estados Unidos para un manejo eficiente y respetuoso de los derechos humanos de la migraci贸n, definir su postura hacia Nicaragua seg煤n evolucione el caso Martinelli, sacar al pa铆s de las listas grises en las que a煤n figura, y aprovechar el nearshoring para atraer la inversi贸n extranjera que se necesita.
Finalmente, se presentan dos cuestiones pol铆ticas urgentes: 1) qu茅 acciones tomar谩 Mulino respecto a la situaci贸n judicial de Martinelli, condenado a 128 meses de c谩rcel y actualmente asilado en la embajada de Nicaragua en Panam谩, pero todav铆a activo en la pol铆tica y en redes sociales, y 2) c贸mo ser谩 su relaci贸n pol铆tica con Martinelli. En sus primeras declaraciones, Mulino enfatiz贸 que no ser谩 鈥渢铆tere de nadie鈥 y se帽al贸 irregularidades en el proceso que conden贸 a Martinelli, declarando el fin de la 鈥減ersecuci贸n pol铆tica鈥 en Panam谩.
What's next for Panama? Panamanians seem eager for major changes, but Mulino did not campaign on promises of big reform as far as I can tell.
Mulino will assume the presidency in a context of great political, economic, and social complexity, probably the most challenging in recent decades. He needs to address an agenda filled with critical challenges that require urgent responses. In the economic sphere, he must promote inclusive and sustainable growth that generates quality employment, recover Panama鈥檚 level of investment, address the water shortage impacts on the canal, confront the Social Security Fund crisis, manage high external debt, reduce public spending, resolve the complex issue of the copper mine and, above all, foster confidence, guarantee legal security and political stability to improve the business environment, and take advantage of nearshoring to attract much needed foreign investment.
It is also crucial that he urgently confronts the high cost of living, provide quality public services, reduce high inequality, and assure quality education for a 21st century society.
In addition, he must significantly reduce corruption and impunity, modernize the state with a competent civil service, strengthen institutions and justice, reform the Constitution and electoral law (including by incorporating a second electoral round), and address citizen security, organized crime, drug trafficking, and growing migration flows.
In foreign policy, Mulino must prioritize, and strategically balance, his relations with the United States and China, strengthen cooperation with Colombi, Costa Rica, and the United States for efficient management of migration, define a position towards Nicaragua as the Martinelli case evolves, and remove the country from the so-called gray lists in which it still appears.
Finally, Mulino faces two urgent political questions: 1. How will he handle Martinelli, sentenced to 128 months in prison, but still active in politics and on social media, and 2. What will be his political relationship with Martinelli. In his first statements following the election, Mulino emphasized that he will not be 鈥渁nyone鈥檚 puppet,鈥 while also pointing out irregularities in the process that convicted Martinelli and declaring the end of 鈥減olitical persecution鈥 in Panama.
4. 鈦燣a pol铆tica en Panam谩 siempre fue estable y sin sobresaltos. Pero esto ha cambiado. Con todo lo que ha pasado, 驴va a ser posible para Mulino manejar la frustraci贸n del electorado? 驴O podemos esperar una luna de miel breve despu茅s de su victoria y un regreso a las protestas disruptivas?
R. Como mencion茅 anteriormente, los desaf铆os que enfrentar谩 Mulino son tanto numerosos como significativos. El presidente electo es consciente de que no puede sacar adelante a Panam谩 por s铆 solo, reconocimiento que hizo en su discurso del 5 de mayo. Para abordar con 茅xito los retos mencionados, necesitar谩 entablar un di谩logo amplio, realizar convocatorias inclusivas y multisectoriales , fomentar acuerdos y consensos y apalancarse en las numerosas ventajas competitivas que tiene Panam谩.
Ser谩 necesario que establezca un gobierno de unidad nacional, un gabinete diverso y de alta calidad, y alianzas que aseguren la gobernabilidad. Adem谩s, deber谩 responder de manera oportuna y eficiente a las diversas demandas ciudadanas. El descontento social, que desencaden贸 dos estallidos sociales en 2022 y 2023, sigue latente. M谩s del 80% de los ciudadanos est谩n insatisfechos con el funcionamiento de la democracia, y un 53% no le importar铆a que llegue al gobierno un r茅gimen no democr谩tico si soluciona sus problemas (datos de Latinobar贸metro 2023).
De forma similar a otros presidentes de la regi贸n, Mulino disfrutar谩 de una breve luna de miel. Para evitar un r谩pido desgaste de su popularidad deber谩 demostrar un riguroso equilibrio entre pragmatismo, eficacia en la gesti贸n y sensibilidad social. Ser谩 crucial que afirme su liderazgo y tranquilice al pa铆s desde el inicio. Adem谩s, su habilidad para dialogar, escuchar, y establecer consensos, as铆 como su capacidad de priorizar acciones para ofrecer resultados oportunos y efectivos, ser谩n fundamentales para garantizar la gobernabilidad y generar confianza, elementos claves para el 茅xito de su presidencia.
Las pr贸ximas semanas ser谩n cruciales ya que ofrecer谩n se帽ales m谩s claras de la integraci贸n del nuevo gabinete, de sus prioridades y de la confianza que logre generar en los inversionistas tanto dentro como fuera de Panam谩. De momento, su experiencia pol铆tica (fue ministro en dos administraciones anteriores) y su discurso en favor del sector privado y de la inversi贸n extranjera han sido muy bien recibidas por los mercados.
Politics in Panama used to be stable and boring. Not anymore. Can Mulino keep a lid on public frustration? Or should we expect a short political honeymoon and then a return to large and disruptive protests?
A. As I mentioned earlier, the challenges Mulino will face are both numerous and significant. The president-elect is aware that he cannot move Panama forward on his own, a recognition he made in his speech on May 5. To address the aforementioned challenges, he will need to engage in broad dialogue, hold inclusive and multisectoral conversations, and foster the agreements and consensus necessary to respond effectively to these challenges.
It will be necessary to establish a government of national unity, a diverse and high-quality cabinet, and alliances that ensure governability. In addition, Mulino must respond in a timely and efficient manner to various citizen demands. Public unease from the two social outbreaks, in 2022 and 2023, persists. Over 80% of citizens are dissatisfied with the functioning of democracy, with 53% saying they would not mind a non-democratic regime coming to power if it solved their problems, according to Latinobar贸metro.
Similar to other presidents in the region, Mulino will enjoy a brief honeymoon. However, to avoid a rapid erosion of his popularity, he must demonstrate a rigorous balance between pragmatism, effectiveness, and social sensitivity. It will be crucial for him to assert his leadership and reassure the country from the beginning. Furthermore, his ability to dialogue, listen, and establish consensus, as well as his ability to prioritize actions to deliver timely and effective results, will be essential to guarantee governability and generate trust, key elements for the success of his presidency. The next few weeks will be crucial as they will offer clearer signals of the new cabinet, its priorities, and the confidence it manages to generate in investors both inside and outside Panama. For now, his political experience (he was a minister in two previous administrations) and his stance in favor of the private sector and foreign investment have been very well received by the markets.
Authors


Latin America Program
乐鱼 体育鈥檚 prestigious Latin America Program provides non-partisan expertise to a broad community of decision makers in the United States and Latin America on critical policy issues facing the Hemisphere. The Program provides insightful and actionable research for policymakers, private sector leaders, journalists, and public intellectuals in the United States and Latin America. To bridge the gap between scholarship and policy action, it fosters new inquiry, sponsors high-level public and private meetings among multiple stakeholders, and explores policy options to improve outcomes for citizens throughout the Americas. Drawing on the 乐鱼 体育鈥檚 strength as the nation鈥檚 key non-partisan policy forum, the Program serves as a trusted source of analysis and a vital point of contact between the worlds of scholarship and action. Read more
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