LocationsStitching Panama’s Social Fabric: A Portfolio Approach
January 25, 2024
Panama has seen unprecedented demonstrations in recent months, garnering attention from international media outlets, a most recent one from the Washington Post: “Panama has erupted in deadly protests over copper mining,” while protesters hold up signs that read “Panama is not for sale.” Historians liken the situation to the 1980’s – when Panama witnessed widespread civil unrest as citizens tried to reclaim sovereignty over the US occupied Canal Zone territory.
Despite millions of dollars in losses, which economist project will take years to recover from, Panama is still projected to have the highest economic growth in the region for 2024. How can a country in such social, economic, and political distress be on track to becoming one of the most prosperous in the region? What is evident is this: high GDP does not equal a high quality of life for all.
Panama is the third country with the highest inequality in the region. Given Panama’s level of development, financial inclusion is lower than expected. Water shortages are frequent. Support for democracy is in decline. Based on the research carried out by Latinobarometer earlier in 2023, Panama falls within the category of countries where satisfaction with democracy is below 20%. Furthermore, there is a fragile relationship between people and government: a resounding 80% of Panamanians perceive people as untrustworthy. In 2019, UNDP’s National Human Development Report sternly advocated for strengthening institutions. Almost four years later, distrust remains high.
"A protester holds a sign with the phrase 'Panama is not for sale' during one of the protests against the mining contract in Panama City on October 24th."
Front page of a local newspaper, Panama America 2023
Where to start? At UNDP (United Nations Development Programme), we understand that the dynamic nature of these complexities cannot be addressed with single point solutions. For starters, a systemic view is necessary – for this, the Panama country office together with UNDP’s Strategic Innovation Unit (SIU) is proposing a portfolio approach – a process that acknowledges that development challenges are complex and interconnected, thus cannot be addressed in silos. Instead of tackling problems in isolation, it aims to address a spectrum of issues simultaneously, fostering a comprehensive and sustainable approach to development.
Our monumental challenge: How we came to social cohesion
To begin the portfolio process, a thematic area that encompasses multiple touch points is selected – for UNDP Panama, we arrived at social cohesion. UNDP has broadly defined social cohesion as” …the extent of trust in government and within society and the willingness to participate collectively toward a shared vision of sustainable peace and common development goals.” After a series of activities, including extensive interviews, media sensing and an interactive community walk (Jane Walk), we’ve identified Panama’s erosion of trust in people, trust in institutions, and trust in tomorrow, as a breakdown in social cohesion. When asked, what is one thing you would do to change Panama´s current outlook, we often heard, as one interviewee bluntly proposed: “I’d change all politicians.” Yet, when asked who is responsible for the change we want to see, the response was often, “politicians.” The relationships we have with people, our institutions, and our surroundings is fractured. This highlights the complex and challenging dynamic in the quest for societal transformation.
Figure 2 Iceberg Model, Panama Portfolio Approach
When visualizing these layers of complexity in an iceberg model exercise, Panama’s recent protests find themselves at the tip of the iceberg – quite visible. But what we can’t see, and aren’t paying enough attention to, is well-placed, lurking beneath the surface: lack of hope, disconnected public policies, and a sense that government is “useless,” digital divide, rising inflation, a sense of ‘every man for himself.’ These trends are becoming tangible with visible signs in daily life, and bubbling to the surface, as we witnessed recently.
In this context, another conversation resonates: "We lack a common national goal that unites society towards a shared vision. Before, the goal was to get back the Panama Canal, but now that this has been achieved, there is nothing that unifies the country under one single direction." Much like the portfolio process, the need for a unifying vision becomes even more apparent, considering the underlying issues that remain obscured beneath the surface.
From listening to action: transformative shifts for addressing social cohesion
The intention of UNDP Panama is to articulate our mandate, capabilities, and partnerships to connect individuals and institutions, build consensus on issues of common interest, and create synergies while catalyzing opportunities for systemic change. The core framework of our portfolio, therefore, seeks transformative change starting from social cohesion, addressing trust and relationships between citizens and the state, as well as solidarity and empathy in communities, to contribute to systemic effects of trust, quality of life, and equality. What does that look like, more tangibly? Let’s consider our three axes of transformation:
1. We need to move towards institutions that are closer to needs of citizens.
Currently, institutions operate in a centralized manner, adopting slow and one-sided policy formulation. Implementation management is detached from local needs, and citizen participation in decision-making is limited, despite some dialogue taking place with low implementation rates. Agendas tend to be reactive, focusing on short-term solutions, and there is a lack of robust coordination between national and local levels.
We will work towards building institutions where policies and public services are formulated collaboratively with citizen participation, considering local and cultural perspectives. Collaboration, cooperation, and proactive engagement of stakeholders are not only encouraged but also rewarded. The emphasis is on transparency, providing easy access to democratic and empathetic information, along with digital services. The goal is to foster citizen involvement and empowerment in the decision-making process.
Panama Portfolio Transformative Shifts
2. We need to shift from models centered on basic conditions to one centered on fulness of life.
Currently, fragmented policies and activities focus on providing basic conditions of citizens, the system does not address the root causes of insecurity, crime, violence, and inequality. We would like to work towards, what we’re calling, ‘fullness of life’ – where services, physical spaces, mental health, interpersonal relationships, leisure, culture, and sports are contemplated to promote inclusive lifestyles that enhance the diversity of our identify.
3. We need to move away from short-termism and focus on collective wellbeing.
Currently there is a perception of a transactional vision in pursuit of short-term returns, with a focus on financial capital that rewards individualism. UNDP Panama want to pursue a model focused on long-term vision, one that rewards collective well-being and enhances development based on nature and biodiversity, respecting Panamanian cultural authenticity and fostering economic opportunities and fair work for current and future generations, in rural and urban areas.
What’s next?
UNDP’s Strategic Plan 2022-2025 set a clear direction for UNDP to go ‘beyond projects’ and embrace portfolios. It highlights an argument for much bolder actions to achieve the SDGs. UNDP Panama is part of this. We have taken the initial step towards adopting a portfolio approach by establishing a clear vision (intent to transform) and identifying ambitious transitions it seeks to contribute to. Our next phase involves testing our narrative with the support of the government and other stakeholders on the crucial transitions needed for Panama to achieve its goal of a socially cohesive society.