Panama has what is considered by government analysts to be the most stable government in all of Central or South America.
- Democratic government since 1990. The Government of Panama is headed by the executive branch, which is composed of a president and two vice presidents, democratically elected for a five-year term by direct vote.
- Mireya Moscoso was the Panama’s first female president and led the country at a moment of great historical importance as the Panama Canal began a new era under Panamanian administration. The current president is businessman Ricardo Martinelli (whose term will end in 2014), and he is a right wing, pro-business advocate, with commitments to make Panama into “the best place to do business in the world”.
- The Panamanian military was abolished by constitutional amendment in 1994, and the government still has a unique security arrangement with the U.S. due to the Neutrality Treaty of the Panama Canal. As a result, the risks of going back to the earlier military regime are virtually non-existent (Source: Euromoney Report/Lehman Brothers, Feb. 26, 1999).
- Stable government with excellent government infrastructure.
- Pro-business government attitude and policy.
- Civil law system.
- Moody’s has issued Panama a sovereign debt ceiling of Ba1 and Standard & Poors has assigned a default-risk rating of BB+.
- Panama is a peaceful country with no military. Unlike many neighboring countries, personal security concerns are limited. Panama has the lowest crime rate in all of Central and South America.
