World Bank: Panama faces challenges in human capital development and quality of employment

OP ED: “JB”

Hello friends, Ex-Pats, and my adopted Panamanian bretheren. I will openly admit that Donald Trump makes for a very EASY and VALID target for all the venom and vitriol he is receiving over the hulla-balloo about the CANAL.

I mean after all, it is called “The PANAMA CANAL”.  But please read the article below about the current state of affairs for national born PANAMANIANS, as it relates to the economic and employment prospects for the future of this nation.

Then “BEFORE” you spew all your hatred at a very easily “hateable” person, FIRST point the blame at the ENEMIES FROM WITHIN THE GATES!.

Each one of these LEADERS have ALL collectively RAPED, PILLAGED, and USED the “CANAL” to benefit themselves over what is best for the nation. That is not hyperbole or mere opinion. It is an UNDISPUTABLE FUCKING FACT.

Please use your own time to read the Wikipedia pages of ALL of these “leaders”, and see how some had already come from vast wealth, and others married into vast wealth, and ALL exponentially INCREASED their vast wealth while President. ( Don’t get me started on Gaby Carrizo’s estate home!! )

EVERY LAST SINGLE PANAMANIAN SHOULD BE LIVING ABOVE THE POVERTY LINE AND COMPLETELY TAKEN CARE OF IF THE “CANAL” WAS TRULY OPERATED AS A GIFT TO THE NATION, AS OPPOSED TO A CONDUIT FOR THE ELITE TO PROCURE MASS GENERATIONAL WEALTH!!!

Blame your leaders FIRST,……….then go back to hating Trump.

Saludos

“JB”

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The quality of work and human capital is affecting progress in reducing poverty and inequality in Panama. This problem highlights the challenges in productivity and training of young Panamanians, as reflected in the new World Bank (WB) report entitled “Panama: From Growth to Prosperity.”

According to the report, Panama faces challenges in the development of its human capital and in the quality of employment, since in the Human Capital Index (HCI), the country has not shown improvements in the last decade and is among the most unequal when compared to countries with similar incomes.

According to the World Bank, this index indicates that the productivity of future generations could reach only half of its current potential, which could cost the country up to 50% of its future income, highlighting the importance of investing in education and the quality of employment to boost long-term economic growth.

The report explains that, although Panama has made progress in expanding access to education, there are still challenges in educational coverage among low-income households, which limits access to better job opportunities.

It also highlights that the prospects for higher education as a path to better jobs are limited. Only 20% of young people obtain a tertiary education degree, and the courses offered require updating to meet the demands of the labour market.

On the other hand, the data reveal significant inequalities in the labour market. For example, in 2023, less-skilled workers received incomes up to 74% lower than those with tertiary education.

These inequalities particularly affect indigenous populations, whose incomes were 36% lower than those of non-indigenous populations.

Oscar Calvo-González, Director of Prosperity for Latin America and the Caribbean at the World Bank, said that Panama has shown rapid economic growth in recent years; however, improving the quality of employment and addressing inequalities in the labor market are essential to expanding people’s opportunities to escape poverty.

To overcome these challenges, he said, it is key that the country continues to invest in quality education and training aligned with the demands of the labor market. In addition, it must promote policies that reduce territorial and ethnic gaps to achieve sustained growth that benefits all Panamanians.

The report also notes that jobs intensive in new technologies are mostly occupied by people with higher incomes, which can hinder more equitable access to quality jobs.

Meanwhile, lower-skilled workers remain mainly in informal and low-productivity jobs, which limits their opportunities to improve their income and access formal employment.

Despite sustained growth in labour income of 2.2% per year between 2001 and 2023, the report highlights that the Employment Quality Index has declined more rapidly over the past decade than in other countries in the region, mainly affecting low-income households.

In 2023, the poorest 40% of the population were mostly engaged in informal employment. According to data from the Ministry of Economy and Finance, in 2023 poverty reached 21.7% and extreme poverty stood at 9.6%.

For Panama to achieve sustainable and inclusive growth that reduces poverty and inequality, the World Bank indicated that the country can prioritize three key policy areas: closing territorial and ethnic gaps through access to infrastructure and basic services in rural areas and regions; promoting the accumulation of human capital and the generation of productive jobs through improvements in education, health and training programs aligned with labor market demands; and strengthening household resilience to natural hazards through adaptive social protection policies and resilient critical infrastructure, especially in the most vulnerable areas.