Political Culture of Democracy in Panama, 2010 Democratic Consolidation in the Americas in Hard Times By Orlando J. Pérez Central Michigan University Mitchell A. Seligson Scientific Coordinator and Editor of the Series Vanderbilt University This study was done with support from the Program in Democracy and Governance of the United States Agency for International Development. The opinions expressed in this study are those of the authors and do not necessarily reflect the point of view of the United States Agency for International Development. May, 2011 Political Culture of Democracy in Panama, 2010 Table of Contents LIST OF FIGURES.................................................................................................................................................................. V LIST OF TABLES...................................................................................................................................................................IX PREFACE ................................................................................................................................................................................XI PROLOGUE: BACKGROUND OF THE STUDY............................................................................................................XIII Acknowledgements ............................................................................................................................................................. xx EXECUTIVE SUMMARY ...............................................................................................................................................XXIII PART I: HARD TIMES AND THEIR EFFECTS ON DEMOCRACY...............................................................................1 CHAPTER I . HARD TIMES IN THE AMERICAS: ECONOMIC OVERVIEW............................................................ 3 Introduction..........................................................................................................................................................................3 Economic Overview..............................................................................................................................................................3 Dimensions of the Economic Crisis in Panama ...................................................................................................................9 Trends in Democratic Development...................................................................................................................................10 Dimensions of Democracy in Panama ...............................................................................................................................12 The Relationship between Hard Times and Democracy.....................................................................................................14 CHAPTER II . CITIZEN PERCEPTIONS AND EXPERIENCES DURING HARD TIMES IN THE AMERICAS.. 17 Introduction........................................................................................................................................................................17 Perceptions of the Magnitude of the Economic Crisis .......................................................................................................17 Who is to Blame for the Economic Crisis?.........................................................................................................................20 Evidence for Panama .........................................................................................................................................................22 Personal Experiences with Economic Instability ...............................................................................................................23 Jobs Loss........................................................................................................................................................................................... 23 Reported Decrease in Household Income ..........................................................................................................................27 Who Was Most Affected by Economic Hardship? ..............................................................................................................29 Perceptions of Both the Personal and National Economy .................................................................................................31 Conclusion..........................................................................................................................................................................33 CHAPTER III . DEMOCRATIC VALUES IN HARD TIMES......................................................................................... 35 Introduction........................................................................................................................................................................35 Support for Democracy ......................................................................................................................................................44 Support for the Political System.........................................................................................................................................48 Satisfaction with Democracy..............................................................................................................................................55 Support for Military Coups ................................................................................................................................................60 Conclusion..........................................................................................................................................................................64 PART II: RULE OF LAW, CRIME, CORRUPTION, AND CIVIL SOCIETY ............................................................... 67 CHAPTER IV . RULE OF LAW, CRIME, AND CORRUPTION.................................................................................... 69 Introduction........................................................................................................................................................................69 Theoretical Background.....................................................................................................................................................69 A. Perception of Insecurity and Crime Victimization.........................................................................................................71 Crime Victimization.......................................................................................................................................................................... 76 B. Corruption .....................................................................................................................................................................83 Theoretical Background .................................................................................................................................................................... 83 The Measurement of Corruption ....................................................................................................................................................... 85 Perception of Corruption................................................................................................................................................................... 86 Corruption Victimization .................................................................................................................................................................. 88 C. The Impact of Crime, Insecurity and Corruption on Democracy ..................................................................................93 D. Support for the Rule of Law and the Impact of Crime and Insecurity ...........................................................................96 Conclusion........................................................................................................................................................................100 CHAPTER V . LEGITIMACY, SYSTEM SUPPORT, AND POLITICAL TOLERANCE.......................................... 101 Introduction......................................................................................................................................................................101 Theoretical Background...................................................................................................................................................101 The Legitimacy/Tolerance Equation ................................................................................................................................101 A. System Support.............................................................................................................................................................104 Theoretical Background .................................................................................................................................................................. 104 ©LAPOP: Page iii Political Culture of Democracy in Panama, 2010 B. Political Tolerance.......................................................................................................................................................110 Theoretical Background .................................................................................................................................................................