Project Document Social protection systems in Latin America and the Caribbean: Panama Alexis Rodríguez Mojica Economic Commission for Latin America and the Caribbean (ECLAC) This document was prepared by Alexis Rodríguez, consultant with the Social Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC), and is part of a series of studies on “Social protection systems in Latin America and the Caribbean”, edited by Simone Cecchini, Social Affairs Officer, and Claudia Robles, consultant, with the same Division. The author wish to thank Milena Lavigne and Humberto Soto for their valuable comments. The document was produced as part of the activities of the projects “Strengthening social protection” (ROA/1497) -and “Strengthening regional knowledge networks to promote the effective implementation of the United Nations development agenda and to assess progress” (ROA 161-7), financed by the United Nations Development Account. The views expressed in this document, which has been reproduced without formal editing, are those of the author and do not necessarily reflect the views of the Organization. LC/W.526 Copyright © United Nations, November 2013. All rights reserved Printed in Santiago, Chile – United Nations ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Panama Contents Foreword .......................................................................................................................................... 5 I. Introduction .............................................................................................................................. 7 II. Economic and social indicators ............................................................................................... 9 A. Social spending .............................................................................................................. 13 B. Employment and unemployment .................................................................................... 14 III. Basic structure of the social protection and promotion system ............................................. 17 A. Vulnerable groups and the life cycle: dynamic of the legislation ................................... 20 IV. Non-contributory social protection ......................................................................................... 23 A. Opportunities Network .................................................................................................... 25 B. The “100 a los 70” programme ....................................................................................... 26 V. Contributory social protection ................................................................................................ 29 A. Coverage ........................................................................................................................ 32 B. Programmes run by the Social Security Fund ............................................................... 33 C. Disability, old age and death (IVM) ................................................................................ 33 D. Health, disease, and maternity ....................................................................................... 34 E. Professional risks ........................................................................................................... 34 VI. Education system ................................................................................................................... 35 VII. Health system ........................................................................................................................ 41 VIII. Housing policies ..................................................................................................................... 45 A. Housing programmes .................................................................................................... 46 IX. Employment policies .............................................................................................................. 49 X. Final thoughts ........................................................................................................................ 51 Bibliography ................................................................................................................................... 53 Tables TABLE 1 PANAMA: TOTAL AND PER CAPITA GROSS DOMESTIC PRODUCT, 2000-2010 .......... 9 TABLE 2 PANAMA: ECONOMIC PERFORMANCE INDICATORS, 2009-2011 ............................... 10 TABLE 3 PANAMA: GENERAL AND EXTREME POVERTY LINES, BY ANNUAL AND MONTHLY CONSUMPTION, 1997, 2003 AND 2008 ................................................ 10 3 ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Panama TABLE 4 PANAMA: INCIDENCE OF POVERTY, 2003 AND 2008................................................... 10 TABLE 5 PANAMA: POVERTY AND EXTREME POVERTY, 2007-2011 ......................................... 11 TABLE 6 PANAMA: PROPORTION OF THE POPULATION LIVING IN CONDITIONS OF POVERTY AND INDIGENCE BY AREA, 2006-2011 ................................................... 11 TABLE 7 PANAMA: INCIDENCE, DEPTH AND SEVERITY OF POVERTY AND EXTREME POVERTY, BY AREA, 2003 AND 2008 .................................................. 12 TABLE 8 PANAMA: POPULATION LIVING ON AN INCOME OF LESS THAN ONE DOLLAR A DAY, BY AREA, 1997, 2003 AND 2008 ......................................................................... 12 TABLE 9 PANAMA: SOCIAL PUBLIC SPENDING BY SECTORS, 2007-2011 ................................ 13 TABLE 10 PANAMA: LABOUR MARKET INDICATORS, 2000-2010 ................................................. 14 TABLE 11 PANAMA: AVERAGE NUMBER OF EMPLOYEES AND AVERAGE MONTHLY WAGES IN ESTABLISHMENTS WITH FIVE OR MORE EMPLOYEES, BY ECONOMIC ACTIVITY AND REGION 2009-2012....................................................... 15 TABLE 12 PANAMA: EMPLOYED POPULATION BY OCCUPATIONAL STRUCTURE 2000-2010 ................................................................................................... 16 TABLE 13 PANAMA: LIFE RISKS AND PROGRAMMES TO ADDRESS THEM, BY AGES AND SOCIAL PROGRAMMES ......................................................................... 18 TABLE 14 PANAMA: AGREEMENTS OF THE NATIONAL COALITION FOR DEVELOPMENT, 2007 ............................................................................................. 19 TABLE 15 LAWS, DECREES, DECISIONS AND RESOLUTIONS APPROVED IN THE REPUBLIC OF PANAMA, 1900-2000 ................................................................... 21 TABLE 16 PANAMA: PROPORTION OF THE POPULATION BY COMPARATIVE WELFARE LEVEL, AND BY PROVINCES AND INDIGENOUS AREAS, 2011 ................. 24 TABLE 17 PANAMA: MAIN PUBLIC INVESTMENTS TO BE UNDERTAKEN IN THE PERIOD 2010-2014 .............................................................................................. 24 TABLE 18 PANAMA: NUMBER OF HOUSEHOLDS BENEFITED AND CONDITIONAL TRANSFERS PAID IN THE OPPORTUNITIES NETWORK PROGRAMME BY PROVINCES AND INDIGENOUS COMARCAS, 2009-2011 ....................................... 25 TABLE 19 INDICATORS OF THE OLDER ADULT POPULATION, 2007 ........................................... 27 TABLE 20 PANAMA: AVERAGE AND AMOUNT PAID IN THE “100 A LOS 70” PROGRAMME, BY PROVINCES AND INDIGENOUS COMARCAS, 2009-2011 ....................................... 28 TABLE 21 PROBLEMS IDENTIFIED IN THE DEBATES ON THE REFORM OF THE SOCIAL SECURITY FUND.................................................................................. 30 TABLE 22 MINIMUM AND MAXIMUM AMOUNT, INCREASE AND SUBSIDIZING OF DISABILITY AND OLD-AGE PENSIONS, 2005-2009, 2010-2015 AND 2015 AND LATER ..................................................................................................... 31 TABLE 23 PANAMA: POPULATION COVERED BY THE SOCIAL SECURITY FUND, 2000-2007 .......................................................................................................................... 32 TABLE 24 PANAMA: POPULATION OF INSURED AFFILIATES, PENSIONERS, RETIREES AND BENEFICIARIES 1980-2007 .................................................................. 32 TABLE 25 PANAMA: DISABILITY, OLD AGE AND DEATH PROGRAMME, AS A PERCENTAGE OF THE CONTRIBUTION, 2005-2014 ............................................ 33 TABLE 26 PANAMA: CENTRAL GOVERNMENT EXPENDITURE ON EDUCATION, AND COST PER STUDENT, BY LEVEL, 2006-2010 ........................................................ 36 TABLE 27 PANAMA: INDICATORS OF OFFICIAL EDUCATION BY LEVEL, 2005 2009 .................. 37 TABLE 28 PROGRAMMES AIMED AT IMPROVING EDUCATION, 2009-2014 ................................ 38 TABLE 29 PANAMA: PROJECTS TO RESTORE THE HEALTH SECTOR, 2009-2014 .................... 43 TABLE 30 CHARACTERISTICS OF HOMES IN PANAMA, 1990, 2000 AND 2010 ........................... 46 TABLE 31 PANAMA: HOUSING PROGRAMMES, PROJECTS AND ACTIONS ............................... 47 TABLE 32 MIVIOT PROJECTS TO GUARANTEE DECENT HOUSING TO ALL PANAMANIANS, 2009-2014 .............................................................................................. 48 TABLE 33 PANAMA: TREND OF EMPLOYMENT AND LABOUR-MARKET POLICIES, 1994-1999/2009-2014 ......................................................................................................... 50 4 ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Panama Foreword Simone Cecchini Claudia Robles This report is part of a series of national