Politics in Panama is characterized by a democratic system with a presidential republic framework. The country operates under a multi-party system, although two major political parties, the Democratic Revolutionary Party (PRD) and the Panameñista Party, have traditionally dominated the political landscape.  Panama’s political history has been shaped by a mixture of stability and occasional turbulence. Since the end of military rule in 1989, the country has experienced a relatively consistent democratic governance. Elections are held regularly, and power is peacefully transferred between different political parties. The presidency is the most powerful political position in Panama. The president is both the head of state and the head of government, with significant executive powers. The president is elected for a single five-year term and can only be re-elected after a non-consecutive term.  Economic issues, such as job creation, poverty reduction, and infrastructure development, often feature prominently in Panamanian politics. Panama’s strategic geographic location, the Panama Canal, and the service sector have fueled its economic growth and influenced political decision-making.

Corruption has been a persistent challenge in Panamanian politics. Efforts to combat corruption and strengthen transparency have been made, but further progress is still needed. The country has taken steps to strengthen its legal framework and institutions to address these issues.  Panama’s foreign policy is characterized by its strategic partnerships and regional cooperation. The country has traditionally maintained strong ties with the United States while seeking to diversify its international relationships. Panama plays an active role in regional organizations such as the Organization of American States (OAS) and has been involved in mediation efforts in conflicts within the region.  Overall, Panama’s political landscape is defined by democratic governance, a multi-party system, and a focus on economic development. While challenges such as corruption persist, the country continues to make efforts to strengthen its institutions and address these issues to ensure a prosperous and stable future.