Panama Government Effectiveness

Panama’s government effectiveness, as measured by the World Bank’s Worldwide Governance Indicators, has deteriorated significantly since the mid-1990s, declining from an all-time peak of 0.36 in 1998 to a low of -0.35 in 2025, the weakest score in the country’s recorded history. The latest value places Panama at rank 124 globally, on par with Türkiye, which shares the same score, and just above Egypt at -0.36. Over the 26-year coverage period, the trajectory has been markedly downward, reversing early gains and reflecting weakening public service quality, policy implementation, and credibility of institutions. This decline contrasts sharply with the relative improvement seen in the late 1990s, suggesting institutional setbacks in recent years, possibly linked to corruption scandals and political instability. With Panama now scoring below the global median, sustained reforms in transparency, bureaucratic capacity, and judicial independence would be necessary to reverse the current trajectory. Absent structural improvements, the trend is likely to remain stagnant or continue declining in the near term.