Part 650

National holiday: Independence Day, 3 November (1903)

Constitution: 11 October 1972; major reforms adopted April 1983

Legal system: based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: 18 years of age; universal and compulsory

Executive branch: chief of state : President Ernesto PEREZ BALLADARES Gonzalez Revilla (since 1 September 1994); First Vice President Tomas Gabriel ALTAMIRANO DUQUE (since 1 September 1994); Second Vice President Felipe Alejandro VIRZI Lopez (since 1 September 1994); note - the president is both the chief of state and head of government head of government : President Ernesto PEREZ BALLADARES Gonzalez Revilla (since 1 September 1994); First Vice President Tomas Gabriel ALTAMIRANO DUQUE (since 1 September 1994); Second Vice President Felipe Alejandro VIRZI Lopez (since 1 September 1994); note - the president is both the chief of state and head of government cabinet: Cabinet appointed by the president elections: president and vice presidents elected on the same ticket by popular vote for five-year terms; election last held 8 May 1994 (next to be held 9 May 1999) election results: Ernesto PEREZ BALLADARES elected president; percent of vote - Ernesto PEREZ BALLADARES (PRD) 33%, Mireya MOSCOSO DE GRUBER (PA) 29%, Ruben BLADES (MPE) 17%, Ruben Dario CARLES (MOLIRENA) 16%

Legislative branch: unicameral Legislative Assembly or Asamblea Legislativa (72 seats; members are elected by popular vote to serve five-year terms) elections : last held 8 May 1994 (next to be held 9 May 1999) election results: percent of vote by party - NA; seats by party - PRD 32, PS 4, PALA 1, PA 14, MPE 6, MOLIRENA 4, PLA 3, PRC 3, PL 2, PDC 1, UDI 1, MORENA 1 note: legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula

Judicial branch: Supreme Court of Justice (Corte Suprema de Justicia), nine judges appointed for 10-year terms; five superior courts; three courts of appeal

Political parties and leaders: governing coalition : Democratic Revolutionary Party (PRD), Gerardo GONZALEZ; Liberal Republican Party (PLR), Rodolfo CHIARI; Labor Party (PALA), Carlos Lopez GUEVARA other parties: Solidarity Party (PS), Samuel LEWIS GALINDO; Nationalist Republican Liberal Movement (MOLIRENA), Ramon MORALES Quijano; Authentic Liberal Party (PLA), Arnulfo ESCALONA; Arnulfista Party (PA), Mireya MOSCOSO DE GRUBER; Christian Democratic Party (PDC), Ruben AROSEMENA; Liberal Party (PL), Roberto ALEMAN Zubieta; Papa Egoro Movement (MPE), Gloria YOUNG; Civic Renewal Party (PRC), Tomas HERRERA; National Unity Mission Party (MUN), Jose Manuel PAREDES; Independent Democratic Union (UDI), Jacinto CARDENAS; National Renovation Movement (MORENA), Pedro VALLERINO

Political pressure groups and leaders: National Council of Organized Workers (CONATO); National Council of Private Enterprise (CONEP); Panamanian Association of Business Executives (APEDE); National Civic Crusade; Chamber of Commerce; Panamanian Industrialists Society (SIP); Workers Confederation of the Republic of Panama (CTRP)

International organization participation: AG (associate), CCC, ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, IOM, ISO, ITU, LAES, LAIA (observer), NAM, OAS, OPANAL, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WTrO (applicant)

Diplomatic representation in the US: chief of mission: Ambassador Eduardo Gonzalez MORGAN chancery: 2862 McGill Terrace NW, Washington, DC 20008 telephone: (202) 483-1407 consulate(s) general : Atlanta, Houston, Miami, New Orleans, New York, San Francisco, San Juan (Puerto Rico), Tampa

Diplomatic representation from the US: chief of mission: Ambassador William John HUGHES embassy: Avenida Balboa and Calle 38, Apartado 6959, Panama City 5 mailing address : American Embassy Panama, Unit 0945, APO AA 34002 telephone: 227-1377 FAX: 227-1964

Flag description: divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red, the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center

Economy

Economy - overview: Because of its key geographic location, Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism. Panama's former protectionist policies have taken their toll, and the economy has been sluggish the last two years, with GDP growth at 1.9% in 1995 and 1.5% in 1996. Although tourism and the Panama Canal posted growth in 1996, most sectors remained stagnant, and some, like the Colon Free Zone, banana and shrimp exports, and construction, were down from 1995. Although the PEREZ BALLADARES administration has advanced an economic reform program designed to liberalize the trade regime, attract foreign investment, privatize state-owned enterprises, institute fiscal reform, and encourage job-creation through labor code reform, the positive effects of this program have not yet been felt at the macroeconomic level. In 1996, the government concluded a Brady-type plan to restructure the country's commercial debt - one of the highest in the world in per capita terms - allowing it to reenter international financial markets. Panama also completed all requirements to join the World Trade Organization (WTrO) and is awaiting legislative ratification to become a full member.

GDP: purchasing power parity - $14 billion (1996 est.)

GDP - real growth rate: 1.5% (1996 est.)

GDP - per capita: purchasing power parity - $5,300 (1996 est.)

GDP - composition by sector: agriculture: 10% industry : 16% services: 74% (1995 est.)

Inflation rate - consumer price index: 1.3% (1996 est.)

Labor force: total : 1.015 million (1996 est.) by occupation: government and community services 31.8%, agriculture, hunting, and fishing 26.8%, commerce, restaurants, and hotels 16.4%, manufacturing and mining 9.4%, construction 3.2%, transportation and communications 6.2%, finance, insurance, and real estate 4.3% note: shortage of skilled labor, but an oversupply of unskilled labor

Unemployment rate: 14% (1996 est.)

Budget: revenues : $1.86 billion expenditures: $1.86 billion, including capital expenditures of $NA (1995)

Industries: construction, petroleum refining, brewing, cement and other construction materials, sugar milling

Industrial production growth rate: 0.4% (1995 est.)

Electricity - capacity: 1.1405 billion kW (1995)

Electricity - production: 3.519 billion kWh (1995)

Electricity - consumption per capita: 1,069 kWh (1995 est.)