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Last updated 11 September 2013
Panamanian civil society plays a significant role in several areas of national life, including the environment, judicial reform, human rights, transparency and government oversight, and the preservation of ethnic identity. The country’s civil society organizations (CSOs) are gradually expanding their participation in other matters of public interest.
Civil society developed more slowly in Panama than in other countries in the region because it was primarily comprised of members from the country’s upper economic class who were closely connected to the political elite. The majority of Panama’s populace was not able to counter the small but powerful elite and strategically organize around any particular issue for any length of time. Instead, civic organization emerged only in response to very specific and limited issues, such as housing costs, canal operations and treaties, and the privatization of state-run services.
During the decade following the United States’ removal of General Manuel Noriega from power in 1989, however, there was an enormous influx of international governmental and non-governmental aid flowing into Panama. Panama’s political leaders were aware of the benefits of CSOs in the development of the country and of their contributions to the national economy. Thus, civil society’s influence has surged since the end of dictatorial rule and the institution of democracy in the 1990s.
At the same time, however, members of civil society believe more progress is needed in Panama. In order to better protect the democratic system in the country, CSOs must strengthen their networks and alliances and promote legal reforms conducive to a more participatory democracy.
|Organizational Forms||Religious associations; public interest associations; not-for-profit private interest associations; private interest foundations|
|Registration Body||Legal Directorate of the Ministry of Government (MINGOB)|
|Barriers to Entry||Excessive government discretion; burdensome registration procedures; high costs of registration|
|Barriers to Activities||Excessive government discretion regarding revocation of legal status; burdensome obligations relating to website maintenance|
|Barriers to Speech and/or Advocacy||No legal barriers|
|Barriers to International Contact||Foreigners cannot be members of the governing board of a CSO.|
|Barriers to Resources||No legal barriers|
|Population||3,510,045 (July 2012 est.)|
|Type of Government||Constitutional Democracy|
|Life Expectancy at Birth||Male: 75.18 years
Female: 80.86 years (2012 est.)
|Literacy Rate||Male: 92.5%
Female: 91.2% (2000 census)
|Religious Groups||Roman Catholic 85%, Protestant 15%|
|Ethnic Groups||Mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%|
|GDP per capita||$13,600 (2011 est.)|
|Ranking Body||Rank||Ranking Scale
(best – worst possible)
|UN Human Development Index||58||1 – 182|
|World Bank Rule of Law Index||51.2||100 – 0|
|World Bank Voice & Accountability Index||62.1||100 – 0|
|Transparency International||73||1 – 180|
|Freedom House: Freedom in the World||Status: Free
Political Rights Score: 1
Civil Liberties Score: 2
|Free/Partly Free/Not Free
1 – 7
1 – 7
|Foreign Policy: Failed States Index
||132||177 – 1|
International and Regional Human Rights Agreements
|Key International Agreements||Ratification*||Year|
|International Covenant on Civil and Political Rights (ICCPR)||Yes||1977|
|Optional Protocol to ICCPR (ICCPR-OP1)||Yes||1977|
|International Covenant on Economic, Social, and Cultural Rights (ICESCR)||Yes||1977|
|Optional Protocol to ICESCR (OP-ICESCR)||No||--|
|International Convention on the Elimination of All Forms of Racial Discrimination (ICERD)||Yes||1977|
|Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW)||Yes||1981|
|Optional Protocol to the Convention on the Elimination of Discrimination Against Women||Yes||2001|
|Convention on the Rights of the Child (CRC)||Yes||1990|
|International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families (ICRMW)||No||--|
|Convention on the Rights of Persons with Disabilities (CRPD)||Yes||2007|
|American Convention on Human Rights (ACHR)||Yes||1991|
|Organization of American States (OAS)||Yes||1948|
* Category includes ratification, accession, or succession to the treaty
The Constitution of the Republic of Panama establishes in Article 39 a fundamental guarantee of the right of association:
“It is permitted to form companies, associations and foundations that are not contrary to morality or law. They may obtain recognition as legal persons…”
The Constitution also recognizes freedom of thought and expression in Article 37:
Every person may freely express his opinion orally, in writing or by any other means, without prior censorship, but there are legal responsibilities when by any of these means one affects the reputation or honor of individuals or the social security or public order…”
Finally, the Constitution recognizes the right to peaceful assembly in Article 38:
“The people of the Republic have the right to assemble peaceably and without arms for lawful purposes. Protests or outdoor meetings are not subject to permit and to perform them one is only required to notify the local administrative authority in advance of twenty-four hours…”
National Laws and Regulations Affecting Sector
The national laws and regulations governing civil society organizations (CSOs) include the following:
- Articles 64-75 of the Civil Code define the concept and categories of legal personality. Articles 4-5 of the Civil Code define public interest and private interest associations.
- Executive Decree 170 of 1993 provides the income tax exemption for CSOs According to Article 13 of the Decree, income obtained by CSOs is tax exempt as long as it is used exclusively for purposes of social assistance, public charity, education or sports.
- Executive Decree 524 of 2005 established new requirements for the granting of legal personality by the Ministry of Government and created a Registry of CSOs under the Ministry of Government.
- Executive Decree 627 of December 2006 amended Article 11 of Executive Decree 524 on the Registry of CSOs. Under the Decree, private interest foundations formed pursuant to Law 25 of June 1995 may also register with the Ministry of Government as long as they are established for strictly social purposes and affiliated with the City of Knowledge, a private foundation with public sector participation that provides training and promotes the advancement of science and culture in the country.
- Law 25 of June 1995 regulates private interest foundation requiring that they have a founding charter and assets that are intended specifically for pursuing their previously set objectives.
- Law 33 of June 2010, an amendment to the tax code, regulates the matter of double taxation with countries with which Panama has signed free trade agreements. This law includes an article that establishes the obligation for CSOs to create a webpage where they must publicly list all of their donors.
- Executive Decree 600 of 2005 defines public interest associations as associations linked to public institutions. The state does not consider them civil society actors, although the state does not manage their implementation.
- Resolutions 201-1183 and 201-2788 of 2008 of the General Directorate of Income [Dirección General de Ingresos] under the Ministry of the Economy and Finance must be complied with in order for CSOs to receive public benefit status.
Pending NGO Legislative / Regulatory Initiatives
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Under the Civil Code, there are four civil society organizational forms: (1) religious associations; (2) public interest associations as defined in Executive Decree 600 of 2005; (3) not-for-profit private interest associations as recognized by Executive Decree 524 of 2005; and (4) private interest foundations regulated by Law 25 of 1995.
According to Article 36 of the Constitution, “Religious organizations have legal capacity and manage and administer their property within the limits prescribed by law, as well as other legal persons."
Public interest associations as defined in Executive Decree 600 of 2005 are associations made up of public institutions and other entities recognized by the state. They are linked to government services; indeed, the state does not consider them civil society actors. However, the state does not manage their implementation.
Not-for-profit private interest associations as recognized by Executive Decree 524 of 2005 are privately funded and administered by non-governmental or non-public entities. Their aims relate to the defense of rights or to improving the moral or intellectual conditions of their members or society as a whole.
Private interest foundations are regulated by Law 25 of 1995, which requires that they have a founding charter and assets intended specifically for their objectives. Executive Decree 627 of 2006 provides for recognition of the legal personality of private interest foundations established under Law 25 of 1995, as long as they have (1) strictly social purposes as stipulated in their articles of incorporation; and (2) proof of affiliation with the City of Knowledge, a private foundation with public sector participation that provides training and promotes the advancement of science and culture in the country.
Public Benefit Status
Under Panamanian law, CSOs may be authorized by the Directorate General of Income of the Ministry of Economy and Finance to receive tax-deductible donations. The request for authorization for public benefit status must include a notarized power of attorney; the grounds for the request; a list of the organization’s members; its domicile; a schedule of meetings; an original and current certification from the Public Registry verifying the organization’s existence; an authenticated copy of the Ministry of Government (MINGOB) resolution recognizing its activities as charitable or educational and not-for-profit; a copy of the articles of incorporation and by-laws; a five-year work plan; and proof of continuous activities to the benefit of the community for at least the previous 12 months. The organization must also submit written materials on the progress of its plans and programs; agree to on-site inspections of its facilities, works and projects; and comply with the regulations set out in Resolution 201-1183 of 2008.
Barriers to Entry
The following barriers to entry exist:
- Discretion in processing applications for legal personality: Not-for-profit private interest associations applying for registration must submit the required documentation to the Legal Directorate of the MINGOB, which then verifies that the documents are compliant with the requirements set in Executive Decree 524 of 2005. Some officials designated by the MINGOB to process applications report that they reject as many as 99% of applications for being technically deficient the first time they are submitted, even though by law the applications must be submitted by a lawyer.
- Burdensome documentation requirements: As part of the documentation required for registration, Article 2 of Executive Decree 524 of 2005 requires that not-for-profit private interest associations provide a “work plan” which includes the objectives and main activities that they will develop within their first five years of existence. In addition to the requirements related to soliciting an attorney, articles of incorporation, by-laws, approval of the charter and other documents, this “work plan” is considered to be unnecessary—and premature—for not-for-profit private interest associations in the early stages of their formation. CSO members believe that simplified procedures would make registration more available to the common citizen and expedite the registration process. Currently, the review and approval process for all of this documentation can take as long as three months to one year.
- Burdensome domicile requirements: Article 10 of Executive Decree 524 of 2005 requires not-for-profit private interest associations to maintain owned or rented premises to serve as their domicile. The premises must be where the meetings and the activities undertaken to fulfill the organization’s objectives take place. However, many organizations lack resources to maintain premises, whether owned or leased.
- High costs of the application: The costs of the registration process, not including attorney's fees, can range from 300-500 US dollars in registration fees, which is often unaffordable for groups and associations with limited resources. In addition to the notary fees and stamp duties for all organizations, the centralized registration system, whereby all organizations must file applications at the headquarters of the MINGOB in Panama City, triggers extra costs for organizations based outside of the capital.
Barriers to Operational Activity
The following barriers to operational activity exist:
- Discretion in revoking legal status. Rules relating to the revocation of legal status are not addressed by laws, but rather legal regulations such as executive orders, which allow for a greater degree of discretion. Article 15 of Executive Decree 524 of 2005, for example, prohibits not-for-profit private interest associations from carrying out activities that are illegal or against morals or good customs, and sets forth a vague procedure for revoking legal status. In addition, the MINGOB may revoke legal personality if it determines that the activities of the CSO are contrary to those laid down in the statutes of the organization; even the mere receipt of information alleging illegal activities or activities contrary to a CSO’s statute is sufficient to dissolve a CSO. While there is no record of the government relying on this provision to dissolve a CSO, the decree opens the possibility that if a CSO engages in lawful activities that are not covered in its statute, its legal status may be revoked. Moreover, the decree does not establish basic safeguards against the possibility of a revocation.
- Burdensome obligations. Law 33 of June 30, 2010, which amended Article 34 of Law 50 of 2003, provides measures to prevent the use of funds for money laundering, drug trafficking and terrorism. Specifically, the law requires a CSO to maintain monthly updates on a website, including information on all of its donors. To maintain a website may not be feasible economically or technically for some CSOs.
- No single registry of CSOs. There is no single national registry of CSOs available to the public that includes all CSOs in the country; instead, there are multiple registries, including the Registry of the MINGOB and the Public Registry in the section on legal persons. The existence of both registries allows, in practice, for some organizations to register with the Public Registry and not with the MINGOB. In addition, the MINGOB’s records are not easily accessible to the general public.
Barriers to Speech / Advocacy
There are no legal barriers to speech and advocacy.
Nonetheless, CSOs engaging in advocacy activities may confront challenges in the form of hostile government rhetoric and the establishment of GONGOs (government-organized NGOs). GONGOs are those organizations that have been established by or are affiliated with politicians and political parties; in some cases these organizations receive public funding. Many within civil society believe that the existence of GONGOs has fueled the de-legitimization, fragmentation, lack of coherence and lack of sustainability in the civic sector and weakened the voices of truly independent CSOs.
Barriers to International Contact
Members of the board of a CSO must be Panamanian, except for embassy officials, diplomatic personnel, and functionaries of state agencies and foreign entities that are a represented in Panama, all of whom can be members of a CSO’s board. The general rule against non-Panamanian board membership limits the ability of foreigners who do not fall into one of the specified categories to contribute to civil society in the country.
Barriers to Resources
There are no significant barriers to resources in Panama.
|UN Universal Periodic Review Reports||
Ninth session Geneva, 1-12 November 2010
|Reports of UN Special Rapporteurs|
|USIG (United States International Grantmaking) Country Notes||
|U.S. State Department|
|Failed States Index Reports|
|IMF Country Reports|
|International Commission of Jurists||
|International Center for Not-for-Profit Law Online Library|
While we aim to maintain information that is as current as possible, we realize that situations can rapidly change. If you are aware of any additional information or inaccuracies on this page, please keep us informed; write to ICNL at firstname.lastname@example.org.
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