Americas: Yet another country in Western Hemisphere turns right as Panama elects Jose Mulino as president

This story has been updated

Panama, the isthmus that connects North and South America, is the latest country in the Western Hemisphere to turn right. The country’s electoral tribunal declared conservative candidate, Jose Raul Mulino as the winner of the country’s presidential election on May 5, 2024.

Mulino, a former minister of public security, joins Javier Milei of Argentina (elected in November last year) and Nayib Bukele of El Salvador (elected in June 2019) as yet another rightwing populist elected to power in the region.

Luiz Inacio Lula da Silva defeated incumbent conservative president Jair Bolsonaro in 2022. According to reports though, Bolsonaro — ‘The Trump of the Tropics’ — hopes to contest again. Meanwhile, Donald Trump himself will be making an attempt to return to power in the US Presidential election later this year.

Mulino won 34 per cent of the votes, compared to his nearest rival, Ricardo Lombana, who won 25 per cent.

The president-elect has promised to solve the Central American country’s array of problems including unemployment, inflation and corruption.

Strategic strip of land

Panama is strategically placed in the Americas as it connects two big continents to its north and south. The Spanish conquistador, Vasco Nunez de Balboa was the first to cross the isthmus in 1513 from the Caribbean Sea side and reach the Pacific Ocean.

The Panama Canal, the artificial waterway that cuts across the isthmus and helps connect the Atlantic and Pacific, was built after unsuccessful attempts by the French and finally, a successful one by the Americans.

Read

• Climate change, war disrupting global trade in 3 key sea lanes of Black Sea, Red Sea & Panama Canal: UNCTAD
• What is the Darien Gap? And why are more migrants risking this Latin American route to get to the US?

From 1914 when it opened till 1979, the United States had sole control over the canal. Today, it is governed by the Panama Canal Authority, which answers to the Panamanian government.

“Panama was hit hard by the pandemic, but the economic recovery has been strong. In 2023, GDP grew by 7.5 per cent, exceeding expectations for the third year in a row. A drought has led to a reduction in the daily number of ships going through the Panama Canal, but the impact on revenues of the Panama Canal Authority (ACP) has been limited so far,” the International Monetary Fund (IMF) said about the country in March.

However, GDP growth is projected to decline to 2.5 per cent in 2024, according to the Fund.

“Unemployment, which had surged from 7.1 per cent in 2019 to 18½ per cent in 2020, declined to 7.4 per cent in August 2023. Average inflation declined from 2.9 per cent in 2022 to 1.5 per cent in 2023 and remained well below other countries in the region,” IMF said.

Panama boasts one of the highest levels of forest cover in Central America, with rainforests on about 65 per cent of its land, as well as mangrove and cloud forest ecosystems, Reuters reported in 2021.

Panamanian forests capture more carbon than the total gas emissions that cause the climate crisis generated in Panama, rendering the country carbon negative, according to the Second Biennial Update Report on Climate Change.

However, the World Bank noted this year that climate change posed a significant threat to Panama’s economic growth, affecting the most vulnerable communities.

“The country is among the most exposed in the world to climate-induced natural hazards and altered weather patterns, including increased frequency and intensity of El Nino and La Nina events, which result in severe droughts and floods. Indigenous territories face heightened climate-related challenges, including rising sea levels and other hazards,” the Bank said.

Another reason why Panama holds significance is that it lies on a major route for migrants crossing from South America to the United States.

Would-be immigrants to the US traverse extremely dangerous country made up of humid, swampy rainforest. They are at the mercy of criminal gangs who control the Darien Gap. 

“The victory of Mulino was facilitated by widespread frustration with the current government and in the aftermath of major protests last year against a copper-mining contract that would damage the environment,” Aprajita Kahsyap from the Centre for Canadian, US & Latin American Studies, School of International Studies, Jawaharlal Nehru University told Down To Earth (DTE).

“Mulino has pledged to shut down the Darien Gap and deport migrants who break Panamanian law. A recent drought driven by low rainfall has reduced water levels in the Panama Canal, resulting in fewer ships being allowed through,” she added.

According to Kashyap, Mulino’s ride to power has been marked by avoidance of touching on contentious social issues and absence of emphasis on a particular political ideology in his campaign.

“This will give him more leverage in governance. People have chosen him because Mulino had said that his will be a government of unity; he does not want confrontations, that political persecution is“over” and he will respect freedom of expression. His election is, therefore, more about people’s belief in handling the problems that Panama is facing and not about right-wing ideology,” Kashyap noted.

She added that the new Panamanian administration must try to maximise the benefits with both China and the US, taking advantage of Panama’s strategic location.

We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.