Like Chile before it, Panama has the potential to raise its people's standard of living above developing nation status in the near future. Dozens of businesses and institutions already showcase what Panamanians are capable of. Social willingness and ability to carry out the reforms needed to make Panama competitive internationally adds value to its priceless geographical position.
Much work remains to make Panama a first world nation.
The judicial system is badly in need of reform and de-politicization. The level of government corruption is still way too high, a common problem in Latin America. Decentralization- giving more authority and services to cities and provinces is vital. While private education is good, public education needs continued improvement to prepare young Panamanians for the many jobs that will be created in the sophisticated service sector. One third of the population lives in poverty.