It is a place where many people from around the world, notably America, are going to retire ‘on the cheap’. It has great promise, but it also has some risk. The infrastructure is very familiar, but not in great condition by our standards; and in any area outside of main cities and resorts is deplorable.  There are issues with the stability and consistency of its politics.  Often the locals talked of ‘bad mayors’ or ‘bad representatives’ skimming money and doing nothing for their constituency (Well duh! All politics are the same!).  There is the threat of the growing tendency in South America to follow the currently-popular leftist-socialist leanings of Venezuela and Hugo Chavez; and don’t discount that the ‘Chavez’ movement could lead to actual revolution in countries like Panama, where there are huge disparities in wealth and education.

In Panama, 80% of the wealth is controlled by about a couple of dozen old families and new drug-king-pins. The vast build-out of high-rise condominium towers and gated retirement communities further accentuates the economic disparities and puts them ‘in the face’ of the overwhelmingly poor general population; fertile ground indeed for revolutionary thoughts.

On the positive side, Panama is closely aligned with Costa Rica, and the US strongly supports both countries. With control of the canal, the entire world is concerned that Panama remains stable and the canal remains open to world trade. The whole world, however, doesn’t care if it is a democracy or a dictatorship, only that the canal is open and available to business.  The US, which accounts for about 70% of canal traffic, of course wants the country to develop along the lines of a capitalist democracy. I hope that if things turn a different direction politically, that we keep our involvement limited to economics don’t get all charged up like in Iraq.

Those with retirement investments, and many are betting their entire bankroll in Panama, I hope the government doesn’t change direction and look at nationalizing foreign investment; an occurrence all too familiar in the general geo-political neighborhood. This is the main risk, but it is one that is impossible to calculate with any certainty.

I’d go back! That my final and best evaluation. However, I would not invest in a retirement or vacation home there; renting is just fine with me. I would recommend Panama as a vacation spot to anyone, with some reservations on certain areas depending on the ‘adventure quotient’ of the person thinking of going. Go Panama!