Why retire in Panama?

http://www.panamatodiscover.com

Here's the short version based on my observations and experience following thirty-eight years of living and working all over the world.

1 – It's a democracy with freedom.

I was there during the 2004 elections that were contested by half a dozen political parties. It was considerably less stressful than the US election running at the same time. The new President, Martin Torrijos, a Texas A&M graduate with a degree in economics, gives every appearance of being a solid, intelligent man who has genuine widespread public support. Freedoms of the press, speech, and religion are well-established, and free enterprise is the backbone of Panama's economic life.

2 – There's no military.

Following the dramatic end of General Noriega's regime in 1989, Panamanians decided they would never again fear that a military general would become a dictator. They closed down the military. The national police force is just that, a police force, and the territorial integrity of Panama is guaranteed by the United States. They don't need a military and they have the good sense to know it.

3 – They have the Panama Canal...and more.

The Panama Canal does far more than provide 10% of Panama's GDP (Gross Domestic Product – the total economy). Unlike many small nations that depend on tourism or some natural resource whose price varies depending on the market, the Panama Canal provides Panama with a large, steady, dependable income and will continue to for years to come. It also provides thousands of well-paid jobs for Panamanians. A multi-year, $8 billion expansion of the Panama Canal will add thousands more jobs. These are jobs that pay a great deal more than picking coffee beans or waiting on tourists. And the money from Panama Canal fees reaches out to touch people and businesses everywhere in the country. But there is more than the Canal to Panama. Unlike many other Latin American nations, agriculture plays an important, but relatively small role in the economy. International banking, maritime services, manufacturing, and shipping combine to provide more jobs and tax revenue than the Panama Canal. Panama is also home to the second-largest free trade zone in the world (Hong Kong is the largest) which has had a dramatic impact on the economy, employing twice as many people as the Canal. Panama's economy is far more modern and service-oriented than you might expect. This means stability not only for Panamanians, but for those of us who retire there.

4 – Panama has a thriving middle class.

With the Panama Canal and a number of other established sources of income as mentioned above, Panama's middle class is growing. As Americans and Europeans know from their own experience, a healthy middle class is the foundation for a stable economy and a secure democracy. You don't have to search for the middle class in Panama, you can find them everywhere.

5 – Americans and Europeans are welcome.

I am struck by the fact that Americans and Europeans are not looked at with awe nor are they disliked. Another contribution of the Panama Canal has been the introduction of hundreds of thousands of people from all over the world to Panama over the years, including tens of thousands of Americans assigned to support the Canal before its turn-over to Panama in 1999. Panamanians are perfectly comfortable with people from other nations. They've lived with them for decades and many of their "visitors" remained to become residents. 80% of the population is entirely or partially of European heritage, with the remainder made up of West Indians and native Americans. However, the population has inter-married to such an extent that it's really difficult to separate people into traditional ethnic or racial groups. Finally, the fact that 14% of the people are fully literate in English (and at least that many others are partially literate) can make life easier as well. However, Spanish language instruction is readily and inexpensively available.