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Panama: Strengthening Local Democracy in the District of Panama

Avatar: Official proposal Official proposal

The strengthening of local democracy in the District of Panama consisted of transforming municipal management from a centralized and vertical model into a participatory and horizontal one, where citizens become decision-makers regarding public investment in their communities.

Context: The District of Panama, with 1.08 million inhabitants across 26 “corregimientos”, historically faced a municipal management system with little real citizen participation. Law 37 of 2009 (Decentralization) marked a turning point by requiring the municipality to institutionalize formal participation mechanisms, supported by the Constitution and reinforced by Law 66 of 2015 and Executive Decree No. 10 of 2017.

How it works: The practice operates through an annual Participatory Budgeting cycle in all 26 corregimientos. Each cycle begins with a needs assessment led by Local Development Boards (JDL) — elected residents who articulate neighborhood demands. This is followed by open public consultation forums where participants vote on priority projects, a technical evaluation by the National Decentralization Authority (AND), and finally implementation supervised by the Office of the Comptroller General and citizen oversight committees composed of residents.

Inclusion: Specific spaces were created for youth, women, and persons with disabilities. Projects prioritize women’s urban safety, youth leadership, and universal accessibility in all implemented works. Female participation increased from 5,360 to 6,568 between administrations, consolidating structural gender parity.

Results: 215 projects have been implemented — including parks, sports fields, health centers, and sidewalks — all originating from citizen proposals. In 2024–2025, 11,993 citizens participated directly. The practice connects the municipality with the AND, Comptroller General, Attorney General’s Office, ANTAI, and organizations such as AMUPA and IRI, forming a democratic ecosystem aligned with SDGs 5, 11, and 17.

Sustainability: Property tax (IBI) funds are legally allocated to corregimientos, ensuring the continuity of the practice despite changes in administration. With more than 9 years of implementation, it has withstood political transitions and has become a permanent citizen right in the District of Panama.

More information:
www.participa.mupa.gob.pa
www.transaparencia.gob.pa

https://www.oidp.net/docs/repo/doc1953.pdf


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Panama: Strengthening Local Democracy in the District of Panama

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