Country: Panama Sources: Government of Panama, UN Children’s Fund, World Bank One in three children lives in poverty in Panama. Childhood is a critical stage for the development of skills and capacities over the life cycle. Therefore, reducing child poverty is also an investment in strengthening the country’s human capital and laying the foundations for more productive future labour market participation. A new report prepared by The World Bank and UNICEF, in collaboration with the Ministry of Social Development, analyses the incidence and characteristics of monetary poverty among children and adolescents in Panama, and presents policy recommendations aimed at reducing this condition among Panamanian families. For the first time in the country, the report incorporates detailed poverty estimates at the territorial level: provinces, districts and municipalities, allowing for more precise identification of the territories where the need for intervention is most urgent. This territorial approach is key to ensuring that economic growth and social investment translate into adequate development throughout the life cycle and better employment opportunities in adulthood. The results show that, despite the economic growth recorded in recent decades and improvements in the quality of life of the Panamanian population, child poverty remains a significant challenge and exhibits deep territorial inequalities. For example, in indigenous comarcas, 83% of children live in poverty and 55% in extreme poverty. Continue reading to learn more findings and download the full report in Spanish here. Five Facts to Understand Monetary Child Poverty in Panama In Panama, 34.5% of children and adolescents live in households experiencing monetary poverty, and 16% live in extreme poverty. This is equivalent to approximately one in three children living in poverty and one in six living in extreme poverty. There are deep territorial inequalities. Child poverty shows strong geographic disparities. While in provinces such as Panamá Oeste or Los Santos the incidence is below 20%, in indigenous comarcas it exceeds 80%. In the Ngäbe-Buglé comarca, for example, more than 90% of children live in poverty. These disparities exist even within the same province or district. For example, within the province of Veraguas there are districts such as Santiago, where more than 16% of children and adolescents are poor, and others such as Santa Fe, where 79% of children live in poverty. Households with children living in poverty have parents with lower educational levels and limited labour market opportunities. For instance, heads of households with children in poverty have low human capital: 6 out of 10 have at most completed primary education, and 3 out of 10 do not participate in the labour market, limiting the household’s chances of escaping poverty. Child poverty is more prevalent in certain types of households. For example, it is more frequent in large households with several children and adolescents, as well as during early childhood (from birth to six years). In addition, rural and indigenous territories face multiple disadvantages related to limited access to social services, formal employment and basic infrastructure, which also translates into higher poverty. Designing policies that address poverty reduction while taking these characteristics into account is key to ensuring that, in the long term, the country develops fully prepared human capital capable of taking on better and higher-quality jobs. What Policy Recommendations Emerge from the Report? Strengthen the efficiency and impact of child-focused transfer programmes by prioritising the targeting of spending towards the most vulnerable households and adjusting transfer amounts according to household composition and size. Prioritise territorial investments in areas with the highest levels of child poverty, through the development of multisectoral interventions in territories with high concentrations of poverty, such as indigenous comarcas and rural areas, that integrate health, education, nutrition, water and sanitation services, along with basic infrastructure. Promote the economic inclusion of households through policies that strengthen their income-generation capacity, including employment, training and entrepreneurship support programmes, with special emphasis on women’s labour market participation and on female-headed single-parent households. Expand early childhood development services by increasing coverage and improving the quality of nutrition and early education services. Investing in children in Panama means investing in the country’s present and future. The early years of life are a critical stage for cognitive development and future social mobility, and without a childhood that has access to quality services and nutrition, Panama will not be able to meet its development challenges. Each year of delay in reducing child poverty entails significant social and economic costs for the country.

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