Since 1982 IFAD has approved eight loans to Panama for a total of US$80.7 million, for projects with a total cost of US$193.7 million. The organization has also financed three grants for a total of US$325,000.

All IFAD operations have supported the development of productive activities in the poorest areas and among the poorest, most vulnerable people. IFAD-financed projects in the country have a geographic focus. Activities strengthen links between communities and regional and provincial entities, contributing to the inclusion of isolated and marginalized areas. Virtually all of Panama’s indigenous peoples who reside within indigenous areas are poor. Continuous support to these groups is the primary target for joint IFAD-government operations.

The latest IFAD-financed project is the Participative Development and Rural Modernization Project, which IFAD supervises directly. The project will work to improve poor rural people’s access to financial services and markets. 

The ongoing Sustainable Rural Development Project for the Ngöbe-Buglé Territory and Adjoining Districts was designed to counter the high rates of poverty and extreme poverty among indigenous peoples. The recently completed Sustainable Rural Development Project in the Provinces of Cocle, Colon and Panama West
worked to help small-scale farmers increase their productivity and their production, and supported the creation of rural microenterprises. 

Earlier projects, now closed, have benefited indigenous communities by supporting economic development, income-generating activities, environmental conservation and natural resource management. The projects were the Sustainable Agricultural and Environmental Protection Project for the Darien, the Rural Development Project for Ngöbe Communities and the Rural Development Project for the Guaymi Communities.

IFAD’s strategy

The organization’s strategic goal is to promote pro-poor local development, using inclusive approaches to ensure that the more vulnerable groups among indigenous and non-indigenous rural poor people can benefit from rural economic growth and improve their livelihoods. IFAD supports the government’s plans for local development by helping transform the traditional and isolated rural sector into a modern and competitive productive, market-integrated sector. Empowerment of rural poor people and the improvement of their livelihoods is at the centre of IFAD’s strategy.

Through its operations in Panama, IFAD works to achieve two main strategic objectives:

• to increase income opportunities for poor rural people and reduce ethnic and gender-based inequalities by improving access to productive support services, infrastructure and markets
• to improve local government and social empowerment, with special attention to indigenous and ethnic groups

IFAD investments supports innovations that ensure sustainable benefits for poor rural people, such as:

• the transformation of subsistence farmers and non-farm workers into market-oriented rural microentrepreneurs engaged in activities that generate increased and sustainable income
• the development and consolidation of poor people’s participation in long-term rural development planning at the local and provincial levels

Country strategic opportunities programme

Source: IFAD