Executive summary

Tables

Table 1.1: Annual Growth Rate, 1997-2003 2

Box 1.1 Measuring Welfare in Panama 3

Figure 1.1: Poverty Measures by Area –Headcount Ratio 5

Table 1.2 Who Are the Extreme Poor in 2003? 6

Extreme Poverty Rates and Contributions to National Extreme Poverty by Geographic Area 6

Figure 1.2: Distribution of monthly per capita consumption of the extreme poor 7

Figure 1.3: Gini Coefficient for Consumption 7

Table 1.3: Inequality Measures of Per Capita Consumption by Area 8

Table 1.4: Growth and Inequality Extreme Poverty Decomposition by Area 9

Box 1.2: Understanding the Evolution of Rural Poverty in Panama 9

Table 1.5: Regional Decomposition of the Change in Extreme Poverty by Area 10

Figure 1.5: Extreme Poverty Impact of Different Growth Scenarios – Exercise 1 12

Figure 1.6: Extreme Poverty Impact of Different Growth Scenarios – Exercise 2 12

Figure 2.1: Average years of schooling by year of birth 16

Figure 2.2: Percentage that Completed Primary School by Year of Birth 17

Figure 2.3: Percentage that Completed Secondary School by year of Birth 17

Figure 2.4: Enrollment Numbers by Level of Schooling, 1996-2005 18

Table 2.1: Net Enrollment Rates by Level, 1997 and 2003 19

Figure 2.5: Enrollment by Poverty Group 19

Table 2.2: Changes in Education Services, Teachers and Student Ratios, 1996 to 2005 20

Table 2.3: Repetition and Dropout Rates by Poverty, Geographic 21

Location and Gender, 1997-2003 21

Figure 2.6: Key Health Indicators 1990-2003 22

Table 2.4: Vaccination Rates by Poverty, 2003 - (Ages 0 to 5) 23

Figure 2.7: Percentage Change in Vaccination Coverage by Poverty 24

(Children ages 0 to 5) 24

Table 2.5: Changes in Malnutrition Rates in Children 0-5 25

Table 2.6: Chronic Malnutrition among Children Aged 6-11 25

Table 2.7: Incidence of Illness among 0 to 5 Year Olds, 2003 26

Figure 2.8: Changes in the Incidence of Diarrhea and Respiratory Illness 26

Among 0 to 5 year olds, 1997 to 2003 26

Table 2.8: Self-reported Illness and Injury in 2003 27

and Percent Change from 1997 27

Table 2.9: Reasons for Not Seeking Health Care when Needed, 1997-2003 27

Table 2.10: Time to Health Facility and Waiting in Health Facility, 2003 27

Figure 2.9: Changes in Health Facility Use among Those 28

Who Sought Treatment, 1997-2003 28

Figure 2.9a: Number of Public Health Facilities by Type, 1994 to 2004 28

Figure 2.9b: Public Health Care Facilities by Corregimiento 29

Table 3.1: International Comparison of Social Spending 32

Table 3.2: Distribution of Social Assistance Resources, by Group Age Group, 2005 33

Figure 3.1: Targeting of Nutrition Programs 35

Figure 3.2: Targeting of Education Assistance Programs 36

Table 3.3: Fuel Use for Cooking, 2003 36

(Percentage) 36

Table 3.4: Expenses on Gasoline, 2003 37

(Percentage) 37

Table 3.5: Relative Cost of Nutrition Interventions 37

Table 3.6: Coverage and Costs of Program 40

Table 3.7: IFARHU Assistance Programs, 2005, 2006 40

Table 3.8: Potential Savings from Reduced Subsidies 40

Table 3.9: Types of Interventions 41

Box 3.1: Conditional Cash Transfers 43

Figure 3.4: Extreme Poverty by Corregimiento 44

Figure 3.5: Extreme Poverty Ratios by `Corregimiento’ and Geographic Area 45

Box 3.2: Geographic and Household Targeting. The Case of PRAF in Honduras 46

Table 3.10: Targeting Accuracy: Coverage, Leakage and Total Cost 48

Table 3.11: Targeting Accuracy 48

Comparison Between alternatives Selections Criteria 48

Table 3.12:Transfer as % of the Total Average Consumption 49

Comparison between Different CCT Programs in LAC 49

Figure 3.6: Distributional Impact of the Program: Poverty Reduction Gains Link to Total Cost. Comparison between Different Transfer Schemes 51

Figure 3.7: Distributional impact of the Program assuming a Change in the Household Behavior Due to the Participation in the Program 52

Figure 3.8: Distributional Impact of the Program Assuming a Change in the Household Behavior Due to the Participation in the Program 53

1. 
   Acknowledgments
   

This Poverty Assessment is the product of a collaborative effort between the World Bank, UNDP, IPEA, the Inter-American Development Bank, and Panama’s Ministry of Finance and the Ministry of Social Development. From the World Bank, Magdalena Bendini (LCSPP), Monserrat Bustelo (LCSPP), Benedicte de la Briere (LCSHS), Jose Marcio Camargo (Consultant), Mirela Carvalho (IPEA), Gabriel Demombynes (LCSPP), Samuel Franco (Consultant), Anna Fruttero (LCSPP), Gillette Hall (LCSHS), Jose Marques (Consultant), Marcos Robles (IDB), Kinnon Scott (DECRG), Pedro Olinto (Team Leader), participated under the overall guidance of David Gould (LCC2C) and Jaime Saavedra (LCSPP). From IPEA, Ricardo Paes de Barros and Mirela Carvalho contributed. From UNDO, Maribel Landau provided critical support. From IDB, Marcos Robles collaborated. From MEF, Nuvia de Jarpa, Zuleika Bustos, Roberto Gonzalez and, Margarita Aquino helped with the analysis. From MIDES, Alexis Rodriguez and Julio Dieguez supported the analyis of the CCT. Lucy Bravo and Anne Pillay contributed significantly to the production of the report. The Peer Reviewers were Kathy Lindert (LCSHS); Peter Lanjouw (DECRG); and William Maloney (LCRCE). In addition to the guidance and advice received from peer reviewers, the team is grateful for the helpful comments from Jessica Poppele, David Gould, Laura Rawlings (LCC2C), Helena Ribe, Manuel Salazar (LCSHS) and Jaime Saavedra (LCSPP). Special thanks are also due to Francisco Ferreira (DECRG) and Phillipe Leite (consultant) for their technical assistance.