Caribbean & Central America - August 2008 (ISSN 1741-4458)

President Martí­n Torrijos' dwindling popularity showed little sign of picking up last month, with his perceived failure to address inflation together with his controversial security reforms provoking protests across the country. Worryingly for the president, the issues are proving a rallying point for the traditionally divided union movement.

On 14 August some 15,000 Panamanians marched in the capital, with protests also taking place in other key cities such as David (in Chiquiruí­ province); Santiago (Veraguas) and Changuinola (Bocos del Toro) to demand an end to high living costs and inflation, which reached 9% in the first few months of 2008 - one of the highest levels for 17 years. The protests point to the failure of recently unveiled populist measures (see sidebar) to satisfy public demand, with the umbrella union which organised the march, the Frente Nacional por la Defensa de los Derechos Económicos y Sociales (Frenadeso), warning Torrijos of further strike action if its demands are not addressed.

Increasingly, the issue is proving a rallying point for the national union movement. The movement has traditionally been split between Frenadeso, (which includes the construction workers union, Suntracs, and the national teachers association, Asoprof) and rival union group, Unidad de Lucha Integral del Pueblo, (Ulip, which includes the Coca-Cola workers' union and unions representing non-medical Seguro Social workers). Furthermore, spiralling food prices have affected rural areas which are normally absent from confrontations between the government and the unions.

Meanwhile, Torrijos' attempts to implement security reforms by decree is proving another rallying point for the opposition and was included on the Frenadeso agenda too. Torrijos was granted “extraordinary powers" by congress at the end of June for two months [RC-08-07] to create four new state security entities: a national aero-naval service; a national border service; a council for public security and national defence; and a national intelligence and national security service.

The move has been condemned as an attempt to “remilitarize" the country, with the human rights ombudsman and anti-corruption executive secretary criticising the reforms as “unconstitutional". Sectors formerly sympathetic to the government - such as the media and the Catholic Church - have also come out against the reforms. They argue that the proposals should be discussed by congress and amended, rather than being forced through by decree.

• Populist measures

In what the opposition has cynically dismissed as a bid to buy back public support, President Martí­n Torrijos unveiled a series of measures designed to combat high living costs. Costing the state some US$36.2m, the measures will benefit more than 160,000 public sector employees. They include: a US$160 one-off bonus for those earning less than US$1000 a month; a US$30-US$50 increase for the 9,000 teachers working in remote areas (both as of this month); a US$25 monthly increase for public sector workers earning US$300 (as of September 2008) and the reimbursement of US$1.6m in income tax.