The Government of Panama declared a state of emergency in “the entire province of Bocas del Toro” on Friday, in an ad hoc cabinet meeting, in the background of escalating civil unrest opposing Law 462, implemented on March 18 to reform the social security system. The declaration temporarily suspends constitutional rights, among other things, leading to the suspension of local internet and mobile phone services, effective as of June 25.
After the enactment of Law 462, many Panamanians starkly opposed the novel changes to the social security system. Having been reportedly “approved without popular consultation or debate in parliament”, the law changed the social security system from a generational solidarity model, whereby funds were put into a public pool by workers, paid out to the current retirees, to individual retirement accounts whereby each worker’s pension depends entirely on what they save and how their investments perform. These changes apply retroactively to many individuals already working under the previous system. Diego Sanches, leader of the Panamanian teachers’ union, stated that, in practice, teachers would now receive merely up to 35 percent of their salary, in contrast to the previous 60 percent to 70 percent in pension payments under the older model.
Since its implementation, Panamanian labour unions, student associations, and indigenous groups started demonstrating against the policies through “road blockages, industrial strikes, mass mobilizations, and rallies,” facing governmental pushback in the form of significant police presence and arrests. Alongside protests against the reforms, many demand the termination of US military presence and the closure of the country’s largest copper mine.
In recent weeks, tensions in the province of Bocas del Toro escalated from peaceful protests to reported vandalism, looting, and theft, with government forces trying to regain control of the situation. The National Police, through “Operation Omega,” since June 16, has deployed 1,500 forces in the region to counter several roadblocks, which reportedly led to patients without critical medical supplies and “paralyzed the banana industry.”
Subsequently, on June 19, as per the cabinet decree, several violent groups carried out “criminal acts and urban terrorism,” with a local stadium having been partially burned down and several private and public offices having been vandalized and looted. In addition, the local Changuinola Airport was taken over and is currently non-operational.
Panamanian journalist Sabrina Bacal, condemning the violence, stated that:
What we saw last night in Bocas del Toro is not a protest. … Those responsible have caused enormous damage to legitimate social protest. How did we get to this point? There are several factors, but one of them is the aggressive rhetoric of the government and its refusal to engage in dialogue or review Law 462.
With the state of emergency now declared, several constitutional protections are suspended, purporting to enable the government to respond to the protests adequately.
