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Featuring a viewpoint with Mark Laquis, Managing Partner, Pollonais, Blanc, de la Bastide & Jacelon, on the financial services regulatory framework, this chapter provides an overview of T&T’s legal framework, covering a range of topics from intellectual property rights to labour laws and immigration, among others.

With a hydrocarbons-based economy, T&T ranks highly on a number of economic indicators, despite its small size. According to estimates from the IMF, T&T’s per capita income was $21,310 in 2014, the third-highest level in the Americas, after the US and Canada. The World Bank categorises T&T as a high-income nation, while the World Economic Forum classifies it as an innovation-driven economy. The strength of T&T’s energy sector has enabled the country to maintain a stable and strong currency, and post persistent current account surpluses. However, with weaker oil and gas prices and reserves expected to be exhausted by 2025-30, according to the World Bank, economic diversification will be high on the agenda for policymakers. Though lower hydrocarbons prices are set to reduce government revenues, the country’s economic fundamentals should remain strong in 2015 and beyond. This chapter features interviews with Larry Howai, Minister of Finance and the Economy; Vasant Bharath, Minister of Trade, Industry, Investment and Communications (MTIIC); and Gerard Johnson, General Manager of the Caribbean Country Department, Inter-American Development Bank (IDB).

Featuring an interview with Eduardo Morgan Jr, Principal Partner and Chairman of the Board at Morgan & Morgan, this chapter provides an overview of Panama’s legal framework, covering a range of topics from intellectual property rights to labour laws and investment incentives, among others.

This chapter provides an overview of Panama’s tax regime, covering areas of particular interest to investors such as corporate and individual income tax, dividend tax, taxation treaties and import duties, among other areas. In addition, it features a viewpoint by Luis Laguerre, Partner at KPMG Panama, on tax treaties and Panama’s international financial services cluster.

Despite a number of setbacks, Panama’s health care sector has seen significant advancement in recent years. The former administration of Ricardo Martinelli oversaw a period of significant infrastructure expansion, and the country is now closer than ever to achieving universal coverage. Meanwhile, the government of Juan Carlos Varela has remained committed to improving access and increasing efficiency, while maintaining the previous government’s emphasis on expanding public infrastructure. The administration now faces the task of addressing the myriad of challenges that continue to affect the health care sector, in particular capacity and health personnel shortages, while leading the country through the transition to a prevention-focused health care model. Though the recent rise in sector infrastructure is an encouraging step to improving access, reducing waiting lists and improving health outcomes, the severe skill shortage remains an obstacle to the sector’s development, and one that will require a multi-faceted approach. This chapter features an interview with Francisco Javier Terrientes Mojica, Minister of Health.

Despite notable achievements in the past decade, including reaching universal coverage at the primary level, by international standards the quality of Panama’s education system continues to lag significantly. Panama ranked 83rd out of a total of 144 countries for the quality of its education system in the World Economic Forum’s “Global Competitiveness Report 2014-15”, down eight places from 75th in the previous year’s report (out of 148 countries) and behind regional neighbours Costa Rica (21st) and El Salvador (63rd). Curricular reform introduced in 2010 has increased pertinence and retention rates, while a strengthening of the accreditation process for universities has also brought about improvements at the tertiary level. However, a disconnect between the educational offering and labour market needs remains a concern. A rising budget and push to expand the post-secondary offer are indicative of the current government’s commitment to improve education outcomes, a move which has become key to ensuring sustainable economic growth.