Panama and Inter-American Development Bank Drive Digital Transformation of Public Services

President Claver-Carone of the Inter-American Development Bank and Minister of Economy of Panama sign $60 million loan agreement.

The Government of Panama and the Inter-American Development Bank (IDB) signed a $60 million loan operation to advance digital transformation of public service management in the country.

Panama's minister of economy, Héctor Alexander, and IDB President Mauricio Claver-Carone, signed the "Digital Panama" loan agreement, which aims to make government processes and services more efficient. The operation is also meant to enhance cybersecurity, properly protect and manage data, and cut costs in interactions with government agencies. It will prioritize the most vulnerable populations, especially indigenous women.

At the signing ceremony, President Claver-Carone stressed that "the IDB is fully committed to the digital transformation of Panama. This transformation into a digital economy will further the country's sustainable development, enhance its competitiveness, and help it create more and better jobs."

The ceremony was held after President Claver-Carone met with President Laurentino Cortizo of Panama and reiterated the IDB´s interest in continuing to support Panama's economic growth, fiscal management, and inclusion in regional value chains.

"Digital Panama" is a continuation of the work begun in 2016 through the "Panama Online" loan operation. Through this prior operation, the IDB is helping the country create an online version of around 400 government processes for citizens and companies, including COVID-19 vaccine registration, and implement digital financial management tools at 68 municipalities to more efficiently and transparently manage public resources.

Mr. Alexander emphasized that "This program has a major impact on the country's economic development because it digitalizes processes within and between agencies. This streamlines government business for the private sector, citizens, and the state itself, with cost savings for all parties. By digitalizing, the government can also receive revenue more quickly and easily by streamlining tax collection, increasing transparency, and spurring on economic recovery. This process also enhances the quality of public spending."

Through the "Digital Panama" loan, the Inter-American Development Bank will finance the design, construction, and launch of the Digital Government Innovation Hub building, which will house technical units linked to the digital transformation process and cybersecurity.

Panama will also use the resources to improve the Single Citizens Portal by adding more government agencies to it. The loan will also support the design and launch of the National Data Strategy, as well as training on information and communications technology and cybersecurity in public administration.

In the area of training digital talent, the IDB financing will support a pilot version of an information and communications technology (ICT) career path at three government agencies. The program will emphasize gender and diversity, as well as using information and communications technology skills to economically empower indigenous women, with the potential to adapt the program to other groups as well. The project will also finance mobile structures for gender-sensitive training on competencies, digital transactions, and ICT to reach areas with more vulnerable populations.

Citizens and companies, in general, will be the program's direct beneficiaries. Its implementation will reduce transaction costs with the government, with a safer digital environment and adequate management and protection of their data. The most vulnerable population, particularly indigenous women, will have better access to and skills for processing transactions and using digital services.

This operation is in line with the bank's Vision 2025, which aims to achieve recovery and inclusive growth in Latin America and the Caribbean, in areas including digital economy, gender and inclusion, and climate change, as well as with the IDB Group Country Strategy with Panama for 2021-2024, where the digital transformation of public administration is a priority area.

About the Inter-American Development Bank
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public and private sector clients throughout the region.

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