The Constitution provides citizens with the right to change their government peacefully, and citizens exercised this right in practice through periodic, free, and fair elections held on the basis of universal suffrage. The Constitution provides for direct popular election by secret ballot of the President, the vice president, legislators, and local representatives every 5 years. Naturalized citizens may not hold certain categories of elective office. The independent Electoral Tribunal arranges and supervises elections. The Government respected the rights of its citizens to join any political party, and vote for candidates of their choice. However, the law requires new political parties to meet strict membership and organizational standards to gain official recognition and participate in national campaigns.

In May, Democratic Revolutionary Party (PRD) presidential candidate Martin Torrijos defeated Solidarity Party (PS) candidate Guillermo Endara, Arnulfista candidate (PA) Jose Miguel Aleman, and Democratic Change (CD) candidate Ricardo Martinelli, winning 47 percent of the popular vote. Domestic and international observers characterized the elections as generally free and fair; however, at least one local contest was marred by reports of vote buying. The PRD gained a majority of 42 seats in the National Assembly.

In November, several constitutional reforms became effective. The reforms required political parties to be structured democratically, permitted independents to campaign for the National Assembly, increased the autonomy of the Electoral Tribunal, and limited the immunity of representatives in the National Assembly by permitting the Supreme Court to prosecute criminal cases against representatives. Beginning in 2009, the reforms would reduce the number of vice presidents from 2 to 1 and cap the number of National Assembly members at 71.

Public perceptions of executive and legislative corruption were consistently high. In the lead-up to the May election, polls identified corruption as one of the greatest national problems. Extensive legislative immunity, granted by the Constitution, continued to hinder judicial follow-up of accusations of corruption against National Assembly members. The Torrijos administration established a National Anti-Corruption Commission under the presidency, audited accounts on an agency-by-agency level, rescinded improperly granted diplomatic passports, dismissed employees for malfeasance, and brought charges against officials for petty corruption.

Immediately upon taking office on September 1, the Torrijos Administration revoked a Moscoso Administration implementing decree that impeded enforcement of the Transparency Law intended to provide public access to information from and about public entities. In May, the Supreme Court had invalidated on constitutional grounds several of the decree's most restrictive articles. In November, the Torrijos administration decreed that cabinet meeting minutes are exempt from public release under the Transparency Law. In late October, the Solicitor General interpreted the Constitution narrowly in advising the Ministry of the Presidency on the disclosure of statements of officials' assets by notaries, indicating that notaries are only authorized to disclose the statements to the Comptroller General, the Ministry of Economy and Finance, and authorities with jurisdiction.

Women held 11 of 78 National Assembly seats. Two women held positions in the 13-member Cabinet under the Torrijos Administration, 2 female judges were on the Supreme Court, and an Afro-Panamanian woman was the Solicitor General. There was 1 Afro-Panamanian in the Cabinet. There were dedicated seats for two Kuna Yala comarca and three Ngobe-Bugle comarca legislators in the National Assembly. In addition to the five dedicated seats, Bocas del Toro elected one Ngobe legislator to the National Assembly. Neither the Madugandi nor the Embera-Wounaan reserve had its own dedicated legislators.

A number of domestic and international human rights organizations, including both religious and secular groups, operated without government restrictions, investigating and publishing their findings on human rights cases. Government officials were generally cooperative and responsive to their views.

In November, constitutional reforms went into effect requiring an Ombudsman's Office under the direction of an Ombudsman named by the legislature to a five-year term. Prior to the reforms, the Ombudsman and Ombudsman's office were only authorized by statute. During the year, the Ombudsman's office received complaints from citizens regarding abuses or violations committed by public servants or government institutions, collected information, observed elections, confronted accused public institutions or employees, provided human rights training, and conducted studies to promote international human rights standards. Although the Ombudsman had no coercive authority, he could confront public institutions and employees with their misdeeds. In 2001, the legislature elected attorney Juan Antonio Tejada Espino as Ombudsman for a 5-year term.

As of mid-September, the Ombudsman's office received 652 complaints against the Government. Of this number, 565 were against public institutions (58 of them against the PNP), and 87 were against businesses operating under a government concession. The Ombudsman improved its comprehensive web site and extended office hours for receiving complaints.

As of mid-September, the Office of Truth Commission Continuation solicited the opening or reopening of 16 cases of killings and continued to pursue 17 other cases of killings during the dictatorship (see Section 1.a.). As of mid-September, the Office of Truth Commission Continuation solicited the opening or reopening of 18 cases of disappearances and continued to pursue 7 other cases of disappearances during the dictatorship (see Section 1.b.). In December, President Torrijos announced that he was not extending funding to the Office of Truth Commission Continuation when it expired at year's end, and that cases of killings and disappearances during the 1968-89 dictatorship would continue to be handled through the judicial process.

The Constitution prohibits discrimination on the basis of race, birth status, social class, sex, disability, or political views. A 2002 law specifically prohibits discrimination and any kind of "right of admission" to any public or commercial establishment and sets fines from $250 to $1,000. However, societal prejudices persisted. Cases of discrimination were difficult to prove, and legal remedies for victims were complicated, time-consuming, and costly. Many commercial establishments continued openly to operate a "right of admission" policy, which discriminated against dark-skinned persons.

Domestic violence against women continued to be a serious problem. The Family Code criminalizes rape, spousal rape, and family violence (including psychological, physical, or sexual abuse). Convictions for domestic violence were rare because victims generally chose spousal therapy over prosecution. Abusers were commonly convicted of unintentional killing in cases of spousal death. By October, the PTJ registered 1,167 cases of domestic violence. The PTJ also received 469 cases of rape and 88 cases of attempted rape by October. At year's end, the PNP's DRP reported that its office investigated 38 cases of domestic violence and 5 cases of rape committed by officers during the year. The media reported at least one case of spousal killing by a PNP officer (see Section 1.a.).

In Panama City, the Support Center for Abused Women (CAMM) operated one temporary shelter for abused women and children funded by the Government and the European Union, but the shelter did not serve women abused outside of the domestic context. CAMM also provided domestic violence victims with health and legal services, counseling services for women and their domestic abusers, and a hotline.

Spouses or other family members frequently were the perpetrators. The Foundation for the Promotion of Woman (FUNDAMUJER) and the Center of Colon Women (MUCEC), among other women's advocacy groups and government agencies, operated programs to assist victims of abuse and to educate women on their legal rights.

Trafficking in women was a problem (see Section 5, Trafficking).

The law prohibits sexual harassment in cases of established employer/employee and teacher/student relations. The extent of the problem was difficult to determine because convictions for sexual harassment were rare and pre-employment sexual harassment was not actionable.

The law prohibits discrimination on the basis of sex. The Family Code recognizes joint or common property in marriages. However, insufficient resources hampered government efforts to enforce the code's provisions effectively. According to a Supreme Court justice, competent caseload management would require 80 family judges; however, only 16 of the legally mandated 20 family judges served during the year due to lack of resources.

The Constitution mandates equal pay for men and women in equivalent jobs, but wages paid to women were, on average, 30 to 35 percent lower and increased at a slower rate, according to a 2002 study. There were credible reports of irregular hiring practices based upon age and "appearance." Female politicians noted discrimination within their own parties, where they were generally given the least desirable ballot positions during party primaries.

Through the National Directorate of Women, the Ministry of Women, Youth, Family, and Childhood promoted equality of women in the workplace and equal pay for equal work, attempted to reduce sexual harassment, and advocated legal reforms. A number of private women's rights groups concentrated on disseminating information about women's rights, countering domestic abuse, enhancing employment and other skills, and pressing for legal reforms.

Prostitution was legal and regulated. Studies of prostitutes over the past decade, including a 2002 International Organization of Labor (ILO report), point to domestic violence, initiation of sexual relations before age 18, poverty, broken homes, and teenage maternity as the major risk factors for prostitution. In August, the Comunidad Apostolica Hosanna began a program to remove women from prostitution and provide them with social services. At year's end, the program had removed two women from prostitution and was working with eight other women.