The 1998 Referendum in Panama

The Panamanian people have rejected the neoliberal policies of President Ernesto Perez Balladares and the proposed constitutional reforms that would have permitted him to stand immediately on the completion of his term of office for reelection to an additional five-year term. In this article, I discuss the results of the August 1998 referendum and some of its antecedents and then go on to examine the impact of the past four years of the current government's neoliberal program and the importance of the Panama Canal at this juncture. Finally, I consider the implications of the referendum for the general elections of May 2, 1999, and analyze the alternatives available to the country's various social forces, especially the popular sectors.