Economic Policy Development Support
As a follow-up to the Immediate Recovery Project in Panama (USAID 1990-1991), DevTech provided long-term support to the Ministry of Planning and Economic Policy (MIPPE). This assistance was divided into two components.
The first component involved provision of a long-term, resident senior macroeconomic advisor to MIPPE for policy reform and implementation. This macroeconomist advised on liberalization policies, assisted the government with restoring access to assistance from international financial institutions, and reviewed macroeconomic projections and general economic and business conditions in light of targets of the economic program.
The second component of the project called for short-term technical assistance in specific areas to facilitate the implementation of the economic program. Illustrative short-term technical assistance tasks included:
- Financial equilibrium in social security pension plans;
- Budget policy and administration;
- Reduction and eventual elimination of barriers to free trade;
- Elimination of price controls;
- Cost analysis of health care services delivered by the government; and
- Public-sector investment planning.
This project also continued the public education program to raise the level of economic understanding in support of policy reform initiated during the Immediate Recovery Project.