All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars.

All amounts in U.S. dollars.

Document: Bureau for International Narcotics and Law Enforcement Affairs Program and Budget Guide, Fiscal Year 2010

Program: International Narcotics Control and Law Enforcement

Program Objectives and Performance Indicators Enhance Panama's interdiction capability to disrupt the regional flow of illicit drugs, chemicals, weapons, and people by improving its law enforcement infrastructure and control of its borders and international ports of entry and exit.

• Assistance to increase operational readiness of the Panamanian National Police (PNP), the K-9 unit, airport groups, and special operations units within the Directorate of Information and Intelligence will result in improved capacity to identify major trafficking organizations, exploit their vulnerabilities and seize their assets.
• Strengthening GOP coastal/ interdiction capabilities with better inter-agency communications and augmenting anti-terrorism capability for specialized units will result in greater territorial integrity, especially with regard to incursions by the Fuerzas Armadas Revolucionarieas de Colombia (FARC) and other criminal organizations.

Document: Airmen aboard hospital ship providing humanitarian help

Program: Humanitarian and Civic Assistance

For Airmen traveling aboard the hospital ship USNS Comfort, 10 days spent in Colon, Panama, meant helping bring smiles to thousands of grateful Panamanians through the U.S. Southern Command´s mission Continuing Promise 2009.

The ship docked in Colon, May 24 through June 3, where teams of servicemembers, along with civilians from charity groups and academic missions, went to work assisting the Panamanians.

During the medical portion of the mission, personnel treated patients daily at three temporary medical sites in Colon. These sites offered minor medical care such as teeth cleanings, eye screenings and general medical examinations. They saw on average more than a thousand patients a day.

There also were several engineering sites with missions ranging from repairing a school playground to renovating a local medical clinic. Veterinarians and preventive medicine physicians provided roving services ensuring that the needs of the animal population were not forgotten.

Document: FY 2010 Congressional Budget Justification for Foreign Operations

Panama has experienced a period of strong economic growth and remarkable progress in strengthening its democratic institutions, marked by a firm commitment to free market economics. However, Panama’s stability remains under stress as a result of continued high poverty rates, very high inflation in food prices,, vast income disparities, and increasing crime related to the drug trade and perpetrated by local gangs and international drug traffickers, including the Revolutionary Armed Forces of Colombia (FARC). The United States will work in partnership with the Government of Panama (GOP) to consolidate Panama’s gains in democracy and economic growth, while fostering the institutionalization of legal and regulatory structures which will increase Panama’s capacity to be a guardian of the Panama Canal and a reliable ally.

Peace and Security: U.S. programs will continue to develop the capacity and professionalism of the Panamanian Public Forces' (PPF), including the new National Aero-Naval Service, the new National Frontier Service, the National Police, and the Institutional Protection Service. U.S. support will also help enhance respect for the rule of law in general, and the upcoming transition to an adversarial justice system, in addition to improving the management of resources within all the PPF. While Panama has excellent law enforcement and security cooperation relationships with the United States, institutional weaknesses and a lack of resources pose real limits on Panama’s capacity to deal with the increasing threat posed by international crime, including the FARC and other drug trafficking organizations, in addition to a growing local gang problem.

U.S. assistance programs seek to augment Panama’s counter-terrorism efforts, security programs, and maritime interdiction capacity. This will be achieved by improving the PPF’s equipment to allow for more effective response to threats; enhancing critical infrastructure and training facilities; strengthening the GOP's security capabilities on the border with Colombia; increasing the PPF's mobility; and providing communication equipment and logistical support packages for better command and control.

U.S. assistance programs will help strengthen the capacity of Panamanian governmental institutions to work with civil society and international partners to combat narcotics trafficking, transnational organized crime and gang-based violence, and terrorism. Assistance will support the equipment, operational, and training needs of the PPF, in particular in the areas of mobility, communications, and infrastructure with a focus on enhancing counter-narcotics and counter-terrorist capabilities. Given its strategic geographic location, particular emphasis will be placed on enhancing the control of Panama's borders with Colombia and Costa Rica, as well as the Pacific and Atlantic coastal zones and the country's ports and airports. U.S. assistance will also help strengthen anti-money laundering programs, with a particular emphasis on combating terrorist financing, and help modernize the PPF, with a focus on introducing community policing practices and problem solving capabilities.

Increases in FARC activity and transnational crime in Panama have led the Government to reorganize its air and maritime services and establish a new Border Force. These missions are in addition to the Government’s long-tem commitment to secure the Panama Canal. Since the restructuring, Panama’s Public Forces have been more aggressive in attempts to deny the FARC and other transnational criminals safe haven in Panama. To support this restructuring and increase in operational tempo, the Government of Panama is requesting additional training and equipment for the Public Forces tasked with extending state authority and security to remote parts of Panama. The FY 2010 funding will provide training and equipment to units responsible for supporting maritime interdiction, border operations, and canal security.

Governing Justly and Democratically: U.S. assistance will support democracy initiatives to foster continued GOP progress towards strong, open, and effective governance, which will contribute to and recognize Panama’s important role in regional security. In partnership with the GOP, the United States will support improvements in government transparency and accountability, improved governance, including a strengthened civil service law, judicial reforms, specifically related to implementation of new criminal and criminal procedures codes, as well as strengthening civil society’s role as a government watchdog. U.S. assistance activities will also complement those activities expected to be carried out under the Merida Initiative, including activities targeted toward communities that are vulnerable to crime.

Investing in People: U.S. assistance will help prevent and control the spread of HIV/AIDS. USAID's regional program, managed from Guatemala, will provide support to Panama to increase HIV/AIDS prevention practices and services directed mainly at those most at-risk, improve the HIV/AIDS policy environment, and improve the delivery of comprehensive care and treatment for people living with HIV/AIDS.

Economic Growth: In coordination with a large number of public and private stakeholders at the national and local levels, the United States will facilitate comprehensive social, economic, labor, and environmental reforms. These reforms will boost the country’s competitiveness by systematically strengthening the linkages between micro, small, medium, and large enterprises and increasing their participation in the international market. Improvements will be achieved by strengthening the capacity of private sector organizations and individual businesses to produce goods and services that meet international market requirements, including international labor and environmental standards.

The United States also plans to consolidate recent interventions in the Panama Canal Watershed, covering new sub-watersheds of significant importance for biodiversity conservation, and implementing strategic actions in key areas for biodiversity protection as a means of safeguarding this commercially and strategically important waterway. Activities will focus on: development of land use plans; sustainable and 643 environmentally friendly income and job generation; strengthening watershed management councils; improvement of local skills to participate in the growing tourism industry; policy reform; and promotion of best management practices.

The United States will also expand sustainable forest management activities initiated in the Darien region. The United States will partner with indigenous communities to help them better manage their forests and other natural resources. This activity will specifically target unsustainable resource use in indigenous reserves, and will address issues ranging from unmanaged timber harvesting, forest clearing, illegal logging, inefficient wood harvesting and processing methods, and unsustainable agricultural practices. The objective is to raise communities’ awareness of the value of their forests and to augment their capacity to sustainably manage their resources, while increasing incomes derived from forest-based activities.

Panama’s recent high economic growth has been characterized by an equally high degree of economic inequality. The United States will help the GOP achieve sustained and broad-based economic growth by increasing the competitiveness of micro, small, and medium-sized enterprises (MSMEs) in target sectors. U.S. programs will help improve the business value chain, trade, and investment environment; strengthen service providers and business capacity; expand access to appropriate technologies; and encourage reform of policies that hinder business growth and job creation. The GOP continues to take major steps to foster broad-based growth by establishing public-private sector dialogue. In FY 2010, funds will support publicprivate sector dialogue to promote at least one policy reform to improve implementation and compliance with international trade and investment agreements such as labor reform or sanitary standards. FY 2010 funds will also promote up to an additional five policy reforms during FY 2011.The United States will also expand sustainable forest management activities initiated in the Darien region. The United States will partner with indigenous communities to help them better manage their forests and other natural resources. This activity will specifically target unsustainable resource use in indigenous reserves, and will address issues ranging from unmanaged timber harvesting, forest clearing, illegal logging, inefficient wood harvesting and processing methods, and unsustainable agricultural practices. The objective is to raise communities’ awareness of the value of their forests and to augment their capacity to sustainably manage their resources, while increasing incomes derived from forest-based activities.

Panama’s recent high economic growth has been characterized by an equally high degree of economic inequality. The United States will help the GOP achieve sustained and broad-based economic growth by increasing the competitiveness of micro, small, and medium-sized enterprises (MSMEs) in target sectors. U.S. programs will help improve the business value chain, trade, and investment environment; strengthen service providers and business capacity; expand access to appropriate technologies; and encourage reform of policies that hinder business growth and job creation. The GOP continues to take major steps to foster broad-based growth by establishing public-private sector dialogue. In FY 2010, funds will support publicprivate sector dialogue to promote at least one policy reform to improve implementation and compliance with international trade and investment agreements such as labor reform or sanitary standards. FY 2010 funds will also promote up to an additional five policy reforms during FY 2011.

Document: International Narcotics Control Strategy Report

The USG encourages Panama to devote sufficient resources to enable its forces to patrol land borders along Colombia and Costa Rica, its coastline, and the adjacent sea-lanes, and to increase the number of arrests and prosecutions of major violators, especially in the areas of corruption and money laundering. The USG will continue to offer the GOP expertise and resources to strengthen Panama's ability to safeguard its citizens, confront drug traffickers, and ensure that law enforcement efforts are anchored in democracy. The USG will also continue to support law enforcement modernization through improved equipment, maintenance, strategic planning, decentralization of decision making, and community-oriented policing philosophies.

For its part, the USG will provide significant support in the coming year under the Merida Initiative—a partnership between the governments of the United States, Mexico, Central America, Haiti and the Dominican Republic to confront the violent national and transnational gangs and organized criminal and narcotics trafficking organizations that plague the entire region, the activities of which spill over into the United States. The Merida Initiative will fund a variety of programs that will strengthen the institutional capabilities of participating governments by supporting efforts to investigate, sanction and prevent corruption within law enforcement agencies; facilitating the transfer of critical law enforcement investigative information within and between regional governments; and funding equipment purchases, training, community policing and economic and social development programs. Bilateral agreements with the participating governments were in the process of being negotiated and signed at the time this report was prepared.

Document: International Narcotics Control Strategy Report

Policy Initiatives. USG-supported programs focus on improving Panama's ability to intercept, investigate, and prosecute illegal drug trafficking and other transnational crimes; strengthening Panama's judicial system; improving Panama's border security; and ensuring strict enforcement of existing laws. The Narcotics Affairs Section (NAS), Department of Homeland Security (DHS), Office of Defense Cooperation (ODC) and USCG provided resources for modernization and upkeep of SMN and PNP vessels and bases, and assisted the newly-created SENAN with training personnel and maintaining key aircraft for interdiction efforts. In 2008, the USG provided training and operational equipment and support to the multi-agency Tocumen Airport Drug Interdiction Law Enforcement Team. NAS coordinated training for the DEA and ICE vetted units, as well as the quick response motorcycle team ("lynx" unit) in Tactical Law Enforcement procedures, internal affairs and Anti-Corruption investigations and crowd control procedures.

NAS and CBP continue to organize operational evaluation teams of Border Patrol Agents who work in the border areas with National Police. NAS continued to develop a major law enforcement modernization project with the PNP to develop its police leadership and implement community-based policing procedures. The program focuses on many pillars including proven community policing tactics, expansion of existing crime analysis technology, and promotion of managerial change to allow greater autonomy and accountability. NAS provision of computers, office equipment, and other operational equipment will help the counternarcotics units achieve their goals.

Bilateral Cooperation. In 2008, the Torrijos Administration continued to sustain joint counternarcotics efforts with DEA and USCG, and worked to strengthen national law enforcement institutions with assistance from NAS. Maritime cooperation continued to be excellent. The U.S. Coast Guard provided training to SMN and APC personnel on waterside port security, maritime law enforcement, and port security-vulnerability assessments.

Document: Southern Partnership Station Returns to Panama

Program: Exercises

High speed vessel Swift (HSV 2) returned here yesterday for the second of two instruction evolutions in Panama during Southern Partnership Station (SPS).

Training teams from Navy Expeditionary Training Command, Naval Criminal Investigative Service and the Marine Corps Training and Advisory Group began their courses today with students from the Panamanian National Air and Maritime Service and the Panamanian National Police. The courses provide instruction in a variety of topics such as waterborne security, small boat navigation, basic coxswain, armed sentry, pier sentry, close quarters battle techniques, junior and senior enlisted leadership principles, boarding team member, port security and small boat repair.

“Overall we’ll be teaching 16 students waterborne security and coxswain techniques,” said small boat instructor Hull Technician 1st Class Jack Yates, from Chicago. “The students are going to learn high speed maneuvers and handling of boats in high pressure situations in order to facilitate high value asset protection such as security escorts or picket boat maneuvering.”

Document: Section 1209 Report to Congress on Foreign-Assitance Related Programs Carried out by the Department of Defense

Program: Humanitarian and Civic Assistance

Projects support USSOUTHCOM TSC goal to shape the environment by promoting democracy, regional prosperity, and stability.

Document: Southern Partnership Station Naval Deployment Begins

Program: Exercises

Southern Partnership Station is an annual deployment of various specialty platforms to the U.S. Southern Command area of focus in the Caribbean and Latin America. The mission’s primary goal is information sharing with navies, coast guards, and civilian services throughout the region.

Military training teams and subject matter experts embarked on Swift will provide partner nations with classroom and hands-on training in a variety of subjects.

The ship is scheduled to visit El Salvador, Panama, Nicaragua, Dominican Republic, Jamaica, Barbados and Colombia.

Members of the Navy Expeditionary Training Command will provide instruction in small boat operations, maintenance and repair, boarding techniques, armed sentry, search and rescue, combat lifesaving, leadership principles for junior and senior partner nation enlisted service members, and instructor training.

The Marine Corps Training and Advisory Group will advise partner nation servicemembers on a variety of different topics including marksmanship, martial arts, and non-lethal weapons tactics.

Naval Criminal Investigative Service Security Training and Assessment Team will provide port security instruction and advice.

Information systems technicians will help install and instruct partner nation servicemembers on the use of Integrated Automatic Identification Systems (IAIS). IAIS is a computer based vessel identification program that provides ports and other ships with real-time location and information on friendly vessels within their region.

Document: FY 2008 Supplemental Appropriations Spending Plan

Program: Foreign Military Financing

Peace and Security ($4 million)

FMF funds will be used to refurbish up to three 82-ft patrol boats and up to four 25-ft go-fast interceptor boats and provide up to three 33-ft interceptor boats and a command, control and .communications package to the Costa Rican Coast Guard. The communications package will allow not only for better communications among Costa Rican Coast-Guard entities, but would also allow facilitate combined operations with the U.S. and regional forces. This communications capability, along with refurbished and new boats will greatly enhance Costa Rica's patrol and surveillance capabilities strengthening both national and regional security. FMF funds will also be used to provide follow-on training to Panama for boat maintenance training and for upgrades and training for communications system provided as part of the Enduring Friendship program. Finally, FMF funds will be used to provide an initial command and control package to El Salvador as the first step to implement the Enduring Friendship maritime security program.

Document: FY 2008 Supplemental Appropriations Spending Plan

Program: Economic Support Fund

Governing Justly and Democratically ($20 million)

ESF funds will be used to promote economic and social development and good governance in targeted, low income areas, including rural communities vulnerable to drug trafficking, gang violence and organized crime. Support will be provided in the areas of gang prevention, community policing and establishing a community action fund targeted to poor, economically challenged and violent crime communities. Activities will reach countries in the sub-region based on existing gang violence and vulnerable youth with an emphasis on the northern tier, e.g., Guatemala, El Salvador and Honduras.

Gang prevention activities would increase security by helping communities, local governments and the private sector to better address the causes of gang recruitment, crime and violence in the region. The program would also build the capacity of communities and governments to provide safe alternatives for at-risk youth most vulnerable to gang activities and enhance law enforcement efforts to reduce crime. Community policing activities would strengthen the level of cooperation between the police and community organizations and citizens to reduce gang effectiveness and recruitment, increase successful arrests of gang members and greatly improve understanding, trust and information sharing. Patrolling, community education and joint activities will be undertaken under this program. Establishing a community action fund will provide innovative solutions to reach at-risk youth in targeted areas with vocational education, training, and job opportunities. The program will also build the capacity of communities to manage at-risk youth activities, undertake small infrastructure improvement projects that improve citizen accessibility and foster a job creation, enabling environment that accommodates youth apprenticeships and mentoring. Private sector partnerships will be sought to the extent feasible.

Investing in People ($5 million)

These funds will allow the Bureau of Educational and Cultural Affairs (ECA) to focus on the disadvantaged, minority and indigenous communities, women and other populations at risk from criminal and other anti-social forces intent on destabilization in the region. ECA/A proposes to expand to Central America successful pilot efforts that have operated in South America and form the core of the Partnership for Latin American Youth described in the ECA's FY 2009 budget request. Activities, which will take place in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, include:

Academic Programs - $4 million
• English Access Microscholarships ($1.5 million) - to support 1,000 14-18 year old students in Central America for two years of English study in after-school learning programs. These students will develop the communication skills to acquire better jobs in the local economy, additional background to help them succeed in advanced study at home and make them eligible to participate in and competitive for USG funded Youth Exchange and higher education exchanges. English competence is a universally recognized employment tool. In order to change social structures, improve economic equality and support social justice, ECA needs to provide individuals with the tools they need to develop a stake in their societies and the access to advanced education and quality information resources.

• Community College Program ($1.6 million) - to support up to 54 students in community college programs (including a pre-academic English language program). This initiative will focus on key skills identified in concert with partner governments that will lead to employment and the improvement of important sectors in the national economies, such as health care, tourism, agriculture, applied engineering and information technology competencies. The program will lead to one-year certificate programs and is designed to reintroduce those with improved skills quickly into society.

• Opportunity Grants ($250,000) - to provide scholarship awards that allow the USG to foster the development of talent among disadvantaged undergraduate students who would be at risk from destabilizing forces and offer them an alternative path. Through this program, non-elite students gain the ability to compete for scholarships from U.S. colleges and universities, giving them the opportunity for long term study and experience in the United States that they will share with their home countries upon their return. The Opportunity Grants provide awards that cover the up-front costs of testing, applications, travel and initial fees to students who are strong candidates to receive full scholarships from U.S. colleges and universities. The grants are provided through Education USA advising centers in consultation with our Embassies.

• Summer/Winter Institute ($300,000) - to fund one institute with up to 22 participants for six weeks, focusing on American society and leadership development. This program may be conducted in Spanish at a U.S. college or university so that it is readily accessible to disadvantaged populations which might not have significant fluency and facility in the use of English. The program has several objectives: to expose student leaders many of whom are resistant to considering study in the U.S. about the openness and value of U.S. higher education.

• Short-Term English Study Program ($350,000) - to support two cohorts of 20 undergraduate students to come to the U.S. for up eight weeks of intensive English. The most significant hurdle facing less advantaged but talented students who wish to study in the U.S. is lack of proficiency in the use of English. This program will be a first for Latin America but it has been successfully utilized in Indonesia, where concern about ability to communicate in English is the major deterrent to competing for U.S. college and university admission. This program will clearly signal to talented non-elite students, who have not had the benefit of private school or elite metropolitan public school education and foreign language learning that the people of the U.S. want to engage with them and work with them through education to enhance both our partnership and our democratic societies.

Professional and Cultural Exchanges -$1 million
The Youth Programs Division will support a Youth Leadership Program model for $1 million that will bring secondary school-aged youth (ages 16-18) from the seven countries in Central America to the United States for three-week exchanges focused on entrepreneurship and business skills, community engagement, and leadership. The participants will be recruited from underserved or disadvantaged populations of youth in these countries, including public school students, high school dropouts, and those at risk for involvement with drugs and/or gang activities.

During 2009, five exchange projects in the United States will be offered for a total of approximately 110 youth. One project for Belize will be conducted in English. Four other projects will be conducted in Spanish, with interpreters accompanying the students, which will allow a broader range of students to participate. The Spanish projects will be single-country or regional projects, i.e., a group of students may be drawn from multiple participating countries in order to promote regional cooperation. The exchanges will be organized at various points throughout 2009, including during the U.S. school year.

The organizations that receive grants will recruit and select the exchange participants, provide a U.S.-based exchange experience, and lead the alumni in implementing projects in their home communities, enabling them to apply their newfound skills. Where feasible, youth alumni may be matched with adult alumni of U.S. exchanges in a mentoring or advising relationship. A portion of the funding will be used to support in-country activities with all participants, regardless of whether they traveled to the United States on the same exchange, in order to promote integration among youth in each country.

The projects will help the youth nurture their dreams of making a good living and supporting a family as they grow into adulthood in their communities. The exchange activities will focus on school-to-work transition, allowing the participants to develop practical business and job skills, such as communication, technology, marketing, and financial management skills. They will also explore the effective and sustainable use of resources, learn about civic engagement, life skills, and ethics, and identify the appropriate conditions for entrepreneurial projects. Activities will include workshops, school visits, community service/volunteer work, and site visits with community organizations and local businesses. Participants will live with American host families for a portion of the exchange period and have opportunities to interact with their American peers, including students of Spanish.