PANAMA SHELTER SECTOR ASSESSMENT

Office of Housing. The report is divided into two main parts: (1) the Panama shelter sector assessment itself together with the recommendations which stem from the analysis; and (2) a description and analysis of the components of the shelter sector. In recent years, Panama has been in its worst recession since 1947-51. The causes can be found in exogenous world economic shocks, long-term structural changes within the economy which dictate a need to exploit new sources of growth, and the short-term effects of new social policies. A major housing effort could provide an immediate growth pole around which to mount a recovery program. The Ministry of Housing (MIVI) and the private sector have the experience, the management capabilities, and the supply of labor and materials inputs which would be necessary. A.I.D."s below-median-income target population for its housing assistance programs has a large component of the "poorest of the poor," and uneducated and unemployed with worse health and nutrition standards than the country as a whole. They constitute the proper focus of MIVI and A.I.D. efforts. Private investors have stepped back from housing investments in part because of rent control laws which make housing investments financially unattractive. The shelter delivery system is basically sound and the organization of the financial system for housing is good. The operation of the housing finance system, however, could do more. MIVI has become the most dynamic factor in the housing sector, quickly becoming the major supplier of housing. Attention to some policies and increased coordination with other agencies in the housing field could increase its effectivness still further.