Poverty is a phenomenon influenced by various factors, such as lack of resources to meet basic

needs for survival or deprivation of social participation for reasons of gender; poverty is the privation of

individual human development.

Poverty in Panama represents the biggest social problem that our country faces: 1 in50 4

Panamians are poor, and 1 in 10 are destitute or extremely poor. Rural areas have the highest amount
of

overall poverty (42.7%), including indigenous areas (80.8%). Panama is the sixth most unequal country;

therefore, inequality represents the main cause of poverty throughout Panama.

In Panama, and all over the world100 there is a need to improve the access of the poor to

productive resources, basics services and social protection. Roads and electricity improve connectivity to

markets, strengthen urban-rural linkages, increase farm and non-farm productivity, and create jobs. The

rural development and the agricultural productivity growth are critical to reducing poverty.150