Mireya Moscoso, widow of former long-time president Arias Madrid, controls a political alliance with a majority in the General Assembly, making her projected reform programme a viable possibility in political terms. She has promised to better the condition of the one-third of Panamanians who live in poverty.

The previous government had become unpopular domestically, but had received high marks from the IMF and other international bodies for its largely successful programme to rein in Government spending, reduce debt and liberalise the economy. It remains to be seen whether the new regime will continue this progress or will revert to populism.