The Poverty Assessment for Panama,Toward Effective Poverty Reduction, focuses on: analyzingpoverty, inequality, human development, GDP growth and othersocial indicators in Panama between 1997 and 2003; providinganalytical and advisory support to the Government of Panamaaimed at implementing a new strategic vision for povertyreduction; and supporting the country in capacity buildingin poverty diagnostics and policy evaluation. The reportconcludes that there is a need to develop a clear socialprotection strategy with specific targets which should drivethe process of resource allocation in the sector. Specificpolicy recommendations are made in the areas of nutritionprograms, education, housing, water and energy subsidies,monitoring mechanisms and institutional arrangements.