The Public Administration of the Panamanian State presents two management models in its organization, enshrined in its Political Constitution. First, a traditional public administration, which covers the organization of the vast majority of the government; and on the other the management model of the Panama Canal Authority. While the traditional Public Administration is considered inefficient, presenting characteristics of an organization influenced by partisan policies, political clientelism, excessive discretion of the government and a poorly trained human resource with no job stability, it presents deficiencies that affect the development of country and the weakening of democratic institutions; the administration of the Panama Canal, in its two decades of existence, represents a model of efficiency and effectiveness to replicate to the rest of the Panamanian Public Administration. This study that analyzes through description and interviews compares the functioning of both administrations and the institutional and regulatory framework in which they are carried out. The differences in the administrative careers and the labor regime, the lack of coherent public policies, the differences in the execution of the budget without measurement of results, the evaluation of the programs and projects, and the evaluation of the public servants, presents the great differences between both models. The Panamanian State has within its reach the possibilities of giving a comprehensive reform to the traditional public administration, based on a complete and successful management model such as that of the Panama Canal Authority.