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Panama



 
 
Panama, officially the Republic of Panama (; ), is the southernmost country of Central America
Central America

Central America is a central geography region of the Americas. It is the southernmost, isthmus portion of the North American continent, which connects with South America on the southeast....
 and, in turn, North America
North America

North America is the northern continent of the Americas, situated in the Earth's northern hemisphere and almost totally in the western hemisphere....
. Situated on an isthmus
Isthmus

File:The Spit Bruny Island.jpg File:IsthmusOfPanama.pngAn isthmus is a narrow strip of land connecting two larger land areas. Of note, the Isthmus of Panama connects the continents of North America and South America , and the Isthmus of Suez in Egypt connects Africa and Asia ....
 connecting North and South America
South America

South America is the southern continent of the Americas, situated entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere....
, some categorize it as a transcontinental nation. It is bordered by Costa Rica
Costa Rica

Costa Rica, officially the Republic of Costa Rica is a country in Central America, bordered by Nicaragua to the north, Panama to the east and south, the Pacific Ocean to the west and south and the Caribbean Sea to the east....
 to the northwest, Colombia
Colombia

Colombia , officially the Republic of Colombia , is a country in north-western South America. Colombia is bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the north west by Panama; and to the west by the Pacific Ocean....
 to the southeast, the Caribbean Sea
Caribbean Sea

The Caribbean Sea is a sea of the Atlantic Ocean situated in the mid-latitudes of the Western Hemisphere, bounded to the south and west by the Americas, with the North Atlantic Ocean proper to the northeast and the Gulf of Mexico to the northwest....
 to the north and the Pacific Ocean
Pacific Ocean

The Pacific Ocean is the largest of the Earth's oceanic divisions. Its name is derived from the Latin name Mare Pacificum, "peaceful sea", bestowed upon it by the Portugal explorer Ferdinand Magellan....
 to the south. Its size is 75,000 km² with an estimated population of 3,300,000. Its capital is Panama City
Panama City

Panama City is the Capital and largest city of the Panama. It has a population of 708,738, with a total metro population of 1,063,000, and it is located at the Pacific entrance of the Panama Canal, at ....
.

Panama is home to an international business center.






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Timeline

1504   Christopher Columbus returns to Spain from his fourth voyage where he and his younger son, Ferdinand, explored the coast of Central America from Belize to Panama.

1519   Panama founded.

1670   Henry Morgan captures Panama

1698   Darien Scheme - First Scottish settlers leave for an ill-fated colony in Panama

1821   The Republic of Gran Colombia (a federation covering much of presentday Venezuela, Colombia, Panama, and Ecuador) was established, with Simón Bolívar as the founding President and Francisco de Paula Santander as vice president.

1821   Panama declares independence from Spain. (See History of Panama).

1903   With the encouragement of the United States, Panama proclaims itself independent from Colombia.

1903   USA recognizes independence of Panama

1903   The Hay-Bunau-Varilla Treaty is signed by the United States and Panama, giving the Americans exclusive rights over the Panama Canal Zone.

1906   US President Theodore Roosevelt leaves for a trip to Panama to inspect the construction progress of the Panama Canal (this was the first time a sitting President of the United States made an official trip outside of the United States).







Encyclopedia


Panama, officially the Republic of Panama (; ), is the southernmost country of Central America
Central America

Central America is a central geography region of the Americas. It is the southernmost, isthmus portion of the North American continent, which connects with South America on the southeast....
 and, in turn, North America
North America

North America is the northern continent of the Americas, situated in the Earth's northern hemisphere and almost totally in the western hemisphere....
. Situated on an isthmus
Isthmus

File:The Spit Bruny Island.jpg File:IsthmusOfPanama.pngAn isthmus is a narrow strip of land connecting two larger land areas. Of note, the Isthmus of Panama connects the continents of North America and South America , and the Isthmus of Suez in Egypt connects Africa and Asia ....
 connecting North and South America
South America

South America is the southern continent of the Americas, situated entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere....
, some categorize it as a transcontinental nation. It is bordered by Costa Rica
Costa Rica

Costa Rica, officially the Republic of Costa Rica is a country in Central America, bordered by Nicaragua to the north, Panama to the east and south, the Pacific Ocean to the west and south and the Caribbean Sea to the east....
 to the northwest, Colombia
Colombia

Colombia , officially the Republic of Colombia , is a country in north-western South America. Colombia is bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the north west by Panama; and to the west by the Pacific Ocean....
 to the southeast, the Caribbean Sea
Caribbean Sea

The Caribbean Sea is a sea of the Atlantic Ocean situated in the mid-latitudes of the Western Hemisphere, bounded to the south and west by the Americas, with the North Atlantic Ocean proper to the northeast and the Gulf of Mexico to the northwest....
 to the north and the Pacific Ocean
Pacific Ocean

The Pacific Ocean is the largest of the Earth's oceanic divisions. Its name is derived from the Latin name Mare Pacificum, "peaceful sea", bestowed upon it by the Portugal explorer Ferdinand Magellan....
 to the south. Its size is 75,000 km² with an estimated population of 3,300,000. Its capital is Panama City
Panama City

Panama City is the Capital and largest city of the Panama. It has a population of 708,738, with a total metro population of 1,063,000, and it is located at the Pacific entrance of the Panama Canal, at ....
.

Panama is home to an international business center. Although Panama is only the fourth largest economy in Central America, behind those of Guatemala
Guatemala

Guatemala is a country in Central America bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize and the Caribbean to the northeast, and Honduras and El Salvador to the southeast....
, Costa Rica
Costa Rica

Costa Rica, officially the Republic of Costa Rica is a country in Central America, bordered by Nicaragua to the north, Panama to the east and south, the Pacific Ocean to the west and south and the Caribbean Sea to the east....
 and El Salvador
El Salvador

El Salvador is the smallest country in the Americas and Central America by size, and the most densely populated nation in Central America. It borders on the Pacific Ocean between Guatemala and Honduras....
, it is the fastest growing economy and the largest per capita consumer in Central America.

History


Pre-Columbian history


Panama enjoys a rich Pre-Columbian
Pre-Columbian

The pre-Columbian era incorporates all archaeology of the Americas in the history of the Americas before the appearance of significant European influences on the Americas continents....
 heritage of native populations
Indigenous peoples of the Americas

The indigenous peoples of the Americas are the pre-Columbian inhabitants of the Americas, their descendants, and many ethnic groups who identify with those peoples....
 whose presence stretched back over 11,000 years. The earliest traces of these peoples include fluted projectile points. Central Panama was home to some of the first pottery-making villages in the Americas, such as the Monagrillo culture dating to about 2500-1700 BC. These evolved into significant populations that are best known through the spectacular burials of the Conte site (dating to c. AD 500-900) and the beautiful polychrome pottery of the Coclé style. The monumental monolithic sculptures at the Barriles (Chiriqui) site were another important clue of the ancient isthmian cultures. Prior to the arrival of Europeans, Panama was widely settled by Chibchan, Chocoan, and Cueva peoples, among whom the largest group were the Cueva (whose specific language affiliation is poorly documented). There is no accurate knowledge of size of the indigenous population of the isthmus at the time of the European conquest. Estimates range as high as two million people, but more recent studies place that number closer to 200,000. Archeological finds as well as testimonials by early European explorers describe diverse native isthmian groups exhibiting cultural variety and suggesting people already conditioned by regular regional routes of commerce.

Spanish conquest


In 1501 Rodrigo de Bastidas was the first European to explore the Isthmus of Panama
Isthmus of Panama

The Isthmus of Panama, also historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North America and South America....
 sailing along the western coast of Darien. A year later Christopher Columbus
Christopher Columbus

Christopher Columbus was a Republic of Genoa navigator, colonialist and explorer whose voyages across the Atlantic Ocean?funded by Queen Isabella of Spain?led to general European awareness of the America in the Western Hemisphere....
, sailing south and eastward from Central America, explored Bocas del Toro
Bocas del Toro

Bocas del Toro is the capital of the Panamanian province of the Bocas del Toro Province. It is a small city and a world-renowned tourist resort located on the island of Isla Colon in the Bocas del Toro Archipelago in the Caribbean Sea off the northwest coast of Panama....
, Veragua, the Chagres River
Chagres River

The Chagres River is a river in central Panama. The central part of the river is dammed by the Gatun Dam and forms Gatun Lake, an artificial lake that constitutes part of the Panama Canal....
, and Porto Belo, which he christened "Beautiful Port". Spanish expeditions converged upon Tierra Firma
Tierra Firma

Tierra Firma served in Spain colonial times as the name of the Isthmus of Panama, which was a province of Viceroyalty of New Granada.In 1509, authority was granted to Alonso de Ojeda and Diego de Nicuesa, to colonize the territories between the west side of the Gulf of Uraba and Guajira Peninsula, and Uraba westward to Cabo Gracias a D...
 (also Tierra Firme, Spanish from the Latin terra firma, "dry land" or "mainland"), which served in Spanish colonial times as the name for the Isthmus of Panama.

In 1509, authority was granted to Alonso de Ojeda
Alonso de Ojeda

Alonso de Ojeda was a Spanish people explorer born of noble parentage in Cuenca. His name is sometimes spelled Alonzo and Oxeda.He came from an impoverished noble family, but had the good fortune to start his career in the household of the Duke of Medinaceli....
 and Diego de Nicuesa
Diego de Nicuesa

Diego de Nicuesa was a Spain conquistador and explorer. In 1506, he was given the job of governing Costa Rica, but ran aground off the coast of Panama....
 to colonize the territories between the west side of the Gulf of Uraba
Gulf of Urabá

The Gulf of Urab? is a gulf on the northern coast of South America. It is a long narrow inlet in the coast of Colombia, close to the connection of the continent to the Isthmus of Panama....
 to Cabo Gracias a Dios
Cabo Gracias a Dios

Cabo Gracias a Dios is a cape located in the middle of the east coast of Central America, within what is variously called the Mosquito Coast and La Mosquitia....
 in present-day Honduras
Honduras

Honduras is a democratic republic in Central America. It was formerly known as Spanish Honduras to differentiate it from British Honduras ....
. The idea was to create an early unitary administrative organization similar to what later became Nueva España (now Mexico
Mexico

The United Mexican States , commonly known as Mexico , is a federalism constitutionalism republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico....
). Tierra Firme later received control over other territories: the Isla de Santiago (now Jamaica
Jamaica

Jamaica is an island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. It is about south of Cuba, and west of the island of Hispaniola, on which Haiti and the Dominican Republic are situated....
), the Cayman Islands
Cayman Islands

The Cayman Islands are a British overseas territory located in the western Caribbean Sea, comprising the islands of Grand Cayman, Cayman Brac, and Little Cayman....
, Roncador, Quitasueño, Providencia, and other islands now under Colombian control.

The main city in Tierra Firme was Santa María la Antigua del Darién
Santa María la Antigua del Darién

Santa Mar?a la Antigua del Dari?n was a settlement established in 1510 by Spain explorer Vasco N??ez de Balboa on the Caribbean Sea coast of what is now Darien, between Panama and Colombia.It was the first successful European settlement founded on the mainland of the Americas after the voyages of Christopher Columbus....
, near the mouth of the Tarena river. Vasco Nuñez de Balboa
Vasco Núñez de Balboa

Vasco N??ez de Balboa was a Spanish people explorer, governor, and conquistador. He is best known for having crossed the Isthmus of Panama to the Pacific Ocean in 1513, becoming the first European to lead an expedition to have seen or reached the Pacific from the New World....
 and Martin de Enciso agreed on the site. In September 1510, the first permanent European settlement on the American mainland was founded.

On August 28, 1513, the Diocese of Santa María de La Antigua del Darién was erected, and its first Bishop fray Juan de Quevedo
Juan de Quevedo

Juan de Quevedo was a Spain Franciscan priest and bishop. His antecedents are unknown.At the request of Ferdinand II of Aragon, husband of Queen Isabella of Spain, Pope Leo X, on August 28, 1513, appointed Quevedo bishop of Santa Maria de la Antigua, or Dari?n Province, on the Isthmus of Panama, and he thus became the first bishop on the m...
 became the first head of the Catholic Church in continental America.

Balboa maneuvered and was appointed mayor on the first official 'cabildo abierto', or open municipal council, held on the mainland.

On September 25, 1513, Balboa's expedition was able to verify what indigenous people had reported: that the isthmus had another coast and that there was another ocean. Balboa called it the South Sea, though it was later renamed the Pacific.

The fantastic descriptions of Balboa—as well as those of Columbus and other explorers—impressed King Ferdinand II of Aragón
Ferdinand II of Aragon

Ferdinand the Catholic was king of Aragon , Sicily , Naples , Valencia , Sardinia and Navarre, Count of Barcelona, de jure uxoris King of Crown of Castile and then Regent of that country also from 1508 to his death, in the name of his mentally unstable daughter Joanna the Mad....
 and Castilla
Crown of Castile

The Crown of Castile, as a historic entity, is usually considered to have begun in 1230 with the third and definitive union of the two kingdoms of Kingdom of Le?n and Kingdom of Castile, or more concretely, with the union of their parliaments a few decades later....
 who gave the territory the name of 'Castilla Aurifica', (Castilla del Oro or Golden Castilla) and assigned Pedro Arias de Avila (Pedrarias Davila
Pedrarias Dávila

File:PedrariasDavila.jpgPedrarias D?vila , was a Spain colonial administrator. He led the first great Spanish expedition in the New World.He married an intimate friend of queen Isabella I of Spain and saw some service in Europe....
) as governor. Pedrarias arrived in June 1514 with a 22 vessel and a 1,500 man armada. He was a veteran soldier who had served in the wars against the Moors
Moors

In the Spanish language, the term for Moors is Moro; in Portuguese language the word is mouro. There seems to have been some confusion about the relationship of the word moro/mouro to the word moreno , both from Greek language ma?ros, i.e....
 at Granada
Granada

Granada is a city and the capital of the province of Granada , in the autonomous communities of Spain of Andalusia, Spain....
 and in North Africa
North Africa

North Africa or Northern Africa is the northernmost region of the African continent, separated by the Sahara from Sub-Saharan Africa.Geopolitically, the United Nations subregion of Northern Africa includes the following seven countries or territories:...
. At seventy years, he was a worthy opponent for Balboa; he gave Balboa his daughter in marriage but afterwards had him tried for treason and executed.

On August 15, 1519, Pedrarias moved the capital of Castilla del Oro with all its organizational institutions to the Pacific coast and founded Nuestra Señora de la Asunción de Panamá, abandoning Darién and settling the first European city on the shores of the Pacific Ocean. Pedrarias sent Gil González Dávila
Gil González Dávila

Gil Gonz?lez D?vila was a Spanish people Conquistador and the discoverer of Nicaragua.Gonz?lez D?vila first appears in historical records in 1508, when he received a royal commission to examine accounts and tax records of estates....
 to explore northward and, in 1524, Francisco Hernández de Córdoba
Francisco Hernández de Córdoba (founder of Nicaragua)

Francisco Hern?ndez de C?rdoba is usually reputed as the founder of Nicaragua, and in fact he founded two important Nicaraguan cities, Granada, Nicaragua and Le?n, Nicaragua....
 to settle present day Nicaragua
Nicaragua

Nicaragua officially the Republic of Nicaragua , is a representative democracy republic. It is the largest state in Central America with an area of 130,000 km2, about the size of the state of New York....
. Pedrarias was a party to the original agreement with Francisco Pizarro
Francisco Pizarro

Francisco Pizarro Gonz?lez, 1st Marqu?s de los Atabillos was a Spain conquistador, conqueror of the Incan Empire and founder of Lima, the modern-day capital of Peru....
 and Diego de Almagro
Diego de Almagro

Diego de Almagro , also known as Adelantado and El Viejo , was a Spain conquistador and a companion and later rival of Francisco Pizarro....
 which brought about the discovery of Peru
Peru

Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. In 1526, Pedrarias was superseded as Governor of Panama by Pedro de los Ríos
Pedro de los Ríos

Friar Pedro de los R?os was a Dominican Order missionary in Mexico in the mid-16th century. Little is known about him, but he contributed to the creation of the manuscripts now known as the Codex Telleriano-Remensis and Codex Vaticanus A, which describe Aztec culture and history....
, and retired to León, Nicaragua
León, Nicaragua

Le?n is the second largest city in Nicaragua, after Managua. It was founded by the Spaniards as Santiago de los Caballeros de Le?n and rivals Granada, Nicaragua, in the number of historic spanish colonial homes and churches....
, where he was named its new governor on July 1, 1527. Here he died at age 91 on March 6, 1531.

Panama was part of the Spanish Empire
Spanish Empire

The Spanish Empire was one of the largest empires in world history, and one of the first global empires. It included territories and colonies ruled by Spain in Europe, the Americas, Africa, Asia and Oceania between the 15th and late 19th centuries....
 for over 300 years (1513-1821), and her fortunes fluctuated with the geopolitical importance of the isthmus to the Spanish crown. At the height of the Empire during the 16th and 17th century, no other region prove of more strategic and economic importance.

Pedrarias began building intercontinental and trans-isthmian routes, such as the "Camino Real" and "Camino de Cruces", linking Panama City with Nombre de Dios
Nombre de Dios

Nombre de Dios is a city on the Atlantic Ocean coast of Panama in the Colon Province.Founded as a Spanish colonization of the Americas in 1510 by Diego de Nicuesa, it was one of the first European settlements on the Isthmus of Panama and it is currently the oldest, continually populated town in Panama and America mainland....
 (and later with “Portobelo”) in the Atlantic, making possible the establishment of a trans-atlantic system of Treasure Fleets
Spanish treasure fleet

Beginning in the 16th century, the Spanish treasure fleets transported various metal resources and agricultural goods, including silver, gold, Gemstones, spices, tobacco, silk, and other exotic goods, from the Spanish colonies to Spain....
 and Fairs. It is estimated that of all the gold
Gold

Gold is a chemical element with the symbol Au and atomic number 79. It is a highly sought-after precious metal, having been used as money, as a store of value, in jewelry, in sculpture, and for ornamentation since the beginning of recorded history....
 entering Spain from the New World
New World

The New World is one of the names used for the non-Eurasian/non-African parts of the Earth, specifically the Americas and Australasia. When the term originated in the late 15th century, the Americas were new to the Europeans, who previously thought of the world as consisting only of Europe, Asia, and Africa ....
 between 1531 and 1660, 60% had arrived at its destiny via the Treasure Fleet and Fairs system from Nombre de Dios/Portobelo.

Explorations and conquest expeditions launched from Panama City systematically claimed new lands and riches from Central and South America. Explorations seeking a natural waterway between the Atlantic and the South Sea with the hope of reaching the Molucas and Cathay
Cathay

Cathay is the Anglicized version of "Catai" and an alternative name for China in English. It originates from the word Khitan people , the name of a barbarian tribe that founded the Liao Dynasty which ruled much of Northern China from 907 to 1125, and who had a state of their own centered around today's Kyrgyzstan for another century...
 were also pursued.

In 1538 the Real Audiencia de Panama was established, initially with jurisdiction from Nicaragua to Cape Horn
Cape Horn

Cape Horn island is the southernmost Headlands and bays of the Tierra del Fuego archipelago of southern Chile.Cape Horn is widely considered to be the most southerly point of South America, and marks the northern boundary of the Drake Passage; for many years it was a major milestone on the clipper route, by which sailing ships carried tr...
. A "Real Audiencia" (royal audiency) was a judicial district that functioned as an appeals court. Each audiencia had oidores (judges).

Panama was the site of the ill-fated Darien Scheme
Darién scheme

The Darien scheme , was an unsuccessful attempt by the Kingdom of Scotland to establish a colony on the Isthmus of Panama in the 1690s....
, which set up a Scottish colony in the region in 1698. This failed for a number of reasons, and the ensuing debt contributed to the union of England and Scotland
Acts of Union 1707

The Acts of Union were a pair of Act of Parliament passed in 1707 by the Parliament of Scotland and the Parliament of England to put into effect the terms of the Treaty of Union that had been agreed on 22 July 1706, following negotiation between commissioners representing the parliaments of the two countries....
 in 1707.

When Panama was colonized, the indigenous peoples who survived many diseases, massacres and enslavement of the conquest, ultimately fled into the forest and nearby islands. Indian slaves were replaced by Africans.

The prosperity enjoyed during the first two centuries (1540-1740) while contributing to colonial growth, the placing of extensive regional judicial authority (Real Audiencia) as part of its jurisdiction, and the pivotal role it played at the height of the Spanish Empire—the first modern global empire—helped define a distinctive sense of autonomy and regional or national identity.In 1744, Bishop Francisco Javier de Luna Victoria y Castro established the College of San Ignacio de Loyola and on June 3, 1749 founded La Real y Pontificia Universidad de San Javier. By this time, however, Panama’s importance and influence had become insignificant, as Spain’s power dwindled in Europe, and advances in navigation technique increasingly made it possible to round Cape Horn
Cape Horn

Cape Horn island is the southernmost Headlands and bays of the Tierra del Fuego archipelago of southern Chile.Cape Horn is widely considered to be the most southerly point of South America, and marks the northern boundary of the Drake Passage; for many years it was a major milestone on the clipper route, by which sailing ships carried tr...
 in order to reach the Pacific. While the Panama route was short, it was also labor-intensive and expensive because of the loading and unloading, and the laden-down trek required to get from the one coast to the other. The Panama route was also vulnerable to attack from pirates (mostly Dutch
Netherlands

The Netherlands is a country that is part of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands is located in North-West Europe, and bordered by the North Sea to the north and west, Belgium to the south, and Germany to the east....
 and English) and from Africa
Africa

Africa is the world's second-largest and second most-populous continent, after Asia. At about 30.2 million km? including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area....
ns called cimarrons who had freed themselves from enslavement and lived in communes
Commune (intentional community)

A commune is an intentional community of people living together, sharing common interests, property, possessions, resources, employment and income....
 or palenques around the Camino Real in Panama's Interior, and on some of the islands off Panama's Pacific coast. During the last half of the 18th century and the first half of the 19th century, migrations to the countryside decreased; Panama City’s population and the isthmus' economy shifted from the tertiary to the primary sector.

In 1717, the viceroyalty of New Granada
Viceroyalty of New Granada

The Viceroyalty of New Granada was the name given on May 27, 1717 to a Spanish colonial jurisdiction in northern South America, corresponding mainly to modern Panama, Colombia, Ecuador, and Venezuela....
 (northern South America) was created in response to other Europeans trying to take Spanish territory in the Caribbean region. The Isthmus of Panama was placed under its jurisdiction. However, the remoteness of Santa Fe de Bogota proved a greater obstacle than the Spanish crown anticipated, as the authority of New Granada was contested by the seniority, those in closer proximity, those with previous ties to the viceroyalty of Lima
Lima

Lima is the Capital and largest city of Peru. It is located in the valleys of the Chill?n River, R?mac River and Lur?n River rivers, on a coast overlooking the Pacific Ocean....
, and even Panama's own initiative. This uneasy relationship between Panama and Bogota persisted for a century.

Independence


After approximately 320 years under the rule of the Spanish Empire, on November 10, 1821, independence from Spain was declared in the small town of La Villa de Los Santos. On November 28, presided by Colonel Jose de Fabrega, a National Assembly was convened and it officially declared the independence of the isthmus of Panama from Spain and its decision to join New Granada
New Granada

New Granada may refer to various former national denominations for the present-day country of Colombia.*New Kingdom of Granada, from 1538 to 1717...
, Ecuador
Ecuador

Ecuador , officially the , literally, "Republic of the equator") is a representative democratic republic in South America, bordered by Colombia on the north, by Peru on the east and south, and by the Pacific Ocean to the west....
 and Venezuela
Venezuela

Venezuela , officially the Bolivarian Republic of Venezuela , is a country on the northern coast of South America.The country comprises a continental mainland and numerous islands located off the Venezuelan coastline in the Caribbean Sea....
 in Simón Bolívar
Simón Bolívar

Sim?n Jos? Antonio de la Sant?sima Trinidad Bol?var Palacios y Blanco ? more commonly known as Sim?n Bol?var ? was, together with the Argentina general Jos? de San Mart?n, one of the most important leaders of Spanish America's successful struggle for independence....
's recently founded Republic of Colombia.

In 1830, Venezuela, Ecuador and other territories left the Gran Colombia
Gran Colombia

Gran Colombia is a name used today for a nation that encompassed a great part of the territory of northern South America and a small part of southern Central America during the period 1819-1831....
, but Panama remained as a province of this country until July 1831, when the isthmus reiterated its independence under General Juan Eligio Alzuru as supreme military commander. In August, military forces under the command of Colonel Tomás Herrera
Tomás de Herrera

Tom?s Jos? Ram?n del Carmen de Herrera y P?rez D?vila was a neogranadine statesman and general who in 1840 became the first Head of State of the Free State of the Isthmus, now Panama....
 defeated and executed Alzuru and reestablished ties with New Granada.

In November 1840, during a civil war that had begun as a religious conflict, the isthmus declared its independence under the leadership of General Tomás Herrera and became the 'Estado Libre del Istmo', or the Free State of the Isthmus. The new state established external political and economic ties and drew up a constitution which included the possibility for Panama to rejoin New Granada, but only as a federal district. On June 1841 Tomás Herrera became the President of the Estado Libre del Istmo. But the civil conflict ended, and the government of New Granada and the government of the Isthmus negotiated the reincorporation of Panamá to Colombia on December 31, 1841.

The union between Panama and the Republic of Colombia was made possible by the active participation of the United States under the 1846 Bidlack Mallarino Treaty, which lasted until 1903. The treaty granted the U.S. rights to build railroads through Panama and to intervene militarily against revolt to guarantee New Granadine control of Panama. There were at least three attempts by Panamanian Liberals to seize control of Panama and potentially achieve full autonomy, including one led by Liberal guerrillas like Belisario Porras and Victoriano Lorenzo
Victoriano Lorenzo

Victoriano Lorenzo is considered one of the great heroes of Panamanian history, although his story and motives are sometimes debated by different sectors in his homeland....
, each of which was suppressed by a collaboration of Conservative Colombian and U.S. forces.

In 1902 U.S. President Theodore Roosevelt
Theodore Roosevelt

Theodore Roosevelt , also known as T.R., and to the public as Teddy, was the List of Presidents of the United States President of the United States....
 decided to take on the abandoned works of the Panama Canal by the French, but the Colombian government in Bogotá balked at the prospect of a U.S. controlled canal under the terms that Roosevelt's administration was offering. Roosevelt was unwilling to alter his terms and quickly changed tactics, encouraging a minority of Conservative Panamanian landholding families to demand independence, offering military support. On November 3, 1903, Panama finally separated, and Dr. Manuel Amador Guerrero
Manuel Amador Guerrero

Manuel Amador Guerrero , was the first president of Panama from 20 February 1904 to 1 October 1908. He was a member of the Conservative Party ....
, a prominent member of the Conservative political party, became the first constitutional President of the Republic of Panama. The U.S., which had a small naval force in the area, prevented the Colombians from sending reinforcements by sea, aiding the Panamians.

In November 1903, Phillipe Bunau-Varilla —- a French citizen who was not authorized to sign any treaties on behalf of Panama without the review of the Panamanians — unilaterally signed the Hay-Bunau Varilla Treaty
Hay-Bunau Varilla Treaty

The Hay-Banau Varilla Treaty was signed on November 18, 1903 . Phillipe Bunau-Varilla went to Washington, D.C. and New York City to negotiate the terms with several U.S....
 which granted rights to the U.S. to build and administer, indefinitely, the Panama Canal, which was opened in 1914. This treaty became a contentious diplomatic issue between the two countries, reaching a boiling point on Martyr's Day (9 January 1964). The issues were resolved with the signing of the Torrijos-Carter Treaties
Torrijos-Carter Treaties

The Torrijos-Carter Treaties are two treaty signed by the United States and Panama in Washington, D.C., on September 7, 1977, abrogating the Hay-Bunau Varilla Treaty of 1903....
 in 1977 returning the former Canal Zone territories
Panama Canal Zone

The Panama Canal Zone was a 553 square mile territory inside of Panama, consisting of the Panama Canal and an area generally extending 5 miles on each side of the centerline ....
 to Panama. The U.S. controlled the Panama Canal until 1999.

Elections

The second intent of the founding fathers was to bring peace and harmony between the two major political parties. The Panamanian government went through periods of political instability and corruption, however, and at various times in its history, the mandate of an elected president terminated prematurely. In 1968, a coup toppled the government of the recently elected President Arnulfo Arias Madrid, who had twice before been elected but was never able to complete a full term.

Though he never held the position of president, General Omar Torrijos
Omar Torrijos

Omar Efra?n Torrijos Herrera was the Commander of the Panamanian Military of Panama and the de facto leader of Panama from 1968 to 1981. Torrijos never held elected office in Panama, and was never president....
 eventually became the de facto leader of Panama. As a military dictator, he was the leading power in the governing military junta
Military dictatorship

A military dictatorship is a form of government wherein the political power resides with the military. It is similar but not identical to a stratocracy, a state ruled directly by the military....
 and later became an autocratic strong man. Torrijos maintained his position of power until his death in an airplane accident in 1981. During his reign, the Constitution was rewritten by a rubber-stamp assembly, military officers were placed in charge of civilian institutions, and hundreds of opponents of the dictatorship were killed, tortured or exiled. Torrijos, however, was also a charismatic figure. His demagogic populism and infrastructure projects appealed to many, and the clientelist use of jobs at public institutions created a political class dependent on the dictatorship and loyal to his party.

After Torrijos's death, several military strong men followed him as Panama's leader, all while maintaining the dictatorship's policy of installing civilian, puppet presidents: Commander Florencio Flores Aguilar
Florencio Flores Aguilar

Colonel Florencio Flores Aguilar was a Panamanian army officer and the military ruler of Panama from 1981 to 1982.Flores served as Commander of Panamanian Guardia Nacional following the death of General Omar Torrijos Herrera in July 1981....
, followed by Colonel Rubén Darío Paredes
Rubén Darío Paredes

Rub?n Dar?o Paredes del R?o was a Panamanian army officer and the military ruler of Panamafrom 1982 to 1983.Colonel Paredes came to power following the coup d'?tat against Colonel Florencio Flores Aguilar....
. By 1983, power was concentrated in the hands of General Manuel Antonio Noriega
Manuel Noriega

Manuel Antonio Noriega is a former Panamanian general and the military dictator of Panama from 1983 to 1989. He was never officially the president of Panama, but held the post of "chief executive officer" for a brief period in 1989....
.

Noriega came up through the ranks after serving in the Chiriquí province
Chiriquí Province

Chiriqu? is a province of Panama, it is located on the western coast of Panama and is the most developed province in the country. The capital is the city of David, Panama....
 and in the city of Puerto Armuelles for a time. He was a former head of Panama's secret police and was an ex-informant of the CIA
Central Intelligence Agency

The Central Intelligence Agency is a civilian intelligence agency of the Federal government of the United States. It is the successor of the Office of Strategic Services formed during World War II to coordinate espionage activities between the branches of the US military services....
. But Noriega's implication in drug trafficking by the United States resulted in difficult relations by the end of the 1980s. Eventually, the escalation of tensions led to the freezing of Panama's banking system and the emboldening of Panama's pro-democracy "Civilista" movement.

United States invasion of Panama


In May 1989, Panama's presidential elections were once again rigged by the military dictatorship, and pressure increased on the dictatorship from the Civilista movement, the Panamanian population, and the U.S. Government. The Civilista candidates who were largely believed to have won the elections with a clear majority were brutally beaten up by the dictatorship's henchmen, and tensions heightened tremendously. Noriega's regime armed many civilian supporters and formed irregular paramilitary units in preparation for a confrontation which Noriega explicitly provoked. In December, Noriega declared himself "President for Life."

On December 20 1989, 27,000 U.S. personnel stationed in Panama and flown in from the U.S. invaded Panama in order to remove Noriega. A few hours before the invasion, Guillermo Endara
Guillermo Endara

Guillermo David Endara Galimany was the president of Panama from 1989 to 1994. He ran for office in 2004, but lost to the incumbent President, Martin Torrijos....
, the purported winner of the May elections, was sworn in as the new President of Panama in a ceremony that took place inside a U.S. military base in the former Panama Canal Zone
Panama Canal Zone

The Panama Canal Zone was a 553 square mile territory inside of Panama, consisting of the Panama Canal and an area generally extending 5 miles on each side of the centerline ....
 with no Panamanians present. During the fighting, between two thousand and four thousand Panamanians (mostly civilians) were killed. Estimates by the two major human rights organizations Conlhuca and Conadehupa are 2,500 and 3,500 respectively. The Association of the Dead, on December 20, estimated over 4,000 dead. To date, 15 mass graves related to the invasion have been found. These include those killed by U.S. forces as well as those killed by the Panamanian armed forces and armed irregulars.

During the confusion of the invasion, Noriega fled to the Apostolic Nuncio
Nuncio

Nuncio is an Ecclesiology diplomatic title, derived from the ancient Latin word, Nuntius, meaning "envoy." This article addresses this title as well as derived similar titles, all within the structure of the Roman Catholic Church....
's residence and sought refuge. After several days of a U.S. siege of the Nuncio's residence, Noriega surrendered to the American military.

The period prior to Noriega's surrender and extradition was characterized by chaos and insecurity. Panama's police force was crippled by the invasion, and U.S. forces did not police the country, so widespread looting of shops, banks and private homes took place. Many small and medium enterprises went bankrupt as a result of the looting, and many civilians perished or were severely injured as a result of muggings and home invasions.

Shortly after his surrender to U.S. forces, Noriega was flown to Florida
Florida

Florida is a U.S. state located in the Southeastern United States of the United States, bordering Alabama to the northwest and Georgia to the northeast....
 to be formally extradited and charged by U.S. authorities on drug and racketeering charges. He became eligible for parole on September 9, 2007, but remained in custody while his lawyers fought an extradition request from France. Critics have pointed out that many of Noriega's former allies remain in power in Panama.

Post-invasion


The Endara
Guillermo Endara

Guillermo David Endara Galimany was the president of Panama from 1989 to 1994. He ran for office in 2004, but lost to the incumbent President, Martin Torrijos....
 government inherited a country whose economy had been crippled by an economic embargo, whose National Bank was looted by some of Noriega's cronies and whose security situation required immediate attention. While the military was abolished, a civilian police force was reformed and concerted efforts were directed at economic recovery. At the end of his term, Endara's government was unpopular and was ironically succeeded in 1994 by the party established by the military dictatorship. Panama did not undergo a thorough truth-and-reconciliation process, so most of the dictatorship's henchmen retained their often ill-begotten assets and resumed private lives without any retribution.

Endara's successor, President Ernesto Pérez Balladares
Ernesto Pérez Balladares

Ernesto P?rez Balladares Gonz?lez Revilla was the President of Panama between 1994 and 1999.Ernesto P?rez Balladares graduated from a school of Chiriqu? Province Province and from the Universities of University of Notre Dame and University of Pennsylvania, earning a master degree in economics and marketing ....
 was a Notre Dame University graduate and former official of the Noriega dictatorship. His administration pursued many unpopular neoliberal structural reforms, including the re-privatization of state enterprises which had been nationalized during the dictatorship era. His privatization of the electricity and telecommunications sectors have helped the country to modernize and attract foreign investment, but also resulted in significant increases to costs of service for most consumers. More controversial were the privatization of ports and some military installations in the former Canal Zone
Panama Canal Zone

The Panama Canal Zone was a 553 square mile territory inside of Panama, consisting of the Panama Canal and an area generally extending 5 miles on each side of the centerline ....
, including a parcel of land sold to both a port operator and a railroad operator. Near the end of his term, Pérez Balladares sought unsuccessfully to amend the Constitution to permit him to run for re-election.

Panama's Constitution was drafted during the Torrijos dictatorship, but was amended in 1983 and 1994.

Under the Torrijos-Carter Treaties, the United States turned over all canal-related lands to Panama on December 31, 1999. Panama gained control of canal-related buildings and infrastructure as well as full administration of the canal. The people of Panama have approved the very costly expansion/widening of the canal, which after completion, will allow for post-Panamax
Panamax

"Panamax" ships are of the maximum dimensions that will fit through the canal lock of the Panama Canal. This size is determined by the dimensions of the lock chambers, and the depth of the water in the canal....
 vessels to travel through it, increasing the number of ships that currently use the canal.

Politics

Panama's politics take place in a framework of a presidential
Presidential system

A presidential system is a system of government where an executive branch exists and presides separately from the legislature, to which it is not wikt:accountable and which cannot, in normal circumstances, wikt:dismiss it....
 representative democratic
Representative democracy

File:Electoral democracies.pngRepresentative democracy is a form of government founded on the principle of Election individuals representing the people, as opposed to either autocracy or direct democracy....
 republic
Republic

A republic is a state or country that is not led by a hereditary monarch but in which the people have an impact on its government. The word originates from the Latin term res publica....
, whereby the President of Panama is both head of state
Head of State

Head of state is the generic term for the individual or collective office that serves as the chief public representative of a monarchic or republican nation-state, federation, commonwealth or any other political state....
 and head of government
Head of government

The head of government is the chief officer of the executive branch of a government, often presiding over a cabinet . In a parliamentary system, the head of government is often styled Prime Minister, President of the Government, Premier, etc....
, and of a multi-party system
Multi-party system

A multi-party system is a system in which three or more political parties have the capacity to gain control of government separately or in coalition....
. Executive power is exercised by the government. Legislative power is vested in both the government
Government

Government is the body within any organization that has the authority to make and the power to enforce laws, regulations, or rules. Typically, the government refers to a civil government -- local, provincial, or national -- but commercial, academic, religious, or other formal organizations are also administered by governing bodies....
 and the National Assembly
National Assembly of Panama

The National Assembly , formerly the Legislative Assembly is the legislature of the government of the Panama.It is a Unicameralism legislature, currently made up of 78 members, who serve five-year terms....
. The judiciary
Judiciary

In law, the judiciary is the system of courts which administer justice in the name of the Sovereignty or state, a mechanism for the dispute resolution....
 is independent of the executive and the legislature.

All national elections are universal and mandatory to all citizens 18 years and older. National elections for the executive and legislative branches take place every five years. Members of the judicial branch are appointed by the head of state. Panama's National Assembly
National Assembly of Panama

The National Assembly , formerly the Legislative Assembly is the legislature of the government of the Panama.It is a Unicameralism legislature, currently made up of 78 members, who serve five-year terms....
 is elected by proportional representation in fixed electoral districts, so many smaller parties are represented. Presidential elections do not require a simple majority, and Panama's last three presidents were elected with the support of only 30-40% of voters.

Since the U.S. invasion and the end of the 21-year military dictatorship, Panama has successfully completed three peaceful transfers of power to opposing political factions. The political landscape is dominated by two major parties and many smaller parties, many of which are driven by individual leaders more than ideologies. President Martin Torrijos
Martín Torrijos

Mart?n Erasto Torrijos Espino is a Panama politician and the current List of Presidents of Panama.Torrijos was elected President on May 2, 2004....
 is the son of former military dictator Omar Torrijos
Omar Torrijos

Omar Efra?n Torrijos Herrera was the Commander of the Panamanian Military of Panama and the de facto leader of Panama from 1968 to 1981. Torrijos never held elected office in Panama, and was never president....
. He succeeded Mireya Moscoso
Mireya Moscoso

Mireya Elisa Moscoso Rodr?guez de Arias was the List of Presidents of Panama of Panama from 1999 to 2004, representing the Paname?ista Party. She was Panama's first female president....
, the widow of Arnulfo Arias
Arnulfo Arias

Dr. Arnulfo Arias Madrid was List of Presidents of Panama of Panama on three occasions: 1940–41, 1949–51, and for two weeks in October 1968....
. Panama's next national elections are scheduled for May 3, 2009.

Provinces and regions

Panama is divided into nine provinces, with their respective local authorities (governors) and has a total of ten cities. Also, there are four
Comarcas (literally: "Shires") which house a variety of indigenous groups.

Geography

Countries Panama Provinces 2005 10 18 En
Panama is located in Central America, bordering both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. Its location on the Isthmus of Panama
Isthmus of Panama

The Isthmus of Panama, also historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North America and South America....
 is strategic. By 2000, Panama controlled the Panama Canal
Panama Canal

The Panama Canal is a man-made canal which joins the Pacific Ocean and Atlantic Ocean oceans. One of the largest and most difficult engineering projects ever undertaken, it had an enormous impact on shipping between the two oceans, replacing the long and treacherous route via the Drake Passage and Cape Horn at the southernmost tip of South Am...
 that links the North Atlantic Ocean
Atlantic Ocean

The Atlantic Ocean is the second-largest of the world's oceanic divisions; with a total area of about 106.4 million square kilometres . It covers approximately one-fifth of the Earth's surface....
 via the Caribbean Sea with the North Pacific Ocean.

The dominant feature of the country's landform is the central spine of mountains and hills that forms the continental divide. The divide does not form part of the great mountain chains of North America, and only near the Colombian border are there highlands related to the Andean
Andes

The Andes form the world's longest exposed mountain range. They lie as a continuous chain of highland along the western coast of South America. The range is over 7,000 km long, 200-700 km wide , and of an average height of about 4,000 m ....
 system of South America. The spine that forms the divide is the highly eroded arch of an uplift from the sea bottom, in which peaks were formed by volcanic intrusions.
Dirkvdm Santa Fe Crater Rim
The mountain range of the divide is called the Cordillera de Talamanca
Cordillera de Talamanca

The Cordillera de Talamanca is a mountain range that lies on the border between Costa Rica and Panama. Much of the range and the area around it is included in the La Amistad International Park, which also is shared between the two countries....
 near the Costa Rican border. Farther east it becomes the Serranía de Tabasará, and the portion of it closer to the lower saddle of the isthmus, where the canal is located, is often called the Sierra de Veraguas. As a whole, the range between Costa Rica and the canal is generally referred to by geographers as the Cordillera Central
Cordillera Central, Costa Rica

The Cordillera Central is a range of mountains in central Costa Rica which continues the Continental Divide east of Cordillera de Tilar?n.It has four large volcanoes Po?s Volcano, Barva_Volcano, Iraz? Volcano and Turrialba Volcano....
.

The highest point in the country is the Volcán Barú
Volcán Barú

The Volc?n Bar? is the tallest mountain in Panama and is high.A dormant volcano but potentially active just south of the Continental Divide in the western Chiriqu? Province, it is surrounded by a fertile area of cool Highland drained by the Chiriqu? River and Caldera River rivers....
 (formerly known as the Volcán de Chiriquí), which rises to 3,475 meters (11,401 ft). A nearly impenetrable jungle forms the Darien Gap
Darién Gap

The Dari?n Gap is a large swath of undeveloped swampland and forest separating Panama and Colombia . It measures just over 160 km long and about 50 km wide....
 between Panama and Colombia. It creates a break in the Pan-American Highway
Pan-American Highway

The Pan-American Highway is a network of roads nearly 48,000 kilometres in total length. Except for an 87 kilometre rainforest gap, called the Dari?n Gap, the road links the mainland nations of the Americas in a connected highway system....
, which otherwise forms a complete road from Alaska
Alaska

Alaska is the largest U.S. state of the United States by area; it is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait....
 to Patagonia
Patagonia

Patagonia is a geographic region containing the southernmost portion of South America. Located in Argentina and Chile, it comprises the Andes mountains to the west and south, and plateaux and low plains to the east....
.

Economy

According to the CIA World Factbook, Panama has an unemployment
Unemployment

File:World map of countries by rate of unemployment.pngUnemployment occurs when a person is available to work and currently seeking work, but the person is without Wage labour....
 rate of 6.4%. According to the ECLAC, the poverty
Poverty

Poverty is the shortage of common things such as food, clothing, shelter and safe drinking water, all of which determine our quality of life. It may also include the lack of access to opportunities such as education and employment which aid the escape from poverty and/or allow one to enjoy the respect of fellow citizens....
 rate is of 28.6% as of 2006, comparable to that of wealthier nations such as Argentina
Argentina

Argentina, officially the Argentine Republic , is a country in South America, constituted as a federation of 23 provinces and an autonomous city....
. Also, an alimentary surplus was registered in August 2008, and infrastructure works are progressing rapidly. The International Monetary Fund
International Monetary Fund

The International Monetary Fund is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments....
 has predicted that Panama will be the fastest growing economy in Latin American in 2009. It was the second fastest growing economy in Latin America in 2008, after Peru.

Panama's economy is mainly service-based, heavily weighted toward banking, commerce, tourism, trading and private industries
Industry

An industry is the manufacturing of a Good or Service within a category. Although industry is a broad term for any kind of economic production, in economics and urban planning industry is a synonym for the secondary sector, which is a type of economic activity involved in the manufacturing of raw materials into goods and products....
, because of its key geographic location. The handover of the Canal and military installations by the United States has given rise to some construction projects. A referendum regarding the building of a third set of locks for the Panama Canal was approved overwhelmingly (though with low voter turnout) on 22 October 2006. The official estimate of the building of the third set of locks is US$5.25 billion.

The Panamanian currency is officially the balboa
Panamanian balboa

The balboa is the currency of Panama. Its ISO 4217 code is PAB. It is named in honour of the Spanish people List of explorers/conquistador Vasco N??ez de Balboa....
, fixed
Fixed exchange rate

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold standard....
 at parity with the United States dollar
United States dollar

The United States dollar is the unit of currency of the United States and was defined by the Coinage Act of 1792 to be between 371 and 416 grains of silver ....
 since independence in 1903. In practice, however, the country is dollarized
Dollarization

Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency.Dollarization can occur...
; Panama has its own coinage but uses U.S. dollars for all its paper currency. Some claim that Panama was the first of the three countries in Latin America
Latin America

Latin America is a region of the Americas where Romance languages ? particularly Spanish language and Portuguese language, and variably French language ? are primarily spoken....
 to have dollarized their economies (later followed by Ecuador
Ecuador

Ecuador , officially the , literally, "Republic of the equator") is a representative democratic republic in South America, bordered by Colombia on the north, by Peru on the east and south, and by the Pacific Ocean to the west....
 and El Salvador
El Salvador

El Salvador is the smallest country in the Americas and Central America by size, and the most densely populated nation in Central America. It borders on the Pacific Ocean between Guatemala and Honduras....
), but in fact, Panama simply adopted the dollar from its very independence.

Globalization

Dirkvdm Coffee Drying
The high levels of Panamanian trade are in large part from the Colón Free Trade Zone
Colón Free Trade Zone

The Col?n Free Trade Zone is a gigantic entity at the Atlantic gateway to the Panama Canal, dedicated to re-export an enormous variety of merchandise to Latin America and the Caribbean....
, the largest free trade zone in the Western Hemisphere
Western Hemisphere

The Western Hemisphere, also Western hemisphere or western hemisphere, is a geography term for the half of the Earth that lies west of the Prime Meridian , the other half being the Eastern Hemisphere....
. Last year the zone accounted for 92% of Panama's exports and 64% of its imports, according to an analysis of figures from the Colon zone management and estimates of Panama's trade by the United Nations Economic Commission for Latin America and the Caribbean
United Nations Economic Commission for Latin America and the Caribbean

The United Nations Economic Commission for Latin America and the Caribbean was established in 1948 to encourage economic cooperation among its member states....
. Panama's economy is also very much supported by the trade and exportation of coffee
Coffee

Coffee is a brewed drink prepared from roasted seeds, commonly called coffee beans, of the Coffea. Caffeinated coffee has a stimulating effect in humans....
 and other agricultural products.

Inflation

According to the Economic Commission for Latin American and the Caribbean, Panama's inflation as measured by weight CPI
Consumer price index

A consumer price index is a measure of the average price of consumer goods and services purchased by households. It is a price index determined by measuring the price of a standard group of goods meant to represent the typical market basket of a typical urban consumer....
 was 2.0% in 2006. Panama has traditionally experienced low inflation, as it shares currencies with the U.S.

Real estate


Panama's strategic location, pension
Pension

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment.The terms retirement plan or superannuation refer to a pension granted upon retirement ....
 programs, tax exemptions, low cost of living, tropical
Tropical climate

A tropical climate is a kind of climate typical in the tropics. Wladimir K?ppen's widely-recognized K?ppen climate classification defines it as a non-arid climate in which all twelve months have mean temperatures above ....
 and highland
Mountain climate

Mountain climate is a crude geographical term used for the kind of climate in the mountains and generally in the high country. It is often contrasted to the climate of the cloudy, lowland area surrounding or near the same mountains....
 climates and investment incentives have contributed to the ongoing real estate boom that has been affecting Panama City and the rest of the country.

Apart from the existing demand, future developments may be helped by such factors as the planned expansion of the Panama Canal.

Bilateral Investment Treaty with the U.S.

The Bilateral Investment Treaty (BIT) between the governments of the United States and Panama was signed on October 27, 1982. The treaty protects U.S. investment and assists Panama in its efforts to develop its economy by creating conditions more favorable for U.S. private investment and thereby strengthening the development of its private sector. The BIT with Panama was the first such treaty signed by the U.S. in the Western Hemisphere.

The importance of Panama to the U.S. stems from the Panama Canal which was built by the U.S. during the period of 1904–1914. Previously, if ships wanted to pass through the Americas, they would have to go all the way around the most southern tip of South America, the Tierra del Fuego
Tierra del Fuego

Tierra del Fuego is an archipelago separated from the southernmost tip of the South American mainland by the Strait of Magellan. The southern point of the archipelago forms Cape Horn....
, and through the Drake Passage
Drake Passage

The Drake Passage or Mar de Hoces -Sea of "Hoces"- is the body of water between the southern tip of South America at Cape Horn, Chile and the South Shetland Islands of Antarctica....
. The Panama Canal connects the Atlantic and Pacific Oceans directly at the narrowest point in Panama. When previously a ship going from New York City
New York City

The City of New York is the List of United States cities by population in the United States, while the New York metropolitan area ranks among the List of urban areas by population....
 to San Francisco would have to travel for 20,900 kilometers (13,000 miles), that travel time would be reduced to 8,370 km (5,230 mi).

The canal is of economic importance since it pumps millions of dollars from toll revenue to the national economy and provides massive employment. The United States had a monopoly over the Panama Canal for 85 years. However, the Torrijos-Carter Treaties signed in 1977 began the process of returning the canal to the Panamanian government in 1999 as long as they agreed to the neutrality of the canal, as well as allowing the U.S. to return at any time to defend this claim. This treaty, however, allows the national government to deny certain nations and companies the usage of the canal for certain reasons, such as national security.

Tourism

Along with real estate, tourism is one of Panama's rising economic activities. Small and amazingly diverse, Panama makes it possible for a traveler to visit not only two different oceans in one day, but be able to combine in less than a week a diversified natural experience (white sand beaches, cloud or rain forest, mountains or valleys) with a wide range of cultural experiences (seven Indian tribes, Afroantillian and Spanish Colonial culture, several historic monuments and a 300 year old World Heritage Site called Casco Antiguo (often referred as Casco Viejo, Panama Viejo, San Felipe or Catedral) ). In recent years the northwestern and northeastern regions of Panama have drawn increasing amounts of touristic activity because of their beaches, temperate and tropical rainforests, all within easy reach of popular Costa Rica. Bocas Del Toro, Boquete
Boquete

Boquete is a small town tucked into the green mountain highlands of Panama, in western-most Chiriqu? Province, about 60 km. from the border with Costa Rica....
, and the surfing areas of the west coast are tourist draws. Panama has become a cross roads for backpacking international tourists and has seen an increase in backpacker hostels.

Proposed Free Trade Agreement with the United States


A Trade Promotion Agreement
Panama - United States Trade Promotion Agreement

The Panama - United States Trade Promotion Agreement, in Panama called Tratado de Libre Comercio entre Panama y Estados Unidos, is a bilateral free trade agreement, whose stated objectives include eliminating obstacles to trade, consolidating access to goods and services and favoring private investment in and between both nations....
 between the United States and Panama was signed by both governments in 2007, but neither country has yet approved or implemented the agreement. While the U.S. Congress was initially favorably disposed to the Panama pact, the election of the anti-American Pedro González
Pedro Miguel González Pinzón

Pedro Miguel Gonz?lez Pinz?n is a leading political figure in Panama who was indicted by a U.S. federal court in October 1992 for the June 10, 1992 killing of an American serviceman, Sgt....
 to the presidency of the Panamanian legislature on September 1, 2007 has halted progress of the pact in that body. González has an outstanding warrant for the assassination of U.S. soldier Zak Hernández
Zak Hernández

Sergeant Zak Hern?ndez Laporte , was a 22-year-old member of the United States Army who was killed in Panama City when the Humvee in which he was riding was ambushed on the eve of President George H....
.

Demographics


According to the CIA World Factbook
The World Factbook

The World Factbook is a reference resource produced by the Central Intelligence Agency of the United States with almanac-style information about the List of countries....
, Panama has a population of 3,309,679. The majority of the population, 70%, is mestizo
Mestizo

Mestizo is a Spanish language term that was used in the Spanish Empire to refer to people of mixed Europe and Indigenous peoples of the Americas ancestry in Latin America....
. The rest is 14% Amerindian and mixed West Indian, 10% white
White Latin American

White Latin Americans are the White people population of Latin America. They are the descendants of 15th?to?19th century colonial-era settlers and of post-independence immigrants....
 and 6% Amerindian. The Amerindian population includes seven indigenous peoples, the Emberá
Emberá

Ember? is a comarca ind?gena in eastern Panama. It was created by Law Number 22 on November 8, 1983, within the territories of Chepigana and Pinogana districts, Dari?n Province....
, Wounaan, Guaymí
Guaymí

The Guaym? or Ng?be are an indigenous group living mainly within the Ng?be-Bugl? comarca in the Western Panamanian provinces of Veraguas, Chiriqu? and Bocas del Toro....
, Buglé
Bugle

The word bugle may refer to:* Bugle , a horn in the "natural" brass musical instrument family* Bugle , an often cultivated plant of the family Lamiaceae...
, Kuna
Kuna (people)

Kuna or Cuna is the name of an indigenous people of Panama and Colombia. The spelling Kuna is currently preferred. In the Kuna language, the name is Dule or Tule, meaning "people," and the name of the language in Kuna is Dulegaya, meaning "people-talk."...
, Naso
Naso (people)

The Central American tribe, Naso, Teribe or Tj?r Di are an indigenous peoples located in northwest Panama, in the province of Bocas del Toro....
 and Bribri
Bribri

The Bribri are a small Indigenous peoples of the Americas tribe, around 10,000 members, living in the Talamanca canton inside of the Lim?n Province in Costa Rica....
. More than half the population lives in the Panama City–Colón
Colón, Panama

Col?n is a sea port on the Caribbean Sea coast of Panama. The city lies near the Atlantic Ocean entrance to the Panama Canal. It is capital of Panama's Col?n Province and has traditionally been known as Panama's second city....
 metropolitan corridor.

The culture, customs, and language of the Panamanians are predominantly Caribbean and Spanish. Spanish
Spanish language

Spanish or Castilian is a Romance languages that originated in northern Spain, and gradually spread in the Kingdom of Castile and evolved into the principal language of government and trade....
 is the official and dominant language. About 40% of the population speak creole
Creole language

A creole language, or simply a creole, is a stable language that originates seemingly as a nativization pidgin. This understanding of creole genesis culminated in Robert A....
, mostly in Panama City and in the islands off the northeast coast. English
English language

English is a West Germanic language that originated in Anglo-Saxon England and has lingua franca status in many parts of the world as a result of the military, economic, scientific, political and cultural influence of the British Empire in the 18th, 19th and early 20th centuries and that of the United States from the mid 20th century onwa...
 is spoken widely on the Caribbean coast and by many in business and professional fields.

Panama, because of its historical reliance on commerce, is above all a melting pot. This is shown, for instance, by its considerable population of Afro-Antillean and Chinese origin
Overseas Chinese

Overseas Chinese are people of Chinese people birth or descent who live outside the territories administered by the rival governments of the People's Republic of China and the Republic of China ....
. The first Chinese immigrated to Panama
Ethnic Chinese in Panama

Ethnic Chinese in Panama, also variously referred to as Chinese-Panamanian, Panamanian-Chinese, Panama Chinese, or in Spanish language as Chino-Paname?o, are Panamanian citizens and residents of China origin or descent....
 from southern China to help build the Panama Railroad in the 19th century. They were followed by several waves of immigrants whose descendants number around 50,000. Starting in the 1970s, a further 80,000 have immigrated from other parts of mainland China
Mainland China

Mainland China, Continental China, the Chinese mainland or simply the mainland, is a geopolitical term refers to the area under the jurisdiction of the People's Republic of China , excluding Hong Kong and Macau, which run on One Country, Two Systems....
 as well. Most of the Panamanian population of West Indian descent owe their presence in the country to the monumental efforts to build the Panama Canal in the late 19th and early 20th centuries.

The country is the smallest in Spanish-speaking Latin America in terms of population (est. 3,232,000), with Uruguay as the second smallest (est. 3,463,000).

Religion

The overwhelming majority of Panamanians are Roman Catholic – various sources estimate that 75-85% of the population identifies itself as Roman Catholic and 15-25% percent as evangelical Christian. The Bahá'í Faith
Bahá'í Faith

The 'Bah?'? Faith' is a monotheism religion founded by Bah?'u'll?h in nineteenth-century Persian Empire#Persia and Europe , emphasizing the spiritual unity of all humankind....
 community of Panama is estimated at 2.00% of the national population, or about 60,000 and is home to one of the seven Baha'i Houses of Worship.

Smaller religious groups include Jewish
Judaism

Judaism is a set of beliefs and practices originating in the Hebrew Bible , as later further explored and explained in the Talmud and other texts....
 and Muslim
Islam in Panama

Islam in Panama has a long and unique history. Official data estimates 0.3 percent of the population of Panama is Muslim....
 communities with approximately 10,000 members each, and small groups of Hindus, Buddhists and Rastafarians. Indigenous religions include Ibeorgun (among Kuna
Kuna (people)

Kuna or Cuna is the name of an indigenous people of Panama and Colombia. The spelling Kuna is currently preferred. In the Kuna language, the name is Dule or Tule, meaning "people," and the name of the language in Kuna is Dulegaya, meaning "people-talk."...
) and Mamatata (among Ngobe).

The Jewish community in Panama, with over 10,000 members, is by far the largest in the region (including Central America and the Caribbean). Its Sephardi
Sephardi Jews

Sephardi Jews are a subgroup of Jews originating in the Iberian Peninsula and North Africa, usually defined in contrast to Ashkenazi or Mizrahi Jews....
 Chief Rabbi
Chief Rabbi

Chief Rabbi is a title given in several countries to the recognized religious leader of that country's Jewish community, or to a rabbinic leader appointed by the local secular authorities....
, Zion Levi
Zion Levi

Zion Levi was the Sephardi Jews Chief Rabbi of Panama for 57 years. His tenure is thought to be the longest of any religious leader in the region....
, led the community for 57 years, from 1951 until his death in 2008. His tenure is thought to be the longest of any religious leader in the region.

Jewish immigration began in the late 19th century from the Dutch Antilles, followed by immigration from other Jewish communities, and at present there are three synagogues in Panama City, as well as four Jewish schools. Within Latin America, Panama has one of the largest Jewish communities in proportion to its population, surpassed only by Uruguay
Uruguay

Uruguay is a country located in the southeastern part of South America. It is home to 3.46 million people, of whom 1.7 million live in the capital Montevideo and its metropolitan area....
, Argentina
Argentina

Argentina, officially the Argentine Republic , is a country in South America, constituted as a federation of 23 provinces and an autonomous city....
, Brazil
Brazil

Brazil , officially the Federative Republic of Brazil , is a country in South America. It is the List of countries and outlying territories by total area country by geographical area, occupying nearly half of South America, the List of countries by population country, and the fourth most populous democracy in the world....
, and Mexico
Mexico

The United Mexican States , commonly known as Mexico , is a federalism constitutionalism republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico....
. Panama is also the first country in Latin America to have a Jewish president, Max Delvalle Levy-Maduro
Max Delvalle

Max Delvalle Levy-Maduro is a former Panamanian Vice President of Panama. Both he and his nephew, Eric Arturo Delvalle, were members of the Kol Shearit Israel Synagogue....
.

International rankings

Index (Year)Author / Editor / Source Year of
publication
Countries
sampled
World
Ranking
(1)
Ranking
L.A.
(2)
Environmental Performance (2008)
Environmental Performance Index

The Environmental Performance Index is a method of quantifying and numerically benchmarking the environmentalism performance of a country's policies....
 
Yale University
Yale University

Yale University is a private university in New Haven, Connecticut. Founded in 1701 as the Collegiate School, Yale is the Colonial Colleges institution of higher education in the United States and is a member of the Ivy League....
 
2008
149 32º
Democracy (2006)
Democracy Index

The Economist has in a study examined the state of democracy in 167 countries and attempted to quantify this with an Economist Intelligence Unit Index of Democracy which focused on five general categories; electoral process and pluralism, civil liberties, functioning of government, political participation and political culture....
The Economist
The Economist

The Economist is an English-language weekly news and international relations publication owned by The Economist Newspaper Ltd. and edited in London....
2007
167 44º
Global Peace (2008)
Global Peace Index

The Global Peace Index is an attempt to measure the relative position of nations? and regions? peacefulness. It is maintained by the Institute for Economics and Peace and developed in consultation with an international panel of peace experts from peace institutes and think tanks, together with the Centre for Peace and Conflict Studies, Uni...
 
The Economist
The Economist

The Economist is an English-language weekly news and international relations publication owned by The Economist Newspaper Ltd. and edited in London....
2008
140 48º
Economic Freedom (2008)
Index of Economic Freedom

The Index of Economic Freedom is a series of 10 economic measurements created by the Heritage Foundation and Wall Street Journal. Its stated objective is to measure the degree of economic freedom in the world's nations....
 
The Wall Street Journal
The Wall Street Journal

The Wall Street Journal is an English language international daily newspaper published by Dow Jones & Company in New York, New York with Asian and European editions....
 
2008
157 46º
Quality-of-life (2005)
Quality-of-life index

The Economist Intelligence Unit?s quality of life index is based on a unique methodology that links the results of subjective life-satisfaction surveys to the objectivity determinants of quality of life across countries....
 
The Economist
The Economist

The Economist is an English-language weekly news and international relations publication owned by The Economist Newspaper Ltd. and edited in London....
 
2007
111 47º
Travel and Tourism Competitiveness (2008)
Travel and Tourism Competitiveness Report

The Travel and Tourism Competitiveness Report was first published in 2007 by the World Economic Forum. The 2007 report covered 124 major and emerging economies....
 
World Economic Forum
World Economic Forum

The World Economic Forum is a Geneva-based non-profit foundation best known for its annual meeting in Davos, Switzerland which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss the most pressing issues facing the world including health and the environment....
 
2008
130 50º
Press Freedom (2007) Reporters Without Borders
Reporters Without Borders

Reporters Without Borders, or RWB is a Paris-based international non-governmental organization that advocates freedom of the press. It was founded in 1985 by current Secretary General Robert M?nard, Rony Brauman and the journalist Jean-Claude Guillebaud....
2007
169 54º
Global Competitiviness (2007)
Global Competitiveness Report

The Global Competitiveness Report is a yearly report published by the World Economic Forum. The first report was released in 1979. The 2008-2009 report covers 134 major and emerging economies, up from 131 considered in the 2007-2008 report....
 
World Economic Forum
World Economic Forum

The World Economic Forum is a Geneva-based non-profit foundation best known for its annual meeting in Davos, Switzerland which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss the most pressing issues facing the world including health and the environment....
 
2007–08
131 59º
Human Development (2005)
Human Development Index

The Human Development Index is an index used to rank countries by level of "human development", which usually also implies to determine whether a country is a developed country, developing country....
United Nations (UNDP)
2007–08
177 62º
Corruption Perception (2008)
Corruption Perceptions Index

Since 1995, Transparency International has published an annual Corruption Perceptions Index ordering the countries of the world according to "the degree to which corruption is perceived to exist among public officials and politicians"....
Transparency International
Transparency International

Transparency International is an international non-governmental organization addressing corruption. This includes, but is not limited to, political corruption....
2008
180 85º
10º
Income inequality (1989–2007)
List of countries by income equality

This is a list of countries or dependencies by income inequality metrics, including Gini coefficients, according to the United Nations and the Central Intelligence Agency ....
(3)
United Nations (UNDP)
2007–2008
126 115º
14º
Life Satisfaction Index (2006-2007) (4) Inter-American Development Bank
Inter-American Development Bank

The Inter-American Development Bank , is an international organization established and headquartered in Washington, D.C., United States, in 1959 to support Latin America and Caribbean economic and social development and regional integration by lending mainly to governments and government agencies, including State corporations....
2008
24 N/A(4)
(1) Worldwide ranking among countries evaluated.
(2) Ranking among the 20 Latin American countries (Puerto Rico
Puerto Rico

Puerto Rico , officially the Commonwealth of Puerto Rico , is a Autonomy Territories of the United States of the United States located in the northeastern Caribbean, east of the Dominican Republic and west of the Virgin Islands....
 is not included).
(3) Because the Gini coefficient
Gini coefficient

The Gini coefficient is a Statistical_dispersion#Measures_of_statistical_dispersion most prominently used as a income inequality metrics or Wealth condensation....
 used for the ranking corresponds to different years depending of the country, and the underlying household surveys differ in method and in the type of data collected, the distribution data are not strictly comparable across countries. The ranking therefore is only a proxy for reference purposes, and though the source is the same, the sample is smaller than for the HDI
(4) The Life Satisfaction Index study was performed by the Inter-American Development Bank among 24 countries in the Latin American and the Caribbean region, based on IDB calculations based on Gallup
Gallup

Gallup can refer to*Gallup, New Mexico*George Gallup, American pollster**The Gallup Organization, firm founded by George Gallup**Gallup poll, an opinion poll invented by George Gallup and conducted by The Gallup Organization...
 World Poll 2006 - 2007 and World Development Indicators. Therefore, it is a regional index.


National bird

Classified as an endangered species
Endangered species

An endangered species is a population of an organism which is at risk of becoming extinct because it is either few in numbers, or threatened by changing environmental or predation parameters....
, Harpy eagles are rare in captivity. These large birds are challenged in the wild because they require vast expanses of undisturbed forest. When they do breed, only one eaglet usually results. These large birds of prey generally eat monkeys and sloths in the wild. More common in the Darien area of Panama, there have been a few sightings near the border of Costa Rica.

See also


Further reading

  • Heckadon-Moreno, Stanley (ed.) (2001). Panama: Puente Biologico. Balboa, Panama: Instituto Smithsonian de Investigaciones Tropicales. ISBN 9962-614-01-5
  • McCullough, David (1977). The Path Between The Seas: The Creation of the Panama Canal, 1870-1914. New York, New York: Simon & Scuster. ISBN 0-671-22563-4
  • Murillo, Luis E. (1995). The Noriega Mess: The Drugs, the Canal, and Why America Invaded. 1096 pages, illustrated. Berkeley: Video Books. ISBN 0-923444-02-5.
  • Mellander, Gustavo A. (1971) The United States in Panamanian Politics: The Intriguing Formative Years. Danville, Ill.: Interstate Publishers, OCLC 138568
  • Mellander, Gustavo A.; Nelly Maldonado Mellander (1999). Charles Edward Magoon: The Panama Years. Río Piedras, Puerto Rico: Editorial Plaza Mayor. ISBN 1563281554. OCLC 42970390.


External links


Government and diplomacy
  • [https://www.cia.gov/library/publications/world-leaders-1/world-leaders-p/panama.html Chief of State and Cabinet Members]


General information* at
UCB Libraries GovPubs Travel
  • [https://www.visitpanama.com Official Site of the Panama Tourism Bureau]


Nature conservation
  • reforestation for the endemic Squirrel Monkey


News media Mi Diario
Mi Diario

MI DIARIO is a Panama newspaper published in Panama City by Corporaci?n La Prensa and distributed nationwide.Corporacion La Prensa, with its more than 26 years of experience introduced in 2003 a new editorial product: "a popular newspaper"....