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Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a
transcontinental country This is a list of countries with territory that straddles more than one continent, known as transcontinental states or intercontinental states. Contiguous transcontinental countries are states that have one continuous or immediately-adjacent ...
spanning the southern part of
North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...
and the northern part of
South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the southe ...
. It is bordered by
Costa Rica Costa Rica (, ; ; literally "Rich Coast"), officially the Republic of Costa Rica ( es, República de Costa Rica), is a country in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the no ...
to the west,
Colombia Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
to the southeast, the
Caribbean Sea The Caribbean Sea ( es, Mar Caribe; french: Mer des Caraïbes; ht, Lanmè Karayib; jam, Kiaribiyan Sii; nl, Caraïbische Zee; pap, Laman Karibe) is a sea of the Atlantic Ocean in the tropics of the Western Hemisphere. It is bounded by Mexico ...
to the north, and the
Pacific Ocean The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean (or, depending on definition, to Antarctica) in the south, and is bounded by the continen ...
to the south. Its capital and largest city is
Panama City Panama City ( es, Ciudad de Panamá, links=no; ), also known as Panama (or Panamá in Spanish), is the capital and largest city of Panama. It has an urban population of 880,691, with over 1.5 million in its metropolitan area. The city is locat ...
, whose
metropolitan area A metropolitan area or metro is a region that consists of a densely populated urban agglomeration and its surrounding territories sharing industries, commercial areas, transport network, infrastructures and housing. A metro area usually com ...
is home to nearly half the country's million people. Panama was inhabited by indigenous tribes before Spanish colonists arrived in the 16th century. It broke away from
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
in 1821 and joined the Republic of
Gran Colombia Gran Colombia (, "Great Colombia"), or Greater Colombia, officially the Republic of Colombia (Spanish: ''República de Colombia''), was a state that encompassed much of northern South America and part of southern Central America from 1819 to 18 ...
, a union of Nueva Granada,
Ecuador Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ''Eku ...
, and
Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
. After Gran Colombia dissolved in 1831, Panama and Nueva Granada eventually became the Republic of Colombia. With the backing of the United States, Panama seceded from Colombia in 1903, allowing the construction of the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
to be completed by the
United States Army Corps of Engineers , colors = , anniversaries = 16 June (Organization Day) , battles = , battles_label = Wars , website = , commander1 = ...
between 1904 and 1914. The 1977
Torrijos–Carter Treaties The Torrijos–Carter Treaties ( es, link=no, Tratados Torrijos-Carter) are two treaties signed by the United States and Panama in Washington, D.C. on September 7, 1977, which superseded the Hay–Bunau-Varilla Treaty of 1903. The treaties guara ...
agreed to transfer the canal from the United States to Panama on December 31, 1999. The surrounding territory was first returned in 1979. Revenue from canal tolls continues to represent a significant portion of Panama's
GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
, although commerce, banking, and tourism are major and growing sectors. It is regarded as having a
high-income economy A high-income economy is defined by the World Bank as a nation with a gross national income per capita of US$12,696 or more in 2020, calculated using the Atlas method. While the term "high-income" is often used interchangeably with " First Worl ...
. In 2019 Panama ranked 57th in the world in terms of the
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, whi ...
. In 2018, Panama was ranked the seventh-most competitive economy in Latin America, according to the
World Economic Forum The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
's Global Competitiveness Index. Covering around 40 percent of its land area, Panama's
jungle A jungle is land covered with dense forest and tangled vegetation, usually in tropical climates. Application of the term has varied greatly during the past recent century. Etymology The word ''jungle'' originates from the Sanskrit word ''ja ...
s are home to an abundance of tropical plants and animals – some of them found nowhere else on earth. Panama is a founding member of the
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
and other international organizations such as
OAS OAS or Oas may refer to: Chemistry * O-Acetylserine, amino-acid involved in cysteine synthesis Computers * Open-Architecture-System, the main user interface of Wersi musical keyboards * OpenAPI Specification (originally Swagger Specification) ...
,
LAIA Laia may refer to: People * Laia (given name), including a list of people * Francisca Laia (born 1994), Portuguese sprint canoeist * Bu Laia, Hawaiian comedian Shawn Kaui Hill * Laia people, an indigenous Australian people of the state of Quee ...
, G77,
WHO Who or WHO may refer to: * Who (pronoun), an interrogative or relative pronoun * Who?, one of the Five Ws in journalism * World Health Organization Arts and entertainment Fictional characters * Who, a creature in the Dr. Seuss book '' Horton He ...
, and NAM.


Etymology

The definite origin of the name ''Panama'' is unknown. There are several theories. One states that the country was named after a commonly found species of tree (''
Sterculia apetala ''Sterculia apetala'', commonly known as the Panama tree, camoruco, manduvi tree or anacagüita, is a species of flowering plants in the family Malvaceae. It is found in Central and South America, as well as the Caribbean islands. ''Sterculia ape ...
'', the Panama tree). Another states that the first settlers arrived in Panama in August, when butterflies are abundant, and that the name means "many butterflies" in one or several of the indigenous Amerindian languages that were spoken in the territory prior to
Spanish colonization The Spanish Empire ( es, link=no, Imperio español), also known as the Hispanic Monarchy ( es, link=no, Monarquía Hispánica) or the Catholic Monarchy ( es, link=no, Monarquía Católica) was a colonial empire governed by Spain and its prede ...
. Another theory states that the word is a
castilianization Hispanicization ( es, hispanización) refers to the process by which a place or person becomes influenced by Hispanic culture or a process of cultural and/or linguistic change in which something non-Hispanic becomes Hispanic. Hispanicization is i ...
of the
Kuna language The Kuna language (formerly Cuna, and in the language itself Guna), spoken by the Kuna people of Panama and Colombia, belongs to the Chibchan language family. History The Kuna were living in what is now Northern Colombia and the Darién Provin ...
word "''bannaba''" which means "distant" or "far away". A commonly relayed legend in Panama is that there was a fishing village that bore the name "Panamá", which purportedly meant "an abundance of fish", when the Spanish colonizers first landed in the area. The exact location of the village is unknown. The legend is usually corroborated by Captain Antonio Tello de Guzmán's diary entries, who reports landing at an unnamed village while exploring the Pacific coast of Panama in 1515; he only describes the village as a "same small indigenous fishing town". In 1517, Don
Gaspar de Espinosa Gaspar de Espinosa y Luna (Medina de Rioseco, Spain, c. 1484 - Cuzco, Peru, 14 February 1537) was a Spanish explorer, conquistador and politician. He participated in the expedition of Pedro Arias Dávila to Darién and was appointed mayor of Sant ...
, a Spanish lieutenant, decided to settle a post in the same location Guzmán described. In 1519,
Pedro Arias Dávila Pedro Arias de Ávila (1440 – March 6, 1531) (often Pedrarias Dávila) was a Spanish soldier and colonial administrator. He led the first great Spanish expedition to the mainland of the New World. There he served as governor of Panama (1514 ...
decided to establish the Spanish Empire's Pacific port at the site. The new settlement replaced
Santa María la Antigua del Darién Santa María la Antigua del Darién—turned into Dariena in the Latin of Decades of the New World, De Orbo Novo—was a Spanish colonization of the Americas, Spanish colonial town founded in 1510 by Vasco Núñez de Balboa, located in present-d ...
, which had lost its function within the Crown's global plan after the Spanish exploitation of the riches in the Pacific began. The official definition and origin of the name as promoted by Panama's Ministry of Education is the "abundance of fish, trees and butterflies". This is the usual description given in social studies textbooks.


History

At the time of the arrival of the Spanish in the 16th century, the known inhabitants of Panama included the Cuevas and the Coclé tribes. These people have nearly disappeared, as they had no immunity from European infectious diseases.


Pre-Columbian period

The Isthmus of Panama was formed about three million years ago when the land bridge between North and South America finally became complete, and plants and animals gradually crossed it in both directions. The existence of the
isthmus An isthmus (; ; ) is a narrow piece of land connecting two larger areas across an expanse of water by which they are otherwise separated. A tombolo is an isthmus that consists of a spit or bar, and a strait is the sea counterpart of an isthmu ...
affected the dispersal of people, agriculture and technology throughout the American continent from the appearance of the first hunters and collectors to the era of villages and cities.Mayo, J. (2004). ''La Industria prehispánica de conchas marinas en Gran Coclé'', Panamá. Diss. U Complutense de Madrid, pp. 9–10. The earliest discovered artifacts of
indigenous peoples Indigenous peoples are culturally distinct ethnic groups whose members are directly descended from the earliest known inhabitants of a particular geographic region and, to some extent, maintain the language and culture of those original people ...
in Panama include Paleo-Indian
projectile point In North American archaeological terminology, a projectile point is an object that was hafted to a weapon that was capable of being thrown or projected, such as a javelin, dart, or arrow. They are thus different from weapons presumed to have ...
s. Later central Panama was home to some of the first
pottery Pottery is the process and the products of forming vessels and other objects with clay and other ceramic materials, which are fired at high temperatures to give them a hard and durable form. Major types include earthenware, stoneware and por ...
-making in the Americas, for example the cultures at Monagrillo, which date back to 2500–1700 BC. These evolved into significant populations best known through their spectacular burials (dating to c. 500–900 AD) at the Monagrillo
archaeological site An archaeological site is a place (or group of physical sites) in which evidence of past activity is preserved (either prehistoric or historic or contemporary), and which has been, or may be, investigated using the discipline of archaeology an ...
, and their beautiful
Gran Coclé Gran Coclé is an archaeological culture area of the so-called Intermediate Area in pre-Columbian Central America. The area largely coincides with the modern-day Panamanian province of Coclé, and consisted of a number of identifiable native c ...
style polychrome pottery. The monumental
monolith A monolith is a geological feature consisting of a single massive stone or rock, such as some mountains. For instance, Savandurga mountain is a monolith mountain in India. Erosion usually exposes the geological formations, which are often ma ...
ic sculptures at the
Barriles Barriles (known also as ''Sitio Barriles'' or by the designation BU-24), is one of the most famous archaeological sites in Panama. It is located in the highlands of the Chiriquí Province of Western Panama at 1200 meters above sea level. It is sev ...
(Chiriqui) site are also important traces of these ancient isthmian cultures. Before Europeans arrived Panama was widely settled by
Chibchan The Chibchan languages (also Chibchan, Chibchano) make up a language family indigenous to the Isthmo-Colombian Area, which extends from eastern Honduras to northern Colombia and includes populations of these countries as well as Nicaragua, Costa ...
,
Chocoan The Choco languages (also Chocoan, Chocó, Chokó) are a small family of Native American languages spread across Colombia and Panama. Family division Choco consists of six known branches, all but two of which are extinct. *The Emberá langu ...
, and Cueva peoples. The largest group were the Cueva (whose specific language affiliation is poorly documented). The size of the
indigenous Indigenous may refer to: *Indigenous peoples *Indigenous (ecology), presence in a region as the result of only natural processes, with no human intervention *Indigenous (band), an American blues-rock band *Indigenous (horse), a Hong Kong racehorse ...
population of the isthmus at the time of European colonization is uncertain. Estimates range as high as two million people, but more recent studies place that number closer to 200,000. Archaeological finds and testimonials by early European explorers describe diverse native isthmian groups exhibiting cultural variety and suggesting people developed by regular regional routes of commerce. When Panama was colonized, the indigenous peoples fled into the forest and nearby islands. Scholars believe that
infectious disease An infection is the invasion of tissues by pathogens, their multiplication, and the reaction of host tissues to the infectious agent and the toxins they produce. An infectious disease, also known as a transmissible disease or communicable dise ...
was the primary cause of the population decline of American natives. The indigenous peoples had no
acquired immunity The adaptive immune system, also known as the acquired immune system, is a subsystem of the immune system that is composed of specialized, systemic cells and processes that eliminate pathogens or prevent their growth. The acquired immune system ...
to diseases such as
smallpox Smallpox was an infectious disease caused by variola virus (often called smallpox virus) which belongs to the genus Orthopoxvirus. The last naturally occurring case was diagnosed in October 1977, and the World Health Organization (WHO) c ...
which had been chronic in Eurasian populations for centuries.


Conquest to 1799

Rodrigo de Bastidas Rodrigo de Bastidas (; Triana, Seville, Andalusia, c. 1465 – Santiago de Cuba, Cuba, 28 July 1527) was a Spanish conquistador and explorer who mapped the northern coast of South America, discovered Panama, and founded the city of Santa Marta. ...
sailed westward from
Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
in 1501 in search of gold, and became the first European to explore the isthmus of Panama. A year later,
Christopher Columbus Christopher Columbus * lij, Cristoffa C(or)ombo * es, link=no, Cristóbal Colón * pt, Cristóvão Colombo * ca, Cristòfor (or ) * la, Christophorus Columbus. (; born between 25 August and 31 October 1451, died 20 May 1506) was a ...
visited the isthmus, and established a short-lived settlement in the Darien.
Vasco Núñez de Balboa Vasco Núñez de Balboa (; c. 1475around January 12–21, 1519) was a Spanish 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 ...
's tortuous trek from the Atlantic to the Pacific in 1513 demonstrated that the isthmus was indeed the path between the seas, and Panama quickly became the crossroads and marketplace of Spain's empire in the
New World The term ''New World'' is often used to mean the majority of Earth's Western Hemisphere, specifically the Americas."America." ''The Oxford Companion to the English Language'' (). McArthur, Tom, ed., 1992. New York: Oxford University Press, p. 3 ...
. King Ferdinand II assigned
Pedro Arias Dávila Pedro Arias de Ávila (1440 – March 6, 1531) (often Pedrarias Dávila) was a Spanish soldier and colonial administrator. He led the first great Spanish expedition to the mainland of the New World. There he served as governor of Panama (1514 ...
as Royal Governor. He arrived in June 1514 with a 19 vessels and 1,500 men. In 1519, Dávila founded
Panama City Panama City ( es, Ciudad de Panamá, links=no; ), also known as Panama (or Panamá in Spanish), is the capital and largest city of Panama. It has an urban population of 880,691, with over 1.5 million in its metropolitan area. The city is locat ...
. Gold and silver were brought by ship from South America, hauled across the isthmus, and loaded aboard ships for Spain. The route became known as the Camino Real, or Royal Road, although it was more commonly known as Camino de Cruces (Road of Crosses) because of the number of gravesites along the way. Panama was under Spanish rule for almost 300 years (1538–1821), and became part of the
Viceroyalty of Peru The Viceroyalty of Peru ( es, Virreinato del Perú, links=no) was a Spanish imperial provincial administrative district, created in 1542, that originally contained modern-day Peru and most of the Spanish Empire in South America, governed from ...
, along with all other Spanish possessions in South America. From the outset, Panamanian identity was based on a sense of "geographic destiny", and Panamanian fortunes fluctuated with the geopolitical importance of the isthmus. The colonial experience spawned Panamanian nationalism and a racially complex and highly stratified society, the source of internal conflicts that ran counter to the unifying force of nationalism. In 1538 the Real Audiencia of Panama was established, initially with
jurisdiction Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels. Jur ...
from Nicaragua to
Cape Horn Cape Horn ( es, Cabo de Hornos, ) is the southernmost headland of the Tierra del Fuego archipelago of southern Chile, and is located on the small Hornos Island. Although not the most southerly point of South America (which are the Diego Ramírez ...
, until the conquest of Peru. A Real Audiencia was a judicial district that functioned as an appeals court. Each audiencia had an ''
oidor An ''oidor'' () was a judge of the Royal ''Audiencias'' and ''Chancillerías'', originally courts of Kingdom of Castile, which became the highest organs of justice within the Spanish Empire. The term comes from the verb ''oír'', "to hear," referr ...
'' (Spanish: hearer, a judge). Spanish authorities had little control over much of the territory of Panama. Large sections managed to resist conquest and missionization until very late in the colonial era. Because of this, indigenous people of the area were often referred to as "indios de guerra" (war Indians) who resisted Spanish attempts to conquer them or missionize them. However, Panama was enormously important to Spain strategically because it was the easiest way to transship silver mined in Peru to Europe. Silver cargoes were landed at Panama and then taken overland to
Portobello Portobello, Porto Bello, Porto Belo, Portabello, or Portabella may refer to: Places Brazil * Porto Belo Ireland * Portobello, Dublin * Cathal Brugha Barracks, Dublin formerly ''Portobello Barracks'' New Zealand * Portobello, New Zealand, on Ot ...
or Nombre de Dios on the Caribbean side of the isthmus for further shipment. Asides from the European route, there was also an Asian-American route, which led to traders and adventurers carrying silver from
Peru , image_flag = Flag of Peru.svg , image_coat = Escudo nacional del Perú.svg , other_symbol = Great Seal of the State , other_symbol_type = Seal (emblem), National seal , national_motto = "Fi ...
going through Panama to reach Acapulco, Mexico before sailing to Manila, Philippines using the famed
Manila Galleon fil, Galyon ng Maynila , english_name = Manila Galleon , duration = From 1565 to 1815 (250 years) , venue = Between Manila and Acapulco , location = New Spain (Spanish Empire) ...
s. In 1579, the royal monopoly Acapulco, Mexico; had with trading with; Manila, Philippines; was relaxed and Panama was assigned as another port that was able to trade directly with Asia. Because of incomplete Spanish control, the Panama route was vulnerable to attack from pirates (mostly Dutch and English), and from "new world" Africans called cimarrons who had freed themselves from enslavement and lived in communes or ''palenques'' around the Camino Real in Panama's Interior, and on some of the islands off Panama's Pacific coast. One such famous community amounted to a small kingdom under
Bayano Bayano, also known as Ballano or Vaino, was an African enslaved by Spaniards who led the biggest slave revolts of 16th century Panama. Captured from the Yoruba community in West Africa, it has been argued that his name means ''idol''. Different ...
, which emerged in the 1552 to 1558. Sir
Francis Drake Sir Francis Drake ( – 28 January 1596) was an English explorer, sea captain, privateer, slave trader, naval officer, and politician. Drake is best known for his circumnavigation of the world in a single expedition, from 1577 to 1580 (t ...
's famous raids on Panama in 1572–73 and
John Oxenham John Oxenham ( "John Oxnam", died ) was the first non-Spanish European explorer to cross the Isthmus of Panama in 1575, climbing the coastal cordillera to get to the Pacific Ocean, then referred to by the Spanish as the ''Mar del Sur'' ('Southern ...
's crossing to the
Pacific Ocean The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean (or, depending on definition, to Antarctica) in the south, and is bounded by the continen ...
were aided by Panama cimarrons, and Spanish authorities were only able to bring them under control by making an alliance with them that guaranteed their freedom in exchange for military support in 1582. 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 of regional or national identity within Panama well before the rest of the colonies. The end of the
encomienda The ''encomienda'' () was a Spanish labour system that rewarded conquerors with the labour of conquered non-Christian peoples. The labourers, in theory, were provided with benefits by the conquerors for whom they laboured, including military ...
system in Azuero, however, sparked the conquest of
Veraguas Veraguas () is a province of Panama, located in the centre-west of the country. The capital is the city of Santiago de Veraguas. It is the only Panamanian province to border both the Atlantic and Pacific oceans. It covers an area of 10,587.6&nb ...
in that same year. Under the leadership of Francisco Vázquez, the region of Veraguas passed into Castilian rule in 1558. In the newly conquered region, the old system of encomienda was imposed. On the other hand, the Panamanian movement for independence can be indirectly attributed to the abolition of the encomienda system in the
Azuero Peninsula Azuero Peninsula ( es, Península de Azuero) is a large peninsula in southern Panama. It is surrounded by the Pacific Ocean in the south; the Pacific and Gulf of Montijo to the west, and by the Gulf of Panama in the east. The peninsula is effectiv ...
, set forth by the Spanish Crown, in 1558 because of repeated protests by locals against the mistreatment of the native population. In its stead, a system of medium and smaller-sized landownership was promoted, thus taking away the power from the large landowners and into the hands of medium and small-sized proprietors. Panama was the site of the ill-fated
Darien scheme The Darien scheme was an unsuccessful attempt, backed largely by investors of the Kingdom of Scotland, to gain wealth and influence by establishing ''New Caledonia'', a colony on the Isthmus of Panama, in the late 1690s. The plan was for the co ...
, 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 Union commonly refers to: * Trade union, an organization of workers * Union (set theory), in mathematics, a fundamental operation on sets Union may also refer to: Arts and entertainment Music * Union (band), an American rock group ** ''Un ...
of England and Scotland in 1707. In 1671, the
privateer A privateer is a private person or ship that engages in maritime warfare under a commission of war. Since robbery under arms was a common aspect of seaborne trade, until the early 19th century all merchant ships carried arms. A sovereign or deleg ...
Henry Morgan Sir Henry Morgan ( cy, Harri Morgan; – 25 August 1688) was a privateer, plantation owner, and, later, Lieutenant Governor of Jamaica. From his base in Port Royal, Jamaica, he raided settlements and shipping on the Spanish Main, becoming wea ...
, licensed by the English government, sacked and burned the city of
Panama Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Cos ...
– the second most important city in the Spanish New World at the time. In 1717 the
viceroyalty of New Granada The Viceroyalty of New Granada ( es, Virreinato de Nueva Granada, links=no ) also called Viceroyalty of the New Kingdom of Granada or Viceroyalty of Santafé was the name given on 27 May 1717, to the jurisdiction of the Spanish Empire in norther ...
(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 New Granada's capital,
Santa Fe de Bogotá Santa Claus, also known as Father Christmas, Saint Nicholas, Saint Nick, Kris Kringle, or simply Santa, is a legendary figure originating in Western Christian culture who is said to bring children gifts during the late evening and overnight ...
(the modern capital of
Colombia Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
) proved a greater obstacle than the Spanish crown anticipated as the authority of New Granada was contested by the seniority, closer proximity, and previous ties to the viceroyalty of Lima and even by Panama's own initiative. This uneasy relationship between Panama and Bogotá would persist for centuries. In 1744, Bishop Francisco Javier de Luna Victoria DeCastro 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 permitted ships to round Cape Horn 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 laden-down trek required to get from the one coast to the other.


1800s

As the
Spanish American wars of independence The Spanish American wars of independence (25 September 1808 – 29 September 1833; es, Guerras de independencia hispanoamericanas) were numerous wars in Spanish America with the aim of political independence from Spanish rule during the early ...
were heating up all across Latin America, Panama City was preparing for independence; however, their plans were accelerated by the unilateral Grito de La Villa de Los Santos (Cry From the Town of Saints), issued on November 10, 1821, by the residents of Azuero without backing from Panama City to declare their separation from the Spanish Empire. In both
Veraguas Veraguas () is a province of Panama, located in the centre-west of the country. The capital is the city of Santiago de Veraguas. It is the only Panamanian province to border both the Atlantic and Pacific oceans. It covers an area of 10,587.6&nb ...
and the capital this act was met with disdain, although on differing levels. To Veraguas, it was the ultimate act of treason, while to the capital, it was seen as inefficient and irregular, and furthermore forced them to accelerate their plans. Nevertheless, the Grito was a sign, on the part of the residents of Azuero, of their antagonism toward the independence movement in the capital. Those in the capital region in turn regarded the Azueran movement with contempt, since the separatists in Panama City believed that their counterparts in Azuero were fighting not only for independence from Spain, but also for their right to self-rule apart from Panama City once the Spaniards were gone. It was seen as a risky move on the part of Azuero, which lived in fear of Colonel José Pedro Antonio de Fábrega y de las Cuevas (1774–1841). The colonel was a staunch loyalist and had all of the isthmus' military supplies in his hands. They feared quick retaliation and swift retribution against the separatists. What they had counted on, however, was the influence of the separatists in the capital. Ever since October 1821, when the former Governor General, Juan de la Cruz Murgeón, left the isthmus on a campaign in
Quito Quito (; qu, Kitu), formally San Francisco de Quito, is the capital and largest city of Ecuador, with an estimated population of 2.8 million in its urban area. It is also the capital of the province of Pichincha. Quito is located in a valley o ...
and left a colonel in charge, the separatists had been slowly converting Fábrega to the separatist side. So, by November 10, Fábrega was now a supporter of the independence movement. Soon after the separatist declaration of Los Santos, Fábrega convened every organization in the capital with separatist interests and formally declared the city's support for independence. No military repercussions occurred because of skillful bribing of royalist troops.


Post-colonial Panama

In the 80 years following independence from Spain, Panama was a subdivision of Gran Colombia, after voluntarily joining the country at the end of 1821. The people of the isthmus made over 80 attempts to secede from Colombia. They came close to success in 1831, then again during the
Thousand Days' War The Thousand Days' War ( es, Guerra de los Mil Días) was a civil war fought in Colombia from 17 October 1899 to 21 November 1902, at first between the Colombian Liberal Party, Liberal Party and the government led by the National Party (Colomb ...
of 1899–1902, understood among indigenous Panamanians as a struggle for land rights under the leadership of Victoriano Lorenzo. The US intent to influence the area, especially the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
's construction and control, led to the
separation of Panama from Colombia The separation of Panama from Colombia was formalized on 3 November 1903, with the establishment of the Republic of Panama. From the Independence of Panama from Spain in 1821, Panama had simultaneously declared independence from Spain and joi ...
in 1903 and its establishment as a nation. When the
Senate of Colombia The Senate of the Republic of Colombia ( es, Senado de la República de Colombia) is the upper house of the Congress of Colombia, with the lower house being the House of Representatives. The Senate has 108 members elected for concurrent (non-r ...
rejected the
Hay–Herrán Treaty The Hay–Herrán Treaty was a treaty signed on January 22, 1903, between United States Secretary of State John M. Hay of the United States and Tomás Herrán of Colombia. Had it been ratified, it would have allowed the United States a renewab ...
on January 22, 1903, the United States decided to support and encourage the Panamanian separatist movement. In November 1903 Panama, tacitly supported by the United States, proclaimed its independence and concluded the
Hay–Bunau-Varilla Treaty The Hay–Bunau-Varilla Treaty ( es, Tratado Hay-Bunau Varilla) was a treaty signed on November 18, 1903, by the United States and Panama, which established the Panama Canal Zone and the subsequent construction of the Panama Canal. It was named ...
with the United States without the presence of a single Panamanian. Philippe Bunau-Varilla, a French engineer and lobbyist represented Panama even though Panama's president and a delegation had arrived in New York to negotiate the treaty. The treaty was quickly drafted and signed the night before the Panamanian delegation arrived in Washington. Mr. Bunau-Varilla was in the employ of the French Canal company that had failed and was now bankrupt. The treaty granted rights to the United States "as if it were sovereign" in a
zone Zone or The Zone may refer to: Places Climate and altitude zones * Death zone (originally the lethal zone), altitudes above a certain point where the amount of oxygen is insufficient to sustain human life for an extended time span * Frigid zone, ...
roughly wide and long. In that zone, the US would build a canal, then administer, fortify, and defend it "in perpetuity". In 1914 the United States completed the existing canal. Because of the strategic importance of the canal during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, the US extensively fortified access to it. From 1903 to 1968, Panama was a
constitutional democracy Liberal democracy is the combination of a liberal political ideology that operates under an indirect democratic form of government. It is characterized by elections between multiple distinct political parties, a separation of powers into di ...
dominated by a commercially oriented
oligarchy Oligarchy (; ) is a conceptual form of power structure in which power rests with a small number of people. These people may or may not be distinguished by one or several characteristics, such as nobility, fame, wealth, education, or corporate, r ...
. During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony. The early 1960s saw also the beginning of sustained pressure in Panama for the renegotiation of the Hay–Bunau-Varilla Treaty, including riots that broke out in early 1964, resulting in widespread looting and dozens of deaths, and the evacuation of the American embassy. Amid negotiations for the Robles–Johnson treaty, Panama held elections in 1968. The candidates were:Pizzurno Gelós, Patricia and Celestino Andrés Araúz (1996) ''Estudios sobre el Panamá Republicano (1903–1989)''. Colombia: Manfer S.A. * Dr.
Arnulfo Arias Arnulfo Arias Madrid (15 August 1901 – 10 August 1988) was a Panamanian politician, medical doctor, and writer who served as the President of Panama from 1940 to 1941, again from 1949 to 1951, and finally for 11 days in October 1968. Thro ...
Madrid, Unión Nacional (National Union) * Antonio González Revilla, Democracia Cristiana (Christian Democrats) * Engr. David Samudio, Alianza del Pueblo (People's Alliance), who had the government's support. Arias Madrid was declared the winner of elections that were marked by violence and accusations of fraud against Alianza del Pueblo. On October 1, 1968, Arias Madrid took office as president of Panama, promising to lead a government of "national union" that would end the reigning corruption and pave the way for a new Panama. A week and a half later, on October 11, 1968, the National Guard (Guardia Nacional) ousted Arias and initiated the downward spiral that would culminate with the United States' invasion in 1989. Arias, who had promised to respect the hierarchy of the National Guard, broke the pact and started a large restructuring of the Guard. To preserve the Guard's and his vested interests, Lieutenant Colonel
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Commander of the Panamanian National Guard and military leader of Panama from 1968 to his death in 1981. Torrijos was never officially the president of Panama, ...
Herrera and Major Boris Martínez commanded another military coup against the government. The military justified itself by declaring that Arias Madrid was trying to install a dictatorship, and promised a return to constitutional rule. In the meantime, the Guard began a series of populist measures that would gain support for the coup. Among them were: * Price freezing on food, medicine and other goods until January 31, 1969 * rent level freeze * legalization of the permanence of squatting families in boroughs surrounding the historic site of Panama Viejo Parallel to this, the military began a policy of repression against the opposition, who were labeled communists. The military appointed a Provisional Government Junta that was to arrange new elections. However, the National Guard would prove to be very reluctant to abandon power and soon began calling itself El Gobierno Revolucionario (The Revolutionary Government).


Post-1970

Under
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Commander of the Panamanian National Guard and military leader of Panama from 1968 to his death in 1981. Torrijos was never officially the president of Panama, ...
's control, the military transformed the political and economic structure of the country, initiating massive coverage of social security services and expanding public education. The constitution was changed in 1972. To reform the constitution, the military created a new organization, the Assembly of Corregimiento Representatives, which replaced the National Assembly. The new assembly, also known as the Poder Popular (Power of the People), was composed of 505 members selected by the military with no participation from political parties, which the military had eliminated. The new constitution proclaimed
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Commander of the Panamanian National Guard and military leader of Panama from 1968 to his death in 1981. Torrijos was never officially the president of Panama, ...
as the Maximum Leader of the Panamanian Revolution, and conceded him unlimited power for six years, although, to keep a façade of constitutionality,
Demetrio B. Lakas Demetrio Basilio Lakas Bahas (August 29, 1925 in Colón, PanamaNovember 2, 1999 in Panama City) was the 27th President of Panama from December 19, 1969 to October 11, 1978. Early life and education The son of Greek immigrants, Lakas was born in ...
was appointed president for the same period. In 1981, Torrijos died in a plane crash. Torrijos' death altered the tone of Panama's political evolution. Despite the 1983 constitutional amendments which proscribed a political role for the military, the
Panama Defense Force The Panamanian Public Forces ( es, Fuerza Pública de la República de Panamá) are the national security forces of Panama. Panama is the second country in Latin America (the other being Costa Rica) to permanently abolish standing armies, with Pa ...
(PDF), as they were then known, continued to dominate Panamanian political life. By this time, General
Manuel Antonio Noriega Manuel Antonio Noriega Moreno (; February 11, 1934 – May 29, 2017) was a Panamanian dictator, politician and military officer who was the ''de facto'' ruler of Panama from 1983 to 1989. An authoritarian ruler who amassed a personal f ...
was firmly in control of both the PDF and the civilian government. In the 1984 elections, the candidates were: * Nicolás Ardito Barletta Vallarino, supported by the military in a union called UNADE * Arnulfo Arias Madrid, for the opposition union ADO * ex-General
Rubén Darío Paredes Rubén Darío Paredes del Río (born 11 August 1933) is a Panamanian army officer who was the military ruler of Panama from 1982 to 1983. Colonel Paredes came to power after the displacement of Colonel Florencio Flores, due to the instability o ...
, who had been forced to an early retirement by Noriega, running for the Partido Nacionalista Popular (PAP; "Popular Nationalist Party") * Carlos Iván Zúñiga, running for the Partido Acción Popular (PAPO; Popular Action Party) Barletta was declared the winner of elections that had been considered to be fraudulent. Barletta inherited a country in economic ruin and hugely indebted to the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
and the
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
. Amid the economic crisis and Barletta's efforts to calm the country's creditors, street protests arose, and so did military repression. Meanwhile, Noriega's regime had fostered a well-hidden criminal economy that operated as a parallel source of income for the military and their allies, providing revenues from drugs and
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
. Toward the end of the military dictatorship, a new wave of Chinese migrants arrived on the isthmus in the hope of migrating to the United States. The smuggling of Chinese became an enormous business, with revenues of up to 200 million dollars for Noriega's regime (see Mon 167). The military dictatorship assassinated or tortured more than one hundred Panamanians and forced at least a hundred more dissidents into exile. (see Zárate 15). Noriega's regime was supported by the United States and it began playing a double role in Central America. While the Contadora group, an initiative launched by the foreign ministers of various Latin American nations including Panama's, conducted diplomatic efforts to achieve peace in the region, Noriega supplied Nicaraguan
Contras The Contras were the various U.S.-backed and funded right-wing rebel groups that were active from 1979 to 1990 in opposition to the Marxist Sandinista Junta of National Reconstruction Government in Nicaragua, which came to power in 1979 fol ...
and other guerrillas in the region with weapons and ammunition on behalf of the CIA. On June 6, 1987, the recently retired Colonel Roberto Díaz Herrera, resentful that Noriega had broken the agreed-upon "Torrijos Plan" of succession that would have made him the chief of the military after Noriega, decided to denounce the regime. He revealed details of electoral fraud, accused Noriega of planning Torrijos's death and declared that Torrijos had received 12 million dollars from the Shah of Iran for giving the exiled Iranian leader asylum. He also accused Noriega of the assassination by decapitation of then-opposition leader, Dr.
Hugo Spadafora Hugo Spadafora Franco (September 6, 1940 – September 13, 1985) was an Italian and Panamanian physician and guerrilla fighter in Guinea-Bissau and Nicaragua. He criticized the military in Panama, which led to his murder by the government of Ma ...
. On the night of June 9, 1987, the Cruzada Civilista ("Civic Crusade") was created and began organizing actions of civil disobedience. The Crusade called for a general strike. In response, the military suspended constitutional rights and declared a state of emergency in the country. On July 10, the Civic Crusade called for a massive demonstration that was violently repressed by the "Dobermans", the military's special riot control unit. That day, later known as El Viernes Negro ("Black Friday"), left many people injured and killed. United States President
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
began a series of sanctions against the military regime. The United States froze economic and military assistance to Panama in the middle of 1987 in response to the domestic political crisis in Panama and an attack on the US embassy. The sanctions failed to oust Noriega, but severely hurt Panama's economy. Panama's gross domestic product (GDP) declined almost 25 percent between 1987 and 1989.Acosta, Coleen (October 24, 2008)
"Iraq: a Lesson from Panama Imperialism and Struggle for Sovereignty"
''Journals of the Stanford Course on Prejudice and Poverty''.
On February 5, 1988, General Manuel Antonio Noriega was accused of drug trafficking by federal juries in Tampa and Miami.
Human Rights Watch Human Rights Watch (HRW) is an international non-governmental organization, headquartered in New York City, that conducts research and advocacy on human rights. The group pressures governments, policy makers, companies, and individual human r ...
wrote in its 1989 report: "Washington turned a blind eye to abuses in Panama for many years until concern over drug trafficking prompted indictments of the general oriegaby two grand juries in Florida in February 1988"."Panama"
. ''Human Rights Watch World Report 1989''. hrw.org
In April 1988, US President Ronald Reagan invoked the
International Emergency Economic Powers Act The International Emergency Economic Powers Act (IEEPA), Title II of , is a United States federal law authorizing the president to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary t ...
, freezing Panamanian government assets in all US organizations. In May 1989 Panamanians voted overwhelmingly for the anti-Noriega candidates. The Noriega regime promptly annulled the election and embarked on a new round of repression.


US invasion (1989)

The United States invaded Panama on December 20, 1989, codenamed
Operation Just Cause Operation or Operations may refer to: Arts, entertainment and media * ''Operation'' (game), a battery-operated board game that challenges dexterity * Operation (music), a term used in musical set theory * ''Operations'' (magazine), Multi-Ma ...
. The U.S. stated the operation was "necessary to safeguard the lives of U.S. citizens in Panama, defend democracy and human rights, combat drug trafficking, and secure the neutrality of the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
as required by the
Torrijos–Carter Treaties The Torrijos–Carter Treaties ( es, link=no, Tratados Torrijos-Carter) are two treaties signed by the United States and Panama in Washington, D.C. on September 7, 1977, which superseded the Hay–Bunau-Varilla Treaty of 1903. The treaties guara ...
". The US reported 23 servicemen killed and 324 wounded, with the number of Panamanian soldiers killed estimated at around 450. The estimates for civilians killed in the conflict ranges from 200 to 4,000. The United Nations put the Panamanian civilian death toll at 500, Americas Watch estimated 300, the United States gave a figure of 202 civilians killed and former US attorney general
Ramsey Clark William Ramsey Clark (December 18, 1927 – April 9, 2021) was an American lawyer, activist, and federal government official. A progressive, New Frontier liberal, he occupied senior positions in the United States Department of Justice under Pres ...
estimated 4,000 deaths. It represented the largest United States military operation since the Vietnam War. The number of US civilians (and their dependents), who had worked for the
Panama Canal Commission The Panama Canal Zone ( es, Zona del Canal de Panamá), also simply known as the Canal Zone, was an unincorporated territory of the United States, located in the Isthmus of Panama, that existed from 1903 to 1979. It was located within the terri ...
and the US military, and were killed by the Panamanian Defense Forces, has never been fully disclosed. On December 29, the
United Nations General Assembly The United Nations General Assembly (UNGA or GA; french: link=no, Assemblée générale, AG) is one of the six principal organs of the United Nations (UN), serving as the main deliberative, policymaking, and representative organ of the UN. Curr ...
approved a resolution calling the intervention in Panama a "flagrant violation of international law and of the independence, sovereignty and territorial integrity of the States". A similar resolution was vetoed in the
Security Council The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations (UN) and is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, and ...
by the United States, the United Kingdom, and France. Noriega was captured and flown to Miami to be tried. The conflict ended on January 31, 1990. The urban population, many living below the poverty level, was greatly affected by the 1989 intervention. As pointed out in 1995 by a UN Technical Assistance Mission to Panama, the fighting displaced 20,000 people. The most heavily affected district was the
El Chorrillo El Chorrillo is a corregimiento within Panama City, in Panamá District, Panamá Province, Panama with a population of 18,302 as of 2010. History It was founded April 29, 1915, and was originally populated by immigrants working on the construct ...
area of Panama City, where several blocks of apartments were completely destroyed. The economic damage caused by the fighting has been estimated at between 1.5 and 2 billion dollars. Most
Panamanians Panamanians ( Spanish: ''Panameños'') are people identified with Panama, a transcontinental country in Central America (a region within North America) and South America, whose connection may be residential, legal, historical, or cultural. For ...
supported the intervention.


Post-intervention era

Panama's Electoral Tribunal moved quickly to restore civilian constitutional government, reinstated the results of the May 1989 election on December 27, 1989, and confirmed the victory of President
Guillermo Endara Guillermo David Endara Galimany (May 12, 1936 – September 28, 2009) was a Panamanian politician who served as the President of Panama from 1989 to 1994. Raised in a family allied to Panameñista Party founder Arnulfo Arias, Endara attended ...
and Vice Presidents
Guillermo Ford Guillermo "Billy" Ford Boyd (November 11, 1936 – March 19, 2011) was the Second Vice President of Panama. He was one of the running mates of presidential candidate Guillermo Endara during the 1989 Panamanian election campaign. The election ...
and Ricardo Arias Calderón. During its five-year term, the often-fractious government struggled to meet the public's high expectations. Its new police force was a major improvement over its predecessor but was not fully able to deter crime.
Ernesto Pérez Balladares Ernesto Pérez Balladares González-Revilla (born June 29, 1946), nicknamed ''El Toro'' ("The Bull"), is a Panamanian politician who was the President of Panama between 1994 and 1999. Educated in the United States, Pérez Balladares worked as ...
was sworn in as president on September 1, 1994, after an internationally monitored election campaign. Balladares ran as the candidate for a three-party coalition dominated by the
Democratic Revolutionary Party The Democratic Revolutionary Party ( es, Partido Revolucionario Democrático, PRD) is a political party in Panama founded in 1979 by General Omar Torrijos. It is generally described as being positioned on the centre-left. History Since its creat ...
(PRD), the erstwhile political arm of military dictatorships. Perez Balladares worked skillfully during the campaign to rehabilitate the PRD's image, emphasizing the party's populist Torrijos roots rather than its association with Noriega. He won the election with only 33 percent of the vote when the major non-PRD forces splintered into competing factions. His administration carried out economic reforms and often worked closely with the US on implementation of the Canal treaties. On September 1, 1999,
Mireya Moscoso Mireya Elisa Moscoso Rodríguez de Arias (born July 1, 1946) is a Panamanian politician who served as the President of Panama from 1999 to 2004. She is the country's first female president. Born into a rural family, Moscoso became active in t ...
, the widow of former President Arnulfo Arias Madrid, took office after defeating PRD candidate Martín Torrijos, son of
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Commander of the Panamanian National Guard and military leader of Panama from 1968 to his death in 1981. Torrijos was never officially the president of Panama, ...
, in a free and fair election. During her administration, Moscoso attempted to strengthen social programs, especially for child and youth development, protection, and general welfare. Moscoso's administration successfully handled the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
transfer and was effective in the administration of the Canal. The PRD's Martin Torrijos won the presidency and a legislative majority in the National Assembly in 2004. Torrijos ran his campaign on a platform of, among other pledges, a "zero tolerance" for corruption, a problem endemic to the Moscoso and Perez Balladares administrations. After taking office, Torrijos passed a number of laws which made the government more transparent. He formed a National Anti-Corruption Council whose members represented the highest levels of government and civil society, labor organizations, and religious leadership. In addition, many of his closest Cabinet ministers were non-political technocrats known for their support for the Torrijos government's anti-corruption aims. Despite the Torrijos administration's public stance on corruption, many high-profile cases, particularly involving political or business elites, were never acted upon. Conservative supermarket magnate
Ricardo Martinelli Ricardo Alberto Martinelli Berrocal (born March 11, 1951) is a Panamanian politician and businessman who was the 36th president of Panama from 2009 to 2014. Early life Born in Panama City, Ricardo Martinelli is the son of Ricardo Martinell ...
was elected to succeed Martin Torrijos with a landslide victory in the May
2009 Panamanian general election General elections were held in Panama on May 3, 2009. Presidential race Balbina Herrera was the Democratic Revolutionary Party (PRD) candidate for President of Panama. She had previously served as President of the National Assembly of Panama ...
. Martinelli's business credentials drew voters worried by slowing growth during the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. Standing for the four-party opposition Alliance for Change, Martinelli gained 60 percent of the vote, against 37 percent for the candidate of the governing left-wing Democratic Revolutionary Party. On May 4, 2014, Vice President
Juan Carlos Varela Juan Carlos Varela Rodríguez (; born 13 December 1963) is a Panamanian businessman and former politician who served as the President of Panama from 2014 to 2019. Varela was Vice President of Panama from 2009 to 2014, and Minister of Foreign ...
, candidate of the Partido Panamenista (Panamanian Party) won the 2014
presidential election A presidential election is the election of any head of state whose official title is President. Elections by country Albania The president of Albania is elected by the Assembly of Albania who are elected by the Albanian public. Chile The pre ...
with over 39 percent of the votes, against the party of his former political partner Ricardo Martinelli, Cambio Democrático, and their candidate
José Domingo Arias José Domingo Arias Villalaz is a Panamanian economist and politician, and was an unsuccessful candidate in the 2014 presidential elections. Background and early life José Domingo Arias was born on 26 October 1963 in Panama City.Laurentino Cortizo Laurentino "Nito" Cortizo Cohen (; born 30 January 1953) is a Panamanian politician who has served as the President of Panama since 2019. Cortizo is the former President of the National Assembly and Minister of Agricultural and Livestock Devel ...
took possession of the presidency. Cortizo was the candidate of
Democratic Revolution Party The Party of the Democratic Revolution (PRD, es, Partido de la Revolución Democrática, ) is a social democratic political party in Mexico. The PRD originated from the Democratic Current, a political faction formed in 1986 from the Institut ...
(PRD) in the May 2019
presidential election A presidential election is the election of any head of state whose official title is President. Elections by country Albania The president of Albania is elected by the Assembly of Albania who are elected by the Albanian public. Chile The pre ...
.


Geography

Panama is located in Central America, bordering both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. It mostly lies between latitudes and 10°N, and longitudes 77° and 83°W (a small area lies west of 83°). Its location on the Isthmus of Panama is strategic. By 2000, Panama controlled the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
which connects the Atlantic Ocean and the Caribbean Sea to the north of the Pacific Ocean. Panama's total area is . The dominant feature of Panama's geography is the central spine of mountains and hills that forms the
continental divide A continental divide is a drainage divide on a continent such that the drainage basin on one side of the divide feeds into one ocean or sea, and the basin on the other side either feeds into a different ocean or sea, or else is endorheic, not ...
. 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 The Andes, Andes Mountains or Andean Mountains (; ) are the longest continental mountain range in the world, forming a continuous highland along the western edge of South America. The range is long, wide (widest between 18°S – 20°S l ...
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. The mountain range of the divide is called the
Cordillera de Talamanca The Cordillera de Talamanca is a mountain range that lies in the southeast half of Costa Rica and the far west of Panama. Much of the range and the area around it is included in La Amistad International Park, which also is shared between the two ...
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 Panama 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. The highest point in the country is the
Volcán Barú The Volcán Barú (also Volcán de Chiriquí) is an active stratovolcano and the tallest mountain in Panama, at high. It lies about off the border of Costa Rica. It is also the twelfth highest peak in Central America. Due to its height and the ...
, which rises to . A nearly impenetrable jungle forms the
Darién Gap The Darién Gap (, , es, Tapón del Darién , ) is a geographic region between the North and South American continents within Central America, consisting of a large watershed, forest, and mountains in Panama's Darién Province and the norther ...
between Panama and Colombia where Colombian guerrillas and drug dealers operate and sometimes take
hostages A hostage is a person seized by an abductor in order to compel another party, one which places a high value on the liberty, well-being and safety of the person seized, such as a relative, employer, law enforcement or government to act, or r ...
. This and unrest, and
forest protection Forest protection is a branch of forestry which is concerned with the preservation or improvement of a forest and prevention and control of damage to forest by natural or man made causes like forest fires, plant pests, and adverse climatic cond ...
movements, create a break in the
Pan-American Highway The Pan-American Highway (french: (Auto)route panaméricaine/transaméricaine; pt, Rodovia/Auto-estrada Pan-americana; es, Autopista/Carretera/Ruta Panamericana) is a network of roads stretching across the Americas and measuring about in to ...
, which otherwise forms a complete road from
Alaska Alaska ( ; russian: Аляска, Alyaska; ale, Alax̂sxax̂; ; ems, Alas'kaaq; Yup'ik: ''Alaskaq''; tli, Anáaski) is a state located in the Western United States on the northwest extremity of North America. A semi-exclave of the U.S., ...
to
Patagonia Patagonia () refers to a geographical region that encompasses the southern end of South America, governed by Argentina and Chile. The region comprises the southern section of the Andes Mountains with lakes, fjords, temperate rainforests, and gl ...
. Panama's wildlife is the most diverse in Central America. It is home to many South American species as well as to North American wildlife.


Waterways

Nearly 500 rivers lace Panama's rugged landscape. Mostly unnavigable, many originate as swift highland streams, meander in valleys, and form coastal deltas. However, the Río Chagres (''Chagres River''), located in central Panama, is one of the few wide rivers and a source of
hydroelectric Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined and ...
power. The central part of the river is dammed by the
Gatun Dam The Gatun Dam is a large earthen dam across the Chagres River in Panama, near the town of Gatun. The dam, constructed between 1907 and 1913, is a crucial element of the Panama Canal; it impounds the artificial Gatun Lake, which in turn carries s ...
and forms
Gatun Lake Gatun Lake ( es, Lago Gatún) is a large freshwater artificial lake to the south of Colón, Panama. At approximately above sea level, it forms a major part of the Panama Canal, carrying ships of their transit across the Isthmus of Panama. Gatun ...
, an
artificial lake A reservoir (; from French ''réservoir'' ) is an enlarged lake behind a dam. Such a dam may be either artificial, built to store fresh water or it may be a natural formation. Reservoirs can be created in a number of ways, including contro ...
that constitutes part of the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
. The lake was created by the construction of the Gatun Dam across the Río Chagres between 1907 and 1913. Once created, Gatun Lake was the largest man-made lake in the world, and the dam was the largest earth dam. The river drains northwest into the Caribbean. The Kampia and Madden Lakes (also filled from the Río Chagres) provide hydroelectricity for the area of the former Canal Zone. The Río Chepo, another source of hydroelectric power, is one of the more than 300 rivers emptying into the Pacific. These Pacific-oriented rivers are longer and slower-running than those on the Caribbean side. Their basins are also more extensive. One of the longest is the Río Tuira, which flows into the
Golfo de San Miguel The Bay of San Miguel () is a bay of the Gulf of Panama, located on the Pacific coast of Darién Province in eastern Panama. The bay is located at . It is fed by the Tuira River The Tuira River is located in the Darién Province of easter ...
and is the nation's only river that is navigable by larger vessels.


Harbors

The Caribbean coastline is marked by several natural harbors. However, Cristóbal, at the Caribbean terminus of the canal, had the only important port facilities in the late 1980s. The numerous islands of the Archipiélago de Bocas del Toro, near the Beaches of Costa Rica, provide an extensive natural roadstead and shield the banana port of Almirante. The more than 350
San Blas Islands The San Blas Islands of Panama is an archipelago comprising approximately 365 islands and cays, of which 49 are inhabited. They lie off the north coast of the Isthmus of Panama, east of the Panama Canal. A part of the ''comarca'' (district) Guna ...
near Colombia, are strung out over more than along the sheltered Caribbean coastline. The terminal ports located at each end of the Panama Canal, namely the Port of Cristóbal, Colón and the Port of Balboa, are ranked second and third respectively in Latin America in terms of numbers of containers units ( TEU) handled. The Port of Balboa covers 182 hectares and contains four berths for containers and two multi-purpose berths. In total, the berths are over long with alongside depth of . The Port of Balboa has 18 super post- Panamax and Panamax quay cranes and 44
gantry crane A gantry crane is a crane built atop a gantry, which is a structure used to straddle an object or workspace. They can range from enormous "full" gantry cranes, capable of lifting some of the heaviest loads in the world, to small shop cranes, us ...
s. The Port of Balboa also contains of warehouse space. The Ports of Cristobal (encompassing the container terminals of Panama Ports Cristobal, Manzanillo International Terminal and Colon Container Terminal) handled 2,210,720 TEU in 2009, second only to the
Port of Santos The Port of Santos (in Portuguese: ''Porto de Santos'') is located in the city of Santos, state of São Paulo, Brazil. As of 2006, it is the busiest container port in Latin America. In 2016, it was considered the 39th largest port in the world ...
, Brazil, in Latin America. Excellent deep water ports capable of accommodating large
VLCC An oil tanker, also known as a petroleum tanker, is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers. Crude tankers move large quantities of unrefined cru ...
(Very Large Crude Oil Carriers) are located at
Charco Azul Charco Azul is a bay and port just outside Puerto Armuelles, in the southwest corner of Panama near the border with Costa Rica. It lies just to the east of the Burica Peninsula, and forms part of the larger Gulf of Chiriquí. Charco Azul translat ...
, Chiriquí (Pacific) and
Chiriquí Grande Chiriquí Grande is a corregimiento in Chiriquí Grande District, Bocas del Toro Province, Panama Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spa ...
, Bocas del Toro (Atlantic) near Panama's western border with Costa Rica. The
Trans-Panama pipeline The Trans-Panama Pipeline ( es, Oleoducto Chiriqui Bocas del Toro) is an oil pipeline across Panama near the Costa Rican border from the port of Chiriqui Grande, Bocas del Toro on the Caribbean coast to the port of Charco Azul on the Pacific coa ...
, running across the isthmus, has operated between Charco Azul and Chiriquí Grande since 1979.


Climate

Panama has a tropical climate. Temperatures are uniformly high—as is the relative humidity—and there is little seasonal variation. Diurnal ranges are low; on a typical dry-season day in the capital city, the early morning minimum may be and the afternoon maximum . The temperature seldom exceeds for more than a short time. Temperatures on the Pacific side of the isthmus are somewhat lower than on the Caribbean, and breezes tend to rise after dusk in most parts of the country. Temperatures are markedly cooler in the higher parts of the mountain ranges, and frosts occur in the
Cordillera de Talamanca The Cordillera de Talamanca is a mountain range that lies in the southeast half of Costa Rica and the far west of Panama. Much of the range and the area around it is included in La Amistad International Park, which also is shared between the two ...
in western Panama. Climatic regions are determined less on the basis of temperature than on
rain Rain is water droplets that have condensed from atmospheric water vapor and then fall under gravity. Rain is a major component of the water cycle and is responsible for depositing most of the fresh water on the Earth. It provides water f ...
fall, which varies regionally from less than to more than per year. Almost all of the rain falls during the rainy season, which is usually from April to December, but varies in length from seven to nine months. In general, rainfall is much heavier on the Caribbean than on the Pacific side of the
continental divide A continental divide is a drainage divide on a continent such that the drainage basin on one side of the divide feeds into one ocean or sea, and the basin on the other side either feeds into a different ocean or sea, or else is endorheic, not ...
. The annual average in Panama City is little more than half of that in Colón. Although rainy-season thunderstorms are common, the country is outside the
hurricane belt Hurricane Alley is an area of warm water in the Atlantic Ocean stretching from the west coast of northern Africa to the east coast of Central America and Gulf Coast of the Southern United States. Many hurricanes form within this area. The sea su ...
. Panama is one of three countries in the world to be carbon negative, meaning that it absorbs more
carbon dioxide Carbon dioxide (chemical formula ) is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature. In the air, carbon dioxide is transpar ...
that it releases into the atmosphere. The others are
Bhutan Bhutan (; dz, འབྲུག་ཡུལ་, Druk Yul ), officially the Kingdom of Bhutan,), is a landlocked country in South Asia. It is situated in the Eastern Himalayas, between China in the north and India in the south. A mountainous ...
and
Suriname Suriname (; srn, Sranankondre or ), officially the Republic of Suriname ( nl, Republiek Suriname , srn, Ripolik fu Sranan), is a country on the northeastern Atlantic coast of South America. It is bordered by the Atlantic Ocean to the north ...
.


Biodiversity

Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Although nearly 40% of Panama is still wooded,
deforestation Deforestation or forest clearance is the removal of a forest or stand of trees from land that is then converted to non-forest use. Deforestation can involve conversion of forest land to farms, ranches, or urban use. The most concentrated d ...
is a continuing threat to the rain-drenched woodlands. Tree cover has been reduced by more than 50 percent since the 1940s. Subsistence farming, widely practised from the northeastern jungles to the southwestern grasslands, consists largely of corn, bean, and tuber plots. Mangrove swamps occur along parts of both coasts, with banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied
rain forest Rainforests are characterized by a closed and continuous tree canopy, moisture-dependent vegetation, the presence of epiphytes and lianas and the absence of wildfire. Rainforest can be classified as tropical rainforest or temperate rainforest ...
abuts the swamp on one side of the country and extends to the lower reaches of slopes on the other. Panama had a 2019
Forest Landscape Integrity Index The Forest Landscape Integrity Index (FLII) is an annual global index of forest condition measured by degree of anthropogenic modification. Created by a team of 48 scientists, the FLII, in its measurement of 300m pixels of forest across the globe ...
mean score of 6.37/10, ranking it 78th globally out of 172 countries. In May 2022, in order to increase supply of lower-carbon aviation fuel, the government of Panama and energy companies announced its plan to develop a major and advanced biorefinery of aviation fuel in the country.


Politics

Panama's politics take place in a framework of a presidential representative democratic republic, whereby the
President of Panama This article lists the heads of state of Panama since the short-lived first independence from the Republic of New Granada in 1840 and the final separation from Colombia in 1903. Free State of the Isthmus (1840–1841) Republic of Panama (19 ...
is both
head of state A head of state (or chief of state) is the public persona who officially embodies a state Foakes, pp. 110–11 " he head of statebeing an embodiment of the State itself or representatitve of its international persona." in its unity and l ...
and
head of government The head of government is the highest or the second-highest official in the executive branch of a sovereign state, a federated state, or a self-governing colony, autonomous region, or other government who often presides over a cabinet, a gro ...
, and of a
multi-party system In political science, a multi-party system is a political system in which multiple political parties across the political spectrum run for national elections, and all have the capacity to gain control of government offices, separately or in coal ...
.
Executive power The Executive, also referred as the Executive branch or Executive power, is the term commonly used to describe that part of government which enforces the law, and has overall responsibility for the governance of a state. In political systems ba ...
is exercised by the government.
Legislative power A legislature is an assembly with the authority to make laws for a political entity such as a country or city. They are often contrasted with the executive and judicial powers of government. Laws enacted by legislatures are usually known as p ...
is vested in both the government and the
National Assembly In politics, a national assembly is either a unicameral legislature, the lower house of a bicameral legislature, or both houses of a bicameral legislature together. In the English language it generally means "an assembly composed of the rep ...
. The
judiciary The judiciary (also known as the judicial system, judicature, judicial branch, judiciative branch, and court or judiciary system) is the system of courts that adjudicates legal disputes/disagreements and interprets, defends, and applies the law ...
is independent of the executive and the legislature. National elections are universal for all citizens 18 years and older. National elections for the executive and legislative branches take place every five years. Members of the judicial branch (justices) are appointed by the head of state. Panama's
National Assembly In politics, a national assembly is either a unicameral legislature, the lower house of a bicameral legislature, or both houses of a bicameral legislature together. In the English language it generally means "an assembly composed of the rep ...
is elected by proportional representation in fixed electoral districts, so many smaller parties are represented. Presidential elections require a plurality; out of the five last presidents only ex-president Ricardo Martinelli has managed to be elected with over 50 percent of the popular vote.


Political culture

Since the end of
Manuel Noriega Manuel Antonio Noriega Moreno (; February 11, 1934 – May 29, 2017) was a Panamanian dictator, politician and military officer who was the ''de facto'' List of heads of state of Panama, ruler of Panama from 1983 to 1989. An authoritaria ...
's military dictatorship in 1989, Panama has successfully completed five 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. Former President Martín Torrijos is the son of general
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Commander of the Panamanian National Guard and military leader of Panama from 1968 to his death in 1981. Torrijos was never officially the president of Panama, ...
. He succeeded
Mireya Moscoso Mireya Elisa Moscoso Rodríguez de Arias (born July 1, 1946) is a Panamanian politician who served as the President of Panama from 1999 to 2004. She is the country's first female president. Born into a rural family, Moscoso became active in t ...
, the widow of
Arnulfo Arias Arnulfo Arias Madrid (15 August 1901 – 10 August 1988) was a Panamanian politician, medical doctor, and writer who served as the President of Panama from 1940 to 1941, again from 1949 to 1951, and finally for 11 days in October 1968. Thro ...
. Panama's most recent national elections occurred in 2019. The 2019 Panamanian general election were scheduled for May 5, 2019, with current President
Juan Carlos Varela Juan Carlos Varela Rodríguez (; born 13 December 1963) is a Panamanian businessman and former politician who served as the President of Panama from 2014 to 2019. Varela was Vice President of Panama from 2009 to 2014, and Minister of Foreign ...
being ineligible due to constitutional limits for a second term.


Foreign relations

The United States cooperates with the Panamanian government in promoting economic, political, security, and social development through US and international agencies. Cultural ties between the two countries are strong, and many Panamanians go to the United States for higher education and advanced training.


Military

Shortly after its independence from Colombia in 1903, Panama abolished its army. It maintained police operations throughout the nation. During the 1940s, the Chief of Police of Panama City, Jose Remon, exercised pronounced political power in Panama. He removed and appointed several presidents. In 1952 he ran for president. The campaign was marred by police brutality and persecution of the opposition. As a result, questioned by independent observers, Remon was declared the president. Less than three years later Remon was assassinated. The only president ever assassinated. Today the
Panamanian Public Forces The Panamanian Public Forces ( es, Fuerza Pública de la República de Panamá) are the national security forces of Panama. Panama is the second country in Latin America (the other being Costa Rica) to permanently abolish standing armies, with P ...
are the national security forces of Panama. Panama is the second country in Latin America (the other being
Costa Rica Costa Rica (, ; ; literally "Rich Coast"), officially the Republic of Costa Rica ( es, República de Costa Rica), is a country in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the no ...
) to permanently abolish its standing army. Panama maintains armed police and security forces, and small air and maritime forces. They are tasked with law enforcement and can perform limited military actions. In 2017, Panama signed the UN
treaty on the Prohibition of Nuclear Weapons The Treaty on the Prohibition of Nuclear Weapons (TPNW), or the Nuclear Weapon Ban Treaty, is the first legally binding international agreement to comprehensively prohibit nuclear weapons with the ultimate goal being their total elimination. It ...
.


Administrative divisions

Panama is divided into ten provinces with their respective local authorities (governors). Each is divided into
districts A district is a type of administrative division that, in some countries, is managed by the local government. Across the world, areas known as "districts" vary greatly in size, spanning regions or counties, several municipalities, subdivisions o ...
and ''corregimientos'' (townships). Also, there are five ''Comarcas'' (literally: "Shires") populated by a variety of indigenous groups. Provinces Comarcas * Emberá *
Guna Yala Guna Yala, formerly known as San Blas, is a '' comarca indígena'' (indigenous province) in northeast Panama. Guna Yala is home to the indigenous people known as the Gunas. Its capital is Gaigirgordub. It is bounded on the north by the Car ...
* Naso Tjër Di * Ngäbe-Buglé *
Kuna de Madugandí Kuna may refer to: Places * Kuna, Idaho, a town in the United States ** Kuna Caves, a lava tube in Idaho * Kuna Peak, a mountain in California * , a village in the Orebić municipality, Croatia * , a village in the Konavle municipality, Croatia ...
*
Kuna de Wargandí Guna de Wargandí or Wargandí, formerly known as Kuna de Wargandí () is a '' comarca indígena'' (indigenous territory) and corregimiento in Pinogana District, Darién Province, Panama with a population of 1,914 as of 2010. It was created by La ...


Economy

According to the
CIA World Factbook ''The World Factbook'', also known as the ''CIA World Factbook'', is a reference resource produced by the Central Intelligence Agency (CIA) with almanac-style information about the countries of the world. The official print version is available ...
, Panama had an
unemployment rate Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the referen ...
of 2.7 percent. A food surplus was registered in August 2008. On the
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, whi ...
, Panama ranked 60th in 2015. In more recent years, Panama's economy has experienced a boom, with growth in
real gross domestic product Real gross domestic product (real GDP) is a macroeconomics, macroeconomic measure of the value of economic output (economics), output adjusted for price changes (i.e. inflation (economics), inflation or deflation). This adjustment transforms the m ...
(GDP) averaging over 10.4 percent in 2006–2008. Panama's economy was among the fastest growing and best managed in Latin America. The
Latin Business Chronicle ''Latin Trade Business Intelligence'', formerly ''Latin Business Chronicle'' (''LBC'') is a weekly online journal on Latin American business and technology. Profile ''LBC'', a unit of Latin Trade Group, was first published in 2001. It has around ...
predicted that Panama would be the fastest growing economy in Latin America during the five-year period from 2010 to 2014, matching Brazil's 10 percent rate. The expansion project on the Panama Canal is expected to boost and extend economic expansion for some time. Panama also signed the Panama–United States Trade Promotion Agreement which eliminates tariffs to US services. Even though Panama is regarded as a
high-income country A developed country (or industrialized country, high-income country, more economically developed country (MEDC), advanced country) is a sovereign state that has a high quality of life, developed economy and advanced technological infrastruct ...
, it still remains a country of stark contrasts perpetuated by dramatic educational disparities. Between 2015 and 2017, poverty at less than US$5.5 a day fell from 15.4 to an estimated 14.1 percent.


Economic sectors

Panama's economy, because of its key geographic location, is mainly based on a well-developed service sector, especially commerce, tourism, and trading. The handover of the Canal and military installations by the United States has given rise to large construction projects. A project to build a third set of locks for the Panama Canal was overwhelmingly approved in a referendum (with low voter turnout, however) on October 22, 2006. The official estimated cost of the project is US$5.25 billion, but the canal is of major economic importance because it provides millions of dollars of toll
revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
to the national economy and provides massive employment. Transfer of control of the Canal to the Panamanian government completed in 1999, after 85 years of US control. Copper and gold deposits are being developed by foreign investors, to the dismay of some environmental groups, as all of the projects are located within protected areas.


Panama as an IFC

Since the early 20th century, Panama has with the revenues from the canal built the largest Regional Financial Center (IFC) in Central America, with consolidated assets being more than three times that of Panama's GDP. The
banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
sector employs more than 24,000 people directly. Financial intermediation contributed 9.3 percent of GDP. Stability has been a key strength of Panama's financial sector, which has benefited from the country's favorable economic and business climate. Banking institutions report sound growth and solid financial earnings. The banking supervisory regime is largely compliant with the Basel Core Principles for Effective Banking Supervision. As a regional financial center, Panama exports some banking services, mainly to Latin America, and plays an important role in the country's economy. However, Panama still cannot compare to the position held by Hong Kong or Singapore as financial centers in Asia. Panama still has a reputation worldwide for being a
tax haven A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
but has agreed to enhanced transparency, especially since the release in 2016 of the
Panama Papers The Panama Papers ( es, Papeles de Panamá) are 11.5 million leaked documents (or 2.6 terabytes of data) that were published beginning on April 3, 2016. The papers detail financial and attorney–client information for more than 214,488 ...
. Significant progress has been made to improve full compliance with anti-money laundering recommendations. Panama was removed from the
FATF The Financial Action Task Force (on Money Laundering) (FATF), also known by its French name, ''Groupe d'action financière'' (GAFI), is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat mo ...
gray list in February 2016. The European Union also removed Panama from its tax haven blacklist in 2018. However efforts remain to be made, and the IMF repeatedly mentions the need to strengthen financial transparency and fiscal structure.


Transportation

Panama is home to
Tocumen International Airport Tocumen International Airport ( es, Aeropuerto Internacional de Tocumen) is the primary international airport serving Panama City, the capital of Panama. The airport serves as the homebase for Copa Airlines and is a regional hub to and from Th ...
, Central America's largest airport. Additionally there are more than 20 smaller airfields in the country. (See
list of airports in Panama This is a list of airports in Panama, sorted by location. International and domestic airports included. __TOC__ Airports Airport names shown in bold indicate the airport has scheduled service on commercial airlines. Panama City Tocumen airpor ...
). Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in many cases, restricted by local authorities. This usually occurs in
informal settlements Informal housing or informal settlement can include any form of housing, shelter, or settlement (or lack thereof) which is illegal, falls outside of government control or regulation, or is not afforded protection by the state. As such, the inform ...
. Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts, and airbags are not mandatory. Highways are generally well-developed for a Latin American country. Currently, Panama City has buses known as Metrobuses, along with two
Metro Metro, short for metropolitan, may refer to: Geography * Metro (city), a city in Indonesia * A metropolitan area, the populated region including and surrounding an urban center Public transport * Rapid transit, a passenger railway in an urba ...
lines. Formerly, the system was dominated by colorfully painted ''
diablos rojos Diablos Rojos (English: Red Devils) may refer to: * Diablos Rojos de Juliaca, a Peruvian football club * Diablos Rojos del México The Diablos Rojos del Mexico (English: Mexico Red Devils) are a professional baseball team in the Mexican League ba ...
''; a few remain, and are mostly used on rural areas along with " chivas". A ' is usually customized or painted with bright colors, usually depicting famous actors, politicians or singers. Panama City's streets experience frequent
traffic jams Traffic congestion is a condition in transport that is characterized by slower speeds, longer trip times, and increased vehicular queueing. Traffic congestion on urban road networks has increased substantially since the 1950s. When traffic de ...
due to poor planning for now-extensive private vehicle ownership.


Tourism

Tourism in Panama has maintained its growth over the past five years due to government tax and price discounts to foreign guests and retirees. These economic incentives have caused Panama to be regarded as a relatively good place to retire. Real estate developers in Panama have increased the number of tourism destinations in the past five years because of interest in these visitor incentives. The number of tourists from Europe grew by 23.1 percent during the first nine months of 2008. According to the Tourism Authority of Panama (ATP), from January to September, 71,154 tourists from Europe entered Panama, 13,373 more than in same period the previous year. Most of the European tourists were Spaniards (14,820), followed by Italians (13,216), French (10,174) and British (8,833). There were 6997 from Germany, the most populous country in the European Union. Europe has become one of the key markets to promote Panama as a tourist destination. In 2012, 4.345.5 million entered into the Panamanian economy as a result of tourism. This accounted for 9.5 percent of the
gross domestic product Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
of the country, surpassing other productive sectors. The number of tourists who arrived that year was 2.2 million. Panama enacted Law No. 80 in 2012 to promote foreign investment in tourism. Law 80 replaced an older Law 8 of 1994. Law 80 provides 100 percent exemption from
income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
and real estate taxes for 15 years, duty-free imports for construction materials and equipment for five years, and a capital gains tax exemption for five years.


Currency

The Panamanian currency is officially the balboa,
fixed Fixed may refer to: * ''Fixed'' (EP), EP by Nine Inch Nails * ''Fixed'', an upcoming 2D adult animated film directed by Genndy Tartakovsky * Fixed (typeface), a collection of monospace bitmap fonts that is distributed with the X Window System * ...
at a rate of 1:1 with the
United States dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
since Panamanian independence in 1903. In practice, Panama is
dollarized Currency substitution is the use of a foreign currency in parallel to or instead of a domestic currency. The process is also known as dollarization or euroization when the foreign currency is the dollar or the euro, respectively. Currency subs ...
: U.S. dollars are
legal tender Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
and used for all paper currency, and whilst Panama has its own coinage, U.S. coins are widely used. Because of the tie to US dollars, Panama has traditionally had low
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
. According to the
Economic Commission for Latin America and the Caribbean The United Nations Economic Commission for Latin America and the Caribbean, known as ECLAC, UNECLAC or in Spanish and Portuguese CEPAL, is a United Nations regional commission to encourage economic cooperation. ECLAC includes 46 member States (2 ...
, Panama's inflation in 2006 was 2.0 percent as measured by a weighted
Consumer Price Index A consumer price index (CPI) is a price index, the price of a weighted average market basket of consumer goods and services purchased by households. Changes in measured CPI track changes in prices over time. Overview A CPI is a statistica ...
. The balboa replaced the Colombian peso in 1904 after Panama's independence. Balboa banknotes were printed in 1941 by President Arnulfo Arias. They were recalled several days later, giving them the name "The Seven Day Dollars". The notes were burned by the new government, but occasionally balboa notes can be found in collections. These were the only banknotes ever issued by Panama and US notes have circulated both before and since. On April 28, 2022, Panama's lawmakers approved a bill that would legalize and regulate the use of bitcoin and other cryptocurrencies. The bill covers using cryptocurrency, trading it, tokenizing precious metals, and issuing digital securities, among other related topics. Its passing will also allow citizens to use their cryptocurrency holdings to pay taxes.


International trade

The high levels of Panamanian trade are in large part from the
Colón Free Trade Zone The Colón Free Trade Zone is a free port in Panama dedicated to re-exporting a wide variety of merchandise to Latin America and the Caribbean. It is located on the Caribbean coast, near the Atlantic entrance to the Panama Canal, in the province ...
, the largest free trade zone in the
Western Hemisphere The Western Hemisphere is the half of the planet Earth that lies west of the prime meridian (which crosses Greenwich, London, United Kingdom) and east of the antimeridian. The other half is called the Eastern Hemisphere. Politically, the term We ...
. Last year the zone accounted for 92 percent of Panama's exports and 64 percent 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 The United Nations Economic Commission for Latin America and the Caribbean, known as ECLAC, UNECLAC or in Spanish and Portuguese CEPAL, is a United Nations regional commission to encourage economic cooperation. ECLAC includes 46 member States (2 ...
. Panama's economy is also very much supported by the trade and export of coffee and other agricultural products. The Bilateral Investment Treaty (BIT) between the governments of the United States and Panama was signed on October 27, 1982. The treaty protects US investment and assists Panama in its efforts to develop its economy by creating conditions more favorable for US private investment and thereby strengthening the development of its private sector. The BIT was the first such treaty signed by the US in the Western Hemisphere. A Panama–United States Trade Promotion Agreement (TPA) was signed in 2007, approved by Panama on July 11, 2007, and by US President Obama on October 21, 2011, and the agreement entered into force on October 31, 2012.


Society


Demographics

Panama had an estimated population of in . The proportion of the population aged less than 15 in 2010 was 29 percent. 64.5 percent of the population was between 15 and 65, with 6.6 percent of the population 65 years or older. More than half the population lives in the Panama City– Colón metropolitan corridor, which spans several cities. Panama's urban population exceeds 75 percent, making Panama's population the most urbanized in
Central America Central America ( es, América Central or ) is a subregion of the Americas. Its boundaries are defined as bordering the United States to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west. ...
.


Ethnic groups

In 2010 the population was 65 percent
Mestizo (; ; fem. ) is a term used for racial classification to refer to a person of mixed Ethnic groups in Europe, European and Indigenous peoples of the Americas, Indigenous American ancestry. In certain regions such as Latin America, it may also r ...
(mixed white, Native American), 12.3 percent Native American, 9.2 percent Black or African descent, 6.8 percent mulatto, and 6.7 percent White. Ethnic groups in Panama include
Mestizo (; ; fem. ) is a term used for racial classification to refer to a person of mixed Ethnic groups in Europe, European and Indigenous peoples of the Americas, Indigenous American ancestry. In certain regions such as Latin America, it may also r ...
people, who are a mix of
European European, or Europeans, or Europeneans, may refer to: In general * ''European'', an adjective referring to something of, from, or related to Europe ** Ethnic groups in Europe ** Demographics of Europe ** European cuisine, the cuisines of Europe ...
and Amerindian ancestry.
Afro-Panamanians Afro-Panamanians are Panamanians of African descent. The Afro-Panamanian population can be mainly broken into one of two categories "Afro-Colonials", Afro-Panamanians descended from slaves brought to Panama during the colonial period, and "Afro-A ...
account for 15–20 percent of the population. Most Afro-Panamanians live on the Panama- Colón metropolitan area, the Darien Province,
La Palma La Palma (, ), also known as ''La isla bonita'' () and officially San Miguel de La Palma, is the most north-westerly island of the Canary Islands, Spain. La Palma has an area of making it the fifth largest of the eight main Canary Islands. The ...
, and Bocas Del Toro. Neighborhoods in Panama City that have large black populations include: Curundu, El Chorrillo, Rio Abajo, San Joaquín, El Marañón, San Miguelito, and Santa Ana. Black Panamanians are descendants of African slaves brought to the Americas in the
Atlantic Slave Trade The Atlantic slave trade, transatlantic slave trade, or Euro-American slave trade involved the transportation by slave traders of enslaved African people, mainly to the Americas. The slave trade regularly used the triangular trade route and i ...
. The second wave of black people brought to Panama came from the Caribbean during the construction of the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
. Panama also has a considerable
Chinese Chinese can refer to: * Something related to China * Chinese people, people of Chinese nationality, citizenship, and/or ethnicity **''Zhonghua minzu'', the supra-ethnic concept of the Chinese nation ** List of ethnic groups in China, people of ...
and Indian (
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
) population brought to work on the canal during its construction. Most Chinese-Panamanians reside in the province of Chiriquí. Europeans and White Panamanians are a minority in Panama. Panama is also home to a small Arab community that has
mosques A mosque (; from ar, مَسْجِد, masjid, ; literally "place of ritual prostration"), also called masjid, is a place of prayer for Muslims. Mosques are usually covered buildings, but can be any place where prayers ( sujud) are performed, i ...
, practises
Islam Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic religions, Abrahamic Monotheism#Islam, monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God in Islam, God (or ...
, as well as a Jewish community and many synagogues. The Amerindian population includes seven ethnic groups: the
Ngäbe The Ngäbe are an indigenous people within the territories of present-day Panama and Costa Rica in Central America. The Ngäbe mostly live within the Ngäbe-Buglé comarca in the Western Panamanian provinces of Veraguas, Chiriquí and Bocas del ...
,
Kuna Kuna may refer to: Places * Kuna, Idaho, a town in the United States ** Kuna Caves, a lava tube in Idaho * Kuna Peak, a mountain in California * , a village in the Orebić municipality, Croatia * , a village in the Konavle municipality, Croatia ...
(Guna), Emberá, Buglé,
Wounaan The Embera–Wounaan are a semi-nomadic indigenous people in Panama living in Darién Province on the shores of the Chucunaque, Sambú, Tuira Rivers and its waterways. The Embera-Wounaan were formerly and widely known by the name Chocó, and ...
, Naso Tjerdi (Teribe), and Bri Bri.


Languages

Spanish is the official and dominant language. The Spanish spoken in Panama is known as Panamanian Spanish. About 93 percent of the population speak Spanish as their first language. Many citizens who hold jobs at international levels, or at business corporations, speak both English and Spanish. About 14 percent of Panamanians speak English; this number is expected to rise because Panama now requires English classes in its public schools. Native languages, such as Ngäbere, are spoken throughout the country, mostly in their native territories. Over 400,000 Panamanians keep their native languages and customs. About 4 percent speak French and 1 percent speak Arabic.


Largest cities

These are the 10 largest Panamanian cities and towns. Most of Panama's largest cities are part of the
Panama City Metropolitan Area Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Co ...
.


Religion

Christianity Christianity is an Abrahamic monotheistic religion based on the life and teachings of Jesus of Nazareth. It is the world's largest and most widespread religion with roughly 2.38 billion followers representing one-third of the global pop ...
is the main religion in Panama. An official survey carried out by the government estimated in 2015 that 63.2% of the population, or 2,549,150 people, identifies itself as
Roman Catholic Roman or Romans most often refers to: *Rome, the capital city of Italy *Ancient Rome, Roman civilization from 8th century BC to 5th century AD *Roman people, the people of ancient Rome *'' Epistle to the Romans'', shortened to ''Romans'', a lette ...
, and 25.0 percent as
evangelical Protestant Evangelicalism (), also called evangelical Christianity or evangelical Protestantism, is a worldwide interdenominational movement within Protestant Christianity that affirms the centrality of being "born again", in which an individual exper ...
, or 1,009,740. The
Jehovah's Witnesses Jehovah's Witnesses is a millenarian restorationist Christian denomination with nontrinitarian beliefs distinct from mainstream Christianity. The group reports a worldwide membership of approximately 8.7 million adherents involved in ...
were the third largest congregation comprising the 1.4% of the population, followed by the Adventist Church and
the Church of Jesus Christ of Latter-day Saints The Church of Jesus Christ of Latter-day Saints, informally known as the LDS Church or Mormon Church, is a Nontrinitarianism, nontrinitarian Christianity, Christian church that considers itself to be the Restorationism, restoration of the ...
with the 0.6%. There is a very large Buddhist (0.4% or 18,560) and Jewish community (0.1% or 5,240) in the country. The
Baháʼí Faith The Baháʼí Faith is a religion founded in the 19th century that teaches the Baháʼí Faith and the unity of religion, essential worth of all religions and Baháʼí Faith and the unity of humanity, the unity of all people. Established by ...
community in Panama is estimated at 2.00 percent of the national population, or about 60,000 including about 10 percent of the Guaymí population.
The Church of Jesus Christ of Latter-day Saints The Church of Jesus Christ of Latter-day Saints, informally known as the LDS Church or Mormon Church, is a Nontrinitarianism, nontrinitarian Christianity, Christian church that considers itself to be the Restorationism, restoration of the ...
(LDS Church) claims more than 40,000 members. Smaller religious groups include
Seventh-day Adventists The Seventh-day Adventist Church is an Adventism, Adventist Protestantism, Protestant Christian denomination which is distinguished by its observance of Saturday, the Names of the days of the week#Numbered days of the week, seventh day of the ...
,
Jehovah's Witnesses Jehovah's Witnesses is a millenarian restorationist Christian denomination with nontrinitarian beliefs distinct from mainstream Christianity. The group reports a worldwide membership of approximately 8.7 million adherents involved in ...
,
Episcopalians Anglicanism is a Western Christian tradition that has developed from the practices, liturgy, and identity of the Church of England following the English Reformation, in the context of the Protestant Reformation in Europe. It is one of th ...
with between 7,000 and 10,000 members,
Jewish Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...
and
Muslim Muslims ( ar, المسلمون, , ) are people who adhere to Islam, a monotheistic religion belonging to the Abrahamic tradition. They consider the Quran, the foundational religious text of Islam, to be the verbatim word of the God of Abrah ...
communities with approximately 10,000 members each,
Hindu Hindus (; ) are people who religiously adhere to Hinduism.Jeffery D. Long (2007), A Vision for Hinduism, IB Tauris, , pages 35–37 Historically, the term has also been used as a geographical, cultural, and later religious identifier for ...
s,
Buddhist Buddhism ( , ), also known as Buddha Dharma and Dharmavinaya (), is an Indian religion or philosophical tradition based on teachings attributed to the Buddha. It originated in northern India as a -movement in the 5th century BCE, and ...
s, and other Christians.International Religious Freedom Report 2007: Panama
United States
Bureau of Democracy, Human Rights and Labor The Bureau of Democracy, Human Rights and Labor Affairs (DRL) is a bureau within the United States Department of State. The bureau is under the purview of the Under Secretary of State for Civilian Security, Democracy, and Human Rights. DRL's resp ...
(September 14, 2007). ''This article incorporates text from this source, which is in the
public domain The public domain (PD) consists of all the creative work A creative work is a manifestation of creative effort including fine artwork (sculpture, paintings, drawing, sketching, performance art), dance, writing (literature), filmmaking, ...
.''
Indigenous religions include Ibeorgun (among
Kuna Kuna may refer to: Places * Kuna, Idaho, a town in the United States ** Kuna Caves, a lava tube in Idaho * Kuna Peak, a mountain in California * , a village in the Orebić municipality, Croatia * , a village in the Konavle municipality, Croatia ...
) and Mamatata (among
Ngäbe The Ngäbe are an indigenous people within the territories of present-day Panama and Costa Rica in Central America. The Ngäbe mostly live within the Ngäbe-Buglé comarca in the Western Panamanian provinces of Veraguas, Chiriquí and Bocas del ...
). There are also a small number of
Rastafarians Rastafari, sometimes called Rastafarianism, is a religion that developed in Jamaica during the 1930s. It is classified as both a new religious movement and a social movement by scholars of religion. There is no central authority in control of ...
.


Education

During the 16th century, education in Panama was provided by
Jesuit , image = Ihs-logo.svg , image_size = 175px , caption = ChristogramOfficial seal of the Jesuits , abbreviation = SJ , nickname = Jesuits , formation = , founders ...
s. Public education began as a national and governmental institution in 1903. The principle underlying the early education system was that children should receive different types of education in accordance with their social class and therefore the position they were expected to occupy in society.
Public education State schools (in England, Wales, Australia and New Zealand) or public schools (Scottish English and North American English) are generally primary or secondary schools that educate all students without charge. They are funded in whole or in pa ...
began in Panama soon after it seceded from Colombia in 1903. The first efforts were guided by an extremely paternalistic view of the goals of education, as evidenced in comments made in a 1913 meeting of the First Panamanian Educational Assembly, "The cultural heritage given to the child should be determined by the social position he will or should occupy. For this reason education should be different in accordance with the social class to which the student should be related." This elitist focus changed rapidly under US influence. In 2010, it was estimated that 94.1 percent of the population was literate (94.7 percent of males and 93.5 percent of females). Education in Panama is
compulsory Compulsion may refer to: * Compulsive behavior, a psychological condition in which a person does a behavior compulsively, having an overwhelming feeling that they must do so. * Obsessive–compulsive disorder, a mental disorder characterized by i ...
for all children between ages 6 and 15. In recent decades, school enrollment at all levels, but especially at upper levels, has increased significantly. Panama participates in the
PISA Pisa ( , or ) is a city and ''comune'' in Tuscany, central Italy, straddling the Arno just before it empties into the Ligurian Sea. It is the capital city of the Province of Pisa. Although Pisa is known worldwide for its leaning tower, the cit ...
exams, but due to debts and unsatisfactory exam results it postponed participation until 2018.


Culture

The culture of Panama derives from
European music The culture of Europe is rooted in its art, architecture, film, different types of music, economics, literature, and philosophy. European culture is largely rooted in what is often referred to as its "common cultural heritage". Definition ...
,
art Art is a diverse range of human activity, and resulting product, that involves creative or imaginative talent expressive of technical proficiency, beauty, emotional power, or conceptual ideas. There is no generally agreed definition of wha ...
and traditions brought by the Spanish to Panama.
Hegemonic Hegemony (, , ) is the political, economic, and military predominance of one state over other states. In Ancient Greece (8th BC – AD 6th ), hegemony denoted the politico-military dominance of the ''hegemon'' city-state over other city-states. ...
forces have created
hybrid Hybrid may refer to: Science * Hybrid (biology), an offspring resulting from cross-breeding ** Hybrid grape, grape varieties produced by cross-breeding two ''Vitis'' species ** Hybridity, the property of a hybrid plant which is a union of two dif ...
forms blending
African African or Africans may refer to: * Anything from or pertaining to the continent of Africa: ** People who are native to Africa, descendants of natives of Africa, or individuals who trace their ancestry to indigenous inhabitants of Africa *** Ethn ...
and Native American culture with
European culture The culture of Europe is rooted in its art, architecture, film, different types of music, economics, literature, and philosophy. European culture is largely rooted in what is often referred to as its "common cultural heritage". Definition ...
. For example, the ''
tamborito El Tamborito, literally translated to "the Little Drum", is a genre of Panamanian Folk music, folkloric music and Folk dance, dance dating back as early as the 17th century. Likewise, it is the typical genre of the north coast of the Colombian Pac ...
'' is a Spanish dance with African rhythms, themes and dance moves. Dance is typical of the diverse cultures in Panama. The local folklore can be experienced at a multitude of festivals, through dances and traditions handed down from generation to generation. Local cities host live ''reggae en español'', ''reggaeton'', ''haitiano (compas)'', jazz, blues, ''salsa music, salsa'', reggae, and rock music performances.


Handicraft

Outside Panama City, regional festivals take place throughout the year featuring local musicians and dancers. Panama's blended culture is reflected in traditional products, such as woodcarvings, ceremonial masks and
pottery Pottery is the process and the products of forming vessels and other objects with clay and other ceramic materials, which are fired at high temperatures to give them a hard and durable form. Major types include earthenware, stoneware and por ...
, as well as in Panama's architecture, cuisine and festivals. In earlier times, baskets were woven for utilitarian uses, but now many villages rely almost exclusively on income from the baskets they produce for tourists. An example of undisturbed, unique culture in Panama is that of the Guna Yala, Guna who are known for ''mola (art form), molas''. ''Mola'' is the Guna word for blouse, but the term ''mola'' has come to mean the elaborate embroidered panels made by Guna women, that make up the front and back of a Guna woman's blouse. They are several layers of cloth, varying in color, that are loosely stitched together, made using a reverse appliqué process.


Holidays and festivities

The Christmas parade, known as ''El desfile de Navidad'', is celebrated in the capital, Panama City. This holiday is celebrated on December 25. The floats in the parade are decorated in the Panamanian colors, and women wear dresses called ''pollera'' and men dress in traditional montuno. In addition, the marching band in the parade, consisting of drummers, keeps crowds entertained. In the city, a big Christmas tree is lit with Christmas lights, and everybody surrounds the tree and sings Christmas carols.


Traditional cuisine

Since Panama's cultural heritage is influenced by many ethnicities the traditional cuisine of the country includes ingredients from many cultures, from all over the world: a mix of African, Spanish, and Native American techniques, dishes, and ingredients, reflecting its diverse population. Since Panama is a land bridge between two continents, it has a large variety of tropical fruits, vegetables and herbs that are used in native cooking. The famous fish market known as the "Mercado de Mariscos" offers fresh seafood and Ceviche, a seafood dish. Small shops along the street which are called kiosco and Empanada, which is a typical latinamerican pastry, including a variety of different ingredients, either with meat or vegetarian, mostly fried. Another kind of pastry is the pastelito, with the only difference in comparison to empanadas is that they are bigger. Typical Panamanian foods are mild-flavored, without the pungency of some of Panama's Latin American and Caribbean neighbors. Common ingredients are maize, rice, wheat flour, Plantain (cooking), plantains, ''yuca'' (cassava), beef, chicken, pork and seafood.


Traditional clothing

Panamanian men's traditional clothing, called ''montuno'', consists of white cotton shirts, trousers and woven straw hats. The traditional women's clothing is the ''pollera''. It originated in Spain in the 16th century, and by the early 1800s it was typical in Panama, worn by female servants, especially wet nurses (''De Zarate'' 5). Later, it was adopted by upper-class women. A ''pollera'' is made of "cambric" or "fine linen" (Baker 177). It is white, and is usually about 13 yards of material. The original ''pollera'' consists of a ruffled blouse worn off the shoulders and a skirt with gold buttons. The skirt is also ruffled, so that when it is lifted up, it looks like a peacock's tail or a ''mantilla'' fan. The designs on the skirt and blouse are usually flowers or birds. Two large matching pom poms (''mota'') are on the front and back, four ribbons hang from the front and back from the waist, five gold chains (''caberstrillos'') hang from the neck to the waist, a gold cross or medallion on a black ribbon is worn as a choker, and a silk purse is worn at the waistline. Earrings (''zaricillos'') are usually gold or coral. Slippers usually match the color of the ''pollera''. Hair is usually worn in a bun, held by three large gold combs that have pearls (''tembleques'') worn like a crown. Quality ''pollera'' can cost up to $10,000, and may take a year to complete. Today, there are different types of ''polleras''; the ''pollera de gala'' consists of a short-sleeved ruffle skirt blouse, two full-length skirts and a petticoat. Girls wear
tembleques
' in their hair. Gold coins and jewelry are added to the outfit. The ''pollera montuna'' is a daily dress, with a blouse, a skirt with a solid color, a single gold chain, and pendant earrings and a natural flower in the hair. Instead of an off-the-shoulder blouse it is worn with a fitted white jacket that has shoulder pleats and a flared hem. Traditional clothing in Panama can be worn in parades, where the females and males do a traditional dance. Females gently sway and twirl their skirts, while men hold their hats in their hands and dance behind the females.


Literature

The first literature relating to Panama can be dated to 1535, with a modern literary movement appearing from the mid-19th century onwards


Sports

The US influence in Panama can be seen in the country's sports. Baseball is Panama's national sport. The Panamanian Professional Baseball League is the country's professional winter league. It was first held in 1946, but had multiple interruptions spanning several decades. The Panama national baseball team has earned one silver medal and two bronze medals at the Baseball World Cup. At least List of Major League Baseball players from Panama, 140 Panamanian players have played professional baseball in the United States, more than any other Central American country. Since the end of the 20th century, association football has become more popular in Panama. The top tier of domestic Panamanian football, Liga Panameña de Fútbol, was founded in 1988. The Panama national football team, national team appeared at the FIFA World Cup for the first time in 2018 FIFA World Cup, 2018, appearing in group G, facing Belgium national football team, Belgium, England national football team, England and Tunisia national football team, Tunisia. However, the team lost all three games, failing to advance past the group stage. Basketball is also popular in Panama. There are regional teams as well as a squad that competes internationally. Other popular sports include volleyball, taekwondo, golf, and tennis. A long-distance hiking trail called th
TransPanama Trail
is being built from Colombia to Costa Rica. Panama's women's national volleyball team competes in
Central America Central America ( es, América Central or ) is a subregion of the Americas. Its boundaries are defined as bordering the United States to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west. ...
's AFECAVOL (Asociación de Federaciones CentroAmericanas de Voleibol) zone. Other non-traditional sports in the country have had great importance such as the triathlon that has captured the attention of many athletes nationwide and the country has hosted international competitions. Flag football has also been growing in popularity in both men and women and with international participation in world of this discipline being among the best teams in the world, the sport was introduced by Americans residing in the Canal Zone for veterans and retirees who even had a festival called the Turkey Ball. Other popular sports are American football, rugby football, rugby, field hockey, softball, and other amateur sports, including skateboarding, BMX, and surfing, because the many beaches of Panama such as Santa Catalina and Venao that have hosted events the likes of ISA World Surfing Games.


See also

* Index of Panama-related articles * Outline of Panama


References


Further reading

* Buckley, Kevin, ''Panama'', Touchstone, 1992. * Diaz Espino, Ovidio, ''How Wall Street Created a Nation'', Four Walls Eight Windows, 2001. * Harding, Robert C., ''The History of Panama'', Greenwood Publishing, 2006. * Harding, Robert C., ''Military Foundations of Panamanian Politics'', Transaction Publishers, 2001. * Joster, R.M. and Sanchez, Guillermo, ''In the Time of the Tyrants, Panama: 1968–1990'', W.W. Norton & Company, 1990. * Porras, Ana Elena, ''Cultura de la Interoceanidad: Narrativas de Identidad Nacional de Panama (1990–2002)'', Editorial Carlos Manuel Gasteazoro, 2005. * Serrano, Damaris, ''La Nación Panamena en sus Espacios: Cultura Popular, Resistencia y Globalización'', Editorial Mariano Arosemena, 2005. * Villarreal, Melquiades, ''Esperanza o Realidad: Fronteras de la Identidad Panamena'', Editorial Mariano Arosemena, 2004. * Weeks, John and Gunson, Phil, ''Panama. Made in the USA'', 1992.


External links

*
Panama
from UCB Libraries GovPubs
Panama
''The World Factbook''. Central Intelligence Agency.
Panama
from BBC News * * {{Authority control Panama, Countries in Central America Countries in North America Member states of the United Nations Republics Spanish-speaking countries and territories States and territories established in 1903 Transcontinental countries