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Panama, officially the Republic of Panama, is a country in
Latin America Latin America is the cultural region of the Americas where Romance languages are predominantly spoken, primarily Spanish language, Spanish and Portuguese language, Portuguese. Latin America is defined according to cultural identity, not geogr ...
at the southern end of
Central America Central America is a subregion of North America. Its political boundaries are defined as bordering Mexico to the north, Colombia to the southeast, the Caribbean to the east, and the Pacific Ocean to the southwest. Central America is usually ...
, bordering South America. It is bordered by
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
to the west,
Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...
to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Its capital and largest city is
Panama City Panama City, also known as Panama, is the capital and largest city of Panama. It has a total population of 1,086,990, with over 2,100,000 in its metropolitan area. The city is located at the Pacific Ocean, Pacific entrance of the Panama Canal, i ...
, whose
metropolitan area A metropolitan area or metro is a region consisting of a densely populated urban area, urban agglomeration and its surrounding territories which share Industry (economics), industries, commercial areas, Transport infrastructure, transport network ...
is home to nearly half of the country's over million inhabitants. Before the arrival of
Spanish colonists Spaniards, or Spanish people, are a Romance-speaking ethnic group native to the Iberian Peninsula, primarily associated with the modern nation-state of Spain. Genetically and ethnolinguistically, Spaniards belong to the broader Southern and ...
in the 16th century, Panama was inhabited by a number of different indigenous tribes. It broke away from Spain in 1821 and joined the Republic of
Gran Colombia Gran Colombia (, "Great Colombia"), also known as Greater Colombia and officially the Republic of Colombia (Spanish language, Spanish: ''República de Colombia''), was a state that encompassed much of northern South America and parts of Central ...
, a union of Nueva Granada,
Ecuador Ecuador, officially the Republic of Ecuador, is a country in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean on the west. It also includes the Galápagos Province which contain ...
, and
Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...
. 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 () is an artificial waterway in Panama that connects the Caribbean Sea with the Pacific Ocean. It cuts across the narrowest point of the Isthmus of Panama, and is a Channel (geography), conduit for maritime trade between th ...
to be completed by the
United States Army Corps of Engineers The United States Army Corps of Engineers (USACE) is the military engineering branch of the United States Army. A direct reporting unit (DRU), it has three primary mission areas: Engineer Regiment, military construction, and civil wo ...
between 1904 and 1914. The 1977
Torrijos–Carter Treaties The Torrijos–Carter Treaties () 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 guaranteed that Panama would gain contro ...
agreed to transfer the canal from the United States to Panama on December 31, 1999. The surrounding territory was returned first, in 1979. Revenue from canal tolls has continued to represent a significant portion of Panama's
GDP Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performance o ...
, especially after the
Panama Canal expansion project The Panama Canal expansion project (), also called the Third Set of Locks Project, doubled the capacity of the Panama Canal by adding a new traffic lane, enabling more ships to transit the waterway, and increasing the width and depth of the lane ...
(finished in 2016) doubled its capacity. Commerce, banking, and tourism are major sectors. Panama is regarded as having a
high-income economy A high-income economy is defined by the World Bank as a country with a gross national income per capita of US$14,005 or more in 2023, calculated using the Atlas method. While the term "high-income" is often used interchangeably with "First World" ...
. In 2019, Panama ranked 57th in the world in terms of the
Human Development Index The Human Development Index (HDI) is a statistical composite index of life expectancy, Education Index, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income i ...
. 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 organization, international advocacy non-governmental organization and think tank, based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German ...
's Global Competitiveness Index. Panama was ranked 82nd in the
Global Innovation Index The Global Innovation Index is an annual ranking of countries by their capacity for and success in innovation, published by the World Intellectual Property Organization (WIPO). It was started in 2007 by INSEAD and ''World Business'', a Britis ...
in 2024. Covering around 40 percent of its land area, Panama's
jungle jungle is land covered with dense forest and tangled vegetation, usually in tropical climates. Application of the term has varied greatly during the past century. Etymology The word ''jungle'' originates from the Sanskrit word ''jaṅgala'' ...
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 the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...
and other international organizations such as the
Organization of American States The Organization of American States (OAS or OEA; ; ; ) is an international organization founded on 30 April 1948 to promote cooperation among its member states within the Americas. Headquartered in Washington, D.C., United States, the OAS is ...
, Latin America Integration Association,
Group of 77 The Group of 77 (G77) at the United Nations (UN) is a coalition of developing country, developing countries, designed to promote its members' collective economic interests and create an enhanced joint negotiating capacity in the United Nations. T ...
,
World Health Organization The World Health Organization (WHO) is a list of specialized agencies of the United Nations, specialized agency of the United Nations which coordinates responses to international public health issues and emergencies. It is headquartered in Gen ...
, and
Non-Aligned Movement The Non-Aligned Movement (NAM) is a forum of 121 countries that Non-belligerent, are not formally aligned with or against any major power bloc. It was founded with the view to advancing interests of developing countries in the context of Cold W ...
.


Etymology

The exact origin of the name "Panama" remains uncertain, with several theories proposed. *
Sterculia apetala ''Sterculia apetala'', the Panama tree, is a species of flowering plant in the family Malvaceae. It is found in Florida, southern Mexico, Central America, and northern South America, and has been introduced to the Caribbean islands. ''Sterculia a ...
( Panama tree): One theory suggests that the name derives from the Sterculia apetala tree, commonly known as the Panama tree, which is native to the region and holds national significance. This tree was declared the national tree of Panama by Cabinet Decree No. 371 on November 26, 1969. * "Many butterflies": Another theory posits that "Panama" means "many butterflies" in an indigenous language, possibly
Guaraní Guarani, Guaraní or Guarany may refer to Ethnography * Guaraní people, an indigenous people from South America's interior (Brazil, Argentina, Paraguay and Bolivia) * Guarani language, or Paraguayan Guarani, an official language of Paraguay * G ...
or another native tongue. This interpretation is linked to the observation that early settlers arrived during August, a time when butterflies are particularly abundant in the area. *
Guna Guna may refer to: People * Guna people, Indigenous peoples of Panama and Colombia Philosophy * Guṇa, a Hindu philosophical concept * Guṇa (Jainism), a philosophical concept Places * Guna district, in Madhya Pradesh, India ** Guna, Indi ...
language "bannaba": A further hypothesis is that "Panama" is a Castilianization of the Guna word "bannaba," meaning "distant" or "far away." A widely recounted legend holds that "Panamá" was the name of a fishing village encountered by
Spanish colonists Spaniards, or Spanish people, are a Romance-speaking ethnic group native to the Iberian Peninsula, primarily associated with the modern nation-state of Spain. Genetically and ethnolinguistically, Spaniards belong to the broader Southern and ...
, purportedly meaning "abundance of fish." While the precise location of this village is unknown, the legend is often associated with accounts from Spanish explorer Antonio Tello de Guzmán, who in 1515 described landing at an unnamed indigenous fishing village along the
Pacific coast Pacific coast may be used to reference any coastline that borders the Pacific Ocean. Geography Americas North America Countries on the western side of North America have a Pacific coast as their western or south-western border. One of th ...
. Subsequently, in 1517, Spanish lieutenant Gaspar de Espinosa established a trading post at the site, and in 1519,
Pedro Arias Dávila Pedro Arias de Ávila (c. 1440 – 6 March 1531; often Pedro Arias Dávila or Pedrarias Dávila) was a Spanish soldier and colonial administrator. He led the first great Spanish expedition to the mainland of the Americas. There, he served as go ...
founded
Panama City Panama City, also known as Panama, is the capital and largest city of Panama. It has a total population of 1,086,990, with over 2,100,000 in its metropolitan area. The city is located at the Pacific Ocean, Pacific entrance of the Panama Canal, i ...
there, replacing the earlier settlement of
Santa María la Antigua del Darién Santa María la Antigua del Darién—turned into Dariena in the Latin of De Orbo Novo—was a Spanish colonial town founded in 1510 by Vasco Núñez de Balboa, located in present-day Colombia approximately south of Acandí, within the muni ...
.


History


Pre-Columbian period

The
Isthmus of Panama The Isthmus of Panama, historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North America, North and South America. The country of Panama is located on the i ...
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 (; : isthmuses or isthmi) 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 count ...
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 There is no generally accepted definition of Indigenous peoples, although in the 21st century the focus has been on self-identification, cultural difference from other groups in a state, a special relationship with their traditional territ ...
in Panama include
Paleo-Indian Paleo-Indians were the first peoples who entered and subsequently inhabited the Americas towards the end of the Late Pleistocene period. The prefix ''paleo-'' comes from . The term ''Paleo-Indians'' applies specifically to the lithic period in ...
projectile point In 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 been kept in the ...
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 raw materials, which are fired at high temperatures to give them a hard and durable form. The place where such wares are made by a ''potter'' is al ...
-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 recorded history, historic or contemporary), and which has been, or may be, investigated using the discipline ...
, and their
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 Polychrome is the "practice of decorating architectural elements, sculpture, etc., in a variety of colors." The term is used to refer to certain styles of architecture, pottery, or sculpture in multiple colors. When looking at artworks and ...
. The monumental
monolith A monolith is a geological feature consisting of a single massive stone or rock, such as some mountains. Erosion usually exposes the geological formations, which are often made of very hard and solid igneous or metamorphic rock. Some monolit ...
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 severa ...
(Chiriqui) site are also important traces of these ancient isthmian cultures. Before Europeans arrived Panama was widely settled by
Chibchan The Chibchan languages (also known as 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, 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) In biogeography, a native species is indigenous to a given region or ecosystem if its presence in that region is the result of only local natural evolution (though often populari ...
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.
Austronesians The Austronesian people, sometimes referred to as Austronesian-speaking peoples, are a large group of peoples who have settled in Taiwan, maritime Southeast Asia, parts of mainland Southeast Asia, Micronesia, coastal New Guinea, Island Melanesi ...
had a trade network to Panama as there is evidence of
coconuts The coconut tree (''Cocos nucifera'') is a member of the palm tree family (biology), family (Arecaceae) and the only living species of the genus ''Cocos''. The term "coconut" (or the archaic "cocoanut") can refer to the whole coconut palm, ...
reaching the Pacific coast of Panama from the
Philippines The Philippines, officially the Republic of the Philippines, is an Archipelagic state, archipelagic country in Southeast Asia. Located in the western Pacific Ocean, it consists of List of islands of the Philippines, 7,641 islands, with a tot ...
in
Precolumbian In the history of the Americas, the pre-Columbian era, also known as the pre-contact era, or as the pre-Cabraline era specifically in Brazil, spans from the initial peopling of the Americas in the Upper Paleolithic to the onset of European c ...
times. 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 tissue (biology), tissues by pathogens, their multiplication, and the reaction of host (biology), host tissues to the infectious agent and the toxins they produce. An infectious disease, also known as a transmis ...
was the primary cause of the population decline of American natives. The indigenous peoples had no
acquired immunity The adaptive immune system (AIS), also known as the acquired immune system, or specific immune system is a subsystem of the immune system that is composed of specialized cells, organs, and processes that eliminate pathogens specifically. The ac ...
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 (W ...
which had been chronic in
Eurasia Eurasia ( , ) is a continental area on Earth, comprising all of Europe and Asia. According to some geographers, Physical geography, physiographically, Eurasia is a single supercontinent. The concept of Europe and Asia as distinct continents d ...
n populations for centuries.


Conquest to 1799

Rodrigo de Bastidas Rodrigo de Bastidas (; Triana, Seville, Andalusia, 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. Personal li ...
sailed westward from
Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...
in 1501 in search of gold, and became the first European to explore the isthmus of Panama. A year later,
Christopher Columbus Christopher Columbus (; between 25 August and 31 October 1451 – 20 May 1506) was an Italians, Italian explorer and navigator from the Republic of Genoa who completed Voyages of Christopher Columbus, four Spanish-based voyages across the At ...
visited the isthmus, and established a short-lived settlement in the province of Darien.
Vasco Núñez de Balboa Vasco Núñez de Balboa (; c. 1475around January 12–21, 1519) was a Spanish people, Spanish explorer, governor, and conquistador. He is best known for crossing the Isthmus of Panama to the Pacific Ocean in 1513, becoming the first European to ...
'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 used to describe the majority of lands of Earth's Western Hemisphere, particularly the Americas, and sometimes Oceania."America." ''The Oxford Companion to the English Language'' (). McArthur, Tom, ed., 1992. New York: ...
. King Ferdinand II assigned
Pedro Arias Dávila Pedro Arias de Ávila (c. 1440 – 6 March 1531; often Pedro Arias Dávila or Pedrarias Dávila) was a Spanish soldier and colonial administrator. He led the first great Spanish expedition to the mainland of the Americas. There, he served as go ...
as Royal Governor. He arrived in June 1514 with 19 vessels and 1,500 men. In 1519, Dávila founded
Panama City Panama City, also known as Panama, is the capital and largest city of Panama. It has a total population of 1,086,990, with over 2,100,000 in its metropolitan area. The city is located at the Pacific Ocean, Pacific entrance of the Panama Canal, i ...
. 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. At 1520 the Genoese controlled the port of Panama. The Genoese obtained a concession from the Spanish to exploit the port of Panama mainly for the slave trade, until the destruction of the primeval city in 1671. In the meantime in 1635 Don
Sebastián Hurtado de Corcuera Sebastián Hurtado de Corcuera y Gaviria (baptized March 25, 1587 – August 12, 1660) was a Spanish soldier and colonial official. From 1632 to 1634, he was governor of Panama. From June 25, 1635 to August 11, 1644 he was governor of the Philip ...
, the then governor of Panama, had recruited Genoese, Peruvians, and Panamanians, as soldiers to wage war against Muslims in the Philippines and to found the city of Zamboanga. Panama was under Spanish rule for almost 300 years (1538–1821), and became part of the
Viceroyalty of Peru The Viceroyalty of Peru (), officially known as the Kingdom of Peru (), was a Monarchy of Spain, Spanish imperial provincial administrative district, created in 1542, that originally contained modern-day Peru and most of the Spanish Empire in ...
, 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. Spanish authorities had little control over much of the territory of Panama. Large sections managed to resist conquest and missionization until late in the colonial era. Because of this, indigenous people of the area were often referred to as "indios de guerra" (war Indians). However, Panama was important to Spain strategically because it was the easiest way to ship silver mined in Peru to Europe. Silver cargoes were landed on the west coast of Panama and then taken overland to Portobello or Nombre de Dios on the Caribbean side of the isthmus for further shipment. Aside from the European route, there was also an Asian-American route, which led to traders and adventurers carrying silver from
Peru Peru, officially the Republic of Peru, is a country in western South America. It is bordered in the north by Ecuador and Colombia, in the east by Brazil, in the southeast by Bolivia, in the south by Chile, and in the south and west by the Pac ...
going over land through Panama to reach Acapulco, Mexico before sailing to Manila, Philippines using the famed
Manila galleon The Manila galleon (; ) refers to the Spain, Spanish trading Sailing ship, ships that linked the Philippines in the Spanish East Indies to Mexico (New Spain), across the Pacific Ocean. The ships made one or two round-trip voyages per year betwe ...
s. In 1579, the royal monopoly that Acapulco, Mexico had on 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 Portuguese who led the biggest slave revolts of the 16th century Panama. Captured from the Yoruba community in West Africa, it has been argued that his name means ''idol''. Di ...
, which emerged in the 1552 to 1558 period. Sir
Francis Drake Sir Francis Drake ( 1540 – 28 January 1596) was an English Exploration, explorer and privateer best known for making the Francis Drake's circumnavigation, second circumnavigation of the world in a single expedition between 1577 and 1580 (bein ...
'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'' ('Souther ...
's crossing to the Pacific Ocean 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 following elements helped define a distinctive sense of autonomy and of regional or national identity within Panama well before the rest of the colonies: 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. 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 in the Darién Gap on the Isthmus of Panama, in the late 1690s. The pl ...
, which set up a
Scottish Scottish usually refers to something of, from, or related to Scotland, including: *Scottish Gaelic, a Celtic Goidelic language of the Indo-European language family native to Scotland *Scottish English *Scottish national identity, the Scottish ide ...
colony in the region in 1698. This failed for a number of reasons, and the ensuing debt contributed to the union of England and Scotland in 1707. In 1671, the
privateer A privateer is a private person or vessel which engages in commerce raiding 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 o ...
Henry Morgan Sir Henry Morgan (; – 25 August 1688) was a Welsh privateer, plantation owner, and, later, the lieutenant governor of Jamaica. From his base in Port Royal, Jamaica, he and those under his command raided settlements and shipping ports o ...
, licensed by the English government, sacked and burned the city of
Panama Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and ...
– the second most important city in the Spanish New World at the time. In 1717 the
viceroyalty of New Granada The Viceroyalty of the New Kingdom of Granada ( ), also called Viceroyalty of New Granada or Viceroyalty of Santa Fe, was the name given on 27 May 1717 to the jurisdiction of the Spanish Empire in northern South America, corresponding to modern ...
(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 Saint Nicholas, Saint Nick, Father Christmas, Kris Kringle or Santa) is a legendary figure originating in Western Christian culture who is said to bring gifts during the late evening and overnight hours on Christma ...
(the modern capital of
Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...
) 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 Peru The Viceroyalty of Peru (), officially known as the Kingdom of Peru (), was a Monarchy of Spain, Spanish imperial provincial administrative district, created in 1542, that originally contained modern-day Peru and most of the Spanish Empire in ...
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 A college (Latin: ''collegium'') may be a tertiary education, tertiary educational institution (sometimes awarding academic degree, degrees), part of a collegiate university, an institution offering vocational education, a further educatio ...
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 Cape Horn (, ) 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 is Águila Islet), Cape Horn marks the nor ...
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 () took place across the Spanish Empire during the early 19th century. The struggles in both hemispheres began shortly after the outbreak of the Peninsular War, forming part of the broader context of the ...
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&n ...
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 (; ), officially San Francisco de Quito, is the capital city, capital and second-largest city of Ecuador, with an estimated population of 2.8 million in its metropolitan area. It is also the capital of the province of Pichincha Province, P ...
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. It then became part of the
Republic of New Granada The Republic of New Granada was a Centralism, centralist unitary republic consisting primarily of present-day Colombia and Panama with smaller portions of today's Costa Rica, Ecuador, Venezuela, Peru and Brazil that existed from 1831 to 1858. ...
in 1831 and was divided into several
provinces A province is an administrative division within a country or state. The term derives from the ancient Roman , which was the major territorial and administrative unit of the Roman Empire's territorial possessions outside Italy. The term ''provi ...
. In 1855, the autonomous State of Panama was created within the Republic out of the New Granada provinces of Panama, Azuero, Chiriquí, and Veraguas. It continued as a state in the
Granadine Confederation The Granadine Confederation () was a short-lived federal republic established in 1858 as a result of a constitutional change replacing the Republic of New Granada. It consisted of the present-day nations of Colombia and Panama and parts of north ...
(1858–1863) and
United States of Colombia The United States of Colombia () was the name adopted in 1863 by the for the Granadine Confederation, after years of civil war. Colombia became a federal state itself composed of nine "sovereign states.” It comprised the present-day nat ...
(1863–1886). The 1886 constitution of the modern Republic of
Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...
created a new Panama Department. 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 () 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 (Colombia), National Party, and lat ...
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's construction and control, led to the
secession of Panama from Colombia The secession of Panama from Colombia was formalized on 3 November 1903, with the establishment of the Republic of Panama and the Costa Rica-Panama border, abolition of the Colombia-Costa Rica border. From the Independence of Panama from Spain i ...
in 1903 and its political independence. When the
Senate of Colombia The Senate of the Republic of Colombia () is the upper house of the Congress of Colombia, with the lower house being the Chamber of Representatives. The Senate has 108 members elected for concurrent (non- rotating) four-year terms. Electoral ...
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 secessionist 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 () 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 after its two primary negotiato ...
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. Bunau-Varilla was a shareholder in a French company (the ''Compagnie Nouvelle du Canal de Panama''), which had acquired the rights of the original French company which had gone bankrupt in 1889. The treaty was quickly drafted and signed the night before the Panamanian delegation arrived in Washington. The treaty granted rights to the United States "as if it were sovereign" in a
zone Zone, Zones or The Zone may refer to: Places Military zones * Zone, any of the divisions of France during the World War II German occupation * Zone, any of the divisions of Germany during the post-World War II Allied occupation * Korean Demilit ...
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 (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, the US extensively fortified access to it. From 1903 to 1968, Panama was a
constitutional democracy A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organization or other type of Legal entity, entity, and commonly determines how that entity is to be governed. Wh ...
dominated by a commercially oriented
oligarchy Oligarchy (; ) is a form of government in which power rests with a small number of people. Members of this group, called oligarchs, generally hold usually hard, but sometimes soft power through nobility, fame, wealth, or education; or t ...
. 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 The Hay–Bunau-Varilla Treaty () 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 after its two primary negotiato ...
, 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 Panamanian military leader of Panama, as well as the Commander of the Panamanian National Guard from 1968 to his death in 1981. Torrijos was never officially ...
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 Panamanian military leader of Panama, as well as the Commander of the Panamanian National Guard from 1968 to his death in 1981. Torrijos was never officially ...
'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 Panamanian military leader of Panama, as well as the Commander of the Panamanian National Guard from 1968 to his death in 1981. Torrijos was never officially ...
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 November 2, 1999) 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 Colón. Following his education ...
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 (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 and military officer who was the ''de facto'' ruler of Panama from 1983 to 1989. He never officially served as president of Panama, instea ...
was firmly in control of both the PDF and the civilian government. In the 1984 elections, the candidates were: *
Nicolás Ardito Barletta Vallarino Nicolás Ardito Barletta Vallarino (born 21 August 1938) is a Panamanian politician, served as its 26th President of Panama from 11 October 1984 to 28 September 1985, running as the candidate of the Democratic Revolutionary Party (PRD) in the ...
, 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 ...
, who had been forced to an early retirement by Manuel 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 funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
and the
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
. 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 illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...
. 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 In the history of Nicaragua, the Contras (Spanish: ''La contrarrevolución'', the counter-revolution) were the right-wing militias who waged anti-communist guerilla warfare (1979–1990) against the Marxist governments of the Sandinista Na ...
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 a 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 Manuel Noriega ...
. 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, 1911 – June 5, 2004) was an American politician and actor who served as the 40th president of the United States from 1981 to 1989. He was a member of the Republican Party (United States), Republican Party a ...
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 that conducts research and advocacy on human rights. Headquartered in New York City, the group investigates and reports on issues including War crime, war crimes, crim ...
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 extraordinar ...
, 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-Man ...
. 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 as required by the
Torrijos–Carter Treaties The Torrijos–Carter Treaties () 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 guaranteed that Panama would gain contro ...
". The US reported 23 servicemen killed and 324 wounded, with the number of Panamanian soldiers killed estimated at 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 Human Rights Watch (HRW) is an international non-governmental organization that conducts research and advocacy on human rights. Headquartered in New York City, the group investigates and reports on issues including war crimes, crimes against ...
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 United States Federal Government, federal government official. A progressive, New Frontier liberal, he occupied senior positions in the United States ...
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 (), also known as just the Canal Zone, was a concession of the United States located in the Isthmus of Panama that existed from 1903 to 1979. It consisted of the Panama Canal and an area generally extending on each side o ...
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; , AGNU or AG) is one of the six principal organs of the United Nations (UN), serving as its main deliberative, policymaking, and representative organ. Currently in its Seventy-ninth session of th ...
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, an ...
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 constructi ...
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 (; feminine ) are people identified with Panama, a country in Central America (which is the central section of the American continent), and with residential, legal, historical, or cultural connections with North America. For most Pan ...
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 attend ...
and Vice Presidents Guillermo Ford 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. On September 1, 1999,
Mireya Moscoso Mireya Elisa Moscoso Rodríguez (born 1 July 1946) is a Panamanian politician who served as the President of Panama from 1999 to 2004. She is the country's first and to date only female president. Born into a rural family, Moscoso became act ...
, the widow of former president
Arnulfo Arias Madrid 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. Throu ...
, took office after defeating PRD candidate
Martín Torrijos Martín Erasto Torrijos Espino (; born July 18, 1963) is a Panamanian politician who was President of Panama from 2004 to 2009. He was fathered out of wedlock by Panamanian military ruler Omar Torrijos, the '' de facto'' head of Panama from 19 ...
, son of
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Panamanian military leader of Panama, as well as the Commander of the Panamanian National Guard from 1968 to his death in 1981. Torrijos was never officially ...
, 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 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 Technocracy is a form of government in which decision-makers appoint knowledge experts in specific domains to provide them with advice and guidance in various areas of their policy-making responsibilities. Technocracy follows largely in the tra ...
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 11 March 1951) is a Panamanian politician and businessman who served as the 36th President of Panama from 2009 to 2014. In 2024, Martinelli was sentenced to ten years in prison for embezzlement of pu ...
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 during the ...
. Martinelli's business credentials drew voters worried by slowing growth during the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
. 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 The Democratic Revolutionary Party (, PRD) is a Centre-left politics, centre-left political party in Panama founded in 1979 by General Omar Torrijos. To date, it has been the party of four Panamian presidents: Nicolás Ardito Barletta Vallarino ( ...
(PRD). On May 4, 2014, Vice President
Juan Carlos Varela Juan Carlos Varela Rodríguez (; born 13 December 1961) is a Panamanian businessman and former politician who served as the 37th president of Panama from 2014 to 2019. Varela previously was the vice president of Panama from 2009 to 2014 and M ...
, 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 p ...
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 served as the 38th President of Panama from 2019 to 2024. Previously, he served as President of the National Assembly (2000–2001) and Minister of Agricul ...
took possession of the presidency. Cortizo was the candidate of
Democratic Revolution Party The Party of the Democratic Revolution (, , PRD) is a state-level social democratic political party in Mexico (previously national, until 2024). The PRD originated from the Democratic Current, a political faction formed in 1986 from the Institu ...
(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 p ...
. During the presidency of Cortizo, numerous events happened in the country, including the
COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
and its
economic impact An economic impact analysis (EIA) examines the effect of an event on the economy in a specified area, ranging from a single neighborhood to the entire globe. It usually measures changes in business revenue, business profits, personal wages, and/ ...
, and the
2022 The year began with another wave in the COVID-19 pandemic, with SARS-CoV-2 Omicron variant, Omicron spreading rapidly and becoming the dominant variant of the SARS-CoV-2 virus worldwide. Tracking a decrease in cases and deaths, 2022 saw ...
and
2023 protests 3 (three) is a number, numeral and digit. It is the natural number following 2 and preceding 4, and is the smallest odd prime number and the only prime preceding a square number. It has religious and cultural significance in many societies ...
. On July 1, 2024,
José Raúl Mulino José Raúl Mulino Quintero (born 13 June 1959) is a Panamanian politician, diplomat and lawyer serving as the 39th president of Panama since 2024. He ran for president in the 2024 Panamanian general election, 2024 Panamanian election, which he ...
was sworn in as Panama's new president. Mulino, a close ally of former president Ricardo Martinelli, won the presidential
election An election is a formal group decision-making process whereby a population chooses an individual or multiple individuals to hold Public administration, public office. Elections have been the usual mechanism by which modern representative d ...
in May 2024. In 2024, due to a rapid rise of Chinese immigration to Panama supplanting the local population and now forming 4% of the people, of which, they are accused by the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
of spying for the
Chinese Communist Party The Communist Party of China (CPC), also translated into English as Chinese Communist Party (CCP), is the founding and One-party state, sole ruling party of the People's Republic of China (PRC). Founded in 1921, the CCP emerged victorious in the ...
, in the strategic isthmus of Panama which is crucial for the trade in the Americas, thus, American President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party (United States), Republican Party, he served as the 45 ...
has threatened to sanction Panama unless the threat of China is neutralized.


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 The Isthmus of Panama, historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North America, North and South America. The country of Panama is located on the i ...
is strategic. By 2000, Panama controlled the Panama Canal 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 form 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 Mountain Range (; ) are the longest continental mountain range in the world, forming a continuous highland along the western edge of South America. The range is long and wide (widest between 18°S ...
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 Central Cordillera refers to the New Guinea Highlands. Cordillera Central, meaning ''central range'' in Spanish, may refer to the following mountain ranges: * Cordillera Central, Andes (disambiguation), several mountain ranges in South America ** ...
. 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 (, , ) is a geographic region that connects the Americas, American continents, stretching across southern Panama's Darién Province and the northern portion of Colombia's Chocó Department. Consisting of a large drainage basin, ...
between Panama and Colombia where Colombian
guerrilla Guerrilla warfare is a form of unconventional warfare in which small groups of irregular military, such as rebels, Partisan (military), partisans, paramilitary personnel or armed civilians, which may include Children in the military, recruite ...
s 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, o ...
. This, as well as 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 con ...
movements, creates the only break in the
Pan-American Highway The Pan-American Highway is a vast network of roads that stretches about 30,000 kilometers (about 19,000 miles) from Prudhoe Bay, Alaska, in the northernmost part of North America to Ushuaia, Argentina, at the southern tip of South America. I ...
, which otherwise forms a complete road from Alaska to
Patagonia Patagonia () is a geographical region that includes parts of Argentina and Chile at the southern end of South America. The region includes the southern section of the Andes mountain chain with lakes, fjords, temperate rainforests, and glaciers ...
. 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 generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
power. The central part of the river is dammed by the
Gatun Dam The Gatun Dam is an 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 carries ships of thei ...
and forms
Gatun Lake Gatun Lake () is a mostly freshwater (slightly saline near the locks) reservoir 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 P ...
, an
artificial lake A lake is often a naturally occurring, relatively large and fixed body of water on or near the Earth's surface. It is localized in a basin or interconnected basins surrounded by dry land. Lakes lie completely on land and are separate from t ...
that constitutes part of the Panama Canal. 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 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) Gun ...
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 A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manche ...
, Colón, and the Port of Balboa, are ranked second and third respectively in Latin America in terms of the number of container 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 Panamax and New Panamax (or Neopanamax) are terms for the size limits for ships traveling through the Panama Canal. The limits and requirements are published by the Panama Canal Authority (ACP) in a publication titled "Vessel Requirements". ...
and Panamax quay cranes and 44
gantry crane A gantry crane is a Crane (machine), crane built atop a wikt:gantry, 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 wor ...
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 in the city of Santos, state of São Paulo, Brazil. As of 2024, it was thsecond busiest container port in Latin America.In 2022, it was considered the 40th largest port in the world fo ...
, 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 crud ...
(Very Large Crude Oil Carriers) are located at Charco Azul, Chiriquí (Pacific), and Chiriquí Grande, Bocas del Toro (Atlantic) near Panama's western border with Costa Rica. The
Trans-Panama pipeline The Trans-Panama Pipeline () is an oil pipeline across Panama near the Costa Rican border from the port of Chiriqui Grande, Bocas del Toro Province, Bocas del Toro on the Caribbean Sea, 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 a form of precipitation where water drop (liquid), droplets that have condensation, condensed from Water vapor#In Earth's atmosphere, atmospheric water vapor fall under gravity. Rain is a major component of the water cycle and is res ...
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 ...
, due in part to occasional
tropical cyclone A tropical cyclone is a rapidly rotating storm system with a low-pressure area, a closed low-level atmospheric circulation, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain and squalls. Depending on its locat ...
activity nearby; Panama lies outside the Main Development Region. The annual average in Panama City is little more than half of that in Colón. Panama is one of three countries in the world to be carbon-negative, meaning that it absorbs more
carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
than it releases into the atmosphere. The others are
Bhutan Bhutan, officially the Kingdom of Bhutan, is a landlocked country in South Asia, in the Eastern Himalayas between China to the north and northwest and India to the south and southeast. With a population of over 727,145 and a territory of , ...
and
Suriname Suriname, officially the Republic of Suriname, is a country in northern South America, also considered as part of the Caribbean and the West Indies. It is a developing country with a Human Development Index, high level of human development; i ...
.


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 and destruction 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. Ab ...
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 practiced from the northeastern jungles to the southwestern grasslands, consists largely of corn, bean, and tuber plots.
Mangrove swamp Mangrove forests, also called mangrove swamps, mangrove thickets or mangals, are productive wetlands that occur in coastal intertidal zones. Mangrove forests grow mainly at tropical and subtropical latitudes because mangrove trees cannot withs ...
s occur along parts of both coasts, with banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied
rainforest Rainforests are forests characterized by a closed and continuous tree Canopy (biology), canopy, moisture-dependent vegetation, the presence of epiphytes and lianas and the absence of wildfire. Rainforests can be generally classified as tropi ...
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 47 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.
Soberanía National Park Soberanía National Park (''Parque Nacional Soberanía'') is a national park in Panama near the banks of the Panama Canal in the provinces of Panamá Province, Panamá and Colón Province, Colón, some from Panama City. The Chagres River runs t ...
has the greatest diversity of
bird Birds are a group of warm-blooded vertebrates constituting the class (biology), class Aves (), characterised by feathers, toothless beaked jaws, the Oviparity, laying of Eggshell, hard-shelled eggs, a high Metabolism, metabolic rate, a fou ...
s for
birdwatching Birdwatching, or birding, is the observing of birds, either as a recreational activity or as a form of citizen science. A birdwatcher may observe by using their naked eye, by using a visual enhancement device such as binoculars or a telescop ...
, with more than 525 birds inhabiting the area. It also has a variety of
mammal A mammal () is a vertebrate animal of the Class (biology), class Mammalia (). Mammals are characterised by the presence of milk-producing mammary glands for feeding their young, a broad neocortex region of the brain, fur or hair, and three ...
s such as
capybaras The capybara or greater capybara (''Hydrochoerus hydrochaeris'') is the largest living rodent, native to South America. It is a member of the genus ''Hydrochoerus''. The only other extant member is the lesser capybara (''Hydrochoerus isthmiu ...
and coyotes, reptiles like the green iguana, and amphibians such as the cane toad. In May 2022, in order to increase the 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 system, presidential representative democracy, representative democratic republic, whereby the President of Panama is both head of state and head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly of Panama, National Assembly. The judiciary 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 of Panama, National Assembly is elected by proportional representation in fixed electoral districts, so many smaller parties are represented. Presidential elections require a Plurality (voting), 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's military dictatorship in 1989, Panama has completed five peaceful transfers of power to opposing political factions. The political landscape is dominated by two major parties and various smaller parties, many of which are driven by individual leaders more than ideologies. Former president
Martín Torrijos Martín Erasto Torrijos Espino (; born July 18, 1963) is a Panamanian politician who was President of Panama from 2004 to 2009. He was fathered out of wedlock by Panamanian military ruler Omar Torrijos, the '' de facto'' head of Panama from 19 ...
is the son of the general
Omar Torrijos Omar Efraín Torrijos Herrera (February 13, 1929 – July 31, 1981) was the Panamanian military leader of Panama, as well as the Commander of the Panamanian National Guard from 1968 to his death in 1981. Torrijos was never officially ...
. He succeeded
Mireya Moscoso Mireya Elisa Moscoso Rodríguez (born 1 July 1946) is a Panamanian politician who served as the President of Panama from 1999 to 2004. She is the country's first and to date only female president. Born into a rural family, Moscoso became act ...
, the widow of the former president
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 2024 Panamanian general election, national elections took place on May 5, 2024.


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. Panama is the 96th most peaceful country in the world, according to the 2024 Global Peace Index.


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, José Antonio Remón Cantera, José Remón, 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. In an election questioned by independent observers, Remón was declared the president. Less than three years later Remón was assassinated. He was the only president to be assassinated in Panamanian history. Today the Panamanian Public Forces are the national security forces of Panama. Panama is the second country in Latin America (the other being
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
) 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.


Administrative divisions

Panama is divided into ten provinces with their respective local authorities (governors). Each is divided into districts of Panama, districts and corregimientos of panama, ''corregimientos'' (townships). Also, there are six ''Comarcas'' (literally: "Shires") populated by a variety of indigenous groups. Provinces Comarcas


Economy

According to the CIA World Factbook, Panama had an unemployment rate of 2.7 percent. A food surplus was registered in August 2008. On the
Human Development Index The Human Development Index (HDI) is a statistical composite index of life expectancy, Education Index, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income i ...
, Panama ranked 60th in 2015. In more recent years, Panama's economy has experienced a boom, with growth in real gross domestic product (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 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 Panama Canal expansion project, 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 World Bank high-income economy, high-income country, 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 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 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 III, 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 but has agreed to enhanced transparency, especially since the release in 2016 of the Panama Papers. Significant progress has been made to improve full compliance with anti-money laundering recommendations. Panama was removed from the Financial Action Task Force, FATF 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, Central America's largest airport and the hub for Copa Airlines, the flag carrier of Panama. Additionally, there are more than 20 smaller airfields in the country. (See list of airports in Panama). Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in some cases, restricted by local authorities. This usually occurs in shanty towns, informal settlements. Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts. Highways are generally well-developed for a Latin American country. The
Pan-American Highway The Pan-American Highway is a vast network of roads that stretches about 30,000 kilometers (about 19,000 miles) from Prudhoe Bay, Alaska, in the northernmost part of North America to Ushuaia, Argentina, at the southern tip of South America. I ...
travels from north to south through the country, starting at the border with Costa Rica, but ending short of Colombia at an area called the
Darién Gap The Darién Gap (, , ) is a geographic region that connects the Americas, American continents, stretching across southern Panama's Darién Province and the northern portion of Colombia's Chocó Department. Consisting of a large drainage basin, ...
. The Panama City area is well served by the nearly 150 bus routes publicly operated Metrobus (Panama), MiBus system along with the two rapid transit lines of the Panama Metro. Prior to the government operation of bus routes, Panama was served by privately operated buses called "diablo rojos" (English: red devils), which were typically retired school buses from the United States painted in bright colours by their operators. The "diablo rojos" that remain are now mainly used in rural areas.


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, 4.585 billion US dollars entered into the Panamanian economy as a result of tourism. This accounted for 11.34 percent of the gross national product 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 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 Panamanian balboa, balboa, fixed exchange rate, fixed at a rate of 1:1 with the United States dollar since Panamanian independence in 1903. In practice, Panama is Dollarization, dollarized: U.S. dollars are legal tender 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. According to the Economic Commission for Latin America and the Caribbean, Panama's inflation in 2006 was 2.0 percent as measured by a weighted Consumer Price Index. 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. On July 14, 2023, the Supreme Court of Justice declared the bill unenforceable.


International trade

The high levels of Panamanian trade are in large part from the Colón Free Trade Zone, the largest free trade zone in the Western Hemisphere. 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. 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, Panama, Colón metropolitan corridor, which spans several cities. Panama's urban population exceeds 75 percent, making Panama's population the most urbanized in Central America.


Ethnic groups

In 2010 the population was 65 percent Mestizo (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. The Amerindian population includes seven ethnic groups: the Ngäbe, Guna people, Guna, Emberá people, Emberá, Bokota people, Buglé, Wounaan, Naso people, Naso Tjerdi (Teribe), and Bribri people, Bri Bri. Most Afro-Panamanians live on the Panama–Colón, Panama, Colón metropolitan area, the Darién Province, La Palma, Darién, La Palma, and Bocas del Toro Province. Areas in Panama City with significant Afro-Panamian influence Rio Abajo and Casco Viejo. Black Panamanians are descendants of African slaves brought to the Americas in the Atlantic slave trade. The second wave of black people brought to Panama came from the Caribbean during the construction of the Panama Canal. Panama also has a considerable Chinese and Indian population brought to work on the canal during its construction. Most Chinese Panamanians reside in the province of Chiriquí and Chinese Panamanians compose 4% of the population of Panama. Europeans and Demographics of Panama#European Panamanians, White Panamanians are a minority in Panama forming 6.7% of the population. Panama is also home to a small Arab community that has mosques and practices Islam, as well as a Jewish community and many synagogues.


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 Guaymí language, 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.


Religion

Christianity 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, and 25% as evangelical Protestant, or 1,009,740. The Baháʼí Faith community in Panama is estimated at 2% of the national population, or about 60,000 including about 10% of the Guaymí population. The Jehovah's Witnesses were the next largest congregation comprising the 1.4% of the population, followed by the Seventh-day Adventist Church, Adventist Church and the Church of Jesus Christ of Latter-day Saints with 0.6%. Smaller groups include the Buddhist, Jewish, Anglicanism, Episcopalian, Islam in Panama, Muslim and Hindu communities.International Religious Freedom Report 2007: Panama
. United States Bureau of Democracy, Human Rights and Labor (September 14, 2007). ''This article incorporates text from this source, which is in the public domain.''
Indigenous religions include Ibeorgun (among Guna people, Guna) and Mamatata (among Ngäbe). There are also a small number of Rastafarians.


Education

During the 16th century, education in Panama was provided by Jesuits. Public education began in Panama soon after it seceded from Colombia in 1903. The first efforts were guided by a 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 education, compulsory 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 Programme for International Student Assessment, PISA exams, but due to debts and unsatisfactory exam results, it postponed participation until 2018.


Culture

The culture of Panama derives from Music of Europe, European music, European art, art and traditions brought by the Spanish to Panama. Hegemonic forces have created Cross-genre, hybrid forms blending Culture of Africa, African and Indigenous peoples of the Americas, Native American culture with Culture of Europe, European culture. For example, the ''tamborito'' 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 raw materials, which are fired at high temperatures to give them a hard and durable form. The place where such wares are made by a ''potter'' is al ...
, 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 Guna may refer to: People * Guna people, Indigenous peoples of Panama and Colombia Philosophy * Guṇa, a Hindu philosophical concept * Guṇa (Jainism), a philosophical concept Places * Guna district, in Madhya Pradesh, India ** Guna, Indi ...
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

In a 2024 survey, 48% of Panamanians said baseball was their favorite sport, 30% said association football, football (soccer), 4% boxing, chess and tennis. Baseball is the most popular sport in Panama. 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. Football is the second most popular sport in Panama. The top tier of domestic Panamanian football, Liga Panameña de Fútbol, was founded in 1988. The Panama national football team, men's 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. Club competition is played in the Liga de Fútbol Femenino (Panamá), Liga de Fútbol Femenino. The Panama women's national football team, women's national team debuted in the FIFA Women's World Cup, World Cup in 2023 FIFA Women's World Cup, 2023 as the final team to qualify. They joined Group F with Brazil women's national football team, Brazil, Jamaica women's national football team, Jamaica, and France women's national football team, France, where they finished last with three losses but scored three goals against France. Marta Cox scored Panama's first ever goal at a World Cup. 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 the TransPanama Trail is being built from Colombia to Costa Rica. Panama's women's national volleyball team competes in Central America'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. Professional boxers from Panama to be inducted in the International Boxing Hall of Fame include the first Latin American to be a world boxing champion, Panama Al Brown, as well as ismael Laguna, Roberto Duran, Eusebio Pedroza and Hilario Zapata.


See also

* Index of Panama-related articles * Outline of Panama * 2023 in Panama


Notes


References


Further reading

* Buckley, Kevin, ''Panama'', Touchstone, 1992. * Diaz Espino, Ovidio, ''How Wall Street Created a Nation'', Four Walls Eight Windows, 2001. * Gropp, Arthur E. ''Libraries and Archives of Panama: with Information on Private Libraries, Bookbinding, Bookselling, and Printing.'' New Orleans: Middle American Research Institute, Tulane University of Louisiana, 1941. * 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 * * {{Coord, 9, N, 80, W, display=title 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