Panama

Republic of Panama
República de Panamá *(Spanish)*
Republic of Panama República de Panamá (Spanish)
Flag	Coat of arms
	Motto: "Pro Mundi Beneficio" (Latin); "For the Benefit of the World"
	Anthem: Himno Nacional de Panamá (Spanish);
Capital; (and largest city)	Panama City; 8°58′N 79°32′W / 8.967°N 79.533°W
Official languages	Spanish
Ethnic groups	Mestizo 58.1%, Black and Mulatto 14%, Amerindian 6.7%, White 8.6%, Asian 5.5%, other 7.1% (2000)
Demonym	Panamanian
Government	Constitutional Democracy
Independence
Area
Population
GDP (PPP)	2008 estimate
GDP (nominal)	2008 estimate
Gini (2002)	48.5
HDI (2007)	▲ 0.832 (high) (58th)
Currency	Balboa, U.S. dollar; (PAB, USD)
Time zone	(UTC-5)
Drives on the	right
Internet TLD	.pa
Calling code	507

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This article is about the country. For other uses, see Panama (disambiguation).

Panama, officially the Republic of Panama (Spanish: República de Panamá; Spanish pronunciation: [reˈpuβlika ðe panaˈma]), is the southernmost country of Central America and, in turn, North America.^{[clarification needed]} Situated on an isthmus connecting North and South America, some categorize it as a transcontinental nation. It is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. Its size is 75,000 km² with an estimated population of 3,300,000. Its capital is Panama City.

Panama is home to an international business center. Although Panama is only the fourth largest economy in Central America, behind those of Guatemala, Costa Rica and El Salvador,^[3] it is the fastest growing economy and the largest per capita consumer in Central America.^[4]^[5]

[edit] History

Main article: History of Panama

The earliest known inhabitants of Panama were the Cuevas and the Coclé tribes, but they were decimated by disease and fighting when the Spanish arrived in the 1500s.

Rodrigo de Bastidas, sailing westward from Venezuela in 1501 in search of gold, was the first European to explore the isthmus of Panama. A year later, Christopher Columbus visited the isthmus and established a short-lived settlement in the Darien. Vasco Nunez de Balboa'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. 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 the Crosses) because of the abundance of gravesites along the way.

Panama was part of the Spanish empire for 300 years (1538–1821). 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 also spawned Panamanian nationalism as well as a racially complex and highly stratified society, the source of internal conflicts that ran counter to the unifying force of nationalism.

Modern Panamanian history has been shaped by its transisthmian canal, which had been a dream since the beginning of Spanish colonization. From 1880 to 1890, a French company under Ferdinand de Lesseps attempted unsuccessfully to construct a sea-level canal on the site of the present Panama Canal. In November 1903, with U.S. encouragement, Panama proclaimed its independence and concluded the Hay/Bunau-Varilla Treaty with the United States.

The treaty granted rights to the United States "as if it were sovereign" in a zone roughly 10 miles wide and 50 miles long. In that zone, the U.S. would build a canal, then administer, fortify, and defend it "in perpetuity." In 1914, the United States completed the existing 83-kilometer (52 mile) canal. The early 1960s saw the beginning of sustained pressure in Panama for the renegotiation of this treaty.

From 1903 until 1968, Panama was a constitutional democracy dominated by a commercially oriented oligarchy. During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony. In October 1968, Arnulfo Arias Madrid, twice elected president and twice ousted by the Panamanian military, was ousted for a third time as president by the National Guard after only 10 days in office. A military government was established, and the commander of the National Guard, Brigadier General Omar Torrijos, soon emerged as the principal power in Panamanian political life. Torrijos' regime was harsh and corrupt, but his charisma, populist domestic programs, and nationalist (anti-U.S.) foreign policy appealed to the rural and urban constituencies largely ignored by the oligarchy.

Torrijos' death in 1981 altered the tone but not the direction of Panama's political evolution. Despite the 1983 constitutional amendments, which appeared to proscribe a political role for the military, the Panama Defense Forces (PDF), as they were then known, continued to dominate Panamanian political life behind a facade of civilian government. By this time, General Manuel Noriega was firmly in control of both the PDF and the civilian government.

The United States froze economic and military assistance to Panama in the summer of 1987 in response to the domestic political crisis in Panama and an attack on the U.S. Embassy. In April 1988, U.S. President Ronald Reagan invoked the International Emergency Economic Powers Act, freezing Panamanian Government assets in all U.S. 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. By the fall of 1989 the regime was barely clinging to power, and the regime's paranoia made daily existence unsafe for American citizens.

Aftermath of urban warfare during the U.S. invasion of Panama

On December 20, 1989, President George H.W. Bush ordered the U.S. military into Panama to protect U.S. lives and property, to fulfill U.S. treaty responsibilities to operate and defend the Canal, to assist the Panamanian people in restoring democracy, and to bring Noriega to justice. The U.S. troops involved in Operation Just Cause achieved their primary objectives quickly, and Noriega eventually surrendered to U.S. authorities. He completed his sentence for drug trafficking charges in September 2007. In August 2007, a U.S. federal court in Miami found Noriega extraditable to France to serve a sentence imposed there after an in absentia conviction for money laundering. Noriega remains in custody pending the outcome of his legal challenges to the certificate of extraditability issued August 2007.

Panama's Electoral Tribunal moved quickly to rebuild the civilian constitutional government, reinstated the results of the May 1989 election on December 27, 1989, and confirmed the victory of President Guillermo Endara and Vice Presidents Guillermo Ford and Ricardo Arias Calderon.

During its 5-year term, the often-fractious Endara 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 Perez Balladares was sworn in as President on September 1, 1994, after an internationally monitored election campaign.

Perez Balladares ran as the candidate for a three-party coalition dominated by the Democratic Revolutionary Party (PRD), the erstwhile political arm of military dictatorships. Perez Balladares worked skillfully during the campaign to rehabilitate the PRD's image, emphasizing the party's populist Torrijos roots rather than its association with Noriega. He won the election with only 33% of the vote when the major non-PRD forces splintered into competing factions. His administration carried out economic reforms and often worked closely with the U.S. on implementation of the Canal treaties.

On September 1, 1999, Mireya Moscoso, the widow of former President Arnulfo Arias Madrid, took office after defeating PRD candidate Martin Torrijos, son of the late dictator, 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. Since taking office, Torrijos has passed a number of laws making the government more transparent. He formed a National Anti-Corruption Council whose members represent the highest levels of government, as well as civil society, labor organizations, and religious leadership. In addition, many of his closest Cabinet ministers are non-political technocrats known for their support for the Torrijos government's anti-corruption aims. Despite the Torrijos administration's public stance on corruption, few high-profile cases, particularly involving political or business elites, have been acted upon.

[edit] Politics

Main article: Politics of Panama

Panama's politics take place in a framework of a presidential 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. The judiciary is independent of the executive and the legislature.

All national elections are universal and mandatory to all citizens 18 years and older. National elections for the executive and legislative branches take place every five years. Members of the judicial branch are appointed by the head of state. Panama's National Assembly is elected by proportional representation in fixed electoral districts, so many smaller parties are represented. Presidential elections do not require a simple majority, and Panama's last three presidents were elected with the support of only 30-40% of voters.

Since the U.S. invasion and the end of the 21-year military dictatorship, Panama has successfully completed three peaceful transfers of power to opposing political factions. The political landscape is dominated by two major parties and many smaller parties, many of which are driven by individual leaders more than ideologies. President Martin Torrijos is the son of former military dictator Omar Torrijos. He succeeded Mireya Moscoso, the widow of Arnulfo Arias. Panama's next national elections are scheduled for May 3, 2009.

[edit] Provinces and regions

Main articles: Provinces and regions of Panama and List of cities in Panama

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

[edit] Geography

The nine provinces and three provincial-level comarcas of Panama

Main article: Geography of Panama

Panama is located in Central America, bordering both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. Its location on the Isthmus of Panama is strategic. By 2000, Panama controlled the Panama Canal that links the North Atlantic Ocean via the Caribbean Sea with the North Pacific Ocean.

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

The mountain range of the divide is called the Cordillera de Talamanca near the Costa Rican border. Farther east it becomes the Serranía de Tabasará, and the portion of it closer to the lower saddle of the isthmus, where the canal is located, is often called the Sierra de Veraguas. As a whole, the range between Costa Rica and the canal is generally referred to by geographers as the Cordillera Central.

The highest point in the country is the Volcán Barú (formerly known as the Volcán de Chiriquí), which rises to 3,475 meters (11,401 ft). A nearly impenetrable jungle forms the Darien Gap between Panama and Colombia. It creates a break in the Pan-American Highway, which otherwise forms a complete road from Alaska to Patagonia.

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 24°C and the afternoon maximum 29°C. The temperature seldom exceeds 32°C 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 in western Panama. Climatic regions are determined less on the basis of temperature than on rainfall, which varies regionally from less than 1.3 to more than 3 meters 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. The annual average in Panama City is little more than half of that in Colón. Although rainy-season thunderstorms are common, the country is outside the hurricane track.

Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Although nearly 40 percent of Panama is still wooded, deforestation 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 swamps occur along parts of both coasts, with banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied rain forest abuts the swamp on one side of the country and extends to the lower reaches of slopes in the other.

[edit] Economy

Main article: Economy of Panama

A Panamax ship in transit through the Miraflores locks, Panama Canal

According to the CIA World Factbook, Panama has an unemployment rate of 6.4%. According to the ECLAC,^[6] the poverty rate is 28.6% as of 2006, comparable to that of wealthier nations such as Argentina. Also, an alimentary surplus was registered in August 2008, and infrastructure works are progressing rapidly. The International Monetary Fund has predicted that Panama will be the fastest growing economy in Latin America in 2009. ^[7] It was the second fastest growing economy in Latin America in 2008, after Peru.

Panama's economy is mainly service-based, heavily weighted toward banking, commerce, tourism, trading and private industries, because of its key geographic location. The handover of the Canal and military installations by the United States has given rise to some construction projects. A referendum regarding the building of a third set of locks for the Panama Canal was approved overwhelmingly (though with low voter turnout) on 22 October 2006. The official estimate of the building of the third set of locks is US$5.25 billion. The canal is of economic importance since it pumps millions of dollars from toll revenue to the national economy and provides massive employment. The United States had a monopoly over the Panama Canal for 85 years. However, the Torrijos-Carter Treaties signed in 1977 began the process of returning the canal to the Panamanian government in 1999.

The Panamanian currency is officially the balboa, fixed at parity with the United States dollar since independence in 1903. In practice, however, the country is dollarized; Panama has its own coinage but uses U.S. dollars for all its paper currency. According to the Economic Commission for Latin American and the Caribbean, Panama's inflation as measured by weight CPI was 2.0% in 2006.^[8] Panama has traditionally experienced low inflation, as it shares currencies with the U.S.

Traditional coffee-drying at the Alto Boquete plant of Cafe Ruiz

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% of Panama's exports and 64% of its imports, according to an analysis of figures from the Colon zone management and estimates of Panama's trade by the United Nations Economic Commission for Latin America and the Caribbean. Panama's economy is also very much supported by the trade and exportation 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 U.S. investment and assists Panama in its efforts to develop its economy by creating conditions more favorable for U.S. private investment and thereby strengthening the development of its private sector. The BIT with Panama was the first such treaty signed by the U.S. in the Western Hemisphere.^[9] A Trade Promotion Agreement between the United States and Panama was signed by both governments in 2007, but neither country has yet approved or implemented the agreement.^[10]

[edit] Demographics

Kuna woman sewing

Main article: Demographics of Panama

Panama had a population of 3,309,679 in 2008. As of the year 2000, the majority of the population, 58.1%, was Mestizo. Blacks and Mulattos were together the largest minority, accounting for 14%. For the remaining groups the percentages were: Amerindian 6.7%, White 8.6%, Asian 5.5%, and other 7.1%.^[1] The Amerindian population includes seven indigenous peoples: the Emberá, Wounaan, Guaymí, Buglé, Kuna, Naso and Bribri. More than half the population lives in the Panama City–Colón metropolitan corridor.^{[citation needed]}

The culture, customs, and language of the Panamanians are predominantly Caribbean and Spanish. Spanish is the official and dominant language. About 40% of the population speak various English Creoles, mostly in Panama City and in the islands off the northeast coast.^[11]^[12] English is spoken widely on the Caribbean coast and by many in business and professional fields.

Panama, because of its historical reliance on commerce, is above all a melting pot. This is shown, for instance, by its considerable population of Afro-Antillean and Chinese origin. The first Chinese immigrated to Panama from southern China to help build the Panama Railroad in the 19th century. They were followed by several waves of immigrants whose descendants number around 50,000. Starting in the 1970s, a further 80,000 have immigrated from other parts of mainland China as well.^[13]^[14] Most of the Panamanian population of West Indian descent owe their presence in the country to the monumental efforts to build the Panama Canal in the late 19th and early 20th centuries.

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

Colón's Christ Church by the Sea

The most common religion in Panama is Roman Catholicism – various sources estimate that 75-85% of the population identifies itself as Roman Catholic and 15-25% percent as evangelical Christian.^[15] The Bahá'í Faith community of Panama is estimated at 2.00% of the national population, or about 60,000^[16] and is home to one of the seven Baha'i Houses of Worship.^[15] Smaller religious groups include Jewish and Muslim communities with approximately 10,000 members each, and small groups of Hindus, Buddhists and Rastafarians.^[15] Indigenous religions include Ibeorgun (among Kuna) and Mamatata (among Ngobe).^[15]

[edit] Culture

Main article: Culture of Panama

The culture of Panama derived from European music, art and traditions that were brought over by the Spanish to Panama. Hegemonic forces have created hybrid forms of this by blending African and Native American culture with European culture. For example, the tamborito is a Spanish dance that was blended with Native American rhythms, themes and dance moves. Dance is a symbol of the diverse cultures that have coupled in Panama. The local folklore can be experienced through a multitude of festivals, dances and traditions that have been handed down from generation to generation. Local cities host live Reggae en Español, Cuban, Reggaeton, Kompa, Colombian, jazz, blues, salsa, reggae and rock performances. Outside of Panama City, regional festivals take place throughout the year featuring local musicians and dancers. Another example of Panama’s blended culture is reflected in the traditional products, such as woodcarvings, ceremonial masks and pottery, as well as in its architecture, cuisine and festivals. In earlier times, baskets were woven for utilitarian uses, but now many villages rely almost exclusively on the baskets they produce for tourists.

An example of undisturbed, unique culture in Panama stems from the Kuna Indians who are known for molas. Mola is the Kuna Indian word for blouse, but the term mola has come to mean the elaborate embroidered panels that make up the front and back of a Kuna woman's blouse. Molas are works of art created by the women of the Central American Cuna (or Kuna) tribe. They are several layers of cloth varying in color that are loosely stitched together made using an appliqué process referred to as "reverse appliqué".