Panama

Panama, Span. Panamá, officially Republic of Panama, republic (2005 est. pop. 3,039,000), 29,760 sq mi (77,081 sq km), occupying the Isthmus of Panama, which connects Central and South America. To the west and east of Panama, respectively, are Costa Rica and Colombia; the Panama Canal bisects the country. The capital and largest city is Panama City.

Land and People

In the west are rugged mountains (Volcán Barú is 11,401 ft/3,475 m high) of volcanic origin, which yield in the middle of the country to low hills; there is a low mountain range in the east. Lowlands line both the Caribbean and Pacific coasts, and there are numerous offshore islands. The climate is generally tropical with abundant rainfall. Colón, a major port, is the second largest city, and David is the third largest city. More than half the population is urban. The population is primarily mestizo, although the building of the canal brought large numbers of people from the West Indies and other parts of the world, many of whom stayed and intermarried with the indigenous population. Spanish is the official language, and many Panamanians also speak English. About 85% of the population is Roman Catholic; there is a Protestant minority.

Economy

Panama's economy has become largely service-based, with the operation of the Panama Canal, banking, insurance, container ports, flagship registry, and tourism all playing important roles. Less than a quarter of the land is used for agriculture. On the upland savannas cattle are grazed and subsistence crops such as rice, corn, coffee, and sugarcane are grown. Bananas are grown on the Pacific coast. The country has various light industries, including construction, brewing, and sugar milling. The Colón Free Zone, established in 1953, is a center for foreign investment in manufacturing.

Bananas are the leading export, followed by shrimp, sugar, coffee, and clothing. Capital goods, foodstuffs, consumer goods, and chemicals are imported. Much of the trade is with the United States. In recent years the country has become a nexus for the shipment of illegal drugs from Colombia to the United States, as well as a center for drug-related financial transactions.

Government

Panama is governed under the constitution of 1972 as amended. Executive power is held by the president, who is both head of state and head of government and is popularly elected for a five-year term. A person may serve three terms as president. The unicameral National Assembly has 78 members who are also elected for five years. Administratively the country is divided into nine provinces, plus an autonomous territory for indigenous people.

History

Early History and Spanish Control

Panama was densely inhabited by different indigenous peoples before the arrival of the Spanish. The first European sighting of Panama was by the Spaniard Rodrigo de Bastidas in 1501, and Columbus dropped anchor off the present-day Portobelo in 1502. Martín Fernández de Enciso and Diego de Niuesa failed in their efforts at colonization in Darién. Vasco Núñez de Balboa established the first successful colony in 1510 and became governor of the region. The indigenous population was soon devastated by the Spanish and by the diseases they carried from Europe.

In 1513, Balboa made his momentous voyage across the isthmus to the Pacific, thus highlighting the dominant factor in the nation's history—the short distance from sea to sea. Under the governorship of Pedro Arias de Ávila, Panama City was founded (1519). Soon the isthmus became the route by which the treasures of the Inca empire were transferred to Spain, attracting the unwelcome attention of English buccaneers—such as Sir Francis Drake, William Parker, Sir Henry Morgan, and Edward Vernon—who swooped down on the gold-bearing galleons and the treasures of Portobelo. Panama was subordinated to the viceroyalty of Peru and remained in this status until 1717, when it was transferred to New Granada.

Attempts at Scottish settlement in the Darién Scheme of the 17th cent. failed wretchedly. With the decline of the Spanish Empire, Panama lost much of its importance in the carrying trade. Panama became a part of independent Colombia in 1821. Its significance as a crossroad was enhanced again when U.S. settlers bound for Oregon and the goldfields of California passed through Panama. W. H. Aspinall built (1848-55) the Panama RR, and the question of a canal across the isthmus became paramount. The project ultimately led to a revolution against Colombian sovereignty and the establishment of Panama as a separate republic (see Panama Canal).

Independence, the United States, and the Canal

The new state, proclaimed in Nov., 1903, was under the aegis of the United States, and the canal and American interests in it became the determinants of Panama's history. The Hay-Bunau-Varilla Treaty with the United States established the Panama Canal Zone, controlled by the United States, and authorized U.S. intervention in Panamanian affairs if necessary to protect the zone. The internal politics of the republic have been stormy, with frequent changes of administration. U.S. forces were landed in 1908, 1912, and 1918. A controversial figure in Panamanian politics was Arnulfo Arias who was elected president in 1940 and ousted a year later for being pro-Fascist. He seized power in 1949 but was overthrown in 1951. José Antonio Remón, elected in 1952, was assassinated in 1955; Ernesto de la Guardia, Jr., inaugurated the following year, survived disturbances in 1958 and 1959.

In the meantime, a new canal treaty was concluded in 1955, as political unrest developed in Panama over the Canal Zone issue. In 1958 and again in 1960 further steps were taken to assuage Panamanian discontent by establishing uniform wages and employment opportunities in the Canal Zone and by reaffirming Panama's titular sovereignty over the zone. Roberto F. Chiari, a conservative landowner, was elected president in 1960. Marco A. Robles defeated Arias for the presidency in 1964. When U.S. high-school students illegally displayed an American flag in the Canal Zone (Jan., 1964), serious riots broke out. Diplomatic relations between Panama and the United States were briefly suspended. New treaties were negotiated (1967), providing for Panamanian sovereignty over the Canal Zone, joint operation of the canal, and possible construction of a new, sea-level canal, but Panama refused to ratify them (1970).

In early 1974 Panama and the United States agreed in principle for the first time to the eventual end of U.S. jurisdiction over the canal and the Canal Zone. Arias was again elected president in Oct., 1968, but was deposed 11 days later in a military coup. Gen. Omar Torrijos Herrera emerged as the dominant figure shortly thereafter. Torrijos conducted enormous public works projects that gained him considerable popularity while plunging the country into debt. In 1977, he concluded a treaty with the United States that provided for a gradual transfer of jurisdiction over the Canal Zone and the canal to Panama by the end of 1999. A second treaty guaranteed the permanent neutrality of the canal.

The Noriega Years and Modern Panama

After the death of Torrijos in a plane crash in 1981, Colonel Manuel Antonio Noriega Moreno slowly gained power, and in 1983 he took complete control of the national guard and of the country. Throughout the 1980s Noriega manipulated elections, ruling Panama through presidents who were mostly mere puppets. In 1987 a former officer of the Panamanian Defense Force (the expanded National Guard) publicly accused Noriega of ordering the murder of a prominent political opponent, manipulating election results, and engaging in drug smuggling with Colombian drug producers. As a result, the United States imposed strict sanctions that severely damaged Panama's economy and resulted in large protests against Noriega in Panama City.

On Dec. 15, 1989, the Panamanian legislature declared Noriega president and proclaimed that the United States and Panama were in a state of war. The same day a U.S. marine was killed by Panamanian soldiers. On Dec. 20, the United States attacked Panama City with a combined military force of more than 25,000 soldiers in an effort to remove Noriega from power.

Noriega surrendered on Jan. 3, 1990, and was taken to the United States, where he was later tried, convicted, and jailed on charges of drug trafficking. Guillermo Endara Galimany, elected to the presidency in May, 1989, but prevented by Noriega from taking office, was sworn into office during the invasion. The invasion resulted in considerable loss of life as well as significant damage to Panama City. In 1994, Ernesto Pérez Balladares, a former associate of Torrijos and the candidate of the political party that had once supported but later repudiated Noriega, won the presidential election. He introduced a sweeping economic reform plan and pledged to fight corruption and drug trafficking. In Oct., 1994, the constitution was amended to abolish Panama's military. Mireya Moscoso Rodríguez, a coffee company owner and the widow of Arnulfo Arias, was elected president in 1999. Martin Torrijos Espino, who had lost to Moscoso in 1999, was elected president in 2004. He is the son of Gen. Omar Torrijos. In 2006 Panamanian voters approved an expansion of the Panama Canal that would add an third, larger set of locks to the existing canal; construction is planned for 2008-14. The presidential election in May, 2009, was won by Ricardo Martinelli, one of Panama's wealthiest persons; a pro-business conservative, he was the candidate of the multiparty Alliance for Change.

Panama, city (1990 pop. 584,803), central Panama, capital and largest city of Panama, on the Gulf of Panama. Founded in 1519 by Pedro Arias de Ávila, the city flourished in early colonial times as the Pacific port of transshipment of Andean riches to Spain. After it was destroyed in 1671 by Sir Henry Morgan, it was refounded (1673) 5 mi (8.1 km) west on a rocky peninsula. The city declined as the Andean sources of gold disappeared but revived briefly during the California gold rush and the building (1848-55) of the trans-Panama railroad. Construction of the Panama Canal brought assured prosperity, and American sanitary measures and disease control made Panama a clean and healthful tropical city. The political, social, and cultural nucleus of the nation, it expanded rapidly after World War II into a polyglot metropolis, creating new residential districts, improved recreational facilities, and such educational centers as the Univ. of Panama (founded 1935), important because of its inter-American organization and curriculum. Panama City is no longer a port; commerce is handled through neighboring Balboa. Although the city has a diverse manufacturing base, its primary economic activities are providing services for the canal employees and serving as a center for international banking. The city has had a reputation as a drug transshipment point between South America and the United States and as a center for money-laundering. In Dec., 1989, Panama City was invaded by U.S. troops (see Panama), resulting in serious municipal damage and substantial civilian casualties. Panama City continues to experience rapid growth and ensuing social problems.

City (pop., 2000: 415,964), capital of Panama. Near the Pacific Ocean entrance of the Panama Canal, on the Bay of Panama, the site was originally an Indian fishing village. The old city was founded in 1519 but was completely destroyed by British buccaneer Henry Morgan in 1671. It was rebuilt in 1674 just west of the old site. In 1751 the area became part of the Viceroyalty of New Granada and later part of Colombia. It was the centre of the Panamanian revolt against Colombia in 1903, when it became the capital of Panama. After the canal opened in 1914, the city developed rapidly, becoming the commercial and transportation centre of the country. The economy depends largely on revenue from canal traffic and associated services.

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or Panama Canal Zone

Strip of territory, a historic administrative entity in Panama over which the U.S. formerly exercised jurisdictional rights (1903–79). The zone came into being in 1904 when Panama granted the U.S., in return for annual payments, sole right to operate and control the Panama Canal, including a strip of land 10 mi (16 km) wide along the canal extending from the Atlantic to the Pacific Ocean and bisecting the Isthmus of Panama. The zone was abolished by treaty in 1979, and civil control of the territory was returned to Panama. By the same treaty a commission under joint U.S.-Panamanian ownership was established to operate the canal until the year 2000, when Panama assumed full control.

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Lock-type canal, Panama. Extending across the Isthmus of Panama, it connects the Atlantic and Pacific oceans. It is about 50 mi (82 km) long from deepwater to deepwater, with an average depth of 43 ft (13 m). The width varies between 500 to 1,000 ft (150 to 300 m). In 1881 a French company began constructing the canal, but the enterprise collapsed in 1889. Under a 1903 treaty Panama granted the U.S. the Panama Canal Zone and the rights to build and operate a canal. Work began in 1904; facing enormous obstacles, George Washington Goethals directed the construction from 1907, and the canal opened on Aug. 15, 1914. The canal enabled ships traveling between the two oceans to avoid the lengthy circumnavigation of South America and was a boon to world commerce. After disputes over sovereignty, a 1977 treaty provided for Panama to take control of the canal by 2000; it did so in 1999. Except for small craft, no vessel can pass through the canal under its own power. Ships are towed by electric locomotives, and it generally takes 15–20 hours to complete the passage (including waiting time). Sets of double locks enable ships to pass in opposite directions simultaneously.

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officially Republic of Panama

Country, Central America. It is bounded by the Caribbean Sea to the north and the Pacific Ocean to the south. Area: 28,973 sq mi (75,040 sq km). Population (2005 est.): 3,140,000. Capital: Panama City. Most of the people are of mixed heritage (primarily Indian-European and African-European). Languages: Spanish (official), English, indigenous Indian languages. Religion: Christianity (predominantly Roman Catholic; also other Christians). Currency: balboa. Panama consists of three distinct areas: the lowlands (“hot lands”; nearly nine-tenths of the country), the temperate lands, and the highlands (“cold lands”). It has a market economy based on services, mostly transportation, communications, and storage connected with the Panama Canal as well as international banking and tourism. It is a republic with one legislative house; its head of state and government is the president, assisted by vice presidents. The land was inhabited by Indians when the Spanish arrived in 1501. The first successful Spanish settlement was founded by Vasco Núñez de Balboa in 1511. Panama was part of the Viceroyalty of New Granada until it declared its independence from Spain in 1821 to join Colombia. In 1903 it revolted against Colombia and was recognized by the U.S., to whom it ceded the Canal Zone. The completed canal was opened in 1914; control of the canal passed to a joint U.S.-Panamanian commission in 1979. An invasion by U.S. troops in 1989 overthrew the de facto ruler, Gen. Manuel Noriega. In 1999 the country elected its first female president, Mireya Moscoso, and later that year the canal came under the full control of Panama.

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Panama, officially the Republic of Panama (República de Panamá; ), is the southernmost country of Central America. Situated on an isthmus, some categorize it as a transcontinental nation connecting the north and south part of America. It is bordered by Costa Rica to the north-west, Colombia to the south-east, the Caribbean Sea to the north and the Pacific Ocean to the south. It is an international business center and is also a transit country. Although Panama is also the third largest economy in Central America, after Guatemala and Costa Rica, it has the largest expenditure on resource consumption, making the country the largest consumer in Central America.

Pre-Columbian heritage of native populations whose presence stretched back over 11,000 years. The earliest traces of these indigenous peoples include fluted projectile points. This changed into significant populations that are best known through the spectacular burials of the Conte site (dating to c. AD 500–900) and the polychrome pottery of the Coclé style. The monumental monolithic sculptures at the Barriles (Chiriqui) site were another important clue of the ancient isthmian cultures. Prior to the arrival of Europeans, Panama was widely settled by Chibchan, Chocoan, and Cueva peoples, among whom the largest group were the Cueva. There is no accurate knowledge of size of the indigenous population of the isthmus at the time of the European conquest. Estimates range as high as two million people, but more recent studies place that number closer to 200,000.

Colonial Panama: discovery, conquest and decay

Christopher Columbus arrives in Panama on his fourth travel, which started in Nicaragua and ended in Panama. It is in this trip he discovers the Chagres river, which in the 20th Century it would be the main resource to build the Panama Canal. He arrived to the Caribbean coast where he baptized the area with the name of Portobelo (in English, Beautiful Port). Columbus then explored Veraguas and founded Santa Maria de Belen, which would be the first Spanish settlement on the continent, leaving Bartolome, his brother, in charge. Eventually, this settlement was destroyed by the local native population and the few surviving members returned to Spain.

Founding of Panama La Vieja

It wasn´t until 1519 when the Spanish decided to settle the new city. This time they chose a site in the Pacific ocean, which was discovered six years before by Vasco Nuñez de Balboa. The new city, today known as Panama La Vieja, was founded in August 15th, 1519 by orders of governor Pedrarias Davila and became an important port during the Spanish gold trade from Peru to the Caribbean islands and finally to Europe. The merchandise from all over South America would come into Panama and travel to Portobelo using the Camino de Cruces (old stone road) crossing the jungle and navigating the Chagres river. From Portobelo it would distribute to the islands and then to Spain.

Because of its importance and its location the city was an easy target for pirates. However, protection from pirates was only one of its many problems, as it was settled in a site composed mainly by mangrove land, diseases and fires weakened their position, until it was finally destroyed by pirate Henry Morgan in 1671.

Founding of Casco Antiguo

In 1673 a new city of Panama was founded. This time, a rocky peninsula was chosen, still on the Pacific side. A healthier site with crossed winds and easier to defend from both land and ocean attacks. Called interchangeably Casco Viejo, San Felipe, Catedral or Casco Antiguo, it is from here where Panama would declare independece from Spain and later join and separate from Colombia. It will see the boom and bust of the Gold Rush, the French attempt to build a Canal and later its completion by the United States.

Independence

After about 320 years under the rule of the Spanish Empire, on 10 November 1821, independence from Spain was declared in the small town of La Villa, today known as La Heroica. On 28 November, presided by Colonel Jose de Fabrega, a National Assembly was convened and it officially declared the independence of the isthmus of Panama from Spain and its decision to join New Granada, Ecuador and Venezuela in Bolivar's recently founded Republic of Colombia.

In 1830, Venezuela, Ecuador and other territories left the Gran Colombia, but Panama remained as a province of this country, until July 1831 when the isthmus reiterated its independence, now under General Juan Eligio Alzuru as supreme military commander. In August, military forces under the command of Colonel Tomás Herrera defeated and executed Alzuru and reestablished ties with New Granada.

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

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

In 1902 US President Theodore Roosevelt decided to take on the abandoned works of the Panama Canal by the French but the Colombian government in Bogotá balked at the prospect of a US controlled canal under the terms that Roosevelt's administration was offering. Roosevelt was unwilling to alter its terms and quickly changed tactics, encouraging a minority of Conservative Panamanian landholding families to demand independence, offering military support. On November 3, 1903 Panama finally separated and Dr. Manuel Amador Guerrero, a prominent member of the Conservative political party, became the first constitutional President of the Republic of Panama.

In November 1903, Phillipe Bunau-Varilla—a French citizen who was not authorized to sign any treaties on behalf of Panama without the review of the Panamanians—unilaterally signed the Hay-Bunau Varilla Treaty which granted rights to the US to build and administer indefinitely the Panama Canal, which was opened in 1914. This treaty became a contentious diplomatic issue between the two countries, reaching a boiling point on Martyr's Day (9 January 1964). The issues were resolved with the signing of the Torrijos-Carter Treaties in 1977 returning the former Canal Zone territories to Panama.

Military dictators

The second intent of the founding fathers was to bring peace and harmony between the two major political parties (Conservatives and Liberals). The Panamanian government went through periods of political instability and corruption, however, and at various times in its history, the mandate of an elected president terminated prematurely. In 1968, a coup toppled the government of the recently elected President Arnulfo Arias Madrid.

While never holding the position of President himself, General Omar Torrijos eventually became the de facto leader of Panama. As a military dictator, he was the leading power in the governing military junta and later became an autocratic strong man. Torrijos maintained his position of power until his death in an airplane accident in 1981.

After Torrijos's death, several military strong men followed him as Panama's leader. Commander Florencio Flores Aguilar followed Torrijos. Colonel Rubén Darío Paredes followed Aguilar. Eventually, by 1983, power was concentrated in the hands of General Manuel Antonio Noriega.

Manuel Noriega came up through the ranks after serving in the Chiriquí province and in the city of Puerto Armuelles for a time. He was a former head of Panama's secret police and was an ex-informant of the CIA. But Noriega's implication in drug trafficking by the United States resulted in difficult relations by the end of the 1980s.

United States invasion of Panama

On 20 December 1989, 27,000 U.S. personnel invaded Panama in order to remove Manuel Noriega. A few hours before the invasion, in a ceremony that took place inside a U.S. military base in the former Panama Canal Zone, Guillermo Endara was sworn in as the new President of Panama. The invasion occurred ten years before the Panama Canal administration was to be turned over to Panamanian authorities, according to the timetable set up by the Torrijos-Carter Treaties. During the fighting, between two hundred and four thousand Panamanians, mostly civilians, were killed.

Noriega surrendered to the American military shortly after, and was taken to Florida to be formally extradited and charged by U.S. federal authorities on drug and racketeering charges. He became eligible for parole on September 9, 2007, but remained in custody while his lawyers fought an extradition request from France. Critics have pointed out that many of Noriega's former allies remain in power in Panama.

Post-invasion

Under the Torrijos-Carter Treaties, the United States turned over all canal-related lands to Panama on 31 December 1999. Panama also gained control of canal-related buildings and infrastructure as well as full administration of the canal.

The people of Panama have already approved the widening of the canal which, after completion, will allow for post-Panamax vessels to travel through it, increasing the number of ships that currently use the canal.

Politics

Panama's politics takes 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.

Provinces and regions

Geography

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 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 Panamanian 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 3475 meters (11401 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.

Economy

According to the CIA World Factbook, Panama has an unemployment rate of 6.4% and according to the ECLAC, the poverty rate is of 40% as of 2006, comparable to that of wealthier nations such as Argentina. However, the Third World infrastructure and low standards of living shows Panama's weakening and troubled economic at a very low point in history.

Panama's economy is mainly service-based, heavily weighted toward banking, commerce, tourism, trading and private industries because of its key geographic location. Another factor that have caused many problems to this already troubled economy is the overwhelming increase in criminal activities throughout the country specially in the city, from murders, arm robberies, rapes to careless car accidents all over the country. The handover of the canal and military installations by the United States has given rise to some construction projects. The Martín Torrijos administration has undertaken controversial structural reforms, such as a fiscal reform and a very difficult Social Security Reform. Furthermore, a referendum regarding the building of a third set of locks for the Panama Canal was approved overwhelmingly (though with low voter turnout) on 22 October 2006. The official estimate of the building of the third set of locks is US$5.25 billion.

The Panamanian currency is the balboa, fixed at parity with the United States dollar. In practice, however, the country is dollarized; Panama mints its own coinage but uses US dollars for all its paper currency. Panama was the first of the three countries in Latin America to have dollarized their economies, later followed by Ecuador and El Salvador.

Globalization

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 (ECLAC). Panama's economy is also very much supported by the trade and exportation of coffee.

Inflation

According to the Economic Commission for Latin American and the Caribbean (ECLAC, or CEPAL by its more-commonly used Spanish acronym), Panama's inflation as measured by weight CPI was 2.0 percent in 2006. Panama has traditionally experienced low inflation.

Real estate

Panama City was experiencing a real estate boom until recently. Tourists and retirees were arriving in greater quantities and consequently helping the local real estate market. Close to twenty-thousand Americans were choosing Panama as their retirement home in the upcoming years and this will be key in the development for the country which already has about three million people. A hot and humid weather and not to low of a cost of living along with an unstable economy have served as difficult points for this once promising market. The government of Panama has made many attempts to put together a very liberal package for the retirees offering tax exemptions, discounts on transportation and meals with no positive results.

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

Tourism

Along with real estate, tourism is one of Panama´s rising economic activities. Small and amazingly diverse, Panama makes it possible for a traveler to visit not only two different oceans in one day, but be able to combine in less than a week a diversified natural experience (white sand beaches, cloud or rain forest, mountains or valleys) with a wide range of cultural experiences (seven Indian tribes, Afroantillian and Spanish Colonial culture, several historic monuments and a 300 year old World Heritage Site called Casco Antiguo (often referred as Casco Viejo, Panama Viejo, San Felipe or Catedral) ). In recent years the North Western and North Eastern regions of Panama have drawn increasing amounts of tourism to the beaches, rain forests and Caribbean areas all within easy reach of popular Costa Rica. Bocas Del Toro, Boquete, and the surfing areas of the west coast are now huge tourist draws. David has become a cross roads for backpacking international tourists and has seen an increase in backpacker hostels. In the city of Panama visitors can spot an interesting Native American group. This group usually includes older women covered in colorful beads and decorative paintings on their faces. Besides spotting the natives, there is a resort called Decameron that brings visitors from all around the world. This resort contains an open bar, and a few buffet-style dining areas. Aerobic and scuba classes can be taken while visiting the resort.

Bilateral Investment Treaty with the U.S.

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

The importance of Panama to the U.S. stems from the Panama Canal which was built by the U.S. during the period of 1904–1914. Previously, if ships wanted to pass through the Americas, they would have to go all the way around the most southern tip of South America, the Tierra del Fuego, and through the Drake Passage. The Panama Canal connects the Atlantic and Pacific Oceans directly at the narrowest point in Panama. When previously a ship going from New York to San Francisco would have to travel for 20,900 kilometers (13,000 miles), now that travel time would be reduced to 8370 km (5200 mi).

The canal is of economic importance since it provides millions of dollars from toll revenue as well as a right to include and exclude any other nation or company from using it. The United States had complete monopoly over the Panama Canal for 85 years. However, the Torrijos-Carter Treaties signed in 1977 began the process of returning the canal to the Panamanian government in 1999 as long as they agreed to the neutrality of the canal, as well as allowing the U.S. to return at any time.

Proposed Free Trade Agreement with the United States

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. While the U.S. Congress was initially favorably disposed to the Panama pact, the election of the anti-American Pedro González, and his possible link with to the assassination of US soldier Zak Hernández, to the presidency of the Panamanian legislature on September 1, 2007 has halted progress of the pact in that body.

Demographics

According to the CIA World Factbook, Panama has a population of 3,309,679. The majority of the population, 70% is mestizo. The rest is 14% Amerindian and mixed West Indian, 10% white and 6% Amerindian. 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.

The culture, customs, and language of the Panamanians are predominantly Caribbean and Spanish. Spanish is the official and dominant language. About 40 percent of the population speak creole, mostly in Panama City and in the islands off the northeast coast. 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 Chinese origin. Many Chinese immigrated to Panama from southern China to help build the Panama Railroad in the 19th century; their descendants number around 50,000. Starting in the 1970s, a further 80,000 have immigrated from other parts of mainland China as well.

The country is also 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). However, since Panama has a higher birth rate, it is likely that in the coming years its population will surpass Uruguay's.

Religion

The overwhelming majority of Panamanians are Roman Catholic – various sources estimate that 75 to 85 percent of the population identifies itself as Roman Catholic and 15 to 25 percent as evangelical Christian. The Bahá'í Faith community of Panama is estimated at 2.00% of the national population, or about 60,000 including about 10% of the Guaymí population and the Bahá'ís maintain one of the world's seven Baha'i Houses of Worship in Panama which is perched on a high hill facing the canal, and is constructed of local mud bricks laid in a pattern reminiscent of Native American fabric designs. Smaller religious groups include Jewish and Muslim communities with approximately 10,000 members each, and small groups of Hindus, Buddhists and Rastafarians. Indigenous religions include Ibeorgun (among Kuna) and Mamatata (among Ngobe).

The Jewish community in Panama, with over 10,000 members, is by far the biggest in the region (including Central America and the Caribbean). Jewish immigration began in the late 19th century, and at present there are three synagogues in Panama City, as well as four Jewish schools. Within Latin America, Panama has one of the largest Jewish communities in proportion to its population, surpassed only by Uruguay, Argentina, Brazil, and Mexico. Panama is also the first country in Latin America to have a Jewish president, Eric Arturo Delvalle.

International rankings

Index (Year)	Author / Editor / Source	Year of publication	Countries sampled	World Ranking (1)	Ranking L.A.(2)
Environmental Performance (2008)	Yale University	2008	149	32º	5º
Democracy (2006)	The Economist	2007	167	44º	5º
Global Peace (2008)	The Economist	2008	140	48º	4º
Economic Freedom (2008)	The Wall Street Journal	2008	157	46º	3º
Quality-of-life (2005)	The Economist	2007	111	47º	7º
Travel and Tourism Competitiveness (2008)	World Economic Forum	2008	130	50º	3º
Press Freedom (2007)	Reporters Without Borders	2007	169	54º	5º
Global Competitiviness (2007)	World Economic Forum	2007–08	131	59º	3º
Human Development (2005)	United Nations (UNDP)	2007–08	177	62º	7º
Corruption Perception (2008)	Transparency International	2008	180	85º	10º
Income inequality (1989–2007)(3)	United Nations (UNDP)	2007–2008	126	115º	14º

⁽¹⁾ Worldwide ranking among countries evaluated.

⁽²⁾ Ranking among the 20 Latin American countries (Puerto Rico is not included).

⁽³⁾ Because the Gini coefficient used for the ranking corresponds to different years depending of the country, and the underlying household surveys differ in method and in the type of data collected, the distribution data are not strictly comparable across countries. The ranking therefore is only a proxy for reference purposes, and though the source is the same, the sample is smaller than for the HDI

Notes and references

• CIA World Factbook: Panama
• Panama Canal Expansion Takes Major Step Forward, RESOURCE CANADA BUSINESS NEWS NETWORK, 25-JUL-2006
• Cómo localizar a los grupos del ‘sí’ y ‘no’, 11 de agosto de 2006

Panama news and information resorce.

Further reading

• Murillo, Luis E. (1995). The Noriega Mess: The Drugs, the Canal, and Why America Invaded. 1096 pages, illustrated. Berkeley: Video Books. ISBN 0-923444-02-5.
• Mellander, Gustavo A. (1971) The United States in Panamanian Politics: The Intriguing Formative Years. Danville, Ill.: Interstate Publishers, OCLC 138568
• Mellander, Gustavo A.; Nelly Maldonado Mellander (1999). Charles Edward Magoon: The Panama Years. Río Piedras, Puerto Rico: Editorial Plaza Mayor. ISBN 1563281554. OCLC 42970390.

External links

Government and Diplomacy

• The President of Panama
• List of Panamanian Government Agencies
• Ministry of External Relations
• Embassy of Panama in the U.S.
• National Directorate of Immigration and Naturalization

Tourism and Travel

• Official Site of the Panama Tourism Bureau
• Photos Of Panama
• Official Site of the Panama Canal Authority

Economy and Business

• Ministry of Economics and Finance
• Bolsa de Valores (Panama Stock Exchange)
• Comisión Nacional de Valores (Panama SEC)
• American Chamber of Commerce & Industry of Panama
• List of all Panama Banks

Nature conservation

• reforestation for the endemic Squirrel Monkey

Media and Discussion

• La Prensa
• Mi Diario