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Panama, officially the Republic of Panama, is a country located in Central America. It is bordered by Costa Rica to the west, Colombia to the east, the Caribbean Sea to the north, and the Pacific Ocean to the south. The Isthmus of Panama connects the continents of North and South America and is the location of the Panama Canal, which is controlled by the United States.
History[]
Panama gained its independence from Colombia in 1903 after many years of resentment. Though the small isthmian nation had willingly joined its larger neighbor back in 1821, the Panamanians had often complained of neglect from the government in Bogotá. Its status as the shortest transit point between the Atlantic and Pacific Oceans has always made Panama of special interest to foreign powers, particularly the United States. It was the desire of the US to finally complete a canal across the isthmus, and the unwillingness of Colombia to agree to American demands that led to full Panamanian independence.
The US agreed to finance the Panamanian rebels and land American marines in support of the revolution. The revolt was short and almost bloodless, and the Republic of Panama was proclaimed on November 3rd. Philippe Bunau-Varilla, a Frenchman who had schemed to bring the revolution about as a means of seeing the canal built, had secured appointment as the new country’s ambassador to the US. With American Secretary of State John Hay, the Hay-Bunau-Varilla Treaty was concluded. The terms of the treaty gave the US rights to build the canal in return for $10 Million plus $250,000 in annual payments. In addition, the US was given the authority to act “as if it were sovereign” within the 10-mile wide Canal Zone, and the ability to militarily intervene in Panama in order to maintain public order.
Thus it was that in gaining independence, Panama became more-or-less a protectorate of the United States. The Canal Zone was effectively an American colony, filled with military installations, and where American transplants enjoyed a much higher standard of living than the Panamanians outside. The canal opened in 1914, a marvel of modern engineering, but the benefits of increased commerce were not felt by the majority of Panamanians.
Nonetheless, Panama was now a self-governing republic. The first years of democracy saw a typical back-and-forth between competing conservative and liberal parties. Under the three non-consecutive terms of liberal President Belisario Porras Barahona some strides were taken towards modernization and the development of infrastructure. A short border conflict with Costa Rica known as the Coto War ended embarrassingly with Panama winning in the field but the United States resolving the war in Costa Rica’s favor.
The dominance of the National Liberal Party was strained by the unpopular presidencies of Rodolfo Chiari and Florencia Harmodio Arosemena, especially when the latter attempted to cut government salaries. Faced with a corrupt government and a dismal economy, public opinion grew strong enough for a coup to take place in 1931, led by the nationalist group Acción Comunal. It replaced Arosemena with Harmodio Arias Madrid and his new National Revolutionary Party, and the two easily won elections the following year. Since then, the NRP government has attempted to stimulate the economy through public works programs, but full recovery has not yet been achieved.
Politics[]
Panama is a presidential republic. The current constitution, adopted in 1904, gives the United States the power "intervene in any part of Panama, to reestablish public peace and constitutional order." The two main parties are the newer National Revolutionary Party, currently in power, and the older, more traditional National Liberal Party.
Conscription Law: Volunteer Only
Economic Law: Civilian Economy
Trade Law: Export Focus
Head of Government: Harmodio Arias Madrid
Foreign Minister: Raul de Roux Garcia
Economy Minister: José Pezet Arosemena
Security Minister: Samuel Lewis Aranga
Military[]
Although a Panamanian Army was formed during the revolution, its existence was short-lived. A failed coup in 1904 combined with pressure from the American military resulted in the army being abolished and replaced with a National Police force. It was not long, however, before the National Police became in army in all but name. It participated in the border war with Costa Rica in 1921 and its officers began receiving training at military academies overseas. Increased spending on the National Police has made it grow ever larger, and observers fear that it could began interfering in domestic politics.
Foreign Relations[]
Friendly relations with Colombia and the United States.
Unfriendly relations with Costa Rica.
Economy[]
Unlike the other Central American nations, Panama’s primary economic sector is not agriculture, but commerce. Panama’s strategic location between the Atlantic and Pacific Oceans has made it an important corridor of trade since Spanish colonial times, and its importance has only increased since the opening of the Panama Canal. Wealth is overwhelming concentrated in Panama City and Colón, the terminal cities of the canal. However, most of the population works in agriculture raising crops such as bananas, coffee, and sugar.
Culture[]
The majority of Panamanians are mestizo, with substantial African, European, and Amerindian minorities.