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This article is about the country in the Americas; for other uses, see Panama (disambiguation). República de Panamá (Spanish) Republic of Panama Flag Coat of arms Motto: "Pro Mundi Beneficio" (Latin) "For the Benefit of the World" Anthem: Himno Istmeño (Spanish) Capital (and largest city) Panama City 8°58′N, 79°32′W Official languages Spanish Demonym Panamanian Government Constitutional Democracy - President Martín Torrijos - Vice President Samuel Lewis Navarro - Vice President Rubén Arosemena Independence - from Spain 28 November 1821 - from Colombia 3 November 1903 Area - Total 75,517 km² (118th) 29,157 sq mi  -  Water (%) 2.9 Population - Dec 2006 estimate 3,320,000 (133rd) - May 2000 census 2,839,177 - Density 43/km² (156th) 111/sq mi GDP (PPP) 2006 estimate - Total $27.551 billion (103th) - Per capita $8,359 (83rd) Gini (2002) 48.5 HDI (2007) 0.812 (high) (62th) Currency Balboa, U.S. dollar (PAB, USD) Time zone (UTC-5) - Summer (DST)  (UTC-5) Internet TLD .pa Calling code +507 Panama, officially the Republic of Panama (Spanish: República de Panamá; IPA: [re'puβlika ðe pana'ma]), 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 borders 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. In Central America, it is the second most industrialized country, behind El Salvador, Panama is also the 3rd largest economy in Central America, after Guatemala and Costa Rica and has the largest expenditure on resource consumption, making the country the largest consumer in Central America.[1]

Contents [hide] 1 History 1.1 Pre-Columbian Period 1.2 Spanish colonization 1.3 Independence 1.4 Military dictators 1.5 Manuel Noriega 1.6 United States invasion of Panama 2 Provinces and regions 3 Geography 4 Economy 4.1 Globalization 4.2 Inflation 4.3 Real estate 4.4 Bilateral Investment Treaty with the U.S. 4.5 Proposed Free Trade Agreement with the United States 5 Demographics 6 See also 7 Notes and references 8 External links

[edit] History Main articles: History of Panama and Politics of Panama

[edit] Pre-Columbian Period Panama had a rich 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. These evolved 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. Archaeological finds as well as testimonials by early European explorers describe diverse native isthmian groups exhibiting cultural variety and suggesting people already conditioned by regular regional routes of commerce.

[edit] Spanish colonization Panama was settled by the Spanish. In 1819, under the leadership of the then-colonel in command, José de Fábrega, it declared its independence from Spain. It then joined Simón Bolívar's Republic of Gran Colombia (1819-1831), a federation made up of Venezuela, New Granada and Ecuador. When this dissolved in 1830 (formally in 1831), Panama became a province of New Granada (later to be renamed Colombia).

[edit] Independence On 3 November 1903, Panama broke off from Colombia. The US gunboat Nashville prevented the Colombian military from sailing to Panama. An assault through the dense Panamanian jungle was impossible. The President of the Municipal Council, Demetrio H. Brid, the highest authority at the time, became its de facto president, appointing a Provisional Government on 4 November to run the affairs of the new republic. The United States, as the first country to recognize the new Republic of Panama, sent troops to protect its economic interests. The 1904 Constituent Assembly elected Dr. Manuel Amador Guerrero, a prominent member of the Conservative political party, as the first constitutional President of the Republic of Panama.

The Chagres riverIn November 1903, Mr. 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 United States 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.

[edit] Military dictators The original 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 apparent airplane accident in 1981. The accident has been said to be a American-led assassination.

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.

[edit] Manuel Noriega Noriega came up through the ranks after serving in Chiriqui province and in the town 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.

[edit] United States invasion of Panama Main article: United States invasion of Panama Aftermath of urban warfare during the U.S. invasion of Panama.On 20 December 1989, twenty-seven thousand US personnel invaded Panama in order to remove Manuel Noriega.[2] 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. After the invasion, Noriega sought asylum in the Vatican diplomatic mission represented by Monsignor Jose S. Laboa. To induce Noriega's surrender, US forces played loud music outside the embassy which reportedly included the song "Panama," by the 1980s rock group, Van Halen.(WSJ) After a few days, the embassy staff talked loudly for his benefit about the possibility that the mob surrounding them might break through and lynch Noriega. He 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.

Under the Torrijos-Carter Treaties, the United States returned all canal-related lands to Panama on 31 December 1999, but reserves the right to military intervention in the interest of its national security. 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.

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 pluriform 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.

[edit] Provinces and regions The nine provinces and three provincial-level comarcas of Panama.Main articles: Provinces and regions of Panama and List of cities in Panama Administratively, Panama's major divisions are nine provinces and five indigenous territories (comarcas indígenas). The provincial borders have not changed since they were determined at independence in 1903. The provinces are divided into districts, which in turn are subdivided into sections called corregimientos. Configurations of the corregimientos are changed periodically to accommodate population changes as revealed in the census reports.

Provinces Bocas del Toro · Coclé · Colón · Chiriquí · Darién · Herrera · Los Santos · Panamá · Veraguas Provincial-level comarcas Emberá · Kuna Yala · Ngöbe-Buglé · Kuna de Madugandí  · Kuna de Wargandí

[edit] Geography Main article: Geography of Panama Ancon Hill in 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 1999, 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.

[edit] Economy Main article: Economy of Panama Traditional Afro-Panamanian building.Panama has an unemployment rate of 7.3%.[3] According to the Government of Panama the poverty reaches 16.6% (2006 census) of the population.[4] However, the First World infrastructure and high standards of living shows Panama's strong and thriving economic growth.

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 new 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.

[edit] Globalization Panama City shows evidence of a gamma world city.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 65% 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).[citation needed]

Panama fared decently in tourism receipts and foreign direct investment as a percent of GDP (the fourth-highest in Latin America in both categories) and internet penetration (eighth-highest rate in Latin America).[citation needed]

[edit] 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 CPI was 2.0 percent in 2006. [5] Panama has traditionally experienced low inflation.

[edit] Real estate Panama City is currently experiencing a real estate boom. Tourists and retirees are arriving in greater quantities and consequently helping the local real estate market. Properties in Panama are rapidly increasing in price, which is turning Panama into a seemingly excellent destination for second homes and investments.

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

[edit] 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.[6]

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.[citation needed] 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[citation needed]. When previously a ship going from New York to San Francisco would have to travel for 20,900 kilometers, now that travel time would be reduced to 8,370 km.

The canal is of economic importance since it provides millions of dollars from toll revenue[citation needed] 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.

[edit] 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.[7] While the U.S. Congress was initially favorably disposed to the Panama pact,[8] the election of anti-American Pedro González to the presidency of the Panamanian legislature on September 1, 2007 has halted progress of the pact in that body.

[edit] Demographics Main article: Demographics of Panama Kuna woman sewing.According to the CIA World Factbook, Panama has a population of 3,242,173. 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; English is spoken widely on the Caribbean coast and by many in business and professional fields.

The overwhelming majority of Panamanians are Roman Catholic, accounting for almost 80% of the population. Although the Constitution recognizes Catholicism as the religion of the great majority, Panama has no official religion. Minority religions in Panama include Protestantism (12%), Islam (4.4%), the Bahá'í Faith (1.2%), Buddhism (at least 1%), Greek Orthodox (0.1%), Judaism (0.4%), and Hinduism (0.3%). 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 synagogues in Panama City, as well as two 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, Max Del Valle. Panama's communities of Muslims, East Asians, and South Asians, are also among the largest.

Colón City, PanamaPanama City hosts a Bahá'í House of Worship, one of only eight in the world. Completed in 1972, it is perched on a high hill facing the canal, and is constructed of local mud laid in a pattern reminiscent of Native American fabric designs.

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.[9][10]

[edit] See also Panama Portal Communications in Panama Culture of Panama Foreign relations of Panama List of football clubs in Panama List of hospitals in Panama List of Panamanians Military of Panama List of countries without armed forces List of radio stations in Panama Orden de Manuel Amador Guerrero Panamanian balboa Pollera Public holidays in Panama Transportation in Panama ANAPROF (Panama's top soccer league) National Active and Retired Federal Employees Association

[edit] Notes and references ^ www.ilri.org/contentman/documentos/Sector%20Cárnico%20CA.pdf ^ Lawrence A. Yates. Operation JUST CAUSE in Panama City, December 1989. Combat Studies Institute. Retrieved on 2007-10-19. ^ Castillo Duarte, Edith. "El índice de desempleo total se redujo a 7.3%", La Prensa. Retrieved on 2007-06-29. (Spanish) ^ http://www.antena-sin.com/NoticiasSin/Details.asp?id_article=782 ^ [1]PDF (95.9 KiB) ^ List of BITs currently in effect. ^ U.S. Trade Representative's page on Panama TPA. ^ News Release by Democratic Leadership of U.S. House of Representatives of July 2, 2007. ^ Jackson, Eric (May 2004). "Panama's Chinese community celebrates a birthday, meets new challenges". The Panama News 10 (9). Retrieved on 2007-11-07. ^ President Chen's State Visit to Panama. Government Information Office, Republic of China (October 2003). Retrieved on 2007-11-07. 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

[edit] External links Government and Diplomacy

(Spanish) The President of Panama (Spanish) List of Panamanian Government Agencies (Spanish) 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 Official Site of the Panama Canal Authority Panama's No 1. resource and directory site More About Panama in My Panama Live Panama City Guide & Maps Guide to Panama Economy and Business

(Spanish) Ministry of Economics and Finance (Spanish) Bolsa de Valores (Panama Stock Exchange) (Spanish) Comisión Nacional de Valores (Panama SEC) American Chamber of Commerce & Industry of Panama Media and Discussion

(Spanish) La Prensa Geographic locale [show]v • d • eProvinces of Panama Bocas del Toro · Chiriquí · Coclé · Colón · Darién · Herrera · Los Santos · Panamá · Veraguas

Comarcas indígenas Emberá · Kuna de Madugandí · Kuna de Wargandí · Kuna Yala · Ngöbe-Buglé [show]v • d • eCountries of Central America Belize · Costa Rica · El Salvador · Guatemala · Honduras · Nicaragua · Panama [show]v • d • eStates and dependencies of Middle America States —  Dependencies Anguilla (UK) · Antigua and Barbuda · Aruba (NL) · Bahamas · Barbados · Belize · British Virgin Islands (UK) · Cayman Islands (UK) · Costa Rica · Cuba · Dominica · Dominican Republic · El Salvador · Grenada · Guadeloupe (FR) · Guatemala · Haiti · Honduras · Jamaica · Martinique (FR) · Mexico · Montserrat (UK) · Navassa Island (US) · Netherlands Antilles (NL) · Nicaragua · Panama · Puerto Rico (US) · St. Barthélemy (FR) · St. Kitts and Nevis · St. Lucia · St. Martin (FR) · St. Vincent and the Grenadines · Trinidad and Tobago · Turks and Caicos Islands (UK) · US Virgin Islands (US) [show]v • d • eCountries of North America Several nations listed here straddle both North and South America or can also be considered Caribbean Sovereign states Antigua and Barbuda · Bahamas · Barbados · Belize · Canada · Costa Rica · Cuba · Dominica · Dominican Republic · El Salvador · Grenada · Guatemala · Haiti · Honduras · Jamaica · Mexico · Nicaragua · Panama · St. Kitts and Nevis · St. Lucia · St. Vincent and the Grenadines · Trinidad and Tobago · United States Dependencies Denmark Greenland France Guadeloupe · Martinique · Saint Barthélemy · Saint Martin · Saint Pierre and Miquelon Netherlands Aruba · Netherlands Antilles United Kingdom Anguilla · Bermuda · British Virgin Islands · Cayman Islands · Montserrat · Turks and Caicos Islands United States Puerto Rico · U.S. Virgin Islands · Navassa · Serranilla Bank · Petrel Islands International membership [show]v • d • eMembers of the United Nations Security Council Permanent members China · France · Russia · United Kingdom · United States Term ends December 31, 2008 Belgium · Indonesia · Italy · Panama · South Africa Term ends December 31, 2009 Burkina Faso · Costa Rica · Croatia · Libya · Vietnam [show]v • d • eLatin Union Andorra · Angola · Argentina · Bolivia · Brazil · Cape Verde · Chile · Colombia · Costa Rica · Côte d'Ivoire · Cuba · Dominican Republic · Ecuador · El Salvador · France · Guatemala · Guinea-Bissau · Haiti · Holy See · Honduras · Italy · Mexico · Moldova · Monaco · Mozambique · Nicaragua · Panama · Paraguay · Peru · Philippines · Portugal · Romania · San Marino · São Tomé and Príncipe · Senegal · Sovereign Military Order of Malta · Spain · Timor-Leste · Uruguay · Venezuela

Official languages: Catalan · French · Italian · Portuguese · Romanian · Spanish

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