Panama » History

After three hundred years of coalition, Panama finally broke free from the rule of Spain.  In 1821, Panama linked up with Colombia, which had already announced its independence from Spain. After a U.S. suggestion for canal rights throughout the tapered isthmus was refused by Colombia, Panama declared its freedom from Colombia with U.S. military backing in 1903.

The construction of Panama Canal was completed in 1914. Panama Canal is always represented as an extraordinary engineering achievement. The United States then obtained license from the new republic of Panama to build it. U.S paid Panama $10 million and accepted to pay a handsome amount each year. In Exchange, the U.S obtained the Canal Zone. Canal Zone is a 10 mile broad piece throughout the isthmus. Panama Zone has a significant influence in Panama’s affairs. On Sept. 7, 1977, Gen. Omar Torrijos Herrera and President Jimmy Carter ratified accords passing Panama stepwise authority of the canal, terminating U.S. military bases, and assuring the canal's impartiality. Panama adopted complete ownership of the Panama Canal on December 31, 1999.

While looking for that objective, Panama originated its own specific culture and system of government. Panama built up an economic system that did not depend exclusively on the Panama Canal. Martín Torrijos Herrera succeeded May 2004 presidential election by gaining 47.5% of the vote. He joined office in September. Panamanians authorized a project to enlarge the Panama Canal in 2006. It will probably double the canal’s functionality and is likely to be completed in 2014-2015.

Panama is flourishing. There are so numerous causes of it. Most important reasons are as follows. Panama Canal enlargement is going to restructure the world trade. This enlargement of Panama Canal is a venture of more than US$5 billion. Panama has turned a well liked vacation destination for baby boomers from United States and Europe. This has appealed property investments all over the country from beach to city dwellings. Panama has been eventually revealed as safest tourism destination. Excluding the Canal from the equation, Panama provides city, mountain and beach sites barely hours away from each other.

Longer Historical Perspective

History of Panama has been influenced by its strategic location between the Pacific Ocean and the Caribbean. The indigenous Cuevas and Cocole tribe promptly vanished after the arrival of Spanish by means of their weaponries and diseases in the early 16th century.

During the Spanish control, Panama was a crucial trade route and collection point for Spanish market from the New World. Panama City flourished as Spain defeated and destroyed Peru. Caravans filled with gold moved through terrestrial routes throughout the narrow band from Panama City to be loaded on sailing ship tied for Spain. Nevertheless, these riches appealed pirates. In the early 1700s, Panama's Caribbean beach was covered with a large number of pirate strongholds that shippers chose rather to sail around Cape Horn to Peru. Panama's value quickly went down.

Much of Panama's domestic politics and international diplomacy in the 20th century was tied to the Panama Canal and the foreign policy of the United States. At the turn of the 20th century, Theodore Roosevelt pursued United States diplomatic efforts to facilitate a deal with Colombia that would allow it to take over French canal operations started by Ferdinand de Lesseps. In November 1903, a small number of wealthy Panamanian landowners led by a covert Separatist Junta presided by Dr. Manuel Amador Guerrero, were encouraged to commit what amounted to treason and secede from Colombia with support from the United States.

In December 1903 representatives of the republic 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 January 9, 1964: Martyr's Day. These issues were resolved with the signing of the Torrijos-Carter Treaties in 1977.