Origin of the name "Panama"

There are various stories about the etymology of the name "Panama". Some say that the name comes from an unspecified indigenous language, from words meaning variously "an abundance of fish" or "an abundance of butterflies". Another humorous tale states that the name comes from the indigenous kuna word "bannaba", meaning "farther that way", which is what the Kunas told explorers looking for gold. "Panama" is also the name of a variety of tree found in the isthmus.

History

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 engaged to secede from Colombia by the United States.

On November 3, 1903, Panama declared its independence from Colombia. The President of the Municipal Council, Demetrio H. Brid, highest authority at the time, became its de facto President, appointing on November 4 a Provisional Government to run the affairs of the new republic. The United States was the first country to recognize the new Republic of Panama and sent troops to protect the nation. 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.

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.

The original intent of the founding fathers was to bring 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 Arnulfo Arias Madrid. Gen. Omar Torrijos eventually became the leading power in the governing military junta, and later became an autocratic strong man until his death in an apparent airplane accident in 1981. After Torrijos's death, power was eventually concentrated in the hands of Gen. Manuel Noriega, a former head of Panama's secret police. Noriega was implicated in drug trafficking by the United States, resulting in difficult relations by the end of the 1980’s.

To remove Gen. Manuel Noriega, on December 20, 1989, the United States invaded Panama in a large military operation involving 25,000 United States troops (see US invasion of Panama). Allegedly, the death of an unarmed U.S. soldier in plain clothes in Panama at a Panamanian Defence Forces roadblock was one of the precipitating causes for the invasion along with drug trafficking charges and Noriega's refusal to hand over power after being defeated in elections. However, according to the Panamanian government at the time, the officer's vehicle attempted to drive through the roadblock, which was located near a sensitive military location. A few hours after the invasion, in a ceremony that took place inside a U.S. military base in the former Panama Canal Zone, Guillermo Endara, the winning candidate in the May 1989 elections, was sworn in as the new president of Panama. The invasion occurred 10 years before the Panama Canal administration was to be turned over to Panamanian control, 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. After a few days, Noriega surrendered to the American military, and was taken to Florida to be formally arrested and charged U.S. federal authorities. He will be eligible for parole in 2007.

Under the Torrijos-Carter Treaties, the United States returned all canal-related lands to Panama on December 31, 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.

Politics

Politics of Panama 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.

Economy

Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism, because of its key geographic location. The handover of the canal and military installations by the US 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 has been convened for October 22nd, 2006, to approve or reject the building of a third set of locks for the Panama Canal. The Panamanian currency is the balboa, fixed at parity with the United States dollar.

Demographics

The culture, customs, and language of the Panamanians are predominantly Caribbean Spanish. Ethnically, the majority of the population is mestizo or mixed Spanish, Indian, Chinese, and African descent. Spanish is the official and dominant language; English is a common second language spoken by the West Indians and by many in business and the professions. More than half the population lives in the Panama City–Colón metropolitan corridor.