Etymology

Though there are several theories about the origin of the name "Panama", Panamanians believe that the word Panama means "abundance of fish, trees and butterflies". This is the official definition given in Social Studies textbooks approved by the Ministry of Education in Panama.

History

Panama was explored and settled by Spain in the 16th Century. They separated from Spain in 1821 and joined a union of Colombia. Over 82 years and 40 administrations, 50 riots, 5 attempted secessions, and 13 U.S. interventions later Panama seceded from Colombia and became an independent nation in 1903.

The Panama Canal was built by the US between 1904 and 1914. For canal rights in perpetuity, the U.S. paid Panama $10 million and agreed to pay $250,000 each year, which was increased to $430,000 in 1933 and to $1,930,000 in 1955. In exchange, the U.S. got the Canal Zone-a 10-mile-wide strip across the isthmus-and considerable influence in Panama's affairs. In 1977 , an agreement was signed to complete transfer of the Canal from the US to Panama by the end of 1999.

In 2006, Panamanians approved the Panama Canal expansion, project to be finished by 2015.

Defying the current Latin American trend for left-leaning governments, Panama elected millionaire businessman Ricardo Martinelli as its president on May 3, 2009. After a period of rapid economic growth, Panama had succumbed to the global recession. Trading on his personal record of success-and utilizing his fortune to get his message out-Martinelli promised to encourage foreign investment and help the poor.

Politics

Panama's politics take place in a framework of a presidential representative democratic republic, whereby the President of Panama is both head 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.

Geography

Panama’s strategic location on eastern end of isthmus forming land bridge connecting North and South America ; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean.

Panama is located in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica.

Panamas’ total area takes in 78,200 sq km of rich vegetation and 2,490 km of beautiful coastline.

Panama has a very tropical, hot, humid, cloudy climate. It’s distinguished by 2 seasons: a prolonged rainy season that starts in May and extends to January and a short dry season between January and May.

Demographics

Panama has a population of 3,309,679 as of 2008. As of the year 2000, the majority of the population, 50.1%, was Mestizo. Blacks and Mulattos were together the largest minority, accounting for 22%. For the remaining groups the percentages were: Amerindian 6.7%, White 8.6%, Asian 5.5%, and other 7.1%. The Amerindian population includes seven indigenous peoples: the Emberá, Wounaan, Guaymí, Ngöbe Buglé, Kuna, Naso and Bribri. More than half the population lives in the Panama City.

The culture, customs, and language of the Panamanians are predominantly Caribbean and Spanish. Spanish is the official and dominant language.

The most common religion in Panama is Roman Catholicism – various sources estimate that 75–85% of the population identifies itself as Roman Catholic and 15–25% percent as evangelical Christian.

Culture

The culture of Panama derived from European music, art and traditions that were brought over by the Spanish to Panama. Hegemonic forces have created hybrid forms of this by blending African and Native American culture with European culture. Dance is a symbol of the diverse cultures that have coupled in Panama. The local folklore can be experienced through a multitude of festivals, dances and traditions that have been handed down from generation to generation.

Economy

Panama's economy is mainly based on a well developed service sector heavily weighted towards 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 some construction projects.

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 canal is of economic importance since it pumps millions of dollars from toll revenue to the national economy and provides massive employment.

Panama’s GDP composition is based on three main sectors: Agriculture 7.2%, Industry 16.4% and Services 76.4%

The Panamanian currency is officially the balboa, fixed at parity with the United States dollar since independence in 1903. In practice, however, the country is dollarized; Panama has its own coinage but uses U.S. dollars for all its paper currency.