With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. On 7 September 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of 1999. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the intervening years. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were turned over to Panama by or on 31 December 1999.

Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica

9 00 N, 80 00 W

total: 78,200 sq km
land: 75,990 sq km
water: 2,210 sq km

total: 555 km
border countries: Colombia 225 km, Costa Rica 330 km

2,490 km

territorial sea: 12 nm
contiguous zone: 24 nm
exclusive economic zone: 200 nm

tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)

interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills

lowest point: Pacific Ocean 0 m
highest point: Volcan de Chiriqui 3,475 m

copper, mahogany forests, shrimp, hydropower

arable land: 7.26%
permanent crops: 1.95%
other: 90.79% (2005)

430 sq km (2003)

occasional severe storms and forest fires in the Darien area

water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation and soil erosion threatens siltation of Panama Canal; air pollution in urban areas; mining threatens natural resources

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

3,191,319 (July 2006 est.)

0-14 years: 30.3% (male 492,403/female 472,996)
15-64 years: 63.4% (male 1,025,898/female 998,926)
65 years and over: 6.3% (male 94,122/female 106,974) (2006 est.)

total: 26.1 years
male: 25.8 years
female: 26.5 years (2006 est.)

1.6% (2006 est.)

21.74 births/1,000 population (2006 est.)

5.36 deaths/1,000 population (2006 est.)

-0.4 migrant(s)/1,000 population (2006 est.)

at birth: 1.05 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.03 male(s)/female
65 years and over: 0.88 male(s)/female
total population: 1.02 male(s)/female (2006 est.)

total: 16.37 deaths/1,000 live births
male: 17.75 deaths/1,000 live births
female: 14.92 deaths/1,000 live births (2006 est.)

total population: 75.22 years
male: 72.68 years
female: 77.87 years (2006 est.)

2.68 children born/woman (2006 est.)

0.9% (2003 est.)

16,000 (2003 est.)

less than 500 (2003 est.)

noun: Panamanian(s)
adjective: Panamanian

mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%

Roman Catholic 85%, Protestant 15%

Spanish (official), English 14%; note - many Panamanians bilingual

definition: age 15 and over can read and write
total population: 92.6%
male: 93.2%
female: 91.9% (2003 est.)

conventional long form: Republic of Panama
conventional short form: Panama
local long form: Republica de Panama
local short form: Panama

constitutional democracy

Panama

9 provinces (provincias, singular - provincia) and 1 territory* (comarca); Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*(Kuna Yala), and Veraguas

3 November 1903 (from Colombia; became independent from Spain 28 November 1821)

Independence Day, 3 November (1903)

11 October 1972; major reforms adopted 1978, 1983, 1994, and 2004

based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with reservations

18 years of age; universal and compulsory

unicameral National Assembly (formerly called Legislative Assembly) or Asamblea Nacional (78 seats; members are elected by popular vote to serve five-year terms); note - in 2009, the number of seats will change to 71
elections: last held 2 May 2004 (next to be held 3 May 2009)
election results: percent of vote by party - NA%; seats by party - PRD 40, PA 17, PS 8, MOLIRENA 3, CD 2, PP 2, PLN 1, other 5
note: legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula

Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms); five superior courts; three courts of appeal

Panama's dollarised economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004 and 2005 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high.

$22.33 billion (2005 est.)

$15.11 billion (2005 est.)

4.9% (2005 est.)

$7,100 (2005 est.)

agriculture: 7.6%
industry: 17.9%
services: 74.5% (2005 est.)

1.39 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2005 est.)

agriculture: 20.8%
industry: 18%
services: 61.2% (1995 est.)

8.7% (2005 est.)

37% (1999 est.)

lowest 10%: 1.2%
highest 10%: 35.7% (1997)

56.4 (2000)

2.5% (2005 est.)

17.8% of GDP (2005 est.)

revenues: $3.426 billion
expenditures: $3.959 billion; including capital expenditures of $471 million (2005 est.)

73.2% of GDP (2005 est.)

bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

construction, brewing, cement and other construction materials, sugar milling

3.5% (2005 est.)

5.398 billion kWh (2003)

4.87 billion kWh (2003)

175 million kWh (2003)

25 million kWh (2003)

78,000 bbl/day (2003 est.)

-$559 million (2005 est.)

$7.481 billion f.o.b.; note - includes the Colon Free Zone (2005 est.)

bananas, shrimp, sugar, coffee, clothing

US 50.5%, Sweden 6.6%, Spain 5.1%, Netherlands 4.4%, Costa Rica 4.2% (2004)

$8.734 billion f.o.b. (includes the Colon Free Zone) (2005 est.)

capital goods, foodstuffs, consumer goods, chemicals

US 33.3%, Netherlands Antilles 8.1%, Japan 6%, Costa Rica 5.7%, Mexico 4.6%, Colombia 4.2% (2004)

$981 million (2005 est.)

$9.859 billion (2005 est.)

$197.1 million (1995)

balboa (PAB); US dollar (USD)

calendar year

376,100 (2004)

855,900 (2004)

general assessment: domestic and international facilities well developed
domestic: NA
international: country code - 507; 1 coaxial submarine cable; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System

AM 101, FM 134, shortwave 0 (1998)

38 (including repeaters) (1998)

.pa

7,013 (2005)

300,000 (2005)

109 (2005)

total: 47
over 3,047 m: 1
2,438 to 3,047 m: 1
1,524 to 2,437 m: 5
914 to 1,523 m: 17
under 914 m: 23 (2005)

total: 62
914 to 1,523 m: 10
under 914 m: 52 (2005)

total: 355 km
standard gauge: 76 km 1.435-m gauge
narrow gauge: 279 km 0.914-m gauge (2004)

total: 11,643 km
paved: 4,028 km
unpaved: 7,615 km (2000)

800 km (includes 82 km Panama Canal) (2005)

total: 5,254 ships (1000 GRT or over) 137,914,883 GRT/206,848,688 DWT
by type: barge carrier 27, bulk carrier 1,651, cargo 951, chemical tanker 452, combination ore/oil 11, container 625, liquefied gas 188, livestock carrier 6, passenger 46, passenger/cargo 77, petroleum tanker 516, refrigerated cargo 307, roll on/roll off 109, specialized tanker 21, vehicle carrier 267
foreign-owned: 4,688 (Argentina 9, Australia 4, The Bahamas 1, Bangladesh 1, Belgium 13, Bermuda 2, Brazil 2, Canada 3, Chile 11, China 370, Colombia 6, Croatia 4, Cuba 8, Cyprus 8, Denmark 28, Egypt 17, Estonia 3, France 8, Germany 29, Greece 536, Hong Kong 168, India 16, Indonesia 50, Iran 4, Ireland 2, Isle of Man 2, Israel 3, Italy 16, Japan 1,921, Jordan 12, South Korea 285, Kuwait 2, Latvia 4, Lebanon 1, Lithuania 6, Malaysia 13, Maldives 2, Malta 2, Marshall Islands 1, Mexico 5, Monaco 9, Netherlands 26, NZ 1, Nigeria 6, Norway 57, Pakistan 2, Peru 14, Philippines 17, Poland 19, Portugal 12, Romania 9, Russia 6, Saudi Arabia 4, Singapore 57, South Africa 3, Spain 48, Sri Lanka 6, Sudan 1, Swaziland 1, Sweden 5, Switzerland 206, Syria 9, Taiwan 302, Thailand 10, Trinidad and Tobago 1, Tunisia 1, Turkey 31, Ukraine 7, UAE 89, UK 36, US 97, Venezuela 14, Vietnam 2, Yemen 1, unknown 1) (2005)

Balboa, Colon, Cristobal

an amendment to the Constitution abolished the armed forces, but there are security forces (Panamanian Public Forces or PPF includes the Panamanian National Police, National Maritime Service, and National Air Service)

on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of special police units to counter acts of "external aggression"

organized illegal narcotics operations in Colombia operate within the border region with Panama

major cocaine transshipment point and primary money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial transactions is improving; official corruption remains a major problem