The History of Panama

In 1508 the spanish crown decided to conquer the territories from Central America to Venezuela.  Diego de Nicuesa was given the task of colonizing the present day countries of Panama and Costa Rica.  He was unsuccesful.  The closeness in this region of both oceans transformed the isthmus into a highly important geopolitical area.  Panama became the trade center of the Spanish regime in Central America.  The ships from Spain arrived at Portobelo in the Caribbean coast and the cargo crossed the isthmus towards Panama City.  Goods were then distributed to all of America in the Pacific, from San Francisco to Santiago.  The concentration of goods brought on the threat of pirates, who then looted the cities.  Francis Drake did so in 1596 to Portobelo and Henry Morgan burned down Old Panama in 1671.

Panama separated from Spain by becoming a part of the Great Colombia on November 28, 1821.  In 1831, when the civil war erupted, Panama was separated for more than a year from New Granada, with the intent of forming the Colombian Confederation, keeping it’s autonomy.

In 1855 the State of Panama was created, and a part of New Granada (currently Colombia).  The first references are expressed in the military intervention rights that the United States gave themselves in Panama in the Mallarino-Bidlack treaties of 1846, signed by Washington and Bogota.  The document gave the United States authorization to build a transisthmian railroad.  Panama, backed by the United States, completely separated from Colombia on November 3, 1903.

The construction of the Panama Canal began in 1903 and the Panama Canal Zone became an american protectorate.  The canal was finished in 1914 and was considered the eighth wonder of the world at the time.  The Panamanian constitution was modified on several occasions.  A coup d’etat led General Omar Torrijos Herrera to power in 1968 and he would remain in power until his death in 1981.  In 1983 the constution was changed once again.  Between 1984 and 1989 the country was led by the armed forces led by General Manuel Noriega.  The general’s policy, especially regarding the Canal and his personal activities in drug trafficking worried Panama’s primary ally, the United States.  The americans reduced development aid and military assistance, but these sanctions had little effect.

The american intervention came after the May 1989 presidential elections.  These elections were set between the pro-government parties and the major opposition movement.  The opposition candidate, Guillermo Endara won the elections with 62% of the votes, however the election was nullified.  After a failed U.S.-backed coup d’etat in October 1989, the only way to remove Noriega from power was through military intervention.  After several days of battle, the american forces took control of the country and captured Noriega, who had been hiding in the Vaticna Embassy.  Noriega was extradited and judged in the United States in April 1992 and sentenced to serve 40 years in prison.  Guillermo Endara took over as President.

Despite the many economic problems that Endara had to face the government managed to get the country going again.  Several failed coups were registered between 1991 and 1992.  Endara’s term was finished in 1994.  Ernesto Perez Balladares became President from 1994 to 1999 and Mireya Moscoso succeeded him in 1999 until 2004.  In September 2004, Martin Torrijos Espino was sworn in as President for the following five years.

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Information provided by the Panamanian Tourist Institute - IPAT