Panama Real Estate Blog

The History of Panama

Panama’s history has largely been affected by the country’s strategic position in Central America between the Caribbean and Pacific Oceans. Not only did the country have its formative years shaped by the Spanish explorers, but the influx of pirates and their raiding activities can still be seen today in the variety of forts around Panama.

As the Spanish explorers came to the region, the indigenous Cuevas and Cocole tribes disappeared due to the accompanying sicknesses that the explorers brought with them, along with weapons that desecrated these tribes. Spain in turn proceeded to conquer Peru and raided their gold reserves, to be taken back to Spain. This attracted the pirates and privateers from across the world, and before long the Caribbean and Pacific coasts were teaming with these wealth seeking criminals. The area had become so dangerous that many ships captains refused to sail into the Caribbean, but rather went around the Cape Horn to access Peru. Spain had lost interest in the importance of Panama based on these developments and didn’t contest the fledgling country’s inclusion as a province of Colombia in 1821.

The concept of the canal

The original plans for building a canal across the isthmus was originated via a treaty between France and Colombia in the 1880s, however the project was doomed to failure with the death of more than 22,000 people within 5 years, due to the dreaded Yellow Fever. The fact that Panama was planning a declaration of independence from Colombia provided the perfect timing for the United States to provide strategic financial, construction and military support to the new country, which was represented by the presence of US troops in Panama when they declared independence from Colombia in November of 1903. For the role that the United States played in the construction of the canal the United States was given control of the canal in perpetuity, however this ended in 1999. In addition to this the US government paid Colombia $25 million to revoke all rights they conferred upon the canal. The canal was an extremely strategic possession during World War II and the area was heavily protected during this time of war, by a host of American war ships.

Recent Political History of Panama

Panama was ruled by dictatorship of Omar Torrijos Herrera, then commander of the Panama National Guard. Herrera was heralded as a hero in Panama as he successfully negotiated a treaty with the US, which led to the control of the Panama Canal reverting back to the people of Panama, as well as the Panama Canal Zone, which was an area to either side of the canal, and was classed as US territory.

After Herrera’s death in 1983, the notorious and infamous General Manuel Noriega became head of Panama’s armed forces and declared himself leader in 1989, which was followed by a reign funded by drug trafficking, corruption and violence. After declaring war on the US, and a forced armed conflict, Noriega realized he had no choice but to flee, and sought asylum in the Vatican City. After several events including a tactic of blasting loud music at the Vatican City, Noriega was released to the US authorities, was tried and sentenced to a 40 year imprisonment. Noriega was recently released from the States, however he was ordered to be extradited to France to stand for additional accusations and crimes from the French government.

The country suffered under corrupt and bad administration, however with the accession to power by Ernesto Perez Balladares (El Toro) in 1994 and Mireya Moscoso in 1999, the country has done an about turn with a stable and growing economy, as well as several initiatives to clamp down on corruption. Panama and her people have proven that the situation could be remedied and did so effectively and within a reasonable time period to be able to enjoy the ownership and resultant benefits of the Canal under their control.

Now in 2004 we have one of the best Presidents of Panama in my point of view Martin Torrijos Espino, Torrijos help Panamanian Athletes in different sports like soccer, baseball, swimming and boxing as no other President did before, he put a lot of effort creating a lot of synthetic soccer fields, also fixing soccer stadium like the one in La Chorrera and Chiriquí as well, also fixing baseball stadiums in different area of Panama.  He fixes the sports city that his dad General Omar Torrijos Herrera built 40 years ago and since them no other president even try to fixes. 

This facility has the new Romel Fernandez soccer Stadium, the coliseum Roberto Duran and the Olympic Swimming Pool Aileen Coparropa.  This sports city has the name of Irvin Saladino in recognition to be the first Panamanian that gets the Olympic gold medal.
 
 Torrijos inaugurated the installation of a new term, four months before surrendering in power, and in his message emphasized the consensus reached with the opposition on economic and poverty reduction.

Among the achievements, stressed “the consolidation of public finances, to save social security” in bankruptcy “reform” which made more equitable taxation and the expansion of the Panama Canal.

Today the Canal not only ensures our present and our future, but more than 3,200 finance social investment projects, in an amount exceeding $ 200 million.

During his tenure the country grew by 9% annually on average, unemployment fell to 5.6% (the lowest rate in 60 years, according Torrijos); poverty fell to 28.6% and 40% over 400,000 people benefited from subsidies in exchange for sending their children to school.

The extension of the canal, allowing the crossing of larger vessels should be ready in 2014, when the route meets one hundred years in service.

And finally some works for the President Torrijos four months before his administration ends: “In four months of the completion of our administration, we can tell our people that, with successes and mistakes, I did,” Torrijos said proudly.

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