Country Information on Panama 

Terrain

Two mountain ranges run the length of Panama, dividing the country into two plains. The higher Serrania de Tabasará extends from the west inland and the average height of the range is 1,500 m. The extinct Barú volcano (3,374 m) is the highest peak. Lower peaks are found in the Cordillera de San Blas and the Sierra del Darién, which are an average of around 900 m high. Both of Panama's coasts are characterized by gulfs, bays, and lagoons.

Climate

Panama has a tropical climate. At the coast, average temperatures range between 21 and 32°C. In the higher areas inland, the average temperature is 19°C. The rainy season lasts from April to December.

Fauna/Flora

Eastern Panama is covered with tropical rainforest, and the ground has a thick carpet of tropical flowers, sedge, and other grasses. A dryer climate means that vegetation on the slopes of the Pacific side of the isthmus is as sparse as it is abundant on the other side, with savannah interspersed with leafy trees. There are over 2,000 different species of tropical plants in Panama. Almost all the species indigenous to South America can be found in Panama, such as the puma, armadillo, ocelot, anteater, spider monkey, sloth, and fallow deer. Among the reptiles in the country are caymans, crocodiles, and various species of snake. There are colourful tropical birds, as well as ducks and other migratory birds common in North America. There is also a great variety of fish species.

History/Politics

The area of present-day Panama once was the cradle of Chichba civilization, which is known for its sophisticated gold processing and architectural skills and other scientific knowledge. The first European to explore the coasts in the region was the Spanish explorer Rodrigo de Bastidas, who in 1501 founded Panama's first port, calling it "El Escribano". One year later, Christopher Columbus explored the coast of Panama more thoroughly during his fourth voyage. During the 16th century, the region was conquered by Spain and turned into an important centre of trade for the Spanish monopoly. In 1717 the area became part of the Viceroyalty of New Granada. In 1821 Panama declared its independence from Spain, first voluntarily becoming part of Greater Colombia and then later part of the Republic of Colombia.

Discontent with Colombian rule led to several rebellions during the 19th century, given Panama's diminishing role as a trade route between two oceans and its decreasing geopolitical importance. On 3 November 1903, Panama declared its independence as a result of the fact that the Colombian Parliament had not ratified a treaty with the USA concerning the canal. It was officially recognized as a sovereign state by the USA three days later. In 1904, a constituent assembly drafted the first Panamanian constitution; the year 1914 marked the opening of the Panama Canal. Arnulfo Arias, who was elected president in 1940, was removed from office in 1941 as he was in favour of the Axis powers. Panama entered World War II in 1942 on the side of the Allies. General Omar Torrijos became President in 1969, which was to be the beginning of diplomatic struggle at all international levels to regain unlimited control over the Panama Canal. The Torrijos-Carter Treaty was signed in 1977, which provided for the canal to be handed over to Panama in 2000. Noriega came into power in 1983, annulled the presidential elections of April 1989 and prevented an attempted military coup in October that year.

Two months later, however, the United States sent 24,000 soldiers to Panama and appointed President Guillermo Endara, the man who had in fact won the April 1989 elections. Noriega was imprisoned and sent to the US in January 1990, where he was indicted in Miami, Florida in April 1992. The Endara government, however, was faced with serious economic problems, but gradually managed to recover. In 1994 Ernesto Pérez Balladares, candidate of the rightist Democratic Revolutionary Party, won the presidential elections. Mireya Moscoso, widow of former president Arnulfo Aria, succeeded him. In the 2004 presidential elections, Martín Erasto Torrijos Espino, a candidate of the same party, was elected.

Economy

Panama's most important source of revenue is the services sector, which accounts for 75% of the country's Gross National Product. Most of this income comes from the Panama Canal, banking, the Colon Free Zone, insurance companies, harbour dues, ship registration under the Panamanian flag, and tourism. Falling prices in the Colon Free Zone and agricultural export, as well as high oil prices made economic growth possible in 2000. Approximately 61% of Panama's active population is employed in the service sector, 21% in agriculture, and 18% in industry. The country's industrial sector comprises mainly construction, oil and sugar refining, and manufacturing of cement and other construction materials. Products that are exported include bananas, prawns, sugar and coffee. In 2003, the unemployment rate was 16% and the inflation rate was 1.7%.

Culture

Panama's culture is a mixture of Spanish, indigenous, and North American elements. Dance, music and festivities are very colourful. During carnival, which is celebrated on the last four days before Lent, many traditional customs are practised. The tamborito, which is danced in time with drums and clapping hands, dates back to the 17th century. The cumbia is a dance which originated in Africa.