Panama
Republic of PanamaRepublica de Panama
constitutional democracyIndependence 3 November 1903 (from Colombia
Panama as the 2009 edition of the CIA World Factbook published it: 138 fields, one of 36 editions from 1990 to 2025.
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Introduction
1 fieldBackground
Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela - named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama remained part of Colombia. 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.
In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. 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 transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan to expand the Canal. The project, which began in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15.
Geography
Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
20 fieldsLand useshare of 75,420 sq km
Location
Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
Climate
- tropical maritime;
- hot, humid, cloudy;
- prolonged rainy season (May to January), short dry season (January to May)
Terrain
interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills
Freshwater withdrawal (domestic/industrial/agricultural)
- total:
- 0.82 cu km/yr (67%/5%/28%)
- per capita:
- 254 cu m/yr (2000)
Environment - current issues
- 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
Environment - international agreements
- party to:
- Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
- signed, but not ratified:
- Marine Life Conservation
Geography - note
- 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
People
23 fieldsAge structuremale left, female right · (2009 est.)
Per 1,000 population
Male · female
Sex ratio
- at birth:
- 1.04 male(s)/female
- under 15 years:
- 1.04 male(s)/female
- 15-64 years:
- 1.02 male(s)/female
- 65 years and over:
- 0.87 male(s)/female
- total population:
- 1.02 male(s)/female (2009 est.)
Major infectious diseases
- degree of risk:
- intermediate
- food or waterborne diseases:
- bacterial diarrhea
- vectorborne disease:
- dengue fever and malaria (2009)
Government
Constitutional democracy; President Ricardo MARTINELLI Berrocal (since 1 July 2009); President Ricardo MARTINELLI Berrocal (since 1 July 2009)
18 fieldsPresidential electionpercent of vote
National Assembly or Asamblea Nacional, 71 seats, elected 3 May 2009one dot, one seat
Country name
- conventional long form:
- Republic of Panama
- conventional short form:
- Panama
- local long form:
- Republica de Panama
- local short form:
- Panama
Capital
- name:
- Panama City
- geographic coordinates:
- 8 58 N, 79 32 W
- time difference:
- UTC-5 (same time as Washington, DC during Standard Time)
Administrative divisions
- 11 provinces (provincias, singular - provincia) and 1 territory* (comarca);
- Bocas del Toro, Comarca Kuna Yala, Comarca Ngobe-Bugle, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas* (Kuna Yala), and Veraguas
Legal system
- based on civil law system;
- judicial review of legislative acts in the Supreme Court of Justice;
- accepts compulsory ICJ jurisdiction with reservations
Executive branch
- chief of state:
- President Ricardo MARTINELLI Berrocal (since 1 July 2009);
- Vice President Juan Carlos VARELA (since 1 July 2009);
- note - the president is both the chief of state and head of government
- head of government:
- President Ricardo MARTINELLI Berrocal (since 1 July 2009); Vice President Juan Carlos VARELA (since 1 July 2009)
- cabinet:
- Cabinet appointed by the president
- elections:
- president and vice president elected on the same ticket by popular vote for five-year terms (not eligible for immediate reelection; president and vice president must sit out two additional terms (10 years) before becoming eligible for reelection);
- election last held 3 May 2009 (next to be held in 2014)
- election results:
- Ricardo MARTINELLI Berrocal elected president; percent of vote - Ricardo MARTINELLI Berrocal 60%, Balbina HERRERA 38%, Guillermo ENDARA Galimany 2%
note: government coalition - PRD (Democratic Revolutionary Party), PP (Popular Party)
Legislative branch
unicameral National Assembly or Asamblea Nacional (71 seats; members are elected by popular vote to serve five-year terms)
- elections:
- last held 3 May 2009 (next to be held May 2014)
- election results:
- percent of vote by party - NA; seats by party - PRD 26, Panamenista 22, CD 14, PU 4, Independent 2, MOLIRENA 2, PP 1
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
Judicial branch
- Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms);
- five superior courts;
- three courts of appeal
Political parties and leaders
- Democratic Change or CD [Ricardo MARTINELLI];
- Democratic Revolutionary Party or PRD [Martin TORRIJOS Espino];
- Nationalist Republican Liberal Movement or MOLIRENA [Sergio GONZALEZ-Ruiz];
- Panamenista Party [Juan Carlos VARELA] (formerly the Arnulfista Party);
- Patriotic Union Party or UP (combination of the Liberal National Party or PLN and the Solidarity Party or PS)[Guillermo "Billy" FORD and Anibal GALINDO];
- Popular Party or PP [Rene ORILLAC] (formerly Christian Democratic Party or PDC)
Political pressure groups and leaders
- Chamber of Commerce;
- National Civic Crusade;
- National Council of Organized Workers or CONATO;
- National Council of Private Enterprise or CONEP;
- National Union of Construction and Similar Workers (SUNTRACS);
- Panamanian Association of Business Executives or APEDE;
- Panamanian Industrialists Society or SIP;
- Workers Confederation of the Republic of Panama or CTRP
International organization participation
BCIE, CAN (observer), CSN (observer), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA (observer), MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, SICA, UN, UNASUR (observer), UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Diplomatic representation in the US
- chief of mission:
- Ambassador Jaime Eduardo ALEMAN Healy
- chancery:
- 2862 McGill Terrace NW, Washington, DC 20008
- telephone:
- [1] (202) 483-1407
- FAX:
- [1] (202) 483-8416
- consulate(s) general:
- Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Diego, San Francisco, Tampa
Diplomatic representation from the US
- chief of mission:
- Ambassador Barbara J. STEPHENSON
- embassy:
- Edificio 783, Avenida Demetrio Basilio Lakas Panama, Apartado Postal 0816-02561, Zona 5, Panama City
- mailing address:
- American Embassy Panama, Unit 0945, APO AA 34002
- telephone:
- [507] 207-7000
- FAX:
- [507] 317-5568
Flag description
- divided into four, equal rectangles;
- the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red;
- the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center
Economy
50 fieldsGDP - composition by sector(2008 est.)
Trading partnersexports left, imports right
Electricity
Economy - overview
Panama's dollarized economy rests primarily on a well-developed services sector that accounts for 80% of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of $5.3 billion - about 25% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are now too large to transverse the transoceanic crossway, and should help to reduce the high unemployment rate.
Strong economic performance has reduced the national poverty level to 29% in 2008; however, Panama has the second most unequal income distribution in Latin America. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism.
Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth.
Labor force
1.392 million country comparison to the world: 131 note: shortage of skilled labor, but an oversupply of unskilled labor (2008 est.)
Distribution of family income - Gini index
56.1 (2003) · 48.5 (1997) country comparison to the world: 12
Commercial bank prime lending rate
8.16% (31 December 2008) · 8.25% (31 December 2007) country comparison to the world: 103
Stock of money
$3.764 billion (31 December 2008) · $3.054 billion (31 December 2007) country comparison to the world: 61
Stock of quasi money
$15.84 billion (31 December 2008) · $14.26 billion (31 December 2007) country comparison to the world: 44
Stock of domestic credit
$19.8 billion (31 December 2008) · $17.4 billion (31 December 2007) country comparison to the world: 59
Current account balance
-$2.792 billion (2008 est.) · -$1.422 billion (2007 est.) country comparison to the world: 146
Exports
$10.29 billion (2008 est.) · $9.338 billion (2007 est.) country comparison to the world: 86 note: includes the Colon Free Zone
Imports
$15 billion (2008 est.) · $12.52 billion (2007 est.) country comparison to the world: 82 note: includes the Colon Free Zone
Reserves of foreign exchange and gold
$2.693 billion (31 December 2008 est.) · $1.935 billion (31 December 2007 est.) country comparison to the world: 97
Debt - external
$11.26 billion (31 December 2008 est.) · $10.45 billion (31 December 2007 est.) country comparison to the world: 82
Exchange rates
balboas (PAB) per US dollar - 1 (2008 est.), 1 (2007), 1 (2006), 1 (2005), 1 (2004) note: the US dollar is the legal currency
Communications
8 fieldsTelephone system
- general assessment:
- domestic and international facilities well developed
- domestic:
- mobile-cellular telephone subscribership has increased rapidly with combined fixed and mobile-cellular teledensity reaching 130 per 100 persons in 2008
- international:
- country code - 507;
- landing point for the Americas Region Caribbean Ring System (ARCOS-1), the MAYA-1, and PAN-AM submarine cable systems that together provide links to the US and parts of the Caribbean, Central America, and South America;
- satellite earth stations - 2 Intelsat (Atlantic Ocean);
- connected to the Central American Microwave System (2008)
Transportation
9 fieldsMerchant marine, 6,323 ships by type
Airports by runway lengthpaved only
Airports by runway lengthunpaved only
Networkskm
Military
No regular military forces; Panamanian public forces include: Panamanian National Police (PNP), National Air-Naval Service (SENAN), National Border Service (SENAFRONT) (2009)
6 fieldsMilitary branches
no regular military forces; Panamanian public forces include: Panamanian National Police (PNP), National Air-Naval Service (SENAN), National Border Service (SENAFRONT) (2009)
Military - note
- 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"
Transnational Issues
3 fieldsDisputes - international
organized illegal narcotics operations in Colombia operate within the remote border region with Panama
Trafficking in persons
- current situation:
- Panama is a source, transit, and destination country for women and children trafficked for the purpose of commercial sexual exploitation;
- the majority of victims are Panamanian women and children trafficked within the country into the sex trade;
- rural children in Panama may be trafficked internally to urban areas for labor exploitation
- tier rating:
- Tier 2 Watch List - Panama is on the Tier 2 Watch List for failing to show evidence of increasing efforts to combat human trafficking, particularly with respect to prosecuting, convicting, and sentencing human traffickers for their crimes, and for failing to provide adequate victim assistance (2008)
Illicit drugs
- 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
Cite this entry
Central Intelligence Agency. “Panama.” The World Factbook 2009. Archived by The Factbook, thefactbook.org/panama/2009.