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  • Title: Panama.
    Author: United States. Department of State. Bureau of Public Affairs.
    Journal: Backgr Notes Ser; 1985 May; ():1-10. PubMed ID: 12178112.
    Abstract:
    Panama's population characteristics, geographical features, communication system, history, government, economy, current political situation, and foreign relations are briefly described. Ethnically, Panama's population of 2,001,000 (1984) is 70% mestizo, 14% West Indian, 10% white, and 6% Indian. 93% of the population is Roman Catholic, and the official language is Spanish. The school enrollment rate is close to 100% at the primary level and 65% at the secondary level. The literacy rate is 93.7% for urban residents and 61.8% for rural residents. The infant mortality rate is 20.1, and life expectancy is 71 years. Panama is a hilly and mountainous country, and the eastern region is covered by tropical forests. In 1519, the Spanish established the old city of Panama near the isthmus, i.e., the narrowest section (52 miles) of the country separating the Pacific Ocean and the Caribbean Sea, and between then and 1670s, the isthmus played a vital role in the movement of gold and silver from the New World to Spain. Ships from the western side of South American sailed to the western side of the isthmus. Their contents were unloaded, hauled across the isthmus, and reloaded on ships bound for Spain. In 1982 Panama won its independence from Spain and the following year voluntarily became a part of the Republic of Greater Colombia. Since the early 1860s, the idea of building a canal through the isthmus was entertained by various groups, and in the late 1800s a Frenchman unsuccessfully attempted the task. In 1903 Panama declared its independence from Colombia after Colombia refused to sign a treaty to allow the US to construct a canal. Panama, as an independent nation, then signed the Hay/Bunau-Varilla Treaty with the US. The treaty gave the US the right to build a canal. Panama retained sovereignty over the canal zone, i.e., a 5 mile area on each side of the canal, but the US was given all the rights in the area normally exercised by a sovereign power. The treaty was resented by the Panamaian public, and the government sought for many years to renegotiate the treaty. Riots against the US in 1964 finally lead to renegotiation and the signing of new canal treaties in 1977. The new treaties became effective in October 1979. Under the terms of the treaty, Panama resumed control of the canal zone in 1979. The US will continue to operate the canal and retain primary responsibility for defending the canal through 1999; however, Panama, during the 1979-99 period, will gradually increase its control over the operation and defense of the canal, and in 1999 will assume full responsibility for operating the canal. Both countries are pledged to maintain the neutrality of the canal indefinitely. Each year, until 1999, Panama will receive a yearly annuity of US$10 million, US$.30 on each ton transiting the canal, and a contingency payment of up to US$10 million. Between 1903-68 Panama was controlled by a conservative and commercially oriented oligarchy. In 1968, the National Guard removed the president and instituted a junta government under the control of Brigdier General Torrijos Herrera. Between 1972-78 Torrijos was given extraordinary executive powers. The junta promoted economic policies favoring the rural areas and the lower and middle income groups. In 1978 a National Assembly was elected and in 1983 a new constitution was adopted. The constitution provides for an elected legislature, an elected president, and a judicial branch. In 1984, the current president, Nicolas Ardito Barletta, was elected on a coalition slate. Panama developed as an urban, service, and commercial economy due to its position as a transit point between the east and west. Half of the urban population resides in the metropolitan areas surrounding the canal. The country also has a large international banking community. The agricultural sector is small and poorly developed. (Abstract Truncated)
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