History of Panama

Pre-Colombian

With the looting of tombs and limited record-keeping by the first colonizers, little is known about the lifestyle of the first people of Panama. What little is known about funeral practices was discovered through excavations. Important warrior chiefs were buried with all their possessions during funerals lasting days; their possessions were thought to include their wife or wives and servants, who were apparently buried alive.

Colonial Period

Rodrigo Galvan de Bastidas was the first Spanish explorer to arrive on the Central American isthmus where Panama lies. The first attempt at colonization was a short-lived settlement founded by Columbus in a location where a storm left him stranded, at the mouth of present-day Rio Belen. The first settlement in Panama was La Guardia (founded in 1510), later re-named Santa Maria la Antigua del Darien, in a province governed by Vasco Nunez de Balboa. He was the first conquistador to reach the Pacific Ocean from the Caribbean, traveling through Panama. He and his troops left a trail of dead natives in the process. Balboa was executed in 1519 because of a plot against him organized by his rival, Pedrarias de Avila. The colonial history of Central and South America is characterized by similar conflicts between governors and nobles for power and wealth in newly discovered territories.

Declared a Royal City in 1521, the city of Panama became the first European trading post on the Pacific. The Camino Real, built ca. 1519, and the Camino de las Cruces, ca. 1533, were the two major roads on the isthmus at the time. They provided access between the two oceans and made possible the transport of goods that supported the colonial system. The western part of the territory was settled last, and not without many battles against those already living there. Panama’s location made it a strategic point in the nascent global trading network; by the 1500’s goods were already passing through Panama on their way from Asia to Europe. However, trade diminished when the Spanish Crown stopped transporting goods on the Camino Real because of pirates.

As nationalism grew and economies declined in the region, Panama gained its independence from Spain on November 28, 1821. It joined a political entity called Gran Colombia consisting of six present-day nations. Panama experienced cultural growth in the 18th and 19th centuries. Its first university was established in 1749. Because of the intellectual activity occurring there—including ideas about pan-American unity, Simon Bolivar chose Panama to host the first Pan American Congress. Bolivar had liberated Venezuela, Colombia, Ecuador, Peru and Bolivia, forming Gran Colombia, which Panama later joined. Growth in Panama was later spurred by the construction of a railroad across the isthmus by the US at the time of the Gold Rush (completed in 1855). At the time, Americans preferred to sail to Panama, cross it, then sail to California rather than cross the US, which was a slower route. US history and that of Panama became intertwined at this time and this culminated with the digging of the Panama Canal.

Independent Panama

In the early 20th century, Panama was a province of Colombia. Its elite felt isolated from the seat of power in Bogotá. The Colombian government approved the digging of a canal from the Pacific to the Atlantic, assigning the task to Ferdinand de Lesseps who had just completed the Suez Canal in Egypt. This first attempt failed due to local conditions and financial problems. Panama proclaimed secession from Colombia November 3, 1903. The US was quick to lend support and recognize the new state, in return for control of the Canal Zone. The US proceeded to build and develop the canal. Panamanians had mixed feelings about this, wanting independence from this foreign power but enjoying the protection and financial support it afforded their nation.

Other Events in Panama’s Political History

The US stopped guaranteeing protection of Panama’s independence in 1936, but increased its annual payment for use of the Canal Zone to $430,000.

In 1955, among other revisions, annual rent of the Canal Zone increased to approximately two million dollars.

After student demonstrations in the 1960’s the Panamanian flag began flying over the Canal Zone.

General Omar Torrijos came to power after a coup d’etat in 1968. His policies were nationalistic and supportive of reform for the poorer classes. He reviewed the constitution, re-established ties with Cuba, joined the movement of non-aligned nations, nationalized energy and telecommunications, created state enterprises and cooperatives and legislated to promote banking, among other actions. He was the first to grant any benefits to indigenous peoples. In 1977 he reached and agreement with US President Jimmy Carter ensuring the Canal Zone would be returned to Panama without reservations by 1999 (although US Congress legislated to reserve itself the right to protect the zone if it is threatened, even after 1999). The transfer took place December 31, 1999. Torrijos died in a plane crash in 1981.

Manuel Antonio Noriega was appointed chief of the Panamanian Defense Forces in 1983 and his influence on the politics of that nation led to rising tensions with the US. In 1989 General Noriega was appointed head of state and war with the US was declared. With Americans in Panama in danger, the US embarked on an invasion named Operation Just Cause in December of 1989. The mission was successful and Guillermo Endara was reinstalled as president. The number of deaths resulting from the intervention is debated. The US intervention itself is politically charged because while it served to depose a dictator, Noriega, this same man was supported and trained by the US at one time.

After Noriega

Panama suffered economically from a US boycott on Panama which had gone into effect before Noriega’s downfall. Following the invasion there was an increase in violence and crime; paramilitary groups which remained armed committed crimes as well. In May 1999 Panama elected its first woman president, Mireya Moscoso.