Panama, which elects a president this Sunday, occupies a thin territory in Central America that has gained prominence in the regional migration crisis. Crossed by an interoceanic canal, it has a thriving economy, but a bad reputation as a tax haven.
The channel
The Panama Canal, 80 km long, connects the Pacific with the Atlantic and moves 6% of world maritime trade. Its main users are the United States and China, with which the country has strengthened its economic and investment ties after breaking with Taiwan in 2017.
The United States finished it in 1914, after a failed French attempt. For 86 years the Canal Zone was a state within a state.
In 1977, US President Jimmy Carter and Panamanian nationalist General Omar Torrijos signed the agreements for the transfer of the canal to Panama, by the end of 1999.
Expanded in 2016, it is the engine of the country’s economy, which grew 7.3% in 2023.
Noriega and the US
On December 20, 1989, the US Army invaded Panama and overthrew dictator Manuel Antonio Noriega, whom they captured and took to the United States, where they convicted him of drug trafficking.
Officially, the invasion left about 500 dead, but some organizations claim that there were thousands, especially in the bombing of the El Chorrillo neighborhood, near the Noriega barracks.
After the invasion, Panama dissolved the army. Since then there have been periodic elections.
Noriega was imprisoned for drug trafficking, money laundering and the disappearance of opponents in the United States, France and Panama, where he died in 2017.
The “Panama Papers”
The image of a “tax haven” worsened with the “Panama Papers” scandal in April 2016, when the International Consortium of Investigative Journalists reported that personalities from around the world evaded taxes and laundered money through the Panamanian law firm Mossack. Fonseca.
The investigation was based on the leak of 11.5 million documents from the law firm.
Rulers, politicians, bankers, athletes and artists hid properties, companies, assets and profits through the constitution of opaque companies in Panama.
After the “Panama Papers” the country introduced legal reforms, but the European Union keeps it on its list of “tax havens.”
The “Dubai of the Americas”
The capital of Panama is the city of skyscrapers in Latin America.
Former president Ricardo Martinelli (2009-2014) promoted Panama as the “Dubai of the Americas” for its skyscrapers, casinos, 150 banks and the only subway in Central America.
But the country, with 4.4 million inhabitants, has 22% poverty, a shortage of drinking water and a deficient garbage collection system.
Its political system is marked by clientelism and corruption. Martinelli was convicted of money laundering and sought asylum in the Nicaraguan Embassy in February to avoid going to prison.
But Panama is also a land of folklore and music. It is the birthplace of the salsa singer Rubén Blades, author of the popular song “Pedro Navaja” and of the former boxer Roberto “Manos de Piedra” Durán.
The feared Darien
The Panamanian territory is jungle and the most inhospitable area is the Darién jungle, bordering Colombia.
The Pan-American route could never be completed there and now it serves as a passage for migrants from South America going to the United States: more than half a million in 2023.
The migrants, mostly Venezuelans, Haitians, Ecuadorians, Colombians and Chinese, face the danger of criminal gangs, wild animals and raging rivers.
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
