Panama

Panama

Introduction

Background

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 (estimated to cost $5.3 billion) 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

Location

Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica

Geographic coordinates

9 00 N, 80 00 W

Map references

Central America and the Caribbean

Area

total: 75,420 sq km
country comparison to the world: 118 land:74,340 sq km
water:1,080 sq km

Area – comparative

slightly smaller than South Carolina

Land boundaries

total: 555 km
border countries:Colombia 225 km, Costa Rica 330 km

Coastline

2,490 km

Maritime claims

territorial sea: 12 nm
contiguous zone:24 nm
exclusive economic zone:200 nm or edge of continental margin

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

Elevation extremes

lowest point: Pacific Ocean 0 m
highest point:Volcan Baru 3,475 m

Natural resources

copper, mahogany forests, shrimp, hydropower

Land use

arable land: 7.26%
permanent crops:1.95%
other:90.79% (2005)

Irrigated land

430 sq km (2008)

Total renewable water resources

148 cu km (2000)

Freshwater withdrawal (domestic/industrial/agricultural)

total: 0.82cu km/yr (67%/5%/28%)
per capita:254cu m/yr (2000)

Natural hazards

occasional severe storms and forest fires in the Darien area

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 and Society

Nationality

noun: Panamanian(s)
adjective:Panamanian

Ethnic groups

mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%

Languages

Spanish (official), English 14%
note:many Panamanians are bilingual

Religions

Roman Catholic 85%, Protestant 15%

Population

3,460,462 (July 2011 est.)
country comparison to the world: 132

Age structure

0-14 years: 28.6% (male 504,726/female 484,291)
15-64 years:64.2% (male 1,123,777/female 1,098,661)
65 years and over:7.2% (male 115,425/female 133,582) (2011 est.)

Median age

total: 27.5 years
male:27.1 years
female:27.9 years (2011 est.)

Population growth rate

1.435% (2011 est.)
country comparison to the world: 84

Birth rate

19.43 births/1,000 population (2011 est.)
country comparison to the world: 94

Death rate

4.65 deaths/1,000 population (July 2011 est.)
country comparison to the world: 197

Net migration rate

-0.42 migrant(s)/1,000 population (2011 est.)
country comparison to the world: 134

Urbanization

urban population: 75% of total population (2010)
rate of urbanization:2.3% annual rate of change (2010-15 est.)

Major cities – population

PANAMA CITY (capital) 1.346 million (2009)

Sex ratio

at birth: 1.045 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 (2011 est.)

Maternal mortality rate

71 deaths/100,000 live births (2008)
country comparison to the world: 84

Infant mortality rate

total: 11.64 deaths/1,000 live births
country comparison to the world: 138 male:12.41 deaths/1,000 live births
female:10.83 deaths/1,000 live births (2011 est.)

Life expectancy at birth

total population: 77.79 years
country comparison to the world: 54 male:75.02 years
female:80.68 years (2011 est.)

Total fertility rate

2.45 children born/woman (2011 est.)
country comparison to the world: 86

Health expenditures

8.3% of GDP (2009)
country comparison to the world: 48

Physicians density

1.5 physicians/1,000 population (2000)
country comparison to the world: 79

Hospital bed density

2.2 beds/1,000 population (2009)
country comparison to the world: 94

Drinking water source

improved:
urban: 97% of population
rural: 83% of population
total: 93% of population
unimproved:
urban: 3% of population
rural: 17% of population
total: 7% of population (2008)

Sanitation facility access

improved:
urban: 75% of population
rural: 51% of population
total: 69% of population
unimproved:
urban: 25% of population
rural: 49% of population
total: 31% of population (2008)

HIV/AIDS – adult prevalence rate

0.9% (2009 est.)
country comparison to the world: 51

HIV/AIDS – people living with HIV/AIDS

20,000 (2009 est.)
country comparison to the world: 78

HIV/AIDS – deaths

1,500 (2009 est.)
country comparison to the world: 60

Major infectious diseases

degree of risk: intermediate
food or waterborne diseases:bacterial diarrhea
vectorborne disease:dengue fever and malaria (2009)

Children under the age of 5 years underweight

3.9% (2008)
country comparison to the world: 94

Education expenditures

3.8% of GDP (2008)
country comparison to the world: 110

Literacy

definition: age 15 and over can read and write
total population:91.9%
male:92.5%
female:91.2% (2000 census)

School life expectancy (primary to tertiary education)

total: 13 years
male:13 years
female:14 years (2008)

Unemployment, youth ages 15-24

total: 14.9%
country comparison to the world: 75 male:11.7%
female:21.1% (2008)

Government

Country name

conventional long form: Republic of Panama
conventional short form:Panama
local long form:Republica de Panama
local short form:Panama

Government type

constitutional democracy

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

9 provinces (provincias, singular – provincia) and 3 indigenous territories* (comarcas)

Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Embera-Wounaan*, Herrera, Kuna Yala*, Los Santos, Ngobe-Bugle*, Panama, Veraguas

Independence

3 November 1903 (from Colombia

became independent from Spain on 28 November 1821)

National holiday

Independence Day, 3 November (1903)

Constitution

11 October 1972

revised several times

Legal system

civil law system

judicial review of legislative acts in the Supreme Court of Justice

International law organization participation

accepts compulsory ICJ jurisdiction with reservations

accepts ICCt jurisdiction

Suffrage

18 years of age

universal and compulsory

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
(For more information visit the World Leaders website ) 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 on 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 – CD (Democratic Change), Panamenista, MOLIRENA (Nationalist Republican Liberal Movement), and UP (Patriotic Union Party)

Legislative branch

unicameral National Assembly or Asamblea Nacional (71 seats

members elected by popular vote to serve five-year terms)
elections:last held on 3 May 2009 (next to be held in May 2014)
election results:percent of vote by party – NA

seats by party – PRD 26, Panamenista 22, CD 14, UP 4, Independent 2, MOLIRENA 2, PP 1

note – changes in political affiliation now reflect the following seat distribution: as of 1 March 2011 – seats by party – PRD 23, Panamenista 20, CD 23, UP 2, MOLIRENA 2, PP 1
note:legislators from outlying rural districts 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 staggered 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 [Francisco SANCHEZ Cardenas]

Nationalist Republican Liberal Movement or MOLIRENA [Sergio GONZALEZ-Ruiz]

Panamenista Party [Juan Carlos VARELA Rodriguez] (formerly the Arnulfista Party)

Patriotic Union Party or UP (combination of the Liberal National Party or PLN and the Solidarity Party or PS)[Anibal GALINDO]

Popular Party or PP [Milton HENRIQUEZ] (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, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA, MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, SICA, UN, UNASUR (observer), UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

Diplomatic representation in the US

chief of mission: Ambassador Mario Ernesto JARAMILLO Castillo
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 Phyllis M. POWERS
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

the blue and red colors are those of the main political parties (Conservatives and Liberals respectively) and the white denotes peace between them

the blue star stands for the civic virtues of purity and honesty, the red star signifies authority and law

National symbol(s)

harpy eagle

National anthem

name: “Himno Istemno” (Isthmus Hymn)
lyrics/music:Jeronimo DE LA OSSA/Santos A. JORGE
note:adopted 1925

Economy

Economy – overview

Panama’s dollar-based economy rests primarily on a well-developed services sector that accounts for three-quarters of GDP. Services include operating the Panama Canal, logistics, 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 too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama also plans to construct a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama’s booming transportation and logistics services sectors, along with aggressive infrastructure development projects, will likely lead the economy to continued growth in 2011. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About 30% of the population lives in poverty

however, from 2006 to 2010 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to 6% of the labor force. Panama and the United States signed a Trade Promotion Agreement in June 2007, which, when implemented, will help promote the country’s economic growth. Seeking removal from the Organization of Economic Development’s gray-list of tax havens, Panama has also recently signed various double taxation treaties with other nations.

GDP (purchasing power parity)

$44.36 billion (2010 est.)
country comparison to the world: 94 $41.26 billion (2009 est.)
$39.99 billion (2008 est.)
note:data are in 2010 US dollars

GDP (official exchange rate)

$26.78 billion (2010 est.)

GDP – real growth rate

7.5% (2010 est.)
country comparison to the world: 28 3.2% (2009 est.)
10.1% (2008 est.)

GDP – per capita (PPP)

$13,000 (2010 est.)
country comparison to the world: 90 $12,300 (2009 est.)
$12,100 (2008 est.)
note:data are in 2010 US dollars

GDP – composition by sector

agriculture: 4.6%
industry:16.7%
services:78.7% (2010 est.)

Labor force

1.485 million
country comparison to the world: 129 note:shortage of skilled labor, but an oversupply of unskilled labor (2010 est.)

Labor force – by occupation

agriculture: 17.6%
industry:8.8%
services:73.6% (2009 est.)

Unemployment rate

4.2% (2010 est.)
country comparison to the world: 37 6.4% (2009 est.)

Population below poverty line

25.6% (2010 est.)

Household income or consumption by percentage share

lowest 10%: 1.3%
highest 10%:40.6% (2009)

Distribution of family income – Gini index

51 (2010 est.)
country comparison to the world: 19 56.1 (2003)

Investment (gross fixed)

27.1% of GDP (2010 est.)
country comparison to the world: 44

Budget

revenues: $6.874 billion
expenditures:$7.386 billion (2010 est.)

Taxes and other revenues

25.7% of GDP (2010 est.)
country comparison to the world: 121

Budget surplus (+) or deficit (-)

-1.9% of GDP (2010 est.)
country comparison to the world: 71

Public debt

43.3% of GDP (2010 est.)
country comparison to the world: 63 45.6% of GDP (2009 est.)

Inflation rate (consumer prices)

3.5% (2010 est.)
country comparison to the world: 116 2.4% (2009 est.)

Commercial bank prime lending rate

7.74% (31 December 2010 est.)
country comparison to the world: 125 8.25% (31 December 2009 est.)

Stock of narrow money

$5.23 billion (31 December 2010 est.)
country comparison to the world: 89 $4.404 billion (31 December 2009 est.)

Stock of broad money

$24.19 billion (31 December 2010 est.)
country comparison to the world: 80 $21.78 billion (31 December 2009 est.)

Stock of domestic credit

$23.5 billion (31 December 2010 est.)
country comparison to the world: 75 $20.17 billion (31 December 2009 est.)

Market value of publicly traded shares

$10.92 billion (31 December 2010)
country comparison to the world: 72 $8.048 billion (31 December 2009)
$6.568 billion (31 December 2008)

Agriculture – products

bananas, rice, corn, coffee, sugarcane, vegetables

livestock

shrimp

Industries

construction, brewing, cement and other construction materials, sugar milling

Industrial production growth rate

4.5% (2010 est.)
country comparison to the world: 93

Electricity – production

6.546 billion kWh (2010 est.)
country comparison to the world: 105

Electricity – consumption

5.805 billion kWh (2010 est.)
country comparison to the world: 109

Electricity – exports

95 million kWh (2009 est.)

Electricity – imports

73 million kWh (2008 est.)

Oil – production

0 bbl/day (2010 est.)
country comparison to the world: 211

Oil – consumption

97,000 bbl/day (2010 est.)
country comparison to the world: 79

Oil – exports

0 bbl/day (2009 est.)
country comparison to the world: 202

Oil – imports

77,910 bbl/day (2009 est.)
country comparison to the world: 78

Oil – proved reserves

0 bbl (1 January 2010 est.)
country comparison to the world: 178

Natural gas – production

0 cu m (2009 est.)
country comparison to the world: 113

Natural gas – consumption

0 cu m (2009 est.)
country comparison to the world: 119

Natural gas – exports

0 cu m (2009 est.)
country comparison to the world: 160

Natural gas – imports

0 cu m (2009 est.)
country comparison to the world: 171

Natural gas – proved reserves

0 cu m (1 January 2011 est.)
country comparison to the world: 180

Current account balance

-$2.523 billion (2010 est.)
country comparison to the world: 166 -$43.5 million (2009 est.)

Exports

$11.33 billion (2010 est.)
country comparison to the world: 83 $11.13 billion (2009 est.)
note:includes the Colon Free Zone

Exports – commodities

bananas, shrimp, sugar, coffee, clothing

Exports – partners

Venezuela 20.6%, South Korea 18.2%, Ecuador 6.3%, India 6.2%, Japan 5.6%, Greece 5.3%, US 5.3% (2010)

Imports

$15.95 billion (2010 est.)
country comparison to the world: 79 $13.26 billion (2009 est.)
note:includes the Colon Free Zone

Imports – commodities

capital goods, foodstuffs, consumer goods, chemicals

Imports – partners

Japan 25.3%, China 19.6%, Singapore 12.3%, US 10%, South Korea 9.3%, Ecuador 4.1% (2010)

Reserves of foreign exchange and gold

$2.715 billion (31 December 2010 est.)
country comparison to the world: 103 $3.028 billion (31 December 2009 est.)

Debt – external

$13.22 billion (31 December 2010 est.)
country comparison to the world: 87 $12.42 billion (31 December 2009 est.)

Stock of direct foreign investment – at home

$NA

Stock of direct foreign investment – abroad

$NA

Exchange rates

balboas (PAB) per US dollar -
1 (2010)
1 (2009)
1 (2008)
1 (2007)
1 (2006)
note:the balboa exists alongside the dollar and may be used interchangably

Transportation

Airports

118 (2010)
country comparison to the world:50

Airports – with paved runways

total: 54
over 3,047 m:1
2,438 to 3,047 m:1
1,524 to 2,437 m:5
914 to 1,523 m:17
under 914 m:30 (2010)

Airports – with unpaved runways

total: 64
1,524 to 2,437 m:1
914 to 1,523 m:11
under 914 m:52 (2010)

Heliports

3 (2010)

Pipelines

oil 128 km

Railways

total: 76 km
country comparison to the world: 127 standard gauge:76 km 1.435-m gauge (2010)

Roadways

total: 11,978 km
country comparison to the world: 130 paved:4,300 km
unpaved:7,678 km (2002)

Waterways

800 km (includes the 82-km Panama Canal that is being widened) (2010)
country comparison to the world: 73

Merchant marine

total: 6,379
country comparison to the world: 1 by type:barge carrier 1, bulk carrier 2,383, cargo 1,129, carrier 18, chemical tanker 626, combination ore/oil 3, container 751, liquefied gas 192, passenger 42, passenger/cargo 61, petroleum tanker 576, refrigerated cargo 212, roll on/roll off 100, specialized tanker 3, vehicle carrier 282
foreign-owned:5,244 (Albania 3, Argentina 7, Australia 5, Azerbaijan 1, Bahamas 7, Bangladesh 3, Belgium 2, Bermuda 15, Brazil 3, Bulgaria 6, Burma 3, Canada 5, Chile 17, China 574, Colombia 2, Croatia 2, Cuba 4, Cyprus 8, Denmark 46, Ecuador 6, Egypt 11, Finland 2, France 13, Gabon 1, Germany 27, Gibraltar 1, Greece 402, Hong Kong 125, India 17, Indonesia 14, Iran 5, Ireland 1, Isle of Man 11, Israel 1, Italy 23, Japan 2347, Jordan 13, Kuwait 12, Latvia 4, Lebanon 2, Lithuania 4, Luxembourg 1, Malaysia 12, Maldives 3, Malta 2, Mexico 6, Monaco 14, Morocco 1, Netherlands 8, Nigeria 7, Norway 89, Oman 8, Pakistan 5, Peru 12, Philippines 6, Poland 3, Portugal 9, Qatar 1, Romania 2, Russia 39, Saudi Arabia 8, Singapore 79, South Korea 366, Spain 40, Sweden 1, Switzerland 22, Syria 42, Taiwan 337, Tanzania 2, Thailand 6, Tunisia 1, Turkey 79, UAE 83, UK 33, Ukraine 11, US 102, Venezuela 8, Vietnam 37, Yemen 4)
note:this country allows large numbers of ships owned by foreign entities to be registered in its national shipping registry and to fly its flag

these ships operate under the laws of the flag state
registered in other countries:1 (Honduras 1) (2010)

Ports and terminals

Balboa, Colon, Cristobal

Military

Military branches

no regular military forces

Panamanian public forces include: Panamanian National Police (PNP), National Air-Naval Service (SENAN), National Border Service (SENAFRONT) (2010)

Manpower available for military service

males age 16-49: 890,006 (2010 est.)

Manpower fit for military service

males age 16-49: 731,254
females age 16-49:728,329 (2010 est.)

Manpower reaching militarily significant age annually

male: 32,142
female:30,879 (2010 est.)

Military expenditures

1% of GDP (2006)
country comparison to the world: 128

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

Disputes – 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 subjected to sex trafficking and forced labor

although some Panamanian women and girls are subjected to sex trafficking in other countries in Latin America and in Europe, most Panamanian trafficking victims are exploited within the country

commercial sexual exploitation of children was greater in rural areas

Panamanian children, mostly young girls, are subjected to domestic servitude

most foreign trafficking victims are adult women from Colombia, neighboring Central American countries, and the Dominican Republic

some victims migrate voluntarily to Panama to work but are subsequently forced into prostitution or domestic servitude
tier rating:Tier 2 Watch List – authorities established a commission which drafted comprehensive anti-trafficking legislation to bring anti-trafficking laws in line with the 2000 UN Trafficking in Persons (TIP) Protocol

the government identified at least 43 trafficking victims and prosecuted five sex trafficking offenders, and in partnership with civil society and foreign governments, provided training to Panamanian officials

however, Panama continued to lack prohibitions against forced labor in its penal code, and authorities did not convict any trafficking offenders

specialized victim services, particularly for adult victims, remained limited, and authorities did not report using proactive procedures to identify trafficking victims among detained migrants (2011)

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