History of Panama

The Isthmus Before the Canal: Pre-Columbian Roots

Long before it became a crossroads for global trade, Panama was a land bridge of immense significance. This narrow isthmus shaped the history of the Americas, hosting a rich tapestry of cultures that thrived for millennia before the arrival of Europeans. As you travel, you will encounter the living heritage of these peoples, particularly the Guna and Emberá communities, whose traditions endure.

A Bridge Between Continents

• The Isthmus of Panama was the critical landmass that formed during the Pliocene epoch, enabling the Great American Interchange. This monumental event allowed animal species to migrate between North and South America, and later, provided the corridor for the first human settlers to populate the southern continent.

• Archaeological evidence points to a long history of human settlement. Sites like Monagrillo reveal some of the most ancient pottery in the New World, dating back over 4,500 years, indicating the presence of early, settled agricultural communities that mastered the isthmus’s resources.

The Chiefdoms (Cacicazgos)

• Upon Spanish arrival in the 16th century, Panama was not an empty wilderness but a mosaic of sophisticated societies. It was inhabited by dozens of distinct indigenous groups organized into chiefdoms, or cacicazgos, each with its own language and territory.

• These societies were characterized by complex social structures and extensive trade networks that stretched across the isthmus and beyond. Their craftsmanship was exceptional, particularly their intricate goldwork (huacas) and detailed pottery, which served both ceremonial and practical purposes.

• While many of these groups were lost to conquest and disease, several have preserved their cultural autonomy. Today, the Guna (Kuna), who govern the San Blas Islands (Guna Yala), the Ngäbe-Buglé of the western highlands, and the Emberá of the Darién rainforest are vibrant and vital parts of Panama’s national identity.

The Spanish Crown: Crossroads of the New World

Panama’s geography destined it to be the heart of the Spanish Empire’s logistical network. The colony became the vital link between the riches of the Pacific and the treasure fleets of the Atlantic, a history etched into the stone ruins and fortified ports you will explore.

Discovery and Conquest

• The first European to lay eyes on Panama’s Caribbean coast was the Spanish explorer Rodrigo de Bastidas in 1501. This initial contact set the stage for further exploration of the promising isthmus.

• The pivotal moment came in 1513 when Vasco Núñez de Balboa, guided by indigenous allies, trekked across the dense jungle and became the first European to see the Pacific Ocean from the New World, claiming it for the Spanish Crown.

The Gold Trail (Camino de Cruces & Camino Real)

• In 1519, the Spanish established Panama City on the Pacific coast, the first permanent European settlement in the region. The ruins of this original city, known today as Panama Viejo, are a powerful testament to its former glory and violent end.

• For over a century, Panama served as the primary transit point for the vast silver and gold fortunes extracted from Peru. Treasure was hauled overland via the legendary Camino Real and Camino de Cruces to Caribbean ports like Nombre de Dios and, later, the heavily fortified Portobelo.

• This immense wealth attracted England’s most notorious privateers. Sir Francis Drake repeatedly raided Panamanian shipping and settlements, while the buccaneer Henry Morgan led a devastating overland attack in 1671, sacking and burning Panama Viejo to the ground.

The Move to Casco Viejo

• Following Morgan’s catastrophic raid, the Spanish decided the original city was indefensible. They relocated several kilometers down the coast to a rocky peninsula that was easier to protect.

• This new city, which you will know as Casco Viejo, was built as a fortress. Surrounded by thick sea walls and strategically designed with a grid of narrow streets, it was meant to repel future attacks. Today, its restored colonial architecture and historic plazas are the heart of Panama City’s cultural life.

Independence and Union with Colombia

After centuries under Spanish rule, Panama’s path to sovereignty was a gradual one. Its initial independence led not to nationhood but to becoming a province of a larger South American republic, a period that would ultimately fuel the desire for self-determination.

Breaking from Spain

• As the Spanish Empire weakened, Panama declared its independence in 1821. The break was achieved without the widespread violence seen in other colonies, largely through political maneuvering by the criollo elite.

• Fearing they were too small to survive alone, Panama’s leaders voluntarily joined Simón Bolívar’s newly formed federation of Gran Colombia, which also included modern-day Colombia, Venezuela, and Ecuador.

The Forgotten Province

• For much of the 19th century, Panama was a remote and often-neglected province governed from distant Bogotá. The isthmus fell into economic decline as global trade routes shifted.

• Everything changed with the California Gold Rush in 1849. The isthmus once again became the fastest route between the eastern and western coasts of the United States. This boom led to the construction of the Panama Railroad, the world’s first transcontinental railway, re-establishing Panama as a critical artery of world commerce.

The Canal: A Dream Forged in Steel and Sacrifice

The idea of a canal across Panama is centuries old, but its realization in the early 20th century was a saga of ambition, failure, and geopolitical might. The story of its construction is visible everywhere, from the waterway itself to the quiet cemeteries and old administrative buildings that dot the former Canal Zone.

The French Attempt

• In the 1880s, fresh from his success with the Suez Canal, French diplomat Ferdinand de Lesseps launched an ambitious project to build a sea-level canal in Panama. The effort was plagued from the start.

• Engineers were unprepared for the torrential rains, unstable soil, and dense jungle. Worse, tropical diseases, particularly malaria and yellow fever, devastated the workforce, claiming an estimated 20,000 lives. The project ultimately collapsed in a storm of bankruptcy and scandal.

US Intervention and Panamanian Nationhood

• The United States, under the expansionist vision of President Theodore Roosevelt, saw the canal as a strategic imperative. When the Colombian government rejected a treaty to grant the U.S. canal rights, Roosevelt chose another path.

• The U.S. supported a separatist movement in Panama, which declared independence from Colombia in 1903. The subsequent Hay-Bunau-Varilla Treaty granted the U.S. rights to build the canal and control a wide swath of territory “in perpetuity.”

• The American construction effort (1904-1914) succeeded where the French had failed. The victory was twofold: first, a medical one, as Dr. William Gorgas eradicated the mosquitoes that carried yellow fever and malaria; and second, an engineering one, with the creation of a revolutionary system of locks and the monumental excavation of the Culebra Cut.

The 20th Century: Living with the Canal

The opening of the Panama Canal was a triumph of engineering but created a complex political reality. For most of the 20th century, Panama’s story was defined by its relationship with the United States and the struggle to achieve full sovereignty over its own territory.

The Canal Zone: A Country Within a Country

• The 1903 treaty established the Panama Canal Zone, a 10-mile-wide, 553-square-mile territory administered entirely by the United States. This zone, with its own police, courts, and government, effectively split Panama in two and became a source of increasing friction.

• Throughout the century, Panamanian nationalism grew, fueled by resentment over the “in perpetuity” clause of the treaty and the visible disparity between the American “Zonians” and the general Panamanian population.

• Tensions boiled over on January 9, 1964, when Panamanian students attempting to fly their flag in the Zone were met with force. The ensuing riots, now commemorated as Martyrs’ Day, left over 20 Panamanians dead and became a critical catalyst for treaty renegotiations.

Reclaiming Sovereignty: Torrijos and Carter

• General Omar Torrijos, who rose to power in 1968, made the pursuit of a new canal treaty the centerpiece of his rule, rallying international support for Panama’s cause.

• His efforts culminated in 1977 with the signing of the Torrijos-Carter Treaties with U.S. President Jimmy Carter. These historic agreements abolished the Canal Zone and established a clear timeline for the complete transfer of the canal to Panamanian control by the end of the century.

The Noriega Era and US Invasion

• Following Torrijos’s death, Panama fell under the de facto military dictatorship of Manuel Noriega. His regime became increasingly corrupt and involved in international drug trafficking.

• In December 1989, relations with the U.S. deteriorated to the point that President George H.W. Bush launched Operation Just Cause. The U.S. military invaded Panama, deposing Noriega and ending his rule.

Modern Panama: A Nation in Control

The tumultuous events of the 20th century laid the groundwork for the prosperous and sovereign nation you see today. Having assumed full control of its greatest asset, Panama has confidently stepped onto the world stage, shaping its own destiny.

The Handover and Beyond

• At noon on December 31, 1999, a historic moment arrived: Panama formally assumed full control of the Panama Canal. This event was not just a transfer of property but the realization of a century-long national aspiration.

• The handover ushered in an era of unprecedented economic growth. With the canal’s revenues now fueling the national treasury, Panama City has transformed into a gleaming hub of international finance and commerce, as evidenced by its dramatic skyline.

The Canal Expansion

• Demonstrating its capacity to manage and modernize the waterway, Panama undertook a massive canal expansion project, which was completed in 2016. A new, larger set of locks was built to accommodate the enormous “Neopanamax” container ships that now dominate global shipping.

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