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Area Handbook Series: Panama: a Country Study

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Area Handbook Series: Panama: a Country Study area handbook series lPanama a country study DTIC 1 CO S119tDJU2ELECTE N0 ,. A10100 to pubi, , i4 D~a~ -7ti 3ui~ 6o Panama a country study Federal Research Division Library of Congress Edited by Sandra W. Meditz and Dennis M. Hanratty Research Completed December 1987 F89 7 21 036 On the cover: Cuna Indian mola design of a man gathering coconuts Cr ... CC M A z a C3 Fourth Edition, 1989; First Printing, 1989. Copyright ©1989 United States Government as represented by the Secretary of the Army. All rights reserved. Library of Congress Cataloging-in-Publication Data Panama: a country study. (Area handbook series) (DA Pam 550-46) Supt. of Docs. no.: D 101.22:550-46/987 "Research completed December 1987" Bibliography: pp. 295-311. Includes index. 1. Panama. I. Meditz, Sandra W., 1950- II. Hanratty, Dennis M., 1950- . III. Library of Congress. Federal Research Division. IV. Series. V. Series: DA Pam 550-46. F1563.P323 1989 972.87 88-600486 Headquarters, Department of the Army DA Pam 550-46 For salc by lie Supeintendent of Dorurent. I Ii Government Printing Office Wizhington, D.C 20402 Foreword This volume is one in a continuing series of books now being prepared by the Federal Research Division of the Library of Con- gress under the Country Studies---Area Handbook Program. The last page of this book lists the other published studies. Most books in the series deal with a particular foreign country, describing and Lizalyzing its political, economic, social, and national security systems and institutions, and examining the interrelation- ships of those systems and the ways they are shaped by cultural factors. Each study is written by a multidisciplinary team of social scientists. The authors seek to provide a basic understanding of the observed society, striving for a dynamic rather than a static portrayal. Particular attention is devoted to the people who make up the society, their origins, dominant beliefs and values, their com- mon interests and the issues on which they are divided, the nature and extent of their involvement with national institutions, and their attitudes toward each other and toward their social system and political order. The books represent the analysis of the authors and should not be construed as an expression of an official United States govern- ment position, policy, or decision. The authors have sought to adhere to accepted standards of scholarly objectivity. Corrections, additions, and suggestions for changcs from readers will be wel- comed for use in future editions. Louis R. Mortimer Acting Chief Federal Research Division Library of Congress Washington, D.C. 20540 11 nmln~n~mllniIIIi |i n IIININ Acknowledgments The authors wish to acknowledge the contributions of the fol- lowing individuals who, under the chairmanship of Richard F. Nyrop, wrote the 1980 edition of Panama: A Country Study. The authors of the 1980 edition were as follows: Jan Knippers Black, "Historical Setting"; Richard F. Nyrop, "The Society and Its Environment"; Darrel R. Eglin, "The Economy"; James D. Rudolph, "Government and Politics"; and Eugene K. Keefe, "National Security." Their work provided the organization and structure of much of the present volume, as well as substantial por- tions of the text. The authors are grateful to individuals in various agencies of the United States government and in international and private institutions who gave of their time, research materials, and spe- cial knowledge to provide information and perspective. Officials at the World Bank were especially helpful in providing economic data. Similarly, officials of the United States Department of Defense, both in Washington and Panama, supplied up-to-date information on Panama's defense forces. The authors also wish to thank those who contributed directly to the preparation of the manuscript. These include Richard F. Nyrop, who reviewed all drafts and served as liaison with the spon- soring agency; Barbara Auerbach, Ruth Nieland, Michael Pleasants, and Gage Ricard, who edited the chapters; Martha E. Hopkins, who managed editing and book production; and Barbara Edgerton, Janie L. Gilchrist, Monica Shimmin, and Izella Watson, who did the word processing. Catherine Schwartzstein performed the final prepublication editorial review, and Amy Bodnar, of Com- municators Connections, compiled the index. Diann Johnson of the Library of Congress Printing and Processing Section performed phototypesetting, under the supervision of Peggy Pixley. David P. Cabitto, who was assisted by Sandra K. Cotugno and Kimberly A. Lord, provided invaluable graphics support. Susan M. Lender reviewed the map drafts, which were prepared by Harriett R. Blood, Kimberly A. Lord, and Greenhorne and O'Mara, Inc. Paulette Marshall of the Library of Congress deserves special thanks for designing the illustrations for the book's cover and the title page of each chapter. The authors also would like to thank several individuals who provided research support. Sisto Flores supplied information on v ranks and insignia, Joan C. Barch wrote the section on geography in Chapter 2, and Richard A. Haggerty supplied a variety of infor- mation for inclusion in both the text and the bibliography. Finally, the authors acknowledge the generosity of the individuals and public and private agencies who allowed their photographs to be used in this study. We are indebted especially to those who con- tributed original work not previously published. vi Contents, -- Page ,x"Acknowledgments ........................... v Preface ................................... xiii Country Profile ............................. xv Introduction ............................... xxiii Chapter 1. Historical Setting' ,.. ... 1 Jan Knippers B'ack and Edmundo Flores THE CONQUEST .................................. 6 THE SPANISH COLONY ............................ 10 THE COLOMBIA DEPARTMENT .................... 14 Independence from Spain ...................... 14 The California Gold Rush and the Railroad ........ 18 The Uncompleted French Canal ................. 19 The Spillover from Colombia's Civil Strife ......... 20 THE UNITED STATES PROTECTORATE ............. 22 The 1903 Treaty and Qualified Independence ...... 22 Organizing the New Republic ................... 24 Building the Canal ............................ 25 United States Intervention and Strained Relations ... 27 A New Accommodation ........................ 29 THE BISECTED REPUBLIC ......................... 32 The W ar Years .............................. 32 The National Guard in Ascendance .............. 34 The Politics of Frustrated Nationalism ............ 35 THE NEGOTIATION OF NEW TREATIES ............. 38 The 1964 Riots .............................. 38 The Oligarchy under Fire ...................... 40 The Government of Torrijos and the National G uard ................................... 43 The Treaty Negotiations ....................... 48 The 1977 Treaties and Associated Agreements ...... 51 Torrijos Government Undertakes "Democratization" ........................... 57 THE POST-TORRIJOS ERA ......................... 59 Torrijos's Sudden Death ....................... 59 Noriega Takes Control ........................ 61 vii Chapter 2. The Society and Its Environment .... 67 Patrici Ick GEOGRAPHY ........................... .. ...... 70 POPULATION ........................ ... .......... 74 Regions of Settlement ........ ............. 74 Size and Growth ....... .................. 75 ETHNIC GROUPS .. .......................... 77 IAntillea -ns riaG,................................. .............................. 7980 SOCI ORGANIZATION ............................ 94 - Fam ily and Kin .............................. 94 Rural Society ................................ 97 M igration .................................. 102 Urban Society ............................... 106 R ELIG IO N ........................................ 112 EDUCATION ...................................... 115 HEALTH AND WELFARE ........................... 118 "- Chapter 3. The Economy .. ................... 123 Scott D. Tollefson GROWTH AND STRUCTURE OF THE ECONOMY ..... 126 Changing Structure of the Economy .............. 127 Recent Economic Performance .................. 130 ROLE OF GOVERNMENT .......................... 131 M onetary Policy ............................. 133 Fiscal Policy ................................ 134 HUMAN RESOURCES AND INCOME ................ 136 Employm ent ................................ 137 Wage Policy and Labor Code ................... 138 Income Distribution .......................... 139 PANAMA CANAL .................................. 139 Role of Canal from 1903 to 1977 ................ 140 Economic Implications of 1977 Treaties ........... 141 Current Use and Future of the Canal ............. 142 SERV ICES ........................................ 144 Transportation and Communications ............. 144 Finance .................................... 148 T ourism .................................... 151 AGRICULTURE ................................... 152 Land U se .................................. 152 Land Tenure and Agrarian Reform .............. 153 C rops ...................................... 156 Livestock ................................... 158 Fishing and Forestry .......................... 159 viii IN DU STRY ...................................... 159 Manufacturing ................................ 160 M ining .................................... 162 Construction ................................ 163 Energy ..................................... 164 FOREIGN ECONOMIC RELATIONS
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