The Pennsylvania State University The Graduate School College of Earth and Mineral Sciences GLOBAL CONNECTIONS: PANAMA CITY AS A RELATIONAL CITY A Dissertation in Geography by Thomas J. Sigler © 2011 Thomas J. Sigler Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy May 2011 The dissertation of Thomas J. Sigler was reviewed and approved* by the following: Deryck W. Holdsworth Professor of Geography Dissertation Adviser Chair of Committee Roger M. Downs Professor of Geography Rodney A. Erickson Professor of Geography and Business Administration Alexandra Staub Associate Professor of Architecture Karl S. Zimmerer Professor of Geography Head of the Department of Geography *Signatures are on file in the Graduate School. ii ABSTRACT Global Connections: Panama City as a Relational City Since the handover of the Panama Canal in 1999, the Panama City, Panama metropolitan area has undergone a rapid physical transformation. In the central city, high-end condominium construction briskly altered the character of older waterfront neighborhoods, while on the peri-urban fringe, the rapid fabrication of mass-produced single-family housing drew the city‘s working classes ever farther outward. Driven by strong demand attributable to remarkable economic growth, the first decade of the 21st century was characterized by a construction boom unprecedented in both scope and scale. Drawing theoretical inspiration from a wide body of literature interconnecting the urbanization process with global institutions and phenomena, this dissertation analyzes Panama City‘s recent physical transformation from a morphological perspective across a variety of scales, ranging from individual parcels and buildings to the metropolitan area. Utilizing data from interviews, public archives, aerial imagery, and cadastral records, this study applies a unique, mixed-methods approach to investigate specifically how and why Panama City underwent such a rapid transformation, and how that was connected to global forces more broadly. The city features a robust service economy deriving from its connection to the Panama Canal and the adjacent Canal Zone, which was occupied by the United States until 1999. My analysis indicates that a concert of factors hinging upon the city‘s intermediary economic role were important in shaping its growth, including particularistic historical, institutional, and political elements that created the proper preconditions for the city to absorb the effects of a dynamic global economy. This indicates considerable deviation from dominant global South urbanization patterns and calls for a new paradigm that I have termed the ―relational city‖. iii TABLE OF CONTENTS List of Figures...................................................................................................................ix List of Tables..................................................................................................................xix Acknowledgements .......................................................................................................xxi Chapter I. PANAMA CITY: A BRAND NEW URBAN WORLD?...........................1 Introduction….…………………..……….......................................................1 Panama in Context…..………………………………………………………….8 Rapid Growth in Panama…………………………………………………..…11 Situating Panama City among other Cities…………………………………15 Chapters to Follow…………….…………………………………………..…..18 Chapter II. CITIES IN A GLOBAL CONTEXT………...........................................20 Introduction............................................................................................... 20 Cities in a World-System...........................................................................22 Case-Based Approaches to Understanding Global City Formation..........27 Network-Based Approaches to Understanding Global City Formation.....31 The Relational City in Context……………………………………..............38 Conclusion………………………………………………….....................4 3 iv Chapter III. METHODS........................................................................................46 Introduction...............................................................................................4 6 Outward Growth Analysis ........................................................................50 Cadastral Analysis…………….................................................................56 Interviews……………………………………………….………………….…60 Archival and Supplementary Data Sources………..……………….…62 A Note on Fieldwork…………………..…………………………………….…64 Conclusion..……………………………………………………………….…6 6 Chapter IV. PANAMA CITY IN CONTEXT...........................................................68 Introduction............................................................................................... 68 Panama‘s Geography.…..………..............................................................69 Panama‘s History………..........................................................................7 3 The Panama Canal…..……………………….………….……………….7 5 Panama‘s Economy.................................................................................80 Panama‘s Service Agglomeration............................................................90 International Banking……..............................................................92 Neoliberal Governance……...........................................................96 Colon Free Zone…….....................................................................99 Flags of Convenience……...........................................................107 Dollarized Economy…….............................................................110 v Auxiliary Services……….............................................................111 Conclusion…….…………………………………………………………………..…115 Chapter V. URBAN GROWTH IN PANAMA CITY: OUTWARD EXPANSION..120 Introduction………………………………………………….......................120 The Latin American City..........................................................................122 Patterns of Outward Growth in Panama City…………………………....127 Expansion beyond the Colonial Core.…………………………………. 128 Analysis of Outward Growth in Panama City…………………………....153 Conclusion…………………………………………………………………………....172 Chapter VI. CHANGE ALONG PANAMA CITY‘S WATERFRONT....................175 Introduction………………………………………………………………....175 Overview of Change along Panama City‘s Waterfront............................178 Casco Viejo…………………………………………………………. 180 Punta Paitilla………..…………………..………………………….…189 Avenida Balboa…………………………………………………….…196 Other High-Growth Areas……………………………………….…. 202 Cadastral Analysis of Change along Panama City‘s Waterfront …..…...205 Interpretation of Cadastral Data………………………………….…218 Analysis of Change along Panama City‘s Waterfront ............................220 vi Conclusion .............................................................................................224 Chapter VII. GROWTH FACTORS …………………………………....................227 Introduction……………………………………………… ............................227 Domestic Growth Factors .......................................................................229 Handover of the Panama Canal ..................................................229 Reversion of the Panama Canal .................................................232 Rapid Growth in the Panamanian Economy ...............................246 Exogenous Growth Factors……………………………............................251 Global Integration ........................................................................252 Regional Instability ......................................................................257 Conclusion …………………………………………....................................265 Chapter VIII. RAPID GROWTH EXPLAINED ……………………………….....267 Introduction …………………………………………...................................267 Non-State Actors in the Urbanization Process ………...........275 The Role of the State in the Urbanization Process ………...........2 77 Conclusion …………………………………………....................................284 Chapter IX. RELATIONAL CITIES IN A GLOBAL SYSTEM ……………........289 Introduction: The Relational City Revisited…..…...................................289 vii Panama City as a Relational City ………………………………...............294 Relational Cities around the World …………………………………………........303 Johannesburg …………………………………………....................303 Doha …………………………………………..................................315 Dubai………………………………………….............................................327 Miami ………………………………………….................................341 Conclusion …………………………………………....................................353 Chapter X. HYBRIDITY AND EXTRATERRITORIALITY: AN ―ISLAND‖ ON THE ISTHMUS………….…………………………………………………………356 Introduction ............................................................................................356 Relational Cities: An Emerging Model for Urbanization?............ ..........360 The Next Steps: Panama City............ ...................................................366 The Next Steps: Relational Cities in a Global Urban System................370 Bibliography ......................................................................................................37 5 viii LIST OF FIGURES Chapter I. Panama City: A Brand New Urban World? Figure 1.1: High-rise towers in Punta Pacifica……………………………..............3 Figure 1.2: Before and After photos of Edificio Montefiore in the Casco Viejo ………………………………………………………………………..…....4 Figure 1.3: Suburban residential unit in Pacora‘s Condado Real development ………………………………….………………………..............5