Humans are believed to have populated the isthmus for over 10,000 years. The early inhabitants lived along the Pacific coast, primarily in fishing settlements. Evidence suggests that agriculture and farming practices existed two thousand years B.C. For the most part however, the indigenous peoples, and their present day descendants have continued to rely on fishing as their source of sustenance. The name “Panama” means “abundance of fish.” Generally, the early peoples of Panama lived in tribal societies governed by chieftains. The first evidence of the arrival of gold and metallurgy date to the first century A.D. The craft started in Peru several centuries earlier, and spread quickly to Panama, Costa Rica and Colombia. In later centuries, Panama would play in important role in the gold trade, which would greatly influence its economic and cultural development.

The Spanish arrived in Panama in the 16^th century. Their impact on the native populations was disastrous, as they brought disease and violence to the region. Of the twelve tribes living on the isthmus, five were eliminated. The first of the Spanish arrivals was Rodrigo de Bastidas in 1501. The following year Christopher Columbus explored the eastern Panamanian coast on his fourth trip to the New World. Initial efforts to colonize were thwarted by the Indian threats and attacks. In 1510, the Spanish settlement of Nombre de Dios was established at the mouth of the Río Chagres on the Caribbean coast, near what is now Portobello. The more permanent establishment of the town came in 1519, and it endured as the main Caribbean port for nearly 100 years.

In 1513, Vasco Nunez de Balboa crossed the isthmus and became the first European to sight the Pacific Ocean. He was travelling to Peru on rumors of gold that local Indians had told him about. Upon arrival he claimed the entire region for the King of Spain.

In 1519 Pedro Arias De Avila, known to be a cruel and murderous man, founded Panama City, which served as the country’s Pacific side port. The founding of the city would later be strategically important as a commercial center on the Pacific and as a point from which to launch expeditions to Costa Rica and to Peru. Mercantile goods traversed the isthmus from Panama to Venta de Cruces, and from there to Nobre de Dios. The connection between these two port cities remained intact until the late 16^th century when British pirate Sir Francis Drake sacked Nobre de Dios. After that time, the Caribbean port was moved to Portobello. The chief connection between the ports of the Pacific and Caribbean was the King’s Highway (El Camino Real), which was essentially a footpath. It served its purpose well for many centuries until the French established a rail line in 1904.

Panama's early importance was derived from its role as a transport hub between Spain and its colonies in the New World. Panama was, as a result, one of Spain's wealthiest colonial centers during the ^17th century.

A Scottish attempt to establish a rival colony in the area (the Darien Scheme, 1698-99) was a disastrous failure. Panama declared its independence from Spain in 1821 and joined Simon Bolivar’s Gran Colombia.

Panama's Pacific coast later became the springboard for invasions of Peru and the wealth generated by these incursions was carried overland from the Pacific port of Panama City to Nombre de Dios. The transport of wealth attracted pirates and, by the ^18th century, the Caribbean was so dangerous that Spanish ships began bypassing Panama and sailing directly from Peru around Cape Horn to reach Europe.

Panama went into decline, and became a province of Colombia when the South American nation received its independence from Spain in 1821. In 1846, Colombia signed a treaty permitting the USA to construct a railway across the isthmus and to defend it with military force. The idea of a canal across the isthmus had existed for many centuries, but was always considered to be impossible. However, the French made the first attempt to build one in 1880. Their effort resulted in 22,000 deaths from malaria and yellow fever. All investors went bankrupt.

A Frenchman, who was positioned to profit handsomely from a US buyout of French canal rights, was named `envoy extraordinary' by Washington. He negotiated and signed a canal treaty with the USA, over objections by the Colombian government. The financial and strategic interests of the US momentarily coincided with the sentiments of Panama's revolutionaries, and a revolutionary junta declared Panama independent on 3 November 1903, with the overt support of the USA.

The canal treaty granted the USA rights in perpetuity over land on both sides of the canal and a broad right of intervention in Panamanian affairs. The treaty led to friction between the two countries for decades. This was owing in part to the fact that it clearly favored the USA at the expense of Panama, and because Colombia refused to acknowledge Panama's independence until 1921, when the USA paid Colombia US$25 million in compensation.

The USA began canal construction in 1904 and 10 years later the first ship traversed the waterway. The US intervened in Panama's affairs repeatedly until 1936, when it relinquished its right to use troops outside the Canal Zone. The two countries continued to argue over the canal contract until a new treaty was signed in 1977. The revised agreement guaranteed the gradual withdrawal of US interests and complete reversion to Panama by 1999. The transition occurred peacefully and without incident.

General Manuel Noriega took control of the country in 1984. A former head of Panama's secret police and a CIA operative, Noriega became was controversial government figure. Many allegations of illegal activity have been launched against him. After a number of violent incidents, Noriega appointed himself head of government on 15 December 1989 and announced that Panama was at war with the USA.

The US responded with military force to oust the controversial leader. Noriega escaped capture by US troops for six days by claiming asylum in the Vatican embassy. US forces surrounded the embassy and pressured the Vatican to release him. Noriega was sent to the US, where he was convicted on money laundering charges; he is currently serving a 40-year prison sentence in Florida. Since that time, the economy of Panama has experienced a boom the likes of which had never been experienced previously. The new atmosphere of democracy and freedom has allowed explosion in every sector, but is most evidenced by the impressive skyline of tall buildings and banks.

The legitimate winner of the 1989 presidential election, Guillermo Endara, was sworn in as president. In the 1994 elections, Ernesto Pérez Balladares was swept into office. Under his direction, the Panamanian government is implementing a program of privatization and is focusing spending on infrastructure improvements, health care and education. In 1999, Panama elected its first woman President, Mireya Moscoso.

You may direct inquiries by electronic mail to: info