Panama Historical Setting
Cuna Indian mola design of a Panamanian coin
featuring Spanish explorer Vasco Núñez de Balboa
THE HISTORY OF the Panamanian isthmus, since Spaniards first
landed on its shores in 1501, is a tale of treasure, treasure
seekers, and peoples exploited; of clashes among empires, nations,
and cultures; of adventurers and builders; of magnificent dreams
fulfilled and simple needs unmet. In the wake of Vasco Nuñez de
Balboa's torturous trek from the Atlantic to the Pacific in 1513,
conquistadors seeking gold in Peru and beyond crossed the seas and
recrossed with their treasures bound for Spain. The indigenous
peoples who survived the diseases, massacres, and enslavement of
the conquest ultimately fled into the forest or across to the San
Blas Islands. Indian slaves were soon replaced by Africans.
A century before the English settled Massachusetts Bay, Panama
was the crossroads and marketplace of the great Spanish Empire, the
third richest colony of the New World. In the seventeenth century,
however, the thriving colony fell prey to buccaneers of the growing
English Empire, and Panama entered a period of decline and neglect
that lasted until gold was discovered in California.
The geopolitical significance of Panama has been recognized
since the early 1500s, when the Spanish monarchs considered digging
a canal across the isthmus. United States interest, intensified in
the 1850s by the California gold rush, resulted in the construction
of a trans-isthmian railroad. In 1879 a French company under the
direction of Ferdinand de Lesseps, builder of the Suez Canal, began
constructing a canal in Panama. The project fell victim to disease,
faulty design, and ultimately bankruptcy and was abandoned in 1889.
By the turn of the twentieth century, the United States had
become convinced that a canal should be built to link the two
oceans. In addition to the geographic advantages of the isthmus,
President Theodore Roosevelt was attracted by the separatist
tendencies of Panama, then a department of Colombia. When Panama
rebelled against Colombia in 1903, Roosevelt deployed United States
naval vessels to discourage the Colombian forces and proudly
claimed the role of midwife at the birth of the Republic of Panama.
Since its completion in 1914, the Panama Canal has been
Panama's economic base, and the United States presence has been the
republic's major source of frustration. The provisions of the
treaty concluded in 1903 between John Hay and Philippe BunauVarilla (the Hay-Bunau-Varilla Treaty) granted the Canal Zone "in
perpetuity" to the United States and made Panama a virtual
protectorate of the United States. Relations with the United States
in general, and the status of the Canal Zone in particular, long
remained the overriding concerns of the formulators of Panama's
foreign policy and strongly influenced domestic politics and
international relations.
Despite the negotiation of treaty amendments in 1936 and 1955,
limiting the freedom of the United States to intervene in Panama's
internal affairs, various problems between the two countries
continued to generate resentment among Panamanians. Aside from the
larger issue of jurisdiction over the zone--which split the country
into two parts--Panamanians complained that they did not receive
their fair share of the receipts from the canal, that commissaries
in the zone had damaged their commercial interests, that Panamanian
workers in the zone were discriminated against in economic and
social matters, and that the large-scale presence of the United
States military in the zone and in bases outside the zone cast a
long shadow over national sovereignty.
After serious rioting in 1964 that indicated the intensity of
nationalistic aspirations concerning the status of the canal, the
United States agreed to enter into negotiations for a new treaty.
Meanwhile, studies relating to the construction of a new canal were
undertaken. In 1971 after a four-year interlude, negotiations were
renewed. In 1977 two new treaties were signed, one providing for
Panamanian assumption of control over the canal in the year 2000
and the other providing for a permanent joint guarantee of the
canal's neutrality.
The focal point of consensus in Panamanian political life,
cutting across both social and partisan divides, has been
nationalism. Nationalistic sentiments, directed primarily against
the highly visible and dominant presence of the United States, have
been catered to in varying degrees by all who have held positions
of leadership or have sought popular support. Public demonstrations
and riots, as occurred in 1927, 1947, 1959, and 1964, have been
effective in influencing policy, especially in relation to the
country's stance vis-à-vis the United States. National leaders have
alternately responded to and contributed to an explosive climate of
public opinion. They have carefully kept popular resentment
narrowly focused on the United States presence lest discontent turn
on the Panamanian elite, generally referred to as the oligarchy.
Until the National Guard seized control in 1968, power had been
wielded almost exclusively by a small number of aristocratic
families. The middle class was constrained from challenging the
system because most of its members depended on government jobs.
Also, the slow pace of industrialization had limited the political
role of urban labor. The lower classes lacked organization and
leadership. They had been distracted from recognizing common
problems by the ethnic antagonisms between those of Spanish or
mestizo background and the more recent immigrants, Antillean blacks
from Jamaica and other parts of the West Indies.
Brigadier General Omar Torrijos Herrera, who in 1969 as
commander of the National Guard assumed the role of head of
government, had some initial success in building a popular base for
his government among small farmers and urban workers. His domestic
program emphasized public works--especially the construction of
roads, bridges, schools, and low-cost public housing--and an
agrarian reform program. In addition, he encouraged the entry of
foreign banks and firms as part of his effort to create jobs and
increase incomes.
In negotiating new Panama Canal treaties, Torrijos, like other
leaders before him, walked the tightrope of taking a strong stand
on the issue to maintain popular support, while keeping popular
frustrations within controllable limits and without appearing so
militant as to alarm the United States. Successful in this
endeavor, by the time the new treaties were signed in 1977,
Torrijos had held power longer than any other leader in Panama's
history.
Nevertheless, by the late 1970s, clear signs appeared to show
that Torrijos's populist alliance was eroding. Observers attributed
the decline in support to a variety of factors, including severe
economic problems that led to backtracking on social programs,
opposition among Panamanians to the 1977 Panama Canal treaties, and
the very "democratization" process that Torrijos initiated to gain
United States support for the canal treaties.
In October 1978, the 1972 Constitution had been reformed to
allow the legalization of political parties, and exiled political
leaders were permitted to return to Panama. Torrijos formally
stepped down as head of government, and a civilian president was
elected. Torrijos, however, clearly remained the dominant force in
the political system. Torrijos's shocking, sudden death in an
airplane crash in July 1981 created a power vacuum in Panama. The
newly erected democratic facade persisted, however, with a
succession of civilian presidents controlled by the National Guard
and its emergent leader, General Manuel Antonio Noriega Moreno, who
(as of late 1987) had been in command since August 1983. Noriega
successfully transformed the National Guard into the far larger
Panama Defense Forces (Fuerzas de Defensa de Panamá--FDP), a
formidable power base for his increasing political control.
Data as of December 1987
|