Panama

§1. Panama Introduction

Background:
  With US backing, Panama seceded from Colombia in 1903 and promptly signed a
  treaty with the US allowing for the construction of a canal and US
  sovereignty over a strip of land on either side of the structure (the
  Panama Canal Zone). The Panama Canal was built by the US Army Corps of
  Engineers between 1904 and 1914. On 7 September 1977, an agreement was
  signed for the complete transfer of the Canal from the US to Panama by the
  end of 1999. Certain portions of the Zone and increasing responsibility
  over the Canal were turned over in the intervening years. With US help,
  dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the
  area supporting the Canal, and remaining US military bases were turned over
  to Panama by or on 31 December 1999.

§2. Panama Geography

Location:
  Central America, bordering both the Caribbean Sea and the North Pacific
  Ocean, between Colombia and Costa Rica

Geographic coordinates:
  9 00 N, 80 00 W

Map references:
  Central_America_and_the_Caribbean

Area:
  total: 78,200 km²
  land: 75,990 km²
  water: 2,210 km²

Area - comparative:
  slightly smaller than South Carolina

Land boundaries:
  total: 555 km
  border countries: Colombia 225 km, Costa Rica 330 km

Coastline:
  2,490 km

Maritime claims:
  territorial sea: 12 nm
  contiguous zone: 24 nm
  exclusive economic zone: 200 nm

Climate:
  tropical maritime; hot, humid, cloudy; prolonged rainy season (May to
  January), short dry season (January to May)

Terrain:
  interior mostly steep, rugged mountains and dissected, upland plains;
  coastal areas largely plains and rolling hills

Elevation extremes:
  lowest point: Pacific Ocean 0 m
  highest point: Volcan de Chiriqui 3,475 m

Natural resources:
  copper, mahogany forests, shrimp, hydropower

Land use:
  arable land: 7.26%
  permanent crops: 1.95%
  other: 90.79% (2005)

Irrigated land:
  320 km² (1998 est.)

Natural hazards:
  occasional severe storms and forest fires in the Darien area

Environment - current issues:
  water pollution from agricultural runoff threatens fishery resources;
  deforestation of tropical rain forest; land degradation and soil erosion
  threatens siltation of Panama Canal; air pollution in urban areas; mining
  threatens natural resources

Environment - international agreements:
  party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol,
    Desertification, Endangered Species, Hazardous Wastes, Law of the Sea,
    Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber
    83, Tropical Timber 94, Wetlands, Whaling
  signed, but not ratified: Marine Life Conservation

Geography - note:
  strategic location on eastern end of isthmus forming land bridge connecting
  North and South America; controls Panama Canal that links North Atlantic
  Ocean via Caribbean Sea with North Pacific Ocean

§3. Panama People

Population:
  3,191,319 (July 2006 est.)

Age structure:
  0-14 years: 30.3% (male 492,403/female 472,996)
  15-64 years: 63.4% (male 1,025,898/female 998,926)
  65 years and over: 6.3% (male 94,122/female 106,974) (2006 est.)

Median age:
  total: 26.1 years
  male: 25.8 years
  female: 26.5 years (2006 est.)

Population growth rate:
  1.6% (2006 est.)

Birth rate:
  21.74 births/1,000 population (2006 est.)

Death rate:
  5.36 deaths/1,000 population (2006 est.)

Net migration rate:
  -0.4 migrant(s)/1,000 population (2006 est.)

Sex ratio:
  at birth: 1.05 male(s)/female
  under 15 years: 1.04 male(s)/female
  15-64 years: 1.03 male(s)/female
  65 years and over: 0.88 male(s)/female
  total population: 1.02 male(s)/female (2006 est.)

Infant mortality rate:
  total: 16.37 deaths/1,000 live births
  male: 17.75 deaths/1,000 live births
  female: 14.92 deaths/1,000 live births (2006 est.)

Life expectancy at birth:
  total population: 75.22 years
  male: 72.68 years
  female: 77.87 years (2006 est.)

Total fertility rate:
  2.68 children born/woman (2006 est.)

HIV/AIDS - adult prevalence rate:
  0.9% (2003 est.)

HIV/AIDS - people living with HIV/AIDS:
  16,000 (2003 est.)

HIV/AIDS - deaths:
  less than 500 (2003 est.)

Nationality:
  noun: Panamanian(s)
  adjective: Panamanian

Ethnic groups:
  mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West
  Indian) 14%, white 10%, Amerindian 6%

Religions:
  Roman Catholic 85%, Protestant 15%

Languages:
  Spanish (official), English 14%; note - many Panamanians bilingual

Literacy:
  definition: age 15 and over can read and write
  total population: 92.6%
  male: 93.2%
  female: 91.9% (2003 est.)

§4. Panama Government

Country name:
  conventional long form: Republic of Panama
  conventional short form: Panama
  local long form: Republica de Panama
  local short form: Panama

Government type:
  constitutional democracy

Capital:
  Panama

Administrative divisions:
  9 provinces (provincias, singular - provincia) and 1 territory* (comarca);
  Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos,
  Panama, San Blas*(Kuna Yala), and Veraguas

Independence:
  3 November 1903 (from Colombia; became independent from Spain 28 November
  1821)

National holiday:
  Independence Day, 3 November (1903)

Constitution:
  11 October 1972; major reforms adopted 1978, 1983, 1994, and 2004

Legal system:
  based on civil law system; judicial review of legislative acts in the
  Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with
  reservations

Suffrage:
  18 years of age; universal and compulsory

Executive branch:
  chief of state: President Martin TORRIJOS Espino (since 1 September 2004);
    First Vice President Samuel LEWIS Navarro (since 1 September 2004);
    Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004);
    note - the president is both the chief of state and head of government
  head of government: President Martin TORRIJOS Espino (since 1 September
    2004); First Vice President Samuel LEWIS Navarro (since 1 September
    2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September
    2004); note - the president is both the chief of state and head of
    government
  cabinet: Cabinet appointed by the president
  elections: president and vice presidents elected on the same ticket by
    popular vote for five-year terms; election last held 2 May 2004 (next to
    be held 3 May 2009); note - beginning in 2009, Panama will have only one
    vice president.
  election results: Martin TORRIJOS Espino elected president; percent of vote
    - Martin TORRIJOS Espino 47.5%, Guillermo ENDARA Galimany 30.6%, Jose
    Miguel ALEMAN 17%, Ricardo MARTINELLI 4.9%
  note: government coalition - PRD (Democratic Revolutionary Party), PP
    (Popular Party)

Legislative branch:
  unicameral National Assembly (formerly called Legislative Assembly) or
  Asamblea Nacional (78 seats; members are elected by popular vote to serve
  five-year terms); note - in 2009, the number of seats will change to 71
  elections: last held 2 May 2004 (next to be held 3 May 2009)
  election results: percent of vote by party - NA%; seats by party - PRD 40,
    PA 17, PS 8, MOLIRENA 3, CD 2, PP 2, PLN 1, other 5
  note: legislators from outlying rural districts are chosen on a plurality
    basis while districts located in more populous towns and cities elect
    multiple legislators by means of a proportion-based formula

Judicial branch:
  Supreme Court of Justice or Corte Suprema de Justicia (nine judges
  appointed for 10-year terms); five superior courts; three courts of appeal

Political parties and leaders:
  Democratic Change or CD [Ricardo MARTINELLI]; Democratic Revolutionary
  Party or PRD [Hugo GUIRAUD]; National Liberal Party or PLN [Anibal
  GALINDO]; Nationalist Republican Liberal Movement or MOLIRENA [Jesus
  ROSAS]; Panamenista Party or PA (formerly the Arnulfista Party) [Marco
  AMEGLIO]; Popular Party or PP (formerly Christian Democratic Party or PDC)
  [Ricardo ARIAS Calderon]; Solidarity Party or PS [Jose Raul MULINO]

Political pressure groups and leaders:
  Chamber of Commerce; National Civic Crusade; National Council of Organized
  Workers or CONATO; National Council of Private Enterprise or CONEP;
  National Union of Construction and Similar Workers (SUNTRACS); Panamanian
  Association of Business Executives or APEDE; Panamanian Industrialists
  Society or SIP; Workers Confederation of the Republic of Panama or CTRP

International organization participation:
  FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IFAD, IFC,
  IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, LAES, LAIA
  (observer), MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO,
  UNIDO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO

Diplomatic representation in the US:
  chief of mission: Ambassador Federico HUMBERT Arias
  chancery: 2862 McGill Terrace NW, Washington, DC 20008
  telephone: [1] (202) 483-1407
  FAX: [1] (202) 483-8416
  consulate(s) general: Atlanta, Houston, Miami, New Orleans, New York,
    Philadelphia, San Francisco, San Juan (Puerto Rico), Tampa

Diplomatic representation from the US:
  chief of mission: Ambassador William A. EATON
  embassy: Avenida Balboa and Calle 37, Apartado Postal 0816-02561, Zona 5,
    Panama City 5
  mailing address: American Embassy Panama, Unit 0945, APO AA 34002
  telephone: [507] 207-7000
  FAX: [507] 227-1964

Flag description:
  divided into four, equal rectangles; the top quadrants are white (hoist
  side) with a blue five-pointed star in the center and plain red; the bottom
  quadrants are plain blue (hoist side) and white with a red five-pointed
  star in the center

§5. Panama Economy

Economy - overview:
  Panama's dollarised economy rests primarily on a well-developed services
  sector that accounts for three-fourths of GDP. Services include operating
  the Panama Canal, banking, the Colon Free Zone, insurance, container ports,
  flagship registry, and tourism. A slump in the Colon Free Zone and
  agricultural exports, the global slowdown, and the withdrawal of US
  military forces held back economic growth in 2000-03; growth picked up in
  2004 and 2005 led by export-oriented services and a construction boom
  stimulated by tax incentives. The government has implemented tax reforms,
  as well as social security reforms, and backs regional trade agreements and
  development of tourism. Unemployment remains high.

GDP (purchasing power parity):
  $22.33 billion (2005 est.)

GDP (official exchange rate):
  $15.11 billion (2005 est.)

GDP - real growth rate:
  4.9% (2005 est.)

GDP - per capita (PPP):
  $7,100 (2005 est.)

GDP - composition by sector:
  agriculture: 7.6%
  industry: 17.9%
  services: 74.5% (2005 est.)

Labor force:
  1.39 million
  note: shortage of skilled labor, but an oversupply of unskilled labor (2005
    est.)

Labor force - by occupation:
  agriculture 20.8%, industry 18%, services 61.2% (1995 est.)

Unemployment rate:
  8.7% (2005 est.)

Population below poverty line:
  37% (1999 est.)

Household income or consumption by percentage share:
  lowest 10%: 1.2%
  highest 10%: 35.7% (1997)

Distribution of family income - Gini index:
  56.4 (2000)

Inflation rate (consumer prices):
  2.5% (2005 est.)

Investment (gross fixed):
  17.8% of GDP (2005 est.)

Budget:
  revenues: $3.426 billion
  expenditures: $3.959 billion; including capital expenditures of $471
    million (2005 est.)

Public debt:
  73.2% of GDP (2005 est.)

Agriculture - products:
  bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

Industries:
  construction, brewing, cement and other construction materials, sugar
  milling

Industrial production growth rate:
  3.5% (2005 est.)

Electricity - production:
  5.398 billion kWh (2003)

Electricity - consumption:
  4.87 billion kWh (2003)

Electricity - exports:
  175 million kWh (2003)

Electricity - imports:
  25 million kWh (2003)

Oil - production:
  0 bbl/day (2004 est.)

Oil - consumption:
  78,000 bbl/day (2003 est.)

Oil - exports:
  NA bbl/day

Oil - imports:
  NA bbl/day; note - imports oil

Natural gas - production:
  0 m³ (2003 est.)

Natural gas - consumption:
  0 m³ (2003 est.)

Current account balance:
  $-559 million (2005 est.)

Exports:
  $7.481 billion f.o.b.; note - includes the Colon Free Zone (2005 est.)

Exports - commodities:
  bananas, shrimp, sugar, coffee, clothing

Exports - partners:
  US 50.5%, Sweden 6.6%, Spain 5.1%, Netherlands 4.4%, Costa Rica 4.2% (2004)

Imports:
  $8.734 billion f.o.b. (includes the Colon Free Zone) (2005 est.)

Imports - commodities:
  capital goods, foodstuffs, consumer goods, chemicals

Imports - partners:
  US 33.3%, Netherlands Antilles 8.1%, Japan 6%, Costa Rica 5.7%, Mexico
  4.6%, Colombia 4.2% (2004)

Reserves of foreign exchange and gold:
  $981 million (2005 est.)

Debt - external:
  $9.859 billion (2005 est.)

Economic aid - recipient:
  $197.1 million (1995)

Currency (code):
  balboa (PAB); US dollar (USD)

Exchange rates:
  balboas per US dollar - 1 (2005), 1 (2004), 1 (2003), 1 (2002), 1 (2001)

Fiscal year:
  calendar year

§6. Panama Communications

Telephones - main lines in use:
  376,100 (2004)

Telephones - mobile cellular:
  855,900 (2004)

Telephone system:
  general assessment: domestic and international facilities well developed
  domestic: NA
  international: country code - 507; 1 coaxial submarine cable; satellite
    earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central
    American Microwave System

Radio broadcast stations:
  AM 101, FM 134, shortwave 0 (1998)

Television broadcast stations:
  38 (including repeaters) (1998)

Internet country code:
  .pa

Internet hosts:
  7,013 (2005)

Internet users:
  300,000 (2005)

§7. Panama Transportation

Airports:
  109 (2005)

Airports - with paved runways:
  total: 47
  over 3,047 m: 1
  2,438 to 3,047 m: 1
  1,524 to 2,437 m: 5
  914 to 1,523 m: 17
  under 914 m: 23 (2005)

Airports - with unpaved runways:
  total: 62
  914 to 1,523 m: 10
  under 914 m: 52 (2005)

Railways:
  total: 355 km
  standard gauge: 76 km 1.435-m gauge
  narrow gauge: 279 km 0.914-m gauge (2004)

Roadways:
  total: 11,643 km
  paved: 4,028 km
  unpaved: 7,615 km (2000)

Waterways:
  800 km (includes 82 km Panama Canal) (2005)

Merchant marine:
  total: 5,254 ships (1000 GRT or over) 137,914,883 GRT/206,848,688 DWT
  by type: barge carrier 27, bulk carrier 1,651, cargo 951, chemical tanker
    452, combination ore/oil 11, container 625, liquefied gas 188, livestock
    carrier 6, passenger 46, passenger/cargo 77, petroleum tanker 516,
    refrigerated cargo 307, roll on/roll off 109, specialized tanker 21,
    vehicle carrier 267
  foreign-owned: 4,688 (Argentina 9, Australia 4, The Bahamas 1, Bangladesh
    1, Belgium 13, Bermuda 2, Brazil 2, Canada 3, Chile 11, China 370,
    Colombia 6, Croatia 4, Cuba 8, Cyprus 8, Denmark 28, Egypt 17, Estonia 3,
    France 8, Germany 29, Greece 536, Hong Kong 168, India 16, Indonesia 50,
    Iran 4, Ireland 2, Isle of Man 2, Israel 3, Italy 16, Japan 1,921, Jordan
    12, South Korea 285, Kuwait 2, Latvia 4, Lebanon 1, Lithuania 6, Malaysia
    13, Maldives 2, Malta 2, Marshall Islands 1, Mexico 5, Monaco 9,
    Netherlands 26, NZ 1, Nigeria 6, Norway 57, Pakistan 2, Peru 14,
    Philippines 17, Poland 19, Portugal 12, Romania 9, Russia 6, Saudi Arabia
    4, Singapore 57, South Africa 3, Spain 48, Sri Lanka 6, Sudan 1,
    Swaziland 1, Sweden 5, Switzerland 206, Syria 9, Taiwan 302, Thailand 10,
    Trinidad and Tobago 1, Tunisia 1, Turkey 31, Ukraine 7, UAE 89, UK 36, US
    97, Venezuela 14, Vietnam 2, Yemen 1, unknown 1) (2005)

Ports and terminals:
  Balboa, Colon, Cristobal

§8. Panama Military

Military branches:
  an amendment to the Constitution abolished the armed forces, but there are
  security forces (Panamanian Public Forces or PPF includes the Panamanian
  National Police, National Maritime Service, and National Air Service)

Manpower available for military service:
  males age 18-49: 733,031 (2005 est.)

Manpower fit for military service:
  males age 18-49: 591,604 (2005 est.)

Military expenditures - dollar figure:
  $150 million (2005 est.)

Military expenditures - percent of GDP:
  1% (2005 est.)

Military - note:
  on 10 February 1990, the government of then President ENDARA abolished
  Panama's military and reformed the security apparatus by creating the
  Panamanian Public Forces; in October 1994, Panama's Legislative Assembly
  approved a constitutional amendment prohibiting the creation of a standing
  military force, but allowing the temporary establishment of special police
  units to counter acts of "external aggression"

§9. Panama Transnational Issues

Disputes - international:
  organized illegal narcotics operations in Colombia operate within the
  border region with Panama

Illicit drugs:
  major cocaine transshipment point and primary money-laundering center for
  narcotics revenue; money-laundering activity is especially heavy in the
  Colon Free Zone; offshore financial center; negligible signs of coca
  cultivation; monitoring of financial transactions is improving; official
  corruption remains a major problem


<Factbook 2006>
