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Written by Matt Landau   
Saturday, January 14 2006

Early on in history, Panama was densely populated by indigenous people—among them, the Cuevas and Cocole tribes. In 1501, Spaniard Rodrigo de Bastidas was the first to spot Panama, and with the help of Christopher Columbus, they dropped anchor off the Caribbean coast in Portobelo in 1502. In 1510, Vasco Nunez de Balboa established the first successful colony and became governor of the region. With this arrival of the Spaniards came violence and disease which almost completely eradicated Panama's indigenous population.

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In 1513, Balboa made the discovery of the Pacific Ocean, thus showing to all, the value of Panama's narrow geographical shape. The proximity of oceans and the narrowness of the isthmus soon became utilized to transfer the wealth of the Inca Empire back to Spain.

The wealth uncovered by the Spaniards soon attracted pirates like Sir Francis Drake and Sir Henry Morgan—and in the 1700s, Panama's Caribbean coast was plagued by pirate strongholds, forcing shippers to instead sail around Cape Horn to the already-thriving Peru. In 1821, with the decline of the Spanish Empire, Panama became part of an independent Columbia. Panama's flame as a crossroad of the world was re-lit when U.S. settlers in search of gold in California passed through Panama. It was at this point that the idea of a canal became principal. It eventually led to a revolution from Columbia and the establishment of Panama as a separate republic.

The History of the Panama Canal

The new Panama state, proclaimed in 1903 was under control of the USA. This control would become a determining factor in Panama's development as a republic. US forces made their presence known in three main landings in 1908, 1912, and 1918.

France took the first shot at building the canal but failed miserably, over 5 years losing thousands and thousands of men to yellow fever and malaria, and nearly breaking their country back in Europe. When Panama declared its independence in 1903, the USA was eager and ready to take on the task. At an amazingly low price of $40 million, the USA purchased the rights to the canal and continued work on the canal until completion.

In return for the canal, Panama granted the USA many control rights. Then US President Theodore Roosevelt began his “Panama Doctrine” which as a first priority, eradicated mosquitoes which carried yellow fever and malaria. With the onset of World War II, the canal became one of America's most valuable assets. In early 1974, Panama and the USA agreed to the end of US jurisdiction over the canal and canal zone.

The Noriega Years

In 1983, General Manuel Noriega became head of the Panama Defense Forces. Throughout his first years, Noriega manipulated elections, ruling Panama through puppet president figures. In 1987, a former Panamanian Defense Force officer publicly accused Noriega of ordering the murder of a prominent opponent and drug smuggling with Columbian drug producers. As a result, the USA imposed stern sanctions and protests against Noriega in Panama City. In December of 1989 it was declared that Noriega's Panama and the USA were in a state of war, and after the death of a U.S. marine, the USA attacked Panama City with extreme military force, thus removing Noriega from power. Today, you can see remnants from Noriega's regime as well as its aftermath, such as the bombed out General's Club—a one time posh night club for members of Noriega's team.

Noriega surrendered on Jan. 3, 1990 and was tried, convicted and jailed on charges of drug trafficking. He spends his days in a Miami jail. In 1994, Ernesto Perez Balladares began a swift economic reform plan set to fight corruption and drug trafficking. Today, after its 15-year re-emergence, Panama is one of the best kept secrets in all of the continent.

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