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History and Government
History: Under Spanish rule from 1501, Panama was a pivotal trade route and collection point for Spanish plunder from the New World. This abundance of transient wealth also attracted many foreign pirates and buccaneers such as Henry Morgan and Sir Francis Drake. The region achieved independence as part of Gran Colombia on November 28, 1821. Panama attempted to secede from Gran Colombia four times between 1849-1855, during which time a treaty was made with the USA to build the Panama Railroad. On November 3, 1903, Panama, with US backing, seceded from Colombia and was recognised by the rest of the world as the Republic of Panama (although not by Colombia which withheld recognition until 1921 when the USA agreed to pay compensation of US$25 million).
Construction of the Panama Canal began in the same year and the Panama Canal Zone became an American Protectorate. The Panama Canal was completed on August 15, 1914 and is considered the Eighth Wonder of the World. Significant changes were made in the Constitution of Panama in 1904, 1941, 1946 and again in 1972. A military coup led by General (later Brigadier-General) Omar Torrijos Herrera took place in 1968, and he effectively maintained power (despite surrendering the presidency) until his death in 1981. Several modifications were made to the Constitution in 1983 and from 1984 to 1989 the country was effectively run by the armed forces chief, General Manuel Noriega.
The General's policies, especially regarding future control of the Panama Canal, and his personal activities, including alleged involvement in drug trafficking, produced very strained relations with the country's key ally, the USA. US development aid and military assistance were cut, but with little effect. US intervention became more likely after the presidential election of May 1989. This was a straight fight between the pro-government Coalicion de Liberacion Nacional (COLINA) and the principal opposition movement, the Alianza Democratica de Oposicion Civilista (ADOC). The ADOC candidate, Guillermo Endara Galimany, won with 62% of the vote. However, the election was almost immediately annulled. After an attempted coup in October 1989, believed to have had US backing, was quickly crushed by Noriega's forces, the only means of getting rid of the troublesome dictator was military intervention.
In December 1989, US President Bush authorised an invasion of the country. After a few days of fierce fighting, US forces secured control of the country and the capture of Noriega (who had taken refuge with the Papal Nuncio). As Noriega was flown to the USA -where in April 1992 he was tried, convicted and sentenced to 40 years imprisonment -Guillermo Endara was installed at the head of a new administration drawn from the ADOC coalition which had won the May 1989 election. After a low start caused by chronic lack of finance, the Endara government gradually started to put the country back on its feet. Early discontent was reflected in a number of coup attempts during 1991 and 1992, although all were easily put down.
Endara's term ended in 1994. At the presidential election held that May, the victor was Ernesto Perez Balladares, backed by a three-party centre-left coalition under the banner of Pueblo Unido. Five years later, Panamanians reverted to the conservative bloc now led by Mireya Elisa Rodriguez, who won the presidential race, and which took control of the national assembly where a four-party coalition is in government. Rodriguez presided over the defining event in recent Panamanian politics: the return of the Panama Canal Zone to Panama under the terms of the agreement negotiated by the Panamanians and the US Carter administration in 1980. (The prospect of Noriega enjoying unrestricted control of the canal had been an important reason behind the US invasion). Despite obvious American irritation at the unusual phenomenon of ceding territory to a foreign government, the Americans pulled out on schedule in a low-key ceremony in December 1999.
Government: Both the unicameral 72-member legislature (Asamblea Legislativa) and the executive President are elected for five years. The President appoints a cabinet of ministers.
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