Modern Panama
Noriega & the US Invasion (1989)
General Manuel Noriega, once a CIA ally and useful henchman for the USA during the Cold War, established himself as a dictator in the 1980s and became deeply entangled in the drug trade between Colombia and the USA. On December 20, 1989, US troops invaded Panama ("Operation Just Cause") — the largest US military operation since Vietnam. Noriega was captured and convicted in the USA. The invasion cost an estimated 200–3,000 Panamanian civilians their lives — a wound that still pains Panama today.
Boom Country of the 21st Century
Since the canal handover, Panama has developed dramatically and is now one of the most dynamic economies in Latin America:
- Economic Miracle: Panama's GDP grew by 5–8% annually since 2000 — the highest growth in the region. The canal, the banking sector, the Colón Free Trade Zone (the second largest in the world), and growing tourism drive the economy.
- Canal Expansion (2016): The new Neopanamax locks (construction cost: 5.25 billion dollars) doubled the canal's capacity. Now ships carrying up to 14,000 containers can pass through — three times more than before.
- Skyline: Panama City's skyline is growing faster than any other in the Americas. Over 300 skyscrapers change the cityscape annually.
- Panama Papers (2016): The revelation of Panama as a tax haven through the "Panama Papers" (Mossack Fonseca) damaged the international image but also led to reforms in the financial sector.
- Darién Crisis: Since 2021, hundreds of thousands of migrants cross the dangerous Darién jungle annually on their way to the USA — a humanitarian crisis that poses enormous challenges to Panama's resources and politics.
Today, Panama is one of the most stable and prosperous countries in Latin America — a melting pot of indigenous cultures, Spanish heritage, Afro-Caribbean zest for life, and American influence. Inequality remains the biggest issue: While Panama City shines, parts of the population in the indigenous Comarcas and rural areas live in poverty.
