From Annex to Autonomy: A Centennial Exploration of Panama’s National Development Path

With its strategic position and convenience for trade and commerce, Panama connects two oceans by a Canal and links the Americas via the isthmus. The construction of Panama Canal led to the independence of Panama. In the early days, with its territory divided into two parts and its politics and economy totally dependent on the United States, Panama was more like an annex of the Canal Zone which was under the jurisdiction of the United States. Throughout the twentieth century, in addition to the strenuous efforts for the sovereignty over the Canal Zone, Panama has also been exploring its own model of development. A long-term plan, rooted back to the Torrijos era in the 1970s and implemented after the return of the Canal, is the main line of Panama's development. Based on its own characteristics, Panama focuses on the service sector and gradually forms its four pillars on Canal, duty-free zone, finance and tourism. In the new century, the vision of “Hub of the Americas” was proposed to integrate all Canal, maritime and logistics-related industries and make Panama the “Singapore of the America”. While these achievements have been widely recognized by the international community, Panama still faces challenges such as the enormous gap between the rich and the poor. Whether these challenges can be overcome will determine the prospects of Panama.