Services include operating the Panama Canal, logistics, banking, the Colon Free Trade Zone, insurance, container ports, flagship registry, and tourism and Panama is a center for offshore banking. Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Inadequate access to sanitation contributes to a high incidence of diarrhea in Panama's children, which is one of the main causes of Panama's elevated chronic malnutrition rate, especially among indigenous communities.Ĭhief of state: President Laurentino "Nito" CORTIZO Cohen (since 1 July 2019) Vice President Jose Gabriel CARRIZO Jaen (since 1 July 2019) note - the president is both chief of state and head of government head of government: President Laurentino "Nito" CORTIZO Cohen (since 1 July 2019) Vice President Jose Gabriel CARRIZO Jaen (since 1 July 2019) cabinet: Cabinet appointed by the president elections/appointments: president and vice president directly elected on the same ballot by simple majority popular vote for a 5-year term president eligible for a single non-consecutive term) election last held on (next to be held in 2024) election results: 2019: Laurentino "Nito" CORTIZO Cohen elected president percent of vote - Laurentino CORTIZO Cohen (PRD) 33.3%, Romulo ROUX (CD) 31%, Ricardo LOMBANA (independent) 18.8%, Jose BLANDON (Panamenista Party) 10.8%, Ana Matilde GOMEZ Ruiloba (independent) 4.8%, other 1.3% 2014: Juan Carlos VARELA elected president percent of vote - Juan Carlos VARELA (PP) 39.1%, Jose Domingo ARIAS (CD) 31.4%, Juan Carlos NAVARRO (PRD) 28.2%, other 1.3% The increase in secondary schooling - led by female enrollment - is spreading to rural and indigenous areas, which probably will help to alleviate poverty if educational quality and the availability of skilled jobs improve. Panama has expanded access to education and clean water, but the availability of sanitation and, to a lesser extent, electricity remains poor. The government's large expenditures on untargeted, indirect subsidies for water, electricity, and fuel have been ineffective, but its conditional cash transfer program has shown some promise in helping to decrease extreme poverty among the indigenous population. The indigenous population accounts for a growing share of Panama's poor and extreme poor, while the non-indigenous rural poor have been more successful at rising out of poverty through rural-to-urban labor migration. Panama has one of the fastest growing economies in Latin America and dedicates substantial funding to social programs, yet poverty and inequality remain prevalent.
It is in the midst of a demographic transition, characterized by steadily declining rates of fertility, mortality, and population growth, but disparities persist based on wealth, geography, and ethnicity. Panama is a country of demographic and economic contrasts. An ambitious expansion project to more than double the Canal's capacity - by allowing for more Canal transits and larger ships - was carried out between 20.
The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. With US help, dictator Manuel NORIEGA was deposed in 1989. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. The Panama Canal was built by the US Army Corps of Engineers between 19. 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). When the latter dissolved in 1830, Panama remained part of Colombia. Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela - named the Republic of Gran Colombia.
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