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Panama's History

Conservatorio operates in Casco Viejo, Panama City’s historic district. Panama and Panama City’s complex political and economic history provides a unique and fascinating context for real estate development in this neighborhood. Panama City, the capital of Panama, is located on an isthmus joining the Caribbean Sea and the Pacific Ocean. Originally founded as an integral trading and transportation hub for Spain in the 17th century, Panama City has grown to become the largest city in Panama, with a population over 1.4 million people. Panama City’s comparative advantage in geographic location (due to its narrow shape, location between Central and South American continents, and the Panama Canal) lead to a tumultuous history involving both South American and North American countries that eventually gave way to Panama’s economic and political independence at the end of the 20th century.

15th

Century

1499 Spanish arrive in the region

16th

Century

1519 Panama is founded

1521 First trading post on the PacificPanama City is declared the first European trading post on the Pacific.

mid 1500s-1700s Panama City is an important international trading hubPanama City is an important gold and silver trading and transportation hub for the Spanish Empire. Precious metals from Peruvian mines are transported to Spain via Panama’s isthmus.

17th

Century

1671 Panama City is destroyedSpain is at war with England. English privateer attack Panama City; the city is left in ruins.

1673 Panama City is rebuiltPanama City is rebuilt 7.5 km away as the original site is declared unfortifiable.

18th

Century

Mid 1700s International trade economy declinesThe Panamanian economy also declines given its economic dependence on colonial exchange.

19th

Century

1819 Independence from Spain is wonWhat is currently Colombia and Panama emerge as the Republic of Granada.

mid 1800s Californian gold rushThe Panamanian economy bounces back as the Californian gold rush takes hold. Panama city becomes an important transportation hub once again as traversing the interior of the United States proves to be dangerous.

1869 Panamanian economy declinesComparative advantage in location is short lived as the United States completes an intercontinental rail line in the later half of the 19th century. The Panamanian economy declines shortly after.

1890 Canal construction beginsA French company begins construction on a canal across the isthmus in Panama City but falls into financial trouble. The United States expresses interest in purchasing the rights to the canal and associated assets but the purchase is blocked by the Colombian government.

20th

Century

1903 Panama declares its independence from ColumbiaThe Panama Canal Treaty (Hay-Bunau-Varilla Treaty) is ratified by the Panamanian government and the United States purchases the canal assets.

1914 The Panama Canal opens to shipping

1908-1977 Multiple conflicts between USA and PanamaThe Hay-Bunau-Varilla Treaty allows for American military intervention, these rights are exercised on four separate occasions. Multiple conflicts between the two governments brings about a new treaty in 1977. This treaty provides for the gradual transfer of the canal from the US to Panama.

1983-1989 Military dictatorshipPanama is governed by a drug-trafficking military dictator, Manuel Noriega. His rule ends in 1992 when he is arrested in Miami.

1999 The canal comes under Panamanian ownershipDemocratically elected woman, Mireya Moscoso, presides over the final transfer of the canal to Panama.