Panama: 20th Century Developments

Panama entered the 20th century as a newly independent republic, separating from Colombia in 1903 with United States support in a move tied directly to the construction of an interoceanic canal. The United States received rights to a ten-mile-wide Canal Zone bisecting the country, and the canal opened to shipping in 1914, transforming Panama into a strategic hub of global trade.

Continued United States control of the Canal Zone became a persistent source of tension, including a 1964 riot sparked by disputes over the right to fly the Panamanian flag within the zone. These tensions eased with the 1977 Torrijos-Carter Treaties, signed by President Jimmy Carter and Panamanian leader Omar Torrijos, which set a timetable for transferring the canal to Panamanian control by the century's end.

Panama's later 20th century was shaped by the rule of General Manuel Noriega, whose government faced accusations of drug trafficking and corruption before being removed by the United States military's 1989 invasion, known as Operation Just Cause. Democratic governance was restored during the 1990s, and on December 31, 1999, the Panama Canal was formally handed over to Panama, completing a century-long transition from foreign oversight to full national sovereignty.