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The country of Panama is best known as the location of the Panama Canal, the waterway that revolutionized international sea transportation. However, there's a lot more to the country. Its history is unlike any other nation in the Americas, and its path to independence was unusual to say the least. And given its location, it should come as no surprise that it has a geography unlike any other country in the world. Learn more about the history of Panama on this episode of Everything Everywhere Daily. This episode is sponsored by Dripdrop. When you're hydrated, everything works better. Energy, mood, focus. Literally everything improves. And that's why they created Dripdrop. It's not just about thirst, it's about keeping your body and brain running at full power. Drip Drop is a doctor developed proven fast hydration that helps your body and mind work better. It uses a precise ratio of electrolytes and glucose for rapid absorption, delivering three times the electrolytes and half the sugar of leading sports drinks so you feel results fast, more focus, better energy, and even improved mood. And it actually tastes good. There are 16 original flavors and eight zero sugar options. I've actually been using the zero sugar lemon lime packets to start my day with a glass of water because I don't need any more sugar right now. Drip Drop is offering podcast listeners 20% off your first order. Go to dripdrop.com and use promo code everything. That's dripdrop.com, promo code everything for 20% off. Stock up now@dripdrop.com and use promo code everything. Oh, the car from Carvana's here. Well, will you look at that. It's exactly what I ordered. Like precisely. It would be crazy if there were any catches. But there aren't, right?

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Before we get into the history of Panama, let's start with its very interesting geography. Panama is located in Central America and is bordered by Colombia to the south, Costa Rica to the north, the Pacific Ocean to the west, and the Caribbean Sea to the east. If you remember back to my episode on why the Map in youn Head Is Wrong, most people assume that Panama runs generally north south. This is because it sits between the Atlantic and Pacific Oceans. However, if you look at a map, you'll see that it actually runs east west in the shape of an S. Panama is strategically important because it contains the Isthmus of Panamas of Darien, which is for the most part coterminous with its borders. The Isthmus is the narrowest piece of land separating the Atlantic from the Pacific Ocean north of Cape Horn. A key feature of Panama's geography is a line of mountains and hills running through its center. These form the continental divide, a high region where rainwater flows into different oceans on either side. These mountains and hills are not part of a larger range. They were created when the seafloor rose and volcanoes erupted long ago. Together, they are known as the Cordillera Central. The highest point in Panama is Volcan Bahru, located near its border with Costa Rica. The mountain is 3,475 meters, or 11,401ft tall, and is the 12th highest point in Central America. A dense, difficult to navigate jungle known as the Darien Gap lies on Panama's border with Colombia. Because it's nearly impossible to build roads there, the spot is the only place where the Pan American highway, the road stretching from Alaska to the southern tip of South America, is interrupted. Colombian drug dealers operate out of this dangerous jungle, using its dense woods as cover and occasionally taking hostages. Roughly 500 rivers flow through Panama, though not many are navigable, and given the country's geography, most are not very long. The Rio Chagres, located in central Panama, is wider than most of the other rivers in the country, and this allows it to generate much of Panama's hydroelectric power. The Gatun Dam is built on the Rio Chagres, creating the Gatun Lake in the middle of Panama. The Gatun Lake is a vital part of the Panama Canal. When it was built in 1913, it was both the largest dam and the largest artificial lake in the world. Panama has several natural harbors, the most important of which are the port of Cristobal on the Atlantic and the port of Balboa on the Pacific, both of which anchor the entrances to the canal. They rank second and third for shipping container traffic in all of Latin America. Panama's climate is tropical, with high heat and humidity. There is limited seasonal change and temperature variation throughout the year, though there is a wet and dry season. The wet season runs from April to December, when most all rainfall occurs. The Caribbean side gets more rain, usually from occasional coastal tropical cyclones. In Panama's mountain regions, certain areas are much cooler. For example, in the Cordillera Talamanca, the highest points can even have frost on occasion. Panama's tropical climate supports high biodiversity. About 40% of the country is forested. But since the 1940s, about half the tree cover has been lost, mainly to mining and farming. Much of Panama's history centers on the fact that it's located on an isthmus. It isn't just the thing that separates the Atlantic from the Pacific. It's also the land bridge that connects north and South America. It's been the route that ancient people have traveled for thousands of years. The earliest artifacts found in Panama include ancient projectile points and some of the earliest pottery in the Americas. The first humans to cross into South America may have done so approximately 14,000 years ago. We're unsure of how many native people lived in Panama before Europeans arrived. We do know that most indigenous people were part of the Chibchin, Cueva, or Chacawan peoples. It's estimated that the total number could be anywhere from 200,000 to 2 million. Many early European explorers described Panama's native tribes as diverse and called the region a key place of commerce. However, following European colonization, this diverse culture was devastated. Many area tribes fled and European diseases killed large numbers of people. The first European to set foot in Panama was Rodrigo de Bastidas, who had sailed to the region from Panama while on the quest for gold in 1501. Following Bastidas, other explorers, including Christopher Columbus, entered the area, establishing short lived settlements in their quest for treasure. In 1513, Vasco Nunez de Balboa discovered after an arduous overland trek that the Isthmus of Panama was a pathway between the Pacific and Atlantic oceans. King Ferdinand II of Spain capitalized on the isma's strategic value by appointing a new governor and sending a large number of men and ships to Panama. This led to the creation of Panama City in 1519. The establishment of Panama City made Panama the marketplace and crossroads of the Spanish New World. This is because the Spanish would often sail gold and silver found on the Pacific side of South America to Panama, haul it overland across the Isthmus, and then load the gold and silver onto ships returning to Spain. This route across the Isthmus was known by several names. It was officially called the Camino Real, or the Royal Road, though it was commonly referred to as the Camino Cruces, or the Road of Crosses. This nickname was earned because of the many grave sites along the route. Panama was under Spanish rule for almost 300 years. Its identity as a territory depended entirely on how important the isthmus was to the Spanish. If colonial commerce was doing well, then so was Panama. However, despite being nominally under Spanish control, the Spanish only held a small amount of the territory Large regions of modern day Panama resisted colonization and conversion to Christianity, so large populations of indios de guerra, or war Indians, continued to threaten European settlements for centuries. Also, because the Spanish never had full control over the region, pirates raided Spanish ports. Sir Francis Drake carried out the most notable raids, stealing hundreds of thousands of pesos worth of silver, gold and other loot for England. In the 19th century, Spanish colonies in Latin America began fighting for their independence, and Panama was no exception. Panama's call for independence began rather hectically. Citizens of the Ezuero Peninsula declared independence from Spain in 1821 without consulting Panama City or the Veraguas province in the west. Veraguas responded by calling the declaration treasonous. The capital dismissed the declaration as irregular and inefficient, but accelerated its own plans for independence. Many in the capital feared that the Ezuiro declaration would prompt Colonel Jose de Fabrega to retaliate quickly and harshly against the separatist movement. But surprisingly, the separatists convinced Fabrega, a once staunch loyalist, to join the separatist movement. This prompted Panama City to declare its support, leading to Panama's independence without military repercussions. Following independence from Spain, the present day territory of Panama underwent several changes. Very soon after independence, Panama voluntarily joined the nation of Gran Colombia as a Province in 1821. This new country was short lived, dissolving in 1831. The countries that made up Gran Colombia later reformed as the Republic of New Granada. Panama was a province of New granada for about 20 years before the region reorganized as the Granadin Confederation, during which Panama became an autonomous state within the confederation. This allowed Panama to effectively operate as its own country. Panama maintained its connection with New Granada and the subsequent granadin Confederation until 1863. In 1863, the Grenadine Confederation dissolved and the United States of Colombia was formed. Following two years of civil war, Panama was still a part of this new state, but it made over 80 attempts to secede. The United States supported Panama's secession from Colombian control, allowing it to officially become its own country on November 3, 1903. The United States backed Panama's independence largely because of its desire to build a canal. After independence, the US Quickly signed a treaty with Panama called the Heibounau Varia Treaty. No Panamanians were present during the signing of the treaty. Instead, Panama was represented by a French lobbyist while its president was traveling to discuss the agreement. This ended up playing a massive role in Panamanian history as the hey Bunau Varilla Treaty granted the United States right to a strip of land within Panama that it could essentially treat as American territory. This land, which became known as the Canal Zone, was used to build the Panama Canal, which remained under US control until 1999. I have an entire episode on the Panama Canal if you're interested in learning more about its history and construction. But for the sake of this episode, we're going to skip over the Canal's construction. The Panama Canal was opened in 1914 and immediately proved valuable to the United States, with many commercial ships opting to use it rather than sail around South America. In the meantime, Panama was governed by a constitutional democracy. Society operated under an oligarchic structure, with the country led by a small group of wealthy businessmen. In the 1950s, tensions between the oligarchy and the Panamanian people came to a head, with the military challenging the government's authority. The result was pressure on the government to renegotiate the hey Bunau Varia Treaty. Tensions in the country became so high that riots broke out in 1964, killing dozens of people and forcing the American Embassy to evacuate. In 1968, tensions between the military and the government finally came to a head. With a military couple, the military installed themselves in power, calling themselves the Revolutionary Government under military control, Panama's economy and political institutions underwent a significant transformation. They enacted many populist policies, but also suppressed any opposing groups under their leadership. They were authoritarian, creating a dictatorship that essentially controlled all aspects of Panamanian life. The military stayed in complete control, assassinating and torturing suspected members of the opposition while simultaneously destroying the Panamanian economy. This led to outside interference against the country, most notably from the United States. The U.S. initially placed sanctions on the country, but ultimately decided to invade in 1989, stating that it was necessary to protect the lives of US citizens within Panama, maintain the neutrality of the Canal, protect democracy and human rights, and to combat drug trafficking. The military operation was heavily criticized by the United nations, but was supported by most Panamanians. The invasion led to the restoration of a civilian government. Though it was initially deeply fractured. It also led to the complete dismantling and prohibition of the Panamanian military. As the new government settled in, so did the nation's stability. The new leaders took action to combat corruption and strengthen social programs. Though corruption still definitely exists, the country is now considered much more stable and peaceful than it was in the mid to late 20th century. Today, Panama remains one of the most strategically important countries in the world due to its position as a global trade hub. The backbone of the economy is still the Panama Canal, whose tolls, logistical operations, and associated maritime services generate significant revenue and serves as an anchor for a vast ecosystem of ports, ship management firms, bunkering and storage facilities. Around this core has grown a services orientated economy. Panama has developed into one of Latin America's major financial centers, attracting banks, insurance companies and multinational headquarters. With favorable tax laws and stable governance, it's also become a global hub for commerce and travel through the Colon Free Trade Zone, one of the world's largest re export centers. Panama currently ranks 67th in the world on the Human Development Index and its real GDP per capita is estimated to be at about US$36,400 around the mid-60s in global rankings. The World bank now classifies Panama as a high income country. Governance indicators are less flattering. On Transparency International's 2024 Corruption Perceptions Index, Panama only scored 33 out of 100 and ranks 114th of 180 countries indicating significant perceived corruption. While Panama still has its problems, the Canal and Panama's geography has been a blessing for the country, allowing it to have one of the highest standards of living in all of Latin America. And it's all because of its strategic location between two oceans and connecting two continents. The Executive producer of Everything Everywhere Daily is Charles Daniel. The associate producers are Austin Otkin and Cameron Kieffer. Research and writing for this episode was provided by Olivia Ashe. 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