Provides a comprehensive overview of the political and economic developments in Panama from 1980 to the present day.

The United States Government and the Government of Panama signed the Panama Canal Treaty and the Treaty concerning the Permanent Neutrality and Operation of the Canal on September 7, 1977. The U.S. Senate ratified them on April 18, 1978 and March 16, 1978 respectively. The Panama Canal Company (PCC) and the Canal Zone Government (CZG), two agencies which provide a variety of functions and services, will be replaced by the Panama Canal Commission. In order for the Commission to become operational, scheduled for October 1, 1979, implementing legislation is necessary. Two such bills have been introduced in Congress and the available evidence on Treaty issues discussed before congressional committees was collected. The issues include the form of organization the proposed Commission should take and who will audit it; the orderly transfer of functions, activities, and property; and a magnitude of Treaty-related costs. Discussions were held with representatives of the principal agencies affected by the Treaty: the U.S. Embassy, CZG/PCC, Department of Defense, Federal Aviation Administration, Smithsonian Tropical Research Institute, and Gorgas Memorial Institute. The Treaty bills providing for its implementation, and numerous documents, studies, and reports are presented and reviewed.

After Panama assumed control of the Panama Canal in 1999, its relations with the United States became those of a friendly neighbor. In this third edition, Michael L. Conniff describes Panama’s experience as owner-operator of one of the world’s premier waterways and the United States’ adjustment to its new, smaller role. He finds that Panama has done extremely well with the canal and economic growth but still struggles to curb corruption, drug trafficking, and money laundering. Historically, Panamanians aspired to have their country become a crossroads of the world, while Americans sought to tame a vast territory and protect their trade and influence around the globe. The building of the Panama Canal (1904–14) locked the two countries in their parallel quests but failed to satisfy either fully. Drawing on a wide array of sources, Conniff considers the full range of factors—political, social, strategic, diplomatic, economic, and intellectual—that have bound the two countries together.