Country and Culture

Geography and Climate

Panama's terrain in the interior is mostly steep rugged mountains that divide the separate coastlines. The coastal areas are largely plains with gently sloping hills. The dominant topographical feature is the central spine of highlands that forms the continental divide called the Cordillera Central. Panama has nearly 500 rivers, mostly unnavigable. The Río Chepo and the Río Chagres are the major sources of hydroelectric power. The Río Chagres is one of the longest and most vital of the approximately 150 rivers that flow into the Caribbean.

Panama's tropical environment supports a large variety of flora and fauna. While the forests dominate the landscape, they are interrupted in places by grasslands, scrub, and crops. Among Panama's natural resources are copper, mahogany forests, shrimp, sugar cane, rice, coconuts, and tomatoes.

Panama has a tropical climate with temperatures ranging between 70 and 90 degrees Fahrenheit. While there is little seasonal variation, the two main seasons are the dry season, which runs from January through March; and the rainy season, which runs from April through December. Although thunderstorms are common during the rainy season, the country is outside the hurricane track.

Economy and Government

Panama is one of Latin America's leading business centers.  It has a sophisticated, dollar-based economy that is based primarily on a well-developed service sector that accounts for 75 percent to 80 percent of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, tourism, medical and health, and other business.  The country boasts a large financial sector and the second largest free trade zone in the world. Light manufacturing such as processed food and beverages, building materials, furniture, and clothing also contribute to the country's economy. Construction, manufacturing, mining, utilities, and agriculture account for 25 percent of GDP.

The Panama Canal is a major focus of business activity and contributes about 5 percent to the nation's income. Owned and operated by the United States since 1914, the canal became the sole property of Panama in December 1999. A public Panamanian corporation operates the canal.

Mining, tourism, petroleum refining, brewing, sugar milling, and maritime services are projected sources for future growth.

Culture

Panama has long served as a crossroads between oceans and continents, and thus has attracted immigrants from all over the world. The culture, customs, and language of the Panamanians are predominantly Caribbean-Spanish. Ethnically, the majority of the population is mestizo (mixed Spanish and Indian) or Spanish, Indian, Chinese, and West Indian. Although Spanish is the official and dominant language, English is a common second language spoken by the West Indians, and other languages spoken include indigenous language groups such as Embera, Kuna, Wounan, and Ng"bere.

More than half the population lives in the Panama City-Colon metropolitan corridor and, although most of the country is Roman Catholic, Jews, Buddhists and a range of other religious communities are also present.

Panama is rich in folklore and popular traditions. Brightly colored national dress is worn during local festivals and for traditional folk dances like the tanborito. Indian influences dominate handicrafts such as the famous Kuna textile molas.

Peace Corps activities in Panama address the closely related problems of environmental degradation and low income among rural Panamanians. Currently, Peace Corps Volunteers are assigned to four projects that address these problems: community environmental conservation, sustainable agriculture systems, and community economic development and environmental health.

Last updated Sep 27 2008