Panama
 

Panama is the narrow isthmus located in Central America that links North & South America. It is famous for its canal now under reconstruction, which joins the Atlantic & Pacific Oceans. Its position between two continents and separating two oceans has played a defining role in Panama’s history and the livelihood of its people.

It has the shape of a reclining S and extends over 75,517 sq km (29,157 sq mi) of land. It also claims 200 nautical miles (370 km/230 mi) of territorial waters along its coasts. The country is bounded on the north by the Caribbean Sea, on the east by Colombia, on the south by the Pacific Ocean, and on the west by Costa Rica. At its widest point, it stretches 650 km (400 mi) from west to east, but at its narrowest, near the roughly north-south route of the Panama Canal, it measures only 48 km (30 mi).

Panama is a democratic country and has a legal system based on a constitution. It is currently among the most stable democracies in Latin America. The country took possession of the Panama Canal on 31st December 1999 and has successfully administered the international waterway since then.

With a population of about 3.3 million (approx. 2008), it has a workforce of 1.7 million people. 74% of its workforce is involved in the services industry, to wit: the financial centre, the Panama Canal, the Colon Free Zone, tourism and others.

Panama has one of the highest literacy rates in the region, 97 percent, and most people are able to achieve a higher level of learning. It is easy to find skilled personnel and seasoned professionals in many specialties.

While the Panama Canal might be the first thing that comes to mind, Panama has developed its own unique culture and system of government and built an economy that does not depend solely on the canal. Panama has a major free port, as well as several other tax incentives, together with a sophisticated banking and financial system as well as excellent telecommunications and airline links.

A major factor in Panama’s industry and foreign commerce is the Colon Free Zone, an international trade facility that allows businesses to operate without paying import duties or taxes. Established in 1948 near the northern terminus of the canal, this zone is the largest of its kind in the Western Hemisphere and second only to Hong Kong in the world. In 2005, its 2,000 businesses generated $15 billion in sales and employed 20,000 people. Companies in the Fee Zone import raw materials and other components for manufacturing, or operate warehouses that break down large shipments from Asia and distribute them in nations bordering the Atlantic. In the 1990s and 2005, the Free Zone doubled its area and has benefited from new container ports at Manzanillo, Cristobal on the Pacific and Coco Solo. It has the largest container port in Latin America and is well on its way to becoming one of the biggest container ports in the world.

Its excellent service infrastructure has attracted a large number of international banks and corporations which have turned it into a major banking and financial centre. It has over 89 banks and 56 trust companies carefully regulated by the Superintendency of Banks. There are no exchange control regulations and no taxes levied on offshore and banking transactions. There is also free use of any currency. Interesting laws concerning multinational headquarters, industrial processing zones, technological territories and other incentives are also well perceived.

Communication systems in place are among the best and although Cable & Wireless has by contract had the monopoly of telephone services after the public telephone company was privatised on 21st May, 1997. The communications market opened up in 2003 and there are already 7 other companies competing for business.

Panama is currently the Hub of the Americas for Copa Airlines and is also serviced by most major airlines, efficiently connecting the country with the rest of the world, including flights directly from Europe.