Panama Reflection

Panama My country of economic analysis is Panama. The predominant ethnic group in Panama is mestizo, which are Amerindian and white people mixed. The most prominent religion is Roman Catholic, which was used by the Colombians. Panama gained its independence from Colombia in 1903 and became its own country (history.com). Panama is located in Central America in between Costa Rica and Colombia (imaginepanama.us). A couple large revenue streams in Panama are the Panama Canal, and its services (tourism etc). A couple of the larger cities in Panama are the Panama City (capital), San Miguelito, and Colón (. Panamonian culture highly influences there habits domestically as well as internationally.
Some of the important customs and institutions regarding the important aspects of Panamanians lives can be seen through their flag and nation motto. The Panama flag is made up of four quadrants. The upper right and bottom left squares are blue for their Conservative party and red for their liberal party. This shows that they value their form of democracy. The upper left and bottom right squares have white backgrounds to show the peace between their two political parties. Also each of the squares with white backgrounds has a star in the center. The upper left has a blue star that represents the purity and honesty that would characterize the civil life of the republic. The bottom right has a red star that represents the authority and law that would impose these virtues. The motto of Panama is “Pro Mundi Beneficio”. This stands for “For the Benefit of the World” and it refers to helping the world via the Panama Canal. (mapsoftheworld.com)
In 2011, the population is projected to be 3,460,000 people in Panama. The sex ratio of the population is 1.02 men to every 1 woman. The crude birth rate is about 19 for every 1,000 population. The death rate, out of every 1000 people, is approximately 5 deaths. The same as in 2010, the population growth rate is 1.4%. The fertility rate, meaning births per woman in a country, is approximately 2.5 children. There are about 67 thousand babies born in Panama every year. These new Panamanians are expected to live, on average, to the age of 78. To be specific, for men it is 75 years and for woman it is 80 years. Of these babies born, there are approximately 12 deaths for every 1,000 babies; to be exact it is 12.41 deaths per 1,000 for males and 10.83 deaths per 1,000 for females. Of the babies that do live, .015% of them die before making it over the age of 5. There are 16 thousand deaths in Panama. The deaths in Panama and causes for them can be categorized into different age groups. (www.indexmundi.com)
In children ranging from ages0-4 years, causes of death were infectious and contagious diseases, prenatal period problems, congenital anomalies, low birth weight were main causes. In school children ages 5-9 years, the leading causes of mortality are acute respiratory infections and gastrointestinal infections. In adolescents 10-19 years old, the leading causes of death were accidents, self-inflicted injuries, assaults, and other forms of violence. In adults 20-59 years of age, the leading cause was accidents, self-inflicted injuries, assaults, and other forms of violence. In the elderly 60 years old and older, the leading cause of death was malignant neoplasm. (www.paho.org) For an up and coming country, when it comes to education Panama is thriving. The literacy rate in Panama is a whopping 93%. Attendance in primary school, grades 1-6, is enforced in Panama. 62% of the students go on to a secondary education and 35% go on to a higher education. Women are also encouraged to go to school. Over 60% of students at the highest level of education are women. Including smaller institutions, there are about 85 locations for higher education in Panama. With this percentage of literate, educated people it is hard to believe that there is an overflow of unskilled labor in Panama. It is estimated that about 3.8% is spent by the government on education.
Panama’s Gross Domestic Product total was estimated at $40.32 billion in 2009. This number shows the dollar value of all of the finished goods and services in Panama. The Panamanian currency is called the balboa, fixed at equivalence with the United States dollar since independence in 1903. Panama, however, is dollarized in theory. Panama uses U.S. dollars for all its paper currency. The per capita GDP is $11,900. Some of the various natural resources that drive the economy are copper, mahogany forests, shrimp, and hydropower, meaning the canal. There is a 2.3% inflation rate, a 7.1% unemployment rate, and a 28.6% poverty rate. Panama exports $11.41 billion dollars and brings in $13.62 billion worth of imports. Panama's economy is based primarily on a well-developed services area that accounts for three-fourths of Gross Domestic Product. As I said in the last paragraph, the canal system and services related to it are a big part of that.
Panama is mostly known for th canal that connects the north and south Pacific Ocen, the Panama Canal. The Panama Canal was constructed in two stages: between 1881 and 1888 by the French company and between 1904 and 1914 by the Americans (eclipse.co.uk). The Panama Canal is Panama’s biggest revenue stream. Panama, towards the beginning of its birth as its own entity, was highly influenced by the United States diplomatically. The United States paid Panama $10 million and agreed to pay $250,000 each year for rights to the canal (www.ibc-panama.com). The Panama Canal plays a major role in diplomatic and politic deals regarding Panama.
Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Panama is one of the largest and wealthiest economies in Central America. The nation's output is mainly based on a service sector which accounts for 75% of the GDP. Services include: operating the Panama Canal, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. (www.tradingeconomics.com)

Principal trading partners in 2000 (in millions of US dollars) were as follows:

As you can see, when it comes to foreign trade, Panama imports a lot more than it exports. This means that they are at a huge trade deficit. However, it is covered with charging for use of the canal among other things. Panama is dependent on foreign trade. In 1996, the nation joined the World Trade Organization (WTO). Membership allowed Panama to export goods to other members of the WTO with substantially reduced tariffs and import duties. During the 1990s, there were broad efforts to privatize government-owned companies and firms; however, the current administration has slowed or halted these programs in order to prevent further increases in unemployment. In addition, to the withdrawal of U.S. forces, which created an increase in unemployment, the slowdown in the U.S. economy has also caused an economic slowdown in Panama since the United States is one of the nation's largest trading partners. (www.nationsencyclopedia.com)
Panama is a net recipient of foreign aid. Each year the country receives approximately US$200 million in aid. Panama has a substantial foreign debt which in 2000 was US$7 billion. When the nation joined the WTO, it renegotiated some of its debt and reduced interest rates. However, payments on the debt continue to be a drain on the government's revenues. Currently, about 15 percent of the budget to devoted to debt management. (www.nationsencyclopedia.com)
Panama is an up and coming country. It is one of the wealthiest in Central America. Its Canal, as its major backbone, stabilizes trade and brings in revenue as a tourist attraction. Its people are rather healthy and the poverty level is not too high. Its growing education level and literacy rate shows that Panamanians are getting the proper education to prosper as a nation.