Abstract

This chapter discusses the historical and structural factors that shaped the nature of Panama’s elites at the start of the republican era. First, the extent to which the predominance of the transit route shaped the nature of the Panamanian economy. Panama’s economy since the colonial period has been tied to the transfer of goods across the narrow stretch of the Isthmus. This phenomenon has affected the behavior and values of elites, as well as the institutional structures of the State. Second, the increasing political influence and intervention of the United States. The Panamanian constitution of 1904 gave the United States the right to intervene militarily to “secure the public peace” whenever the United States deemed necessary. The treaty for the construction of the Panama Canal also gave extraordinary powers to the United States. Third, a high level of ideological consensus among Panamanian elites. Liberal economic ideas have dominated the political dialogue of elites since before the establishment of the republic. Both conservative and liberal elites saw Panama as a function of its geographic position, and thus supported the development of political and economic structures that deepened Panama’s insertion into the world commercial system. Fourth, the existence of a commercial elite that has, in alliance with the United States, held tight control over the apparatus of government and the principal mode of production.

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