The Republic of Panama is located in the southern part of Central America. It borders Costa Rica and Colombia. Panama had been settled by indigenous people for more than 11,000 years, when the Spanish colonized it in the 16th Century.

In 1819, it declared independence from Spain and joined the newly formed Gran Colombia and when that split up 12 years later, Panama became a part of Colombia. This lasted until Panama declared its independence in 1903. Up through the 20th Century Panama went through a period of political instability, with periods of democracy and periods of military dictatorships. However, from 1903 until 1999 the land around the Panama Canal, the so-called Canal Zone, was rented out to the United States. To protect its interest, the US invaded Panama in 1989 in order to oust the dictator Noriega.

Inhabitants: 3,300,000
Area: 76,000 km2
Capital: Panama City (1,000,000 inhabitants)
Languages: Spanish
Religion: Catholics (83%), Protestants (15%), others (2%)
GDP (PPP) per capita: $9,000
Government: Constitutional Democracy
Climate: Panama has a tropical climate