Panama City (Spanish: Ciudad de Panamá) is the capital and largest city of the Republic of Panama. It has a population of 880,691, with a total metro population of 1,272,672, and is located at the Pacific entrance of the Panama Canal, in the province of Panama. The city is the political and administrative center of the country, as well as a hub for international banking and commerce. It is considered a "beta" world city, one of three Central American cities listed in this category. Panama City has an average GDP per capita of $11,700. It has a dense skyline of mostly high-rise buildings, and it is surrounded by a large belt of tropical rainforest. Panama's Tocumen International Airport, the largest and busiest airport in Central America, offers daily flights to major international destinations. Panama City was chosen as the 2003 American Capital of Culture jointly with Curitiba, Brazil. It is among the top five places for retirement in the world, according to International Living magazine.
Panama City was founded on August 15, 1519, by Spanish conquistador Pedro Arias Dávila. The city was the starting point for expeditions that conquered the Inca Empire in Peru. It was a stopover point on one of the most important trade routes in the history of the American continent, leading to the fairs of Nombre de Dios and Portobelo, through which passed most of the gold and silver that Spain took from the Americas.
On January 28, 1671, the city was destroyed by a fire when pirate Henry Morgan sacked and set fire to it. The city was formally reestablished two years later on January 21, 1673, in a peninsula located 8 km (5 miles) from the original settlement. The site of the previously devastated city is still in ruins and is now a popular tourist attraction known as Panama Viejo.
The city was founded on August 15, 1519, by Pedro Arias de Ávila, also known as Pedrarias Dávila. Within a few years of its founding, the city became a launching point for the exploration and conquest of Peru and a transit point for gold and silver headed back to Spain through the Isthmus. In 1671 Henry Morgan with a band of 1400 men attacked and looted the city, which was subsequently destroyed by fire. The ruins of the old city still remain and are a popular tourist attraction known as Panamá la Vieja (Old Panama). It was rebuilt in 1673 in a new location approximately 5 miles (8 km) southwest of the original city. This location is now known as the Casco Viejo (Old Quarter) of the city.
One year before the start of the California Gold Rush, the Panama Railroad Company was formed, but the railroad did not begin operation until 1855. Between 1848 and 1869, the year the first transcontinental railroad was completed in the United States, about 375,000 persons crossed the isthmus from the Atlantic to the Pacific, and 225,000 in the opposite direction. That traffic greatly increased the prosperity of the city during that period.
The construction of the Panama Canal was of great benefit to the infrastructure and economy. Of particular note are the improvements in health and sanitation brought about by the American presence in the Canal Zone. These include the eradication of yellow fever and malaria and the introduction of a first-rate water supply system. However, most of the laborers for the construction of the canal were brought in from the Caribbean, which created unprecedented racial and social tensions in the city.
During World War II, construction of military bases and the presence of larger numbers of U.S. military and civilian personnel brought about unprecedented levels of prosperity to the city. Panamanians had limited access, or no access at all, to many areas in the Canal Zone neighboring the Panama City metropolitan area. Some of these areas were military bases accessible only to United States personnel. Some tensions arose between the people of Panama and the U.S. citizens living in the Panama Canal Zone. This erupted in the January 9, 1964 events, known as Martyrs' Day.
One year before the start of the California Gold Rush, the Panama Railroad Company was formed, but the railroad did not begin operation until 1855. Between 1848 and 1869, the year the first transcontinental railroad was completed in the United States, about 375,000 persons crossed the isthmus from the Atlantic to the Pacific, and 225,000 in the opposite direction. That traffic greatly increased the prosperity of the city during that period.
The construction of the Panama Canal was of great benefit to the infrastructure and economy. Of particular note are the improvements in health and sanitation brought about by the American presence in the Canal Zone. These include the eradication of yellow fever and malaria and the introduction of a first-rate water supply system. However, most of the laborers for the construction of the canal were brought in from the Caribbean, which created unprecedented racial and social tensions in the city.
During World War II, construction of military bases and the presence of larger numbers of U.S. military and civilian personnel brought about unprecedented levels of prosperity to the city. Panamanians had limited access, or no access at all, to many areas in the Canal Zone neighboring the Panama City metropolitan area. Some of these areas were military bases accessible only to United States personnel. Some tensions arose between the people of Panama and the U.S. citizens living in the Panama Canal Zone. This erupted in the January 9, 1964 events, known as Martyrs' Day.
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