Panama, officially the Republic of Panama ( ; ), is the southernmost country of both Central America and, in turn, North America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The capital is Panama City.

Panama is an international business center, and although it is only the fourth largest economy in Central America, after Guatemala, Costa Rica and El Salvador, it is the fastest growing economy and the largest per capita consumer in Central America.

Etymology

There are several theories about the origin of the name "Panama". Some believe that the country was named after a commonly found species of tree. Others believe that the first settlers arrived in Panama in August, when butterflies abound, and that the name means "many butterflies" in indigenous tongue.

The best known of these versions is that a village populated by fishermen originally bore the name "Panamá", after a beach nearby, and that this name meant "many fish".

History

Main: History of Panama The earliest known inhabitants of Panama were the Cuevas and the Coclé tribes, but they were decimated by disease and fighting when the Spaniards arrived in the 1500s.

Pre-Columbian period

The earliest traces of these indigenous peoples include fluted projectile points. Central Panama was home to some of the first pottery-making villages in the Americas, such as the Monagrillo culture dating to about 2500-1700 BC. These evolved into significant populations that are best known through the spectacular burials of the Conte site (dating to c. AD 500-900) and the beautiful polychrome pottery of the Coclé style. The monumental monolithic sculptures at the Barriles (Chiriqui) site were another important clue of the ancient isthmian cultures. Prior to the arrival of Europeans, Panama was widely settled by Chibchan, Chocoan, and Cueva peoples, among whom the largest group were the Cueva (whose specific language affiliation is poorly documented). There is no accurate knowledge of size of the indigenous population of the isthmus at the time of the European conquest. Estimates range as high as two million people, but more recent studies place that number closer to 200,000. Archeological finds as well as testimonials by early European explorers describe diverse native isthmian groups exhibiting cultural variety and suggesting people already conditioned by regular regional routes of commerce.

Conquest era

Rodrigo de Bastidas, sailing westward from Venezuela in 1501 in search of gold, was the first European to explore the isthmus of Panama. A year later, Christopher Columbus visited the isthmus and established a short-lived settlement in the Darien. Vasco Nunez de Balboa's tortuous trek from the Atlantic to the Pacific in 1513 demonstrated that the Isthmus was, indeed, the path between the seas, and Panama quickly became the crossroads and marketplace of Spain's empire in the New World. Gold and silver were brought by ship from South America, hauled across the isthmus, and loaded aboard ships for Spain. The route became known as the Camino Real, or Royal Road, although it was more commonly known as Camino de Cruces (Road of the Crosses) because of the abundance of gravesites along the way.