Openai/695944a4-2764-800b-bcab-639d8dd4a4e9

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User: How has Panama faired since the removal of Noriega?

How has Panama faired since the removal of Noriega?

Assistant: Since Manuel Noriega’s removal in 1989, when the United States invaded Panama and ousted him from power, Panama has exp…

Since Manuel Noriega’s removal in 1989, when the United States invaded Panama and ousted him from power, Panama has experienced major political, economic, and social changes—transformations that have reshaped the country over the past three and a half decades.Wikipedia

🇵🇦 1. Return to Democracy & Political Stability

• After Noriega’s surrender and departure, democratically elected civilian government was restored under Guillermo Endara, who had effectively won the annulled 1989 election and was sworn in during the U.S. invasion.Wikipedia
• Panama has since maintained regular, competitive elections and avoided military coups, making it one of the more politically stable democracies in Central America.Expat-Tations
• Civilian control of the government and the military was entrenched, and democratic institutions were gradually strengthened, although challenges like corruption and inequality remain politically salient.lacommunis.org

📈 2. Economic Recovery and Growth

• When Noriega was removed, Panama’s economy was in ruin: sanctions, default, and economic contraction had devastated output, employment, and banking.Wikipedia
• Early 1990s onward: With sanctions lifted in 1992 and democracy restored, foreign investment returned, and economic activity began to recover.Wikipedia
• The economy has diversified and grown strongly over the past decades, often posting high growth rates compared to regional peers. One measure shows Panama routinely among the fastest-growing economies in Latin America.Wikipedia
• Growth has been driven by services, finance, logistics, and especially the Panama Canal — a crucial global trade artery. The canal’s expansion in the 2000s further strengthened Panama’s role in world commerce.Americas Quarterly

📊 Recent context: The economy still faces short-term fluctuations; for example, growth slowed in 2024 due to specific sectoral issues (like the closure of a major copper mine), but overall structural drivers like Canal revenues and trade remain strong.Reuters

🌍 3. The Panama Canal: From U.S. Control to National Engine

• A major milestone was the 1999 transfer of the Panama Canal from U.S. to Panamanian control. This was a defining moment for sovereignty and economic development, setting the stage for future expansion and revenue growth.Council on Foreign Relations
• The canal continues to be at the heart of Panama’s economy, generating significant revenue and attracting global investment.Americas Quarterly

🏙️ 4. Society & Development

• Living standards and social indicators improved overall compared to the post-Noriega stagnation, with poverty and extreme poverty declining over time (in cooperation with international partners like the World Bank).Wikipedia
• Urban growth, infrastructure, and services expanded, though disparities persist between urban and rural areas, and social inequality remains a policy challenge.lacommunis.org

⚠️ 5. Ongoing Challenges

Corruption & Governance

• Panama still struggles with perceptions and instances of corruption, and public demand for transparency continues to be a domestic issue.lacommunis.org

Economy’s Structure

• Heavy reliance on the canal, services, and logistics makes Panama’s economy somewhat concentrated; debates over natural resource projects (like contentious mining projects) underscore tensions between growth, environmental protection, and equitable benefit.AP News

Geopolitical Balancing

• Panama’s strategic position means it navigates complex geopolitical relationships, including with the U.S. and China, especially around canal influence and trade.The Times

🧠 In Summary

Since Noriega’s removal:

✅ Democracy was restored and has endured 📈 The economy rebounded and grew significantly, led by services and the canal 🌍 Panama solidified its role in global trade 📉 Social and institutional reforms gradually strengthened governance, though challenges remain

Overall, Panama transitioned from a collapsed, sanctioned state under Noriega into a largely democratic, globally connected economy—with growth and opportunity tempered by ongoing social and policy challenges.