Panama City history

Panama City is a city with a rich and dramatic history that has become a key link between two oceans and two worlds. Its history is generally divided into two main periods: before and after the destruction of the original settlement.

The first city, known today as Panama Viejo (Old Panama), was founded on 15 August 1519 by the Spanish conquistador Pedro Arias Dávila. It was the first permanent European settlement on the Pacific coast of the American continent. In 1671, the city was looted and burned following an attack by the English pirate Henry Morgan. Two years later, in 1673, the city was officially relocated to a new, more defensible site a few kilometres away—on a rocky peninsula where the historic district of Casco Viejo is now located.

Panama City owes its rapid growth and importance primarily to its unique geographical position, which made it a strategic centre of the Spanish Empire. The main route for transporting gold, silver, and other treasures from Peru and other colonies to Spain passed through the Isthmus of Panama, transforming the city into one of the most important and wealthiest trading hubs of that time. Furthermore, Panama City served as an administrative centre and the seat of the Royal Audiencia, highlighting its high status within the colonial system. The city was also a base for further exploration and conquest of South American lands, particularly the Inca Empire in Peru.

The economy of early Panama City was entirely focused on its role as a transit and administrative hub. The city flourished through trade, warehousing, and servicing the massive flow of people and cargo. Culturally, it was a "melting pot" from the very beginning, where Spanish colonists, indigenous peoples, and enslaved people brought from Africa mingled. This interaction laid the foundation for the multifaceted cultural heritage that defines the appearance of the Panamanian capital today.

Key Dates in the History of Panama City

• 15 August 1519 — Spanish conquistador Pedro Arias Dávila founds the first European settlement on the Pacific coast, known today as Panama Viejo (Old Panama).
• 28 January 1671 — The city is looted and burned by pirates led by the English privateer Henry Morgan.
• 21 January 1673 — The city is officially relocated to a new, more protected site, where the historic district of Casco Viejo is now located.
• 28 November 1821 — Panama declares independence from Spain and voluntarily joins Gran Colombia.
• 1850s — The construction of the Panama Railroad across the isthmus gives a new impulse to the city's development, especially during the California Gold Rush.
• 3 November 1903 — With US support, Panama separates from Colombia, and Panama City becomes the capital of the new independent republic.
• 4 May 1904 — The United States begins construction of the Panama Canal, radically changing the city's economic and social landscape.
• 15 August 1914 — The Panama Canal officially opens for navigation, turning Panama City into one of the world's most important transit centres.
• 7 September 1977 — The Torrijos-Carter Treaties are signed, marking the beginning of the process to transfer control of the Panama Canal from the US to Panama.
• 20 December 1989 — The US invades Panama to overthrow General Manuel Noriega; combat operations take place in the capital as well.
• 31 December 1999 — At noon local time, the official transfer of full control over the Panama Canal to the Republic of Panama takes place.
• 26 June 2016 — The massive Panama Canal expansion project is completed, opening new locks that allow Neopanamax class vessels to pass.

Stages of Development: From Transit Route to Financial Hub

The history of Panama City is one of continuous transformation, driven by its unique geographical location. Every historical turn has left a noticeable mark on the city's architecture, economy, and culture, transforming it from a colonial port into a modern metropolis.

• Construction of the Panama Railroad (1855): Long before the canal appeared, the world's first transcontinental railway connected the two oceans. This grand engineering structure, built at the height of the California Gold Rush, gave a powerful boost to the city's development. It attracted trade, capital, and thousands of workers from all over the world, laying the foundations for Panama City's multicultural society.
• Opening of the Panama Canal (1914): This event forever changed the destiny of the city and world trade. Panama City became a key link in global logistics, and its economy became inextricably linked to the canal's operation. US influence during the construction and management of the canal was reflected in urban planning and architecture, especially in the former Canal Zone.
• Rise of the International Financial Centre (Second half of the 20th century): Thanks to its strategic location, political neutrality, and favourable tax policy, the city began to attract international banks and corporations. This laid the foundation for transforming Panama City into one of the main financial hubs of Latin America.
• Transfer of Full Control of the Canal to Panama (1999): On 31 December 1999, Panama gained full sovereignty over the canal, which was a turning point in modern history. This event stimulated rapid economic growth, attracted foreign investment, and launched a massive modernisation of infrastructure.
• Construction Boom and the Rise of Skyscrapers (2000s – Present): The economic upturn after gaining control of the canal was visually expressed in the rapidly changing urban landscape. Panama City experienced a real construction boom, for which it is often called the "Dubai" or "Singapore of Latin America". Today, 16 of the 25 tallest buildings in the region are located here.
• Expansion of the Panama Canal (2016): The completion of the massive canal expansion project allowed a new generation of Neopanamax vessels to pass through. This strengthened the city's position as a crucial global transport hub and ensured further growth in transit revenues, stimulating the economy of the entire country.

Architectural Appearance: Three Cities in One

The urban fabric of the capital is unique in that it clearly demonstrates three different historical eras existing side by side. Panama City is often called a city of contrasts, where 16th-century ruins sit alongside colonial mansions and futuristic skyscrapers reminiscent of Dubai or Miami.

Eras and Architectural Styles

The city's development can be clearly divided into stages, each corresponding to its own architectural language:

• Spanish Colonial Period (1519–1821):

  Characterised by massive stone structures, internal courtyards (patios), and religious architecture. The ruins of Panama Viejo and the oldest buildings in the Casco Viejo district are executed in this style. Key features include thick walls for protection against the heat, tiled roofs, and Baroque elements in church designs.

• French Influence and Neoclassicism (Late 19th – Early 20th Century):

  The French attempt to build the canal brought European sophistication to the city's appearance. Buildings with richly decorated facades, wrought-iron balconies, and stucco moulding appeared in the Casco Viejo district, leaning towards Neoclassicism and Eclecticism. This was the heyday of public architecture.

• American "Zonal" Style (1904–1999):

  A unique tropical modernism formed in the former Canal Zone. These are functional wooden and concrete houses on stilts with wide verandas and mosquito screens, designed for comfortable living in a hot climate. The Ancon district is a vivid example of a garden city from that era.

• Modern Globalism and Postmodernism (Since the 2000s):

  The economic boom turned the coastline into an exhibition of modern engineering achievements. Glass, steel, and concrete dominate here. Styles vary from International to High-tech and Deconstructivism. Panama strives to demonstrate its status as a financial centre through height and bold forms.

Iconic Buildings and Districts

The city's appearance is shaped by several key landmarks that have become its calling cards:

• Cathedral Basilica of St. Mary in Casco Viejo (Catedral Metropolitana): A majestic example of colonial architecture with a facade of volcanic stone, combining elements of the Renaissance and Baroque.
• National Theatre (Teatro Nacional): A gem of Neoclassicism with Neo-Baroque interiors, built in the early 20th century by Italian architect Genaro Ruggieri.
• F&F Tower (El Tornillo): One of the most recognisable skyscrapers in Latin America, shaped like a spiral. A striking example of Postmodernism and "green" architecture.
• BioMuseo: The only building in Latin America designed by the famous Frank Gehry. Its chaotic, multi-coloured roof in the Deconstructivist style symbolises the geological emergence of the Isthmus of Panama.
• JW Marriott Panama (formerly Trump Ocean Club): A sail-shaped building dominating the skyline of the Punta Pacifica district, the tallest in Central America.

Distinguished Figures Connected to Panama City

The history and culture of Panama City are inextricably linked with the names of many prominent figures—from founders and conquerors to world stars of sports and music. These individuals have left a deep mark on the fate of the city and the entire country.

• Pedro Arias Dávila (c. 1440–1531) — Spanish conquistador and governor. It was he who founded the original city of Panama City on 15 August 1519, known today as the ruins of Panama Viejo. This city became the first European settlement on the Pacific coast and the starting point for the conquest of South America.
• Henry Morgan (c. 1635–1688) — Welsh privateer (pirate) in the service of England. His name entered the city's history as a tragic chapter: in 1671, he led an expedition against Panama City, which ended in the looting and complete burning of the prosperous city. This event led to the relocation of the capital to its current site in the Casco Viejo district.
• Omar Torrijos Herrera (1929–1981) — Military and state leader, de facto leader of Panama from 1968 to 1981. His main historical achievement is considered the signing of the Torrijos-Carter Treaties with the US in 1977, which initiated the process of transferring full control of the Panama Canal to Panama. His policies largely defined the modern sovereign status of the country with its capital in Panama City.
• Roberto "Hands of Stone" Durán (born 1951) — Legendary boxer, one of the greatest in the history of the sport. Born in the poor El Chorrillo neighbourhood of Panama City, he became a world champion in four weight classes and a national hero who brought fame to Panama worldwide. A statue and the Roberto Durán Arena in the capital are dedicated to him.
• Rubén Blades (born 1948) — World-renowned musician, composer, actor, and activist born in Panama City. He is a multiple Grammy Award winner and is considered one of the pioneers of "intellectual salsa". Blades also actively participated in the country's political life, served as Minister of Tourism, and ran for president.
• Mireya Moscoso (born 1946) — Politician who became the first female president of Panama (1999–2004). It was during her administration on 31 December 1999 that the historic ceremony of the full transfer of the Panama Canal to Panama's jurisdiction took place, culminating decades of struggle for sovereignty.
• Mariano Rivera (born 1969) — Legendary baseball player born in Panama City. He spent his entire 19-year career with the New York Yankees and is considered the best closing pitcher in baseball history. In 2019, he became the first player to be unanimously elected to the US National Baseball Hall of Fame, which is a source of immense pride for all Panamanians.