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It used to be part of Colombia before declaring its independence from the southern neighbour in , backed by the United States. With a total population of roughly 3. At present, it is characterised by one of the fastest growing economies in the world.
Revenue from the Panama Canal, which has been under Panamanian control since the year , accounts for a major portion of Panama's Gross Domestic Product. The Human Development Index HDI for Panama shows that development efforts in the country have improved slightly during the past 30 years.
Although Panama has made significant economic progress, the country's economic growth in recent years has been marked by great disparities.
The income shared by the richest 20 per cent in Panama amounts to 57 per cent of the total national income. The gap between the rich and the poor is still noticeably large. Consequently, a fairly large number of Panamanians has not been able to cash in on the aforementioned economic boom.
They still live in conditions of extreme poverty. The indigenous minorities are most affected by this phenomenon with a striking 96 per cent suffering extreme poverty. Poor infrastructure, scarce resources and malnourishment are not limited to rural areas.