NATIONAL INTELLIGENCE SURVEY 77; PANAMA; THE SOCIETY

• Document Type: CREST
• Collection: NIS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP01-00707R000200080046-7
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 59
• Document Creation Date: October 25, 2016
• Sequence Number: 46
• Content Type: REPORTS

CONFIDENTIAL
77 /GS /S
1
A'.
t
0
t
l
ot
Panama
March 1974
NATIONAL INTELLIGENCE SURVEY
FH
CONFIDENTIAL
NO f OREIGN DIS.SEM
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

en`s
NATIONAL INTELLIGENCE SURVEY PUBLICATIONS
t
a
i
The basic unit of the NIS is the General Survey, which is now
published in a bound -by- chapter format so that topics of greater per-
ishability can be updated on an individual basis. These chapters� Country
Profile, 'The Society, Government and Politics, The Economy, Military Geog-
raphy, Transportation and Telecommunications, Armed Forces, Science, and
Intelligence and Security, provide the primary NIS coverage. Some chapters,
particularly Science and Intelligence and Security, that are not pertinent to
1 all countries, are produced selectively. For small countries requiring only
minimal NIS treatment, the General Survey coverage may be bound into
one volume.
Supplementing the General Survey is the NIS Basic Intelligence Fact
book, a ready reference publication that semiannually updates key sta-
tistical data found in the Survey. An unclassified edition of the factbook
omits some details on the economy, the defense forces, and the intelligence
and security organizations.
Although detailed sections on many topics were part of the NIS
Program, production of these sections has been phased out. Those pre-
viously produced will continue to be available as long as the major
portion of the study is considered valid.
A quarterly listing of ail active NIS units is published in the Inventory
of Available NIS Publications, which is also bound into th%_ concurrent
classified Factbook. -he Inventory lists aii NIS units by area name and
number and includes classification and date of issue; it thus facilitates the
ordering of NIS units as well as their filing, cataloging, and utilization.
Initial dissemination, additional copies of NIS units, or separate
chapters of the General Surveys can be obtained directly or through
liaison channels from the Central Intelligence Agency.
The General Survey is prepared for the NIS by the Central Intelligence
Agency and the Defense Intelligence Agency under the general direction
of the NIS Committee. It is coordinated, edited, published, and dissemi-
nated by the Central intelligence Agency.
WARNING
This :ocument contains information affecting the national defense of the United States, within the
meaning of title 18, sections 793 and 794 of the US code, as amended. Its transmission or revelotion
of its contents to or receipt by an unauthorized person is prohibited by law.
CLASSIFIED BY 019641. EXEMPT FROM GENERAL DECLASSIFI-
C'JION SCHEDULE OF E. O. 11652 EXEMPTION CATEGORIES
58 11), (2), (3). DECLASSIFIED ONLY ON APPROVAL OF THE
DIRECTOR OF CENTRAL INTELLIGENCE.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

\VI MEEN MA01 -J� -J MEN 4111LTUn1L WAVE J t -JOU wnOWAIWA
Ilia" M
J
WARNING
The NIS is National Intelligence and may not be re-
leased or shown to representatives of any foreign govern-
mentor international body except by specific authorization
of the Director of Central Intelligence in accordance with
the provisions of National Security Council Intelligence Di-
rective No. 1.
For NIS containing unclassified material, however, the
portions so marked may be made available for official pur-
poses to foreign nationals and nongovernment personnel
provided no attribution is made ',o National Intelligence or
j the Natior. al Intelligence Survey.
I
Subsections and graphics are individually classifiese,
according to content. Classification /control designa-
tions are:
(U/OU) Unclassified /For Official Use Only
(C) Confidential
S; Secret

APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

PANAMA
CONTENTS
This chapter supersedes the sociological cover-
age in the General Survey dated March 1970,
A. Introduction
1
B. Structure and characteristics of the society.
2
I. Ethnic groups
2
a. Physical characteristics
4
b. Language
5
2. Social structure
5
a. Class
5
b. Family
8
3. Social values and attitudes
9
C. Population
11
1. Size and distribution
13
2. Age -sex structure
15
D. Living and working conditions
16
1. Health and sanitation
19
a. Health conditions
19
b. Medical care
20
c. Sanitation
22
2. Diet and nutrition
23
3. Housing
25
CONFIDENTIAL

a,
,Page
4. Work opportunities and conditions 26
a. The people and work
26
b. Labor law and practice
32
c. Labor and -management
33
5. Social insurance
35
E Religion
36
1. Roman Catholicism
36
2. Protestantism and other faiths
38
Page
F. Education 39
G. Cultural expression 43
H. Public information 48
I. Selected bibliography 50
Glossary 52
i
FIGURES
Page
Fig. 22 Wooden dwelling near coast photo) 27
Fig. 23
Slum area (photos)
Page
Fig. 1
Location of principal Indian groups
28
Fig. 25
(map)
3
Fig. 2
Guaymi Indians photos)
4
Fig. 5
Representative Panamanians photo)
5
Fig. 4
Cuna Indian photo)
5
Fig. 5
Lottery vendor (photo)
10
Fig. 6
Growth of the population chart)
12
Fig. 7
Vital rates (chart)
12
Fig. 8
Estimated population, area, and
31
Fig. 30
population density, by province
(table)
14
Fig. 9
Average annual growth rate by
province map)
16
Fig. 10
Size and location of urban places
44
Fig. W
(Map)
16
Fig. 11
Age -sex structure (chart)
16
Fig. 12
Distribution of family income chart)
18
Fig. 13
Typical country store photo)
18
Fig. 14
Consumer price index chart)
18
Fig. 15
Leading causes of death (chart)
20
Fig. 16
Practicing physicians and nurses, by
province (chart)
21
Fig. 17
Training of nurses aides photo)
23
Fig. 18
Local health center in La Chorrera
46
Fig 39
(photo)
23
Fig. 19
Artesian well photo)
23
Fig. 20
Typical rancho (photos)
26
Fig. 21
Thatched rural dwellings photo)
27
Page
Fig. 22 Wooden dwelling near coast photo) 27
Fig. 23
Slum area (photos)
27
Fig. 24
Lower middle class home photo)
28
Fig. 25
Upper- income residence photo)
28
Fig. 26
New apartments (Photo)
29
Fig. 27
Substandard squatter units and
masorry dwelling replacements
(photos)
30
Fig. 28
United Fruit Company housing
(photo)
30
Fig. 29
Shoeshine boys (photo)
31
Fig. 30
Seventh -day Adventist church
(photo)
39
Fig. 31
Don Bosco Technical Institute
(photo)
42
Fig. 32
Choco Indian basketware photo)
44
Fig. W
Twin warrior pendant photo)
44
Fig. 34
Ruins of the old cathedral of Panama
City (photo)
45
Fig. 35
Panama City cathedral photo)
45
Fig. 36
Basilica of Nata de los Caballeros
(photo)
45
Fig. 37
Functionally planned buildings of
University City photo)
46
Fig. 38
Legislative palace in Panama City
(photo)
46
Fig 39
Lithograph by Julio Zachrisson
(photo)
47
Fig. 40
Native costumes photos)
48
n
11
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP0l- 00707R000200080046 -7

n-
i
i
The Society
A. Introduction (U /OU)
Panama, a link between two continents and a
passageway between two oceans, long has been
subject to the influence of diverse peoples and
cultures. The social system, however, is basically the
product of a Spanish colonial heritage, sonic four
fifths of the population sharing that common culture,
language, and religion. English- speaking Negroes of
West Indian origin, concentrated in the metropolitan
area adjacent to the Canal Zone, constitute the largest
ethnic minority. The presence of a small but
economically important Chinese communit various
Middle Eastern miner' .ties, and a largely unassimi-
late.(] Indian population fortFercontributes to cultural
diversity. The influence of the United States,
moreover, has been significant because of its rove in
bringing about Panama's independence in 1903 and
in operating the canal since 1914.
Throughout the colonial period (1709- 1821),
Panama's fortunes paralleled the rise and decline of
trade between South America and Spain. ['or a time,
social and economic hegemony was held by the
commercial interests of Panama City, the Pacific
terminus of the isthmus crossing route, in(] Portobelo,
the Caribbean part. Cold, silver, :.Ind agricultural
products from the west coast of South America were
transported overland from Panama City to Portobelo,
where the cargo was loaded for the Spanish fleet's
annual trip between L ite colonies and Spain. Peak
prosperity was reached early in the 17th century, when
the famed Portobelo fairs attracted traders from the
entire southern continent. Pirate raids, however,
coupled with the relaxation of trading laws which had
previously required all goods from the Spanish
colonies to pass through Panama, resulted in a decline
of the isthmus' importance u; a trade route. By 1740,
the Portobelo fairs had ended and economic power
had passed from the white commercial interests in
Panama City to mestizos, mulattoes, and white
landowners in the rural interior. Subsequently, the
abolition of slavery and the intermittent outbreak of
family wars failed to interrupt the concentration of
lands in the hands of increasingly few families, a
system of tenure which has been perpetuated to
present times.
Spanish hegemony was replaced by that of
Colombia when Panama, then a part of the Republic
of Greater Colombia, gained independence in 1821.
When tha' entity was dissolved in 1830, Panama
joined the Republic of New Granada (Colombia) and
for a time had substantial provincial autonomy,
although resistance to domination by Bogota resulted
in continual conflicts for Pan:Ima. Separatist
tendencies, which had been increasing throughout the
19th century, came to a head in 1903, when C:oiombia
rejected a canal treaty proposed by the United States.
With U.S. diplomatic and military support,
Panamanian leaders declared independence and
subsequently gave: the United States the right to act
as if it were sovct ^ign" in a 10 -mile -wide strip of
territory for the purpose of constructing and operating
a canal.
Until 1968, Panama's political and economic life
was controlled by a small number of elite families who
have resisted reforms which would impinge upon their
economic interests. This intransigence all but
precluded government action to contend with poverty
and other social problems with a potential for political
unrest. The ruling class generally was little threatened
before 1968, however, in part because national leaders
directed popular attention toward issues relating to the
canal and the U.S. presence. The sharp contrast
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

between living conditions in the Canal Zone and in
the republic, creeping inflation, and rising unemplov-
i
ment have contributed to increasing dissatisfaction,
especially among residents of Panama City and
Colon.'
r.
In 1968, the National Guard, the nation's military
establishment, overthrew the elite group which had
r...
dominated political and economic life since
independence. The Guard installed a de facto
Provisional Government dominated by Gen. Omar
Torrijos, who dissolved all political parties, declaring
his intention to remain in power as long as necessary to
implement wide- reaching reforms in the social,
political, and economic spheres. Since then, Torrijos
has consolidated his position while forging a
somewhat less personalistic and more technocratic
form of government. By eliminating the traditional
party structure, he has broken the political power of
the oligarchy and has pledged to establish a single
coalition of forces designer: permanently to eliminate
party politics. Significant institutional changes were
initiated in 1972 %vith the election of a constituent
assembly. The body's first official act was to draft a
revised Constitution which more accurately reflects
contemporary conditions. While granting broad
powers to Torrijos, thus legitimizing his position as the
nation's strongman, the Constitution also stipulates a
President and Vice president.
Of middle class, nationalistic orientation, the
Torrijos regime has taken steps to relieve the nation's
economic ills while attempting to bring greater unity
to the society as it prelude to promoting national
development. Faced with a decline in the extraor-
dinary rate of economic expansion that prevailed in
the 1960's, the government has stimulated growth
through high levels of expenditure in public works and
in the social sector, particularly for health and
education. It has emphasized rural development
projects to stern the heavy migration from the
countryside, especially to Panama City and Colon.
Despite the effort to redirect government concern from
urban to rural areas, however, Torrijos has favored
urban workers with a progressive labor code, which
has won him the support of rank and file union
members. Simultaneously, he has sought to retain the
support of the business community by avoiding
attacks on the traditional economic power structure
i
and encouraging investment. By appointing it leftist
rector to the University of Panama and acceding to
certain longstanding student demands, Torrijos has
also managed to curb student discontent. The only
i
major force in society whose support the military has
'For diacri on place m umes, see the list of names at the i.nd of
the chapter.
1'
2
i
failed to muster is the Catholic Church, chiefly
because of widely believed National Guard
involvement in the 1971 disappearance of a popular
reformist priest.
By means of his frequent trips to isolated regions of
the country, renewed emphasis on small local
governing bodies, incorporation of diverse social
groups in the government, and extensive use of the
media as a means of furthering support for official
actions, Torrijos has made strides toward engendering
a sense of national identity and purpose. In aldition,
the government has utilizer] the canal issue to distract
attention iron: unpopular domestic measures. The
mosk severe impediments to the resolution of existing
problems, however, seem to lie in the country's high
rate of population growth; the continued migration to
already overcrowded urban areas, exacerbating 'he
problems of unemployment rind the provision of
housing and social services tlicie; and the growing
inflation, which causes severe hardships for low
income families. In the face of these problems, the
government's continued credibility and success may
well hinge on its ability to bring about the reforms to
which it is committed.
B. Structure and 0 of the
society (U /OU)
Panamanian society is an amalgam of various racial
and cultural groups superimposed on the original
Hispanic structure. Although essentially a rural
mestizo society, the presence of important ethnic
minorities and the overriding influence of the Canal
'Lone have e0ritributed to the weakening of the
9ispanic tradition and set the stage for increasing
urbanization.
1. Ethnic groups
Panama's population is composed largely of
mestizos, a term applied locally to the mixed
descendants of whites Indians, and 1'egroes.
Although precise data are unavailable on racial or
ethnic composition, it is estimated that mestizos
account for some 701, of the population, Negroes
14%, whites 10 Indians 5%, and other groups M.
Because of their numbers and influence, mestizos,
whites, and Spanish -sp! Biking Negroes, whose
traditions are largely derived from those of the original
Spanish settlers, constitute the nation's main social
grouping. They speak Spanish, profess Roman j
Catholicism, and adhere to it value system similar to
that of most other Latin American societies.
The Negro component of the population includes I
two groups: the Spanish speaking Negroes who are I
descendants of colonial slaves and the more recent
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

5
i
immigrants frol,, Colombia; and the progeny of
English- speaking West Indians who arrived between
the mid -19th and early 20th centuries to work on the
transisthmian railroad and canal. In i940, the last
census year in which data on race were gathered, over
half of the population of Bocas del Toro and Colon
provinces, slightly less than one -half of the population
of Darien Province, and almost one fourth of the
inhabitants of Panama Province were Negroes. Those
living in Darien were mainly Spanish speakers while
most of the rest spoke English. Some Negroes of West
Indian derivation still work on the Puerto Armuelles
banana plantations in Chiriqui Province but most left
Bocas del Toro when banana disease forced closure of
plantations there in the 1940's. Today, most English
speaking Negroes are concentrated in the Canal Zone
and in Panama City and Colon. Spanish speaking
Negroes, who do not consider themselves culturally
distinct from mestizos and reject identification with
the West Indians, principally inhabit rural areas of
Darien and Bocas del Toro.
The Negroes of West Indian extraction do not
constitute a unified social group, as their ancestors
arrived from Caribbean islands with no unit of
tradition; moreover, they speak different dialects and
vary in educational level and cultural orientation.
Social distinctions between light and dark skinned
Negroes, however, are nonexistent, and the friction
that formerly existed between immigrants from
Barbados, Trinidad, and Jamaica has largely been
eliminated.
At the time of their introduction it was expected
that the Wes, Indians would return home after
completion of the railroad and canal, bit, manv
became involved in the service economy that attended
those projects. Language, religion, and their original
transient status kept them from being assimilated into
the dominant cultural group. Most retained British
Clizenship and passed ;t on to their children, who also
were eligible to acquire Panamanian citizenship if
they chose to register before age 18. Resentment
toward the naturalized English speaking minority by
members of the black Spanish speaking minority,
however, led to the revocation of the former's
Panamanian citizenship for several years in the 1940's.
In contemporary society, young Negroes of West
Indian extraction increasingly are being assimilated
into Panamanian society. Indeed, manv consider
themselves Panamanian and speak both Spanish and
English. At the same time, however, they are greatly
influenced by contacts with U.S. culture in the Canal
Zone. In the late 1960's ny shared a commonality
of interests with U.S. Ncp, s, but the extent of any
Political sentiments based on that relationship is not
known.
CARIBBEAN SEA
0
0 CUNA
GUAYMI
r c;roco
FIGURE 1. Location of principal indian groups (U /OU)
Unassimilated Indians comprise three groups with
distinct origins and cultural traditions. The Guavmi,
largest of the three, is located in adjacent areas of
Chiriqui, Bocas del Toro, and Veraguas provinces and
is related to neighhorng groups in Costa Rica (Figure
1). Many Guavmis are employed by the United Fruit
Company in Chiriqui and Bocas del Toro. WI-ile those
living in the more remote northern reaches of the
Guaymi territory have preserved many native
traditions, from a cultural standpoint most are
indistinguishable from neighboring mestizo farmers.
The Curia Indians occupy the Atlantic coastal
region of San Bias Intendancy and the outlying islands
of the San Plas archipelago, where they fled from
Darien Province during the colonial period.
Agriculture, fishing, and hunting form the basis of
their economy, but some are engaged in trade along
the coast and others are emploved on U.S. military
bases in the Canal Zone. Despite extensive contacts
wRh other Panamanians and a high degree of
bilingualism, the Cunas conserve many aspects of
their traditional culture, including dress, language,
music, and dance. They enjoy a large measure of
autonomy at the local level and are the only Indian
group which has achieved an efficient political
organization.
The smallest Indian group, the Chocos, inhabii 9.h
river valleys of Darien Province, bordering on Curia
territory to the north. Thought to have emigrated from
Colombia, they share some linguistic traits with the
Choco Indians of that country. In Panama, the
Chocos depend economically on the cultivation of
bananas. Because man live in close proximity to
mesti,as, certain traits peculiar to their culture have
been lost; nevertheless, most have preserved their
native language and social and religious customs.
All three Indian groups have undergone varying
degrees of social change during the 20th century as
contacts with the mainstream of Poriamanian society
have increased. By comparison with othc; i diun
groups in Central America, however, the assimilation
of Panama's native peoples is occurring slowly.
3
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

Change has been most extensive in those areas where
Indians compete more effectively in the market
economy. Such customs as communal land ownership,
reciprocal labor exchange, the distribution of
agricultural surplus to needy families, and female
dominance in agriculture by and large have
disappeared; on the other hand, native housing and
dress styles as well as folk culture have been retained
(Figure 2). increased civic awareness in recent years,
moreover, has led to demands for government aid in
health, education, and social welfare. As reccntiv as
the 1950'x, for instance, there were no schools in the
v,st Guaymi territory, a factor which he lped insulate
the natives from the main body of Panamanian
society.
Assimilation has resulted in a decreasing Indian
proportion of the total population, as shown in the
following tabulation:
INDIANS
TOTAL POPULATION N UNn3ER PERCENT
1940 622,576 55,987 9.0
1950 805,185 48,654 6.0
1960 1,075,541 62,187 5.8
1970 1,428,082 73,026 53
The apparent decrease in the absolute number of
Indians between 1910 and 1950 probably was due to
j
an incomplete count in the latter year. Between 1960
and 1970, the Indian population grew at a rate about
half that of the total population -1.64 annually
compared with 2.9 because of their assimilation
into mestizo society and their higher morta!itv rate.
In addition to whites, Mestizos, Negroes, and
Indians, Panamanian society includes numerous small
minorities who immigrated because of the country's
strategic location in international trade. Most
prominent among these are Chinese, East Indians,
Pakistanis, North Americans, Turks, Palestinians,
Lebanese, and Jews of various nationalities. Although
numerically of little significance, these groups
dominate retail trade, where Spanish surnames are in
the minority. Each ethnic group is identified with a
specific sector: the Chinese, for instance, are
important in the food and hardware businesses, the
Jews in apparel, and the Indians and Pakistanis in gift
shops. Numbering an estimated 2,700 to 3,000 persons
in 1972, Jews constituted the single largest group.
About one -half of this number are Middle Eastern
Jews who carne to Panama in the 1960'x. The Chinese
community, although clos^ -knit, includes native -born
and naturalized Panamanians as weli as those who
retain foreign citizenship. Most Chinese immigrants
came from near Canton and belong to societies having
memberships that correspond to localities in China.
The group includes wealthy and educated as well as
poor and illitera individuals. Conflicts between pro
and anti- Communist factions have sometimes
disrupted the community.
a. Physical characteristics
The racially mixed Spanish speaking population
which forms the mainstream of Panamanian society
combines a wide variety of white, Negro, and Indian
racial traits Figare 3). In the mestizo population,
white physical traits are most conspicuous among
members of the upper middle class as well as among
rur residents of Peninsula de Azuero, where
intermixture with Indians was limited. Negro traits are
host apparent among the mestizos of the Canal Zone
and the two coasts, where miscegenation beiuccen
Negroes, whites, and Indians has been extensive. The
Indian component is most evident among rural
mestizos of Panama, Veraguas, Cocle, ,nd Chiriqui
provinces.
Racially pure Negroes, whites, and Indians are few
in number and may be difficult to distinguish from
persons having mixed antecedents. Individuals in the
Spanish and English speak :ag Negro communities
are virtually indistinguishable in appearance, both
having characteristically Negroid features, although
some variation may exist in skin coloration and hair
texture. Panamanians of unmixed Spanish ancestry
generally are taller than the mestizos and have lighter
w:
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
FIGURE 2. Guaymi Indians. Typical dwelling (top);
roasting coffee beans (bottom). (U /OU)

I
i
E
i`
1 N
R:
a,
FIGURE 3. Representative Panamanians. More than two
thirds of the population are of mixed white, Indian, and
Negro descent. (U /OU)
r
r
y
i
d
r. t A `:L �r j
r r
F
FIGURE 4. A Cuna Indian. These people, also known as
San Blas Indians, have one of the highest incidences of
albinism in the world. (U /OU)
skin, eves, and hair. Many are descended from fair
skinned groups in northern SPai:l. AI6im; h differing
sorrrewhai from each %ether in Physical appearance,
members of the three main Indian groups have short
stocky builds, high cheekbones, straight black hair.
and dark eves (Figure 4).
b. I anguage
SPuscis regarded uffitlle l hullm! rk t of l' the ru culturtlk
assimilated Person. Because of 1'anarna's importance
in international trade, however, other languages also
are widely used. English is the most important of
these, mainly bc' -ads` of U.S. interests in uhc Canal
'Lott` and the Ilse of English by Negroes of Nest
Indian derivation. English I�.rnguage influence also is
evident among Spanish speakers, who sprinkle their
everyday speech with anglicisms and employ English
idiomatic expressions as well as proper nanres ar d
nicknarnes. 1'11narnaniau nationalism appears to take
little account of linguistic purity. Panamanians do,
however, resent the scorning indifference of U.S.
personnel to learning Spanish and have welcomed the
introduction of Spanish language courses in Canal
Zone schools. Ntrmrrous other languages are spoken
by the immigrant groups who reside in Punanuu, but
Most inunigrants have learned Spanish as a second
longue.
Anay.ag the In(ians, oray the Chocos, wl are the
most influenced by mestizo culture, generally speak
Spanish in addition to their native language. Fewer
than one -half of th` Cuavnri and Cana Indians speak
Spanish, although increased cultural contacts and
educational opportunities are displacing N. e various
I; ;c!ian dialects in favor of Spanish.
2. Social structure
a. Class
Social stratification differs markedly in urban and
rural areas. The residents of Panama Cit and Colon,
the only truly urban localities in tile eoc,ntrv, can be
categorize as upper, middle, or lower class. The
remaining two- thirds of Panama's population living
MdSide those nictropolitan areas have a predomi-
nantly two -class Svst`rru, with the exception of the
larger provincial capitals, snclr as 1 ?a;vid and
Veraguas, where characteristics of both the urban and
rural systems are evident. Irrespective of location,
wealth and occupation are the basic cleternrina nts of
social .;talus, but such other factors as family
background and education also weigh t�!avily.
Questions of racial or ethnic backgroun d nuuv prevent
7
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

f
z
a person from being fully accepted by the upper class,
but persons of mixed antecedents can attain social
prominence and the prerogatives of the class, if not
full acceptance, provided they possess the other
requisites.
Most Panamanians are status conscious and pursue
educational or employment opportunities which
might bring them higher social standing. As a group,
only the landless rural peasants see themselves as
inextricably bound to their status. Since World !ar If,
the expansion of the educational system and of private
and government employment, combined with
increased migration to Panama City and Colon, have
enhanced the opportunities for social mobility.
Constit,cting less than 2% of the population, the
upper class is a small, closely knit group which
purposefully sets itself apart from the rest of society.
Unlike the elites in certain other Latin American
countries, however, the Panamanian upper class has
opened its ranks to new elements as they have
acquired the requisite wealth and position. Few of
today's elite can trace their ancestry to the colonial
era, for many of the aristocratic Spanish families who
dominated the so %ial structure at that time left
Panama when its importance in commercial trade
declined late in the 18th century. Because of the
predominance of comrnz,cial over agricultural
interests, moreover, Panama did riot develop a landed
aristocracy similar to that elsewhere in Latin America.
Those wealthy families who remained in the isthmus
area, or who emigrated there fiom the interior when
trade resumed importance afier independence,
invested their wealth in urban real estate and
commerci. enterprises. Their ;cumbers were later
increased by families who amassed fortunes during the
construction of the transisthmian railroad and the
canal. In contemporary times, besides managing
family en!,rprises, men of the upper class often
practice law or medicine, hold diplomatic posts, or
pursue other careers which Jford them ample time for
leisure and cultural pursuits. By contrast to prevailing
practice in some other Latin American countries, sonic
upper class women have worked in government or
business; upper class families, however, generally do
not consider higher education necessary for women.
A small circle of 20 to 30 families known as the
rabiblancos (whitetails) formerly constituted a
subgroup within the elite zinc] virttrzt,ly monopolized
political aril economic power. Over the ye_.rs, the
infiltration of foreigners and persons of mixed
antecedents into the ranks of the rabiblancos tended to
weaken the group's cohesion, an erosion furthered by
the 1968 coup, in which the National Guard, a forncer
i
I 6
supporter of the rabiblancos, assumed power and
sought backing among the lower and middle classes.
Although the upper class continues to place a high
value on white antecedents. the consideration of other
factors as criteria for social status is suggested in the
Panamanian dictum, "money whitens everyone."
While racially pure Negroes are not fully accepted by
the elite, as degree of Negro ancestry no longer
constitutes an insurmountable obstacle to upper class
status. In recent years, both mestizos and wealthv non
Spanish immigrants have joined the Union Club,
formerly the bastion of it few elite families of pure
Spanish ancestrv.
Insofar as consumption r atterns and leisure
activities are concerned, most tipper class families
emulate the upper class North American lifestyle.
They live in large, often n. rdern homes, drive late
model cars, and employ a staff of servants. Ideally,
children are sent :abroad, particularly to the United
States, for their higher education.
The Panamanian middle class is essentially city
based, constituting about one -fifth of the urha�c
population. A heterogeneous group in terms of
education, occupation, wealth, and ethnic back-
ground, the middle class has little awareness of itself as
a distinct group, preferring rather to pattern its
lifestyle on that of the upper class while avoiding
intimate contact with individuals of the lower class. A
secondary school diploma and white collar employ-
ment traditionally have been requisites for middle
class status. The ranks of the middle class include some
professionals, small businessmen, managerial and
technical personnel, teachers, some office workers, and
many officers. The group, however, has begun to
admit some skilled blue- collar workers who earn high
wages, a phenomenon which reflects the influence of
attitudes prevailing in the Canal 'hone, where manual
laborers who achieve it level of living comparable with
that of white- collar workers are generally accepted in
the same social circles. The middle class is largely
mestizo but includes some whites and Negroes and
most European immigrants. Sonic Negroes of West
Indian ancestry have acquired middle class status, but
not without adopting the Spanish language and other
Hispanic cultural traits. Within the largely lower class
West Indian group, sobriety, church membership, arid
a stable family life, combined with secondary
schooling and a white collar occupation, can confer
middle Mass status. Such persons as ministers, doctors,
lawyers, politicians, and journalists generally have the
highest standing within the middle class community.
Middle class ranantanians are at once the most
pc' "ically militant and the most socially conservative
element in society. In their emulation of the upper
d,
i
1
rd
rti
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

1
class, they are prepared to make sacrifices for the sake
of appearance. Few can afford to own a home but
many rent the best possible dwellings and own
household appliances and television sets. They dress
rather formaliv and take care to observe the social
formalities. Middle class parents ideally send their
children to private or parochial schools and encourage
their sons to attend :he university and their daughters
to enter teaching or nursing.
The urban lower clasF, consisting of some three
fourths of the population of Panama City and Colon,
includes large numbers of unskilled and semiskilled
laborers who lack both the education and the
economic resources necessary for middle class status.
Although many in this group are intermittently or
totally unemployed, most work as manual laborers or
service personnel. Unlike its rural counterpart, the
urban lower class is highly vulnerable to fluctuations
in the job market.
Like members of the middle class, to whose status
they aspire, members of the lower class have little
sense of cohesion or awareness of belonging to a
permanent group. Many have come only recently
from rural areas and feel little solidarity with either the
group they left behind or the new urban environment.
Racial and cultural distinctions between the mestizos,
who form the hulk of the lower class, and the English
speaking Negroes, who account for most of the rest of
the group, pose a further obstacle to unity. As a result,
members of the lower class are less militant than those
of the middle class and demonstrate considerably less
dissatisfaction with their lot in life. On the other hand,
they see the opportunity for upward mobility through
education and strive for their children, if not for
themselves, to obtain at least an elementary education
and preferably a secondary school diploma. The latter
provides an entry to the middle class if the graduate
can obtain employment commensurate with his
training.
Most urban lower class Panamanians inhabit the
inner slums of Panama City and Colon and the
barriadas de emergencia (shantytowns) on the
outskirts of both cities. Their family and social lives
show a high degree of disorganization, reflected in
frequent abandonment of spouses and children,
changes in jobs and places of residence, and heavy
gambling and drinking. In recent years, community
action groups in the barhadas have organized
residents to lobby for social and economic
improvements to help stabilize the community.
Rural Panamanian society is composed largely of
mestizos and Indians �with a few whites and
Negroes �most of whom were born in Panama, speak
Spanish, and were baptized Roman Catholic. Two
broad classes are distinguished in the rural sector:
those who are very poor and those who are considered
to be better off. Rural dwellers often move from one
status to the other several times during their lifetimes.
The poorest group includes virtually all subsistence
farmers living as squatters or tenants on land owned
by the state or by absentee landlords. Some small
towns contain subsistence farmers almost exclusively.
Most subsistence farmers, however, occupy i-,olated
homesteads, typically consisting of crude thatch
roofed huts with dirt floors.
Because few farmers understand the value of
obtaining title to the land they work, their tenancy
tends to be precarious and they are prepared to move
on when evicted by the owner or when the land ceases
to be fertile. Indeed, some prefer this arrangement, as
it allows personal independence and frees them from
taxation and the need to fertilize the soil or rotate
crops. Members of the group are tradition -bound and
reluctant to change, largely because they fear a
decline in their already minimal level of living. Those
living in proximity to rural towns are considered to be
more fortunate than those in remote areas, but few of
the subsistence farmers have any meaningful access to
individuals or institutions in the higher levels of
society. Relatively few rural dwellers are wage
laborers, inasmuch as plantation agriculture is not
practiced extensively in Panama. Those who hold jobs
at banana plantations and cattle ranches have the
least measure of security.
The top one -third of rural society icludes more
affluent small farmers living on their a .vn land or in
nearbv towns and villages, and storekeepers, teachers,
and other town dwellers, whose level of living
generca!y is considerabl higher than that of th
farmer. The farmers of this group are distinguished
from the poorer farmers by the possession of more
permanent housing, some consumer goods, and more
cash income. They practice a more orthodox form of
Catholicism, are in touch with national political
events, and generally are in a better position to
improve their lot. In the older and larger towns, a kind
of traditional provincial tipper class can sometimes be
discerned, but in most cases, such groups have been
considerably weakened by the influx of new wealth
deriving from commercial growth.
The two principal segments of rural society have
some mutual contact through commercial activities
and sometimes through marriage and compadrazgo
(godparcnthood). In general, the distinction between
the poorer and the more affluent is one of degree, as all
have a low level of educational attainment and
7
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

collectively are in a worse position than the average
member of the urban lower class, who enjoys more
access to social services.
b. Family
The nuclear family is the principal unit of social
organization. Although the concept of family
solidarity is rooted in Hispanic tradition, the influx of
foreign ideas_ the presence of numerous immigrants,
the substantial geographical mobility in rural areas,
aril the inefficacy of the Roman Catholic Church in
Panama all have served to weaken the traditionally
close -knit Hispanic family ideal. The high rates of
common -law marriages, illegitimacy, and desertion by
fathers suggest that the highly valued family unity
and cohesiveness exist largely in theory. In practice,
Panamanians are among the most liberal people in
Latin America in matters concerning dating,
courtship, marriage, and family relationships.
Although the group's strength undoubtedly varies
from family to family, for most persons the
neighborhood is a more stable unit than the nuclear
family.
The exodus of many Spanish families fr Panamt.t
during the 18th century accounts in part for the
weakness of the Hispano- Catholic family pattern. The
presence of large numbers of Negro slaves who were
not allowed to form stable families, and the
subsequent immigration of West Indian Negro
laborers, most of whom came without families, have
contributed to the disorganization which characterizes
family life. This phenomenon is most evident among
the rural wage laborers and in the urban lower class.
Conversely, family cohesion is most evident within the
upper class and in stable farming communities, where
Hispanic traditions are strongest and additional
informal controls on behavior are exercised by the
community. The middle class attempts to emulate
upper class family functions and structure but
generally lacks the effective tipper class network of
contacts among relatives. Among upper class families,
many of which are interrelated, relatives play an
important supportive role and are expected to help one
another in such problems its obtaining employment.
Upper class families expect their children to marry
within the group and see to it that they mix socially
with eligible youths of proper social standing.
Children are taught from an early age to respect
family traditions and to make use of family
connections.
Compadrazgo, a ritual kinship established between
the parents of a child and his sponsors at baptism,
confirmation, or marriage� similar to the Anglo-
8
Saxon tradition of godparenthood �is still important
in some rural areas, where it helps cement ties between
people and between families. Rural parents often, ask a
local store owner or businessman to sponsor their
child's baptism because such persons are in a better
position to render aid in ti=ne of need. Conversely, the
godparent, by means of the extensive connections
established through ritual kinship, enhances his
prestige and increases his influence in the region.
Compadrazgo is less important in the metropolitan
areas, where it is largely symbolic.
Common -law marriages outnumber legal mar-
riages. The authorities have attempted to remedy this
situation by decreeing that all the rights and duties of
legal marriage apply to couples who have lived in
consensual unions for 5 years or longer. Some
common -law marriages, especially those in settled
farming communities, are as stable and permanent as
legal marriages. In most cases, however, even when
the couple has children, consensual unions are
unst able. normal marriage is seen by most lower class
Panamanians as a serious, indissoluble step with legal
ramifications that they would prefer to avoid.
Inasmuch as illegitimacy carries no social stigma,
many women have children by su=ccessive common
law husbands. The children take the name the
mother and consider themselves brothers and sisters.
They often are reared by the maternal grandmother
while the mother works to support the family.
Domestic servants who have children out of wedlock
commonly send the children to be raised by relatives
in the countryside, sending them money for support.
In recent years, authorities have rc..:cgnized the
problems of the mother- oriented family and have
encouraged unwed mothers to file child support
claims. The establishment of a government institute
for the promotion of family stability was ,authorized in
the 1972 Constitution, but littic information is
available on its activities.
Families are somewhat small by Latin American
standards, averaging 4.7 members in urban areas and
5.4 members in rural areas. Extended families living in
a single household arc the exception rather than the
rule. Few lower or middle class families have the
resources or the space to accommodate extra family
members and most prefer to establish a separate
household at the time of marriage.
Courtship and dating patterns in some circles
approximate those in the United States. There is little
chaperonage. but middle and upper class girls usually
date only one boy at a time. Virginity is considered
important among middle and upper class families and
among residents of settled fw-ming communities.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

i
i
Negro families, particularly those of West Indian
ancestry, differ from the formal Hispanic pattern in
that the matriarchal family pattern predominates. The
strong feeling that the children belong to the mother
probably dates to the days when Negroes were slaves
and family ties were almost nonexistent. Kinship ties
with the mother's family are strong, and there may be
no c ^ntaet whatsoever with the father's relatives. 11�
woman tends not to accept the double standard and
often will leave her mate if he takes a mistress. She
values independence highly and often rejects
proposals of marriage which would tic her down.
Among more assimilated, church -going Negroes,
attitudes toward family and kin more closely resemble
the Hispanic model.
Children are highly valued in a!1 social classes and
generally are pampered and reared with a minimum
of discipline. Boys are given a great deal of freedom
while girls are more closely guarded. Both are taught
sex roles at an early age. Girls imitate their mothers in
cooking, cleaning, mending, and caring for younger
children; boys help in the fields or work at menial
tasks in the city.
Except among the Negro population, male
dominance characterizes male female relationships at
most levels of society. Middle and upper class women,
however, increasingly have been less willing to accept
the stereotype of the submissive, long- suffering wife
and mother. Although the double standard continues
and extramarital affairs are carried on more openly
than in other Latin Americ.� countries, many women,
especially those acquainted with U.S. custorns, have
rebelled against its perpetuation. Women also are
l.eginning to change traditional attitudes which fail to
censure fathers who desert their children. Increasingly,
husbandless mothers are seeking legal action to obtain
Child support.
3. Social values and attitudes
"I'he fundamental values which govern the behhavior
of most Panamanians are derived from those
introduced by the Spanish settlers; with the passage of
time, these have conic to he modified by foreign
influences. 'There is virtually no Indian contribution to
the dominant white- mestizo worldview. Although
their attitudes and beliefs are similar in many respects
to those of other Latin Americans, Panamanians have
tended to adapt their views more in response to
historical change. >-ich flexibility has been least
evident .n the more isolated rural districts, while the
residents of the more sophisticated metropolitan areas
hale absorbed many modernizing influences.
Among the central values shared by all segments of
society is a belief, shared with other Latin American
countries, in the essential dignity and uniqueness of
the individual. Each perscou is thought to possess an
inner worth which is in no way related to his social
status. Resulting from this personalistic view is an
exaggerated sense of honor whirl sometimes leads to
an extreme sensitivity to insult and praise. People are
expected to acknowledge one another's individuality
through a somewhat formu!ized code of behavior,
characterized by such acts as inquiries into the
Person health and well -being of busine's acquaint-
ances prior to the initiation of dealings. t, Tloyers
ideally show personal interest in those who work for
them, while the latter are expected to show proper
deference. Far from promoting social equality,
however, the belief in the uniqueness of the individual
provides a rationalization for the existing hierarchy of
social classes, as each person is believed to he capable
of fulfilling his potential regardless of tlx! social or
economic level to which he is relegated.
Personalism also serves as a mechanism for
inhibiting the growth of impersonal institutions. As
suggested by the frequently used epithet persona de
conffanza (person of confidence), only certain persons,
particularly family members and relatives, are
c onsidered trustworthy arid moreover, are expected to
lend their support in time of need. The implications of
this attitude for local community organization ,end
development have been essentially negative, as few
individuals are inclined to champion common guises
and few groups have formed to promote the public
interest.
The personakstic approach to problems is
particularly evident in the political arena. Politics
traditionally have been left to the machinations of a
few elite families wlio compete for personal allegiance
within their own group vnd among the middle and
lower classes. Personalities, tather than parties or
issues, always have predominated. Issues may he
discussed, but in the end it is the politician as a person
who ultimately sways the outcome.
Panamanians in general are less political than most
Latin Americans. Nevertheless, they etishxnarily
respond to highly sensitive issues, notably those
involving the Canal Zone. Even then, however, their
response, although strongly nationalistic, is more vocal
than genuinely political. Civic consciiwsne'ss generally
is low and evidenced only during national elections.
Since politics have traditionally b the domain of
the aristocracy, the populatiot, at large has remained
apathetic. Opposition to the monopoly of political
Power by few families generally has been limited to
9
r.. .,F.osn t.: x+ a... on+ w;: ;ua.Y;- ;.en.,y.::�.r.r:.,,w aiezr
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

A -j M IVA 1M AM JMI -a -A AM aA 13J
i
minority ethnic groups and students. The middle class
has agitated for reforms in the past but has received
little support from the masses and has been opposed
by the oligarchy. Since the assumption of power of
General Torrijos, some shift i i traditional political
values has come aoout. Torri;os has ended control of
the government by the aristocracy and has called for
mc,re participation in government by groups in all
walks of life at the local level. Along with the courting
of peasants and workers, however, he has consolidated
political control in the National Guard and has
institutionalized his own personal power through
constitutional revisions.
Traditionally associated with the belief in
individuality are certain personality ideals for men
and women. Machismo, encompassing such charac-
teristics u. colurage, daring, recklessness, physical or
intellectual accomplisninent, and sexual prowess, is
still regarded by many Panamanians as the most
important component of the hale personality.
Women by contrast ideally are submissive,
sacrificing, and concerned with matters traditionally
associated w'th the female, such as childrearing and
attending to household and religious affairs. In both
cases, significant changes have occurred in actual
practice, particularly as women have acquired rights
to education and employment and achieved greater
personal independence.
Within the rural sector, a pervasive fatalistic
attitude continues to affect many persons who view
their situation as "within the natural order of things"
aril essentially unchangeable. Peasants are given to
interjecting the phrase "God willing" Nvhen speaking
of future plans and the concept of predestination
dominates their outlook on life. Thcv sec little
Possibility of changing their lot through hard work
and rational action, preferring to trust in luck, chance,
and Cod's will. Consequently, they are little given to
competition and often are satisfied with the mcag(
fruits of their labor and have little incentive to
produce a surplus or make a profit. In large measure
related to the low level at which most peasants live,
this limited :iewi)oint is manifested in a preference for
time tested methods over new ones which, it is
believed, might bring disaster.
Some lower class urban residents share this fatalistic
outlook on life, perpetually hoping for sorne miracle,
such as the winning of a lottery, that would change
their lot (Figure For the most part, however, the
vastly greater opportunities in the urban setting, the
faster pace of living, and the keener competition
largely have eliminated the passivity that is conunon
among rural dwellers.
10
1
Manv factors have begun to affect the traditional
views of the peasant. The advent of the transistor
radio, increased transportation facilities, and aid from
government and church agencies, as well as from such
outside organizations as All), have made an impact.
In addition, the military government that came to
power in 1968 bas stepped up efforts to involve,
citizens in the inrprovemci,t of their own communities.
The feebleness of the Inc,ian heritage and paucity of
colonial tr coupled with the absence of
national heroes, have impeded the formation of a
national self- identity. Because of the role of the canal
in maritime trade moreover the rural areas have
tended to he neglected. Consequently, the rural
people lack a sense of nationhood, some being
unaware of the existence of the canal. Panamanian
historians only recently have attempted to focus some
attention on the hinterland, where they believe the
authentic values and traditions of Paninna are hest
preserved.
Also militating against a sense of national unity is
the presence of unassimilated ethnic minorities against
whom considerable discrimination has been directed.
The largest such group, the Negroes of West Indian
origin, is disdained by the mainstream of society. Still
largely oriented toward the United Kingdom, these
Negroes are accused of divided loyalty and envied for
their advantage in obtaining jobs in the Canal Zone,
where the al �lity to speak English is important. While
these attitudes can he attribute.' largely to cultural
rather th racial factors, there also is evidence of
discrimination purely on the basis of race, a Has which
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
FIGURE 5. Lottery vendor. Gambling is popular in
Panama. In order to prevent loiterin^ -ign limits vendor
to a 30- minute stay. (U /GU)

I
r
t
applies to all dark- skinned persons regardless of
cultural background. Negroes rarely arc found in high
government posts and may be prohibited from
entering certain hotels restaurants, and residential
areas. Panamanians prefer to marry light- skinned,
straight haired persons in the belief that it "improves
the race." They generally refer to dark- skinned persons
as morenos (darks), and use the word Negro
condescendingly, both as an insult and as a term of
endearment.
At times, discrimination has been given legal
standing, as in the 1941 Constitution, which denied
citizenship to Negroes of West Indian derivation.
1lthough the 1946 and 1972 constitutions eliminated
this provision, other laws prohibit the immigration of
Chinese, Armenians, Arabs, and Negroes who do not
speak Spanish. The present 1972 Constitution also
empowers the President to deny citizenship to such
Persons. Both the immigration and citizenship
barr :ers, however, may be circumvented through
bribery, and arc generally unenforced in any case.
Although entitled by law to government protection,
Indians long have been exploited by mestizos living
near their reservations and settlements. Most mestizos
vonsider Indians backward and uncultured. As with
other non- Hispanic groups adoption of mestizo
cultural traits, including usage of the Spanish
ianguage, generally guarantees acceptance by society
at large.
Bias against shopkeepers of foreign origin also is
common. It is widely believed that the Chinese are
dishonest, and some official attempts have been made
to oust them from the commercial sector. On one
Occasion the director of the Central Market in Panama
City tried to evict all Oriental shopkeepers, but with
tittle success. Attitudes towards peoples of other
countries in general have paralleled official elations
with the countries in question. Panamanians
traditionally have distrusted Costa Ricans and
Colombians, accusing them of harboring subversive
Panamanian exiles. Attitudes toward the United States
reflect bitterness over what Panamanians consider to
be objectionable provisions in the treaty which c
established the Canal Zone. Anti -U.S. sentiment has I
been manifested on various occasions, resulting in r
demonstrati�ms, riots, and mob attacks against s
facilities within the zone. The most serious of these u
incidents occurred in 1964 and involved the issue of f�
whether or not the Panamanian flag would be flown
within the zone; the attending violence resulted in W more than a score of deaths, hundreds of injuries, and
substantial property dama a
ge. Panama broke P
diplomatic relations with the United Stales and b
lodged charges of aggression with the Organization of
American States and the United Nations. Following
the resumption of diplomatic ties several months later,
the U.S. Government announced its readiness to
renegotiate the 1903 Canal Zone treaty. Relations
between th countries have improved since that time,
but Panamanian nationalism continues to feed on the
cans: issue.
In addition to the question of Canal Zone
sovereignty, Panamanians also have been disturbed by
the longstanding custom of treating Panamanian
nationals working in the zone as less than equal to
U.S. citizens working there. Fora long period after the
completion of the canal, U.S. emplovees were paid in
gold and Panamanians and West Indians in silver.
Segregated facilities, including restrooms and water
fountains, came to be designated as either "gold" or
"silver." A dual basic pay scale eventually replaced
the gold and silver payments. Although a uniform
wage scale has prevailed since 1955, the psychological
residue of unequal treatment has lingered in the minds
of many Panamanians.
C. Population (U /OU)
Panama's population, estimated at 1,570,000 on 1
July 1973, continues to grow at a fast pace, although
the rate of increase has declined slightly since 1970.
Immigration, one of the highest birth rates in Latin
America, and a moderating death rate have caused the
population to grow rapidly during the 20th century.
The average annual growth rate exceeded 2.5 during
every 10 -year intercensal period except 1921 -30, when
a decline in employment opportunities forced many
foreign workmen to leave Panama. Between 1911, the
year of the first nationwide census, and 1970, the year
of the most recent census, the population more than
quadrupled (Figure 6). The relatively low median age
of the population, moreover, will be conducive t o the
continuance of a high growth rate for the next two
decades, because the large number of births since the
mid- 1940's will result in increasing numbers of women
ntering the childbearing years. Nor is there much
ikelihood that fertility will decline naturally in the
ucar future, inasmuch as anama's level of
ocioeconomic development has not yet reached that
ttained by the Western industrialized nations, where
arnily sizes generally have diminished.
At the present rate of growth, Panama's population
ill approach 2 million by 1980, 3.1 million by 1995,
no] exceed 15 million by the veal 2000. Panama
rovi rice alone is expected to contain more inhabitants
v the end of the century than the entire country did
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

FIGURE 6. Growth of the population (U /OU)
in 1970, and it is projected that the urban portion will
increase from less than half to more than two- thirds of
the total population. Also important for the future
economic development of the country is the
expectation that the number of children under age 15
will double by 1995, placing a heavy burden on
educational facilities. Natural increase has been the
major component of population growth since
P ^r 1,000 persons
immigration began to taper off after 1915. The rate of
50
registered births reported by Panamanian statistical
sources declined irregularly from 1925 to 1949, and
then rose gradually to over 40 per 1,000 population in
40
the early 1960's (Figure 7), more than twice that of the
Unitcd States.
The mortality rate, in contrast, has been
n.
comparatively low throughout the 20th century,
30
having been favorably affected by health and
sanitation measures introduced to protect laborers
during the construction of the canal. Although deaths
are somewhat underreported, the general trend has
20
been one of decreasing mortality since early in the
century. By 1970 Panama had one of the lowest death
rates in Latin America and, because of its low median
10
age, a lower death rate than that of the United States.
Its infant mortality rate of approximately 40 deaths
under age I per 1,000 live births in the early 1970'5
r
0
wus comparable with that of the more economically 1925 -29 35 -39 45-49 55-59 65-6971
advanced countries of Latin America. 30-34 40-44 50-54 6"4 70
Since birth rates have rernained at a high level while
death rates have declined, Panama's average annual
rate of natural increase rose front approximately 2.1 FIGURE 7. Vital rates (U /OU)
IPA
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
r

4'
l
to about 3.2% during the early 1960's. After the mid
1960's, a somewhat faster decline in the birth rate than
in the death rate resulted in a slight decrease in the
rate of natural increase to about 3.1 per year.
Migration has had little influence upon demo-
graphic trends since the end of World War II.
Although statistics on immigration are inadequate and
none are available on emigration, it is believed that
more people leave the country than enter it.
Approximately 4% of the population, almost half of
them over age 60, were listed as foreign -born in the
1960 census, the most recent for which such data are
available. This represents a considerable decrease from
the figure of over 10% foreign -born registered during
the first four decades of the century. The largest influx
Of people took place during the construction of the
railroad (1850 -55) and the canal (1880 -91 and 1904-
14). Many returned to their native countries after their
jobs ended, but a considerable number, mostly from
the British West Indies, settled permanently. During
the late 1930's and early 1940's, substantial numbers
of foreign workers were introduced to construct U.S.
defense installations in the Canal Zone. Some attempt
was made to attract displaced European farmers t
Panama after World War 11, but those few who came
tended to settle in urban areas.
Official demographic Policv has only recently
begun to reflect concern that the country's Population
is increasing too rapidly. Since 1968, the authorities
have emphasized the improvement of rural living
standards with the hope of stemming the tide of
migration to Panama City and Colon. By combining
dispersed villagers into larger communities and
Providing them with schools, health centers, water
systerns, electricity, and other essential services and
facilities, the government hopes to attract to rural
areas the private investment which heretofore has
tended to be concentrated only in the cities; thus,
individuals who might otherwise leave the countryside
in order to improv,- their lot would be encouraged to
stay. Attempts al-, ;e being made through a modest
agrarian reform program to provide legal land titles to
squatters, thereby making them eligible to receive
technical and financial aid available under the same
program. About 50 peasant cooperatives modeled on
Chilean community farms also have been established
since 1970. "There is, however, no official land r
colonization program despite the existence o} o
adequate reserves of arable land, especially in the it
south. Independent colonization is, nevertheless,
siphoning off some excess Population from the more it
densely Populated rural areas.
The concept that family planning assistance should
be made available to those who seek it has received
wide support from Panamanian officials. Among the
agencies and institutions involved in population
control programs ar the Ministry of Health, the
National Planning Office, the Social Security Fund
(CSS), the University of Panama, and the Ministries of
Labor, Education, and Agriculture. In 1968, %,11S National Committee for Demographic Policv +is
established to coordinate the relevant work of the, e
entities and maintain liaison with private groups
working in the same field.
Under the Ministry of Health's Family Planning
Program, some 40 clinics were offering family
Planning services in 1972. The Ministry also sponsors
courses on population problems for representatives of
Other government agencies, holds seminars for primary
school officials in order to improve instruction in
hygiene and sex education, and sponsors mass media
advertisements relating to family planning. The
Catholic Church in Panama, while opposing artificial
means of birth control, has endorsed the concept of
family planning through a broad approach involving
the improvement of educational, social, and economic
opportunities; church and government officials have
worked jointly on numerous aspects of the matter. The
Panamanian Association for Family Planning,
associated with the International Planned Parenthood
Foundation, plays an active role in disseminating
information through both public and private
channels. Since its founding in 1966, the association
has opened seven family planning clinics, most of
which had been turned over to government
management by 1973. Despite the favorable climate
for family planning activities, the overall impact of
the government's coordinated program thus far has
been negligible and is not expected to reduce the birth
rate substantially in the short run.
I. Size and distribution
Panama's population numbered 1,428,082 on 10
May 1970, the date of the most recent census. By 1
July 1973, it was estimated to have increased to
1,570,000. Panama is thu the (cast populated Central
American nation, its population amounting to slightly
more than one -fifth that of Guatemala, the most
P arid almost equaling th of its northern
reighbor, Costa Rica. Colombia, bordering Panama
n the south, has approximately 16 titres as many
ihahitants.
Panama is trot densely populated. At midyear 1973,
s average density of 51 persons per square mile was
cond only to Nicaragua in Central America arid was
13
i
k
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

-Irmo me In c.
slightly lower that. that of the United States. Panama
Province, with 132 persons per square mile, was by far
the most densely populated major political subdivision
in 1970, the other provinces ranging from a high of 77
persons per square mile in Herrera to a low of 3.5 in
Darien (Figure 8). Because of the heavy concentration
of population near the Canal Zone, density is greatest
in those districts of Panama and Colon provinces
adjacent to the zone (see inset to the General Survev
Summary Map in the Country Profile chapter). Only
the small district containing th:: town of Chitre in
Herrera Province matches the high density of these
districts.
Settlement patterns have changed little from
precolonial days when the area along the shortest line
linking the two coasts served as a transit route and
attracted the majority of the region's inhabitants.
When the Spanish settlers came, they established their
political and economic centers at the two terminals of
the route. Few persons settled elsewhere, mainly
because there were no interior areas clear of forest
growth suitable for large -scale farming. Thus, the
distribution of Panama's population differs markedly
from that of the other Central American countries,
where highlands are the most heavily inhabited areas.
As of the early 1970'x, almost two thirds of the
country's inhabitants lived within to miles of the
Canal Zone, mostly to the cast of the corridor, in and
around Panama City and Colon. The entire territory
further east is sparsely inhabited, as is most of the
western portion with the exception of the drier ?acific
coastal areas.
In essence, therefore, the geographical distribution
of the population is highly imbalanced. Panama and
Colon provinces alone had almost half the nation's
population in 1970, although the combined size of the
two provinces accounted onl for slightly more than
one -fifth of the total land area. Most of the remaining
population was divided among Chiriqui, Veraguas,
Cocle, Herrera, and Los Santos provinces, south of the
mountain divide. The provinces of Darien and Bocas
del Toro and the Intendancy of San Bias were sparsely
populated.
With the exception of a trend toward greater
population concentration near the Canal Zone, the
distribution of the population has not changed
radically during the 20th century. In the future,
however, it is expected that settling will increase along
the Inter American Highway, on the Pacific side of the
continental divide. As the highway is extended
through Darien Province, new farmlands also will be
made accessible in that region.
The problems generated by rapid population
growth have been accentuated by migratio to the
urban centers contiguous to the Canal Zone. Chiefly
as the result of migration to Panama City, Panama
Province grew almost twice as fast as the nation as a
whole between 1960 and 1970 (Figure 9). It was
followed by Bocas del Toro, which attracted many
rural dwellers seeking plantation jobs. The greatest
out migration occurred from Los Santos, Darien,
Herrera, and Veraguas, all of which are relatively poor
agricultural areas affording few opportunities for
alternate work.
Migrants to urban areas are attracted not only by
greater employment opportunities but also by better
health, educational, and recreational facilities.
Generally, rural migrants go first to a nearby town,
usually the district seat, and then proceed to Panama
City or Colon. There also is considerable migration
FIGURE 8. Estimated population, area, and population density, by province, 1970 (U /OU)
PERSONS
PERCENT PERCENT PER
OF TOTAL. OF TOTAL. SQUARE.
PROVINCE. POPULATION POPULATION ARE.: AREA MILE.
Bocas del Toro 43,531
Chiriqui 236,154
Cocle 118,003
Colon 109,605
Darien 22,685
Herrera 72,549
Los Santos 72,380
Panama 576,645
j San Blas* 24,681
Veraguas 151,849
Total 1,428,082
*intendancy.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
3.0
3,443
11.8
12.6
16.5
3,381
11.6
69.8
8.3
1,944
6.7
60.7
7.7
1,644
5.7
66.7
1.6
6,488
2R.2
3.5
5.1
937
3.2
77.4
5.1
1,493
5.1
48,5
40.4
4,360
14.9
132.3
1.7
1,238
4.2
19,9
10.6
4,280
14.6
35.5
100.0
29,208
100.0
48.9
9
'1
a
r.
i

i
between rural areas, especially among squatters who
move about as the land they work becomes
unproductive.
Migrants to Panama City and Colon usually go first
to the inner city slums and then move to shantytowns
on the outskirts of the cities as their situation improves.
Such squatter settlements cluster in the northeast area
of the capital in low -lying areas subject to periodic
flooding. The unhealthful conditions predominating
in such areas of high population density have strained
the resources of public agencies.
Largely as a result of rr igration to urban localities,
Panama's population has b,come increasingly urban,'
as shown by the following percentages of the national
Population residing in such places:
1930 3n.1
1940
1950 33.8
36.0
1960 41.5
1970
47.6
Between 1960 and 1970, the urban population grew
twice as fast as the rural population. In the latter year,
the provinces of Panama, Colon, Bocas del Toro, and
llerrera were the rr_ urimnized, with 79 52
35 and 32% of thei respccti;e populations living in
urban localities. All the other pro; i ^ccs had less than
26% urban population.
The urban population is, however, heavily
concentrated in Panama City and Colon, particularly
where the cities adjoin the Canal Zone. Together with
the special district of San Miguelito, the town of La
Chorrera, and several largely urban neighboring
districts, the two cities constitute the country's only
metropolitan areas; combined they accounted for 93%
of Panama's in population in 1970. The total
number of urban localities in that year was 33 (Figure
10), compared with the 21 listed in the 1960 census.
Only eight urban places had populations of over
10,000. The remaining 25 were small marketing
centers.
Although both Panama City and Colon have grown
rapidly over the past two decades, both cities are
limited in their potential to accon.,modate furth ^r
population growth. The population of Panama City,
which has almost tripled in size since 1950, is
geographically limited on three sides �by the Bay of
Panama, the Canal 'Lone, and the Pacific Occan �and
'Urhan places are defined as those with 1,500 or more
inhabitants, provided the convnunitics have such services or
installations city, public water and sewage syste
electrims, paved
streets and sidewalks, schools, stores, and social and recreational
centers.
expansion can take place only to the northeast. Colon
consists of a small enclave within the Canal Zone; its
growth has been more moderate, from some 52,000 in
1950 to 68,000 in 1970. The third largest urban place,
the special district of San Miguelito, although
administratively distinct Panama City, is
generally considered its suburb n forms a part of the
metropolitan area. The only interior towns of any
importance are David with a population of 35,677 in
1970, and Santiago with 14,597 inhabitants at that
time. Chitre and Putrto Armuelles, each with slightly
more than 1 2,000 inhabitants in 1970, were the onl
other urban localities Nvith over 10,000 population.
2. Age -sex structure
Like the populatio,; of most underdeveloped
countries, that of Panama is disproportionately young
and can be expected to become even younger in the
future as a result of continuing high birth rates and
declining infant mortafity. Between 1950 and 1970,
the median age dropped from 19.3 to 17.2 years. The
median age of urban dwellers, however, is
considerably higher than that of rural dwellers because
most migrants to the cities are ,young adults.
By 1970, almost half the population was in the
dependent age groups, under 15 and over 64 vears of
age, as shown in the followin- percentages:
0 -14 43.6
15 -6A 53.9
65 and over 35
The resulting ratio of 874 persons in the dependent age
groups for each 1,000 persons in the productive age
group places a heavy economic burden on working
age persons. It is expected that this burden will
increase in future years as expanded social security
coverage allows auditiona' older persons to retire and
as increased educational opportunities permit more
young p, to delay joining the labor force while
completing their studies.
Panama's population profi'e in 1970, depicted i)y a
pyramid with a broad base and narrow top,
graphically indicates the extreme youthfulness of the
population (Figure 11). Each successively higher age
group in the profile is narrower than the previous age
group, reflecting the smaller number of births in past
years as well as the loss of people by de -th as they have
grown older.
Because of the heavy immigration of male laborers
early in the century, males generally have
outnumbered females. This excess of males has,
15
i
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

->rnno me In c.
i
`!i.
been hzavily concentrated in Panama City and Colon.
Men outnumbered H in 1970 in every province
Growth rate except Panama and Colon, both of which are
predominantly urban. Bocas del Toro and Darien had
ttG t S the highest sex ratios, 122 and 199 males per 100 j
i
females, respectively, a result of predominantly
male migration to these largely frontier provinces.
D. Living and working conditions
Living conditions while generally good by Cent al
American standards, remain poor for a large segment
of the population. Relatively few persons directly
benefitted from the substantial economic gains of the
1960's, when Panama, registering a 7.9% average
annual rate, outranked all other Latin American
countries in the growth gtu national product
(GNP. Unemployment has declined, but still
constitutes a Major problem, especially n the Panama
Citv area, as not enough jobs were geneiated by the
economic boom to absorb the increasing num bers of
v
FIGURE 10. Size and location of urban places, 1970 (U /OU)
however, steadily diminished, as indicated in the
0 following tabulation, which shows the number of
males per 100 females:
U RBA1V RURAL ALL AREAS
1950 93 110 103.5
i 1900 93 111 103.0
1970 na na 102.8
The deficit of males in urban areas stems from the
preponderance of women among migrants to cities
and towns and would have been even greater if the
artly male foreign -born element had not
predomin
16
t
Age
75
and over
70 -74
65 -69
60 -64
55-59
50 -54
45-49
40-44
35 -39
30-14
25 -29
20 -24
15 -19
10 -14
5 -9
0 -4
I 1 1 I I I I I I I I I I I I I J
8 6 4 2 0 2 4 6 8
eercent
FIGURE 11. Age -sex structure, 1970 (U /OU)
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
FIGURE 9. Average annual growth rate,
by province, 1960 -70 (U /OU)

1'
l
i
persons entering the labor force each year. In rural
areas, underemployment is common u,,i_ rr.'`. i ..n
limitations, the diet of low- income urban inhabitants
is heavy in starchy items, monotonous, and deficient
in quantity and quality. In those respects, it is
comparable to that of most rural dwellers. Besides rice
and corn, the most commonly consumed foods are
beans, yucca, fruit, eggs, fish, and meats. Although
the per capita beef consumption in 1971 was 58
pounds, some rural persons cat beef on the average of
only once a month; chicken and pork, however, are
eaten wit.: greater regularity in the countryside. Fish
consumption by and large is limited to coasted and city
dwellers. Regardless of location, the diets of most
people are lacking in green vegetables. Guacho, made
of rice and kidney beans, ranks among the nation's
most popular dishes, as it is the mainstay of low
income individuals. Other important national dishes
include sancocho, a meat and vegetable stew; ropa
vieja (literally, old clothes), prepared with shredded
beef, garlic, onions, and tomatoes; empanadas, deep
fried turnovers filled with a meat and vegetable sauce;
and sopa borracha (literally, drunken soup), a kind of
pound cake soaked in rum. Popular beverages include
coffee, chocolate, h;;er, soft drinks, and milk.
In order to counter the leading nutritional I
Problems, several government ministries and agencies
have launched programs to increase food production
and provide instruction in proper dietary habits. The
Applied Nutrition Program, sponsored by the
Ministries of Education, Agriculture, and Labor and a
Social Welfare, aims at teaching improved agricul-
tural techniques to schoolchildren while simul-
taneously demonstrating to them the importance of a
balanced diet. Under the program, the students plant
vegetable gardens utilizing tools and seeds donated by
the FAO and UNiCEF. The produce from the I
gardens, together with wheat, oatmeal, powdered
milk, and fruit donated by CARE, is used in preparing
the children's school lunches.
in conjunction with its preventive medicine
program, the Ministry of Health has organized a pilot
gardening project involving communities rather than
schools. Cooperative labor is employed in cultivating
the gardens, and home economists are dispatched to
instrrct housewives in the preparation: of dishes using
the vegetables that are grown; the participating group
Aso may sell the produce. The pilot project has
generated considerable interest and is expected to
flourish, giving impetus to other communal works,
such as the construction of fish ponds and facilitie for
raising chickens and rabi; its. In hopes of incrc..,ing
agricultural yields, sonic of the cultivation techniques
introduced through the community garden projects
are to be extended to nearby farms. "l
g,
'NI
a� w,wmv+�cmrt
+rins.,M..n...
ti
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

3. Housing (U /OU)
t:)
Flousing conditions, perhaps more than any other
indicator of living standard, reflect the disparities
between upper and lower income groups and between
urban and rural residents. The worst housing is found
in the crowded inner slums and in the shantvtowns
surrounding Panama City and Colon, where the
unauthorized seizure of unoccupied private and
Public lands has occurred with increased frequency
since World War II. As a result, government housing
funds have been diverted from construction of new
dwellings to the provision of minimal municipal
services in the shantytowns, where, as in rural areas,
most dwellings lack sanitary facilities and other
amenities.
Although the number of housing units increased
between 1960 and 1970, the housing deficit, estimated
at 154,000 units in 1965, continued to grow. In 1960,
the latest year for which such data are available, about
three- fifths of all dwellings were listed as deficient
because of inadequate construction or lack of sanitary
facilities. Most were one- or two -room units, and more
than one -fifth housed five or more persons per room.
In some respects housing conditions improved during
the 1960's �the proportion of dwellings with dirt
floors decreased from 40% to 33% and that of units
without electricity from 58% to 48% by 1970. in five
of the nine provinces, however, more than seven
tenths of all dwellings were not wired for electricity in
1 970.
The typical rural dweller lives in a poorly
constructed rancho, a one -room, thatch roofed but
with a dirt floor and cane walls (Figure 20). The
quincha, an improved version of the rancho, features
wattle and daub walls and is found in more prosperous
rural communities (Figure 21). Tile roofs are a symbol
of still greater affluence among residents of the
countryside and arc found on a few houses, mostly
those outside towns. Rural homes usually are built
near the road, so that the work area behind the house
is hidden from view. Sanitary facilities or outbuildings
are uncommon. in a few areas, especially near the
coast in Becas del 'Toro Province, wooden dwellings
predominate (Figure 22). Furnishings are scant,
generally consisting of a few homemade chairs and
tables, a wooden platform bed with a straw mattress,
and a few hammocks. Cooking is done in a corner of
the dwelling or in an outside lean -to. Kitchen utensils
are hung on the walls or from the roof. Soot from 'he
fire and dampness from the tropical climate add to the
unhealthiness of the dwelling. Kerosene lamps
constitute, a fire hazard, particularly in the (Iry season
when thatched roofs can readily he ignited.
Poor families in Panama City and Colon live in
crowded casas de vecindad (neighborhood houses),
I
ocated near the downtown area, or in barriarlas de
emergencia located on the outskirts of the cities. The
typical downtown slum consists of rows of dilapidated
two- storied wooden h, uses with corrugated tin roofs
(Figure 23). Originally built to house canal
construction workers, the slums are still inhabited by
many persons who work in the Canal Zone. Each
tenement houses several families who share sanitary
facilities; cooking and laundering also is done
communally, usually in the building's inner patio.
Verandas, which extend along the entire length of the
second floor, are used as play and work areas. Such
slums are confined to those t cities; most of the poor
in other towns and cities live in crude adobe dwellings
with earthen floors.
Most middle income families rent apartments or
small houses, which they equip with such prestige
items as television sets, refrigerators, and sewing
machines (Figure 24). Although some tipper income
families live in luxurious mansions, wealthy residential
neighborhoods are less in evidence in Panama City
than in many other Latin American capitals (Figure
25).
The Panamanian Government first entered the
housing field during World War II when it allocated
funds to provide housing for the numerous foreign
workers who entered the country at that time. In 1958,
the Housing and Urbanization Institute (IVU) was
founded as an autonomous state agency responsible
for planning the development of urban and rural
communities, fostering private home building,
developing and administering public housing projects,
and advising municipalities on urban planning. iVU's
attempts to deal-with the large housing problem have
been hampered by a dearth of funds. In 1971, the
government's capital expenditure for housing
programs amounted to B3.3 million; 3 years earlier it
was estimated that no less than B20 million was
needed to be invested annually for the purpose.
Attempts to eradicate urban slums have been fought
by landlords, many of them prominent individuals
with considerable influence in government circles. In
1973, iVU was incorporated into it new Ministry of
Housing; at that time a National Mortgage Batik was
established to finance all public housing construction.
iVU- supported housing projects are located mainly
in Panama City, Colon, David, and Santiago and
generally consist of apartment -style dwellings (Figure
26). Construction of these units, however, has fallen
far short of the country's public housing needs. In the
1960's, for instance, IVU built fewer than 2,000 units
annually, although it was estimated that between
25

-Irmo me In c.
i
1960 and 1980 an average of 1.1,750 units per year
would have to be built to overcome the housing
deficit, replace obsolete dwellings, and accommodate
population growth. A housing plan for 1971 -73 called
for IVU's construction of -1,792 units yearly, a goal
which appears to have been met. Data a r e unavailable,
concerning the amount of honsing built by the private
sector, but it is thought to constitnle about three
fourths of all new construction.
IVU honsing programs are aimed at famili whose
monthly income ranges from 6125 to 6250; except for
the marginally successful "Floor -Roof" project in
Pananmt City, there have been no public� housing
programs for those wl,ose income falls beloxv this level.
Thus, some 16% of the ^apital's population and about
half the remaining population cannot qualify for
public housing. Under the "Floor- Roof" program, the
IVU sold lot and construction materials consisting of a
floor, four support posts, and galvanized roofing sheets
for 13600; no down payment was required and the
purchase price was repayable on an installment plan.
Unable or unwilling to obtain siding materials to
complete the units, sonic families live in partially
finished shelters, from which they are immune to
eviction.
Cooperative housing is a fairly new concept in
Panama and few such runts have been constructed.
IVU, with help from AID, has sponsored some
cooperative housing projects, mainly in urban areas, in
which prospective residents plan the financing and
operation of the new facilities and build the units
themselves (Figure 27). Cooperative housing projects
arc regarded as a means of bridging the existing gap
between IVU projects for low income families and
private sector housing for higher income groups.
Cooperative housing built to date has hcen in the
132,700 136,000 price range and thus accessible to lower
middle income families. The Cooperative Housing
Foundation (FUNDAVICO), a private nonprofit
organization established in 1967, builds cooperative
housing in rural areas for families having monthly
incomes of 6200 to 8300. '1'o date, however,
construction under the program has been minimal,
fewer than 300 units having been completed by 1971.
'I'll(- govcrnrrtent also aids housing construction
through the Insured Mortgage Development Institute
(IFIIA), founded in 1963 to encourage the use of
savings and loan associations by insuring and
rediscounting mortgage loans. As of 1970, however,
only three savings and loan associations were
operating in Panama. Sonic large agricultural
enterprises provide honsing for their workers (Figure
28).
4. Work opportunities and conditions
a. The people and evork (U /OU)
The pattern of employment in Panama has changed
little since the turn of the century. Many
I'anatnanians are self employed farmers who work at a
subsistence level or earn iisufficienl income to
accumulate the savings which would enable them to
break the cycle of poverty. Few farmers cultivate
enough land to provide them with full -time
employment. Because most land use is by usufruct�
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
FIGURE 20 Typical rancho: exterior
and interior views (U /OU)

Jnnomcinc.
FIGURE 21. Thatched rural dwell-
FIGURE 22. Wooden dwellings
i
e
tl
FIGURE 23. Slum area in the center of Panama City.
Dwellings are owned by wealthy families and rented. (C)
6,
11 10' ;'X.
27

TAaMuiee- a- j!!%MoNkI -aT rjIneir r-W` ii- ceeeeermFAWr iar- 1a16 war 1AIVAria Tel IwIIInv4111YJw
FIGURE 24. Lower middle class
home. Radio, television set, and
sewing machine are prestige
items. (U/OU)
FIGURE 25. Upper income residence,
Panama City (U/OU)
the farmer obtaining permission from local authorities
for the temporary cultivation of a parcel �there exists
little incentive to improve the soil or to rotate crops.
Primitive agricultural techniques also contribute to
low p ocnction. A large labor surplus in agriculture
and poor living conditions in rural areas have led
many to migrate to the cities, where they often join the
ranks of the unemployed or take low- paying menial
jobs offering little chance for advancement. While
many Upper and middle class Panamanians appreciate
the relationship between hard work and reward, or
Despite the economy's rapid expansion in the
1960's, insufficient jobs were generated to absorb the
large numbers of unemployed and underemployed.
According tc the 1970 census, 47,000 workers, 9.7 of
the labor force, were unemployed, a decline from
11.2% in 1960. Reflecting the concentration of jobless
individuals in the two main cities, Panama and Colon
provinces had the highest unemployment rates in
1970 -131 and 14%, respectively. Many jobless
individuals, however, part mu!arly in the agricultural
sector and among the ranks of unpaid family workers
success, the hnik of lower class individuals trust in luck and the self employed, probably were overlooked
or chance. Job motivation and satisfaction thus are during the 1970 enumeration. The joblessness among
1 seriously impaired. urban workers also appears to have been under-
C
28
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

MINNOW
FIGURE 26. New apartments built in Panama City to replace slum dwellings (U/OU)
29
APPROVED FOR RELEASE: 2009/06/16:
CIA-RDP01-00707R000200080046-7

FIGURE 27. Sub idard squatter
units (top) have L.en replaced by
masonry dwellings (bottom) under
an AID self -help housing
program. (U /OU)
z
FIGURE 28. Housing provided for
workers by United Fruit Company,
Puertc Armuelles (C)

-Irmo me In c.
a..,..,.
g 7777
s
I
counted, as it has been estimated that as many as one
fift i of all workers in Panama City and Colon are
unemployed. Unemployment is especially high among
secondary school graduates, who compete fora limited
number of white collar jobs, mostly in the business
sector. In contrast, unemployment among persons
with vocational or advanced professional training is
low, as the demand for skilled technicians, managers,
and professionals exceeds the supply.
Underemployment is a more widespread problem
than unemployment, particularly among the self
employed, an estimated 39% of whom are affected.
Agricultural workers, who make up the bulk of the
self employed, generally cultivate an average of fewer
than 3 acres of land, requiring 150 man -days of labor
per year or less. Some hire out as temporary wage
laborers. Among the urban self employed, such
persons as shoeshine boys (Figure 29), street vendors,
domestics, laundresses, messengers, and others work
only intermittently. Underemployment is particularly
acute among service workers in the greater Panama
City area, when_ many are engaged in casual or part
time occupations of low productivity and pay.
The government hopes to reduce the unemplov-
ment rate to less than 6% through programs designed
to stimulate the more labor- intensive sectors of the
economy and to train people in occupations for which
there is a demand. Spending on road construction and
other public works projects has increased appreciably
since th- rorrijos regime assumed power in 1968. In
addition, an extensive program of rural development,
encompassing financial and technical aid to farmers
and the expansion of educational and health care
facilities, has been undertaken for the purpose, at least
in part, of stemming the flow of unemployable
migrants to the cities. By raising production costs and
discouraging private investment, however, the
government's wage policies� namely the enactment
of the so- called 13th month wage and an increase in
the legal minimum wage appear to have interfered
with the expansion of the labor market. In sonic cases,
employers actually have laid off workers since
enactment of the revised wage regulations.
Although much remains to be done in the fields of
manpower training and planning, considerable
progress has been made since the mid- 1960's in human
resource development. T he Institute for the Formation
and Utilization of Human Resources (IFARHU),
founded in 1965, sponsors a national manpower
training program and has trained about 500 skilled
and semiskilled workers per year. Lasting 6 months,
the IFARHU courses cover such specialities as
bricklaying, carpentry, plumbing, concrete construe-
FIGURE 27. Zhoeshine boys in Panama City (U /OU)
tion, and many others. In 1970 IFARHIU undertook
the nation's first large -scale survey of manpower needs
and found that, barring remedial action, by 1980 the
country's deficit in professional and technical
personnel will exceed 10,000. The survey also disclosed
that nearly two fifths of all persons then employed
were in need of additional training in order to perform
their jobs adequately.
Based on findings of the IFARHU survey, the
government enacted an educational insurance law in
1971. Funds collected from employee and emplover
contributions, totaling 2% of salaries. are to be used
for scholarships for secondary school students, loans
for university study, and other forms of student
financial support. The measure also provides for the
expansion of rural vocational and literacy training
programs.
Until recently, the dearth of institutional job
placement services severely restricted opportunities for
people to obtain work. Private employment agencies,
specializing in the placement of unskilled laborers and
domestics, have been concentrated in Panama City.
The National Employment Service, established in
1967 to upgrade employment practices and find jobs
for the unemployed, has expanded its functions since
1970, inaugurating branch offices outside the capital.
Nevertheless, most job seekers still find work through
personal referrals and job opportunities, especially for
women, remain elusive.
31
APPROVED FOR RELEASE: 2009/06/16: CIA RDP01 00707R000200080046 7
i

n is i�u@I w&lff.c
p
I
i
Largely because more than half of all migrants t
the cities were female, the participation by women i
the labor force rose from 21 in 1960 to 24% in 1970.
Although wage jobs for women are more plentiful in
the cities than elsewhere, most of the available work is
in the service sector, principally as domestics and in
similar occupations. In the countryside, women work
mainly as unpaid family laborers. In all localities, girls
and women often supplement family incomes through
part -time jobs, such as making handicraft articles, or
by serving as laundresses, seamstresses, or babysitters.
Teaching and nursing are the main professional fields
that attract women. As indicated by the highest
female rate of participation in the labor force being in
the 20 -24 age group, many women give up their jobs
once they start raising a family.
As educational opportunities have increased and
Pupil retention rates have improved, work by children
under age 15 has declined steadily. The ILO has
estimated that the labor force participation rate by
persons in the 10 -14 age group dropped from 11.5% in
1950 to 9.3% in 1960 and to 6.4% in 1970. Because of
the liberalization in retirement benefits, the
proportion of economically active persons aged 65 and
over is believed to have declined by about 10% during
the same 20 year period; according to the ILO, in
1970 an estimated 27.9`% of all persons aged 65 and
over were economically active, the division by sex
being nearly equal.
b. Labor law and practice (U /OU)
The basic rights of workers are stipulated in the
1972 Constitution, and detailed regulations are set
forth in a revised Labor Code enacted in April of that
year. Although it applies to most wage and salary
earners, the code does not cover temporary employee's
and farm workers (except for those employed on
mechanized agricultural enterprises). The code
represent:; a considerable improvement over the 1945
version, which it replaced. Implementation of the new
statute, however, is hampered by a shortage of funds
and by the lack of trained labor inspectors.
Responsibility for enforcing the regulations lies with
the Ministry of labor and Social Welfare, which was
separated in 1969 from the. Ministry of Labor, Social
Welfare., and Health, a department which theretofore
had been concerned almost exclusively with health
matters. The Inspectorate General of Labor, the
division which actually supervises compliance with
the code, has offices in the provincial capitals, but
employs fewer than 20 inspectors.
Job security has been strengthened considerably by
the new Labor Code. Under the old statute, a worker
32
o cou be dismissed at any tiane and without severance
n pay, provided the employer gave the individual a
prescribed number of days of advance notice. Now
employers are required to show just cause for
dismissing workers and to make substantial severance
payment to those who are fired. Employees may report
what they believe to be unfair dismissals to the
Inspectorate General of Labor, which is empowered to
levy heavy fines against employers who are found
guilty of unfair practices.
Work terms and certain benefits have remained the
same as in the previous code. The maximum legal
workday is 8 hours and the workweek is 48 hours;
overtime pay is required for work exceeding those
limits. There are 11 paid holidays, 30 days of paid
annual leave, and 18 days of paid sick leave. Under
the social insurance system, workers are eligible for
medical and retirement benefits. Some larger
employers voluntarily offer such fringe benefits as day
care centers, group life insurance, company medical
care, and recreational facilities. Other than the
provision for 6 weeks of prenatal and 8 weeks of
postnatal matern:,y leave, there are no special
regulations governing the employment of women. On
the other hand, children under age 15 may be
employed legally only if they have completed primary
schooling, except in farming, in which case they may
begin work at age 12. Youngsters under age 16 may
not legally engage in hazardous or strenuous work,
and all working children are entitled to the protection
of the Child Welfare Institute.
The minimum wage is governed by separate
legislation, the most recent version of which dates
from 1970. Minimum wages vary according to
occupation and geographical region and are set by the
Ministry of Labor and Social Welfare, based on
recommendations by the National Minimum Wage
Council. The most recent rates, set in November 1971,
ranged from B0.35 per hour in some outlying districts
to B0.50 in greater Panama Citv. In large urban
manufacturing and commercial enterprises, especially
if foreign owned, the hourly wage rates are often
above the legal minimum. In many other establish-
ments, however, emplo do not comply with the
regulations. The minimum wage for agricultural
laborers is 132.50 per 8 -hour day and is observed only
by large agricultural enterprises. bate in 1971 the
government decreed that all employers must pay an
annual bonus equivalent to I month earnings. This
13th month wage is paid in three installments, one of
which goes into a special government housing fund.
In terms of safety and hygiene, conditions of work
generally are comparable to those in other small Latin
4
9
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
o cou be dismissed at any tiane and without severance
n pay, provided the employer gave the individual a
prescribed number of days of advance notice. Now
employers are required to show just cause for
dismissing workers and to make substantial severance
payment to those who are fired. Employees may report
what they believe to be unfair dismissals to the
Inspectorate General of Labor, which is empowered to
levy heavy fines against employers who are found
guilty of unfair practices.
Work terms and certain benefits have remained the
same as in the previous code. The maximum legal
workday is 8 hours and the workweek is 48 hours;
overtime pay is required for work exceeding those
limits. There are 11 paid holidays, 30 days of paid
annual leave, and 18 days of paid sick leave. Under
the social insurance system, workers are eligible for
medical and retirement benefits. Some larger
employers voluntarily offer such fringe benefits as day
care centers, group life insurance, company medical
care, and recreational facilities. Other than the
provision for 6 weeks of prenatal and 8 weeks of
postnatal matern:,y leave, there are no special
regulations governing the employment of women. On
the other hand, children under age 15 may be
employed legally only if they have completed primary
schooling, except in farming, in which case they may
begin work at age 12. Youngsters under age 16 may
not legally engage in hazardous or strenuous work,
and all working children are entitled to the protection
of the Child Welfare Institute.
The minimum wage is governed by separate
legislation, the most recent version of which dates
from 1970. Minimum wages vary according to
occupation and geographical region and are set by the
Ministry of Labor and Social Welfare, based on
recommendations by the National Minimum Wage
Council. The most recent rates, set in November 1971,
ranged from B0.35 per hour in some outlying districts
to B0.50 in greater Panama Citv. In large urban
manufacturing and commercial enterprises, especially
if foreign owned, the hourly wage rates are often
above the legal minimum. In many other establish-
ments, however, emplo do not comply with the
regulations. The minimum wage for agricultural
laborers is 132.50 per 8 -hour day and is observed only
by large agricultural enterprises. bate in 1971 the
government decreed that all employers must pay an
annual bonus equivalent to I month earnings. This
13th month wage is paid in three installments, one of
which goes into a special government housing fund.
In terms of safety and hygiene, conditions of work
generally are comparable to those in other small Latin
4
9
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

-Irmo me rn c.
i
i
i
i
American countries �also similarly there is a marked
discrepaney between the law, as embodied in the
Labor Code and in sanitation regulations, and actual
practice. Efforts to reduce work injuries are hampered
by the scarcity of trained inspectors. The use of
complicated machinery and exposure to toxic
materials by poorly trained or inexperienced personnel
result in a high incidence of work accidents and
occupational illnesses. Accidents are especially
numerous in the construction industry. In recognition
of the problem, the government has organized a
limited instruction program in occupational health.
Many large, foreign -owned companies maintain
safety units and are members of a council whose
activities include the distribution of publications on
work safety and the issuance of awards for low
accident rates. To some extent, private insurance
companies, namely those underwriting workmen's
compensation coverage, fill the gap created by
inadequate government inspection.
By strengthening existing unions and improving
conditions for further trade unionism and more
effective collective bargaining, the new Labor Code
would appear to have strengthened the position of the
labor movement. When a union represents one -half or
more of a plant's workers, it may exercise the check -off
system, whereby the employer is required to withhold
memb rs' dues from their wages. The code stipulates
that only one union official may be recognized in each
union shop, a provision designed to encourage the
formation of stronger, more cohesive locals.
Concomitantly, however, the government has
assumed a more active role in the regulation of
industrial relations, a development which at times
may tend to undermine organized labor's influence. In
accordance with the code, enterprise committees mad
up of two representatives each from the employer and
the union must attempt to resolve disputes through
negotiations within the workplace. If no agreement is
reached, the case is arbitrated by one of five regional
labor courts. Appeals are permissible, the final
adjudication taking place before the Superior Labor
Court. Unlike the former labor statute, which granted
workers the right to strike but imposed so many
technical barriers that such stoppages rarely occurred,
the new code authorizes unions to call a strike at any
stage during the negotiation or arbitration of a
dispute, provided stipulated procedures are observed.
Indicative of the increased importance accorded
collective bargaining and of the possible strengthening
of the nation's trade unions, the number of operative
collective agreements rose from 40 to 124 within a year
after enactment of the revised Labor Code.
c. Labor and management (C)
Traditionally varying from paternalism, at best, to
outright exploitation, at worst, the relationships
between employers and workers !gave been modified
by the practices of foreign firms, the increased
acceptance of trade unions by government and
business, and the existence of the new, progressive
Labor Code. Although some employers remain hostile
to unions, most have come to accept the right of
workers to organize. Nonetheless, union growth has
been slow and the vast majority of workers remain
unaffiliated, in part because the unions have been
fictionalized, poorly led, and financially insolvent.
Preferring to appeal to the benevolence of the
employer when requesting higher pay and improved
benefits or working conditions, nonunion workers are
far less likely than unionized ones to exercise, or even
be cognizant of, their legal rights.
Although the feebleness of trade unionism can be
ascribed in some measure to organizational and
financial difficulties, the nation's low level of
industrialization also has been responsible for
retarding the growth and influence of organized labor.
In fact, other than the union representing workers at
the Chiriqui Land Company, a United Fruit
subsidiary and the nation's main banana producer,
the most highly organized and effective unions
represent service workers hotel, bar, and restaurant
employees in particular. Similarly, Panamanians
employed in the Canal Zone, most of them in service
occupations, make up a substantial segment of the
trade union membership. The existence of two
culturally distinct groups of workers �one speaking
Spanish and the other English �also has tended to
interfere with the emergence of any widespread feeling
of solidarity among workers. Between the two world
wars, numerous trade unions attempted to activate the
workers, but the organizations remained fragmented,
their memberships small. With the establishment of
several centrals after World War II, the labor
movement gathered some momentum and Mexican,
Cuban, and U.S. labor leaders lent their knowledge
and abilities to the purpose.
Two of the postwar labor centrals, the Confedera-
tion of Workers of the Republic of Panama (CTRP)
and the National Central of Workers of Panama
(CNTP), emerged as the strongest. As of mid -1972, the
two organizations embraced locals representing about
two fifths of all organized workers. At that time,
approximately 40500 workers, or some 7% of the
economically active population, were .inion members.
Most of the 167 union locals then in operation were
affiliated with one of 19 labor federations. Many, if
33
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

JnnoIncfn c.
not most, of the federations, however, functioned
independently of either of the two main centrals as
well as apart from the nation's third such entity, the
small Isthmian Workers' Central (CIT). A few locals
have bypassed federation membership, affiliating
directly with a central.
The CTRP, which claimed to represent about
11,200 workers as of mid -1972, has been criticized in
some circles for its close identification with U.S.
interests and institutions, a charge emanating in large
measure from the fact that the vast bulk of CTRP
unions represent Panamanian nationals er in
the Canal Zone and employees of the Chiriqui Land
Company. The membership structure changed
abruptly in 1968, when two locals of the AFL-CIO's
American Federation of State, County, and Municipal
Employees, operating within the zone, joined the
CTRP, retaining their links with the U.S. organiza-
tion. The CTRP has suffered considerably from the
resultant political factionalism, as well as from its
failure to support General Torrijos during an abortive
attempt to topple his regime in December 1969.
Affiliated with the Inter- American Regional
Organization of Workers (OBIT), the regional branch
of the International Confederation of Free Trade
Unions (ICFTU), from which it receives technical and
financial assistance, the CTRP has participated in
union leadership training programs underwritten by
the American Institute for Free Labor Development
(AIFLD), a U.S. backed entity.
The CNTP, ,a carryover from days when
Communist inftiencc within the labor movement was
much stronger, has retained its leftist orientation and
links to the World Federation of 'Trade Unions
(WFTU). As of mid -1972 it represented about 5,100
workers organized into about 16 subgroups, the major
one being the Trade Union Federation of Workers of
the Republic of Panama (FSTRP). Although it fell out
of favor with the Torrijos regime and was outlawed
briefly in 1968, the FSTRP has subsequently improved
its relations with the government to the point that
Publicity favrn;tble to the federation appears in state
controlled media and public officials attend its
congresses.
The CIT, founded in 1962, is the newest and
srnaliest of the three labor centrals; it is affiliated with
the Latin American Workers' Central (CLAT), the
regional arm of the World Confederation of Labor.
Although the organization claims a membership of
more than 14,000, as of mid -1972 its principal
constituent federations had fewer than 2,000 workers,
Inainly agricultural laborers and transportation and
retail sales workers. Spokesmen for the central and its
34
a
subgroups employ highly nationalistic, anti -U.S.
rhetoric. Among the three centrals, the CIT� through
one of its affiliates, the Confederation of Christian
Peasants (CCC) �has been the most active in the rural
sector.
Employees of the Chiriqui Land Company are
members of two of Panama's largest and strongest
union locals, both of which bear the same name-
Union of Workers of the Chiriqui Land Company
(SITRACHILCO) �but are not formally linked. One
of the two, located in Bocas del Toro, had 3,500
members in 1972; it is affiliated with the CTRP and
accounts for roughly three tenths of the central's total
membership. The second SITRACHILCO covers
banana workers in the Puerto Armuelles area and is
not affiliated with any central. Despite being
independent and smaller by about 500 members than
its counterpart in Bocas del Toro, SITRACHILCO at
Puerto Armuelles is one of the nation's most influential
unions. During a period when its secretory general has
been a close friend of General Torrijos, the union has
maintained a militant posture in labor affairs.
Management traditionally has been more highly
organized and effective in protecting and promoting
its interests than has labor. Business ownership is
concentrated among a small number of families who
have retained their control over several generations.
Because of a close interrelationship between business
and government, labor legislation predating the 1972
code generally favored the employers and gave the
working class little voice in economic affairs. Since the
advent in 1968 of a government that openly has
courted labor's support, management has been
obliged to adjust its policies toward both labor and
government. Management's attitudes also have been
influenced by the somewhat more advanced
managerial practices prevailing within the Canal 'Lone
and in foreign establishments, the latter no doubt with
a substantial stake in cultivating the good graces of the
government and in maintaining labor tranquility.
Besides observing the labor laws more closely than
domestic enterprises, the foreign firms more readily
accept the principle of collective bargaining and are
more interested in developing training programs for
their employees and in offering a wider range of fringe
benefits.
Many employers and managers belong to a number
of local businessmen's associations and chambers of
commerce, industry, or agriculture, some of which arc
unified at the motional level. The major national
organizations, in turn, are represented in the Nationaj
Council of Private Enterprise (CONEP), which also
seals government and CTRP officials. In addition to
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

r c 1.hi3G'S. Cl p;'X -s .:!rpS aq� "1
serving as a forum for labor and management,
CONEP advises the government in matters pertaining
to domestic economic and manpower affairs and on
Policies concerning foreign investment. It also has
counseled the government on administrative and tax
reforms.
5. Social insurance (U /OU)
F
In the vast majority of instances, the family rather
than the state attends to the needs of the aged,
indigent, and infirm. In most cases, too, incapacitated
persons and orphaned children are cared for by
relatives. Besides the assistance rendered by kin in time
of need, there is a tradition of mutual aid in rural
communities, where neighbors frequently assist a
family with certain farm chores or in erecting a house
or performing other tasks requiring additional hands.
Mutual cooperation and welfare assistance also are
practiced within some of the minority groups, notably
the West Indian and Chinese, which have mutual aid
societies operating within their respective com-
munities. Supplementing public health care services,
some larger enterprises provide medical and other
attention to workers and their dependents. The
Chiriqui Land Company, for example, offers medical,
dental, and pharmaceutical services from special cars
attached to the railroad trains that routinely traverse
the banana plantations; it also operates a 114 -bed
hospital at Chiriqui. Nonetheless, non government
welfare services, including those available through
humanitarian and religious organizations, are
minimal. Such groups as the Red Cross, Lions Club,
Rotary Club, and other service organizations provide
iimited assistance to the needy, mainly in Panama
City and Colon.
The national social insurance program is
administered by the CSS, which was established in
1941, under the general supervision of tilt Ministry of
Health and Social Welfare. The program provides
benefits for illness, maternity, old age, invalidity, and
death; these are financed by an employer contribution
amounting to 5% of the total payroll, a 7% deduction
in employee's wages, and a government contribution
equivalent to 8% of total covered earnings. In
addition, the government pays the CSS a subsidy
equal to 3% of the revenue collected through a tax on
alcoholic bovcrages. Residents in only 13 of the
nation's 66 districts are eligible to participate in the
social insurance program, but the covered jurisdictions
are the most heavily populated. Roughly three- fifths
of those enrolled are employed in the private sector,
including business, industry, and the professions, with
the remaining proportion consisting of public >!,,:otor
workers.
Although employers legally have been required
since 1916 to compensate their workers for the loss of
earnings arising from job related illnesses or injuries,
an enforceable, systematic form of workmen's
compensation did not exist prior to 1970. In that vear
it was decreed that employers participating in the
social insurance system would have to obtain
workmen's compensation coverage through private
insurance carriers, a measure that was reinforced by
the 1972 Labor Code. Benefits under the coverage,
which is funded solely by the employer based on the
degree of risk involved in the workplace, were
stipulated in the 1970 decree and differ from those
provided under the regular health coverage prov;
of the social insurance program. A total of 32,797
workmen's compensation claims were filed in 1971.
Labor inspectors and the labor courts oversee
compliance and assist workers in making claims or
lodging appeals. The requirement to carry workmen's
compensation coverage applies to industrial and
commercial firms having five or more employees and
to mechanized agricultural enterprises employing 10
or more persons. In accordance with the 1970 decree,
however, domestic workers, the self employed, and
laborers at unmechanized agricultural enterprises are
to become eligible for such coverage upon completion
of the requisite actuarial studies.
Domestic workers, temporary employees, family
workers, and self- employed persons normally are not
covered by the social insurance program, but they may
join it voluntarily by paying both the employer's and
the employee's contributions. Voluntary enrollment,
however, has been nominal. In 1971, 187,349 workers,
or 38.4% of the economically active population,
participated in the program, and 183,143 persons were
eligible for dependent's benefits. An additional 16,064
pensioners contributed a small portion of their
annuities for coverage under the health benefits
Provision. Thus, a total of 386,556 persons, or over
one fourth of the total population, were insured in
some form or other under the program.
Insured men may retire at age 60 and women at 55
regardless of their employment status at the time of
retirement but they must have contributed to the fund
for at least 180 months. Monthly retirement stipends
range from B50 to B500, depending on the
individual's past earnings. Funeral benefits of 13100
are paid to the insured person's survivors. Widows
receive roughly half of the pensioner's stipend and
children tinder age 18 get 20% in survivor's benefits.
Maternity benefits are available both to insured
women and to wives of insured men. Illness benefits
include payment for medical, surgical, and dental
care, and for medications and hospitalization. Wives
35
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

rr. ir- a J77t' Yi/ IrIrL� 1r1'_ 7Lr wrw 1Jrrr Rrlrltrll _IrIrIrYJrlrlr `Yrlrl
j 1
i
and children of the insured also receive medical and
surgical benefits but are not entitled to hospitaliza-
tion. In 1971, 14,347 persons received benefits under
the maternity, temporary incapacity, or death
provisions. The CSS operates two general hospitals,
one in Chiriqui and the other in Panama City, as well
as a network of outpatient health centers for the
insured and their dependents.
The CSS has been the object of criticism for
allegedly being staffed by an inordinately large
number of political appointees who accept kickbacks
on loans, fail to process claims c. to issue benefits
promptly, and rarely report to work. After its director
general was jailed on charges of malfeasance following
the 1968 coup, the CSS underwent an extensive
reorganization designed, among other things, to
decentralize its services and make the agency more
responsive to the needs of the insured.
E. Religion (U /OU)
1. Roman Catholicism
About 93% of all Panamanians claim to be Roman
Catholic, but the proportion of practicing Catholics
generally is considered among the lowest in Latin
America. In urban areas, churches and clergy are
accessible, but indifference to formal religion and a
pervasive secularism are reflected in poorly attended
services. Men generally regard the church as an
institution for women and children. Boys tend to
neglect church attendance as they approach
manhood, but girls are encouraged to continue
practicing their faith and to participate in church
sponsored activities. The exposure to non Catholic
minority groups and to Canal lone residents of oth�
faiths has weakened the influence of Catholicism
among urban dwellers. Rural Panamanians, although
more conservative in outlook than their urban
counterparts, often have little, if any, contact with the
formal aspects of Catholicism, their knowledge of
catechism and doctrine deriving hugely from family
leaching or hearsay. Many villages are visited only
occasionally by a priest; thus, rural people rarely
attend church, hear Mass, go to confession, or receive
the last rites. however, practically all rural people are
baptized, confirmed if they can afford the cost, arid�
if formally wed married in the church. In addition,
they often participate in processions and pilgrimages
on religious feast days.
Although the indigenous religions virtually have
disappeared, the Indians by arid large have been
unreceptive to Christianity, resisting attempts to
36
convert them by either Catholic or Protestant
missionaries. Catholic missions were established
among some Indian groups during the early colonial
period, but apparently failed to make a lasting
impact, although remnants of their teaching can be
identified today.
Catholicism was first introduced into the area that is
now Panama during the early 16th century by
Franciscan missionaries who accompanied the Spanish
explorers. During the colonial period, church and
crown were closely identified in a relationship of
mutual support, and Panama became the site of the
first diocese established on the American mainland.
Following indepen;knee from Spain, when Panama
was a part of Colombia, relations between church and
state continued to be close. Although a concordat
separating church and state was issued in 1887, the
document recognized the sovereignty of the Holy See
in the appointment of bishops and made religious
instruction compulsory at all levels of education.
Because Panama was an isolated and neglected
frontier region of Colombia with few resident clergy,
however, the church's involvement in secular affairs
was slight.
After Panama's secession from Colombia in 1903,
the new country's first constitution set forth the basic
tenets, liberal by Latin American standards, which
have governed church -state relations in contemporary
times. Those tenets have been reiterated by the
Constitution of 1972, which recognizes Roman
Catholicism as the faith of the majority but guarantees
freedom of worship for all individuals. There is no
concordat between Panama and the Vatican, but the
two maintain diplomatic relations. The government
has no role in the selection of ecclesiastical officers,
and members of the clergy in turn are not permitted to
hold public office. Although the government does not
contribute directly to the support of the church,
assistance is given to Catholic missions among the
Indians and to certain church administered educa-
tional and welfare institutions. Religious instruction is
allowed in public schools, but attendance is not
obligatory. Both religious and civil marriages are legal
and divorce is permitted. A highly controversial
constitutional provision introduced in the 1972 charter
stipulates that only native -born Panamanians may
hold positions in the church hierarchy. If enforced,
this provision would require the removal of three of
Panama's seven bishops, but evidently it will not be
applied retroactively to prelates appointed before
1972. In a related measure, it was decreed in 1971 that
all visas for foreign religious personnel mast be
approved by the Ministry of Foreign Affairs. Both
1

777
si r.
i
measures appear to have been designed to restrict the
church's involvement in the country's politics.
Following the 1968 coup, relations between the
church and the Torrijos regime were cool, but
improvement occurred as the popularity of the
government increased and its interest in socioeco-
nomic reform became evident. Church officials,
nevertheless, have repeatedly resisted government
efforts to link the church with the regime,
undoubtedly because of the latter's military makeup
and undemocratic origins. Government officials, in
turn, have been concerned that church sponsored
social action programs could be used to promote
antigovernment sentiment, a fear not without
foundation. Prior to the 1968 elections, Archbishop
(1964 -68) Tomas Clavel, ranking prelate at the time,
was instrumental in forming a movement favoring
monitoring the elections to insure against irregulari-
ties. After the military coup, he resigned under pressiue
from the government. Since then, priests have been
censured, jailed, and, in some cases, deported for
criticizing the government. In 1970, the Spanish -born
manager of Radio Hogar, a Jesuit operated station in
Panama City, was exiled for broadcasting antigovern-
ment statements. The most severe strain in relations
between church and state, however, occurred in mid
1971, when Father Hector Gallegos, a popular
Colombian -born priest noted for his social activism
and opposition to the regime, disappeared. it was
widely believed that the National Guard kidnapped
and murdered the priest as a warning against further
church involvement in politics. Although the church
commissioned its own investigation and publicized the
case extensively, responsibility was never affixed and
the incident continues to impede cooperation between
the church and the government.
Despite its close relationship with the people, the
church traditionally has been weak as a social and
political force. However, coinciding with a period of
change in Roman Catholicism throughout much of
the world, during the 1960's it began to exert an
increased influence in national affairs. The present
archbishop, Marcos McGrath, a Panamanian citizen
of U.S. parentage, is ranked among the more
p�ogressive prelates in Latin America. Prior to his
elevation to the archbishopric early in 1969, McGrath
was bishop of the Veraguas diocese, where he
launched a wide- ranging social action program among
rural laborers. The Center for Study, Promotion, and
Social Assistance CEPAS) coordinates the program
and sponsors research on social problerns with the help
of national and external agencies, including the
United Nations, All), aril the German Bishops' Fund.
One of the major accomplishments of CEPAS has
been the formation of cooperatives under a
multiservice umbrella organization called the John
XXIII Cooperative. It also operates the John XXIII
Rural Training Center, a facility for the formation of
rural leaders, and a school by radio giving courses in
improved farming techniques and community
development.
In urban areas, the most significant church
sponsored social action organization is the Movement
for National Unification, Development, and
Orientation MUNDO), which operates in the low
income residential district of San Miguelito, adjacent
to Panama City. Founded by U.S. priests assigned to
the area, MUNDO sponsors courses designed to
motivate community members to organize for self
improvement. Its activities as a pressure group for
civic, political, and social action have at times
generated considerable controversy, particularly when
those activities have conflicted with policies of the
military government. By 1970, however, MUNDO
organizers, including the U.S. priests, had resolved
many of their differences with the regime and
achieved a considerable degree of cooperation with
the government. The rapprochement was set back by
the disappearance of Father Gallegos during the
following year.
For administrative purposes, the Catholic Church in
Panama is divided into the archdiocese of Panama,
the dioceses of Chitre, David, and Veraguas, the
prelature of Bocas del Toro, and the apostolic vicarate
of Darien. In 1972 there were 100 parishes in the
country, many of them without a resident priest. The
relatively small number of priests, 253 in 1972,
resulted in a ratio of one priest per 6,023 inhabitants;
because of the scarcity of priests in the countryside, the
ratio in rural areas probably was double that in the
cities. More than two thirds of Panama's priests
belong to religious orders, including the Jesuits,
Augustinians, Salesians, Claretians, Carmelites,
Paulists, and Christian Brothers. The number of priests
has remained essentially unchanged since the mid
1960's, mainly because few Panamanian nationals
enter the priesthood. Since the closing of Panama's
only seminary in the late 1960's because of a shortage
of students, Panamanian priests have been trained
abroad, mostly in Colombia and other nearby
countries. In addition to the priests, there were 211
monks and 304 nuns working in Panama in 1972. The
women's orders include Maryknollers, Franciscans,
Sisters of Charity, Bethlehcmites, and Sisters of St.
Joseph. Monks generally teach in the schools; the nuns
teach also and are active in nursing,
37
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

W
a V
I
f
i~
Fewer than one -fifth of the priests are native
Panamanians. Almost half of the foreign priests are
Spaniards; the rest are from the United States, Italy,
the Netherlands, Colombia, and other countries in
Latin America. In the past, the church's weakness was
ascribed to the heavily foreign composition of the
clergy. More recently, however, the foreign clergymen,
and liberal U.S, priests in particular, have been highly
effective in promoting a more dynamic image of the
church. The Spanish contingent also includes a
number of progressive priests.
Lay persons have not been particularly active in
church affairs, although participation has increased
significantly since the mid- 1960's. In view of the
shortage of clergymen, some progressive priests have
begun to emphasize the importance of lay
involvement and to train lay catechists, who carry out
some of the duties normally done by priests. In many
parishes, members of the congregation are asked to
read prayers at mass. In addition to MUNDO, the
church's lay organizations include the Catholic
Family Movement, which promotes family unity; the
Serra Club, which encourages religious vocations;
Catholic Action, which attempts to engender the
observance of Christian principles in everyday life;
and the Federation of Catholic Women, active in
charity work. These and similar organizations were
strengthened appreciably by the reform movements of
the past decade. Many lay persons unaffiliated with
such groups have participated in cursillos, short
courses in leadership training for social development
which are given by the Center for Social Training
(CCS).
The church is involved in a variety of educational
and welfare activities. These include the operation of
about 40 schools, it university, Indian missions,
hospitals, homes for the aged, and orphanages. The
schools, generally considered superior to the public
ones, are supported by tuition fees and cater to the
middle and upper classes. The church also publishes
Dialogo Social, a monthly magazine devoted to social
issues.
2. Protestantism and other faiths
Among the Latin American countries, Panama has
received relatively little attention from Protestant
missionaries. Protestantism is strongest among the
Negroes of West Indian descent and is largely
confined to urban residents. Increasingly, however,
English- speaking Negroes have embraced Catholi-
cism, conversion to that faith often being the final step
in their assimilation into the mainstream of society.
Most Protestant activity in Panama is ,l, ..,ored by
'38
mission boards and societies headquartered in :he
United States; about 15 denominations are
represented. The total Protestant community numbers
nearly 80,000, but fewer than 30,000 are com-
municant church members. Baptists, Episcopalians,
Seventh -day Adventists, and followers of the
International Church of the Four Square Gospel
each with over 10,000 adherents �are the largest
groups. Other denominations represented include the
Methodist, Lutheran, Assembly of God, Christian
Science, Church of God, and Jehovah's Witness. Of
the arpinximately 200 ordained Protestant clergymen
in Panaua, almost half are foreigners, many of them
from the United States.
Some coordination of Protestant activities takes
place, through the Isthmian Religious Workers'
Federation, an organization which includes represent-
atives of most of the denominations. Although the
various groups tend to concentrate their resources in
specific regions, there is no formal agreement to do so,
as is the case elsewhere in Latin America. Missionary
work has been confined mainly to urban centers and
to districts inhabited by Indians. The Episcopal
Church has been especially active among the English
speaking Negroes residing near the Canal Zone. The
International Church of the Four Square Gospel works
among the Choco Indians, the Central American
Mission among the Curia, and the Seventh -day
Adventists among the Guaymi (Figure 30). Protestant
missionaries have made little attempt to convert rural
mestizos. There are several Protestant schools,
including three Bible instruction schools, and a small
number of welfare institutions.
Although the Catholic Church was at one time
openly hostile toward proselytizing by Protestants, the
antipathy had by and large disappeared by the close
of the 1960's. In that decade, Catholic and Protestant
leaders actively sought to improve relations through
joint instruction and social action programs. As a
result, most Catholics have come to accept Protestant
missionary activities, which many credit with
contributing to the revitalization of C atholicism.
Archbishop McGrath, like his predecessor, has
promoted ecumenism. Protestants, in fact, actively
lobbied for the retention of Archbishop Clavel in 1968.
Lstimated to number 2,500 to 3,000 in 1972, the
Jewish community is organized into three congrega-
tions in Panama City and one in Colon. A Jewish
Central Committee, composed of the community's
leaders and headed by a layman, coordinates Jewish
activities, which include the operation of the Albert
Einstein School reputed to be the best secondary
institution in the country �and local and national

If is I-WIN I 4 ff C
7 r 7 7 7
E"'l
YC
pr h
i C
1
i
charities. Because most of its members strive to avoid
controversy, th- community is far less actively
involved in social issues than are some of the Catholic
lay groups. Nevertheless, some Jewish businessmen
have achieved social prominence and rank among the
country's leading political figures.
Buddhism, Hinduism, and Islam are practiced by
some of the minority peoples who have emigrated to
Panama. Even cumulatively, however, the number of
adherents of those faiths probably is less than 2,500.
F. Education (U /OU)
Although Panama ranks high among Latin
American countries in the educational level of its
population, much remains to be done in providing an
equitable distribution of schools and teachers and in
adapting curricula to local and national needs. The
government has prepared a national education plan
covering the period 1969 -83; it calls for gradual
modifications in the system and sets overall
development goals. In September 1970 an educational
reform commission was charged with overhauling the
system in order to bring it into line with the plan's
goals. Operating independently of the Ministry of
Education, however, the commission came into
conflict with ministry personnel who also had
undertaken a reassessment of the system. Additionally,
proposals from both entities met with criticism from
teachers and students. As a consequence, it appears
that educational reform largely will be limited to
expanding and upgrading vocational instruction and
to improving equipment, textbooks, and facilities.
According to the Constitution, primary education is
free and compulsory for children aged 7 to 15. The
school system is administered by the Ministry of
Education, which consistently receives the highest
single allocation in the national budget, ranging from
about one -fifth of the total in the early 1960's to about
one- fourth in the early 1970's. The actual amount of
expenditures more than doubled between 1963 and
1971, reaching almost B60 million in the latter year.
Almost half of that amount was for primary
education. Schools also receive funds from the
Municipal Boards of Education, which legally are
entitled to one -fifth cf all municipal revenues.
Additional aid is rendered by parents' associations,
which carry out fund raising drives, donate school
materials, and even participate in building additions
to existing schools or in constructing new facilities
under community self -help programs. The University
of Panama, though administratively autonomous, is
subject to regulatory statutes and decrees of the
government, which appoints its rector. The institution
receives approximately 3% of the national budget, or
about B5.5 million in 1971. In addition, the university
receives loans, grants, and technical assistance from
AID, IDB, the World Bank, and other sources.
Revenue collected in accordance with the 1971
educational insurance law and administered by
IFARH U has become an important source of funds for
student scholarships and loans as well as for
supporting a variety of special training programs.
39
j
4,
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
FIGURE 30. Seventh -day Adventist
church in Guaymi Indian area (C)

r
31 qr
J,;
i
l
I
F
nom.:?
The educational system encompass 2 years of
preprimary schooling, a 6 -year primary level, and a 6-
year secondary program divided into two cycles of
equal length. The first cycle of secondary education
consists of a general;zed curriculum, after which the
student may specialize in academic studies, teacher
training, or one of several technical or vocational
fields. Rather than pursuing the general curriculum,
however, primary school graduates may enroll in
technical or vocational courses, which are te
and last from 1 to 3 years, depending on the specialty.
Higher studies are available at two universities.
Special educational facilities are maintained for the
blind, deaf, and mentally retarded, and an extensive
adult education program, including literacy
instruction and job training, also is availabL_
The literacy rate for the population of age 10 and
over in 1971 (80 was among the highest in Latin
America and represented an improvement by five
percentage points over that recorded 10 years earlier.
Reflecting the prevalence of illiteracy among Indians,
the literacy rate for non Indians was 82% in 1970.
Despite the improvement made during the decade,
because of rapid population growth there were some
17,000 more illiterate persons in 1970 than in 1960. In
both years the provinces of Veraguas, Darien, Herrera,
and Los Santos had the lowest literacy levels. The
highest literacy rate in 1971, 92 was registered in
Panama Province. Recent data on the level of
educational attainment are unavailable, but on a
national basis it is estimated to be at least 1 year
higher than the 1960 average of 4.4 years of formal
schooling.
The rate of retention at the primary level compares
favorably with that in the more advanced Latin
American states. In 1971, 54% of the pupils who had
entered primary school 6 years earlier graduated from
the sixth grade; this compares with a retention rate of
44% for the 1957 -62 period. However, far fewer than
one -half of rural children who enter primary school
complete six grades, compared to about four fifths of
urban children. Many youngsters, especially in rural
districts, drop out between the first and second grades
in order to help with farm chores or to supplement
family income through outside labor. Others simply
are unable to complete a primary education because
many rural schools do not offer the full six grades.
More than seven tenths of all primary school
graduates enter secondary school, but a large number
of these are forced to repeat one or more courses each
year and eventually drop out without obtaining u
diploma. Only about half the students who compicte
the first cycle of secondary schooling enter to the
40
second cycle. Precise data are unavailable on the
proportion of secondary students who graduate, but of
those who do, about two fifths enter a university; most
of those who go on to higher studies pursue the
academic program at the secondary level.
Although the primary school age group normally
comprises children 7 to 12 years old, many youngsters
enroll at age 6 and others remain at that level until
they reach age 18. In 1970, almost one -half of all
primary students were older than the nominal age for
their grade level, and 8% were younger. The Ministry
of Education has initiated a more flexible grade
promotion policy in order to correct this situation,
caused in large measure by the fact that each year
about one -fifth of all primary students are required to
repeat their grades.
In 1970, more than 73% of all primary school -age
children attended school, a figure surpassed in Latin
America only by Argentina, Chile, Uruguay, and
Peru. Much improvement is needed at the secondary
level, however, where some two- fifths of all youngsters
in the appropriate age group were enrolled that year;
nevertheless, the proportion was double that registered
in 1950. Boys outnumbered girls at the primary level
by 52% to 48% of the total enrollment; at the
secondary level, however, the proportions were
reversed, as girls outnumbered boys in teacher training
and in vocational courses, but not in the academic
program. Student enrollment in 1971 was as follows:
PUBLIC PRIVATE. TOTAL
Preprimary 3,618 4,146 7,764
Primary 273,324 14,241 287,565
Secondary
First cycle 43,064 21,000 64,064
Second cycle 17,288 5,443 22,731
Among pupils enrolled in the first cycle of secondary
school, 27.6% were in technical or vocational training
in 1971. The distribution of those in the second cycle
was as follows: academic studies, 44.8 technical or
vocational courses, 42.2 and teacher training,
13.0
The proportion of students enrolled in private
schools is considerably smaller in Panama than in most
Latin American countries, but private schools
generally offer a higher quality education than do
public schools. Many graduates of the more
prestigious private secondary schools in the capital
pursue their higher studies abroad.
In 1971 there were 1,971 primary schools operating
in Panama, only 65 of which were private. More than
seven tenths of al: primary schools had the complete
six grades. Even in the countryside, location of about
90% of primary facilities, more than two thirds of the
I
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
second cycle. Precise data are unavailable on the
proportion of secondary students who graduate, but of
those who do, about two fifths enter a university; most
of those who go on to higher studies pursue the
academic program at the secondary level.
Although the primary school age group normally
comprises children 7 to 12 years old, many youngsters
enroll at age 6 and others remain at that level until
they reach age 18. In 1970, almost one -half of all
primary students were older than the nominal age for
their grade level, and 8% were younger. The Ministry
of Education has initiated a more flexible grade
promotion policy in order to correct this situation,
caused in large measure by the fact that each year
about one -fifth of all primary students are required to
repeat their grades.
In 1970, more than 73% of all primary school -age
children attended school, a figure surpassed in Latin
America only by Argentina, Chile, Uruguay, and
Peru. Much improvement is needed at the secondary
level, however, where some two- fifths of all youngsters
in the appropriate age group were enrolled that year;
nevertheless, the proportion was double that registered
in 1950. Boys outnumbered girls at the primary level
by 52% to 48% of the total enrollment; at the
secondary level, however, the proportions were
reversed, as girls outnumbered boys in teacher training
and in vocational courses, but not in the academic
program. Student enrollment in 1971 was as follows:
PUBLIC PRIVATE. TOTAL
Preprimary 3,618 4,146 7,764
Primary 273,324 14,241 287,565
Secondary
First cycle 43,064 21,000 64,064
Second cycle 17,288 5,443 22,731
Among pupils enrolled in the first cycle of secondary
school, 27.6% were in technical or vocational training
in 1971. The distribution of those in the second cycle
was as follows: academic studies, 44.8 technical or
vocational courses, 42.2 and teacher training,
13.0
The proportion of students enrolled in private
schools is considerably smaller in Panama than in most
Latin American countries, but private schools
generally offer a higher quality education than do
public schools. Many graduates of the more
prestigious private secondary schools in the capital
pursue their higher studies abroad.
In 1971 there were 1,971 primary schools operating
in Panama, only 65 of which were private. More than
seven tenths of al: primary schools had the complete
six grades. Even in the countryside, location of about
90% of primary facilities, more than two thirds of the
I
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

I
K.
i
4:5 pp,- EwaM stt
C
schools were complete. When new, rural primary
schools are inaugurated, they generally are
incomplete, an additional grade being started yearly
until a fill offering is available. High priority has been
assigned to school construction as a means of
increasing educational opportunity, and gains have
been made in the ratio of classrooms to school -age
children. Nevertheless, the dearth of secondary schools
in rural areas is a pressing problem. Most rural
children who graduate from primary school are faced
with the prospect of commuting to a nearby town on a
weekly basis in order to attend secondary school. For
many, the cost of room and board is prohibitive.
Because such secondary facilities often are over-
crowded, moreover, some rural families make
considerable sacrifices to send their children to the
sixth grade of primary school in the nearest town, as
local primary school graduates are accorded
preference for admission to secondar, rohool. Schools
at both levels are overcrowded and many lack
adequate supplies and teaching materials. Most rural
schools combine as many as six grades in a single
classroom.
Attitudes concerning the desirability of formal
education vary according to locality, but in general
the residents of most communities want their children
at least to complete primary school. In response to
complaints from .many rural parents that the system
has not responded to the needs of farming
communities, the Ministry of Education has expanded
its agricultural instruction at the primary level and
aided in the establishment of demonstration gardens.
A portion of the revenue collected under the
educational insurance law is earmarked for the
establishment of rural boarding schools specializing in
agricultural training.
Although almost 2,000 new teaching positions were
created in 1971, the teacher deficit was estimated to be
about 3,000. Including new appointees, but excluding
vocational training instructors in the first cycle of
secondary school (for whom data are unavailable), the
distribution of teachers in 1971 was as follows:
Because of low pay and substandard working
conditions, teaching is less attractive than other
careers open to secondary school graduates. Although
the field is fairly competitive in the main cities, rural
schools often must settle for !ess qualified instructors,
as few teachers willingly accept positions in outlying
areas. Those who do so generally commute from a
nearby town and thus may not develop an interest in
community affairs.
In theory, primary school teachers may be certified
only upon graduation from a secondary -level normal
school. While almost three fourths of the nation's
primary teachers were secondary school graduates and
about 5% had university degrees in 1971, many of
them had trained in fields other than teaching. Among
the remainder lacking a secondary diploma of any
kind, most taught in rural schools. Technically,
secondary school teachers are required to have a
higher degree in education. In practice, however, only
slightly more than half of all secondary school teachers
serving in 1971 possessed the requisite degree �most of
these from the University of Panama's School of
Education �and more than one -third had no degree
at all, as shown by the following percentage
distribution of teachers in publ. and private facilities:
UNIVERSITY DEGREE
EDUCATION OTHER NO DEGREE.
Public 54 10
Private 44 21 35
All schools 51 14 35
Panama has two institutions of higher learning, the
state- supported University of Panama, founded in
1935, and the University of Santa Maria la Antigua, a
Roman Catholic facility established in 1965. Both are
located in the capital, and the former institution has
branches in Colon, Chitre, David, Penonome, and
Santiago. In 1971 the combined enrollment of the
diversities was 15,074 students, 14,467 of whom
attended the University of Panama. Approximately
11 of the national university's students attended the
branch facilities. Students enrolled at the main
campus were distributed by faculty as follows
NUNMER PERCENT
Public Administration 5,679 44
Philosophy, Letters, and Education 2,742 21.3
Natural Science and Pharmacy 2,175 169
Law and Political Science 657 5.1
Engineering 546 4.3
Architecture
451 3.5
Agriculture
Tiedicine 340 2.7
Dentistry 153 1.2
106 0,8
Total 12,849 100.0
With a pupil to teacher ratio of 32:1, urban primary
C
were more overcrowded than rural ones, where
the corresponding ratio was 27:1.
Ell
y
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
PUBLIC
PRIVATE
TOTAL
PUPILS PER
TEACHER
Preprimary
111
146
257
30
Primary
9,569
435
10,004
29
Secondary
First cycle
1,922
457
2,379
19
Second cycle
1,127
954
2,081
11
With a pupil to teacher ratio of 32:1, urban primary
C
were more overcrowded than rural ones, where
the corresponding ratio was 27:1.
Ell
y
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

Nearly half of the 556 students who graduated from
the university in 1971 studied in the Faculty of
Philosophy, Leiters, and Education.
1 he University of Panama has problems that are
common to institutions of higher learning elsewhere in
Latin America: a high student attrition rate,
antiquated teaching methods, insufficient classroom
space and equipment, a low percentage of full -time
instructors, and inadequate preparation in students of
higher levels. About two thirds of the 540 professors
employed at the university in 1971 worked on a part
time basis because salaries are low and most must hold
more than one job; partly because of this, absenteeism
among them is high. Nevertheless, the faculty, which
consists almost exclusively of Panamanians, is ranked
as the best in Central America. Since most students are
from the lower and middle sectors of society and must
work in order to pay for their tuition and sustenance,
part -time students outnumber full -time students.
Thus, although the nominal length of degree programs
ranges from 4 to 7 years, part -time students may take
as long as 10 years to earn a degree. Only about one
tenth of all students who enroll eventually receive a
degree, however. In order to reduce the attrition rate
and enhance the employment opportunities of
partially trained students, 2 -year certification
programs in surveying and health care were
introduced recently, and the university plans to offer
abbreviated programs in other fields.
The University of Santa Maria la Antigua was
established in 1965 through contributions from the
business community and the Catholic Church. The
latter administers the institution, which in 1973 had
three faculties offering 5 -year programs in a variety of
disciplines. The first graduating class (1970) consisted
of 34 persons. In 1971 the university's enrollment,
more than half of it consisting of women, ,vas
distributed by faculty as follows:
NumnER PERCE NT
Law and Public Administration 416 68.5
Science 144 23.7
Philosophy, Letters, and Education 47 7.8
Total 607 100.0
Under the government's 1969 -83 education plan,
the upgrading of technical and vocational training
i
i
i
FIGURE 31. Don Bosco Technical Institute (C)
42
a
/is 1
/f F
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
.'a�
t R 1 y 1 a; M 'I y 'i R I y
t..
I ya. Y, i.f
'y lam'. t r w
V A .VJ 'k[ \2
x t,?. 4 L :r
FIGURE 31. Don Bosco Technical Institute (C)
42
a
/is 1
/f F
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

on
�M1
t;
programs is a major objective. Offered at the
secondary level, such training has centered on five
specialized fields: agricultural science, commercial
science, industrial arts, domestic arts, and electronic
equipment repair. The Don Bosco Technical Institute
(Figure 31), located in Panama City, is considered the
best institution of its kind in the country and offers a
wide range of courses. Similarly, the National
Agricultural School at Divisa, Herrera Province,
generally is regarded as the best agricultural training
center in Central America; 40 students, or more than
one -half of all of Panama's graduates in that specialty,
obtained their secondary diplomas from the school in
1971.
Two distinct types of adult education exist. The first
of these, a three -stage program, is designed for adults
having little or no formal schooling and is structured
in a manner that permits the student to set the pace of
instruction. Upon successful completion of the first
stage, the student is considered literate, and
graduation from the third stage entitles the student to
a primary school equivalency certificate. The second
type of adult training program offers a variety of
vocational courses, including tailoring, dressmaking,
shoe repairing, hairstyling, and cooking. In rural
districts, such skills as potterymaking, leathertooling,
weaving, and carpentry also are taught. A primary
school diploma or equivalency certificate generally is
required for admission to a vocational training
program. In 1971 the nation's 315 adult education
schools enrolled 15,9C3 persons, over three fifths of
them in the literacy and primary education program.
During the same year, an additional 1,704 individuals
were enrolled in 14 schools for the blind, deaf, and
mentally retarded.
G. Cultural expression (U /OU)
In terms of original artistry and thought, Panama's
contribution to the world has been negligible. Varied
influences, predominantly foreign, not only are
evident in the nation's artistic and intellectual works,
but in its folk culture as well. Among the various
cultural heritages, that of the Indian perhaps is the
weakest, its manifestations being restricted in the main
o handicrafts (Figure 32). Some contemporary
painters and sculptors, however, have incorporated
pre Columbian motifs. The African heritage,
incorporating West Indian, Spanish, and U.S.
modifications, is evidenced distinctly in music and
dance. Because of the close relationship between the
United States and Panama during the present century,
many Panamanians, including members of the
intellectual and artistic communities, have come into
contact with U.S. art, literature, m,rsic, and
cinematography. Despite these inputs, however, the
Hispanic legacy is visible in much, if not most, of what
is produced by the nation's artists and intellectuals.
Only recently has there been a conscious effort at
developing uniquely national approaches in cultural
expression.
The pre Columbian peoples who inhabited Panama
at the time of Spanish discover had developed the
production of gold objects, pottery, and stone
sculpture to a high level. As evidenced by artifacts
found in the area, the inhabitants of the isthmus, a
link between the major indigenous civilizations of
Central and South America, were influenced by
neighboring peoples. Artistic production apparently
was at its high point during the two centuries
preceding the Spanish conquest, but declined carly in
the colonial period. Pottery vessels from the region
usually were decorated with complex motifs, featuring
circular bands or stylized figures in black and red on a
cream colored background. Gold was worked either in
its pure form or alloyed with copper. Small
anthropomorphic (Figure 33) and stylized animal -like
figures predominated. Exquisitely detailed filigree
work and gold jewelry set with precious stones,
together with harnmered -gold helmets, breastplates,
and shields, have been unearthed in Cocle. Although
less distinguished than the gold objects and pottery
vessels, stone carvings and anthropomorphic
sculptures also testify to the artistic ability of the pre
Columbian civilizations.
During the colonial period, Spanish influence
predominated in art and architecture. The original
colonial capital was virtually destroyed by pirates in
1671, with only the cathedral tower remaining (Figure
34). A new cathedral, built between 1690 and 1762,
combines the baroque and renaissance styles and is
considered one of the finest examples of colonial
architecture in Central America (Figure 35). Other
fine colonial buildings include churches in Panama
City and several interior towns (Figure 36). Little
remains of the colonial buildings in the once thriving
port town of Portobelo, on the Caribbean, but several
ruins attest to the splendor of commercial edifices and
churches of the time. After an interlude of French
influence late in the 19th century, most evident in the
balconies and grillwork of the post office built for the
Panama Canal Company, Panamanian architects
turned to U.S. models. Not until after World War II
(lid they begin to develop original styles, adapting
features of contemporary Western architecture to the
tropical environment and emphasizing the combina-
43
r
f
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

FIGURE 32. Choco Indian basketware (U /OU)
I
i
tion of artistic and functional designs. The School of
Architecture of the University of Panama has been in
the vanguard of the movement to develop this
national style, perhaps best exemplified by the
buildings of the university itself (Figure 37). The
architects, including Rene Brenes, Guillermo de Roux,
and Ricardo Bermudez, planned the campus to take
advantage of the contours of the land and made
extensive use of sun screens, covered walkways, and
natural lighting. Similar emphasis on functional
designs that harmonize with their surroundings are
evident in various modern public 1 in the
capital (Figure 38).
Painting during the colonial period was almost
entirely of a religious nature, with local artists
generally influenced by the famous Quito School, in
present -day Ecuador. Epifanio Garay (1849 1903), a
Colombian who studied in Europe before settling in
Panama, where he excelled in portrait painting and
still life, exerted the first major influence over
Panamanian painting. Under Roberto Lewis (1874-
1849) the National School of Painting produced
numerous artists specializing in landscapes, murals,
and portraits. New trends (lid not emerge until about
World War IL Humberto Ivaldi (1909 -44), a student
of Lewis', led the way fora new generation of painters,
some of them, caught up in the worldwide abstract
movement, training their hacks on the local scene.
FIGURE 33. Twin warrior pendant from Chiriqui.
Advanced gold casting methods enabled Indian artisans
to achieve exquisite detail in gold objects. (U /OU)
Others, however, continued to capture aspects of
Panamanian life while experimenting with new
techniques. Guillermo Trujillo, for example, adapted
elements of Central American Indian art to an
abstract modernist style. He also produced many
watercolor landscapes utilizing experimental color
techniques. Other contemporary artists have
incorporated calligraphy into abstract painting. Julio
'Lachrisson, internat :nally known for his etchings,
shows the influence of Goya (Figure 39). Other
Panamanian artists recognized abroad include Alberto
Dutary, Alfredo Sinclair, and Nessim Bassan. Thev
and many of their contemporaries are graduates of the
National School of Plastic Arts, and some have studied
abroad. There has been little sculpture of note in
Panama, although much sculpting has been done.
Roberto Lewis, the painter, probably was Panama's
most accomplished sculptor. Early in the present
century, he produced numerous busts of prominent
figures.
During colonial times Panama produced little, in the
way of literature, largely because of the elite's
preoccupation with commerce and the absence during
much of the period of a university which might have
served as a center for intellectual and artistic
expression. In the l8th century, writers of the romantic
school produced numerous commentaries on
Panamanian society. Outstanding among these were
ti
y
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

I
i
i
i
i
i
i
a
I
i
f
n,
AP
t
FIGURE 34. Ruins of the old cathedral
of Panama City destroyed by pirates
in 1671. Materials from the ruins were
utilized in the construction of the
new cathedral. (C)
A
Manuel Jose de Ayala (1.726 1805), a leading jurist
1311
who recorded contemporary events; Sebastian Lopez
Ruiz (1741- 1823), a physician and naturalist who
wrote sociological monographs; and Victor de la
Guardia y Ayala (1772 1$24), who wrote the countrv's
N
Y
4t Yn
Political liter ature, much of it written by the ardent
nationalist, Justo Arosernena (1817 -96). During the
le
latter half of the 19th century, the first generation of
y
FIGURE 34. Ruins of the old cathedral
of Panama City destroyed by pirates
in 1671. Materials from the ruins were
utilized in the construction of the
new cathedral. (C)
A
Manuel Jose de Ayala (1.726 1805), a leading jurist
1311
who recorded contemporary events; Sebastian Lopez
Ruiz (1741- 1823), a physician and naturalist who
wrote sociological monographs; and Victor de la
Guardia y Ayala (1772 1$24), who wrote the countrv's
first dramatic work, La polilica del mmulo (The
Politics of the World). The arrival of the printing press
in Panama during 1820 gave rise to a voluminous
Political liter ature, much of it written by the ardent
nationalist, Justo Arosernena (1817 -96). During the
le
latter half of the 19th century, the first generation of
y
Panamanian poets began writing. Their work showed
the influence of romanticism, but was colored by a
strong nationalistic sentiment directed first at
Colombia and, following independence, at the United
States. In her well -known poem "Al Cerro Ancon" (To
Ancon Ifill), the poetess Amelia Denis de Icaza (183the 6-
19 10) was among the first to p ex ress disa pproval of
",r
U.S. presence. The works of Panama's national poet,
a
13icardo Miro, (1883 -1940) also are replete with
nationalistic sentiment. Best known for his poem
"Patna,"
Miro is read today by Panamanian
schoolchildren, and his work has circulated elsewhere
in Latin America.,.,
Ic
Essays, short stories, and poetry t:ominatcd literary
output at about midccntury. Plenilunio (lull Moon),
a surrealistic novel by Rogelio Sinan (b. 1904),
FIGURE 36. Basilica of Nata de los Caballeros,
was one
oldest church standing in Latin America (U /OU)
45
FIGURE 35. Panama City cathedral.
Begun in 1690, the cathedral combines
baroque and renaissance styles. (U /OU)

a 1 210 �rn T &5e
FIGURE 37. Functionally planned
buildings of University City, opened
in 1950 (U /OU)
of the few novels to become popular in that period.
Sinan is best known, however, for his poetry. He and
Demetrio Korsi (b. 1899) are Panama's major
contemporary literary figures. While Korsi's poetry is
basically realistic, as exemplified in his c II t' Fl
viento en la montana (The Wind on t
Sinan's output is varied. His experimc
have had a significant impact on youn
I writers, many of whom turned to surrea
1 avant -garde trends beginning in
Metaphysical remini
Spaniard Miguel de Unamuno domiva
country's contemporary poetry, particul
of Carlos Francisco (han -Marin (b.
46
o cc ion
he Mountain),
ntal techniques
g Panamanian
lism and other
the 1930's.
scent of the
tc much of the
arty the works
1922), Jose de
FIGURE 38. Legislative Palace in
Panama City. A typical example
of modern functional architecture
by native architects. (U /OU)
Jesus Martinez (b. 1929), and Guillermo Ross Zanet
(b. 1930). While retaining an avant -garde character,
these and other poets have moved from the extreme
illogicality and nihilism of their early days to a more
conventional style, touched with nostalgia and
melancholy.
Panamanian novels, traditionally overshadowed by
the .,port story, generally are not read abroad,
although an exception is Octavio Mendez Pereira's
historical novel, El tesoro del Dabaibe (The Treasure
of Dabaibe), based on the life of the explorer Balboa.
The novel in general made somewhat of a comeback
in the 1960's when a number of regionalist novels with
social protest the? were published. Some authors,
I
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

f-
i
FIGURE 39. "Mischievous Birds," one in a series of
lithographs by Julio Zachrisson (U /OU)
such as Pedro Rivera (b. 1939) in Peceata minuta
(White Lie), have utilized modern techniques without
deviating from national reality. During the 1960's,
moreover, the "canal cycle" of novels, similar to that
which appeared earlier in the century, reemerged
strongly in literary circles. Of five such novels written
since 1960, three won literary awards: Gamhoa Road
Gang, by Joaquin Beleno (b. 1922), which denounces
the working conditions of Panamanians in the Canal
Zone; La otra frontera (The Other Frontier), by Cesar
Candanedo, which deals with the plight of peasants
forced to abandon their lands to make way for the
canal; and Yolanda Camarano de Sucre's Los Capelli
(The Capellis), which traces the history of the canal by
observing its effect on four generations of an Italian
immigrant family.
Drama has been the weakest of the literary genres in
Panama, with few authors publishing works prior to
1950. A notable exception was Rogelio Sinan's La
cucarachita mandinga (The Devil Cockroach), a
popular musical comedy written in collaboration with
Gonzalo Brenes. Since midcentury, playwrights
generally have treated social problems and Panama's
relationships with the rest of the world. Jose de Jesus
Martinez, although best known as a poet, has been
active in the field of drama and is well known for his
play El juicio ,final (The Final Judgment). The
establishment of a university theater in 1959 gave
substantial impetus to the production of national
dramas. A touring gro,ip known as Los Trashumantes
(The Nomads) was organized in 1971 by the director
of the theater for the purpose of bringing drama to
villages and urban slums. Its highly successful first
presentation Una florpara mascar (A Flower to Chew)
featured audience participation. The countrv's best
known theatrical director is Jose Quintero, recognized
for his work in New York City and Paris.
Panama's rich collection of songs and dances is
among the most varied and colorful in the hemisphere.
Unlike much folk music elsewhere in Latin America,
Panamanian folk songs are lively and optimistic,
characterized by a contagious spontaneity and a
general absence of melancholy. The mejorana and the
punta, both of which are suited to either vocal or
instrumental rendition, are the best known forms of
song, and the cumhia and tamborito are the national
dances. The cumhia, performed by couples to the
rhythm of maracas and drums, also is popular in
neighboring countries. The tamborito, performed by a
group of men and women arranged in a circle, is
thought to have been introduced from Africa via
Spain in the 17th century. The national dances
customarily are performed at fiestas and during
Carnival, especially in the countryside, by persons
wearing traditional native costumes (Figure 40). In the
cities, women wear the pollera, consisting of a long
white skirt with multicolored embroidery and a white
47
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
7
i
FIGURE 39. "Mischievous Birds," one in a series of
lithographs by Julio Zachrisson (U /OU)
such as Pedro Rivera (b. 1939) in Peceata minuta
(White Lie), have utilized modern techniques without
deviating from national reality. During the 1960's,
moreover, the "canal cycle" of novels, similar to that
which appeared earlier in the century, reemerged
strongly in literary circles. Of five such novels written
since 1960, three won literary awards: Gamhoa Road
Gang, by Joaquin Beleno (b. 1922), which denounces
the working conditions of Panamanians in the Canal
Zone; La otra frontera (The Other Frontier), by Cesar
Candanedo, which deals with the plight of peasants
forced to abandon their lands to make way for the
canal; and Yolanda Camarano de Sucre's Los Capelli
(The Capellis), which traces the history of the canal by
observing its effect on four generations of an Italian
immigrant family.
Drama has been the weakest of the literary genres in
Panama, with few authors publishing works prior to
1950. A notable exception was Rogelio Sinan's La
cucarachita mandinga (The Devil Cockroach), a
popular musical comedy written in collaboration with
Gonzalo Brenes. Since midcentury, playwrights
generally have treated social problems and Panama's
relationships with the rest of the world. Jose de Jesus
Martinez, although best known as a poet, has been
active in the field of drama and is well known for his
play El juicio ,final (The Final Judgment). The
establishment of a university theater in 1959 gave
substantial impetus to the production of national
dramas. A touring gro,ip known as Los Trashumantes
(The Nomads) was organized in 1971 by the director
of the theater for the purpose of bringing drama to
villages and urban slums. Its highly successful first
presentation Una florpara mascar (A Flower to Chew)
featured audience participation. The countrv's best
known theatrical director is Jose Quintero, recognized
for his work in New York City and Paris.
Panama's rich collection of songs and dances is
among the most varied and colorful in the hemisphere.
Unlike much folk music elsewhere in Latin America,
Panamanian folk songs are lively and optimistic,
characterized by a contagious spontaneity and a
general absence of melancholy. The mejorana and the
punta, both of which are suited to either vocal or
instrumental rendition, are the best known forms of
song, and the cumhia and tamborito are the national
dances. The cumhia, performed by couples to the
rhythm of maracas and drums, also is popular in
neighboring countries. The tamborito, performed by a
group of men and women arranged in a circle, is
thought to have been introduced from Africa via
Spain in the 17th century. The national dances
customarily are performed at fiestas and during
Carnival, especially in the countryside, by persons
wearing traditional native costumes (Figure 40). In the
cities, women wear the pollera, consisting of a long
white skirt with multicolored embroidery and a white
47
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

F
'ma
FIGURE 40. Native costumes. The rustic montuna (right) became widely used
when the pollera (left) was taken over by upper class women as a costume
for use at fiestas. (U /OU)
lace off- the shoulder blouse. Originally a Spanish The leading contemporary composer is Roque
peasant costume from Andalusia, the pollera can be Cordero, who directs the National Institute of Music.
extremely costly, depending neon the material and Other composers include Gonzalo Brenes, who wrote
orname ntation used. The more rustic montuna, the musical score for the La cucarachila mandinga; j
consisting of a brightly flowered skirt and blouse, Alberto Galimanv, former director of the national
predominates in the conntryside. Men wear hand; Ricardo Fabrega, noted for his popular musical
embroidered cotton shirts over knee- length white compositions; and Narciso Garay, first director of the
trousers. National Conservatory of Music. The conservatory,
In addition to such standard European instruments founded by the government in 1904, was closed
as the violin, cello, and guitar, popular orchestras between 1921 and 1911 for lack of popularsupporl. It
employ the mejoronanera and the bocona, both was reorganized in 1953, when it was renamed the s
locally fashioned five stringed guitars, the rabel, a National Institute of Music. The National Symphony k
three stringed violin, the guachara, a gourd rattle, and Orchestra, formed in 1911, performs many of the
drums of assorted types and sizes. works of these and other national composers. r
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

-r Earl" me rnc.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
H. Public information (U/OU)
educational, and scientific programs may be telecast.
The information media are highly developed in the
Violators are subiect to fines ranging from B25 to ti
B250.
Although radio and television station operators
s
urban sector, but throughout much of the rest f the
o
are required to submit month':v transcripts
p of all
country antiquated means of disseminating ews
g
t
programs and commercials, tht elF ctronie media
predominate. In very remote districts information
generally have greater freedom from government
often is transmitted by bus drivers, local politicians,
interference than do the printed media.
and schoolteachers, or through conversations among
Making generous use of exaggerated descriptions
friends and relatives. Radio reaches the largest number
and lurid photographs, the printed press traditionally
of persons and, given the emotional appeal of the
has been inclined toward sensationalism, even in the
spoken word in Panama, it is the most important
treatment of political matters. Under the Torrijos
means of mass communication. Newspapers, however,
by
regime, however, censorship regulations have
f
are read the decisionmaking sectors of the
dampened sensationalist journalism, dealing both
population and thus constitute the most important
with common crime and political activities.
medium for shaping public opinion.
Nevertheless, reports on the private lives of public
As did the preceding charters, the 1972 Constitution
officials and other prominent persons have wide
guarantees freedom of expression. Nevertheless,
appeal, as do human interest stories and society news.
governments repeatedly have violated this principle
Highlighting baseball, horseracing, and soccer, the
and employed varying degrees of censorship. As
recently as 1973, the Inter American Press Association
coverage of sporting events is extensive. Feature
articles and comic strips, both largely of U.S. origin,
selected Panama as one of several Latin American
also are carried by newspapers. International news
countries where freedom of the press is restricted. Most
coverage centers on relations between the United
editors and publishers, however, deny that the
States and Panama, particularly on issues pertaining
t
government exercises unduly harsh controls, defending
to the Canal Zone. In varying degrees, the newspapers
what they consider to be a "unity of purpose" among
appeal to, as well as exhort, Panamanian nationalism.
the media in supporting the government. Since 1968,
Except for a few of the major dailies, Panamanian
the regime has increased its control over the media
newspapers tend to appear and disappear fairly
through strengthened censorship and the acquisition
frequently, reflecting the ups and downs of their
of a radio network and a publishing house. During
political and financial backers. Of the six dailies
Torrijos' first year in power, censorship was enforced
published in 1973, only La Estrella de Panama,
by government censors assigned to the offices of
leading newspapers and broadcasting
a
morning newspaper with a circulation of about
stations. Since
late
30,000, and its English language edition, The Starand
1969, however, the government has exercised
Herald (13,000 circulation), are considered to be
indirect controls through a series of decrees restricting
thorough and reliable in their reporting. Moreover,
the type of information that can be disseminated;
they are the only dailies which have retained
publishers, editors, and station managers who fail to
a
significant measure of journalistic freedom under the
report the news in the officially prescribed manner
Torrijos regime. The four remaining dailies emanate
have been subjected to intimidation. Some
from Editora Renavacion, a government publishing
newspapers and radio stations have been ordered to
house formed in 1968 to publish the chain of
close temporarily, and their owners have been fined
newspapers formerly owned by the family of deposed
for violating the censorship decrees. These measures,
President Arnulfo Arias. These include the tabloid
strengthened in 1971 following extensive media
Critica (30,000 circulation); El Panama America
coverage of the disappearance of Father Gallegos, are
(25,000) and its English- language edition, The
rationalized under the terms of existing laws
Panama American (13,000); and Matutino (20,000),
forbidding the use of materials which "violate
Christian morals, include immoral or vulgar scenes,
Seven additional newspapers, all of them Spanish- s
language weeklies,
offend national dignity or the dignity of friendly
are published in small cities or
towns in the interior. An English and Spanish weekly,
nations, encourage crime, or publicize exotic theories
The Panama Tribune, is published in the capital and
of government or totalitarian systems." The rules
is widely read among Negroes of West Indian
j
apply to printed materials, radio, television, motion
derivation. Two Chinese language weeklies serve the
t J
pictures, public readings, and live performances. A
Chinese community. Some individuals in the more
three-man board of censors regulates the scheduling of
affluent sectors of society supplement their reading of
television programs; prior to 9 p.m., only family,
the domestic press with foreign newspapers, especially
49
N
n+. va.��.. r..
n. w..... e. ..ww�vr.n++rtrwrn3wRnn+.,ps.. 1.O +nW.lawaw.rncsw
a._ 21SJ3S�Il' ,::PW'wr(a4i/..41 .'1� },y.t::...v
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

)flfl"lflV l7 V
I
ne New York Times, the Miami Herald, and El
Tiempo of Bogota.
Since there is no domestic news agency, the news
media rely heavily on foreign press services, including
United Press International, Associated Press, Reuters,
Agtnce France Press, and Ageneia Efe (Spain). A
number of foreign press services maintain correspond-
ents in Panama, including Cuba's Prensa Latina.
The only important domestic magazine is Loteria, a
monthly devoted to literature, history, and the fine
arts, published by the government lottery agency. Two
other literary publications, El Faro and Mar y Tierra,
have small readerships. Foreign magazines, including
Time, Paris Match, and the Economist, are widely
read by more affluent individuals. With the exception
of school textbooks and official materials issued by the
National Printing Office, few books are published
domestically.
With the advent o: transistorized, battery powered
radios, broadcasting has become an increasingly
important medium for mass communication. In 1973,
an estimated 500,000 radio receivers were in use,
almost double the number 10 years earlier. Broadcasts
from one or more of the nation's 94 radio stations
reach all regions of the country. For a fee, some of the
smaller stations in the hinterland transmit personal
messages for individuals unable to communicate by
telephone or telegraph.
There are three radio networks, one of which, Radio
Libertad, is controlled by the government. Inaugu-
rated in 1970 to publicize official programs and
promote support for the regime, Radio Libertad
propagandizes the revolution and offers educational
and cultural programs highlighting traditional music
and folklore. The other two networks, both private, as
well as the multitude of independent stations, feature
popular music, news programs, soap operas, and, to a
lesser degree than does the state network, cultural and
informational features. Most of the music heard over
the radio is of U.S. or Mexican origin.
In a policy related to its control of the public
information media and designed to stem what is
considered U.S. "cultural imperialism," since 1968 the
government has regulated the production, importa-
tion, publication, and broadcasting of commercial
advertising. Additionally, early in 1973 it was decreed
that all radio and television announcements must be
made in Spanish by a licensed commentator and that
musical commercials must be sung by Panamanians
accompanied by Panamanian musicians.
In 1973 there were two television stations in
Panama City and eight relay stations elsewhere in the
country. Of the estimated 125,000 television receivers
50
in service, more than three- quarters were located in
the capital, approximately 15,000 in Colon, 12,000 in
David, and the remainder largely in the central
provinces. Packaged programs produced in the United
States dominate airtime. A 1968 survey showed that
more than two- thirds of total broadcast time consisted
of cowboy, detective, and adventure serials, children's
programs, situation comedies, and soap operas.
Slightly more than 10% of broadcast time was allotted
to cultural and informational programs. Much of the
news commentary is highly subjective, although
personal attacks on public officials have occurred far
less frequently since 1968. Approximately 10 minutes
of each hour are devoted to commercials. The U.S.
Armed Forces Radio and Television Service operates
two television and two radio stations in the Canal
Zoav for the purpose of entertaining local U.S.
personnel and their dependents and keeping them
abreast of events in the United States; the service's
shortwave radio broadcasts are heard in many Latin
American countries.
Motion pictures are a favorite form of recreation
among city dwellers, but few rural inhabitants are
regular patrons. In 1968 there were 23 theaters, most
of them in Panama City and Colon, with a total
seating capacity of more than 28,000 persons. An
additional 40 theaters, equipped to show only 16 -mm.
films, were located in the interior. Virtual] all motion
pictures are imported, mainly from the United States
and Mexico, as the domestic film industry is at an
early stage of development.
I. Selected bibliography (U /OU)
Casio, Carlos D. "Notas para una sociologic del
negro antillano," Loteria, vol. 17, no. 202, pp. 6 -24,
September 1972. One of the few studies available on
the Negroes of West Indian derivation.
Castillero Calvo, Alfredo. La sociedad panamena:
historia de su formacion a integration. Panama City:
Direccion General de Planificacion y Administracion
do la Presidencia. 197C. The first of a government
sponsored series of monographs on the history of
Panama; attempts to move awav from the traditional
emphasis on the transit route to an analysis of
developments in the interior of the country.
De Leon, Eric. Ensayo sobre la naturaleza psico-
sociologica del hombre panameno u orros problemas
sociales. Panama City: Direccion General de
Planificacion y Administracion de la Presidencia.
1970. Although largely devoted to a study of the
Panamanian personality, the work contains useful
information on housing and health.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

SK,.'
as
I
,,.,.m...,.- r..... w:: JY )..,�i: 7FA 5. I'5,`7Ix HI�Y .p'' i r' ::.:"L
e
i
II
i
Green, James W. Panamanian District: A Case
Study in the Sociology of Development. Washington,
D.C.: U .S. Agency for International Development.
1969. Information on living levels and marriage and
family patterns.
Lodge, George C. and Gudeman, Stephan F. The
Veraguas Report: A Study of the Organization of
Change in Rural Latin America. Boston: Harvard
University. 1967. A description of social change in a
rural province, with emphasis on the peasant
mentality and cultural impediments to development.
Lutz, Thomas. "Some Aspects of Community
Organization and Activity in the Squatter Settlements
of Panama City." Unpublished paper. 1971. Describes
the antagonisms between lower class Panamanians
and West Indians, and between slum dwellers and
squatters.
Mellander, G.A. The United States in Panamanian
Politics. Danville, Ill.: Interstate Printers and
Publishers, 1971. A comprehensive study of U.S.
involvement in Panama, underscoring the significance
M nationalism as a political tool.
Panama. Departmento de Planificacion. Estrategia
para el desarrollo nacional, 1970 -80. Panama City.
March 1970. The basic statement of the government's
goals for the social and economic sectors during the
1970's.
Ministerio de Education. Plan nacional de
education, 1969 -83. Panama City. May 8, 1969. A
comprehensive analysis of all levels of education in
Panama, including a critique of existing deficiencies
and recommendations for improvements.
Porras, Hernan. "Pape) historico de Jos grupc s
humanos en Panama," Loteria, vol. 14, no. 161, pp.
40 -74, April 1969. Describes the origin and evolution
of Indian, Negro, and mestizo groups in Panama.
Ropp, Steve C. "Military Reformism in Panama:
New Directions or Old Inclinations," Caribbean
Studies, vol. 12, no. 3, pp. 45-64, October 1972.
Describes the changing role of the National Guard
since the military takeover in 1968.
U.S. Agency for International Development.
Statistics for the Analysis of the Educational Sector:
Panama. Washington, D.C., 1972. Basic statistics on
all aspects of the educational system for 1950 -70, with
data supplied by the Panamanian Government.
U.S. Department of Health, Education, and
Welfare. Office of International Health. Syncrisis:
The Dynamics of Health. 1: Panama. Washington,
D.C.: Government Printing Office, revised edition,
May 1972. An analysis of the relationship between
health and socioeconomic development, containing
basic information on health conditions, medical care,
nutrition, and sanitation.
51
Y1
x
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

J
i
I
ZY'r
i
i
i
i
x'
Glossary Wou)
ABBREVIATION
SPANISH
ENGLISH
AIFLD
American Institute for Free Labor
Development
CCC............
Confederation de Campesinos Cristianos.
Confederation of Christian Peasants
CCS............
Centro de Cdpacilacion Social.........
Center for Social Training
CEPAS.........
Centro de Esiudios, Promotion, y
Center for Study, Promodon, and
Asistencia Social
Social Assistance
CIT............
Central Istmena de Trabajadores......
Isthmian Workers' Central
CLAT..........
Central Latinoamericana de Trabaja-
Latin American Workers' Central
dores
CNTP..........
Central National de Trabajadores de
National Central of Workers of
Panama
Panama
CONEP.........
Consejo Nacional de la Empresa
National Council of Private Enter
Privada
prise
CSS............
Caja de Seguridad Social
Social Security Fund
CTRP..........
Confederation de Trabajadores de la
Confederation of Workers of the Re-
Republica de Panama
public of Panama
FSTRP.........
Federation Sindical de Trabajadores de
Trade Union Federation of Workers
la Republica de Panama
of the Republic of Panama
FUNDAVICO...
Fundacion de Vivienda Cooperativa....
Cooperative Housing Foundation
IDAAN.........
Instituto de Alcanlarrilladas y Acue-
Institute of National Sewerage and
duclos Nacionales
Water Works
IDB
Inter American Development Bank
ICFTU
International Confederation of Free
Trade Unions
IFARHU........
Instituto para la Formation y Aprove-
Institute for the Formation and
chamiento de Recursos Humanos
Utilization of Human Resources
IFHA...........
Instituto para el Fonlento de Hipotecas
Insured Mortgage Development In-
Aseguradas
stitute
IVU............
Instituto de Vivienda y Urbanismo....
Housing and Urbanization Institute
MUNDO........
Movimiento de Unification Nacional,
Movement for National Unification,
Desarrollo, y Orientation
Development, and Orientation
GRIT...........
Organization Regional Interamericana
Inter American Regional Organization
de Trabajadores
of Workers
PA HO
Pan American Health Organization
SITRACHILCO.
Sindicalo de Trabajadores de la Chiriqui
Union of Workers of the Chiriqui Land
Land Company
Company
SNEM..........
Servicio Nacional de Eradication de la
National Service for the Eradication
Malaria
of Malaria
WFTU
World Federation of Trade Unions
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7

yn is uIN I' &ff n
i
I I
53
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7
t f
:tSFi} .*n c s .:rr, rYf r +??�A.7
r.
CONFIDENTIAL
t
ti
i
i
t
I
Places and features referred to in this chapter (u /ou)
COORDINATES
3�;
Azuero, Peninsula de (pen)..........
I N. W.
Bay of Panama y)
7 40 80 35
Canal Zone (leased zone)
8 50 79 15
Chitre
9 10 79 48
Colon
7 58 80 26
David
9 22 79 54
Divisa
8 26 82 26
L a C..
8 08 80 41
arrera
Madden Lake (rsv)
8 53 79 47
Nata....
9 15 79 35
Panama City
8 20 80 31
Penonome
8 58 79 32
Portobelo
8 31 80 22
Puerto Armue lies
9 33 79 39
San Miguelito
8 17 82 52
Santiago
9 02 79 30
i
I
8 06 80 59
i
I I
53
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080046 -7