Panama City is a major financial hub and the center of political and economic activity in the country. Due to many factors, such as its strategic location between North and South America, the management of the Panama Canal, and its use of dollars as the official currency, Panama’s strategic clout is oversized to its population, resources and landmass.
Early in the 20th century the US essentially wrested control of the area known now as Panama from Colombia, hitherto being one country, and established provisions so that the Canal Zone would be built, fortified, and maintained by the USA (not Panama) “in perpetuity”. This, in a way, was a typical tone for US interventionism in Central America.
From 1903 to the mid-1960s, Panama was ruled by a sort of oligarchy with the blessing of the US, until protests arose which led, both directly and indirectly, to a series of strong men running the country. This reached its apotheosis in Manuel Noriega, the ex-CIA informant who simultaneously promised support for US anti-drug policies but at the same time took hundreds of millions from drug cartels and provided a strategic launch point for smuggling activities on Panamanian soil.
When the US invaded Panama in 1989, landing Marines in the center of Panama City, they killed thousands (officially only 314, but this is disputed), deposed Noriega, and restored constitutional government.
Although the country has made great strides to develop legitimate service industries like finance, it has struggled to shake off the odor of a money laundering hub. The release of millions of leaked documents called the Panama Papers in 2016 highlighted the country’s role in the creation of shell companies for tax evasion and outright money laundering.
Today, the city is a ultra-modern sea of high-rise skyscrapers and finance bros shuttling between banks, gyms, and inflated real estate. There is absolutely a division between the obvious wealth that has poured into the country and the average Panamanian, who normally lives on the outskirts of the city, and the poor, who normally live in the rural areas of the country. Within the city center there are several slums which abut these high-rises and banks, probably the most famous (pictorially) being called Boca La Casa.