4.3 The Panama Canal and Its Geopolitical Significance

The Panama Canal, completed in 1914, revolutionized global trade and naval strategy. This massive engineering feat connected the Atlantic and Pacific oceans, cutting shipping times and costs. Its construction faced huge challenges, from tropical diseases to difficult terrain.

The canal's creation intertwined with Panama's independence from Colombia, backed by the U.S. The 1903 Hay-Bunau-Varilla Treaty gave the U.S. control over the Canal Zone, showcasing America's growing influence in Latin America during the early 20th century.

Panama Canal Construction

Building the Canal

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• Panama Canal is an artificial waterway connecting the Atlantic and Pacific oceans through the Isthmus of Panama
• Canal construction began in 1904 and was completed in 1914, taking a decade to build
• Construction faced numerous challenges including tropical diseases (malaria and yellow fever), difficult terrain, and engineering obstacles
• Excavation of the Culebra Cut, an artificial valley that cuts through the Continental Divide, was one of the most difficult and time-consuming parts of the construction process
• Over 5,600 workers died during the construction of the canal due to accidents and diseases

Leadership and Workforce

• George W. Goethals, a U.S. Army officer and civil engineer, was appointed Chief Engineer of the Panama Canal in 1907
  • Goethals oversaw the construction of the canal and implemented strict sanitation measures to reduce the spread of tropical diseases among workers
  • He also introduced new technologies and construction techniques to improve efficiency and speed up the building process
• The workforce consisted of thousands of workers from various countries, including the United States, Caribbean islands (Barbados and Jamaica), and Europe (Spain and Italy)
• West Indian workers made up a significant portion of the labor force and were crucial to the completion of the canal despite facing discrimination and poor working conditions

Panamanian Independence and Treaty

Separation from Colombia

• Panama was originally a province of Colombia
• In 1903, with support from the United States, Panama declared its independence from Colombia
• The U.S. quickly recognized Panama as an independent nation, which strained relations between the U.S. and Colombia
• Colombian separation was driven by the U.S. desire to secure control over the canal zone and construction rights

Canal Zone Sovereignty

• Hay-Bunau-Varilla Treaty, signed in 1903, granted the United States perpetual control over the Panama Canal Zone
  • The treaty established the Canal Zone as a 10-mile wide strip of land along the canal route, effectively dividing Panama into two parts
  • Panama Canal Zone was under U.S. jurisdiction and operated as a U.S. territory until 1979
• Theodore Roosevelt, U.S. President from 1901 to 1909, played a significant role in supporting Panamanian independence and securing U.S. control over the Canal Zone
  • Roosevelt's foreign policy, known as "Big Stick diplomacy," asserted U.S. dominance in the region and justified intervention in Latin American affairs

Geopolitical Significance

Strategic Importance

• The Panama Canal greatly reduced travel time and distance for ships navigating between the Atlantic and Pacific oceans
  • Before the canal, ships had to sail around the southern tip of South America (Cape Horn), which was a long and dangerous route
  • The canal allowed for faster and safer passage, saving time and fuel costs for shipping companies
• Control of the canal gave the United States a strategic advantage in both military and commercial matters
  • U.S. Navy could quickly move warships between the two oceans, enhancing its global power projection capabilities
  • During World War II, the canal played a crucial role in U.S. military strategy, allowing for rapid deployment of troops and supplies to the Pacific theater

Economic Impact

• The Panama Canal boosted global trade by providing a shorter and more efficient shipping route
  • The canal facilitated the growth of trade between the East Coast of the United States and Asia, as well as between Europe and the West Coast of the Americas
  • Major commodities transported through the canal include grains (wheat and corn), petroleum products, and containerized cargo
• Panama's economy benefited from the canal through jobs, infrastructure development, and revenue generated from canal tolls
  • Canal tolls, fees charged to ships passing through the canal, provide a significant source of income for the Panamanian government
  • The canal's presence led to the development of port cities (Colón and Panama City) and the growth of related industries, such as logistics and tourism