Panama, republic in Central America, located on the narrow strip of land that connects North and South America. Its position between two continents and separating two oceans has played a defining role in Panama’s history and the livelihoods of its people.

Panama is crossed by mountain ranges, covered with large areas of rain forest, and bounded by two long coastlines studded with islands and bays. At several places it spans less than a hundred miles from its Atlantic coastline to its Pacific shores. Most of its people and economic activity are located in the central region surrounding the Panama Canal, the major waterway that has played a decisive role in the country’s history. Panama City, the capital and largest city, is on the Pacific coast in this central zone. The nation’s diverse population is largely of mixed Spanish, black, and Native American descent, but includes indigenous people and immigrants from many parts of the world.