The Economic Development Strategy of Panama-Study on Colon Free Zone

• Main Authors: Pan, Hsiu-Chu, 潘秀珠
• Other Authors: Teng Chung-Chian
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/33281553590516006563

碩士 === 淡江大學 === 拉丁美洲研究所 === 85 === Abstract: This thesis investigates the economic develo pment strategy of Panama fromthe point of view of modernization and dependency Theories. The geographical advantages of the isthmus have made Panama''s ec onomicdevelopment more excellent than that of the other Central-American and C aribbean countries. However, the expansion of American capital was the mostimp ortant factor which enabled Panama to convert its economy pattern from atradit ional colonial one to a modern one. The development of the Panama Canaland the Canal Zone became the single drive of Panama''s economy when theU.S.A. exercis ed authority over them. Thus an inevitable consequence is for people to emphas parts of Panama''s economy. Therefore, the economy hasbeen characterized by co mmerce and services for ages. The establishment of the Colon Free Zone (CFZ ) in 1948 was for the goal ofgetting rid of the dependence on the Canal and th e Zone which are dominated by the U.S.A. But by examining the history of the c ountry''s economic development,we can find that: the CFZ made more conflicts in its economic structure eventhough it facilitated Panama''s economic developmen t; over 70 percent ofPanama''s GDP came from the service trades, which brought it a denationalizedeconomic activity trend, reduced the essential productivity day by day and created a distorted ecnonomic development pattern; in other wo rds, the geographical advantages of the isthmus facilitates the CFZ''s success, but CFZ''ssuccess didn''t do so much help to the whole country''s properity; it means thatexcept for the transportation and the banking service trades, the ag riculture,the industry and the manufacturing are underdeveloped; Panama''s econ omicdevelopment has fallen into the mode of an undeveloped industrialization. Therefore, on the premise of the country''s economic development, a properde velopment strategy is necessary other than examining the shortage of the econo mic structure. The author considers it a very good idea for Panama todevelop t he export-orientated processing industry, which can enhance itseconomy capacit y. Only in this way can the industrialization of Panama befulfilled and thus t he full development of the country''s economy and itsmodernization be spurred.