It should be remembered that the country that has undertaken this ambitious plan has a high rate of poverty and unemployment. As many as 37% of its population, including 50% of children and 95% of Native Americans, live below the poverty line, according to the International Bank for Reconstruction and Development. This makes the mass support of the reconstruction plan even more impressive. Panamanians are willing tighten their belts further in a hope that their children will have a better future, because the modernization, which is projected to finish in 2014, will increase state revenues significantly. The plan envisages construction of floodgates that will admit the biggest modern ships, which means that the new floodgates need to be 40% broader and 64% longer than the current ones.
During the Canal's construction - the idea first appeared in the 19th century and the project was completed in 1914 - it became widely known even before navigation started. The Panama hat, for example, quickly spread all over the world. Unfortunately, the same word became synonymous with something altogether different, i.e. fraud. The Big Panama stood for the largest financial swindle.
It was no coincidence that Sicilian Mafia preferred to establish control "only" over the construction work, not aiming at anything else. That way it was easier to gain, hide and launder money. All they had to do was use less cement, to state a different type of soil, to "discover" non-existent underground springs, etc.
All these techniques were widely used during the construction. No wonder that all the initial calculations on the project proved extremely far from reality, while a section dug during a day was often found collapsed by next morning. Thousands of people died during the construction because of diseases and poor organization.
As a result, some parties made good fortunes from the Panama project, while others went bankrupt. The initial trust, backed by France, collapsed under the burden of all these problems. Later, Americans became aware of the project, completed it, and for a long time raked in the huge profits. Moreover, a strategically important U.S. military base was deployed in the region, rending Panama's real sovereignty almost null.
It is, perhaps, logical, that the modernization plans were initiated by President Martin Torrijos, the son of Omar Torrijos, who had snatched control over the Canal from America. This move is believed to have cost him his life. He died 25 years ago, on July 31, 1981, when a Twin Otter of the national Air Force crashed in the mountains in strange circumstances. Many people still believe that it was the CIA that stood behind this death.
The official ceremony of handing over control over the Canal took place not so long ago, on December 31, 1999. At that time, there was much talk about Panama's sovereignty, but of course big money was also an issue. A remarkable fact: in 2000-2001, profits from the Canal managed by Panamanians amounted to $198 million, up $50 million from 1999, when it was managed by the U.S. Either Americans are not too great managers or they allowed corruption to blossom under their control.
The political and psychological climate in Latin America is obviously changing. For Panama's incumbent president the new project is a planned and well-considered risk. He invests huge money in the country's future, although it could have been spent on many important social programs today. But Panama is tired of living without a future, and it is ready to take the risk together with its president, to be patient for the sake of its children. After all, the country was pressed for time: neighboring states were already discussing an alternative modern channel between the Pacific and Atlantic oceans.
It is also important that this complicated issue was put up for a referendum. This is not Torrijos's attempt to escape responsibility, but the only normal and fair move in a democratic system. This is also a good lesson for many old democracies that too often rely on bureaucrats to decide vital matters.
There is no doubt that the new project will soon be besieged by all kinds of unscrupulous contractors and swindlers. But the president is no longer alone after the referendum. So, hopefully, there will be enough controllers.
I do not think that the history will repeat itself. Today's Panama has staked on the future and we should wish it luck. A country that strives to combat poverty and is willing to work toward it on its own cannot but inspire respect.
