It has an elongated S shape, with its Caribbean coastline stretching some 800 miles (1,290 km) and the Pacific coast some 1,060 miles (1,700 km) however, a line drawn from the Costa Rican frontier in the west to the Colombian border in the east would extend only 480 miles (770 km). Panama is bounded to the north by the Caribbean Sea (an extension of the Atlantic Ocean) and to the south by the Pacific Ocean. However, its economic progress has been hampered periodically by environmental problems and political turmoil. A cosmopolitan city where skyscrapers tower above whitewashed bungalows, it enjoys a handsome setting and a growing importance as a commercial and financial services centre for the region. Its capital, Panama City, is located on the Pacific coast just east of the canal. Panama enjoys a lively mix of cultural influences, expressed in the country’s cuisine, artwork, music, and literature. For the first time in nearly a century as an independent nation, Panama controlled the entirety of its national territory. The United States relinquished jurisdiction of the Panama Canal on December 31, 1999, marking an unprecedented shift in Panamanian society. ![]() The canal also secures Panama’s ongoing role in international affairs and world commerce. Since 1914 the 51-mile- (82-km-) long Panama Canal, which connects the Atlantic and Pacific Oceans, has afforded a long-sought shortcut for shipping and assures the country’s standing as one of the most strategic transportation hubs of the world. Look how the Panama Canal reduces the journey from Europe to the United States See all videos for this article
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