Panama's Canal: What Happens When the United States Gives a Small Country What It Wants

Author Mark Falcoff focuses on one of the most ignored subjects in contemporary American foreign policy analysis: at noon on December 31, 1999, the United States will hand control of the Panama Canal over to the government of Panama. This may sound like a small problem, but consider: roughly five percent of the world's trade flows through the canal's locks, and most of this business has either its origin or destination in the United States. The canal, in other words, plays a crucial role in both the global and American economies. Although Falcoff views the transfer--so far--as a model of postimperialism since the signing of the 1978 Carter-Torrijos treaty, he's not entirely sanguine about the future. Panama's political class, for example, is having second thoughts about a substantial U.S. pullout and its attendant financial and security consequences. Falcoff provides a comprehensive account of the transfer and its origins, and capably conveys an enormous amount of detailed information without ever imposing a burden on the reader. A chapter on the canal's history would have given Panama's Canal a more rounded quality, but Falcoff nevertheless presents a model work of political analysis focused on a topic that cries out for more attention.

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