Canals, the isthmus, and globalization

It looks like Panama and Nicaragua are about to compete in the canal business. According to this Spiegel article Panamanians are considering an extremely expensive—but probably essential—widening of the canal to avoid losing the new large ships to other ports. Nicaragua, which would have the marginally simpler task of building a new canal, is set to join Panama in offering their services to the globalized trade.

The debate in Panama is an interesting one. This is a tremendously large investment for a poor country. I am not positive that this is the best possible way to invest that money, but it is hard to imagine the Panamanian economy adjusting to an-ever diminishing amount of traffic. That seems to be the attitude of Panamanian Vice-President, Samuel Lewis Navarro.

The canal, he says, was the tropical republic's raison d'etre from the very beginning."Panama," says Navarro,"was born as a globalized society."

That’s an interesting way to think of Teddy Roosevelt and Philippe Bunau-Varilla, and those Panamanians who supported intervention--as pioneers in globalization.