The history of the Panamanian isthmus, since Spaniards first landed on its shores in 1501, is a tale of treasure, treasure seekers, and peoples exploited; of clashes among empires, nations, and cultures; of adventurers and builders; of magnificent dreams fulfilled and simple needs unmet. In the wake of Vasco Nuñez de Balboa's torturous trek from the Atlantic to the Pacific in 1513, conquistadors seeking gold in Peru and beyond crossed the seas and recrossed with their treasures bound for Spain. The indigenous peoples who survived the diseases, massacres, and enslavement of the conquest ultimately fled into the forest or across to the San Blas Islands. Indian slaves were soon replaced by Africans.

In October 1978, the 1972 Constitution had been reformed to allow the legalization of political parties, and exiled political leaders were permitted to return to Panama. Torrijos formally stepped down as head of government, and a civilian president was elected. Torrijos, clearly remained the dominant force in the political system. Torrijos's shocking, sudden death in an airplane crash in July 1981 created a power vacuum in Panama. The newly erected democratic facade persisted, with a succession of civilian presidents controlled by the National Guard and its emergent leader, General Manuel Antonio Noriega Moreno, who had been in command since August 1983. Noriega successfully transformed the National Guard into the far larger Panama Defense Forces, a formidable power base for his increasing political control.