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When Gran Colombia dissolved in 1831, Panama and Nueva Granada remained joined, eventually becoming the Republic of Colombia. In 1977 an agreement was signed for the transfer of the Canal from the United States to Panama by the end of the 20th century, which culminated on December 31, 1999.With the backing of the United States, Panama seceded from Colombia in 1903, allowing the construction of the Panama Canal to be completed by the U. Revenue from canal tolls continues to represent a significant portion of Panama's GDP, although commerce, banking, and tourism are major and growing sectors.The new settlement replaced Santa María La Antigua del Darién, which had lost its function within the Crown's global plan after the Spanish exploitation of the riches in the Pacific began.

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When Panama was colonized, the indigenous peoples fled into the forest and nearby islands.

Scholars believe that infectious disease was the primary cause of the population decline of American natives.

The largest group were the Cueva (whose specific language affiliation is poorly documented).

The size of the indigenous population of the isthmus at the time of European colonization is uncertain.

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These evolved into significant populations best known through their spectacular burials (dating to c.

500–900 AD) at the Monagrillo archaeological site, and their beautiful Gran Coclé style polychrome pottery.

Some believe that the country was named after a commonly found species of tree (Sterculia apetala, the Panama tree).

Others believe that the first settlers arrived in Panama in August, when butterflies abound, and that the name means "many butterflies" in an indigenous language.


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