The tiny nation of Panama hasn't captured many headlines in the five years since U.S. troops invaded and took strongman Manuel Noriega prisoner. The nation's economy has slowly improved, even though many people believe Guillermo Endara, the man who was elected to the presidency in 1989, has done little to help.
But the people this week have returned Noriega's political party to power and, while it appears new president Ernesto Perez Balladares is distancing himself from the former dictator, the United States should pay careful attention.All is still not well in Panama. Illegal drug trafficking and corruption still abound, mainly because of the huge demand created by Americans.
U.S. troops are scheduled to begin withdrawing from the Panama Canal this summer as part of a gradual transfer of ownership to the Panamanians by the end of the century. But the canal still has strategic importance. The United States needs a friendly, stable and sympathetic government in Panama. If Balladares begins surrounding himself with former Noriega cronies, the Central American nation once again could present a foreign-policy challenge.
So far, Balladares has given little justification for those worries. He appears to want to remain an ally. An American-educated millionaire businessman, he has distanced himself from Noriega. He said he will not return to the days of military rule. Those are good signs.
Still, the past bears remembering. Balladares served as campaign manager in 1989 for Noriega's hand-picked candidate. The election was racked with fraud and violence. When Noriega saw that his candidate was about to lose, he annulled the election. Seven months later, U.S. troops invaded the nation, captured Noriega and brought him to Florida where he was convicted on drug trafficking charges.
His political party remains nationalistic and has accused Endara of taking orders from Washington, although it has toned down its leftist rhetoric.
Balladares won with only about one-third of the votes in a field of six candidates. He won largely because he invoked the memory of the late general Omar Torrijos, who spent millions on schools, water projects and rural developments before dying in a 1981 plane crash.
But the next five years promise to present difficult problems for Panama's economy. Balladares isn't likely to be able to repeat Torrijos' public spending. The withdrawal of 10,000 U.S. troops alone will sap the nation of about $300 million annually, as well as about 4,000 local jobs. The nation still suffers an unemployment rate of about 13 percent.
Obviously, many Panamanians resent U.S. involvement in their affairs. Therefore, a policy of quiet diplomacy is needed. The Clinton administration has done well to remain neutral during the election. Now, it must develop friendly relations with Balladares while it seeks to reduce the demand for drugs in the United States.
When U.S. forces invaded Panama, their objective was to oust Noriega, not necessarily to remove his party from power. Yet the irony of his party returning so soon is a strong signal that it's time to pay attention.