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Since the integration of the Canal into its internal economy, the Republic of Panama entered into a new stage in its development, which combines a sustained – although uncertain -economic growth with a persistent social inequity, a constant environmental degradation and an increasing institutional erosion. This new stage expresses, at unprecedented levels, the contradiction between the natural organization of Panama’s territory, and the territorial organization of its economy and Government since the European conquest of the 16th Century. With regard to this situation, it may be said that the Panamanian society has entered into a transition stage in its development, which may lead it to overcome that contradiction in the framework of a prosperous and equitative Republic or lead into increasing conflicts that may increase the conflicts inherent to a centralist and authoritarian development.