The construction of the Panama Canal not only represented a novelty for engineering, but also significantly transformed international trade and boosted Panama’s economy. The Panama Canal is also our workplace, which is why it’s so important for us that people like you understand the benefits that the construction of the canal provided to everyone.
In today’s article, we will tell you about the benefits and features that have made the Panama Canal a giant of engineering and the future of the global economy. Read on to learn more!
3 benefits of the Panama Canal that put the island back on the map
It boosted the growth of a small Caribbean island
You didn’t expect this: we’re not talking about Panama. The construction of the canal meant that other nearby islands also enjoyed economic benefits through different phenomena.
In this case, we are talking about Barbados, an island some 2,300 km east of Panama which today represents one of the most important financial centers in the Caribbean. The construction of the Panama Canal contributed to this impressive financial development because, essentially, it was in Barbados where the United States found most of the labor for the canal.
Along with the 19,000 natives of Barbados, some 25,000 foreigners residing on the island, whose total population barely exceeded 150,000, also participated. Thus, more than 44% of the Barbadian population benefited economically from the construction of the canal.
The Panama Canal was part of China’s economic expansion
China’s economic boom began in Asia and part of Europe, but it was the Panama Canal that made it possible for Chinese-made products to be present in every corner of the world, including the Americas (in countries such as Brazil, Argentina, and Chile).
Although it was an imminent success, the construction of the canal made it possible for Chinese artifacts to arrive more quickly to our continent, (but it also became a much cheaper way to export materials such as coal).
It revolutionized trade worldwide in record time!
The Panama Canal became the main trade route by communicating the Pacific Ocean with the Atlantic Ocean through a space that managed to reduce the navigation time of the ships and the cost in transportation and maintenance expenses.
After its expansion in 2016, ship traffic increased, and with it, tax revenues.