Panama City was a focal point of the 1989 U.S. invasion of Panama, which removed Panamanian dictator Manuel Antonio Noriega from power. El Chorrillo, a poor neighborhood near the country's military headquarters, was devastated by the invasion. Many tenements were destroyed and thousands of people were left homeless. Although the area has since been rebuilt, it still suffers from high poverty and unemployment rates.
Rapid population growth in the 1990s has severely strained Panama City's services, requiring substantial investments. In particular, automobile, bus, and truck traffic creates gridlock conditions during commuting hours. Several highways were begun in the mid-1990s to alleviate traffic congestion. Other challenges still facing municipal planners include an outdated telephone system, insufficient electrical power, and water shortages.Microsoft® Encarta® Online Encyclopedia 2001
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