The Big Ditch: How America Took, Built, Ran, and Ultimately Gave Away the Panama Canal

The Panama Canal's creation in 1914 had a significant impact on global trade, military power, and the United States' role on the world stage. The Big Ditch chronicles the economic and political history of the Canal, from Spain's earliest proposals in 1529 to the final handover to Panama in 1999. The authors show that the Canal produced great economic dividends for the first quarter-century, but by the 1970s, its strategic and economic value had disappeared. When the Panamanians took control, they switched the Canal from a public utility to a for-profit corporation and ran it better than their northern patrons.

Format: Paperback / softback
Length: 440 pages
Publication date: 18 July 2023
Publisher: Princeton University Press

The Panama Canal, a monumental engineering feat that officially opened for business on August 15, 1914, has had a profound impact on global trade, military power, and the United States' position on the world stage. While its creation is often seen as a symbol of American triumphalism, authors Noel Maurer and Carlos Yu present a more nuanced account in their book, "The Big Ditch." Through a comprehensive examination of the Canal's influence on Panama, the United States, and the world, the book delves into the economic and political history of this iconic infrastructure project.

The authors reveal that the Canal initially brought about significant economic benefits, despite massive cost overruns and delays. The United States, leveraging its geographical advantage and military might, captured the majority of these advantages during the first quarter-century following its opening. However, by the 1970s, when the Carter administration negotiated the eventual turnover of the Canal back to Panama, the strategic and economic value of the Canal had diminished.

Despite skeptics' doubts about Panama's ability to manage the Canal, the Panamanians proved themselves capable when they assumed control in 1999. They made a remarkable decision to turn the Canal from a public utility to a for-profit corporation, and under their leadership, the Canal was run more efficiently than it had been by its northern patrons.

"The Big Ditch" offers valuable insights into the impact of large-scale infrastructure projects, American overseas interventions on institutional development, and the effectiveness of governments in running companies. It serves as a reminder of the complex and multifaceted nature of historical events and the enduring legacies they leave behind.

Dimension: 235 x 156 (mm)
ISBN-13: 9780691248073