The modern Panama City expanded with the construction of the Panama Canal, which began in 1904. The United States, which then controlled the canal, managed the capital city as well. At that time, steps were taken to eliminate malaria and yellow fever, water and sewage systems were built. Today, Panama City is an international financial center with countless skyscrapers. In the historic district of Casco Viejo, however, many reminders from colonial times have been preserved. The city's economy is heavily dependent on the Panama Canal freight services. Some may think that modern high-rise architecture goes hand in hand with a high living standard. This is misleading. Panama City, despite the fact that it looks modern, still belongs to the third world and is no match for the modern city centers of Europe and North America.
