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Panama Canal Construction: Challenges and Economic Impact Essay (Article)

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Reasons for Construction of the Panama Canal

Connecting the Atlantic and Pacific Oceans has been a long-term dream of many people involved in shipping. This would open up access to many new types of deliveries and transportation of people, which would contribute to the development of trade. Land routes that passed through some regions of South Africa at that time were not always safe and could take significant periods of time. Using the Isthmus of Panama to connect the two oceans was an optimal solution that could provide significant economic benefits.

Incidents Leading Up to the Event

Initial attempts to build a channel were associated with many difficulties, including financing. The French began construction that resulted in the death of many workers and was unsuccessful. After this, in the early 1900s, the United States intervened in the construction, which was faced with the problem of malarial mosquitoes (Mills 41). A key role in resolving this issue was played by the team of William C. Gorgas, who managed to eradicate most of the insects (Mills 78). After overcoming such significant challenges, construction began more steadily.

Events During Construction

The construction of a complex engineering facility was associated with the importance of creating a complex system of locks and dams. One of the significant points in the process was that the builders had to excavate many million tons of earth to obtain sufficient space (Mills 66). This entailed changes in the landscape that made it possible to fully construct all critical buildings. The key aspects were the use of a system of locks and gravitational effects that would contribute to changes in water levels.

The Results of the Construction

The effects of the construction of the Panama Canal were rapid and considerably changed the flow of trade in the world. Ships could significantly shorten routes and make them safer, which contributed to an improvement in the economic situation. This structure remains a critical aspect for the movement of ships between seas and oceans, allowing for increased trade volumes and the creation of new opportunities for cooperation.

Work Cited

Mills, J. Saxon. The Panama Canal. BoD–Books on Demand, 2020.

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IvyPanda. (2025, June 14). Panama Canal Construction: Challenges and Economic Impact. https://ivypanda.com/essays/panama-canal-construction-challenges-and-economic-impact/

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"Panama Canal Construction: Challenges and Economic Impact." IvyPanda, 14 June 2025, ivypanda.com/essays/panama-canal-construction-challenges-and-economic-impact/.

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IvyPanda. (2025) 'Panama Canal Construction: Challenges and Economic Impact'. 14 June.

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IvyPanda. 2025. "Panama Canal Construction: Challenges and Economic Impact." June 14, 2025. https://ivypanda.com/essays/panama-canal-construction-challenges-and-economic-impact/.

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IvyPanda. "Panama Canal Construction: Challenges and Economic Impact." June 14, 2025. https://ivypanda.com/essays/panama-canal-construction-challenges-and-economic-impact/.

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