In democratic, integrated political systems characterized by a sharing of fundamental social values and “primitive beliefs” among the population, elections serve a salutary purpose. They not only reaffirm the commitment and involvement of the citizen to the prevailing political system by the ritual act of voting participation, but simultaneously legitimize the means and processes by which political values are authoritatively allocated (Milnor, 1969: 1-2). Elections and voting “draw attention to common social ties and to the importance and apparent reasonableness of accepting the public policies that are adopted (Edelman, 1964: 3). For these reasons, elections serve to integrate the citizen into the polity.

Recent research on U.S. diplomacy in Latin America has indicated the prominent role of the State Department in gaining for American airlines a major share of interamerican aviation in the mid-1920s. The department's campaign to “de-Germanize” commercial aviation in the western hemisphere immediately prior to and during World War II has also drawn the attention of historians (McCann, 1968; Newton, 1965; Conn, 1960; Burden, 1943). Yet little analysis has been directed to U.S. policy in the late 1920s and early 1930s, crucial years for the shift of power away from European-supported commercial airlines in Latin America to Pan American Airways.

One of the fundamental difficulties in the study of Latin American politics by North American scholars has been the attempt to apply the political experience of the United States (and, to a lesser extent, that of the developed countries of Europe and Asia) to that region. In attempting to interpret Latin America’s political patterns and understand her political difficulties, emphasis has been placed historically on such visible features as the instability of national governments, the lack of adequate party systems, the dysfunctional role of the military, inadequate constitutions, hierarchic social structures and a variety of deficiencies in the region’s political culture. In proceeding along these lines, analysts have been working from the implicit, although I believe unconscious, assumption that the Latin American nation-state constitutes a large, geographically dispersed polity. Until recently there has been very little effort to even study the political processes of the Latin American city, much less attempt to understand national politics in light of the region’s peculiar urban culture.

Panama is a land of trade. For four and a half centuries, it has been a funnel for exchange between Europe and the west coast of South America and between the Atlantic and the Pacific. This article examines the place of retail trade in the Panamanian economy, with an emphasis as much cultural and social as it is economic.