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The Big Ditch: How America Took, Built, Ran, and Ultimately Gave Away the Panama Canal
An incisive economic and political history of the Panama Canal
On August 15, 1914, the Panama Canal officially opened for business, forever changing the face of global trade and military power, as well as the role of the United States on the world stage. The Canal's creation is often seen as an example of U.S. triumphalism, but Noel Maurer and Carlos Yu reveal a more complex story. Examining the Canal's influence on Panama, the United States, and the world, The Big Ditch deftly chronicles the economic and political history of the Canal, from Spain's earliest proposals in 1529 through the final handover of the Canal to Panama on December 31, 1999, to the present day.
The authors show that the Canal produced great economic dividends for the first quarter-century following its opening, despite massive cost overruns and delays. Relying on geographical advantage and military might, the United States captured most of these benefits. By the 1970s, however, when the Carter administration negotiated the eventual turnover of the Canal back to Panama, the strategic and economic value of the Canal had disappeared. And yet, contrary to skeptics who believed it was impossible for a fledgling nation plagued by corruption to manage the Canal, when the Panamanians finally had control, they switched the Canal from a public utility to a for-profit corporation, ultimately running it better than their northern patrons.
A remarkable tale, The Big Ditch offers vital lessons about the impact of large-scale infrastructure projects, American overseas interventions on institutional development, and the ability of governments to run companies effectively.
On August 15, 1914, the Panama Canal officially opened for business, forever changing the face of global trade and military power, as well as the role of the United States on the world stage. The Canal's creation is often seen as an example of U.S. triumphalism, but Noel Maurer and Carlos Yu reveal a more complex story. Examining the Canal's influence on Panama, the United States, and the world, The Big Ditch deftly chronicles the economic and political history of the Canal, from Spain's earliest proposals in 1529 through the final handover of the Canal to Panama on December 31, 1999, to the present day.
The authors show that the Canal produced great economic dividends for the first quarter-century following its opening, despite massive cost overruns and delays. Relying on geographical advantage and military might, the United States captured most of these benefits. By the 1970s, however, when the Carter administration negotiated the eventual turnover of the Canal back to Panama, the strategic and economic value of the Canal had disappeared. And yet, contrary to skeptics who believed it was impossible for a fledgling nation plagued by corruption to manage the Canal, when the Panamanians finally had control, they switched the Canal from a public utility to a for-profit corporation, ultimately running it better than their northern patrons.
A remarkable tale, The Big Ditch offers vital lessons about the impact of large-scale infrastructure projects, American overseas interventions on institutional development, and the ability of governments to run companies effectively.
- GenresHistoryNonfiction
440 pages, Paperback
First published January 1, 2010
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Displaying 1 - 4 of 4 reviews
June 23, 2021
Very interesting, well researched and comprehensive. Still digestible without a full understanding of the methods of economic analysis. At times overwhelming with data and counter-factuals, although I understand those are necessary facets of a thorough study. Provided good entree to the modern history of the isthmus and the deep tie between the state of Panama and the Canal.
March 9, 2026
Even for economics literature it is a bit dull at times but it does comprehensively and fairly cover a topic that seemingly does not have a wealth of literature, and after reading this book that is perhaps deserved. Either way, it's a good read for the curious.
March 15, 2016
This book is not for everyone. If you don’t understand economics, there are helpful graphs, but I don’t imagine someone disinterested would find them reason enough to wade through a book written from an economic perspective. They also cover a LOT of information. I found myself interested in the economic impact for OTHER Latin American nations. Though Maurer and Yu focus on a few different industries, they don’t discuss foreign investment into those particular industries at all which seems like an insular approach. I almost feel that this book could be broken down into a series of books, but I imagine the audience for that might be hard to find. Either way, I enjoyed it. Well written, well researched, and informative.
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June 18, 2016Fascinating read. I have to get to Panama to see this thing!
Displaying 1 - 4 of 4 reviews