Military expenditures - percent of GDP: 1.6% (FY97)

Military - note: on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of special police units to counter acts of "external aggression"

@Panama:Transnational Issues

Disputes - international: none

Illicit drugs: major cocaine transshipment point and major drug-money-laundering center; no recent signs of coca cultivation; monitoring of financial transactions is improving, yet Panama has failed to prosecute anyone for money laundering - official corruption remains a major problem

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PAPUA NEW GUINEA

@Papua New Guinea:Introduction

Background: The eastern half of the island of New Guinea - second largest in the world - was divided between Germany (north) and the UK (south) in 1885. The latter area was transferred to Australia in 1902, which occupied the northern portion during World War I and continued to administer the combined areas until independence in 1975. A nine-year secessionist revolt on the island of Bougainville ended in 1997, after claiming some 20,000 lives.

@Papua New Guinea:Geography