Panama Canal
France began work on the canal in 1881, but stopped due to engineering problems and a high worker mortality rate. The United States took over the project in 1904 and opened the canal on August 15, 1914. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
History of the west coast of North America
The countries of Central America continued to struggle politically during this time (with perhaps the notable exception of Costa Rica), and began to expand agriculture, particularly in coffee and bananas with investment and substantial control by the United States. The establishment in 1903 of the newly independent nation of Panama (under pressure from the United States) led to the creation of the Canal Zone and opening of the Panama Canal in 1914. The opening of the Canal benefited the region economically as trade with the Eastern United States and Europe became far easier.