Casco Antiguo (also referred to as Casco Viejo or San Felipe) is a UNESCO World Heritage site that is quickly being revitalized and now hosts some of the city’s best restaurants and Latin jazz clubs. The neighborhood is where Panama City was founded in 1673 after the original Pacific settlement (Panama Viejo) was sacked by the pirate Henry Morgan. It remained the center of Panamanian life for nearly 300 years, until the 1930s, when, like many old quarters in Latin America, Casco Antiguo declined as Panama's upper crust moved to the suburbs.
The reasons for the exodus are typically attributed to the emergence of the automobile, which made suburban living feasible and downtown living more difficult. In the Casco's case, these pressures were exacerbated by the fact that the boundaries of the Panama Canal Zone, which was off limits to Panamanians, were drawn so as to pinch the Casco off from the rest of the city, leaving only one narrow road for entrance and exit.
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