Panama is a country located in Central America on the isthmus connecting North and South America. It is bordered by Costa Rica, Colombia, the Caribbean Sea, and the Pacific Ocean. The geography of Panama is mountainous. The government system is a constitutional democracy. The chief of state and head of government is the President. Panama has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Panama is a member of the Central American Common Market (CACM).