The Panamanian flag was designed by Don Loving Manuel Encarnacion and created by Dona Maria Ossa of Amador. The design symbolized the two political parties, the liberal party represented by the color red and the conservative party represented by the color blue. The stars represented the rectitud, the force and the authority characteristics of the development of the country.
The constitutional assembly adopted the flag provisionally in 1904 with Law 64. The flag was fully adopted in 1925 by the national assembly and subsequently ratified into law in 1941.