In the same way that the virtual corporation has become the new model for global commercial enterprises, the virtual nation will become the model for emerging nations like Panama.
Less developed countries that focus on production derived from land (e.g. Iraq) may still desire territory; however, in the new global economic order, economic inputs have become mobile.
The new virtual nation would rather conquer the world market than acquire territory. The virtual state that has downsized its territorially-based production capability is the logical consequence of this freedom. More here.