Kidnapping has become a popular business in Mexico, not just in the north of the country but especially around Mexico City.

Having lived and studied in Mexico over thirty years ago I developed a real love for the country and thought I would eventually live there. However, I discovered Costa Rica and my plans changed immediately.  It was love at first site. Given what is happening in Mexico at this time I made the correct decision.

The media has been saturated with stories about the drug cartels and  their battle with rival gangs and the Mexican government’s efforts to eradicate this growing menace. In fact, this week President Obama met with Mexico’s president Calderón in an effort to seek a solution to this problem.

Unfortunately, there has been another offshoot of this dangerous situation. Kidnapping has become a popular business in Mexico, not just in the north of the country but especially around Mexico City. Up till now the target has mostly been Mexican citizens but is only a matter of time before American retirees become the victims of this growing trade.

According to a CBS report about 70 people are kidnapped per month and this number is growing. The victims are not just the very rich but anyone with cash is now in danger. There is general climate of fear with is permeating  the society. This burgeoning problem has given birth to several business. Cars are being converted into armored  vehicles at a cost of between $30 to $60,000 dollars. Businessmen feel this is a small price to pay to protect themselves and their families. There are even stores which sell all styles of bullet-proof clothing with some garments costing as much as $5,000. In addition, almost everyone who can afford it has private body guards. In the CBS report the lawyer who was interviewed had four armed guards with their pistols drawn at all times.

Indeed the situation in Mexico has deteriorated to the point that the country is considered to be as dangerous a Pakistan by the U.S. State Department. It surprises me that one international retirement publication continues to hype the country as the best place to live in Latin America. I think the facts speak for themselves.

This one-time retirement haven for people from the U.S., Canada and other countries is just too risky. What a shame!

Fortunately, Costa Rica still awaits those who to retire south of the border. You seldom hear anything bad about Costa Rica in the foreign media. If the country is mentioned it is usually in connection with its natural wonders and destination as a tourism and retirement haven.

Aquí se cura todo

I was watching the CBS Evening News on satellite the other night and it was a real drag. First, they started talking about the reemergence of hate groups in the U.S. because of the economy and the fact that the country elected its first black president.  The next story was about protests on tax day.  Then they talked about massive layoffs. Lastly, they alluded the number of multiple shootings that have happened recently in the U.S. And how frustrated people are there.

I love America and almost everything I have achieved in life is because I was born there. However, after watching the news from the U.S. I really feel blessed to live in Costa Rica. Don’t get me wrong Costa Rica is not without its problems but they are dwarfed with what is happening in the U.S. People here seem to be much more carefree and enjoy life with less. It is an uplifting feeling to be removed form all of the negativity that is so widespread in the U.S. If you have lived here or are are retired in Costa Rica you will know what I am talking about.

The Costa Rican Tourism Institute or ICT just came out with a new slogan I really like because it sums up the incredible lifestyle here. They say “Aquí se cura todo” which means “Here, everything gets cured.’

For those of you not familiar with the term “voluntary simplicity,” it is a lifestyle made popular in the book Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence, a New York Times bestseller written by Vicki Robin and Joe Dominguez in 1992 and updated in 2008.

“Dominguez, who died in 1997, left his Wall Street job as a technical analyst in 1969, when he was 31, and began living off the investment income from a $70,000 nest egg—about $6,000 to $9,000 a year. He and Robin devoted their lives to teaching people how to change the relationship they have with money and live well on less. Many of those who followed the program saw their spending reduced 20 to 25 percent in six months, says Robin, while some “super-savers” cut expenses 60 to 80 percent.  Your Money or Your Life became the bible of the so-called voluntary simplicity movement, which had started in the 1960s and has roots in frugality, environmentalism, social justice and spirituality.”

Most costarican shop for their fruits and vegetables at the weekend farmer’s markets which are held all over the country.

Now hard times are hitting older Americans directly in their wallets. With the nation’s jobless rate spiking at 8.1 percent and likely to continue rising, nearly 5.6 percent of workers 55 and older are unemployed, and many are struggling to find jobs. Those on fixed incomes have seen their retirement savings shrink by 30 to 40 percent in the market meltdown. No wonder the country is in a belt-tightening mood, with consumer spending down to the lowest levels in decades.

One possible solution to the economic woes is to move offshore to a country like Costa Rica, the world’s #1 retirement haven. Most Costa Ricans have been practicing voluntary simplicity all of their lives. Because of their limited earning power they are forced to live with less. Most shop for their fruits and vegetables at the weekend farmer’s markets which are held all over the country. Many buy their clothes at used clothing stores which import their merchandise form the United States. Furthermore, they pay virtually nothing for utilities because heat and air conditioning are not necessary in many parts of the country.  A lot of the locals don’t own cars and take public transportation which is dirt cheap. Costa Ricans often live with other family members with everyone contributing their share to household expenses.  They do all of this and still enjoy a great quality of life for far less money than most Americans.

The people here also take advantage of the government’s “cradle to grave health care system” . The cost is usually under $30 per month. You would be hard-pressed to find health insurance in the States for less than a few hundred dollars per month. Costa Rica also has one of the highest longevity rates in the world and boasts a large number of centenarians.

Much of what I mention above are suggestions made in Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence . By moving to Costa Rica people can live well. The average local makes around $400 per month. A pension from the States combined with trying to live like the Costa Ricans  can enable you to live very well for a lot less than you would spend at home.

On my monthly relocation/retirement tours I show people how they can live well in Costa Rica without sacrificing their present lifestyle. In fact, they will have much better lifestyle and be happier here.

Auto Mercado is Costa Rica’s high-end market that carries most brand name products from the United States and Canada.

Last night I had a small dinner party for another couple and my son and his girlfriend. In all there were six of us. We had Rainbow Trout Lasagna as a main course. Yes, you heard right.  Fresh trout and salmon are available in some Costa Rican supermarkets. We also had salad and garlic bread. For dessert we had passion fruit low- cal mousse.

Earlier in the day my girlfriend  and I went to the supermarket where we purchased all of the ingredients for our feast. We shopped at the Auto Mercado which is Costa Rica’s high-end market that carries most brand name products from the United States and Canada. We bought a little over two pounds of Rainbow Trout, fresh vegetables, fruit and canned goods. The bill was a little over $30.  For that amount, we received  was more than enough food to feed six people. In fact, there was enough left over for lunch and dinner the following day.

My point here is that you can entertain friends and family for very little in Costa Rica even if you go to the most expensive supermarket.  Imagine what you can save by going to one of the weekend farmers market and less expensive supermarkets where most Costa Ricans do their shopping. This is an example of how affordable Costa Rica is for foreigners, especially retirees. I always go great lengths to explain the affordability of the country to potential residents who take my monthly retirement tours and at seminars where I speak.

Corruption is also another big issue in Panama.

(1) Stability: A tumultuous political history starting with the succession from Colombia and ending with Operation Just Cause when the country was invaded. Costa Rica is the most enduring democracy in Latin America and the MOST stable.

(2) Weather: Living in Panama City is like living in Florida. Oppressive heat and high air conditioning bills. Not exactly what cost-conscious retirees have in mind.

(3) When the U.S. Pulled out in 2000 Panama had no other choice but to push tourism and retirement. Prior to that the country wasn’t a place  many people went to retire.

(4) Infrastructure: is not good outside of Panama City.

World-class infrastructure. Are they talking about Zurich . . . ?
Panamanian authorities are actually addressing the evils arising from an outdated infrastructure, failing to keep pace with the furious development that is taking place.  The housing lobby is stiffly pressing the government to improve, among others, the overstressed waste management, sewage and drinking water systems.

Daily receiving 300,000 cubic meters of raw wastewater, Panama Bay is the biggest toilet in the city.  The authorities have already approved the construction of one $350 million modern sewage system that will lead the way to clean up the awfully smelly and badly polluted bay.  Completion is planned within three years, but considering that most public projects run here in slow motion, it could take more time in order to deliver.

(5) The only cool climates are altos de María and Boquete. Both places are boring. Boquete has a terrible problems with wind at during certain times of the year.

(6) More choices of places to live and climates in Costa Rica than Panama.

(7) Here is one what one person said who has spent time in both places. ‘Cops of various kinds everywhere, constantly stopping people randomly to check your credentials etc. We had a scary run in with an immigration cop who threatened us and extracted a bribe for us (Long story but we basically just made an innocent mistake and the guy took advantage of that to give us a hard time.) The nature (parks, forests) there is more “tucked away” in parks as opposed to being visible everywhere like in Costa Rica. People didn’t seem as friendly, overall, as in Costa Rica.”

(8) Medical Care: Costa Rica has better medical care (Cima and Bíblica are the best in Central America) and hospitals and more years dealing with expatriates.

(9) Crime: is bad in Panama and they don’t publish their statistics for obvious reasons. Here is what one resident thinks of the place:

“One of the reasons is that my wife is afraid to leave the house because of the rapidly rising crime rates, especially the murders and killings that saturate the television stations every night.  It has been said that the largest number of assassinations never make it to the news room because the government is covering up in order to protect the image of Panama as a retirement paradise.  Another is the incredible deterioration in the quality of life in the capital city in the last five years.  I have neighbors who are extremely inconsiderate of their co-owners and insist on making life difficult for others in their pursuit of self satisfaction, “the world be damned, I want mine” attitude.  You can call it “juega vivo” to the extreme. It gets tiring after a while to have to be fighting the service providers such as the banks, cable companies, phone companies to keep them from abusing their customers with incompetent service.  It is almost as if it were a national obligation to stick it to the other guy lest you be considered…..what is the term?  A pendejo (coward) because you are not fighting tooth and nail to exercise one upsmanship on all with whom you come in contact throughout the day to day dealings that are required. This is especially true when you see the maniacs driving on the roadways of the capital. They could care less who gets hurt because of their negligence.”

The country beginning with the government from the highest to lowest level is totally corrupt.  The business sector probably less so. That isn’t to say that there are no honest people, there are but they have no power to make changes.  It isn’t hard to imagine that if improvements are not made in reducing corruption, the consequences of political upheaval will make living here more unbearable.

I hope this satisfies some of the curiosity as to why I would want to leave. I sincerely hope for the sake of the future Panamanians, that this can be turned around.

Also:

A) According to Panama America, one local newspaper, the statistics reported by the Technical Judicial Police (PTJ) show high levels of crime, reflecting a 32% increase during the first two quarters of 2007. The General Treasury of the Republic reported 411 violent deaths (Murders, Suicides, Deaths from legal intervention and/or from undetermined intent and Unintentional Firearm Fatalities) within the 21 Corregimientos (Villages) of the metropolitan area. http://www.pa-digital.com.pa//archive/08132007/ciudad02.shtml

B) Counting with thousands of members, 209 gangs nationwide (130 in the capital) are now bigger and deadlier.  One hundred forty-three juveniles were killed in 2006.  The rising murder rate can be directly linked to the soaring drug abuse.  Panamanian juveniles have the highest narcotics consumption rate in Central America.  The average age in which children are introduced to drugs is 12 to 14 years old, but some risk groups are exposed earlier in life.

C) The World Bank ranks Panama as Latin America’s second-worst country in wealth distribution.  The earnings of the upper economic sector, the so-called “Rabiblancos” (popular nickname for the wealthier families), account for 60% of the national income; while those at the lower end of the pyramid, 20% Panamanians, account for just 2%!  Poverty is evident at both urban and rural areas. T the Third National Report of Human Development of the Program of the United Nations (PNUD) stated that 1.4 million Panamanians, 40% of the population, live in poverty and that 16% live on less than $1.00 per day.

D) This issue could very well explain why crime is hiking higher, fueled by 8% rate of unemployment (10% in urban areas and Central America’s highest unemployment rate among  juveniles and young adults 16 to 25 years old); plus 24% rate of informal employment (30% in 2005) and the highest shadow economy rate in the region (60% of the national GDP.)  Panama’s economic progress should not be coldly measured by GDP growth.

(10) Affordability: here is another expats take on the cost of living.

“ In Panama City I think it reasonable to expect to live on $2,800/month including rent or mortgage payment for an above average life style; $2,000/month pretty bare bones with some socializing; $4,000 high end life style. Someone else may have figures on living in a small town like Chitre, Las Tablas or Volcan.  My impression of living in Boquete, El Valle, Altos del Maria is that they would be at least on a par with PC as real estate is high there, and particularly in El Valle and Altos del Maria auto expenses would be high as you would need to travel to PC for most shopping or entertainment.

Probably more than I should share about or life here, but I get weary of the claims I read of what a great life you can live in PC for peanuts. People who come here with that attitude are doomed for disappointment and are among those who cut and run after a year or two. Those who are contented here are those who are here because they love it – warts and all. “

High-end real estate property at bargain prices? They should be kidding!
Three years ago, the average ocean front-side condo at Balboa Avenue was priced at $450 per square meter.  Nowadays, prices have skyrocketed up to $3,500 and even higher in certain building complexes, up to $5000M2!

In a recent report analyzing Panama’s housing boom, The Financial Times warned about the fact that the median sales price of Panama City new condos is actually getting higher than the median sales price of existing single-family homes in America!  According to the London’s newspaper, the “baby boomers” could start to lose interest in buying a second home or a two-bedroom apartment in Panama City for $224,500 or more, which not long ago could be bought for $60,000 or $80,000. http://www.pa-digital.com.pa/archive/08272007/finance01.shtml The National Association of Realtors reported that US median national home price was $224,500 in August and prices are going down still further. http://online.wsj.com/article/SB119072589181638646.html?mod=hpp_us_whats_news

(11) Corruption:
Corruption is also another big issue here.  We are not just talking about bribe-prone traffic officers, perhaps the main complain of driving resident and visiting foreigners.  One recent survey about this subject, done by Dichter & Neira Latin Research Network, reported that 81.2% Panamanians consider the actual government as mostly lacking and/or inefficiently combating corruption.  71% consider the National Assembly as the most corrupt political body, while 65.4% perceive the Supreme Court as corrupt.  Corruption has long time surpassed baseball as the national pastime.