There is a publication which is hyping Ecuador and some of the other less than desirable locations as the new retirement havens. I think people have to open their eyes and not be believe all of the hype about these countries. Cheap real estate and prices are not synonymous with a good lifestyle and stability. One of the most important factors in choosing a country to retire or invest is political stability. Costa Rica has the longest standing democracy in Latin America which makes it an excellent choice for retirement and investment.

Let’s look at what happened in Ecuador yesterday as well as the country’s track record. Ecuador declared a state of emergency as hundreds of police protesting wage cuts blocked roads, shut the airport for several hours and sprayed teargas on President Rafael Correa. The president was taken to a hospital after scuffling with the police and was holed up as officers surrounded the facility, refusing to let his personal security forces escort him out of the building. Looters ransacked banks, supermarkets and shopping malls in the port city of Guayaquil, the country’s largest, and 51 people were injured amid the violence, the Red Cross said.

Ecuador, which has defaulted on $3.2 billion of international debt since 2008, has seen three presidents ousted in the past 13 years. Correa, a 47-year-old economist who took office in 2007, brought a modicum of stability to the politically-tumultuous nation of 14 million. The opposition in recent weeks has stepped up its attacks as economic growth trails its neighbors and Correa’s threats to expropriate assets in the oil industry, the country’s biggest, deter private investment. Correa also angered opponents by pushing through an oil law by decree and ignoring lawmakers’ objections to his plan to broaden the state’s control over universities and local budgets. South America’s seventh-biggest economy grew 1.9 percent in the second quarter from a year earlier, the worst performance except for Venezuela, which is in recession.

Who in their right mind would retire to a country in such bad shape? Nevertheless, a certain publication continues to encourage people to flock there because of the great lifestyle and low cost of living Give me a break!

Recently there has been an air of pessimism regarding the economies of Europe and the United States. European countries are in the process of major cutbacks to try and reduce their deficits. In the U.S. Ben Beranke, the president of the Federal Reserve stated on July 21st that “The economic prospects for the States are uncertain, economic growth would be moderate, and the recovery in the job market would be slow. On the other hand in Latin America things look a lot better.

The World Bank is painting an optimistic picture for Latin America. According to CEPAL (Latin American Economic Commission) the region will experience a 5.2 percent growth in 2010. The rate predicted is double that of the United States and four times that of Europe. At the same time Latin America’s public debt is half that of the United States and Europe. In terms of deficits I would like pointed out that gross national product is an average of 2.3 percent in the region while the GPA in the U.S. Is 10.6 percent and 6.8 percent for Europe.

Using the aforementioned figures Luis Alberto Moreno, the president Of the Interamerican Development Bank (BID), published an article titled, “The Decade of Latin America.” In it he states that, “Our region has a historic opportunity to join the Asian countries in the vanguard of the world economic recovery.” The executive secretary of CEPAL shares the same optimism and emphasizes the vigorous economic and health financial recovery of the region.

During my frequent lectures, private consultations and on my monthly retirement tours I am constantly asked about the safety of investing in Costa Rica. I am quick to emphasize the country’s stability, the fact that we were not hit nearly as hard as the U.S. and Europe by the the economic downturn and that we are actually in better shape as the figures in this article clearly demonstrate.

On my monthly retirement and relocation tours I am always asked questions about Nicaragua. There is no doubt that some parts Nicaragua are more affordable than Costa Rica. However, there are homes in San Juan del Sur which cost almost around a half of a million dollars. I saw them featured on the International Home Finders Channel. So, the country isn’t as cheap as it is made out to be. The bottom line is that prices are not the main factor when considering Nicaragua as a place to live. Nicaragua has been striving for years to become the “next Costa Rica.” However, the country has a long road to travel to even be considered a contender.

Fist and foremost, Nicaragua’s political situation is downright scary. According to the country’s constitution President Daniel Ortega cannot seek re-election next year, but that’s not going to stop the onetime leftist revolutionary. Recently, he won a ruling from a Supreme Court stacked with his supporters that Article 147 of the constitution, which bans the re-election of a sitting president, doesn’t apply to him. Ortega is setting the stage to rule Nicaragua for a long time himself in defiance of the constitution. This is the only country in the world where the court has declared the constitution unconstitutional.

Even more frightening is the fact that Ortega supports dangerous crackpots like Venezuela’s President Hugo Chavez and Iranian leader Mahmoud Ahmadinejad. Ortega’s links to Chavez have been strong and lucrative and they include a juicy deal in which Venezuela sells Nicaragua crude oil at half price, which Ortega can resell, using the profit for whatever he wants. Furthermore, Nicaraguan President Daniel Ortega is accused of dipping into Venezuela-funded coffers to bribe, buy and scatter the weakened opposition as part of his push for a second term.

More and more baby boomers are choosing to relocate or retire in Costa Rica. This should come as no surprise because of the country’s stellar and squeaky-clean international reputation. Costa Rica has more American residents per capita than any other country outside of the U.S. – they can’t be wrong.

Lately there has been a lot of hype by international retirement magazines and private parties promoting Medellín, Colombia and Cuenca Ecuador as as more affordable versions of Costa Rica. Medellín is one of Colombia’s most beautiful cities and does have some things to offer. However, you are comparing one city and a country that has some serious issues including a civil war with peaceful Costa Rica. I have some friends who have moved to Medellín and like it. However, they are people who couldn’t find success and happiness in Costa Rica due to a variety of factors and moved on hoping to improve their lives.

Despite all of the hype Cuenca is not all that it is cracked up to be either. Again you are just looking at one city and not the whole country. If you are an older retiree and have any type of breathing problem you are bound to have problems at 8,200 feet above sea level. I know of several older Americans who had problems in Costa Rica’s Central Valley which is only a few thousand feet above sea level. They would probably drop dead in Cuenca due to the rarefied air. Also, the average temperature is 58 degrees which may make the place too cold for those seeking warm weather. On the other hand, the average year-round temperature in Costa Rica’s Central Valley is around 72 degrees and purportedly one of the best climates in the world according to several publications. Costa Rica has almost any micro climate from which to choose. Which place would you choose to live?

People talk about the affordability of Cuenca and Medellín. The quality of life is much better in Costa Rica. Don’t make the mistake of confusing affordability with quality of life. The bottom line is that you get what you pay for. Furthermore, Costa Rica is the ONLY country in Latin American with a time-tested organization dedicated to help foreigners who want to relocate there. The Association of Residents of Costa Rica offers one-of-a-kind services to help you more here almost seamlessly. That is why I include their informative seminar as part of my popular monthly relocation/retirement tours.

Finally, I talked with a good friend of mine who has the largest Latin American travel agency based in the United States told me that despite what people say Medellín has a serious crime problem and Cuenca is downright depressing. Furthermore both Colombia and Ecuador have standing armies which Costa Rica does not.

My friend’s business is to know all of the tourist destinations in Latin America and be an expert on the subject. I respect his opinion highly and consider him an expert on the subject. In fact, due to his expertise he has been a consultant for the U.S. in Latin America.

Costa Rica doesn’t have the near the number of retirees that Mexico has, but it is 1000 times safer

Mexico currently has around 1,000,000 retirees because of its proximity to the U.S. The Mexican government says that it wants to lure 5,000,000 retirees form the U.S.and Canada in coming years. This is really a “pipe dream” since an epidemic of violence is extending its evil tentacles throughout the country. A battle for control of the profitable drug trade by the cartels has brought the drug war closer to the heart of Mexico, terrifying the city of Cuenravaca. Known for its charming Spanish-colonial downtown and for posh homes with lush gardens and swimming pools, Cuernavaca, “The City of Eternal Spring,” has always been has been a favorite retreat for Mexico’s rich and powerful and U.S. retirees.

Unfortunately drug-gang violence has soared claiming nearly 23,000 lives throughout Mexico, with Cuernavaca becoming the latest front. “We hadn’t seen this violence before,” said Dawn Housand, a 60-year-old Boston native who moved to Cuernavaca to retire more than 10 years ago looking for a quiet place to live. “I don’t have the money to move. If I did, I would leave.”

This is a city that depends on tourism and what violence has done is collapse our economy,” said club owner Andres Remis, president of the Cuernavacan Nightclubs and Bars Association. “The only thing that we can do is to wait for one of the groups to win or for the army to win.”

More than 50 people have been killed this year in Cuernavaca’s gang battles.

As I have mentioned before at the rate things are going in Mexico, the country will be hard press to attract many retirees. On the other, Costa Rica is fast becoming the number one retirement haven in Latin America. When you listen to the news or television and Costa Rica is mentioned, all that you really hear about is the country’s natural wonders and other positive information. The country is not crime free but fortunately doesn’t suffer from the endemic violence that plagues Mexico and some of the other countries in the region.