In a couple of previous blogs I wrote about Mexico’s drug war and increasing number of kidnappings and the possible effects on American retirees. Now there is another danger, swine flu.

Apparently Mexico has become the epicenter of this epidemic. The source of the disease was traced to a hog farm in the eastern state of Vera Cruz. At present there are over two thousand people with the disease and almost 200 deaths have been reported. Perhaps the death toll and spread of the disease can be imputed to the the country’s poor sanitary conditions. For example, there is virtually no place in the country you can drink tap water.  This causes many vulnerable tourists to come down with the famous “Montezuma’s Revenge” which is a form of diarrhea. A wife of a friend of mine came down with Shigella which is closely related to Salmonella  while traveling in Mexico. She almost died.

Mexico City is one of the most polluted cities in the world.  Ten thousand (10,000) tons of contaminants fall over the city daily. Tourists have been know to become ill by just breathing the air.

Recommendations to prevent being infected by swine infection by the virus consist of the standard personal precautions against influenza. This includes frequent washing of hands with soap and water or with alcohol-based hand sanitizers, especially after being out in public. People should avoid touching their mouth, nose or eyes with their hands unless they’ve washed their hands. If people do cough, they should either cough into a tissue and throw it in the garbage immediately, cough into their elbow, or, if they cough in their hand, they should wash their hands immediately. Vaccines that are effective against the current strain are being developed. Al of this may be hard because of Mexico’s poor sanitary conditions.

Fortunately, no cases of this disease have been reported in Costa Rica. The country is much cleaner than Mexico and its tap water is not contaminated. Cases of food poisoning and dysentery are very rare among retired people and tourists here. This is one more reason to chose Costa Rica over Mexico for retirement.

Every day I read four or five of Costa Rica’s top Spanish newspapers in order to keep abreast with what is going on here. After all it is my job as an expert on the country to be very well informed. I also imperative for me to be able to answer questions from my clients on my monthly Costa Rica relocation/retirement tours.

In the April 30th edition of Costa Rica’s La Nación newspaper there is a good article about the current state of affairs in Panama. For some time many publications, realtors and expatriates have been hyping Panama as “the” place to retire. Some go so far as to say that it is the world’s best retirement haven. Unfortunately nothing could be farther from the truth.

According to the most recent polls forty-seven percent of all Panamanians view crime as the most pressing problem. The number of homicides has increased the last couple of years: 444 in 2007, 593 in 2008 and at the rate things are going this year the latter number will be topped. Forty-two percent of the murders have to do with drugs and fighting among local gangs.

Poverty is another issue in Panama. The country has one of the worst distributions of wealth in Latin American which helps explain why nearly 30 percent of the population is living in poverty.

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.

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.

Over the last couple of years I have talked to many Gringos who have visited Medellín, Colombia. Some of them eventually moved there to live and retire while others only visited. Since I am in the relocation business I always  keep track of relevant data  to share with my readers.

The people I interviewed told me that it was less expensive to live in Medellín than Costa Rica. They bragged about the low real estate and food prices. I was also told that the city was far safer than when Pablo Escobar and his drug cartel were operating there. Single men have told me that the women there are as attractive as their Costa Rican counterparts and more accessible.

Let me try and  set the record straight. Some of what i say in the first paragraph is partially true but distorted. Yes, it is less expensive there but you really get what you pay for. Baking is more difficult  than in Costa Rica for foreigners. As far as safety goes, there is a civil war in some parts of Colombia and the country history of endemic violence. The violence there is on a par with that of el Salvador, Guatemala and Northern Mexico. Really none of these places are safe when compared to Costa Rica.

Let’s back to Medellín. At present there is a fight going on between rival drug  gangs with 6,800 police  and 500 soldiers trying to put an end to it. The escalation of violence there may spoil all of the efforts in the last few years to eliminate the stigma of the violence of the 1990s as reported by Colombian news sources and in the April 11, 2009 edition of Costa Rica’s la Nación newspaper.

There is crime in Costa Rica but far less than in other parts of Latin America. Furthermore, Costa Rica is most stable country in the region and has the oldest democracy in Latin America. Out of 209 countries in the world Costa Rica is number 47 in the world in its efforts to combat crime as reported by the Foundation for Growth (FFG).  Panama is 104, el Salvador 118, Nicaragua 135, Honduras 145,  and Guatemala 156.