Costa Rica Drop Outs in Panama and Nicaragua

In past articles about retirement in Costa Rica I have talked about all the country has to offer for Americans who want to move here: great weather, excellent health care, friendly people, NO army or terrorism, beautiful beaches, mountains and countryside, excellent housing options, an incredible lifestyle and a whole lot more. Unfortunately living here is not for everyone. I would be lying if I said it was.

Some people discover after living here for a while the country just isn’t for them. Most return to the U.S. but some choose to move to neighboring Nicaragua or Panama instead. What I have noticed is that the people who choose these country’s are usually the misfits from Costa Rica. Most often they are the ones who say they can’t afford  to live here and are willing to sacrifice Costa Rica’s great quality of life for a downgrade in the nearby countries. With the exception of two people, I don’t know any foreigners with a lot of money or who were successful here who moved to either Nicaragua or Panama.

Others who moved to the neighboring countries were troublemakers or couldn’t get along with anyone or just had to leave  because of legal troubles. One chap I met got involved with an under age woman and had to flee Costa Rica. Another guy represented an investment group that defrauded its investors. While another person was an alcoholic and  got into a lot of problems and made many enemies here.

I realize I am generalizing but what I just said is more the rule than the exception. Both countries seem to be receptacles for undesirable  Gringos with a lot of baggage.

Mexican “Bureaucrazy” worse than Costa Rica’s

A lot of Americans who retire in Costa Rica the country’s maze of bureaucratic is enough to drive them crazy. Mexico is another place many Americans choose to retire. Lately violence has reached epidemic proportions there which his scaring many potential retirees away. However, another factor the country’s endless bureaucracy  is another factor which may also contribute to driving potential retirees to away and to other countries like Costa Rica.

Read this article from the Los Angeles Times to get an idea of  how frustrating Mexico’s bureacracy can be.

Reporting from Mexico City — Arturo Sandria visited government agencies not once, not twice, not three times. (Hint: Try an even dozen.) He stood in mind-numbing lines, filled out forms, took another number, filled out more forms and, he says, paid $250 in bribes.

But after six months, he was still in pursuit of his prize: a permit to paint his house.

“Tedious,” Sandria declared of his paper chase. “They ask for a lot of things that aren’t really necessary.”

On a recent day, Sandria, a 50-year-old electronics technician, waited in (yet another) line at (one more) overcrowded government agency. He clutched a dogeared manila folder stuffed with documents outside a hulking downtown branch of Mexico City’s government, his 13th such visit.

“There could be three or four more,” said Sandria, a stocky man in a red Miami Heat jacket. “I could get up there and they could say, ‘You’re missing a check mark or a period.’ “

Sandria’s ordeal in red tape is excruciatingly familiar to many Mexicans, who long ago learned to weather a day-to-day obstacle course of bureaucratic requirements, or tramites (TRAH-mee-tehs), that would probably send most Americans into fits of hair-pulling.

As in the United States, there are tramites for opening a business, registering a car, building a porch. But what puts Mexican red tape in a league of its own are the reams of required paperwork — identification, proof of residence, birth certificates, deeds and titles — and a bureaucracy that can be as picky as it is ponderous.

Too often, many Mexicans complain, only bribes seem to get the creaky wheels of government turning.

So it stirred a sense of sweet vengeance when the government of President Felipe Calderon recently offered cash prizes in a contest to identify the country’s “most useless tramite.” An ad campaign depicted a haggard resident, laden with files, standing before a glowering bureaucrat.

Venting years of frustration, 20,000 Mexicans poured forth with nominations by Internet, telephone and even the postal system, which enjoys its own place in the nation’s pantheon of inefficient agencies. The winners, who will take home a total of nearly $50,000, are to be announced this month.

“The idea here is to have an assessment of tramites seen from the point of view of citizens,” said Salvador Vega Casillas, who heads the federal comptroller’s office, the Public Function Secretariat. “It is the first time the government is paying money to be criticized.”

Calderon, of the pro-business National Action Party, or PAN, says streamlining government and improving accountability will make Mexico more competitive, easier to live in and less prone to corruption.

The often-Kafkaesque requirements encourage residents to offer bribes as a way around the labyrinthine tramites. A study last year by the nonprofit group Transparency Mexico found that Mexico’s 105 million residents annually pay bribes totaling more than $2 billion, often for basic services such as getting a water line installed or garbage collected.

“This is the same amount of money we are spending on the whole federal judiciary system,” said Eduardo Bohorquez, director of Transparency Mexico. “This is a high burden.”

Many Mexicans express weariness born of years of wrangling red tape. Ni modo — what can you do?

But that is slowly changing as the country evolves from a sheltered regime, ruled for decades by the same party, to an emerging democracy more willing to embrace products and ideas from outside. The shift has brought genuine political competition and stirred residents to demand more from rulers. Or less, in the case of tramites.

“They say, ‘If I can get better service at the cinema, why can’t I get it from my government?’ ” Bohorquez said.

Despite Calderon’s call to slim down the government, today there are more than 4,200 federal tramites, nearly double the number in place before his conservative party took over from the Institutional Revolutionary Party, or PRI, whose 70-year rule ended in electoral defeat in 2000.

Officials say the big jump resulted from bureaucrats run amok as they sought to reshape the Mexican system, and from the PAN’s effort to codify government procedures after the PRI’s long rule, during which benefits were often doled out willy-nilly by local bosses.

Vega said officials hope to cut the number of tramites to 3,000 by the end of Calderon’s term in 2012 and to simplify them by allowing residents to fill out forms or make appointments online.

“We’re trying to return to a happy medium,” he said. “To streamline government, make it more accessible, cheaper to operate but also much nicer to the public.”

That last part shouldn’t be hard, given the burden that tramites impose on almost all Mexicans.

For example, pensioners have to report to a social security office every three months to prove to bureaucrats that they’re still alive. Villagers may travel five or six hours by bus to sort out a land-ownership issue, only to be told to come back another day. Registering a car or getting a taxi license can take days. Part of the reason Mexico City’s sidewalks are jammed with makeshift taco stands and card tables brimming with clothing, toys and hardware for sale is that many vendors want to skirt the headache of licensing a formal shop.

Mexican bureaucrats can be sticklers; scratching out a mistake on a form can send you back to the starting line.

“For me, it’s a way to justify the taxes we pay, to justify all the hiring,” Esteban Gasca, a 52-year-old economist, said as he left a federal passport office that is housed in the city government’s complex. He carried a manila folder and, despite the happy din of an office workers’ holiday party in the plaza outside, a less-than-festive expression. He was leaving empty-handed for the second day in a row.

The day before, Gasca had shown up at this branch, or delegacion, to get his passport renewed. But he was told his birth certificate had to be reissued on an updated form first. Another tramite, another line, another agency.

That done, he came back, only to learn that he’d been given the wrong hours for passport renewal. His plans to visit the United States this month were looking shaky. Gasca said he’d try to get the new passport at a different delegaciondelegacion, or come back one more time.

“You have to resign yourself,” he said.

Upstairs, in a bustling municipal office, a trio of colorful holiday-season piñatas offered scant cheer for two dozen residents waiting in a cramped corner for their chance to complete tramites at eight numbered desks. The whisper of shuffling papers was punctuated by the periodic shtunkshtunk of a clerk’s stamp: confirmation of a tramite accomplished.

Outside, Arturo Sandria waited with his folder of house-painting documents, including letters of permission from a city planning office and a federal agency that oversees the historic district where his house sits. Other people leaned against the wall, cradling their bundles of paperwork in folders and plastic sleeves. A woman in her 20s balanced a stack of files; she was holding a spot for her boss.

After four more hours of waiting, Sandria would triumph at last. His permit was approved, his tramites ended. He plans to start painting the middle of this month.

He’s settled on beige.

More bad news about Nicaragua

The other day a guest writer contributed an article about Nicaragua to this blog.  In it he summarized up the reasons for not retiring or living there. Below you will find more negative news about the country.

Crime is on the upswing in neighboring Nicaragua, according to the U.S. State Department which paints a grim picture of the country in a report released Monday.

The State Department warned that “gang violence, drive-by shootings, robbery, assault and stabbings are most frequently encountered in poorer neighborhoods, including the Ticabus area, a major arrival and departure point for tourist buses.  However, in recent months it spread to more upscale neighborhoods and near major hotels, including the Zona Hippos.” Although visitors are advised to take taxis instead of walk, the State Department said that robbery, kidnapping, and assault on passengers in taxis in Managua are increasing in frequency and violence, with passengers subjected to beating, sexual assault, stabbings, and even murder.

The State Department also said that in 2008 a U.S. citizen was injured critically in a gang drive-by shooting in the San Judas areas and that another U.S. citizen was kidnapped and left for dead.

“Violent criminal activities and petty crime are also increasing in the tourist destination of San Juan del Sur.” said the report.  “In 2008, a U.S. citizen family was violently assaulted and kidnapped by several armed men.  Other American citizens have been the victims of armed robberies by assailants wielding machetes, knives, and/or guns along the beaches in and around San Juan del Sur.

The State Department also warned that U.S. citizens  “are increasingly targeted shortly after arriving in the country by criminals posing as Nicaraguan police officers who pull their vehicles — including those operated by reputable hotels — over for inspection.  In each case, the incidents happened after dark and involved gun-wielding assailants who robbed passengers of all valuables and drove them to remote locations where they were left to fend for themselves.

“U.S. citizens should exercise caution when approached by strangers offering assistance,” said the report.  “Several U.S. citizens traveling by bus from San Juan del Sur to Managua have reported being victimized by fellow women travelers who offered to assist them in locating and/or sharing a taxi upon arrival in Managua.  In all cases, upon entering the taxi, the U.S. citizens have been held at knife point, robbed of their valuables and driven around to ATM machines to withdraw funds from their accounts.”

The U.S. Embassy reported it has received an increasing number of complaints from U.S. citizens who have been stopped by transit police authorities demanding bribes in order to avoid paying fines.  Motorists in rental cars and those whose cars have foreign license plates are more likely to be stopped by transit police, said the report, adding that transit police have seized driver licenses and car registration documents from motorists who refuse to or are unable to pay.

Reasons why not to retire in Nicaragua

Special to Live Costa Rica by Bud Truax

Lately Nicaragua has been in the news a lot and it hasn’t been good. The country seems to take one step forward and two steps backward. First, president Ortega has been trying to establish closer ties with Russia. He wants  to improve relations to the level that they were at when the Old Soviet Union existed. Most recently Ortega met with the Russian president Demitri Medédev in an effort to develop closed ties. Ortega also allowed four Russian battle ships to anchor off the coast of Nicaragua much to the displeasure of neighboring countries like Costa Rica. He has also aligned himself with Venezuela’s mercurial dictator Hugo Chavez, which doesn’t exactly help the country’s international image.

However, what has really hurt the country is the U.S. Suspending $175 million in aid because of alleged fraud in the recent municipal elections. Nicaragua is the second poorest country in the western hemisphere after Haiti.  The country certainly can’t afford to lose this much needed aid. Previously the European Union had suspended $32 million in aid for the same reason.

It seems that the country’s ruling party is more interested in staying in power than establishing a true democracy and now will pay the price. Unfortunately the country’s poor are the ones who really suffer and not its leaders.

For decades the country has been the victim of earthquakes, hurricanes and a whole string of unscrupulous and incompetent leaders. Now Ortega is in power for the second time and leading the country down the path of self destruction again.

Who would want to retire or in a place where political turmoil and subsequent instability have been the norm for decades. There was talk a few years ago about Nicaragua and Panama replacing Costa Rica as Central America’s prime retirement havens. Never! Given the events I just mentioned and the rocky road that will follow. Almost a half million Nicaraguans have fled Nicaragua’s batted economy to Costa Rica to find work. I don’t blame them because the average monthly income in Nicaragua is less than $100 dollars, if you can find work.

No doubt about it those who retire in Nicaragua can live more inexpensively than Costa Rica, but look at what they are getting for their money. Anyone in their right mind would be foolish to invest in such an unstable place.

Mexican Drug Wars are Driving Away Retirees

Many years ago I studied as an exchange student in Mexico. I was lucky enough to live with a Mexican family and really fell head over heels in love with the country. After returning to the States I made it a point to visit Mexico every chance I had. In fact, I ended up spending about ten summers exploring the country and taking graduate courses in Spanish. My dream was to move to Mexico.

Many retirees also found Mexico the ideal place. Over the years thousands of Americans chose to make their retirement home south of the border. All of that has changed radically.

There is a virtual civil war between rival drug gangs fighting each other for control of the lucrative drug trade and the Mexican government trying to stop it. The wave of violence has spiraled way out of control. In Tijuana, for example, there are shoot outs in broad daylight with many innocent people being caught in the crossfire. Reporters have been killed by the drug cartels for trying to expose the people behind this crime wave. Kidnappings are also perpetrated by these same criminal elements.

This year more Mexicans were killed as a result of these drug wars than all of the U.S. Soldiers in Iraq during the last six years. This makes Mexico more dangerous than Iraq!!!! I know of a Costa Rican couple that was robbed twice I one day by different taxi drivers while visiting Mexico City.

Retirees are not immune from this widespread violence. Who in their right mind would want to live there?

Costa Rica is a much alternative to Mexico and therefore continues to be the most popular retirement haven south of the border. Panama and Nicaragua are making some headway but will never offer the choices nor quality of live that Costa Rica has. There are more Americans living in Costa Rica proportionately than any other country outside of the U.S. They can’t be wrong!