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.

Costa Rica is paradise when compared to Mexico as a possible retirement haven.

A couple of months ago I wrote a short article about why not to retire in Mexico. I became became very upset after reading an article in a popular international retirement publication entitled, “Mexico, the world’s best retirement haven.” Nothing could be farther from the truth.

In my article I pointed that you virtually can’t drink tap water anyplace in Mexico unlike in Costa Rica where it is safe to drink tap. I went on to talk about the kidnappings and robberies what are rampant in Mexico. However, the most pressing problem the Mexico government is facing is the on-going war with the drug cartels. These blood thirsty are responsible for murdering thousands of people over the last couple of years and are capable of anything to achieve their goals.

Things have become so bad there that a report by the Joint Forces of the United States stated, “Mexico and Pakistan are both running the risk of becoming completely un governable.” Furthermore Dennis Blair, the new director of national intelligence, stated that at this time the corruption and violence of the drug cartels is keeping the Mexican government from being able to control part of its territory.

Most people who retiree in Mexico won’t be affected directly by all of this, but nevertheless have to exercise extreme caution in their daily lives because of the country’s growing violence.

Although not 100% crime free Costa Rica is paradise when compared to Mexico as a possible retirement haven. So, for those who plan on retiring south of the border to live for less and enjoy the same quality of life as at home, Costa Rica is a no-brainer.

If you are considering Mexico for retirement you should read this article. It is just one of many we have published warning potential retirees about the dangers of living in Mexico.

Crime-ravaged México considers reinstating death penalty

Violent murders linked to organized crime are soaring in México with nearly 6,000 people killed last year, double the number for 2007. As a result, Mexico’s tiny Green Party has decided to campaign for the reintroduction of the death penalty.

Violent murders linked to organized crime are soaring in México with nearly 6,000 people killed last year.

The Green Party is pressing for the death penalty for kidnappers who torture, mutilate or murder their victims. If this measure is adopted by the country’s legislators, it would reverse a 2005 decision to formally scrap capital punishment. It has been almost 50 years since anyone was executed in México.

More than 5,600 people were killed by drug traffickers in México last year and analysts say Mexico is now the most dangerous country in the world for kidnapping. But 97 percent of the country’s kidnapping cases go unsolved by police, one of the reasons many critics of the death penalty question its effectiveness in deterring crime.

But public anger is fueling the debate. A poll conducted last year found that more than 70 percent of those asked supported the death penalty.

The Green Party has launched a hot line to inform the public on the issue. It has received thousands of calls supporting the death penalty for kidnappers who brutalize their victims.

Green Party leader Jorge Emilio Gonzalez says voters are demanding a fitting deterrent to counteract these vicious crimes.

“It is not the answer,” said Jorge Emilio González. “But it is part of the answer. It is a message that we are going strong. They are going to think twice. They know that if they get caught — in six, eight months — one year, they are going to get the death penalty.”

Diego Cobo, Green Party vice coordinator, explained the legislative proposal is specifically designed to protect the kidnapping victims.

“The purpose of our proposal is not to kill criminals,” said Cobo. “The first purpose of our proposal is to protect the victim, to tell the criminal that if he kills his victim, he is going to be killed also. So the first effect of our proposal is the protection of the victim. The life of the victim.”

Lorenzo Meyer, a College of Mexico International Studies Department professor, is a specialist in the history of Mexico’s political development. He said Mexico’s police forces are too corrupt, and its legal system way too fragile, to consider using the death penalty.

“In Mexico, the only people that are in jail  . . . well not only, but basically 95 percent, are poor,” said Meyer. “And nobody, really nobody trusts the judicial system. So introduce the death penalty here, and you would have a lot of executions that are unfair. In the case of México, it could be really criminal to introduce the death penalty with this sort of judicial system.”

Lawyer Alonso Aguilar Zinser agrees with Meyer. He said the death penalty is not the way for Mexico’s legal system to progress.

“Criminals are a product of the society,” said Aguilar Zinser. “And something is failing in society if you have criminals. You do not have the right to have a revenge, if you have problems in society. You have to resolve the problems. Not revenge, because an eye for an eye is not the position of a modern state.”

Outrage over kidnapping in México surged last year after the kidnapping and murder of 14-year-old Fernando Martí. After his wealthy family paid a substantial ransom, the boy was murdered. Those subsequently arrested included the commander of a police detective unit based at Mexico’s international airport.

In the aftermath of the crime, the murdered boy’s father demanded politicians do more to curb kidnapping or quit their well-paid jobs.

Thousands of people dressed in white marched through Mexico City last year as they had during the previous administration of President Vicente Fox, but the rampant level of kidnappings has not decreased. The death penalty issue is due to be debated in Mexico’s congress.