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.

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.

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!

Costa Rica was the first country in the world to constitutionally abolish its army in 1948.

December 1st marks an historic date in Costa Rica’s history. On this day in 1948 President José Figueres abolished Costa Rica’s army. From that moment on Costa Rica has lived as a peaceful and democratic nation. Besides getting rid of the army this decision had another important effect on the country’s development. The money that was formerly spent on the military is now spent on education and universal health care and has had a tremendous effect on human development for the average Costa Rican.

No other countries can make this claim!

This peaceful tradition continues to live. Costa Rica’s current president, Dr. Oscar Arias Sánchez was the recipient of the Noble Peace prize for being instrumental in bringing peace to the nations of Guatemala, El Salvador and Nicaragua in the 1980s.

Furthermore, there is no threat of terrorism here because Costa Rica has NO enemies. This added stability is one of the primary factors that make our unique country  such a special place in the world and perfect for a peaceful retirement and investment. For these same reasons large multinational corporations like Citi Bank, GE, Walmart, Intel, Proctor Gamble, Firestone, Amazon.com and many others have invested millions of dollars here. I am sure this list will continue to grow as more big players and individuals realize the advantage of investing here.

Finally, this peaceful ambience, excellent investment climate and unparalleled beauty are the reasons Costa Rica has become one top five emerging real estate markets in the world.