Thinking of Moving to Argentina? A Word to the Wise

article from April 10, 2012

By Jamie Douglas

Once a favorite destination for expats, Argentina is being turned into a sadly neglected country by nationalistic socialism, rampant political corruption and total economic ineptitude. Que lástima.

The government of Cristina Fernández de Kirchner is currently nationalizing whatever it can get its hands on, starting with YPF-Repsol and Petrobras, the Spanish and Brazilian oil companies that have been doing business in the Southern Cone nation because this country is unable to run its own oil exploration. These exploration companies, rather than dealing with one authority, have to pay off the corrupt local officials of every province they want to do business in, to hell with international treaties.

The nation is racing backwards at supersonic speed, and will soon be back in 2002.

Example 1: We live near a relatively large town with several major supermarkets. During Easter Week, they were out of milk for three days. While orange juice is a luxury here, selling for over US$2 per liter, stores rarely have it. Rice, sugar, flower, cooking oil, and even the beloved mate are all in short supply.

Example 2: Fuel stations are often out of fuel. Many times, the amount of fuel you are allowed to purchase is limited to AR$50, when they have it at all. Of course, if you have the extra US dollars per gallon, you can go to one of the rare Shell or Petrobras stations and pay more to fill your tank.

I actually got to fill up the modest tank on my Renault today. And the wait was only about 20 minutes. During the peak harvest season, many trucks waited in line for days to get fuel while the fruit and produce rotted. Nobody in the government did anything about it. Meanwhile, exports to Chile, Bolivia and Paraguay continued unabated. There are some highly intelligent people at work here, somewhere, but not in the government.

Example 3: The last time the economy tanked, it was because of fiscal mismanagement and the lunatic idea of tying the new peso, called the austral, to the US dollar. And a lunatic idea it was. It led to the biggest sovereign default in the history of the world. It makes Greece look downright attractive in comparison. A lot of it, of course, had to do with high-cost imports of luxury goods. After the catastrophe, the Argentine government decided to set up a free-trade zone in Tierra del Fuego, where they would manufacture air conditioners and assemble computers, fans, microwaves and all kinds of domestic appliances. That would be wonderful, if the consumer would actually save money on these domestic products. I took a close look at the tiniest of microwaves today just to see where it was made because it cost US$250 for the same kind you get at Wal-Mart for $30. Sure enough, it was made in Tierra del Fuego!

Item 4: Taking your profits out of the country:  Forget it. Repatriating your money is forbidden unless you can get that unobtainable permit to send dollars out of Argentina. So what is a multinational company like, say, BMW to do? (It’s not like they sell a lot of their cars here.) In order to repatriate their money, they have to buy rice and export it to someplace that wants it, paying to ship it, warehouse it and broker it. Now that is messed up!

Item 5: As an Argentine citizen, you cannot take or send more than US$300 per person per month out of the country. It is illegal to send money to relatives who may be croaking in a hospital in Bolivia or anywhere else. And effective April 2, Malvinas Day, Argentinean citizens are unable to use their credit and debit cards abroad at all. All the borders and airports now have money-sniffing dogs, and they are quite good a sniffing out the loot, which will then become property of the state.

On the other hand, there are so many properties available all over this marvelous country that if you want to make a go of it, you will have many choices at very affordable prices. The important thing is to come here with family and all and get a feel for it. Having a working knowledge of Spanish is essential. Outside of the major cities, you will not find many fluent English speakers. But do not go down the street loudly proclaiming how this person dresses like a clown (it might be Cristina!) or that one there has a beer gut. You might be surprised at how many people understand English.

Jamie Douglas

San Rafael, Argentina

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Crumbling Infrastructures: Buenos Aires, Caracas

article from February 25, 2012

By Jamie Douglas

Buenos Aires, Argentina

Ash Wednesday in Buenos Aires turned out to be a very tragic day. A fully loaded commuter train with over 2,000 porteños on board suffered a suspected mechanical failure in its brake system, slamming into the end-of-the-line barrier at the Once station in the capital city, with devastating results. Fifty dead and 650 injured – ¡que horror! – a very inappropriate end to the Carnival festivities, although not altogether unexpected.

The infrastructure of the city of Buenos Aires has been crumbling since the 1980s, but the bottom really fell out during the last financial crisis when Argentina defaulted on its sovereign debt. Looking at the photos and videos of this catastrophe, I was astonished to discover that the rolling stock looked to be from about 1950s or 60s and in very bad shape, even just look at. Buenos Aires has become somewhat of a dangerous eyesore, where you are not safe in the best of neighborhoods anymore.

Those of us who always admired the city as “the Paris of South America” now look at it as a crumbling city, a city where you can still look up at the beautiful facades of those magnificent edifices built in the 1920s; but while looking up and admiring that, be careful, because the sidewalks are hazards to your health. There are not just cracks, but holes and missing manhole covers – and you really have to be very careful where your next step will take you, as there are so many dogs that use the sidewalks as their toilet.

Then there are all the homeless sleeping and living in the entryways to abandoned businesses. And whatever you do, exercise extreme caution when using an ATM. It’s not that robbers in Buenos Aires are very sophisticated; in fact, they are quite clumsy, spilling a drink on you or dropping mud from a balcony to cause a major distraction, or dropping something in front of you, trying to take advantage of the Good Samaritan in you so they can grab your wallet, purse or bags. The current economic downturn has led to a lack of public safety, with the federal police abandoning their patrol duties on the subway and trains, leaving that to the local police, who are either part of the criminal gangs or not present at all.

So for those of you contemplating moving to Buenos Aires, be aware. Crime is surging, inflation is over 25%, and public confidence has reached new lows. It was only a couple of weeks ago that a well-known French photographer was stabbed to death at 8:30 in the morning, in a very populated and “safe” section of town, the park dedicated to the Falklands War Veterans in Retiro. ...it makes the photographer in me want to leave that part of my life behind. Whenever I stepped out while in Buenos Aires with my Nikon camera, the people at the front desk of my hotel would warn me, shopkeepers would warn me and waiters in restaurants would have me hide my equipment. Fortunately, we were always very aware of our surroundings. And when the guy came by with a huge key ring and dropped it at my feet, it was me who kept a local from running after him. It was such an obvious attempt to separate us from our luggage in front of the hotel that it was almost laughable. Jajaja!

Caracas, Venezuela

In Caracas (how similar that sounds to carcass!), Venezuela’s Clown Prince is now following his destiny, which looks to be an appointment with Mr. D. After denying rumors about having The Big “C,” he just announced that a new lesion of about 2 centimeters had been discovered in an undisclosed location “near his pelvis,” where surgeons in Cuba last June had removed a baseball-sized malignant tumor, and after a few rounds of chemotherapy he had declared himself to be cancer free. Hallelujah!

Except that he is not. For the first time since his medical misadventures began, he openly stated that it was probably a malignant growth. Various experts in the field of his unknown cancer have previously stated that he in all likelihood suffers from Steve Jobism, which is denial of his terminal condition and the putting off of the immediate treatment of his disease. After all, a bull can only be a bull if he has his cajones; and now that a young, virile opposition leader has emerged, Henrique Capriles, the 39-year-old governor of Miranda State, the chances of Venezuela’s return to the civilized world are getting better with every moment that Chávez waits to have radical surgery. I do wish him well in his battle for life, but more importantly, I wish Venezuela only the best in its recovery from the years of darkness. Let there be light!

Jamie Douglas

San Rafael, Mendoza

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

South America News Roundup Dec 2, 2011: Chilean Justice, Brazilian Interest Rates, Argentinean Inflation

article from December 2, 2011

By Jamie Douglas

Chilean justice

Chile has been involved in a long-running trial, going back to the years of the shameful overthrow of President Salvador Allende. Judge Jorge Zepeda has just issued an indictment request for US Captain Raymond E. Davis for his alleged involvement in the extrajudicial execution of two US citizens, Charles Horman and Frank Teruggi. Horman was a 31-year-old filmmaker while Teruggi was a 23-year-old student.

Captain Davis was commander of the US Military Group in Chile, answerable directly to the CIA, which, at the time, had their dirty hands in most countries in Latin America under the guise of “preserving democracy,” an effort that ultimately ended up costing tens of thousands of lives in the region and, in fact, helping to pave the way for brutal dictatorships to take the place of democracy.

Captain Davis at last stands accused today, 38 years later, of bearing responsibility for ratting the two US citizens out to the Chilean Secret Police while collaborating with the now-imprisoned Chilean Army Brigadier General Pedro Espinoza Bravo. He was a leader of DINA, the feared secret police, who, in 1976, planned the execution by car bomb in Washington DC of Chilean Diplomat Orlando Letelier, a former member of Salavador Allende’s cabinet.

The bullet-riddled bodies of both of the US citizens were found on a street in Santiago de Chile after they had been executed along with many others in the capital’s National Stadium. The United States did nothing for their citizens, except help to cover up their murder.

Documents declassified in 1999 clearly showed the involvement and contribution of intelligence by Captain Davis that led to the death of the two US citizens. The whereabouts of Captain Davis are currently unknown, and it is very unlikely that the FBI or any other US law-enforcement agency will assist in the detention and deportation of this highly decorated war criminal.

Brazilian interest rates

Brazil has led the world with the highest interest rates for the last 23 months and still does so, in spite of dropping the base rate by 0.5% to 11% recently. Financing any purchase in Brazil is a costly affair, and, like in Argentina, many merchants selling consumer goods are offering interest-free installment credit to anyone with a national ID card. It must be noted that not making payments is a criminal offense, where you get locked up without a trial until the debt is satisfied.

Brazil leads the world with the highest rates, followed by Hungary, Indonesia, Chile, Mexico, China, Russia, Australia, Colombia and Taiwan.

Argentinean inflation

Argentina has been less than forthcoming with their official inflation rate, since former President Néstor Kirchner† replaced all the INDEC technocrats with his handpicked political cronies. The figures that have been released to the public since that time have been rather disingenuous, rarely approaching even one-half of what is taken for reality.

For a while, private consulting firms have issued their own highly academic figures. They arrived at their data with good old scientific methods: Sending hordes of people to all kinds of commercial establishments to ascertain the cost of consumer goods across a wide spectrum of items. Their figures, unlike those of the government-appointed cronies, do not lie.

So to combat the contrariness of those darn truth-sayers, the government of President Christina Fernández de Kirchner had her secretariat of domestic trade file a lawsuit against the private consulting firms. These same firms had already paid heavy fines for the audacity of speaking the truth against the official fiction created by the government lackeys.

Judge Alejandro Catania, a friend of the Kirchners’ who was assigned this case, tried to get the International Monetary Fund involved in this, to show that the wayward Melconian & Santangelo private consulting agency were indeed at fault. The government of Presidenta Cristina is on a collision course with the IMF over the false information disseminated by INDEC, and an agreement signed with the IMF will have to be fulfilled by January 10, 2012. The Argentinean government apparently prefers to be a financial rogue state.

Jamie Douglas

San Rafael, Mendoza

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Argentina's New Fiscal Policies

article from November 18, 2011

By Jamie Douglas

Since Cristina Fernández de Kirchner’s sweeping landslide reelection on Oct 23, mainly because of a fractured opposition that failed to form a coalition to oppose her, there have been a number of new regulations dealing with foreign exchange. All foreign mining and energy companies will henceforth be unable to repatriate their income, and the private exchange houses are restricted to buying dollars, being prohibited from selling them.

On Wednesday, Oct 26, the Official Gazette published Special Decree 1722, ordering all revenues created by the mining and energy sectors in Argentina to be negotiated at the local foreign exchange market, a measure aimed to stem capital flight, as well as a forced attempt to flood the market with “fresh” dollars to control the high demand for the US currency by everyone in the country. The measure also aims to control the inflation that is being denied by the Casa Rosada.

Government “economists” mistakenly believe that the funds that the foreign corporations are being forced to retain in Argentina will inject US$3-$4 billion into the economy. I do not make the connection here. How would that money enter the local market? Foreign corporations are unlikely to invest in infrastructure improvements as long as they are unable to take their income home.

By Friday, Oct 28, the central bank had begun to regulate the ability of just about everyone to sell their soon-to-be worthless Argentine pesos for US dollars, in order to stop the capital flight of US$100 million per week, or $3 billion per month. The new decrees are a complete mess of rules and regulations requiring potential moneychangers to submit their requests to the tax authorities, who will check the amount against their records of how much money has been declared, and they are sure to work their way up to the supreme court in about 10 years time.

The incoming vice president of the nation, current Economy Minister Amando Boudou, assured his fellow Argentineans on Monday, Oct 31, that the new rules are not meant to hinder transactions, but are intended to show the origin of the monies. He assured the patient that everything is fine and all is in order. That would be a first in the 201 year history of Argentina!

The vice president-elect is also urging Latin American nations to abandon the use of the US dollar altogether and start using local currencies, instead. That is in direct contradiction to an inquiry made by the Uruguayan government and several banks from Uruguay urging the Argentinean central bank to guarantee that it will buy back the hundreds of millions of pesos that Argentine tourists will spend in Uruguay during the vacation season. Many porteños cross the Rio de la Plata with sacks of Argentine pesos, which they exchange at Uruguayan casas de cambio, where the dollar now exchanges at almost 6 pesos, nearly a 50% premium for the Argentines. But the banks and exchange houses in Uruguay are understandably reluctant to buy Argentinean pesos, since there is now no way to turn them back into dollars.

Argentina’s unilateral panic rules are, of course, having repercussions internationally with investment bankers, rating agencies, the IMF and the World Bank, all of whom warned the government of La Cristina of the dire consequences of these actions. The ratings agency Fitch has advised the Argentinean central bank that the nation’s credit rating could become subject to highly undesirable changes in currency exchange policies driven by the high inflation rate that the government is denying.

Jamie Douglas

San Rafael, Mendoza

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Four More Years for Kirchner

article from October 24, 2011

By Jamie Douglas

Cristina Fernández de Kirchner, by no surprise, is the winner of Sunday’s Argentinean presidential elections. With over 95% of the votes counted, she garnered a landslide 55% of the vote, giving her four more years to ru(i)n the country. As is customary, the sitting officeholder had the purse strings of the nation to disburse money for flat screen TVs for the elderly and tons of meat for the rest of the population.

Her popularity is so overwhelming that the opposition candidate did not really run. She is expected to try that old trick of having the constitution changed to allow her to run a few more times – after all, she is a relatively young 58 years old. I just hope that she will step down before the grim reaper harvests her in office so she can enjoy the hundreds of millions of dollars she and her deceased husband Néstor “rightfully” earned by their “hard labor.”

At the same time, Cristina’s supports voted for her party to gain control of both houses, making the changing of the constitution unlikely to be contested. Her popularity has been boosted by the booming economy, coupled with the denial of inflation, which currently hovers between 25% and 29%, this according to private consultants who use accurate econometrics, such as the actual prices of a basket of consumer goods, energy costs and other monthly expenses for a family of four. The governments figures are less than half that, but this is Argentina. Don’t cry for Argentina; it is merely business as usual.

Now, with La Presidenta firmly established, being her own woman, not just Néstor’s placeholder in the Casa Rosada, we can expect to see closer ties between Argentina and Brazil, where President Dilma Rousseff has been widely viewed as being the placeholder for Lula da Silva, the wildly popular former president of Brazil. Lula, as he is affectionately known to his fellow Brazilians, recently announced to his compatriots that Dilma was his choice to run for a second term, and that he would stand down.

He would be 72 years old by the time Mrs. Rousseff’s second term expires, and being a sensible man, he will probably enjoy his role as elder statesman more than he would enjoy being president until he is 80, battling a corrupt cabinet, like Mrs. Rousseff is having to do right now.

This closer relationship between the two giants of Mercosur, of course, may lead to the marginalization of the two minor players, Uruguay and Paraguay, both of which have been used and abused by their giant neighbors for a while now. In addition, there is also the unknown of Venezuela’s pending membership, which is only awaiting Paraguayan ratification.

Both Brazil and Argentina currently are heavily dependent on China as their most important trading partners. China however is only buying natural resources, from minerals to agricultural goods, and hardly any manufactured goods are being exported to them. At the same time, Argentina’s protectionism of their native industries has severely limited imports, including inexpensive Chinese products, by enforcing punitive duties. This topic is sure to come up in future trade negotiations with the Chinese.

Jamie Douglas

San Rafael, Mendoza

Where we have to live without cheap Chinese imports!

[Image of Argentinean President Cristina Fernández de Kirchner via Wikipedia]

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Is the New Peru Better for Expats?

article from October 20, 2011

By Jamie Douglas

So maybe 2010 Nobel Prize winner for literature, Peruvian writer Mario Vargas Llosa was being overly dramatic when, earlier this year, he reluctantly endorsed Ollanta Humala in the runoff for the presidency of the Andean Nation. Humala was running against Keiko Fujimori, the daughter of the disgraced former President Alberto Fujimori, now deservedly rotting away in prison. The highly respected Vargas Llosa summed the runoff up as the Peruvian people having the choice between AIDS and terminal cancer.

The Lima Stock Exchange must have felt that one of those unenviable descriptions fit Ollanta Humala, as it experienced its largest drop ever upon his win. Unfounded fears of Chávez-style socialism had been spread by the opposition, to the point where they apparently started believing their own propaganda.

During the campaign, I received several communications from US and British expats living in Peru, all of them telling me that it was over in the event that Marxist/socialist Humala would win, and they would leave the country. I would love to hear from them, to see what their view is now!

Humala surprised his opponents when he appointed many moderate technocrats with many years of experience to his cabinet, and the stock exchange quickly recovered. The mining companies, which provide a nice chunk of income for the state, agreed to a reasonable upward adjustment in royalties, and a portion of that is to go toward helping the very poor who live in the remote areas of Amazonia and in the Andean highlands – we hope!

So suddenly, Peru is back on the radar for expats. Lima always had a sizeable expat community, and lately there have been a number of new arrivals, many of them professionals working for multinationals. For expats who require some safety and comfort in their lives, Lima is not inexpensive. One-bedroom apartments in the center will run you from US$400 to $800 per month. Food prices can vary wildly, depending on where you buy. Fresh fruits and vegetables at the market are the most economical and healthiest, while supermarkets tend to be much pricier.

If you are looking at Arequipa or Cusco, your cost of living will be lower. The rents in Arequipa are substantially lower, with a three-bedroom apartment in the city center averaging just over $400 per month.

Health care is actually something that brings some retirees to the area, as the cost is very reasonable, and there are a number of doctors and clinics that specialize in eldercare. I see that as a growing specialty field, as more and more Baby Boomers find themselves priced out of the US market or are tired of the mediocre care afforded through Medicare, which is only good in the USA. Dentists are also very reasonable and good. Just make sure that, in either field, you have a reputable professional taking care of you.

For those of you with school-aged children, there are a number of choices available. If you want that your kids to become fluent in Spanish so they can help you with shopping, the bureaucrats and the mechanic, send them to a good Spanish-speaking private school. There are a number of them. It would probably be a good idea to find a good school before you rent or buy a home, as the daily to-and-from can be a grind in Lima’s traffic nightmare.

As far as your utilities are concerned, it depends mostly how big your refrigerator is – and how efficient it is. Expect to have to pay between $150-200 for everything, including water, gas, electricity (220 V, 60 Hz), broadband Internet (6 GB flat rate) and telephone. For making international calls, use Skype, which is free between Skype users, or do as I do and get a low-cost subscription with a US number that your friends and loved ones can reach you on at no cost to you.

If you need domestic help, it is also available for $200 and up per month. Inform yourself of the labor laws. Knowledge of them is protection, for if you have reason to dismiss you helper after paying them under the table, they might just turn you in.

Would I recommend Peru? Hell yes! It is a very fascinating country that is full of surprises – and not just Machu Picchu. Just south of Lima, there are intensive archeological excavations under way. A quick flight over the Andes will take you to Iquitos in the Amazonian rainforest, where you will have a chance to explore and see incomparable fauna and flora, as well as visit with the indigenous inhabitants.

Jamie Douglas

San Rafael, Mendoza

Where fortunately, the pisco sour is NOT the national drink!

[Image of Arequipa Yanahuara, Peru, via Wikipedia]

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Argentina’s Feuding Inflation Rates

article from Sept 27, 2011

By Jamie Douglas

What is going on in Argentina? That is the question of the day. Expats, please do not worry, as none of this directly affects you; but it is important to understand what is going on in this country, particularly in relation to its neighbors and fellow Mercosur members.

For starters, the International Monetary Fund (IMF) has reamed Argentina for submitting and publishing totally fictitious figures dealing with its inflation. IMF director for Latin America Nicolas Eyzaguirre is demanding that this Southern Cone nation apply major and drastic measures to comply with proper reporting of actual inflation, in lieu of submitting the disingenuous figures, which generally run about half of what the figures actually are.

Argentinean Minister of Economy Amando Boudou has attacked the messenger, as Argentina always tends to do: “The bureaucracy of the fund is watching another movie. They are playing rich kids games in a world that needs fast solutions,” Boudou stated.

Mr. Eyzaguirre, on the other hand, demands that the nation submit correct data because they have to know what is really going on in the world’s eighth-largest country’s economy: “Looking to the world and trying to decipher Argentinean statistics is like the captain of the Titanic going after the violin of the orchestra. (I think something was lost in translation here!) There are far more important things to address and not let political prejudice condition operational views.”

There is no one in Argentina who is not aware of the falsified figures being fabricated by the government. Cristina Fernández de Kirchner is running virtually unopposed in the upcoming October presidential elections, so why the steady stream of disinformation? Is it because the government expects people to be lied to all the time?

As a direct result of the disinformation that the Casa Rosada has planted, the IMF henceforth will not pay any heed to the official figures released and instead will use private consultants to harvest more truthful data in the future.

Meanwhile, in the very scary opposition to a free press in Argentina, the Domestic Commerce Secretary Guillermo Moreno had a friendly judge issue subpoenas to six newspapers for the names and phone numbers of all reporters and editors who have covered the Argentine deception on the economy. Government official are claiming a ridiculously low inflation rate of 9.8% (?) for August 2011, while the real rate is pegged at anywhere between 20% and 25%. Ask anyone shopping in the grocery store which is the correct figure.

The mere fact that the Fernández administration is going after reporters and editors, accusing them of criminally publishing false information to benefit their clients, to the supposed detriment of Argentinean consumers and the state, is a complete admission that freedom of the press is but an illusion. Judge Alejandro Catania, obviously in the pocket of the government, did comply with Moreno’s request, and he issued subpoenas to the newspapers and their employees as well as to the IMF, the tax ministry, the central bank and the stock market.

Moreno has threatened to fine the various consultants 500,000 pesos, or US$123,000, for publishing the truth. The reason for this may be found in the fact that almost all of Argentina’s sovereign debt is tied to inflation, thereby making the government’s falsification of the figures mandatory for saving the central bank billions in interest.

The stench of fascism is in the air again in the long-suffering nation, which once showed such promise on the world stage.

Jamie Douglas

San Rafael, Argentina

Where that Fine Malbec Wine still has freedom of expression!

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Sept 14, 2011: And the Latest from Argentina is...

article from September 14, 2011

By Jamie Douglas

Argentinean wheels of justice

Argentina: Where Anything is Possible. And occasionally, the slow wheels of justice provide an amusing glimpse at life here. Take for instance a young couple’s wedding celebration in July 2006:  They hired the Miraculous Medal Chapel and adjoining facilities to celebrate their future together. It was a pretty big shindig and the high point of their lives so far. Caterers were called in to make sure all the guests had food in their stomachs while consuming the mass quantities of alcohol Latin American weddings are famous for. Tailors spent many hours laboring over all the dresses for the wedding party’s female members and, of course, photo and video crews were on hand to document the happy affair, when, wouldn’t you know, the electricity goes out.

At first, it was assumed that this was a temporary outage; but as time dragged on, the formerly happy couple was getting more and more distressed, what with sitting in the darkness of the chapel. The power never did come back on. The bands could not perform, the hired disc jockey had no way to play the music, the videographers could not film and the few pictures that photographers were able to take in the semi-darkness all had that horrible rabbit-eye syndrome.

After the wedding, the families decided to investigate why the power went out. To their surprise, electricity supplier EDESUR had no explanation, so they made a claim directly to them for actual damages suffered during their fiasco of a wedding. EDESUR decided to not honor said claim, and off to court it went, where, with the snail’s pace of Argentinean justice, it was resolved in a relatively speedy five years time.

The Buenos Aires court ruling in effect affirmed a lower court’s decision to award the pair US$2,350 each, since EDESUR was “unable to justify any credible cause for the blackout,” and the wedding finally took place under very different circumstances than what was planned. It was a tumultuous beginning of their new existence together, without a doubt.

Rising inflation

Meanwhile, congressional opposition leaders released the unofficial but correct inflation rate for the month of August 2011: 1.87%, or an annualized rate of 22.44%, which is up substantially from July’s rate of 1.62%, or 19.44% for the full year. That is a disturbing increase of 3%. Surely this can’t go on much longer without serious consequences. With the upcoming presidential election, however, the government of Christina Fernández de Kirchner is compelled to be disingenuous about the figures, admitting to a mere 0.8% rate. I don’t understand the why’s of the shuffling of the figures, as there is virtually no chance of the opposition stealing the election from her at the last minute.

To counter this ever-worsening economic news, Argentineans, along with their fellow Scotch Whiskey lovers throughout Latin America, are consuming record amounts of that antidepressant, boosting imports of the golden substance by a whopping 49%. Salud, amor, dinero, y tiempo para gozarlos.

Mothers of the Plaza de Mayo scandal

Meanwhile, the ever-widening scandal of the Mothers of Plaza de Mayo seems to have involved the president of that organization, Hebe de Bonafini, along with her daughter, who apparently are holding several Swiss and Spanish bank accounts where maybe one will find some of the millions of dollars that have been looted from that organization, funds that were to pay for low income “Share your Dreams” housing construction, but instead went to their former financial manager, Sergio Schoklender. He was hired by the Mothers after being released from prison, where he served 14 years for killing his parents with his brother. I don’t know what kind of rationale was applied to retain him and give him control over millions of dollars in charity funds. But hey, this is Argentina. Todo es possible en Argentina.

Jamie Douglas        

San Rafael, Mendoza

Where that Malbec Wine is always Fine!

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

South America News Roundup Sept 5, 2011: Chile, Uruguay, Brazil, Peru, Colombia

article from September 5, 2011

By Jamie Douglas

A lot has happened since my last news roundup.

Chile

Tragedy has struck in Chile, where a Chilean Air Force CASA-212 aircraft was lost with 21 people aboard while attempting to land in deteriorating conditions on Juan Fernandez Island, 400 miles off the Chilean coast. On board were several employees of Chile’s TVN, including Felipe Camiroaga, a beloved on-air personality. They were on the way to the island to do a follow-up report on the earthquake and tsunami damage and recovery from the February 2010 disaster that hit Chile. We would like to offer our sincere condolences to the people of Chile.

The last few weeks have brought a great deal of unrest to Chile in connection with President Piñera’s attempt to make education a “consumer good,” further entrenching the status quo by removing the state from any responsibility to educate the masses of poor Chileans and making quality education something only obtainable by the wealthy. Massive street demonstrations by all classes have shown their disapproval of his position, with the labor unions joining in the protests and calling for a two-day national strike. In the midst of all the chaos, a young boy was shot to death by the carabineros while he was pushing his brother in a wheel chair.

Meanwhile, the general director of the Chilean carabineros was forced to resign, after it was disclosed that he personally covered up his son’s culpability in a hit-and-run accident in Providencia. In his resignation letter, he claims to be stepping aside for health reasons while, of course, denying the allegations raised against him by the investigative group CIPER.

Uruguay

In good news from Uruguay, it was reported that consumer inflation has fallen slightly to 0.56%, or an annual rate of 7.57%, down from 8.25%. But one must keep in mind that these are “official figures” compiled by government technocrats. I am sure my correspondent, Guy in Uruguay, would take issue with these figures. While they no doubt represent a slight improvement over the previous month, they are still well below the targeted rate of 4-6%.

Unfortunately, Uruguay’s economy has been affected by the double-dip recession hitting the “developed” countries in the Northern Hemisphere. In July, the nation’s fiscal deficit ballooned to US$40 million, while in July 2010 there was a sizeable $55 million surplus.

The Uruguayan national oil company, ANCAP, announced that it will start exploring for oil in the inland regions of Tacuarembó and Salto, where the discovery of oil-eating bacteria, in higher concentration than in Argentina’s Neuquén Province, has led to speculation that there may be crude oil in them thar hills. Uruguay could certainly use natural resources of this type, as most of its energy sources originate from outside the country, fanning the flames of inflation and national deficit.

Brazil

Brazil’s Presidenta Dilma Rousseff has just been anointed for a second term by her mentor, former President Lula da Silva, when he announced that he will step down from seeking a third term as president of that economic powerhouse, paving the way for her succession. President Rousseff has been challenged by the same entrenched corruption that plagued her predecessor, which ultimately brought her to the political forefront when she became Lula’s chief of staff before resigning that position to run for president, herself. But Brazil being Brazil, there is no telling what will happen there politically or fiscally in the next three years. The country is not isolated anymore from outside economic calamities, and the huge spending programs in progress now for the Olympic Games and the FIFA World Cup may yet end up draining the treasury. The infrastructure improvements that are necessary to make for a success of the games will have to be analyzed in terms of how much good they will bring to the country’s poor and undereducated. I personally would have liked to see this trillion dollars put into education, housing and sanitation projects in the rural areas that have so long been neglected. In the long run, that would provide security to the nation by allowing more of its citizens to climb the steep socio-economic ladder and eliminating the gap between the lowest class and the middle class.

Peru

In Peru, where the election of Ollanta Humala brought about a collapse of the Lima Stock Exchange because of fears that he would destroy the mining industry and drive investors away, things are going very well indeed. Ollanta Humala has become the darling of Wall Street and big investors. The mining companies that were so worried were happy to go along with his proposals to pay slightly higher royalties for minerals extracted in exchange for long-term commitments. This, in turn, will lead to more equal distribution of the wealth in a country that, like Brazil, suffers from abject poverty and lack of infrastructure in rural areas. We wish him and the good people of Peru much success in this new endeavor.

Colombia

And poor Colombia: Whenever that cocaine-cursed nation seems to be coming out of one crisis, it enters the next. The gold mining industry, an enterprise with the potential to eclipse the drug trade, is being plagued by all the usual suspects with terrorism, extortion, kidnappings and violence. I am rooting for Colombia to be able to leave the legacy of the cocaine cowboys behind. Colombia’s citizens are hard working, aspiring to be more than what they have been limited to by circumstances beyond their control; but through no fault of their own, they have repeatedly been victimized by the crime lords, the paramilitaries and fear of the dark. The current administration came into office on the heels of some great gains, but it seems that for every step forward, they slide back two. Large portions of the country are considered unsafe and unstable, so much so that not even the military is established there. Nobody seems to have a solution to these peculiar problems plaguing Colombia, but the time has come for a renewal.

Jamie Douglas

San Rafael, Mendoza

Where the Malbec grape vines are starting to sprout!

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Interview with Cory Gearhart, Author of the Blog “Monday (or something)”

article from August 29, 2011

by Julie R Butler

The blog, Monday (or something) is an ingeniously useful resource for anyone who is trying to make plans for relocation to Central America. There, you will find detailed outlines of expat destinations, from the point of view of Cory and “The Girlfriend” as they conduct an experiment in renting a place to stay for about one month while trying to keep within a set budget in different locations. Along with observations geared toward understanding the ins and outs of living in these places, you will find lovely photos as well as amazingly detailed spreadsheets of all costs incurred during their stays in towns and cities all over the region. The following is a short interview I conducted with Cory.

JRB: The idea of sharing the information that you are gathering– cost of living based on longer term rental, as well as conditions such as infrastructure, available activities, crime, and a feel for what the expat communities are like– is just marvelous. Was the blog a part of your original exploratory travel plan, or did it come up as you were traveling?

CORY: It was part of our original plan. I have a bit of history vacationing and backpacking in Latin America and have soft plans to retire here. As I was researching cost of living info I found a lot of people with the same question (Do I have enough money?) and very few answers. I ran across PaddyinBA who put up tables of prices with kind of a "basket of goods" approach and that got me thinking, why not a full on "month in the life" approach instead?

The Girlfriend has traveled in South America with me, but never Central, so I already had a list of places that I wanted to show her. If we combined that with a bit of structured fact finding and kept our expenses low we could just barely justify the spending. So we came up with a loose list of towns and regions to investigate, put together a pack list and set out.

The blog is a combination of my notes (costs and observations), a weekly update that I had been sending out, off and on, for years to friends and family and pictures along the way. I realized early on that writing my notes for strangers was the best way to make sure they were reasonably comprehensive. Otherwise there's just too much temptation to say "I'm sure I'll remember this forever", which is so seldom true. We're always surprised to go back and see what our rent was in a previous city, even if it was only a few months ago.

JRB: What is it that draws you to Central America other than the low cost of living?

CORY: Proximity, for one. Both The Girlfriend and I want to be close to our parents back in The States while we still have them.

The diversity of terrain is wonderful, too. In The US we could drive for 9 hours and still be in the Midwest. In Panama, for instance, we're in the Caribbean now and the Pacific is about 4 hours by car. There are places in this country where you can see both coasts from the same spot. In between are highland mountains (we just spent 2 months in Boquete, which is a pleasant highland climate with fog and evergreens). I have to hop planes in the states to see any one of those, let alone all three. I prefer living without a car so the high availability of public transportation down here is a big plus. I don't even have to plan a trip; I can usually just show up at the bus station and trust that within an hour a bus will leave going my way, and that's not just local transit but regional and international.

And I won't try to encapsulate my impressions of a Central American approach to life or philosophy or anything, but let's just say that, assuming one exists, I'm a fan.

JRB: Do you think that it is important for people who are considering moving to the places you are checking out (in Belize, Honduras, Nicaragua, and Panama, so far) to speak some amount of Spanish, or will they do fine without it?

CORY: Some places, like Honduras's Bay Islands and all of Belize, are mostly English speaking. Other places, like Esteli, Nicaragua are almost entirely Spanish. But if you're going to learn Spanish formally and have your eye on the region, then you're probably going to be taking those classes down here anyway.

For years I took trips in Nicaragua and Panama with absolutely no Spanish; I had a note in my wallet that ordered me a rum and coke, and that was it. It's frustrating and sometimes terrifying and you really have to make do with what you get, like in restaurants, but it's doable. My Spanish is still terrible. For example, I can only speak in the present tense.

JRB: When you interact with expats in different places, are you able to connect with people who have a range of experiences?

CORY: Yeah, the expats are a big part of the draw for me. The further you get out, the more interesting the stories are. There are some places where large organization are doing everything they can to funnel expats into specific towns, but there are other places where you really have to mean to end up there. I'm in Bocas del Toro [Panama] now, which is an interesting mix of both.

JRB: Do you feel that, in general, the expat communities are helpful and supportive?

CORY: Absolutely. Some places people are a little more guarded, usually in towns with more tourist traffic. But after they've seen you around for a couple of weeks or so they warm up to you, realizing that you're not just on vacation. Other places you're part of the family from day one. Some have been around so long they don't remember what it was like to adjust. They're great for stories and social info. Others have only been in town for 2 years and empathize with your practical concerns (cheap eats? laundry?) immediately. Some get really excited about the spreadsheets that I'm putting together, too, because they moved directly to a specific Central American town and are now thinking about looking elsewhere (this is especially true of expats in Costa Rica these days, due to price increases).

JRB: Many thanks to Cory and The Girlfriend for going out there, paying it forward, and offering up so much insight here in this interview and on Monday (or Something). It leaves me wondering what the connection is between people whose highest priority is getting drunk and the desire to help out one’s fellow expat by posting cost spreadsheets on the Internet... Hmmm.

Julie R Butler is a writer, journalist, editor, and author of several books, including Nine Months in Uruguay and No Stranger To Strange Lands (click here for more info). She is a contributor to Speakout at Truthout.org, and her current blog is Connectively Speaking.

email: julierbutler [at] yahoo [dot] com, Twitter: @JulieRButler

Viva Uruguay

article from August 22, 2011

By Jamie Douglas

I have sung the praises of Uruguay before. I have also criticized “the Switzerland of South America” for putting the iron mining industry into overdrive. But one thing is for certain, and that is the fact that the country’s economy is doing better for its citizens than even Brazil’s.

Of course, part of it has to do with long-standing educational policies, which have rendered a highly educated populace. Unemployment is sitting at a hemispherical low, and the future investment picture looks to create so many jobs that I foresee a shortage of skilled and unskilled labor.

The National Bank’s intervention in the currency against the US dollar has unfortunate consequences for shoppers who suffer from an annualized inflation rate of 8.25% (August 2010 to July 2011) while the economy grew by a very respectable 8.5%. Many parts of the country are still extremely rural and suffer from poverty, with a lack of jobs, leaving room for a rise in the standard of living. It is for this reason that so many campesinos are eagerly awaiting the new mining project and pulp mill. They will probably not be highly paid positions; nevertheless, they will bring jobs to areas that have none.

The cattle industry, for which Uruguay and neighboring Argentina have been famous, has slowed down substantially, with several of the abattoirs owned by a giant Brazilian corporation having to close due to a lack of cattle. Because of the astronomical rise in the prices of grains, Argentinean, Uruguayan and Brazilian farmers have switched to soy and, in places, corn as much cheaper, less labor-intensive and more export-ready crops.

The past and current administrations of the Frente Amplio coalition, an openly socialist regime, have brought great advances to the nation of less than 3.5 million inhabitants. The new Montevideo Carrasco International Airport is an architectural marvel and is currently in the final four selection for being one of the most efficient and modern airports in the world. The highways in the country are well maintained, the electrical grid is first world, and the ports are becoming inadequate for the amount of commerce entering and leaving the small country, which also serves as a major port of entry for Paraguay and Bolivia via the Paraguay River.

The current president, José Mujica, or Pepe, as he is lovingly referred to, saves the nation a bundle by not partaking in the excesses of high office. He lives on his flower farm outside of Montevideo, drives his own vintage VW Beatle, and donates the majority of his salary to charity. The Volks Presidente drives a Volkswagen. How appropriate! Despite his “un-presidential” demeanor, he has gained the grudging respect of world leaders while struggling in the personal relations with neighboring Argentina, where unemployment and underemployment is a staggering (and denied) +20% and inflation is close to 25% (again, officially denied – this is an election year, after all).

In previous years, tiny Uruguay has depended heavily on its enormous neighbors for export and tourism. And when Argentina’s economy collapsed 10 years ago, the impact on Uruguay was catastrophic. So the Little Nation that Can has since distanced itself economically from its neighbors and diversified its import-export portfolio. The two largest cities, Montevideo, the capital, and Punta del Este, one of South America’s most revered summer resorts, are vibrant and lovely, while the beaches along the Atlantic Coast that are mostly sand dunes interspersed with small towns that are largely abandoned during the off season, are nevertheless charming in a uniquely Uruguayan way.

It is my fervent hope that Uruguay’s cheerful frugality will spare the country from the coming financial meltdown and provide shelter for those who have chosen to expatriate to this nation so lacking in official corruption.

Jamie Douglas

San Rafael, Mendoza

Where springtime is in the Malbec!

[Image of Uruguayan President José Mujica via Wikipedia]

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

The Lowest Cost of Living in the World for Expats: South America

article from August 1, 2011

by Julie R Butler

After having given brief profiles of the cities of Central American cities with the lowest cost of living for expats, another group of cities that may be attractive as well as inexpensive are those in South America. These cities are somewhat off the beaten track, being more difficult to get to from the States or Europe, and some knowledge of Spanish is a must.

Quito, Ecuador

Quito is the capital of Ecuador and an important center of Latin American heritage. Quito’s Old City is considered to be the largest in all of the Americas. It is one of the oldest Spanish colonial cities in South America as well as one of the first locations where

the cry for independence from Spain rang out. This city is also known as Luz de América, Light of America.

At about 2,800 meters (10,000 feet) above sea level, Quito’s altitude is a formidable challenge. Additionally, Quito’s location between two high mountain ranges makes for weather that is unpredictable, and changes can be extreme. The weather is one reason why Cuenca, in the south, is more popular with expats, as it is consistent throughout the year and the altitude makes it moderate and pleasant. Another factor making Cuenca more popular is that Quito is in a more culturally traditional region, whereas Cuenca is about a third of the size of the capital, which is home to about 1.5 million people.

Among country’s greatest attractions are its natural beauty and amazing biodiversity, having the coastal plain, the sierra, and the Amazon Basin as well as the Galapagos Islands, all in a relatively small area. Ecuador also has one of the lowest costs of living in South America.

Although Ecuador has been a very popular destination for expats for the past few years, one of the main concerns is political volatility. The Correa administration has made great strides in reducing poverty in Ecuador, but authoritarianism, the expelling of the US Ambassador to Ecuador, and the police coup or whatever that was that occurred in September of last year have not exactly been signs of stability. Another problem to be aware of is growing drug violence.

Asunción, Paraguay

Paraguay is a landlocked nation that sits between Argentina, Bolivia, and Brazil. It is defined by the Paraguay River, one of South America’s major river systems, which divides Paraguay into two distinct geographic regions: the largely uninhabited semiarid Chaco to the west and the forested Paraná to the east.

The population center is in and around the capital, Asunción, located on the Paraguay River in the south of the country. It is another of the continent’s oldest Spanish colonial cities, having served as a base from which both colonial expeditions and Jesuit missionaries were launched, a trading port, and after Buenos Aires was sacked by indigenous warriors, the uncontested regional center of power. It is also known as the location where one of the first rebellions against the Spanish arose.

Paraguay’s history, tragically, has been one of the most war-torn in Latin America, which has stifled the country’s economic development. Although the most recent political upheaval was in 1999, Paraguay has continued to face daunting problems caused by poverty due to marginalization of the Guarani people as well as corruption and political uncertainty, and it is a major smuggling and piracy haven.

Asunción is just below the Tropic of Cancer, so the weather is mostly hot and humid, with a dry season from June to September. Typhoid vaccinations are recommended, and mosquito-borne dengue fever is a concern. This city of more than two million inhabitants has its charms, among them, lack of infrastructure such as paved roads, and farm animals wandering about at will.

La Paz, Bolivia

Bolivia is South America’s other landlocked nation, although both of these interior nations do have access to the Atlantic Ocean via the Paraguay River. There seems to be a direct correlation between the astoundingly high rate of poverty – more than 60% of the population – and the large number of indigenous peoples. This country has also had its fair share of military and political upheaval, having lost over half of the territory claimed upon independence from Spain in wars with its neighbors as well as experiencing the familiar destabilizing politics that are common throughout South America. Despite fierce political opposition and pressing economic factors, President Evo Morales, Bolivia’s first indigenous leader, has managed to spur growth and induce modest improvements in poverty levels.

Very diverse geographic regions range from the Bolivian Altiplano in the west, to Amazonian rainforests in the northeast, to the Chaco in the east. The administrative capital, Nuestra Señora de la Paz, is located in a bowl at 3,650 meters (11,975 feet) in altitude among the high mountains of the altiplano. Its climate is cool year round and fairly dry, with more rain falling during the warmer austral spring and summer months.

La Paz’s early history is marked with several sieges by the indigenous Aymara people, and yet again, the city lays claim to South America’s first call for independence from Spain. Today, 2.3 million inhabitants live in this metropolitan center in the Andes.

Probably the biggest challenge to living in this, the least expensive major city in all of South America, is dealing with the altitude, which affects not only us humans, but will also ruin computer hard drives that are not specially made for high-altitude use. And, of course, there are the common issues that come with being in such an economically split society. Spanish is a necessity, as is understanding that Bolivia under Morales is yet another Latin American country that does not have good relations with the United States and is lacking a US ambassador.

Julie R Butler is a writer, journalist, editor, and author of several books, including Nine Months in Uruguay and No Stranger To Strange Lands (click here for more info). She is a contributor to Speakout at Truthout.org, and her current blog is Connectively Speaking.

email: julierbutler [at] yahoo [dot] com, Twitter: @JulieRButler

The Lowest Cost of Living in the World for Expats: Central America

article from July 19, 2011

by Julie R Butler

The latest information about which cities have the lowest costs of living for expats has come out, but many of those cities are not attractive destinations for retirees or people looking to build new lives. I would like to address those cities that might be of interest to people who are looking for not only a low cost of living but also a challenge. The expat communities in these locations are not as large and well developed as others that have been popular for some years now.

The cities from the list of the lowest cost places for expats that hold the greatest potential fall into three regions of the world: Central America, South America, and the former Soviet Union. I will begin in Central America.

San Salvador, El Salvador

San Salvador is the cosmopolitan capital of Central America’s smallest and most densely populated nation. From its very beginnings, social inequalities and struggles have defined the country, as the indigenous population of Pipiles and Lucas put up a fierce guerilla resistance to the Spanish Conquest. Such struggles continued on and off, leading up to a brutal twelve-year civil war that came to an end in 1992. After a peace accord was reached, the country has grown economically. However, San Salvador still suffers from a high crime rate and gang violence. Meanwhile, the police force is notoriously corrupt. Despite these factors, Salvadorans have a reputation for being very kind and friendly people.

To get a good idea of what life in San Salvador is like, check out the blog that Jamie included in his list, What’s Up El Salvador. This is up to date and covers many aspects of expat life as experienced by a couple that moved there a few months ago who were involved in the coffee trade. The author, Nanelle, gives the best answer I have seen yet to the question, “What is the cost of living in Central America?” – a question that has no cut-and-dry answer due to different needs and expectations. Nanelle also has some great advice for learning how the pricing structure differs from what you would be used to if you are from North America and how to simplify your life to take advantage of the cost savings that do exist.

Tegucigalpa, Honduras

This city is the sprawling capital of El Salvador’s neighbor, Honduras. It is a dangerous city, where pickpockets, very aggressive beggars, and clever muggers are a constant problem. I am not convinced that this city has anything to offer expats who are shopping around for a place to live other than a low cost of living. What I do know is that Jamie and I have driven through Tegucigalpa five times on our comings and goings in Central America, and we found it to be the most poverty-stricken and saddest city that we ever encountered. Yes, Mexico City has similar sprawl and poverty, but that city is so enormous that there are areas where this isn’t so crushingly evident. Tegucigalpa is in a crowded bowl with slums covering the steep mountainsides all around, so the sense of being trapped inside is inescapable. Most expats who would be living in Tegucigalpa are of the diplomatic, corporate, or NGO type, whereas the more extensive expat communities of Honduras are on the Caribbean islands of Roatán and Utila.

While there was no civil war per se in Honduras during the 1980s, the country was nonetheless a pawn in the Cold War as a staging ground for US covert operations that helped keep the guns and drugs flowing and the entire region destabilized. The Honduran elites maintain close ties with US business interests, and the coup d’état of 2009 that illegally unseated President Manuel Zelaya was the latest frothing over of the continuing Cold War in Central America.

Managua, Nicaragua

According to the list, this is the least expensive city in all of Central America for expats to live in. Again, it is the capital and largest city in its country. Managua is home to the second-largest population in Central America (Guatemala City is the most populous). So it may come as a surprise to find that it is also the most pleasant and user-friendly of the three capital cities being discussed here.

Nicaraguan history follows a similar path to that of neighbors El Salvador and Honduras, emerging as the second poorest country in all of the Americas behind

Haiti. US intervention in Nicaragua has played no small part in the inability of the country to raise itself up out of this situation, with the likes of William Walker, whose goal it was to establish a slave state in Central America, circumventing US law in order to provide mercenary fighters to conflict in Nicaragua that predates the Iran-Contra Affair by 130 years.

I feel it is important to understand the history and the political climate of these countries, because behind the smiling faces that are happy to take your tourism or expat retirement dollars, social problems still simmer and, as in Honduras, the possibility for social and political instability exists. Nicaraguan President Daniel Ortega does belong to the Marxist-Leninist Sandinista National Liberation Front, whom the Contra mercenaries were fighting, and he is allied with Hugo Chávez as well as Gaddafi of Libya and Ahmadinejad of Iran in the name of anti-imperialist opposition to the US.

In addition to Managua, the colonial city of Granada and San Juan del Sur, on the Pacific Coast, and apparently even Esteli, in the mountains of the north, have become popular destinations for expats seeking low cost retirement living.

I highly recommend the blog, Monday (or something), where you will find very detailed cost of living charts for different locations in Nicaragua and Honduras, as well as providing windows into what expat life in these places is like.

see also: The Lowest Cost of Living in the World for Expats: South America

Julie R Butler is a writer, journalist, editor, and author of several books, including Nine Months in Uruguay and No Stranger To Strange Lands (click here for more info). She is a contributor to Speakout at Truthout.org, and her current blog is Connectively Speaking.

email: julierbutler [at] yahoo [dot] com, Twitter: @JulieRButler

2011 Immigration Requirements for Argentina

article from June 27, 2011

By Jamie Douglas

For many citizens coming from the US and Canada, as well as Europeans, Australians and Chinese, not to mention the hundreds of thousands of indigents from neighboring countries, Argentina has become a magic destination, where people seek to find peace or better incomes, opportunities for their children, perhaps a more mellow existence and for some, a Utopia or Shangri La of sorts.

In this article, I will concentrate on the first four groups of potential immigrants, the ones most likely to be my readers. First off, I will give you the figures for what it will cost you to arrive in the country. When arriving on international flights at Ezeiza International Airport in Buenos Aires, US citizens are charged a reciprocity fee of US$134, while Canadians pay about $71 and Australians about $102. These amounts may fluctuate slightly with the currency exchanges. Citizens from the European Union as well as our Kiwi friends are exempt from those fees. Your entry entitles you to an automatic stay of 90 days in the country, which you may extend at any immigration office in the country for another 90 days for 300 pesos, or about US$75. After a one-time extension, you must leave the country, which, depending on where you are, may be simple or it may be expensive. If you are in the greater Buenos Aires area, a quick daytrip on the Buquebus, the ferry across the Río de la Plata, will give you a 90-day entry into Uruguay for free, but you may return the same day.

I personally recommend taking the ferry to Colonia del Sacramento, and make it a multi-day excursion, as this is one of the historical cradles of Uruguay. Large portions of the old town are beautifully restored to its ancient glory. Montevideo is a secondary destination if you look for variety on multiple visa-renewing trips, offering a large selection of cultural events, great restaurants and a vibrant nightlife. Of course, a constant back and forth will eventually come to the attention of sharp eyed immigration officials who may advise you that you will not be allowed back in, as has happened to an acquaintance. Therefore, there is option B: Not leaving the country until you have to, and then paying a 300-peso exit fee, which is the same amount as extending your visa.

If you find yourself having settled close to the Andes in Mendoza or Patagonia, your choice may be to go to Chile, where you again have to pay that reciprocity fee for getting the permission to enter their country, but the stamp you get is valid for the life of the passport.

As far as actually settling as a rentista, or retiree, the income requirements went up from about US$500 to $2,000 per person per month, funds that must be banked in “trustworthy” financial institutions in Argentina, the same institutions that the average Argentinean avoids like a pestilence. When they are not on strike, they are out of cash.

The cost of living in the large cities can be compared to pretty much the rest of the world, with energy costs leading the way and some consumables being a little less expensive. But medical care generally is much more affordable and very good. If you know what drugs you require, simply go to a pharmacy with box in hand, and you will get what you need, except for narcotics. Diabetic care, blood pressure medication, and general maintenance medicines are freely available from a friendly pharmacist near you. Be sure to ask for generic medicines, as they are much more affordable.

As always, I urge potential pilgrims to come down and spend a few weeks or months here before taking the plunge, as I have seen too many dreams shattered for good people who were seeking out an alternative lifestyle, only to discover after a few months or a couple of years that this was not the beautiful life they had hoped for.

If, on the other hand, you have sufficient funds to come in as an investor, a mere 1.5 million Argentine pesos, or about US$368,000, and a working business plan plus approval from the appropriate ministry will get you residency, no problem. (If you have that kind of money, please consider making a donation to this writer and his wife and various dogs.)

The last option is a student visa, which requires you to have been accepted by an accredited school prior to getting your residency.

Argentina is the eight-largest nation in the world and has something to offer to almost everyone, so give it a whirl. You just might fall in love with the country and its friendly people.

Note that the rules and regulations are constantly changing, so be sure to contact an Argentinean Embassy or Consulate and do your due diligence. You can start with our Useful Expat Resources page.

Jamie Douglas

San Rafael, Mendoza

Where the Malbec Wine is Always Fine!

Photo by Jamie Douglas

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.

Expat Life in Today’s Costa Rica

article from June 8, 2011

by Julie R Butler

Costa Rica, having been a popular country for expatriates from the US and Canada, as well as Europe for several decades now, is still a wonderful place to relocate to, despite the changes that have occurred through the years. Here are some of the advantages and disadvantages of retirement in Costa Rica today.

Standard of living

For North Americans, Costa Rica offers the advantage of being close by. And the stability that has allowed this nation to commit itself to social programs such as public education and socialized health care, however less-than-perfect these programs may be, offers everyone who chooses to live there the advantage that standards of living are relatively high, which means that problems that have their roots in abject poverty and social turmoil are reduced. Of course, this does not mean that problems do not exist there. But the possibility of lower costs of living in a spectacularly beautiful country that is not all that far away – just a few hours from the United States by plane – yet in a world all of its own, is a siren call that is irresistible to many.

I mentioned the “possibility” of lower costs of living because the truth is that the cost of living in Costa Rica is among the highest in Latin America. Many goods and services are now equal to or more expensive there than in the United States or Canada, particularly electricity (the price of investing in renewable sources), diesel and gasoline (all of which is imported), and other imports, including cars (high import duties). Costa Rica has long been plagued by the highest inflation rate in the region, plus the country has a widening trade deficit, exasperated by current high fuel prices and the high taxes that have been trying to keep up with the government’s large and somewhat inefficient deficit spending. That being said, it is still possible to live a simpler life with less spending by embracing the famous Costa Rican spirit of pura vida.

Pura vida

Utilizing green building techniques that emphasize low maintenance, local know-how, and awareness of the environmental; taking the opportunity to support the local community that low labor costs offer; buying locally grown produce or growing your own; eating healthy home-cooked meals with domestic ingredients instead of import brands; foregoing energy-sucking appliances like dryers and air conditioners; getting used to not having hot water on demand from every faucet in your home; not owning a car; needing less... all of these practice, most of which emulate the average Tico way of life, will minimize your living expenses.

Bureaucracy

Paradoxically, living the “simple life” in any Latin American country comes with a not-so-simple bureaucracy, and unfortunately, Costa Rica has managed to turn its residency procedures into an even bigger jumbled mess of complexity than ever before. The overall cost in US dollars of going through the process of gaining pensionado residency status appears to be about $1,000 per couple, although there will be other costs in terms of time and frustration, only to find that the submitted documents will take many months to be processed. Gone is the pensionado exemption on paying import duties on belongings brought into the country, and residents are now required to register and pay into Costa Rica’s socialized medical system.

The price of paradise?

So expatriating to Costa Rica is neither as easy nor as inexpensive as it used to be. Living there can be frustrating due to poor road system and other infrastructure problems. Theft and security is a serious issue to contend with, and living in a tourist destination has its drawbacks. Yet some consider all that to be a fair price to pay for the privilege of living in such a beautiful country that has a unique attitude toward at least trying to care about the wellbeing of both its environment and its citizens, and there are still many quiet places where nature’s peace and tranquility have no price.

see also (site appears to be up-to-date as of January 2014):

http://www.therealcostarica.com/residency_costa_rica/costa_rica_residency.html

[Image via Wikipedia]

Julie R Butler is a writer, journalist, editor, and author of several books, including Nine Months in Uruguay and No Stranger To Strange Lands (click here for more info). She is a contributor to Speakout at Truthout.org, and her current blog is Connectively Speaking

email: julierbutler [at] yahoo [dot] com, Twitter: @JulieRButler