Costa Rica Expertise: There are positive and negative changes to report

Monday, December 22, 2008

There are positive and negative changes to report


By: Garland M. Baker B.
Exclusive to A.M. Costa Rica

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This past year has been very fascinating and full of changes in Costa Rica. Most notably, it seems property fraud and crime are on an increase. The government has attempted to make some modifications to the laws, but crime is noticeably worse than last year and the year before that, too.

Sometime around mid-year, while driving to Multiplaza del Este, this author and his daughter of 13 saw firsthand a woman shot in cold blood at a bus stop by two men on a motorcycle who wanted to steal her packages. This event was a horrifying experience, especially for a 13-year-old girl. She asked at the time, “Papi, is this what Costa Rica is becoming?”

This past week, this writer went back to the United States. Going back to the States is not a common practice, and usually, it is only an annual event to attend a meeting. Once in a very long while, visiting family is part of the trip, as was the case this year. While driving to Willington, North Carolina, with a sister, she said, “Garland, you are like a frog in a pan.” Baffled, I reply, “What do you mean”?

“You tell me about your life in Costa Rica and about all the changes you have made to secure your family, you are like the proverbial frog in a pan.” I asked her to explain further. She said, “There is an old fable that a frog placed in cold water that is brought to a boil will make no attempt to escape.” She was referring to all the changes one makes to one's life — very slowly over time — that goes unnoticed to deal with surrounding problems. She was right. Costa Rica is downright dangerous to live in today, and the quality of life is disheartening at times.

During the trip back to Costa Rica, much reflection went into the conversation. This author decided to become a Costa Rican citizen for many reasons, and one of the most important ones was to try to make positive changes to the country. The articles written for A.M. Costa Rica are one example of trying to make a difference. Few in Costa Rica were writing about property fraud and other issues for expats before them. This author believes they have made a difference and expats are now more aware and more careful in their business dealings.

When this author arrived with his family 36 years ago, Costa Rica was truly a paradise. It has a good chance to be so again. It will just take time, as with all evolution. This writer is dedicated to making a difference thanks to A.M. Costa Rica, and this dedication will continue well past the New Year.

Alongside the increase in crime, there are other significant changes. Here are three this author believes deserve special mention: Banking has changed big-time. Trying to open a bank account is now very difficult and sometimes downright impossible. The information required to do so is overwhelming. U.S. expats have an added problem. Banking institutions want W-9 information for the United States government as well as the normal paperwork. Some banks are even requiring the W-9 form for an expat that is part of a company. It is probably due to the new banks opening offices here, like HSBC and Citibank. Both surely have extensive reporting requirements to the United States. 

The transparency phantom, stalking bank information this author wrote about in 2005 is alive and well and is much more scary than originally anticipated. In addition to the phantom, the local tax watchdogs are getting their act together too. New rules approved in 2008 will go into effect in 2009 and reporting requirements for everyone will be much more comprehensive.

Other changes include the country's increased efforts to police the maritime zone and the increased activities to tear down structures in areas that are considered public. In addition to more controls over the maritime zone, the principle of “in dubio pro natura” — when in doubt regarding something to do with ecology, nature is the most important. It wins in any dispute — has taken on an entirely new force.

Mega projects have been closed down all over the country because they have failed to adhere to strict environmental requirements. This fact along with the worldwide financial crises has put a big damper on real estate sales, seriously limiting new investments into the country.

Lastly — and funny — it was very enlightening the position the country took on prostitution and pimping back in July. After much hoopla by the local press and two articles in this newspaper, 20 some brothels were closed down only to open a few weeks later with wheelchair ramps installed for the disabled. The events made a clear statement to the world. That the laws on the books for pimping are not enforced and that Costa Rica is the sex tourism destination everyone thinks it is, much to the vehement denial of the government.

To all, a very Merry Christmas and Happy New Year, let it bring positive changes and a path to new hope for Costa Rica.

Article first published in A.M. Costa Rica on December 22, 2008.