El Residente 2013-03

El Residente Costa Rica’s English language newsle er

March/April 2013

¢1500 March - April 2013

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Contents: President’s Message................. 4 My Costa Rican Experience ....... 6 - Linda Gray

Wild Side of Costa Rica ............ 9

Editor’s Note Changes. For good or for bad, things will likely con nue to go on changing. Each year we change the El Residente in order to try to make it a li le be er, but some mes things change for the worse as well.

In this issue you will read a few ar cles rela ng to change, from immigra on to driving, changes in the capital city, in the theatre, and even a few changes here at the ARCR office.

- Ryan Piercy

LTG: Merely Players ................ 10 - Anne e Halle

Costa Rica on the Globe ........ 12 A Day in the Life...................... 14 - Allen Dickenson

A City Rejuvinated .................. 16

As humans we are funny, in that we always seem to be resistant to change, despite the fact that history has proven that change is inevitable. No ma er what we have done to try and stop it, or con nue to try, eventually change overtakes us.

Allan Garro also brings us some of the changes passed by the government, with its eyes looking towards dealing with the financial problems it faces. Changes that many of us dread.

- Richard Ternouth

Health Care: Face ................... 19 - Dr. Oscar A. Suarez

Legal Update .......................... 21

As the changes con nue, I hope we are all able to adapt.

Ryan Piercy Contact Informa on:

- Allan Garro

Dollars & Sense....................... 22 - Alan Weeks

Business Directory................... 26

This magazine has been published every two months since 1995 as the official communica ons media of the ARCR. Our organiza on provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence.

Published by: Email:

ARCR Administra on info@arcr.net www.arcr.net Ed tor in Chief: Ryan Piercy Adver sing, Publicity: Cindy Solano Office Hours:

Monday- Friday, 9 am to 5 pm CRC me GMT-6

Address:

#101 Casa Canada, Av 4 Calle 40 San José, Costa Rica Tel: 506-2233-8068 Fax: 506-2255-0051

Mailing Address:

P.O. Box 1191-1007 Centro Colon San José, Costa Rica

Since 1984 the ARCR has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents.

We have the experience and ability to help you with your residency applica on, immigra on, business and financial management, real estate purchases and rentals, property management, insurance, pet importa on and much more.

If you wish to place an ad in El Residente, please contact the ARCR main office. Goods & services offered are paid adver sements.

Neither ARCR Administracion nor El Residente research the companies and take no responsibility for the quality of such goods and services.

March - April 2013

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President’s Message

by Terry Wise

Happy New Year, from a New Face The purpose of this column is to provide updates and addi onal informa on about subjects not covered elsewhere in the issue: subjects that may have been too recent to make the regular ar cles, but may be important to our members.

That said, here are four “late breaking” topics about which you need to be informed.

First, there has been a change in the ARCR office: we now have a new Office Manager. Her name is Saicy Quiros. The appointment of Saicy to this posi on is intended to make the office more efficient and give be er service to our members, while also giving Ryan more me to work on special projects that will be beneficial to ARCR members.

Therefore, beginning immediately, we ask that any ques ons about Immigra on, Cedula requirements, Caja, drivers license, etc. be directed her. Her new du es will require her to be away from her desk or in mee ngs much of the me, so Saicy has requested you please send your ques ons to her via email, rather than calling. Her email address is: legal@arcr.net. Saicy appreciates your coopera on and promises to respond promptly.

Second, many of you have heard and asked about the law regarding extending Visas. The law specifies that $100.00 USD fine (called a MULTA) will be accessed persons for each and every month they overstay their Visa. The law has been on the books for a while, but had not been enforced.

Now, beginning April 23, 2013, the law WILL be enforced.

So watch the expira on date on your Visa. It’s never a good idea to “open the door” to the immigra on authori es.

Third, the laws regarding obtaining a Costa Rican drivers license have been changed; it is now a li le more difficult.

And there is a catch. The Costa Rican authori es have determined that a person now must have a valid CEDULA (Costa Rican residency card also called a DIMEX card) to obtain a Costa Rican drivers license. Therefore, if you don’t have a Cedula you cannot obtain a Costa Rican drivers license.

The law s ll allows those with an unexpired foreign drivers license to operate a vehicle in the country during the me their Visa is valid. Now here’s the “catch”; the rules say that if your Visa has expired you cannot con nue driving using your out of country license.

For Immigra on purposes, once the applica on for residency has been accepted and a file number issued, the applicant does not have to leave the country when their Visa expires. However, in order to con nue driving with your foreign license, you need to have a current Visa, which means a person must leave and reenter the country to obtain a new Visa expira on date. So, be careful if you are driving while wai ng for your cedula; technically, to drive legally, you need to keep renewing your Visa un l you get your Cedula.

The last item is that you may have no ced on the cover of January/February issue of the El Residente there is a price in the lower right corner. I’ll explain.

Many companies/businesses who adver se in our publica on have asked for copies to sell in their wai ng rooms/restaurants/ lobbies, or to give to their clients.

However, the prin ng of those addi onal issues would create a financial burden on ARCR. We then recognized that there was an opportunity for ARCR to sa sfy our adver sers, gain addi onal exposure with those who might not be aware of our organiza on, AND have a way to off-set the costs without raising fees to our adver sers or members; that was to create a special issue which could be more widely distributed. It is called, El Residente PLUS and will be sold for 1,500 Colones.

To accomplish this, the current issues are being expanded with an insert which contains ar cles about things Costa Rican; there will be interviews, history, and tourist informa on. Also included will be entertainment pages for children and a crossword puzzle for adults.

Not to worry, the basic El Residente will con nue to be distributed to all members at no addi onal cost, just as it always has been.

Of special interest to ARCR members is that the insert will contain a FREE classified page where they can list items they have for sale. If you want to place a classified ad, send your informa on to: erp@arcr.net To make sure there is no confusion, let me repeat: distribu on of the regular issues of El Residente is s ll included in the membership and is FREE to members; the price on the cover is only for El Resident PLUS which will be distributed at those loca ons where it will be for sale.

That’s all for now. Take care and to offer sugges ons simply email me at: coterry33@gmail.com.

Contest Update: My Costa Rican Experience In this edi on you will find our second place ar cle, submi ed by Linda Gray. Her simple and usual encounter with the local law enforcement provides good insight into the culture here, as well as a wholesome method of dealing with the situa on. Definitely it relates a truly Costa Rican Experience that many of us may have shared already.

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My Costa Rican Experience

by Linda Gray

The Yellow Submarine For about a year, I drove a bright yellow Nissan Xterra.

Did I say yellow? I mean drop dead, arrest me, lightsand-sirens yellow.

One day, some friends and I decided to drive down to Drake Bay for some awesome deep sea fishing. I love the drive to Drake Bay. Once you pass Rincon, it’s all dirt roads, bad bridges and river crossings, but the scenery is some of the most spectacular in Costa Rica.

Think luscious green fields of horse pasture, with rivers meandering through, do ed by majes c Ceibo trees reaching for the sky.

Unfortunately, in my excitement to finally get another deep sea fishing trip under my belt (impossible to pass up for this Gloucester girl), I completely forgot about the me of year. River crossings in the rainy season can be more than a tad treacherous, as we were soon to find out, when the car literally started floa ng.

“Gun it!” my fellow passengers (all men of course) shouted. Gun it? What good is that going to do? We are floa ng, boys. The res are not going to start ac ng like propellers you know.

We finally made it to the other side, but while we were crossing, the current in the river ripped the license plate from the front of the car. I didn’t realize it un l we got back home.

Since I had to take these folks back up to the airport in San Jose in a few days, I beat feet into San Isidro to order a new license plate. In Costa Rica, the Registro (registry) controls all the legal property documents in the country, from real estate to cars. We’re lucky to have a regional office of the Registro right in San Isidro. To get a new plate, I had to bring a le er from my a orney sta ng why the plate was missing (at a cost of $50, thank you very much), stand in line, fill out forms, and … your plate will be here on Friday. Here’s your receipt.

Oh oh. I have to go to the airport on Thursday. It’s going to be a bit dicey, driving seven or so hours up to the airport and back with one license plate missing, in a car that you can “see coming and going.”

So on Thursday, I crossed my fingers, picked up my friends, and headed up the Costanera. I brought the receipt from the Registro as proof that the plate was on order. I mean, really, do they expect me to just NOT DRIVE the car while I’m wai ng days for this new plate?

Yes, indeed; apparently that’s exactly what they expect.

Tarcoles Bridge, north of Jaco. There is one spot where the Transitos (traffic police) always set up shop, to catch speeders and other miscreants. When I came driving by in my bright yellow buggy, the officer mo oned me to pull over. Oh crap. Here we go.

“Buenas dias señora. Did you know that you are missing your front license plate?” he smiled, leaning in, checking out the other gringos in the car (who had just finished smoking a joint in the back seat, and were trying desperately not to breathe in his face).

“Well, yes, actually it got ripped off when we were crossing a river in the Osa a couple of days ago,” I said with a big smile, trying to distract him from the giggling fools in the back of the car. “I went to the Registro and ordered a new plate, but it won’t be here un l Friday.

Here’s my receipt. I had to take my friends to the airport, or I wouldn’t be driving the car.”

“You know, it’s a REALLY big fine for driving without a license plate,” the officer said, very seriously.

At this par cular me, Costa Rica, in its usual notthinking-about-the-consequences wisdom, had just ins tuted a new set of traffic fines that were completely outrageous considering the average income level of its populace. For example, $440 for not wearing a seat belt, $700 for speeding (only 12 miles above the speed limit), $500 for talking on a cell phone, etc. It was a poli cal controversy being debated throughout the country at the me.

“I know. These new fines are crazy aren’t they? How do the Ticos afford to pay them, it makes no sense.” I said, ba ng my eyes, coyly smiling. (Seriously, woman you are too old for this…)

“Oh, so you know,” he said surprisingly, “Do you live here?”

Everything went fine un l we were just a er the El Residente

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“Yes, I live down near Dominical, I have a finca with a lot of horses. Do you like horses, señor?” I said hopefully, trying to become his new best friend. In Costa Rica, making small talk with a big smile is the culturally acceptable method for backpedaling your way out of a s cky situa on. So far, so good.

“Well,” he said, smiling with an cipa on, “I’ve decided that since you are such a nice person, I’m not going to give you a cket….but…. it’s a REALLY big fine you know.”

Pregnant pause. He’s wai ng for me to whip out the wallet, I know it. Bribery is not only common, it is completely expected in a situa on like this. These transitos probably make a month’s salary every day, pu ng the screws to innocent tourists.

“Thank you SO much señor, that’s really nice of you. I sure do appreciate you not giving me that cket,” I said, in my most charming, apprecia ve manner.

He wasn’t quite sure what to do at this point. The bribe he was hin ng at just wasn’t forthcoming. So he had to make One Last Try. “You know, I’m not going to write you a cket,” he

March - April 2013

offered, “but it’s a REALLY REALLY big fine.”

“Well, señor, I can’t tell you how much I appreciate your kindness. Thank you again.”

“So,” he said, dejectedly, “are you driving your friends to the airport now?”

“Yes that’s right. They have a flight at mid-day.”

“You’ll be coming back this way a er you drop them off?”

“Yes, some me this a ernoon,” I said, realizing that my Oh So Easy To Spot car was going to be my downfall.

“Well then you have a good day, señora, drive safe.”

“Thank you again señor. You have a good day too.”

Of course I did NOT drive home via the Costanera , knowing full well what would be wai ng for me. Instead I went home via the Cierra del Muerte, the mountain road known as the Road of Death. In this case, it was the Road of Savings. Or possibly, the road of People Avoiding Giant Traffic Tickets. In any event, it worked out just fine.

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Wild Side LXXII

by Ryan Piercy

Thick-kneed Neighbors Another sort of oddball avian found in Costa Rica is the Double-striped Thick-knee, Burhinus bistriatus, known also as a Stone-Curlew. Of the nine species, it is the only member of a family found locally; seven are found only in the Eastern hemisphere. More odd s ll is the name, which is evidently derived from the mistaken impression that their rather large ankle joints are actually knees.

olive. Both sexes will take turns incuba ng as the other stands a short way off. In 25-27 days the young will hatch and soon leave the nest under the guidance of the parents.

Males and females are quite alike in appearance with finely streaked gray-brown upper parts and a pale neck blending into a white underbelly. They boast a black stripe on the side of their crowns and their big yellow eyes surround a black iris. Their bill is a dusky brown with a yellow base, and their legs are clearly yellow and very long. Their feet have three short, forward poin ng toes that are webbed at the base, with no hind toe at all.

There are four sub-species with varying size and plumage, though it is very difficult to tell them apart, par cularly since it is hard to get near them. They are not endangered due to their extensive range from Southern Mexico to Columbia and Brazil and, in fact, have benefited from the clearing of woodlands to make pastures. The popula on is considered to be quite stable, numbering in the millions. Es mated lifespan is fi een to sixteen years in the wild.

This medium sized bird stands about 20 inches (50cm) and weighs up to 780g. They are fond of open spaces and can be found on the ground in sandy or stony terrain, savannahs, bushy dry areas, pastures, stubbly fields, burned areas, and open meadows in scrubby woods. Their large eyes give them good night vision ability, as they are primarily nocturnal. In the day they will lounge around, preening themselves and res ng in silent camouflage. If approached they will run away quickly in fright or, less frequently, fly slowly away at low al tudes. It is unfortunate they avoid taking to the air as they are beau ful in flight with the striking designs and coloring on their wings.

In Costa Rica the bird is an abundant resident, locally called the Alcaraván Americano. It can most o en be found on the pacific coast lowlands, especially the area from Guanacaste down through the Puntarenas. A good place to look for them is on open grasslands or pasture areas and, if you can determine where they are nes ng, the eggs can be studied at a close distance during the correct me of year. Remember, however, that the parents will be wai ng in extreme concern a short distance away.

At night they will become ac ve, foraging for insects, worms, snails, scorpions, small rep les and frogs, and some mes seeds or buds. They will also become noisy, with calls and loud nasal trills, most especially under the light of a shining moon.

The nest of a Thick-knee is inconspicuous and also rather strange, being nothing more than an unlined scrape on the bare ground. Here, during January through April, they will lay one to two eggs which are rather large and boldly spo ed in brown, black and gray over a buffyMarch - April 2013

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LTG: Merely Players

by Anne e Halle

“Ac on is Eloquence” W Shakespeare It was in 1955 that Jonas Salk announced to the world that he had produced an effec ve vaccine against Poliomyeli s, a dread disease that can kill or cripple thousands of its vic ms during a single epidemic. The US polio epidemic of 1952 resulted in 3,145 deaths and le 21,269 people seriously handicapped.

An iron lung was used to help those in the acute phase of the disease to breathe. If the pa ent could survive this acute phase then there was hope for recovery.

Invented in 1927, but not in general hospital use un l a er 1939, an iron lung retailed for about $1500, about the same price as a house in those good old days!

from their shows to support charitable organiza ons in Costa Rica. Pu ng on a show is a very expensive project when one considers the costs of performing rights, performance and rehearsal space, set construc on, props, and costumes. The group has experienced its lean years in terms of profits, but it has always tried to find a way to provide support.

Organiza ons such as the Fundacion de Angel de Amor, which provides accommoda on for abandoned seniors in its facility “The Tom and Norman Home” in Guapiles, and Open Arms of Costa Rica, a collec ve of benefactors whose aims are to improve the lives of those they encounter by providing funds for educa on and medical programmes, have both been the recipients of funds raised during LTG Christmas events in recent years.

Last season saw a mutually beneficial collabora on between the Costa Rican Humanitarian Founda on and LTG. The script for one of the short plays featured in their produc on My Life Is a Crazy Quilt was provided by the women of La Carpio. The play told their stories and also featured the quilt they made to record them. The women a ended the opening night as honoured guests and received a por on of the proceeds to help them in their work. The unique handra ed angels that the women make were also sold during the intermission.

This was not the first me that LTG has worked to benefit this very worthy organiza on and I do not think it will be the last.

What you might ask has this to do with the Li le Theatre Group?

In 1950, with Bert Williams as its president, LTG worked very hard and managed to raise sufficient funds to purchase, not one but two, iron lung machines, and donate them to the San Juan de Dios Hospital. There were none of these life saving devices in Costa Rica at the me. The hospital’s director did not feel that they would ever be used and wanted nothing to do with them, so LTG had to pay a technician to take care of the machines, and ensure that they would be in working order, in the event of a crisis.

Three years later, Costa Rica was ravaged by a polio epidemic, and more than 2000 Costa Rican children were afflicted. There can be no doubt that the forward thinking and the dedica on of those founding LTG members was responsible for saving many lives during that terrible me.

With the support of our audiences and our members we hope to con nue to be of service to the community for many years to come.

The Na onal Theatre has started a new ini a ve this year with its “Theatre in the Theatre “seasons. These are described as being “a family friendly event for drama lovers, which will be held at least twice each year”.

Performances will occur on three mid-week a ernoons at 2pm. This me slot was selected as a result of data obtained from audience surveys conducted at the Teatro Na onal during 2011.

The opening event, a presenta on by the Na onal Associa on of Modern Puppet Theatre (MTM) en tled ODISEA, certainly seemed to be very well supported. The puppetry and scenic elements were most crea ve and excellently presented. This 60 minute entertainment was more than worth the cket price of 2000 colones.

The second event is planned for later in the year, but as yet no details are available.

Throughout its history LTG has con nued to use profits El Residente

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On February 8th, several members of LTG, very talented musicians and singers, came together under the directorship of Barry Slutskin, to present an informal evening of cabaret style entertainment in the Shakespeare Bar, which is located in San Jose at the Teatro Laurence Olivier. This is a great li le space with a unique ambience, which frequently hosts art exhibi ons as well as music nights. This compara vely new venture for the present membership was declared a resounding success. We hope to present more of these events throughout the year.

Also planned is an evening of deligh ul roman c comedies featuring the work of renowned French playwrights of the belle epoch. This event will be part of a fund and awareness raising campaign called “Give Your Heart to LTG”. Jim Theologis, well known ar st and teacher as well as stalwart supporter and ex-president of LTG, has put his considerable talent at LTG’s disposal, and has designed an original “HOT LOVE” logo for T shirts. These T shirts went on sale at the beginning of December 2012 and will remain available throughout 2013.

March - April 2013

God of Carnage by Yasmina Reza will be coming to San Jose in April 2013. Directed

by Noel Montagano, it will feature some of Li le Theatre’s best known actors: Tom Humes, Lisa De Fuso, and Susan Liang, as well as a visi ng professional actor from the US, James Kissane.

God of Carnage, a study in the tension between civilized surface and savage ins nct, definitely delivers the cathar c release of watching other people’s marriages go boom. This award winning play promises to be highly entertaining and well executed. Tickets will be going on sale on April 1st 2013 and there will be weekend performances from mid April through to the beginning of May. LTG welcomes both new members and poten al directors and offers plenty of opportuni es to par cipate both on and off the stage. If you would like more informa on about The Li le Theatre Group please feel free to call Anne e Halle on 8858- 1446, or contact us through the LTG website at www.li letheatregroup.org.

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Costa Rica on the Globe by Ryan Piercy The Hell Drivers Costa Rica is just a small country with a mainly farming background, and yet Costa Ricans have always had their eyes set on the greater world. In the 1800’s they began the export of coffee, followed by other crops. In 1884 San Jose was one of the first ci es in the world, and the first city in La n America, with electric streetlamps. The

Na onal theatre was finished by 1897, in order to bring famous acts from the world over to the people of the country.

Over the following decades this fascina on never changed and with the development of the motor car, along with the rest of the planet, Costa Ricans became a racted to the new mode of transporta on and with speed. During the for es and fi ies the world became enthralled with a new sport, Stunt Drivers, and this li le country was no different.

In February of 1960 the most famous of these acts, The Hells’ Drivers, arrived in San Jose. The group, which had driven to Costa Rica, was owned by Jack Kochman, and was one of three groups Kochman orchestrated. The show featured Jasper the Clown, s ll considered as the number one thrill show clown ever.

Billed as “Los Volantes del Infierno”, Kochman’s group performed in the Na onal Stadium, built in 1924, with

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sea ng for up to 25,000. The show was so popular that they experienced sell-out crowds and, originally

scheduled for only one weekend, they were held over for an addi onal two days for a total of six shows.

Tickets started at just three colones, about US $0.50 at that me. However a seat in the shade ran five colones and seats in the balcony were ten colones.

on wheels, in Simca Aronde vehicles, leaving them in perfectly ver cal posi on and holding for approximately one hundred meters on just two wheels, without being pped over. No doubt both the skill of the driver as well as the consistency and stability of the Simca Aronde are amazing.”

Jack Kochman was also the producer behind these breathtaking events, with years of careful planning for each stunt. He had begun with ten cars, changing the act each season, adding more spectacular stunts, and finally headed on to shows around the world. Kochman himself once stated “the roar of engines, the whine of res, the sharp smell of exhaust - they’ve always had a thrill for me. And I guess they always will.” In 1960 he shared his passion with the li le country of Costa Rica, giving them a first-hand taste of the thrills experienced in the face of speed and danger. One has to wonder if it was one of the causes that has led to how the Ticos themselves drive today . . .

The drivers enthralled the audiences with thirty different stunts, guaranteed to send chills down the spine, intermixed with the crazy an cs of their legendary clown. Running the ramps at hair-raising speeds, aerial leaps, and lt-ups just short of rolling, were commonplace stunts. Amongst all the acts were rollovers, crashes, burning vehicles, and Jasper the clown who would survive a near miss by two cars passing on either side of him at high speeds.

One of the most popular stunts was when “Dapper” Dan Fleenor , Kochman’s headlining driver at the me, demonstrated his “Salto de la Muerte” (Jump of Death!)

This tall Texan was renowned as a great stuntman and later purchased the Hurricane Hell driver’s group from Jack Kochman. His was the last act in North America to perform a ramp-to-ramp jump while another manned car passed underneath the airborne vehicle at the same me.

The tricks that really caught the a en on of the local press were not the death defying acts, but the acts of precision and skill. A local reporter was rightly impressed and found the en re show “Simply Fantas c”. He was most impressed by the driver who drove on just two wheels. He went on to say, “The most sensa onal are the incredible acroba cs performed by these masters March - April 2013

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A Day in the Life

by Allen Dickenson

How To Sell Your Car As some may already know, I have a service where I help expats “relocate” their vehicles. It’s mostly just hooking up those who want to buy a vehicle with those who are trying to sell. People usually come to me a er trying to sell on their own for a while; maybe a er they ran out of me before they had to leave. Or maybe it was just bad luck or they got red of trying, but for whatever the reason, if they are stuck with a vehicle they haven’t been able to sell, some will contract with me to be their broker.

Admi edly, selling a vehicle in Costa Rica can be frustra ng because it can be a problema c process, especially when different languages and cultures are involved. Added to that, there are so many used cars, trucks, and SUVs available here that any vehicle can be difficult to sell.

So, before you get to where you need to contact me and pay me a small fee (Hey, I have to feed those five kids somehow!) to hopefully find you a buyer one day, I want to pass on some ps I have learned that may help.

First, determine the fair market value of your vehicle.

DON’T base your price on emo on or gut feelings. You may have deep affec on for your ride, but the buyer won’t be buying emo on; they’ll know ahead of me what a fair price is. Instead, go to several web sites and look for comparable models and use them as a guide. You can also look in the newspapers – La Nacion has a large used car sec on once a week that can be a reference.

A TIP: Most adver sed prices are 10% - 15% higher than the “street” price. That’s because buyers expect to haggle and bring the asking price down, so sellers set their price to accommodate some reduc on. But have an absolute bo om price you will accept in mind.

Exposure is the key to selling. You can’t expect buyers to beat a path to your door if they aren’t aware of what you are offering, no ma er how good the deal. To increase awareness, put some signs or a no ces on the vehicle (white liquid shoe polish is good to write on windows, but NOT on painted surfaces) so that when you drive it people will see it. Be er yet, for about 2,500 colones each, local sign shops can make up adhesive backed le er signs you can s ck on your car. Either way, make sure your telephone number is prominent and, if you don’t speak Spanish well, include another number for someone who does that will help you.

Post a lis ng everywhere on the Internet you can think of – Craig’s List CR and all the Yahoo bulle n boards for Costa Rica (Costa Rica Living, Central Valley Living, Young Expats, Escazu News, Costa Rica Classified, etc.)

Consider the classifieds in the on-line newspapers too.

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Also, find one or more of the Costa Rica used car sites, CRAutos.com, for example, and list it there. Give a good descrip on and add pictures where you can, but be honest. Men on anything that would add value or en ce a buyer. Make sure you specify what part of the country you are in too, and give good contact informa on. Here’s an example: 2008 Nissan Maxima. Santa Ana. V6, automa c transmission, 45,000 miles (30,000 km). Four doors.

Original owner bought new in US and imported. Car maintained to perfec on. Leather interior with custom wood accents, special (factory installed) stereo system with CD, USB port, and AM/FM radio. Alarm system.

Original floor mats. Cold A/C. Aluminum wheels, new res. Never wrecked and no major dings or scratches.

Priced below book for quick sale: $5.00 USD. For more info in English, call 5555-1234, in Spanish 8901-2345, or email at: mycar@bigbucks.com When lis ng the price, DO NOT include the phrases “Or Best Offer” or “Nego able”. You are just telling poten al buyers you will accept less than your asking price.

Prepare some handout sheets lis ng the basic points of the vehicle (year, engine and transmission type, mileage, etc.) and carry them with you to give to interested buyers.

A TIP: Prepare signs and handouts in BOTH English and Spanish – you don’t know who will be looking.

Another TIP: Have your car regularly, professionally cleaned, inside and out. Think about what you’d like to find when you look at a car for sale. A clean piece of crap will sell faster than a dirty one.

One more TIP: Get any minor problems repaired before pu ng the vehicle on the market. A buyer will use anything, no ma er how minor, as jus fica on to beat your price down. Be prepared to bargain, but don’t let the buyer be in control of the process by no ng small defects.

If possible set the vehicle outside where people going by can see it is for sale. Occasionally drive it around your local area and maybe park it on a busy street during the day for drive-by exposure.

Be pa ent; expect some me to elapse. Don’t become discouraged early and lower your price too fast – you are looking for the person who wants YOUR car; unless you offer the vehicle at a super, super bargain basement price, responses may be slow. (Some people think that lowering a price to s mulate a sale is suspicious and indicates defects.) If you have the me, begin adver sing well before you ul mately want to sell, but be prepared to close the deal right away when a legi mate buyer appears; buyers won’t wait.

A couple of addi onal notes: If you adver se on Craig’s 14

List, be aware that you might get “Phished.” Craig’s List is especially prone to this. For example, be very suspicious of an email saying something like the sender wants your car but is “off-shore” and doesn’t have access to their bank account, but, they do have a PayPal account and will pay that way. Then, and this is a key phishing phrase, they’ll have their AGENT / REPRESENTATIVE / FRIEND take delivery of the vehicle for them. Believe them and you’ll end up without the vehicle or the money.

– Leave all the documents (current Marchamo, ownership papers, etc.) for the vehicle behind; don’t take them with you.

Take reasonable precau ons. Don’t meet poten al buyers alone or in isolated areas; meet them in the day me, or at least in a lighted, high traffic area like a mall parking lot, preferably one with security. And if you are a woman, take a male friend along. (Sorry, I’m not being sexist, just prac cal.)

– Make arrangements to maintain insurance on the vehicle (especially if it’s to be driven.)

It’s legi mate for a buyer to want to drive your vehicle, but never, NEVER EVER, let them drive your car alone – always ride along. Make sure it’s just you, plus maybe your friend, and the buyer in the car. If they want to bring their friend along (which they may call their mechanic) DO NOT let them. Two of you can control the situa on.

Two of them can change the odds greatly.

What if you are leaving the country and the car hasn’t sold?

This can be a big problem for some expats – they may have had the vehicle on the market for a while, are scheduled to relocate, but nobody has purchased their car, even a er the price has been reduced considerably.

A vehicle is a pre y sizable investment and can’t just be abandoned or given away. What to do?

Unfortunately, Costa Rica doesn’t offer many alterna ves.

The best, and most common op on, is to leave the vehicle with a designated representa ve, along with the Costa Rican equivalent of a Power of A orney, to sell for you. There is risk is in doing that and, if you choose to go that route, there are some things that need to be taken care of before hand:

– Establish a line of communica ons via email or telephone where the representa ve can easily and quickly contact the owner to get approval in case there is an offer that is less than the previously established lowest acceptable price.

– Establish how the sales proceeds will be transferred.

If the amount exceeds $10,000 USD, there may be tax implica ons, or at least bank transfer rules. Also, if there is to be compensa on paid to the representa ve, paying that money may require an addi onal step. Check with a reputable a orney so this informa on is decided up front.

Lastly, be pa ent. The representa ve isn’t going to be able to do more that you could when you were trying to sell it.

A quick final point: If you are looking to BUY a vehicle, have a reliable mechanic inspect it for you first. You’ll probably have to pay him a small fee, but it is a good investment because there is a lot of “junk” on the roads of Costa Rica – and you don’t want to spend your money on one with hidden damage. Most people (Gringos and Ticos) have decent cars to sell, but there are some who will try to pass off something as more than it is, so be cau ous. (There are some areas a mechanic can’t thoroughly inspect, like inside the engine, but you will s ll have an advantage of knowing the vehicle is otherwise sound.)

And there you have it. Be realis c, be cau ous, and good luck selling (or buying) your vehicle. I hope this helps everyone have a happy and sa sfactory car selling / buying experience.

– First and foremost is find someone you trust implicitly because, for all intents and purposes, that power of a orney allows them to “own” the vehicle. That document lets them do anything with it AND the proceeds from it when it is sold. (An op on is to give the power of a orney to one person, but leave the car to be sold with another. That is a bit cumbersome, but it avoids pu ng all the power in one person’s hands.)

– Make a clear agreement between the representa ve and yourself as to what exactly is expected and allowed of them. (Can they drive the vehicle? Where will the car be stored? What’s the bo om line selling price?

How will communica on take place? Who will pay for expenses like adver sing, repairs, new Riteve inspec on or Marchamo. And when will any expenses be paid?)

March - April 2013

Allen Dickinson is a member of ARCR. A er serving 23 years in the US Navy he se led in Pensacola, Florida, where he resided for 24 years. In 2006 he re red and relocated to Costa Rica. He has owned over forty personal vehicles and has bought and sold many others.

He can be reached via email at: allen@humphree.net.

15

A City Rejuvinated

by Richard Ternouth

A Highway to Somewhere Highway 27 This is the second in a series of ar cles focusing on the dynamic transforma ons currently taking place in the area of San Jose. This ar cle will stray a li le bit from the greater San Jose area and take a look at the Autopista Del Sol, which has its beginnings in La Sabana and stretches seventy-seven kilometers to the port of Caldera, near Puntarenas. It has also had tremendous impact on outlying areas from Guanacaste to Uvita.

A Long Time Coming The highway opened in January 2010, two months ahead of schedule, a er thirty-five years on the drawing board and many delays. From La Sabana at the western end of San Jose, it heads west ending at the port of Caldera.

Although it was originally introduced as the Autopista Del Sol, it is also called Highway 27, The Caldera Highway, or the Peace Highway. It was completed at a cost of approximately 230 million USD.

A Ma er of Concern One of those delays occurred a year before the official opening when the environmental control panel, the Tribunal Ambiental Administra vo, suddenly halted construc on on much of the new highway between Ciudad Colón and Oro na. This was due to concerns about the stability of the road’s underlayment and erosion, and excess sediment flowing into about twenty rivers along its route. There were also issues about the steep slopes bordering the route which were suscep ble to mudslides in the rainy season. President Laura Chinchilla stated that repairs to the Caldera highway were a priority for her, and from my latest trips along the highway it looks like she has kept her word.

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Those who have traveled Highway 1 (the Pan-American Highway) prior to the comple on of Highway 27 will remember those long, dreary stretches through the mountains between San Ramon and Puntarenas where, if you got behind big trucks, the traffic some mes crept along at a snail’s pace. With the new highway those problems were allayed; you can now get from San Jose to Caldera in about an hour.

The road also provided a new way to get to Guanacaste.

From Puntarenas you can zip up to the Pan-American Highway and save about two hours of travel me. And a trip to Jaco is now only one and one-half hours, which puts des na ons such as Manuel Antonio, Dominical, and Uvita closer than ever before.

It’s a Win-Win The new highway presents a win-win situa on for residents, tourists, and Costa Rican businesses. The comple on of the new infrastructure has provided important connec ons that will con nue to enhance Costa Rica’s already surging interest among travelers and expats, and s mulate re-discovery by locals. There are many no ceable benefits such as: • Increases in investments and economy in such towns as Atenas, Ciudad Colon, Santa Ana, Oro na, and San Mateo.

• Rising land values along the highway where some have almost doubled.

• Job crea on through the construc on and subsequent opera onal needs, such as toll booth operators.

• Transporta on mes and costs for goods entering from the ports have been reduced.

• More diversity of goods and services are available in previously remote areas.

• Reduc on in the number of traffic accidents that were caused by overburdened vehicles traveling on the old mountainous, narrow, poorly lit country roads.

Closer to Home: Santa Ana and Escazu Emerging from La Sabana and going west a few kilometers, one cannot help but no ce the tremendous boom in commercial development on both sides of the toll road, all due to their high visibility and the quick and easy access from the highway. Signs for the businesses along this stretch read like the who’s who of commercial and retail and services. Star ng with Walmart, there is Office Depot, EPA, Avenida Escazu (did you say Starbucks?), and globally recognized hotel names. And of course, there is the ever expanding Mul -Plaza which 16

is populated with many interna onally famous brand stores.

Traveling west a bit further, one can see where high end residen al development has exploded in and around Santa Ana, partly due to the quick travel me to the beaches and the short commute to San Jose.

Viewed from the western end, for the residents of the Central Pacific area, the new highway has cut travel me to San Jose down to less than two hours. Those traveling in to shop, take care of business, go to the airport, or just visit friends or family, can now make the trip much more quickly and easily.

Approaching San Jose there are off ramps to Rohrmoser, giving great accessibility to the commercial developments, businesses, shops, services, and restaurants in Sabana Sur. Or if the traveler desires to go further east, they have easy access to the circunvalación; the ring road which runs around the perimeter of the city.

Highway 27 ends at the eastern end of La Sabana Park,

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but from there the commuter has immediate access to downtown San Jose via Paseo Colon or other routes such as Avenidas 6 and 10, which lead into San Jose Central.

With quick and easy access, travelers and residents alike can now visit and enjoy what San Jose has to offer in museums, cultural events, music and theatre, stadium events, the new Chinatown, or take a leisurely stroll along the many new pedestrian walkways in San Jose Central.

Anyone got a Jet Pack?

Not to mislead anyone, there is s ll way too much traffic on our roads, and that will not change. During rush hour (which at mes seems like all day) and holiday weekends, my preferred mode of transporta on would be a Jet Pack. But if you don’t have one of these handy devices, and have not yet had a chance to travel our new highway, I encourage you to give it a try. In fact tomorrow I am on my way to the Dominical and my mouth is already watering knowing there is a great Fish Taco awai ng me only one and one-half hours away in Jaco!

17

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18

Health Care

by Dr. Oscar A. Suarez

A New Look: Facial Rejuvina on Once called face-li s and later known as cosme c surgery, facial rejuvena on is a common subject of interest for many who visit Costa Rica. Herein I will discuss the modern state-ofthe-art for those whose may have an interest in the subject.

The way we appear to ourselves and others is a very important aspect of how we feel about ourselves, as well as having an impact on how others perceive us. Because the face is o en the first thing many people no ce, emphasis on its appearance has become widespread. Consequen ally, facial rejuvena on has become a very important and popular treatment within the pantheon of modern plas c surgery.

Not long ago those procedures o en involved an extensive surgical procedure with a very long recovery me; one which frequently le s gmas, including scars, that revealed that a surgery had been performed. More recently facial fillers such as Botox, and skin resurfacing, have gained popularity. The long term success and poten al problems with each of these procedures, however, was largely unknown.

The profession now has the benefit of many years of scien fic studies of surgical and non-surgical facial rejuvena on procedures. Following an extensive number of pa ents and conduc ng many scien fic studies, combined with different in-depth examina ons of the various modali es of facial rejuvena on, it has been determined which are the safest and most effec ve.

This informa on, combined with each pa ent being evaluated individually to fully understand their needs and expecta ons, is used to determine the best procedure, with the lowest poten al for future problems, for that person. As a result, many pa ents opt to combine surgical with the non-surgical procedures to get the very best possible outcome. In every case, the ul mate goal is for the pa ent to achieve a natural look, a shorter recovery period, and to be happy with their ul mate appearance.

When we use the term facial rejuvena on, what are we talking about? Rather than the days of a complete facial surgery, the science now more o en concentrates on various features of the face individually.

There are several main focal areas that, when combined, make up the image others see. The primary features are the eyes, which play a very important role in the way someone appears. As persons age the eyelids begin to change and things like crow’s feet or drooping eyelids start to become evident.

Crow’s feet are an easily corrected problem commonly using a non-surgical procedure, o en Botox or Dysport. This procedure, however, is only for a select group of pa ents.

Another common problem is excess skin that may restrict peripheral vision; fat pads in the lower eyelids and / or other condi ons that cause closing of the eye opening. Correc ng these condi ons is more o en a surgical procedure. In each

March - April 2013

case the plas c surgeon must evaluate the pa ent individually to determine which procedure(s) will be best to get the results the pa ent desires.

The second most frequently no ced facial feature is the middle face or cheek areas; folds and lines which begin on the sides of the nose and extend downward toward the cheeks.

As we age, these lines get deeper and more pronounced.

The most popular procedure for correc ng this problem is the use of fillers such as hydroxyapa te (Radiesse®) and hyaluronic acid (Juvederm®, Restylane®, or Teosyal®). These types of fillers can also be a wonderful solu on for the ver cal lines around the mouth called Marione e Lines.

Some mes other features, such as the eyebrows or forehead (frown lines) must be considered and included to get ideal results. Depending on the extent of the condi on and the pa ent’s individual characteris cs, fillers can be u lized in combina on with Botox for these areas. This treatment can achieve an incredible result. And, for those pa ents who are concerned about the loss of tone and elas city of the facial ssue, there is now a procedure that combines heat by abla ve and sub-abla ve radio frequency to firm up that ssue for a more youthful appearance.

The third most common concern of pa ents is the appearance of the neck. Non-surgical procedures are only able to help in mild forms of the loss of elas city of the ssue around the neck. In minor cases, abla ve and sub-abla ve radio frequency treatments can be u lized to firm up the ssues.

In other selec ve cases, Botox can be used for the strong muscular bands. Commonly, neck li surgery is indicated independently or in combina on with a full face-li . Another procedure that has been u lized for the cheeks and neck is the technique placing treads in the appropriate areas. The long term results, however, have been shown to have a very limited effect and are most successful in those with very thin faces.

There is never just one solu on for every pa ent and open communica on between the pa ent and surgeon is crucial.

One pa ent may want to start with non-surgical procedures and later, when the correct me comes, move on to a surgical procedure. Others may need to address their concerns by star ng with a surgical solu on and, in me, complement it with non-surgical procedures.

Each person is different and there really is no formula. A thorough examina on and consulta on with a Board Cer fied Plas c Surgeon will help determine the best approach for each individual pa ent.

As you can see, there are many different op ons available to help a person achieve their personal degree of desired facial rejuvena on. In all cases, precau onary measures such as u lizing skin moisturizer and sun protec on, ea ng a balanced diet, and ge ng regular exercise and appropriate daily rest, are important for maintaining healthy skin.

If you are concerned about your facial appearance there are solu ons, if you know the op ons.

19

Alcoholics Anonymous Groups meet daily throughout the country; mes and places change frequently. Call for up-to-date informa on. San José 2222-1880 (Anchor club, also serves Narco cs Anonymous) Av 6 Calle 1, 2nd floor Maryland Building. Heredia (Laura) 2267-7466, Puerto Viejo Limon 2750-0080, Zancudo 2776-0012, Tamarindo 2653-0897, Flamingo (Don) 2654- 4902, Manuel Antonio (Jennifer) 2777-1548, Jacó (Nancy) 2637-8824, Zoo Group Escazu 2293-4322. Grecia (Jay) 2494-0578. Southern Zone, mee ngs in English & Spanish, 8634-9241. Puriscal, Fred 8866-0128.

Al-Anon Mee ngs English language Al-anon mee ngs are open to anyone whose life has been/is affected by someone else’s problem with alcohol.

Mee ngs are one hour long and held twice each week in Escazu centro, above the Buena Tierra Restaurant, 25 meters south of the San Miguel Catholic Church. Tuesday’s at noon and Thursday’s at 10: 30am. Tel: 89 93 17 62 (Rosemary) and/or 22 28 10 49 (Barbara) email: rosemaryzitek@yahoo.com. Also in Grecia on Tuesdays at noon (English), contact Cheryl at 2444-1515.

American Legion Post 10- Escazu The oldest and largest American Legion Post in Costa Rica meets at 12 noon on the first Wednesday of each month at Club Cubano in Guachipelin. For informa on and map, go to the website at amlegioncr10.com/met_loc.html, or call John Moran at 22321680.

American Legion Post 12- Golfito Mee ngs are held 4 pm 1st Tuesday every month at Banana Bay Marina. The Golfito GOVETS have been helping Southern Costa Rica for over 20 years. Contact Pat O’Connell at walkergold@yahoo.com or 8919-8947, or Mel Goldberg at 8870-6756.

American Legion Post 16- Goicochea Mee ngs are the second Wednesday of the month in the Hotel of the Hospital Clinica Catolica. Lunch at 11:30 and the mee ngs at 12:30 Contact Jim Young at 2524-1265.

American Legion Auxiliary The Legion Auxiliary meets the Second Saturday of each month, at 1300 hours in Moravia. Contact Doris Murillo 2240-2947.

Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more informa on contact us at costaricabirding@hotmail.com Canadian Club The Canadian Club of Costa Rica welcomes everyone to join us for our monthly luncheons, and at our special annual events, like our Canada Day Celebra on, no passport required. For informa on visit our website: www.canadianclubcr.com Democrats Abroad Democrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Nelleke Bruyn, 22793553, e-mail cr.democratsabroad@yahoo.com. Join Democrats Abroad at www.democratsabroad.org. Register to vote absentee at VoteFromAbroad.org!

Li le Theatre Group LTG is the oldest con nuously running English-language theatre in Central or South America. The group currently puts on a minimum of four produc ons a year offering a choice of modern, classic,

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serious, and farcical plays. The group’s monthly social mee ngs are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m. and everyone is welcome. Membership: Student C2,500, Adult: C5000, Family: C8000. Also, earn your Wings, become an LTG Angel.

For more informa on Call the LTG Box Office 8858-1446 or www.li letheatregroup.org Marine Corps League Meets at 11am the 2nd Saturday of every month, at Tres Hermanas Rest. big bull statue in front. On service road opposite Hospital Mexico on the autopista. Call Bill Enell at 8812-0126.

Newcomer’s Club Newcomers Club of Costa Rica (for women) meets the first Tuesday of every month, September through May. September mee ng will be an interest fair. Contact: 2416-1111 costaricaporo@yahoo.com or h p://www.newcomersclubofcostarica.com PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 830 to 11:30 am. Two months Free Trial for newcomers. For informa on call Chuck Jennings.

Phone 2266-0123 www.pcclub.net Republican’s Abroad Republicans Abroad meets the third Monday of the month at 11: 00 am at Beso’s Restaurant in Sabana Sur. Contact Dick Macauley at 2439-2897 or dickmacauley@yahoo.com.

Radio control Sailing Club Meets at Sabana Park Lake. For informa on contact Walter Bibb.

Wwbbsurf40@yahoo.com Wine Club of Costa Rica Please mark your calendars. The wine club usually meets at 1 P.M. on the last Sunday of each month. Join us to tantalize your taste buds and expand your educa on. For more informa on on upcoming events please contact us. Phone 2279-8927, 2257-2223 Women’s Club of Costa Rica The Women’s Club of Costa Rica is the oldest, con nuously opera ng, philanthropic organiza on for English-speaking women in Costa Rica. Founded in 1940, WCCR now includes over 250 members represen ng 25 countries worldwide, drawn together by the mo o: Friendship through Service. The Club a racts fascina ng women who are interested in serving community needs in Costa Rica, par cularly focused on children’s educa on while, at the same me, making deep, meaningful, personal rela onships.

Along with its philanthropic fundraising ac vi es, WCCR also hosts regular lunches, teas and many special interest groups, including a Professional Women’s Group. Guests are welcome and further informa on and a calendar of planned events can be found at www.wccr.org Women’s Interna onal League for Peace and Freedom Open to men too. English language group in Cariari de Belen, English-Spanish group in Heredia, Spanish language group in San Jose. We work on peace and human rights issues. Call Mitzi, 24337078 or write peacewomen@gmail.com.

Veterans of Foreign Wars: Post 11207 No-host lunch at 12 noon in the Club Colonial Casino dining area, mee ng at 1:30 pm on the second floor. All members are welcome plus veterans who served overseas may join. Call Bob Sempell at 2588-1475.

20

Legal Update

by Allan Garro N.

Government Raises Taxes and Tariffs The cost of living in Costa Rica for both locals and expats has been rising a great deal lately. The logic applied by a number of countries to jus fy raising taxes is because an economic recession is on the minds of our lawmakers, whether it makes sense or not. A er a huge fiscal plan failed to be approved last year by Congress (thank God) the Presidency found a shortcut to increase income by convincing Congress to change some laws. Here are a few examples of the ways things have become more expensive from a legal point of view.

Luxury Home Tax In January 2010 the Luxury Homes Tax came into effect, imposing a tax different than the territorial tax to homes with a construc on value higher than 100 million colons – US $200,000.00 - in which case the value of the land was taxed as well. The law forces homeowners subject to this tax to file a new declara on every three years, which means in 2013 it is me to update the value again. The limit was modified to 117 million colons –US $234,000.00- for construc on value, but the Revenue Ministry also modified the parameters used to calculate the value of construc on, raising the values another thirty percent.

As a result any person who owns a house with a construc on value of US $300,000.00 and a land value of US $200,000.00 has to pay 0.25% yearly, which represents US $1,250.00, to cover this tax. If the construc on value is below US$234,000.00 only normal property tax is imposed on the home. Homeowners with a value beyond US $2,000,000.00 will have to pay 0.40% yearly. The parameters to evaluate homes can be found on the website from the Direccion General de Tributacion -the Costa Rican equivalent to the U.S. IRS or Canada Revenue Agency. h p://dgt.hacienda.go.cr/valoraciones/ New Tax on Corpora ons Last year a new Tax on Corpora ons came into effect. Star ng April 2012 all registered corpora ons were obligated to pay a tax equivalent to 50% of a base salary on ac ve corpora ons, or 25% if the corpora on is inac ve. Propor onally for the remaining eight months of the year the tax amount was around US $268 for ac ve en es and US $134 for inac ve ones. Most corpora ons created by expats are used as holding companies to protect houses, lots, farms, vehicles and other type of proper es. Before this law the cost of maintaining a holding corpora on was rela vely low, but this new tax increased it substan ally.

This year the tax is due in January and the amount to be paid is close to US $400 or US $200 depending on the company status, ac ve or inac ve. Star ng February 1st interest charges apply over the tax. The consequences of non-payment are different; but to name a few: a) The Na onal Registry will not issue cer fica ons showing the legal representa on of the company, normally known as “personerias”, b) Registered Assets such as proper es or cars can’t be sold or acquired without paying the tax first and c) A er three payment periods without paying the tax the Na onal Registry will proceed to dissolve the company.

To put the cherry on the pie, any person wan ng to create

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a new corpora on will no longer pay about US $80 in Registra on costs, but close to $500 because the Na onal Registry will now charge the full Tax on Corpora ons plus extra charges to authorize the legal books.

Property Transfers The transfer taxes and stamps –without fees- over a property represent around 2.6% of the fiscal value or the selling price whichever is higher. This means a property with a value of US $100.000 will pay about US $2,600.00 to be transferred into a different person’s name or company. In order to save money it became a usual prac ce to create a holding corpora on in which to register proper es for sale. When a buyer was found the Seller would transfer the stock of the company into the Buyer’s name instead of transferring the property tle in order to avoid paying the transfer taxes. This was normal with condominium projects.

The same law men oned above, number 9069, amended the transfer tax law to impose the tax on “all forms of transferred proper es”, so now even stock transfers made to transmit the control of a property from a seller to a buyer are subject to this tax. However it is not very clear how this can be regulated because those transac ons happen based on private contracts, but it is important to know this change on the law. One way the government is controlling the transfer of proper es through companies is by requiring the presenta on of legal documents to banks to show the source of deposits of US $10,000 or more.

New Traffic Law In 1994 a Traffic Law took effect imposing “severe fines.”

Over the years such fines became very cheap to pay because they were imposed based on economic values calculated at the me of crea on of the law. Because it was obviously necessary to introduce an amendment, and due to the pressure from the media, lawmakers passed a new Traffic Law in March, 2010 imposing fines completely out of propor on, with amounts of over US $600 in some cases.

Many affected ci zens challenged this law in Cons tu onal Court where the Jus ces started voiding most of the fines because they were unreasonable in rela on to the average income in this country. Our lawmakers then had to start over with more reasonable amounts. Instead of dedica ng the me and resources necessary to come up with a be er amendment, what they did was lower the amounts of the fines a li le by publishing a new law in October 2012. In my personal opinion, changing fines from US $423 to US $380 or from US $282 to US $188 s ll does not match with the payment capacity of the regular ci zen. Therefore the current fines are s ll unreasonable and out of propor on.

It is evident that government tends to raise taxes and tariffs as much as possible in order to increase income regardless of the impact this has on the popula on. Things could have been done using more reasonable parameters, considering the mes we are living in.

ALLAN GARRO NAVARRO A orney at Law allan@garrolaw.com www.garrolaw.com

21

Dollars & $ense

by Alan Weeks

Lies, Damn Lies & Sta s cs Early in my career, a wise accoun ng manager warned me that “figures can lie & liars can figure.”

With this in mind, we should be wary of claims made based on seasonally adjusted data.

We also need to be very wary of op mis c economic and/or market forecasts which have been based on a con nua on of unsustainable “Ponzi” financing.

Perhaps the following excerpts from a document sent in late December to American CEOs by the pres gious Boston Consul ng Group (BCG) will help to clarify the current financial situa on.

“ENDING THE ERA OF PONZI FINANCE” (2) “The biggest Ponzi scheme is s ll ongoing in the developed economies.”

“The West is not going to find its way to the right economic path with a li le tweaking at the edges,” the CEO of the BCG Group said. “What’s needed is a wholesale overhaul of the economic system to tackle record levels of public and private debt.”

“The cri cal star ng point is to accept the fact that many of today’s debts will never be repaid and to embrace debt restructuring and defaults. All stakeholders will have to contribute to the necessary cleanup. Creditors and holders of financial assets will have to accept losses.

Taxpayers, especially the wealthy, will have to accept higher taxes. Otherwise, we risk experiencing a lost decade or more.”

As further collabora on, a very recent ar cle in THE ECONOMIST magazine, called THE DEBT CRISIS (3), reported on a private research note from MORGAN STANLEY (MS). Here are some excerpts: “It was argued that most developed governments are effec vely insolvent. MS drew up balance sheets for each government: its total assets (including future tax revenues), and its liabili es (including market debt), and the net present value of future “primary” expenditures such as pensions and health care. It was noted that tax revenues could be pushed up in some countries and future spending on health and pensions could be brought down. However, Morgan Stanley reckoned that shor alls are so large (between 800% and 1,000% of GDP in the US and the UK) that the situa on is “hopeless.”

With this ominous background informa on let us proceed to review the following:

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2012’s BIGGEST LIES; 2013’s BIGGEST RISK (4) Key European Union (EU) officials recently declared the EU crisis is over and this seems to have reinforced the current market complacency. However, their claims are at odds with the many grim facts being reported: 1. (a) “Large parts of the Eurozone periphery have suffered economic collapse as bad as anything since the destruc on of the 2nd World War”. (b) Italy is in the throes of its 4th recession since 2001. And, with na onal elec ons scheduled in late February, it is possible that a Euroskep c coali on government could be elected 2.

Eurozone unemployment has already reached all- me highs, with youth unemployment over 50% in some countries. This could well lead to greater civil unrest and instability.

3.

Both Greek and Spanish banks are s ll significantly undercapitalized and plans to help them seem to be based on dubious assump ons that the loans made will be repaid.

4.

The real estate bubbles that burst in Ireland and Spain created financial havoc. It is now reported that the real estate bubble in the Netherlands is in the process of collapsing, and France’s real estate bubble is standing on shaky ground. A good reason to be very wary is that, as one pundit put it: “the French government seems to believe it can suspend economic reality by government decree.” Other governments seem to suffer from the same illusion.

5.

Eurozone factory output con nues to fall.

6. (a) European retail sales have collapsed, with a near record drop in Italy and the 9th consecu ve drop in French retail sales. (b) The steep economic downturn is ba ering vehicle sales in Europe and car makers have incurred unsustainable losses. As one CEO (5) said: “a day of reckoning looms for EU auto makers.” Thus, in spite of poli cal pressure to resist, significant plant closings and job cuts are inevitable The plunge in retail and auto sales has dire implica ons across the EU because consumer spending accounts for over 60% of the EU economy. The grim reality is that as more people become unemployed, tax receipts will keep shrinking and the need for benefits will keep increasing, worsening the na onal debts.

Furthermore, with the Eurozone being so interconnected, it was not surprising to read that Germany, the EU powerhouse, is expected to report its economy also contracted in the 4th quarter of 2012. Thus, all signs point to a full-blown recession that is worsening every month in Europe.

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Why then, are the markets ignoring all these signs?

There certainly appears to be a widespread belief that the Central Bank “Wizards” can magically fix it all.

How? CHINA’S EXPORTS SURGE Should you believe China’s latest success story?

Certainly Goldman Sachs (GS), UBS, and others are skep cal and it renewed concerns that China’s sta s cs can be unreliable. There are several reasons to be skep cal: (a) The 14.1% increase in exports from the previous year did not match goods movements through ports, imports from trading partners, nor reported overseas orders. (b) Given that Europe has been China’s largest export market, and the fact that European demand has been declining rapidly, where did the large increase in exports go? (c) Lack of overseas demand is reported to be a drag on U.S. manufacturing.

One explana on for the big increase is that there was government pressure to report exports before yearend to reach the official 2012 target of 10% growth.

The GS Beijing-based economists stated: “It is possible that local governments may have tried to boost exports data by making ‘round trips’ in special trade zones”. And apparently, for a fee of 1,000 Yuan ($161) per vehicle per day, a freight company will drive trucks into warehouses in bonded zones, where cargo must clear customs, so that business can obtain a refund of value-added tax on the “export” of their products. However, does anyone inspect the truck vans leaving the bonded zones to see whether the goods were actually unloaded?

MOVE OVER MICHIGAN, CHINA IS THE WORLD’S NEXT RUST BELT (6) This recent ar cle in FORBES described many problems that China is now experiencing. Just two years a er it overtook the U.S. to become the world’s largest manufacturer, the country faces the prospect of a decade of de-industrializa on.

Industrial sites are being converted back to farmland in one province and a once booming factory center is on the verge of bankruptcy as companies close, leaving the local government severely cash-strapped.

Many factors are contribu ng to this, including: 1. (a) Labor issues are eroding Chinese manufacturing compe veness. (b) Labor issues have also spurred the decision to automate manufacturing and assembly.

March - April 2013

2.

3. (a) (b) (c) 4.

Of course, robo zed produc on in China is no cheaper than in the U.S. In fact, when transporta on and inventory costs plus delivery me delays are also considered, the BCG Group predicted that around 2015 it should be more economical to manufacture in the U.S. Because of ci zen protests about pollu on in the water, smog and soot in the air, metals in the soil, etc., Chinese authori es have had to start enforcing environmental rules, which is cu ng into both manufacturing and power genera on.

Foreign investors are beginning to pull back from manufacturing in China ci ng the rampant the of intellectual property.

Foreign direct investment into China dropped to the lowest level since 2009.

Wealthy Chinese are s ll reported to be taking “suitcases” of money out of the country as the “get rich and get out” trend con nues.

“Default Alarm Rings as Trust Loans Jump Sevenfold” (7) “Short-term financing instruments, such as Trust Loans, have been rising very quickly”. The underlying assets in this shadow banking system can be quite dodgy. In addi on, some of the wealth-management products sold by Chinese banks are “fundamentally a Ponzi scheme.”

If progress on rebalancing and structural reform away from excessive dependence on exports and infrastructure spending, to domes c consump on, remains slow, the probability of much lower growth in China will rise. Because the party leaders have been so enriched by the past boom, progress to rebalance and reform is expected to proceed slowly.

Under this scenario, the Societe Generale (SocGen) (8) economists perceive there is a “tail risk” that China will experience several quarters of just 3% growth, with slow improvements for years therea er. This would translate into a significant global recession with the Asian region being the most seriously affected. And it does not take a great stretch of the imagina on to paint an even bleaker scenario of outright currency wars and trade protec onism.

AN UPDATE ON THE U.S. As men oned earlier, the lack of overseas demand is reported to be a drag on U.S. manufacturing. In fact, manufacturing in the New York region contracted this January for the 6th straight month and the index for the Philly region plunged from the prior month.

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U.S. HOUSING RECOVERY ACCELERATED AT YEAREND (9) The CEO of CoreLogic stated that “for the first me in almost 6 years, most U.S. markets experienced sustained increases in home prices in 2012. We s ll have a long way to return to the 2005-2006 levels but all signals currently point to a progressive stabiliza on of the housing market…..” See the addendum for some actual housing data.

THE SORRY STATE OF THE CONSUMER (10) The author of this ar cle contends that the improved sen ment in the housing market is a percep on that is not supported by actual data, demographics, nor a er-tax income trends, but rather by ultra-low interest mortgage rates. He also contends that many homeowners have already refinanced, so that the marginal benefit to the economy has already occurred.

Because consumer spending in the U.S. accounts for 70% of its total economic ac vity, this sector will be examined more closely.

U.S. economic ac vity remains very sluggish. This point is underscored by the fact that U.S. holiday retail sales have registered the weakest growth since 2008.

Digging into the December retail sales numbers showed weak sales of clothing, auto parts, building materials, and a big drop in home improvement sales. A further indicator is that consumer sen ment again fell below expecta ons.

A new ar cle in Reuters (11) reported that “nearly a third of the na on’s working families earn salaries so low that they are struggling to pay for their necessi es.” And “the overall number of low-income working families is increasing.”

And, we should remember there were earlier reports that student loans were also being widely used to spend on essen als as well as on very discre onary consumer items. This is unsustainable!

Moreover, in another ar cle by Mish (12), it was reported that “more than one in four workers are dipping into re rement funds to pay their mortgages, credit card debt, and other bills.” According to another survey, “42% of workers cashed out of their 401-K plans rather than rolling them over when they changed jobs.”

Mish also stated he suspects that many low-income households are desperately clinging to their “underwater homes.” As he said, the mentality that “my house is the only thing I have” is tough to fight. “However, the reality is that many homes are worth less than zero because of ‘underwater’ situa ons.”

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“Currently, there are s ll more than 25% of homeowners ‘underwater’ which limits their ability to move, refinance, or sell their homes.” (15) Another writer stated that long-term U.S. unemployment is at the highest level since World War II. He also contended that long term unemployment is “threatening to create a permanent underclass of workers who will find it almost impossible to obtain jobs in the future.”

Several writers made the point that “Obamacare has the poten al to create more unemployment and part me workers.”

Dr. Marc Faber (13) also believes something is not quite right with the U.S. economy, which is evident from the recent performance of Wal-Mart, Tiffany, Kohl’s, etc. However, what disturbs him about most market assets is that they had outsized gains since 2009. In his opinion, investors’ expecta ons about future returns on their assets are far too op mis c.

Dr. Faber also states that while many may argue that the U.S. is not in recession and headline unemployment numbers are improving, he believes the U.S. is not immune to the global economic slump.

Furthermore, Dr. Faber pointed out that “in an economy driven by consump on, the weakest holiday retail sales growth since 2008 is an ominous sign.” And beyond the U.S. borders, the Eurozone is already in recession with economic ac vity expected to worsen this year.

In addi on, muted economic growth is expected for both China and India, the recent drivers of the global economy.

Finally, to help him determine the real state of the U.S. economy, he looks at indicators such as the Federal Reserve reports on the velocity of money and the U6 unemployment rate. The fact is that money velocity con nues to slump and is now at its lowest level in 50 years. At the same me the U6 unemployment rate remains uncomfortably high at 14.4%. These cri cal factors make him believe that all is not well with the U.S. economy and the markets will react sooner or later to the real gloom.

For this reason, Dr. Faber’s own priority has shi ed to the preserva on of outsized gains and warns that investors also need to focus on capital preserva on.

Meanwhile, the SocGen

(8)

Group expects the sub-par 24

Chinese growth will significantly affect various assets.

They forecast the U.S. dollar will appreciate by 10% rela ve to other major currencies. They also expect about a 50% drop in the price of base metals as well as a drop in oil prices. In addi on, they expect European equi es might fall 20%.

Gary Shilling (14) pointed out that “investors are fixated on easy money policy”, and “a zeal for yield that almost completely ignores financial risks.” Shilling calls this a “Grand Disconnect” and believes it will be riskier in 2013. He also just stated that “the latest rush into stocks will end miserably.”

It is also his view that the global investment environment will con nue to be dominated by deleveraging, which should con nue for at least another five years, along with low growth.

Gary Shilling provided a list of investment themes, shown below, but cau ons that his themes could change drama cally as the year progresses.

Treasury bonds are s ll a rac ve.

High-quality income-producing securi es of companies that pay substan al dividends. (But, be wary of a capital loss in equi es expected this year.)

March - April 2013

Consumer staples and foods that are necessi es will do well.

The U.S. dollar should appreciate.

Selected health care providers and medical buildings are a rac ve long-term because of America’s aging popula on.

North American energy producers (exrenewables) look good as America strives to become more energy independent.

Rental apartments will benefit as singles and couples no longer see homes as a good investment.

Produc vity enhancers like robo cs and tech companies remain a rac ve as businesses try to cut costs.

In conclusion, there seems to be no posi ve upside trigger in sight to create any robust economic ac vity.

Thus, we agree with Dr. Faber and others that there are good reasons to remain very cau ous, as well as with his view that this is a year of capital preserva on.

Please note that the opinions expressed in this ar cle are solely those of the writer. For more informa on and reference details, please contact Alan Weeks by e-mail: imccr2002@yahoo.com

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Exchange rate of the Costa Rican ¢ to the US Dollar August September October November December January

503.22 503.31 503.24 503.17 514.32 507.00

Basic Interest Rate August September October November December January

10.50 % 10.50 % 10.25 % 9.50 % 9.20 % 8.30 %

Exchange rate of other currencies to the US Dollar

'&+%#- 3511-8 31'%+#-+343 +/ 034# +%# 3+/%'

Ostomy -'#3' %0/4#%4 53 #4

052 3402' /5.$'2 02 %0/4#%4 052 #/#)'2 Wound Care &+2'%4-8 #4 02 (02 120('33+0/#- 3'26+%'3 %#-- 53 #4 52 '.#+- #&&2'33 +3 +/(0 #4-#/4+%#.'&+%#- %0. #/& 052 3402' +3 Incontinence %0/6'/+'/4-8 -0%#4'& /'#2 4*' 031+4#- # #49-+%# "' #-30 0:'2 *0.'

Dermacosmetics 6+3+4#4+0/ 3'26+%+'3 ( 805 #2' %0/%'2/'& #$054 35/$52/ 31043 12'.#452' #)+/) #/& '6'/ 3,+/ %#/%'2 +/ 034# +%# 1204'%4 80523'-( 7+4* 777 +(% 31#+/ %0. 120&5%403 *'-+0%#2' +3 4*' .034 #&6#/%'& /#452#- 1*040 +..5/01204'%4+0/ 35/3%2''/ +/ 4*' 702-& #/& 7#3 &'6'-01'& #4 #26#2& '&+%#- !%*00- ! #4 052 3402' 40 #-- #/& 4*'+2 (#.+-8 .'.$'23 52%*#3' #/& 2'%'+6' # &+3%05/4 0/ 8052 152%*#3'

AtlĂĄntica Medical Supply Company

Giro Canadian Dollar Euro Swiss Franc Nicaraguan Cordoba Danish Krone Norwegian Kroner Swedish Krona Honduran Lempira Bri sh Pound Argen ne Peso Columbian Peso Mexican Peso Dominican Peso Brazilian Real Guatemalan Quetzal Korean Won Japanese Yen Venezuelan BolĂ­var Hong Kong Dollar Taiwan Dollar Bolivian Peso Chilean Peso Russian Rouble Peruvian Sol Polish Zloty Australian Dollar Chinese Yuan

1.54134 1.00220 1.35630 0.91070 24.56250 5.50100 5.48540 6.36540 19.93000 1.58220 4.38130 1,774.08000 12.70500 40.63500 1.98920 7.85050 1,088.59000 91.04000 4.29470 7.75640 29.55000 6.91000 471.50000 30.06880 2.56250 3.09240 1.04180 6.21900

Libor Rate 1 month 3 month 6 month 12 month Prime Rate

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0.19970 % 0.29800 % 0.46840 % 0.78100 % 3.25 %

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Holidays of Costa Rica Thurs/Fri, March 28th, 29th Easter - Na onal holiday ARCR Closed Mar 23rd - 31st

Thursday, April 11th Ba le of Rivas - Na onal holiday ARCR Closed Wednesday, May 1st Labor Day - Na onal holiday ARCR Closed A Touch of Wisdom “He that cannot endure the bad will not live to see the good.”

- Jewish proverb “If passion drives, let reason hold the reins.”

- Ben Franklin (1706-1790) “One day at a me.”

- unknown A Bit of Fun...

Why don’t men often show their true feelings?

- Because they don’t have any.

What’s the difference between a man and E.T.?

- E.T. phoned home.

A successful man is one who makes more money than his wife can spend.

Marriage is a three ring circus: an engagement ring, a wedding ring, and suffering.

Marriage is the process of finding out what kind of man your wife would have preferred.

How Dogs and Women are alike.....

Neither believe that silence is golden.

Neither can balance a checkbook.

Both put too much value on kissing.

March - April 2013

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