Economics ministry clamps
controls on sales of rice


The economics ministry is stepping in to reduce the price of rice, and officials say the regulation of the market is just the beginning.

Wednesday Marco Vargas Díaz, the economics minister, established a lower price for high-quality rice. This is rice with from 9 to 7 percent broken grains.

The price, which will be established formally in a decree when published will be 1,395 colons ($2.54) for a two-kilo sack of 91 percent whole grain rice. That is a reduction of about 12 percent from the current market price.

Higher quality rice with 93 percent unbroken grains will see a 519 colon (95 cent) reduction per each two-kilo sack to 1,914 colons ($3.49). This is about a 37 percent reduction in the market price.

A study by the Ministerio de Economía, Industria y Comercio showed that producers were not marketing enough of the lower-quality 80 percent whole grain rice, said Vargas. Until Wednesday that was the only quality of rice that was subject to price control.

Under the law the ministry has the authority to adjust all prices that are in the basic food basket of the average household. In the last year, the ministry calculated that about 40 percent of the rice consumed in the country was purchased at free-market prices, the ministry said.

Rice, of course, is the staple of Latin American cooking, and also is the main ingredient in the gallo pinto national breakfast dish.

Lottery winner wins one


The Sala IV constitutional court played Santa Wednesday to an elderly lottery player. The man Rodrigo Zavaleta Umaña, 85, had five pieces of the valuable Christmas lottery known as the Gordo. But he did not know it.

He failed to present the pieces to the lottery operator, the Junta de Protección Social, until the 60 days to do so expired. The Junta denied the claim.

But the court for very technical and obscure reasons told the junta to give the man his 68 million colons, about $124,000.

Panamá has changed
and more is coming

Dear A.M. Costa Rica:

Much has been written lately on the Panamá vs. Costa Rica question. Prices are cheaper in Panamá. It doesn't take a genius to figure this out. Many retirees' budgets are going to be squeezed to the limit due to current economic dynamics. Since the Panamanian Baloba = the U.S. Dollar, prices in Panamá will rise commensurately with the continued dollar dive. If you doubt me, watch the Congress bow to yet another print-fest on this massive bailout bill. Currency devaluation equals inflation and inflation kills buying power. No mystery here.
 
On to business then. Panama recently changed ALL of its immigration criteria approximately a month ago. Call any law office or residency outfit that you wish. The average increase in financial requirements is about 40 percent! If you were thinking of obtaining a reforestation visa, forget about it. You'll have to buy 10-20 hectares of reforestation project land in order to qualify now. Last I checked this type of project land was running $20K U. S. dollars per hectare.
 
Similar increases are seen with self solvency visas, pensionado visas, etc., etc. We are talking serious money here, and I was frankly shocked to see the aggressive nature of these moves with Panama Migración. So those who are seeking to lay down some roots in Panamá better get their facts straight unless planning on utilizing the border hopping tourist visa and running back and forth every 90 days.
 
We love to talk politics too! Well, as I understand it, Panamá Presidential elections are to take place in May 2009. One of the candidates is a former Noriega accomplice, and she is rumored to have a real problem with expatriates snapping up precious land resources there and may take matters into her own hands (if elected) to help put matters straight. What this means is the appeal of Panamá for expats has had the lustre buffed right off of it.
 
So, what we have here is a tightening of Panama Immigration law, a squeeze on expat budgets and the potential for a regime hostile to expats to take the seat of power in Panama.

To many readers who may live in Panama or are considering the same this may sound like a far-fetched post, but I would suggest you do your own research before jumping in. The expat environment in Panama HAS changed drastically with these new qualification/income/asset rules. Things could get even dicier after the next election. Keep in mind that although Costa Rica may have its problems, it has a solid track record of a peaceable government. Expats will now find that the price of admission into Costa Rica is more palatable than Panamá.
 
Finally, consider that the economy in Costa Rica is heavily dependent on U.S. tourist dollars. The U.S. consumer/traveler is reportedly nearly tapped out. Will the Costa Rican government suddenly have no money available for public services ie: police? healthcare? People are under pressure everywhere. There is no perfect place.

Also, remember that in the event that the U.S. dollar crashes as the printing presses up north run at warp speed, the Panamá "advantage" will be Costa Rica!