Residente 2005-01

2El Residente

This magazine has been published every two months for 8

years as the official communications media of the Association

of Residents of Costa Rica. Our organization provides

service to thousands of foreigners who have chosen Costa

Rica to reside for short periods or for permanent residence.

Over the last 20 years the Association of Residents of Costa

Rica 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 application, immigration, business and financial

management, real estate purchases and rentals, property

management, insurance, pet importation and much more.

If you wish to place an ad in El Residente, please contact

the ARCR main office.

ARCRARCR Editorial Note:

This year it’s official, I have finally become a Tico. Yes, I am

now a Costa Rican citizen, so I thought I would take a nation-

alistic stance, and this years covers will deal with the national

symbols of the Costa Rica.

Of particular importance in this issue, for those with INS Medi-

cal, the time for renewal is here (although we are still waiting

for the prices from INS as usual) and in this edition is a report

from David regarding the newest changes in this policy. Please

check it out.

And for all of you, I again wish you a happy, healthy, and pros-

perous New Year, and hope to hear from you all.

- Ryan Piercy

Have you paid your CCSS this month?

3January-February, 2005

Presidents ReportBob MillerHere I am again after two months. I am reminded of the two wise sayings from the sages.

1. “Time flies when you are having fun”2. “May you live in exciting times” which comes

from the Chinese, for when you are knee deep…

After you read this you can tell me.

To begin with our good works; we had a request from Acopane, a company founded in 1969 by a group of compassionate people. As the Costa Rican Government does help to provide for the physically and mentally challenged children, but doesn’t have sufficient resources, they cannot assist adults in the same condition. This organization was founded to teach and train these individuals so that they could cope and support themselves. It is a tough job. We received a request from them to help rebuild the roof structure, which had started to disintegrate. Earl Tomlinson, Terry Renfer, and Atilio Gilberti went to inspect the structure. They confirmed that the need was valid, and as a result, we are supplying Acopane with laminated roofing and the paint to restore the facility. We will also provide a portable kiosk to display the products produced there. (More to follow in the next issue)

The continuing saga; an associate and a friend had occasion to celebrate the birth of their daughter.

Elsa, my wife, and I attended. The food, music et al were superb. I lived it up and danced more than I had in years. With the perspiration pouring down me I finally sat down to cool off. This was an outdoor event at night. After finishing a martooni or dos we went home from a perfect night. The next day I was fine, however in the evening I started to acquire a slight cough. “Ah well,, a cold, I’ll take it easy for a day or two”. As that didn’t work, and I started to feel like my lungs were being torn from my body, I called on my doctor friend. After he took me to Clinica Biblica for X-rays he gave me the good news… pneumonia. He prescribed a biotech product, which I purchased there at the pharmacy. There were 14 tablets, one for morning and one for the night. As you can see by the writing of this report, the product worked, and seven days later I could breath again and the pain was gone. One thing I found out about pneumonia is the pain is so bad you probably don’t mind dying, so I think this is a good product to know about.

December 4th was the Christmas Dinner Dance with the Canadian Club. This gala event was held at the posh Cariari Country Club. I even wore a jacket and tie. The food, music and hors d’oeuvres were fantastically appetizing and plentiful. People in attendance requested us to reserve them tickets for next year’s event even. This time I was a moderate dancer.

Then Dec 15th was the ARCR staff party at the Tennis Club. Again another whoop-de-doo affair. I can understand that at closing time everyone was dancing (including me) and they had to chase us

COVER PHOTO-

The Costa Rican National Flag:The Costa Rican flag, the oldest of the national symbols, was constituted in September 1848 when Costa Rica achieved the status of Republic. The Fist Lady, Pacífica Fernández Oreamuno, designed it. It is based on the colours of the French flag, and the ideals of the revolution and freedom, equality, and brotherhood. The flag consists of five horizontal stripes: the first and the fifth are blue, symbolizing the blue sky that covers Costa Rica like a protective blanket; the second and the fourth are white, standing for the peace that characterizes the country as well as the purity of its ideals; and in the middle a red stripe, double the width of each of the other four stripes, represents the energy, the courage and the generosity with which the Costa Ricans stand up for their principles and ideals.

Continued on page 4...

4El Residente

out. What a surprise that they even let me in in the first place.

More good news; I received a notice from Racsa that my credit card refused to pay my monthly charge. According to Visa, who I called long distance, “It worked!” but I have learned that you can’t argue over the phone with someone at a government agency, so I took a taxi downtown. Now neither I nor the other 100 people saw notices that they would be closed on December 23rd, but they were. I headed back to the office. No taxi in sight, so I hopped on a Sabana bus at the corner, crowded like you wouldn’t believe. I am a smart one, with Velcro on my pockets, but somehow the pickpocket bumped and shoved past me, and got off. I instinctively had reached to protect my wallet, but too late! My wallet, cash, credit cards got off the bus with him. As I tried to go after him, he turned, waved, and shouted “Feliz Navidad.” I know he was thinking of himself.

Within the hour I was on the phone to the credit card companies to report the theft. Visa advised that he had already charged $354 (in less than an hour). I was lucky he didn’t have time to work the Master Card. A notice to those expecting a Christmas present from me, there is always next year.

The final joy to end my year was a letter from a reader regarding my last President’s report. If you haven’t read it, please do, then read this.

‘To Bob Miller. I have just finished reading the El Residente magazine for Nov/Dec and noticed your comments about democracy. Apparently you are a Democrat, but irregardless, as President of the Association, I don’t think you should express your political views in the magazine. Member’

Well, that report was written before the presidential election. In it I wrote, “I believe in democracy”. And wished the winner well and good wishes. (I did not allude to a Republican nor Democrat) and my believing in democracy does not mean I am a Democrat as the writer stated. Sir, Republicans also believe in democracy (and I am not one of them either). The writer also stated that as President I should not indicate any preference in the US Elections. He is right. And I did not. I think you perhaps need to enroll in an English class, and if you can show in my report where I endorsed either Kerry or Bush, then I will enroll in the class along with you.

Happy New Year to you all.


El Residente UpdateJay Brodell- AM Costa Rica

I won’t be home for Christmas... Two former presidents spent the holidays in prison, and one decided he would not be home for Christmas. They are suspects in a widening corruption scandal involving contracts with foreign firms.

Rafael Ángel Calderón Fournier, one of the ex-presidents (1990-1994), is the son of the founder of the historic social welfare guarantees, Rafael Ángel Calderón Guardia (1940-1944).

The second imprisoned ex-president is Miguel Ángel Rodríguez Echeverría (1998-2002), who had to quit after a brief stint as general secretary of the Organization of American States because of the growing scandal.

A third ex-president, José María Figueres Olsen (1994-1998), remains in Europe and sent the legislative Assembly a 15-page letter explaining why he would not return and answer questions about allegations of corruption. He is the son of José Figueres Ferrer, the man who led the successful 1948 revolution against the elder Calderón.

The allegations are complex but the majority involves Alcatel, the French telecommunications firm, which has been a successful bidder on multi-million dollar cell telephone contracts. Rodríguez also is a key figure in a scandal involving some $9 million in kickbacks from the purchase of hospital equipment using a loan approved by the government of Finland.

Meanwhile, the national prosecutor has opened a case on the current president, Abel Pacheco (2002-2006), and his associates over irregularities in campaign financing.

Solis removed from position

The Legislative Assembly fired Alex Solís Fallas from his job as controller general Dec. 13 and then ordered that the investigative file be shared with the nation’s prosecutor, the lawyer’s association and the association of notaries.

The vote, 39 to 12, came after discussions and parliamentary maneuvering by Solís supporters.

The final motion said that Solís lost his job because he lacked fitness to discharge his duties.

For Solís, it was the end of a six-month ordeal. He was named to the position in June. The controller general heads the financial watchdog agency that reports to the legislature. The agency reviews every major government contract.

Almost immediately Humberto Arce, a legislator, began questioning actions Solís had taken as a private citizen. The issue centered on signatures Solís had validated in his capacity as notary. He admitted on national television that he signed some of the signatures himself and then applied his notary’s validation.

El Gordo

Costa Ricans got up to $12 million more for Christmas presents as a result of the fat annual lottery decided Dec. 19.

The so-called Gordo awarded five top prizes of some 350 million colons each or about $770,000. Each ticket has 40 pieces called a fracción. Whole tickets sold quickly for 20,000 colons in the week leading up to the drawing, and purchasers had the option of buying parts of several tickets to hedge their bets.

The winning number was series 249 and ticket 62. Five identical winning tickets had been sold in pieces, so there was no overall big winner. At least 20 pieces had not been redeemed by Christmas.

The agency running the lottery, the Junta de Protección Social de San José provides social services to the country.

Goodbye to the telephone blues

Following a request made by the Defensoria de los Habitantes, the Instituto Costarricense de Electricidad will be installing the 116 international collect call service to public telephones for prisoners in Costa Rican jails. The service will be available for inmates from the beginning of January.

The Defensoria said that this is the only way that inmates would be able to communicate with family members. This is especially true for foreign inmates who do not have family in Costa Rica.

“It is important that ICE, re-establishes this service as the telephone cards available don’t allow the prisoner to call outside of this country,” said José Manuel Enchandi, the defensor de los habitantes. He also said that it should be remembered that although a person may be in prison he or she still has fundamental human rights.

6El Residente

Wild Side XXIIIA Cat by any other name...Ryan Piercy

Known as cougar by the French, leon by the Spanish Americans, and panther by the Anglo-American hunters. In Costa Rica Felis Concolor (cat of one colour) is known by Puma as its common name. No matter how you refer to a Mountain Lion (a name given chiefly for its colouring) this majestic beast actually resembles the leopard of the old world in regard to its size and habits.

The puma is one of the largest of the cats, weighing up to 225 pounds, and up to 5 feet in length (plus three more feet if you include the tail!). Though the cubs are born with a speckled coat and ringed tails, these markings disappear as they grow. The adults are yellow-brown, and pale underneath, with possible traces of black markings left on the head. Ears are rounded, and the head is proportionally smaller in comparison to other types of felines.

The puma has a very large geographical distribution, ranging from Canada to Tierra Del Fuego. In Costa Rica they were originally found throughout the country as they are highly adaptable to many types of habitats, but as with all countries, the advance of man has reduced their range greatly. They are currently

found in mainly unaltered forests, especially at the higher altitudes where they are undisturbed up to 8000 or 9000 feet above sea level.

Pumas are both solitary and territorial. The males often have huge territories, but don’t protect it in a very convincing manner. The females have smaller territories, which can slightly overlap part of a males. They are spectacular hunters, seeming to prefer small deer and game. They are extremely powerful, and can even jump upwards of 20 feet in a single bound! And can, of course, climb with great expertise.

The puma by nature is active night or day, but usually more at night near the presence of man, its greatest enemy (and only one apart from wolves.) Unfortunately farmers tend to hunt them, as they often kill far more than they can eat when they encounter easy prey such as sheep or calves. This, of course, has not helped their population, and they rank among the endangered species here as with many other countries, though in certain protected areas numbers have increased slightly.


8El Residente

Insurance in

Costa RicaDavid Garrett

Our purpose is to give the reader a better

understanding of insurance in Costa Rica. The

opinions and viewpoints expressed are those of

the writer, and do not necessarily represent the

official position of the National Insurance Insti-

tute (INS).

CHANGES TO THE “PLAN 16” MEDICAL

INSURANCE POLICY

Plan 16 is the Medical Insurance policy that’s been around for nearly 15 years, and which has been sold extensively in the foreign community of Costa Rica. ARCR has a Group Plan 16, as do the Canadian Club, American Legion, The Tico Times, and several other organizations that are familiar to us all.

The Plan 16 policy cycles with the calendar year. at the end of November, 2004, INS notified of some changes to the way the policy works, effective January 1, 2005. This article is focused toward people who already have this type of policy, and describes the main changes.

1. The rates have gone up! On average, they have increased 20%, which is not out of line with what inflation for the year 2004 will probably come up to. Converted to UD Dollars, it is a tiny increase indeed. 2. The Surgical Table (the list of prices for treatments which affiliated providers are not supposed to exceed) has been abolished. A lot of doctors were not honouring it anyway. Now, INS will pay claims based on the “usual and customary” prices for treatments. This means that it is now up to you, the insured, to negotiate a fair price with your caregiver. 3. The general deductible used to be 30%. Now, it has been reduced to 25%. But before you throw your hat in the air and shout hip-hooray, read on!

4. Surgeons’ fees were not subject to a deductible. Now, the general deductible applies in most cases. 5. The general deductible applies to medicines. This is not new. But now, if you buy a patent medicine for which there is available a generic equivalent, the deductible is 30%, not 25%. I think this new rule is going to cause a lot of trouble. I will certainly ask my doctor, when he is prescribing, whether there is a generic equivalent on the market. But if my doctor prescribes medicine X, that is what I am going to get, regardless of the availability of the El Cheap-O equivalent! 6. The insurance card can no longer be used for ambulatory medical services – in other words, you cannot use it unless you have to undergo treatment, which requires that you spend at least one night in hospital. Now, for ambulatory care you will have to go the route of paying for your treatments, then documenting and presenting a claim and waiting for INS to reimburse you. This is now highly inconvenient for everyone, but the change is understandable in view of the shenanigans by doctors and patients alike! 6. INS says they will process claims in 15 days. This remains to be seen! In the last few years they have taken 4-6 weeks to process medical claims, and now, as the use of the card has been curtailed and they are going to have many more claims to process, I feel it is unlikely that they will be able to reduce claim processing time to 2 weeks. 7. If you need to be hospitalized, or need special therapy, nuclear medicine, or special treatments, you should advise INS at least 5 days beforehand, and obtain from them a “preauthorization”. This allows INS to negotiate prices with the caregiver of your choice. It also allows you to use your insurance card to pay for these items. If you do not obtain the preauthorization, your insurance card will not be accepted and you will have to pay for the care, and then present a claim. 8. Replacement insurance cards will now cost ¢1,000 instead of the ¢300 they cost before. No mention is made whether the higher price will speed up the delivery of cards, which usually takes 3-4 weeks! 9. For claims in languages other than Spanish or English, the insured must provide a translation into Spanish.


LEARNING THE LANGUAGE- Christopher HowardPet Talk in Latin America

Many foreigners like to bring their pets with them when moving, or end up finding a pet while in country. The vocabulary listed here will help you if you ever have to go to a shop or veterinary clinic in a Spanish speaking country.

Veterinary veterinario Pet shop tienda de mascotas Cage jaula Dog food comida perruna Bird pájaro Cat food comida gatuna Parrot loro (lora) puppy cachorrito Hamster marmota litter camada Fish peces tail cola Fish bowl pecera foot pata Seeds semillas beak pico Leash correa wing ala Collar collar ID tag placa Fleas pulgas Flea collar collar antipulgas Muzzle bozal Rabies rabia Distemper moquillo Tick garrapata Mange sarna Neuter (male) castrar Deworm desparasitar Neuter (female) sacar los ovarios Shot inyección

Here is your Costa Rican expression or tiquismo for this week: “Perro que come huevos ni quemándole el hocico” literally “Once a dog eats eggs you can’t stop him even by burning his nose” or you can’t teach an old dog new tricks.

10El Residente

Hotel Advances into

the New Generation

The Hotel Herradura Golf Resort & Conference Center in San Jose is undergoing a complete renovation, including some very modern-day features. The hotel is making significant changes to the facilities as well. The rooms have been refurbished, and are now equipped with imported items from the USA such as drapes, beds, and linen. The rooms also feature 27-inch televisions, safes for laptops, ironing boards, clock radio/cd players, carpets, and other furnishings. The bathroom and room furniture are also handsomely topped in granite.

More importantly however may be the technological improvements made in the hotel, innovating in Costa Rica, and in an effort to provide excellent customer service to its guests. To begin with a new state of the art PBX telephone system has been installed, the intent to meet all guests needs and requirements. Also for the increasing number of computer savvy guests, high speed Internet has been installed, but not your average type available in the country.

The Herradura has invested a considerable amount of money, and installed a fast access Internet known as PLC technology (Power Line Connection), which allows guests and clients to connect their computers at any location throughout

the hotel. This top technology was acquired in the United States, and works by allowing Internet connection from any electrical outlet throughout the construction. If you think about this, there is almost nowhere indoors or out that you wouldn’t be able to sit with your laptop and send off a couple priority emails, or surf for the elusive answer to that question that has been nagging at you. Possibly only getting locked in a closet would impede your access.

This is one of a number of more advanced technology in Internet that has reached the country, following ICE’s push with ADSL which is providing higher speeds to more remote areas than before. PLC technology, if successful here, could be a method to breach the barrier in providing high-speed access to all corners of Costa Rica. At the Herradura speeds of up to 14 megabits per second are expected to be achieved, a far cry from the 28-56 kilobits per second provided by dialup service at Racsa. In fact even faster than most of us now connected by cable modem.



Of course the problem is possibly going to be the cost, though a study of this technology shows that the idea of providing high speed Internet over power lines won’t require as much restructuring as is necessary with high speed 2-way cable internet, or telephone lines having to be changed. It seems as though existing power lines worldwide are already capable of providing high speeds. This could mean a much lower investment, causing lower costs to the providers, and lower prices to the consumer. But Costa Rican residents, being there is a monopoly, may or may not benefit from these savings. Guests of the Herradura will be able to enjoy it much sooner than us at any rate.

Over all, in this first phase of renovations, the hotel has invested around US$ 2.5 million, no paltry sum in anybody’s mind. They are also going to top off the changes with an affiliation to a top North American Chain (name not yet released) to ensure better standards as well as worldwide marketing abilities. Beginning in April the hotel will begin renovations in the main lobby, casino, bar, and other public areas. Who knows what technological wonders will be in store for the clients in these areas!

12El Residente

In the Cocina

Gallo Pinto (beans and rice)

If you have ever been for breakfast in Costa Rica, you might have noticed that though bacon is often unavailable, Gallo Pinto is always on the menu. Foreigners have a tough time thinking of rice, or beans for breakfast. Especially when mixed together. However a Tico would find any breakfast without them a catastrophe. It is important to note that everyone eats Pinto differently, some with sauce, sometimes mixing the eggs right in, or just plain. Give it a try to see which you prefer.

Gallo Pinto1 lb (450 gr.) Black beans. Fresh are best but most likely you’ll find them dried.8-10 sprigs cilantro (coriander leaf) fresh or frozen, not dried!1 small or medium onion1/2 small red or yellow sweet pepper (optional)3 cups (700 ml) chicken broth or water2 cups (350 ml) white rice1/2 teaspoon (2.5 ml) salt1 Tablespoon (15 ml) vegetable oil1-3 Tablespoon oil to fry the Gallo Pinto

If beans are dried, cover with water and soak overnight, if they are fresh, just rinse them off. Drain the beans and add fresh water to an inch (2.5-cm) above the top of the beans, salt, and bring to a boil. Cover the pan and reduce heat to very low simmer until beans are soft (~3 hours). Chop cilantro, onion, and sweet pepper very fine.

Add 1 Tablespoon of oil to a large pan and sauté the dry rice for 2 minutes over medium high flame then add half of the chopped onion, sweet pepper and cilantro and sauté another 2 minutes. Add water or chicken broth, bring to a boil, cover and reduce heat to simmer until rice is tender (20-35 minutes). This is also the recipe for Tico rice used in other favorites like tamales.

Once the rice and beans are cooked you can refrigerate or freeze them.

Keep a significant amount of the “black water” with the beans (1/2-1 cup 120-240 ml). This is what gives the rice its color and some of its flavor. Sauté the rice, beans reserved chopped onion, sweet pepper and cilantro together in vegetable oil for a few minutes. Sprinkle with a little fresh chopped cilantro just before serving.

Some variations include small very hot red peppers instead of or in addition to the sweet. Some people add a tablespoon (or more) of salsa Lizano or Chilera to the beans while they’re cooking, or after serving salsas can be added to individual taste.


14El Residente

Why the Cows Have

Horns and Other Animal

Storiesby Carol Marujo

About the author: Dr. Marujo is a freelance writer and retired psychologist who reside in Costa Rica as a pensionada. She and her husband moved from the United States to a small farm in the mountains of the Central Pacific region. These are stories of her early experiences in the new country. More will follow in future issues of El Residente.

Strange bumping noises from above the ceiling woke me before dawn, an hour earlier than usual. I dressed around 5 a.m. and walked to the back of the house. Streaks of pink and orange in the sky signaled the start of the sunrise. Since I usually miss it by sleeping later, I grabbed a flashlight and began the walk down the hill for the best view. A wide path slopes downward away from the house for about 30 meters to the edge of a hill overlooking a valley and a breathtaking vista. Layers of distant mountaintops interspersed with small clouds held the promise of a sunrise worth being awake for.

Halfway down I saw a neighbor’s cow and calf blocking my way. They were feasting on our banana plants and other vegetation. I thought, At least this time it’s just a cow and her calf, not the small herd that got into my ayote (large squash) patch a month earlier.

The cattle around here are the grayish-white Brahma variety with long, floppy ears and humps

on their shoulders. Many of our neighbors have several head of them. As I approached, I saw sharp horns on this one. She looked at me with a menacing stare. I have seen children as young as eight in Costa Rica driving cattle from one pasture to another armed only with short sticks. I, however, lacked their confidence. Even though I had retrieved a machete from the house, I

still dared not get close enough to move them or walk around them.

We could prevent these cattle incursions by being more diligent about closing the gate that we drive through to park behind the house. Unlike the wrought-iron gates at our walkways in front, this one is very primitive and hard to maneuver. It consists of

five vertical wooden posts suspended and held together by five horizontal pieces of barbed wire. To close it one must raise it high enough to clear the ground, swing it around, and wrestle the end post into fasteners attached to the fence. The wire tends to get tangled, and there is always a risk of being lacerated by the barbs. One day we will install a better gate.

My husband Carl awoke around 6 a.m. After some coffee he took on the challenge of the cow. However, the sun was already up over the




mountains, and the pink and orange were gone from the sky. He was able to drive her away by yelling and brandishing a large stick. The fact that he is 6’ 5” gives him an advantage in such situations.

The neighbor’s dog also joined in. He is a friendly, long-legged, yellow hound dog with a narrow head. He is rambunctious and clumsy and loves to pull our laundry off the line and drag it along the ground. We call him Tonto, which is Spanish for fool. Tonto and our small, black dog, Pepper, love to race around, tumble, and play-bite each other like

littermates, even though he is many times her size. They both recently entered puberty. We promptly had her spayed. He still enjoys her company, and she thinks he is fun to be with. Tonto assisted my husband by barking at the cow and calf and trying to herd them the wrong way, back down the hill. Carl prevailed.

I asked a neighbor why farmers in Costa Rica do not remove the horns from their cattle. With my emerging knowledge of Spanish, I understood only a small part of his reply. He seemed to be saying that cutting off the horns is hard on the animals. Carl and I like to ask him questions about life in the country. He has lived here for almost seven decades and knows many things we want to know. However, we are not always sure of the accuracy of what he tells us, because we think he likes to make good-natured jokes at our expense. For example, we asked him about the possible identity of what sounds like an animal bumping around at night between the ceiling and roof of our house. He declared it was a big, blue rat. He warned us not to put our cat up there because it would kill the cat.

16El Residente

Another neighbor guessed that it was a zorro. We learned that zorro not only means fox, but can be a generic term for any mammal from a large rodent to a skunk or an opossum. We are hoping it’s an opossum.

Getting back to the cows, I asked our veterinarian my question about the horns. It turns out that horn removal is an ordeal for cattle involving pain, bleeding, and a risk of going into shock. Older animals are more adversely affected than younger ones. He gave me the printed insert from a package of Dr. Naylor’s Dehorning Paste, a caustic material to be spread on the site of future horns on very young calves. The insert cautions the farmer about the risk of pain and infection and states that the calf must be prevented from nursing while being treated.

What many farmers in Costa Rica do is wait until the animal is older and just cut off the ends of the horns. This procedure leaves a rounded and less dangerous tip. It saves the farmer trouble and expense and is much easier on the cow. Farming in Costa Rica may not be as efficient as it is in the United States, but I believe it is more humane. Now that I think of it, the horns on the cow that blocked my path were rounded, not sharp, but she did have a menacing stare.

The day that started at 5 a.m. was well

into evening when Tonto returned. The heavy chain attached to his collar did not diminish his enthusiasm. Two weeks earlier Tonto had

appeared dragging a lighter chain. Clearly his owner was trying to keep him from running off.

I grabbed the end of the chain and led Tonto in the direction of his home. The narrow, dirt road hugs the hillside as it winds through our village. I walked Tonto to where the path going to his farm leaves the road. That path is nothing more than a deeply furrowed gully, affording no secure footing, especially at night. Tonto completed the trip on his own.

The moon that night was but a sliver and provided little light for the walk home. At first I kept my eyes on the road to avoid tripping in the ruts and holes. Then suddenly the stars caught my eye. They amaze me every time I see them. The brilliant display of stars in the country is unlike any you can see near a city or a town. Even the Milky Way is visible. Later, I asked a neighbor who has lived here all her life whether the stars seem less dazzling over time. She said they still amaze her too.

When I reached home, Pepper welcomed me with her usual, uncomplicated joy. Then I noticed a cane toad on the veranda. These are large, brown toads with poisonous skin and no natural enemies. They can spray hallucinogenic venom from glands near their eyes. Pepper and I kept a respectful distance. I just wanted to go inside and relax for the evening. And besides, it was time for the big, blue rat to start bumping around in the ceiling.


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18El Residente

The Chinese New Year has a great history. In other traditions, by this time in the year, most resolutions - made on December 31 - have been subtly forgotten and placed in a cupboard marked “maybe next year.” However, all hope is not lost, as there’s a second chance to start afresh with the celebration of Chinese New Year on February 9th.

The Chinese Lunar Calendar names each of the twelve years after an animal. Legend has it that the Lord Buddha summoned all the animals to come to him before he departed from earth. Only twelve came to bid him farewell and as a reward he named a year after each one in the order they arrived. The Chinese believe the animal ruling the year in which a person is born has a profound influence on personality, saying: “This is the animal that hides in your heart.” The New Year is known as the Year of the Rooster.

The Chinese New Year is very similar to the Western one, swathed in traditions and rituals.

The origin of the Chinese New Year is itself centuries old - in fact, too old to actually be traced. It is popularly recognized as the Spring Festival and celebrations last 15 days.

Preparations tend to begin a month from the date of the Chinese New Year (similar to a Western Christmas), when people start buying presents, decoration materials, food and clothing. A huge clean-up gets underway days before the New Year, when Chinese houses are cleaned from top to bottom, to sweep away any traces of bad luck, and doors and windowpanes are given a new coat of paint, usually red. The doors and windows are then decorated with paper cuts and couplets with themes such as happiness, wealth and longevity printed on them.

The eve of the New Year is perhaps the most exciting part of the event, as anticipation creeps in. Here, traditions and rituals are very carefully observed in everything from food to clothing. Dinner is usually a feast of seafood and dumplings, signifying different good wishes. Delicacies include prawns, for liveliness and happiness, dried oysters (or ho xi), for all things good, raw fish salad or yu sheng to bring good luck and prosperity, Fai-hai (Angel Hair), an edible hair-like seaweed to bring prosperity, and dumplings boiled in water (Jiaozi) signifying a long-lost good wish for a family. It’s usual to wear something red as this colour is meant to ward off evil spirits - but black and white are out, as these are associated with mourning. After dinner, the family sits up for the night playing cards, board games or watching TV programs dedicated to the occasion. At midnight, fireworks light up the sky.

On the day itself, an ancient custom called Hong Bao, meaning Red Packet, takes place. This involves married couples giving children and unmarried adults money in red envelopes. Then the family begins to say greetings from door to door, first to their relatives and then their neighbours. Like the Western saying, “Let bygones be bygones,” at Chinese New Year, grudges are very

easily cast aside.

The Festival of Lanterns, which is a celebration with singing, dancing, marks the end of the New Year and lantern shows.

Although celebrations of the Chinese New Year vary, the underlying message is one of peace and happiness for family members and friends.


20El Residente


ECONOMIC STORMS

LOOMING

Alan Weeks

There are a number of ‘economic storms on the US

horizon’ that could have a global impact. Will any of

them come our way?

INTERLOCKING GLOBAL WEB

As stated by Bill Gross, the CIO of the Pimco Bond Fund,

“the outlook for the global economy is the most uncertain

it has been for the last 20 to 30 years”. Too much debt,

geopolitical risks, and several bubbles have created a

very unstable environment that can turn at any minute.

We have a levered economy in the US and there is a threat

of economic instability”.

In a NY Times article (1) the other day, it was stated, “the

dollar is at the center of a delicate interlocking web of

international finance”. “There is a real possibility that

the entanglement created by this co-dependency cannot

be undone by anything short of a global economic crisis”.

That is, unless there is good international co-operation

among major economic powers to get the value of the

dollar down in a manageable way before an uncontrolled

market devaluation happens.

POTENTIAL ECONOMIC MALAISE

There are still plenty of positive reports and projections

about the future strength of the US economy. Most,

however, seem to be basing their projections by viewing

the economy ‘through a rear view mirror’. That is, by

looking at past history and past statistics from which to

draw conclusions.

Unfortunately, there is continuing evidence that the

current US economic recovery is not sustainable. The

recent US third quarter GDP report showed a weakening

of the economy. It is notable that this was consistent with

the projection made last spring by the Economic Cycle Research Institute (2). The ECRI is an independent

organization that has been one of the best forecasters of

US economic trends for decades. Their proprietary Weekly

Leading Index (WLI) was developed to predict US growth

rates about 8 months ahead. The fact is, the WLI declined

steadily from last March to July when it ‘bottomed out’.

Since then, it has been projecting a slightly negative growth

rate. Based on this, the ECRI are showing little risk yet of

US growth “falling off a cliff”, but no sign of a pick up in

growth either, at least through to mid 2005. This projection

contrasts sharply with those who are calling the current weak

GDP numbers a “Soft Patch”.

This no growth economic projection is also consistent with

the belief of some other very knowledgeable and respected

people. They contend that simply lowering taxes, pumping in

liquidity, spending aggressively, and maintaining low interest

rates, cannot possibly overcome the enormous damage done

to the US economy because so many very serious problems

were allowed to build up throughout the 1990s. Some of

these include the huge accumulation of personal, corporate,

and public debt, the build-up of ‘bubbles’, corporate and

accounting malfeasance, and foreign oil dependency. It is also

believed that the continual encouragement of consumption

rather than conservation, and borrowing rather than saving,

cannot be economically healthy over the long-term.

A Dr. Weiss, quoted in my January article, was even more

pessimistic. He stated that by embarking upon the most

frantic economic stimulus campaign in US history, politicians

and central bankers have only triggered explosive short-term

rallies. And, he believes these actions virtually guarantee a

topsy-turvy and prolonged economic malaise.


As one of the two major ‘engines’ for global growth, any

economic malaise in the US would be a severe drag on any

global economic recovery.

STOCK MARKET OUTLOOK

The average annual return on US equities over the long run

since 1926, net of inflation, has been 8.5%. This is about

the same annual rate of return over the boom-bust cycle

from 1997 to 2003. Since the “bubble burst” almost 5 years

ago, the stock markets have had a compound negative rate

of return.

Realistically, stock market values should be based on

corporate profits, and these cannot grow much faster than the

nominal GDP. A scenario of no economic growth, therefore,

does not bode well for the stock markets. Interestingly,

a long period of stock market malaise was exactly the

prediction of Yale economist, Dr. Robert Shiller, in his book (3) called “Irrational Exuberance”. And a year ago Richard

Young said: (4) “We have had the recovery. If you blinked

you missed it.”

Unfortunately, this issue now has even more support.

According to a recent VALUE LINE forecast reported in

the NY Times, the poor performance of the US stock market

since 2000 may not be over any time soon. VALUE LINE is a respected, independent stock valuation firm whose past

projections on the market have been reliable. Their latest

projection is that “the market is likely to be barely higher

in 2008 than it is today”.

Why then, do some investors still expect stocks to yield

double-digit annual returns over the next decade?

OUR HOME AND CASTLE

We all know that house prices have been rising significantly

in value since 1995. As a result, some are even saying: Why

bother to invest for your retirement when rising home

values can do it for you? Many were saying the same

thing in the late 1990s about their compounding double-

digit equity gains. Apparently, some have never learned the

lesson that the value of these assets has always been cyclical

and that over the long run, their values will revert to the

mean. In other words, there has always been a correction

after each period of accelerated gains, to bring the values

back to the long-term average.

Also, did you realize the average ratio of house prices to

incomes in the US is already at an all-time record level? Yet

people are still buying houses in the unrealistic hope of large

future price gains. That is a definition of a bubble! This

was confirmed when US homebuyers were surveyed (by

Dr. Shiller) last year. The respondents said they expected

the value of their homes to rise at an average annual

rate of 12 to 16% over the next 10 years. Really!

This is exactly the opposite of what most experts believe.

They forecast that house prices in many countries around

the world are more likely to fall, over the next few years,

leaving some homes worth less than their mortgages. There

are several very good reasons to expect this much more

realistic scenario. Unfortunately, the consequences of a

fall in house prices would have a much bigger economic

impact than the fall in share prices.

On these subjects, a very recent article in THE ECONOMIST magazine made the following points: “The

first mistake, at the end of the 1990s, was to believe that

shares were actually worth their quoted price. The second

mistake today, is to view higher house prices as increased

wealth. We conclude that American consumers have been

living in never-never land, financing their spending by

borrowing against illusionary gains in wealth.” And as

economist Ben Stein is often quoted, “If something can’t

go on forever, it will stop”.

THE DOLLAR DECLINE

The relative value of the US dollar has been fluctuating

recently, buffeted by political events and oil prices.

Overall, the dollar is down 6% from a year ago against other

major currencies. However, there is substantial agreement

among mainstream economists, including former FED vice

chairman Alan Blinder, that there is a certain inevitability

to the further decline in the US dollar because of the huge

and growing current account deficit and the national debt.

Most also believe it is likely to stay substantially lower

over the next 4 years.

By some estimates, in order to narrow the current account

deficit significantly it requires a depreciation of at least

another 20% in the US dollar (5). There is also general

agreement that managing this potentially painful move

will be a huge and pressing challenge for the President’s

new economic team. And, in order to manage a relatively

smooth decline it will require the full co-operation and

agreement among the other major industrial nations,

including China. Otherwise, according to one source, the

entanglements created by the current international co-

dependency cannot be undone by anything short of a global

economic crisis. Continued on page 22...

22El Residente

An agreement was made and a major devaluation done

successfully in 1986, but this is obviously an enormous

undertaking in today’s environment. Nevertheless, an

agreement is required soon rather than wait for an uncontrolled

market adjustment which could be more damaging to the US

economy. If the dollar fell rapidly, the result would almost

certainly lead to a recession, rapidly rising interest rates, a

shake up of the bond market, and perhaps even a collapse in

the real estate market.

REGIONAL INTERDEPENDENCY

As mentioned earlier, a global entanglement has been created

by the globalization of most economies with the US dollar at

the center of the trading web. Most countries in North and

Central America have developed the closest trade ties with

the US and hence, have a substantial dependency on the US

economy. Many also have their currency somewhat linked to

the US dollar.

WHY DO THESE ISSUES MATTER?

If and when the ‘elephant’ economy falters, all these trade

dependent countries will ‘feel the pain’ and the weakest

countries financially would be ‘badly hurt’.

Because the issues mentioned seem to have widespread,

independent confirmation, they are worthy of serious

consideration. The reason being, of course, is that it could

directly or indirectly have a major impact on our future

well-being. After all, our ‘nest-egg’ for retirement is invested

somewhere, as are public and private pensions. And, we

certainly do not want to risk running out of money before

running out of life.

The fact is that health conscious people, even those of us

now in our 60s, should expect to live for a very long time

to come. This is because so many significant advances in

biotech and medical discoveries and treatments should all

contribute to our longevity. Therefore, retirement today is

no longer the ‘beginning of the end’; it isn’t even the start of

the ‘homestretch’. With excellent prospects of living much

longer, it should be only the beginning of potentially the most

fulfilling one-third of our adult lives. Therefore, we will

likely have to keep ourselves in the lifestyle to which we

have become accustomed for a very long time yet to come.

BE PREPARED

Other known possible threats to a global economic recovery

include; a ‘hard-landing’ of the Chinese economy, another

major terrorist attack, a major de-stabilization in the

Middle East, another energy crisis or a major financial

crisis.

However, without even considering these, enough

‘homegrown’ possibilities have already been mentioned

in this article for the wise to ensure they are fully

prepared for any future shocks. The US economy could

be further damaged if and when housing prices fall, the

US dollar depreciates much further, consumers finally

slow their spending spree and start to save, and/or the

US stock markets falter again and foreign investors

withdraw further.

Investing very prudently has never been more important

or more challenging. Because it may well affect your

long-term quality of life, what have you done about it?

For more information and marked reference details please contact Alan Weeks at 256-5848

24El Residente

Association of Residents of Costa Rica

We are looking for more volunteers to help with the Charity

Committee and upcoming events. Next event in the planning

is the annual picnic this coming March or April. If you are

interested pleas contact Bob Miller or Earl Tomlinson at the

ARCR (233-8068 or 221-2053)

www.arcr.net

Canadian Club

Calling all Canadians...Join us on the Third Wednesday of

each month for our luncheon and meeting. Find out all

about our various groups and charity work around the coun-

try, and meet some fellow Canadians

Call Bob or Elsa at 228-1250

www.canadianclubcr.org

Bird Watching Club

Monthly trips around & out of Costa Rica

For information of any of our current of future trips

Please contact us Tel 267-7197

E-mail: [email protected]

The Toastmasters Club

Improve your public speaking skills

1st and 3rd Monday of each month

9 A.M.

Contact Natalie 296-3059

Democrats Abroad

The Democrats Abroad of Costa Rica meets the last Saturday

of each month at The Grand Hotel Downtown.

The business meetings begin at 11 a.m., lunch at noon, fol-

lowed by a guest speaker at 12:30 p.m.

For further information, please contact

Ruth Dixon 494-6260 or Jo Stuart 225-3101

Golden Era Movies

A film club: Classic films, World Cinema, PBS, BBC, books,

discussion Michael Bowman Phone 272-5492

Newcomer’s Club

A women’s social organization that meets the 1st Tuesday

of each month. We welcome English speaking women who

reside in Costa Rica. New and long term residents-contact

Carol phone 232-3999

PC Club of Costa Rica

This computer Club meets on the third Saturday of each month at

Pan American school, in Belen, 9 am to Noon

2 months Free Trial for newcomers For information call Chuck

Jennings. Phone 226-0123 www.pcclub.net

Republican Abroad

The Republicans Abroad of Costa Rica meets the second Tuesday

of each month Contact Francis 286-6060, 386-1420

Radio control Sailing Club

Meets at Sabana Park Lake

For information contact Walter Bibb. [email protected]

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 education on one of the finer things in life.

For more information on upcoming events please contact us

Phone 279-8927, 257-2223, 285-1276

Women’s Club of Costa Rica

Founded in 1940. The Women’s Club of Costa Rica is one of the

oldest, continuously operating service clubs in the country. The

name has changed in 63 years, but our motto “friendship and

service” has remained the same,. An English-speaking organiza-

tion, our club has approximately 350 members, originating from

over 30 countries. Please join and help us to continue to grow.

Remember that you can contact us or keep in touch through our

website www.wccr.org

White Artist colony (for David & Julia)

The colony is now holding a concert on the third Saturday of each

month. All are welcome

For price and details, please E-mail

[email protected]

Send us your club

news or activities for

free publication in

this column


ARCR member Skip

Allen releases new book

From the Publisher:Al Qaida is plotting to attack the United States with biological weapons of mass destruction on Independence Day.

Product Description:The September 11 terrorist attacks are nearly a five-year-old memory. Though the United States has never felt more secure, al Qaida is getting ready to prove otherwise.

Instead of commercial airliners, now al Qaida plans to use a biological weapon of mass destruction they call the “Phoenix.” Instead of fanatical Muslim terrorists, they’ve recruited three young American men to commit acts of bioterrorism without suspicion. Instead of targets like New York City and the Pentagon, they plan to strike America’s Heartland, unleashing the Phoenix on three unsuspecting cities while the nation celebrates its independence.

The government’s ultra-secret Phoenix Task Force races against the clock to decode al Qaida’s encrypted communications network and expose the Phoenix operation. The President orders task force agents army officer Matt Garret and government scientist Annie Stewart to work undercover for the head al Qaida Phoenix operative in the Costa Rican tropics.

With only seven days before the attack, Matt and Annie become entangled in a web of love and terrorist intrigue, putting their lives at risk to unlock the secrets of the Phoenix and to stop al Qaida’s diabolical plot before the Phoenix can rise Out of the Ashes.

Review:WOW!!! This is an exciting and timely book! Be warned! You will not be able to put it down until you turn that last page. It is a story of America’s war against terrorism and Al Qaeda’s war against

America! It could be ripped from the headlines of the future; although we pray not.

This first novel weaves literary fiction and historical accuracy with great skill. Allen’s use of the written word captivates his reader and makes the heart pound with anticipation of the next plot twist. His unique ability to explain the construction of Al Qaeda’s cells, their recruitment programs and their deployment of WMDs, only

adds to this tantalizing tale of good vs evil, embodied by the book’s two heroes, Matt and Annie, intelligence operatives who just happen to like each other, a lot.

Make no mistake; however, this is not a love story. It is a carefully woven and frightening tale of the conviction and cruelty of the terrorists, and the commitment of the United States to defeat them, at all costs.

In conclusion, I am waiting for just one more thing: Skip Allen’s next book! This is screaming for a sequel! Buy this book now and be ready for one scary ride........

26El Residente

Exchange rate of the

Costa Rican ¢ to the US

Dollar June 436.61

July 440.05

August 443.41

September 446.98

October 450.73

November 454.27

Basic Interest Rate June 13.50%

July 13.50%

August 14.00%

September 14.00%

October 14.25%

November 14.25%

Exchange rate of other

currencies to the US

Dollar Japanese Yen 102.82

Swiss Franc 1.1379

Canadian $ 1.1888

Giro (DEG) 1.5359

£ Sterling 1.9084

Euro 1.3282

Mexican Peso 11.245

Korean Won 1,048.4

Danish Krone 5.5933

Norwegian Krone 6.1191

Argentine Peso 2.9523

Colombian Peso 2,479.4

Brasilian Real 2.7420

Libor Rate1 month 2.2900 %3 month 2.4100 %6 month 2.6350 %12 month 2.9800 %

Prime Rate 5.00 %


Holidays Of

Costa Rica

March 19th

“Feast of St. Joseph”

March 24th

“Holy Thursday”

March 25th

“Good Friday”

********************

A Touch of Wisdom

“All good things must come to an

end.”

H.H. Riley(1857)

“Come what come may, time and

hour runs through the roughest

day.”

William Shakespeare(1564-1616)

“Don’t judge anyone unless you’ve

walked in their moccasins one

moon.”

Native American proverb

********************

Sometimes we feel bad about our

poor skills when talking another

language. You should feel better

to know that even large companies

can make the same errors.

When General Motors wanted

to export its popular new car,

the Nova, into Mexico and Latin

America, they promoted and

advertised it in much the same

way they did in the USA. But sales

were almost non-existent. Why?

Analysis: The beauty and power

of a celestial supernova may have

been a successful name and image

in the USA, but “nova” in Spanish

means “no go.” Sales improved

dramatically after the car was

renamed the “Caribe.”

Things weren’t any better for Ford

when they introduced the Pinto

in Brazil. After watching sales go

nowhere, the company learned

that “Pinto” is Brazilian slang for

“tiny male genitals.” Ford pried the

nameplates off all of the cars and

substituted them with “Corcel,”

which means horse.

28El Residente

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Residente 2005-01