Ginnie Bedggood is a long time resident and expat writer in the Dominican Republic. Her ebook Quisqueya: Mad Dogs and English Couple is one of best expat books I’ve ever read. Her insights into living in the Dominican Republic are humerous, informative and full of adventure.
Matthew Atlee: Ginnie can you tell us about economic conditions in the Dominican Republic since the economic downturn. How are prices of food, energy, telephone and water? What about the price of real estate: has it gone down or up?
Ginnie Bedggood: You can’t fault our President for optimism! The initial Governmental reaction to the global economic downturn was to act as if the DR lived in a bubble hermetically sealed off from the rest of the world. The Economist Group had predicted a GDP growth of about 1% for 2009 but at the Economist Forum held in Santo Domingo in March 2009, the President said GDP growth would be 3%
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090319&id=9712043
You can only fool some of the people some of the time and long term expats with connections to the effects of the economic downturn in their countries of origin are a pretty skeptical bunch! Any country which relies on tourism & remittances (money sent back home by expat Dominicans working abroad) is going to feel the effects of the global economic downturn despite Governmental denial and spin. If Dominicans working in the US and Europe are facing economic problems themselves, they will be sending smaller amounts back home to their families here in the DR. And if US citizens and Europeans are having to tighten their belts, luxury items like holidays will most likely get put on the back burner. The DR’s economy is highly dependent upon the US, the source of nearly three-quarters of exports, and remittances represent about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts.
The Economist Intelligence Unit produced a report called Manning the Barricades which assessed the likelihood for political and social instability in 165 countries should stimulus packages not achieve recovery from the international financial downturn. The Dominican Republic is deemed in the high risk category, ranking at sixteenth place with a score of 7.6 Zimbabwe tops the list with a score of 8.8, Iraq is in 6th. place with a score of 7.9, Haiti and Pakistan tie in 7th. place with a score of 7.8, the US is in 109th. place with a score of 5.3, the UK in 132nd place with a score of 4.6 and Norway is in last place with a score of 1.2
http://a330.g.akamai.net/7/330/25828/20090318195802/graphics.eiu.com/specialReport/manning_the_barricades.pdf
This must have sunk in eventually because Dominican Minister of Hacienda (Treasury) Vicente Bengoa told the annual Inter-American Development Bank (IDB) governor’s conference held in the Colombian city of Medellin that the Dominican government’s lack of financial capacity to protect the most vulnerable social sectors is provoking a dangerous social crisis at an accelerated rate that could end up creating serious governance problems. He was actually speaking about the effect of the Government collecting less by way of taxes. In 2007 the DR had a fiscal surplus of 0.3% which went to a fiscal deficit of 3.4% in 2008. By March 2009 there had been an unprecedented fall off of nearly 7% in revenues from what was projected, meaning that the Government had less to spend on infrastructure, education and health.
Prices of real estate have not dropped dramatically but they probably will – could be some real bargains to be had in next 12 to 18 months. Some absentee foreign owners who bought for an investment now need to liquidate because of economic problems in their home countries. Fewer tourists will mean fewer rentals. What IS noticeable is the number of projects which appear to have gone ‘on hold’ – people have described parts of Cap Cana in Punta Cana as like a ghost town, likewise some projects on the north coast have gone on hold. But, equally, every week there are announcements of new investments and new projects on the drawing board. The important question is whether any of these get OFF the drawing board any time soon. Many DR politicians have a nice little earner in bringing in new business and as long as they get their commission upfront they are probably not too concerned as to what happens after that.
As to food prices, I haven’t noticed a marked drop in prices. In 2008 inflation rates grew to over 11% on average for the first 3 quarters compared with 6% in 2007. High food prices, driven by the effects of consecutive tropical storms on agricultural products, and education prices were significant contributors to the jump. Now in March 2009 Banco Central puts out figures showing a minimal increase in prices (0.16%) and a marked decrease in certain items like red onions, plantains, cabbage and potatoes. Marzo cerró con alza de precios de 0.16%
But, at the same time, every week in the papers there are articles about housewives complaining that food prices have not dropped. And in the same publication where Banco Central claimed a drop of 34% in the price of red onions, a drop of 7% in potatoes and cabbages and a nearly 3% decrease in fresh chicken prices, they also admitted a 12% increase in the price of eggs and other items. Chickens down and eggs up? As always cast a wary eye on the source. The Consumer Price Index for March 2009 is here:
http://www.bancentral.gov.do/publicaciones_economicas/cipcm/cipcm2009-03.pdf
Certainly fuel prices have decreased, like they have everywhere, but the savings in transportation costs do not appear to have been passed on to the consumer by way of cheaper food prices.
M.Atlee: How is security for expats in the Dominican Republic?
G.Bedggood: Fine if you’re sensible. Crime has increased in the last 6 years without doubt and crack cocaine is in just about every single barrio now. I wrote about that a year and a half ago: Offshore Living News Offshorewave » Crime, Drugs And Expat Security In The Dominican Republic - by Ginnie Bedggood
So there have been ‘turf’ disagreements between dealers and distributors and an increase in home robberies as addicts seek to fund their addiction. Some of these disagreements are quite dramatic – in August 2008 the bodies of seven Colombians were found at Paya, near Bani, in a case which heavily implicated the Dominican Navy, a Governor, a Fiscal and a Police Chief.
25 charged in Dominican Republic murders of 7 Colombians.
Dominican Republic senator links officials to Bani killings
What has also increased is the number of expats moving here who gravitate to areas where there are already a lot of expat residents – like some of the tourist areas. Not all of these folk comport themselves with cultural sensitivity, shall we say. Thus, they get targeted, frequently by corrupt police and then the word gets out so they get targeted by civilian criminals as well. Really the best advice I can offer is if you don’t already have a modicum of street smarts, don’t move here. Please. Try Eastbourne in England or The Hamptons in the US.
M.Atlee: What’s the best part of living in the DR?
G.Bedggood: Always the people – if you want to experience irrepressible optimism, indomitable spirit and inspirational generosity of soul, get to know the locals, preferably those away from the tourist areas. Then there’s the weather, of course, - I don’t need to describe Caribbean weather, do I? Plus the laid back atmosphere. Plus the fact that people always have time for you, here. It is very unlike the rat-race of the first world, the ‘living to work’ scenario. There’s a certain irony now in 2009 when first world financial institutions are looking a bit red in the face (or would be if they had sufficient sensitivity to get that colour.) Here in the DR people work to live, but when it’s party-time they certainly know how to enjoy themselves. And when is it not party-time, you might enquire?
M.Atlee: What is the worst part of living in the DR?
G.Bedggood: Seeing the population duped by their own politicians, knowing they feel powerless to challenge because a) the older people remember Trujillo (and challenging the dictatorship was a terminal type of activity) and b) the younger people in the main have insufficient education to know how to organize. Community organization is pretty much in its infancy. The growing drug problem and associated crime might be the worst part of living in the DR for some expats, but not for me personally. Drugs and crime are not unique to the DR. But the exploitation of the populace by those politicians whom that selfsame populace have elected to office, is something I find difficult to accept.
M.Atlee: Ginnie, what other countries did you look at when you were thinking of leaving the U.K. Why did you end up picking the Dominican Republic?
G.Bedggood: I think you already know the answer Matt! We didn’t look at other countries (although both of us had visited and/or lived in many other countries before leaving the UK). We came here on holiday twice; the second visit it felt like ‘coming home’. By the third trip it was home. I know you’ve read the whole story of our move and first seven years here, Matt, because you uploaded the ebook to this site.
Quisqueya: Mad dogs and English couple by Ginnie Bedggood
M.Atlee: How difficult is it to deal with the government in the DR. Are the police honest? Is it difficult to get living and working papers as a foreigner?
G.Bedggood: I’ve already given a few hints about this…….! Governmental bureaucracy is a hoot (if you’ve got that sort of a sense of humour). If you haven’t and you don’t understand why it is happening, you can get very frustrated by the gringo runaround. Basically new expats need to understand that many of the bureaucratic obstacles put in your way are one of two things: either an attempt to get a ‘consideration’ (financial, that is) to make the obstacle disappear…..poof! Or the legacy of what powerless people do: those with a little bit of power milk it for all it is worth because that places them one slot up in the pecking order. There are ways of dealing with all of these things so that they are manageable; none of them are insurmountable. Remember this article? Offshore Living News Offshorewave » Dead Men Don’t Sign Cedulas! - On Handling And Circumventing Bureaucracy In The Dominican Republic - by Ginnie Bedggood
The police, however, are a different matter. Of course some are honest, but equally, some are as corrupt as they come. This has been given wide publicity recently, for example in March 2009 CNN ran the following: Dominican leader keeps up crackdown on corruption - CNN.com. In Puerto Plata where I live, some 31 police were recently fired for taking ‘tolls’, money to ‘look the other way’ so that narcotrafficking could flourish. Eight of these are allegedly implicated in the assassination of three young men in early January 2009; they remain remanded in custody for three months. And the other 23? They duly appeared in Court and the case was dismissed, supposedly because the evidence presented was inadmissible. That evidence included tape recordings of these officers making ‘toll arrangements’ via cell phone and these recordings were aired on local television. So the whole town knows what the evidence was. But, it was inadmissible because it was the Chief of Police who authorised that the recordings be made and not a judge.
Getting residencia is easy, time consuming but easy and there are absolutely no requirements for foreigners to leave the DR every 3 or 6 months and then re-enter. The first step is to obtain provisional residency which lasts a year, subsequently an application is made for permanent residency. This lasts………2 years! But renewing it is easy enough. For the new expat the easiest way to get provisional residency is to use the services of a recommended lawyer – the cost will be about US$1200. There is now signed into law a new ‘fast track’ system for retirees which ensures permanent residency in 45 days – Ley 171-07. I have yet to meet anyone who has entered via this route so I don’t know how hassle-free it is. Nor whether the requirement to prove a minimum of monthly pension income is merely a Governmental ploy to have the data stored ready for later taxation!
M.Atlee: Is there anything people should absolutely know about before they decide to visit or live in Dominican Republic?
G.Bedggood: Living here is very different from being a tourist. Anyone thinking of moving here permanently would be well advised to test themselves out by spending time here staying off the tourist hotels. I love it here – after 16 years the DR is truly home for me but it is not everyone’s cup of tea.
M.Atlee: How easy or difficult is banking in the Dominican Republic. Did it take much time to get a bank account or to wire money to other countries?
G.Bedggood: It used to be as simple as walking in with an existing client of that bank, your passport and some money to deposit. Now a few more regulations abound and banks will want your cédula (Dominican ID card) as well (you get this when you apply for provisional residency). I have never encountered a problem wiring money to other countries.
M.Atlee: Do you travel back to the U.K. often from Dominican Republic? What is the biggest difference you feel when you first arrive back in the U.K.?
G.Bedggood: As infrequently as possible! Initially I went once every two years, now it is every three years. Biggest difference? No-one smiles. And if I do, they think I’m a candidate for the local psychiatric establishment…
M.Atlee: How are prices for internet access? Do most places have internet and cable television?
G.Bedggood: There are still places in the heart of the campo with no internet access but this is developing all the time. All towns and cities have internet availability; many internet cafés exist open from early morning to late at night. Costs vary depending on type of service and speed - internet and telephone monthly rental for VIP service (24 hour connection) with flash is US$77 a month for the slowest of the three speeds available.
M.Atlee: How is medical care in the Dominican Republic? Do most expats have private insurance; if not, are they able to use the public healthcare system in Dominican Republic?
G.Bedggood: The public health system is best avoided. The doctors are dedicated but woefully underfunded. During power outages, if the fuel for the generator has run out, it is not unusual for surgeons to finish operations by the light of their cellphones. Private medical care is widely available and there are state-of-the-art facilities which exist like the new HOMS hospital in Santiago. HOMS- Hospital Metropolitano de Santiago Ciencia y Humanismo
As to individual doctors and surgeons, always seek a personal recommendation from another consumer, one you know and whose opinion you trust.
M.Atlee: Ginnie, we have to go, is there any thing else you would like to tell people about living in Dominican Republic?
G.Bedggood: Come and try it to see if the DR is right for you, before purchasing property. It is a lot easier to buy than to sell right now! Rent a home until you know you really want to settle here.
Ginnie Bedggood’s story of relocating to the Dominican Republic in 1992 Quisqueya: Mad Dogs and English Couple is published as an ebook on Offshore Wave. To buy the ebook click here:
For more information visit her website at Ginnie Bedggood - book author, writer, expat Dominican Republic
* More Articles on Living in Dominican Republic
* Real Estate in Dominican Republic
* Banks in Dominican Republic - Worldwide Banking Directory
* Universities in Dominican Republic - Colleges & Universities listed by Country
* Embassies and Consulates of Dominican Republic
