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Articles, National

Should You Get Dentistry Here?

Mexico is touted as a great place to get dentistry done, and most of that touting is from the industry itself. But that doesn’t mean it’s not a great savings or it’s not safe, it just means slow down and do your due diligence. Find out who you’re going to trust your health to. Make no mistake, just because your mouth is kind of on the edge of your health, it is still your health. We know a woman who got a tooth so badly infected the pain went into her neck and shoulder and she went to a chiropractor, not even realizing the pain started in her mouth. It took her almost a year to find a doctor who figured out it was coming from an infection in a tooth she had had work done on in a Mexican border town.

The cost here is a fraction of what it is in the States, and you need to ask yourself why? OK, so we’re asking: Why? Because these dentists don’t carry insurance. Fine, if nothing goes wrong.

Another reason for cheap dentistry is they pay such low wages. As a friend and business owner told me when I complained about his lousy service, “Sorry about that but I pay peanuts, so I get monkeys.” Do you want someone making way less than $1000 a month drilling holes in your gums? Fine, that’s understandable. Dentistry is costly, we get that.

Reason three that dentistry is cheaper here is that most Mexicans can’t afford to pay even the price you think is so cheap. Therefore, dentists are hungry for business from foreigners. The price you’re chortling over is a godsend to them.

Do they have the same training as US dentists? No.

There were 83 dental schools registered in the last official national count in 2007. Half are public, half are private. Admission to dental schools in Mexico requires a high school diploma, and to obtain a license in Mexico, dental students must complete a 3 to 5 year program plus a year of community service. But this  is scary: No formal nationwide standard curriculum exists, so who knows if your dentist went to a Mickey Mouse stay and vay or to a tough school where they had to learn their craft? And did you just notice we said that dentists here have four fewer years of school than US dentists? Of course a case can be made that those four years our dentists spend in college before they get to dental school are wasted since they never see a tooth.

There are 195,000 dentists in the US, and 153,000 dentists in Mexico. There are 312 million Americans and 129 million Mexicans. Clearly there are too many dentists here, especially considering how many of the very poor people never open wide for a dentist.

So, why are so many Mexican dentists trained in the United States? Look closer to that diploma on the wall they’re so proud of, especially if it says graduated from a US school. Most of them are a course lasting a week or two on a specialty. No doubt the dentist wants to improve his craft, but being able to say he’s US trained makes that couple weeks a very good investment.

And who over sees dentists in Mexico? Nobody. In the US, a dentist must pass three tests in the state he/she intends to practice in and show a hepatitis B test, finger prints, a course in infection control, and oh yes, “be of good character” whatever that entails. And they belong to the American Dental Ass., a trade organization where you can start the process of complaint.

Good luck suing a Mexican dentist if something goes wrong. There is no tort law in this country. (Tort law provides relief to injured parties for harms caused by others, and to impose liability on parties responsible for the harm).

All of this sounds negative and is not meant to be, it’s just a counter point to the one big, huge, and very good reason to get dentistry done here: Price. You can save a bundle.

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 Columns, Ensenada, Fish Report, Rosarito, Tijuana

Fish Report

Tijuana Bull Ring

Local action has been slow recently — not many bonito or bass, and just a fair number of little rock fish. Out west in the flats, however, the skipjack fishing has been great.

Coronado Islands

After a month or so of very little action, the 10- to 15-pound yellowtail are back on the bite.

The word we have is that yellowtail were seen on the rockfish area just to the NE of North Island and were taking the 6x jr., 6x and 7x yoyo iron, fished on 40- to 50-pound monofilament. Scrambled egg and blue/white were working well also.

Along with the yellowtail, a bunch of 4- to 6-pound bonito were seen spread out along the weather side of North Island.

Offshore

Captain Louie Prieto shows off one of the better-quality sheepshead caught on a recent outing.
Captain Louie Prieto shows off one of the better-quality sheepshead caught on a recent outing.

Below the 425 / Upper Hidden & Hidden Bank

This zone continues to be the best bet for yellowfin, with the most productive area being below 32.06, down in the Upper Hidden Bank area.

There is a temp break running east/west at that number. Temps are below 68°F, and to the north of it as well as 68°F to 69°F to the south.

The yellowfin, skipjack, yellowtail and dorado have nearly all been kelps now with not a lot of open-water jig stops happening.

The average-size yellowfin has been small, mainly from 6- to 10-pounds, with a few up around 20-pounds. The skippies were in the 5- to 8-pound range. The yellowtail have been little rats, from 1- to 3-pounds and the dorado have been small as well, from 5- to 10-pounds.

Lower 9 / Coronado Canyon / 425 / Upper Hidden / Hidden Bank

A couple of boats went exploring and checked out this area today. They didn’t find a lot of fish — in fact, most of the area was a barren desert, but they did find a couple of kelps which produced good numbers of yellowfin and skipjack along with a sample of rat yellowtail.

295 / 238 / 450 / 1140 Finger / Lower 500

Still the location where the biggest scores of yellowfin were coming from, but with a catch: 95% are on kelp paddies.

Easy limits of 6- to 35-pound yellowfin, along with some skipjack, yellowtail and a lone dorado were caught recently.

Most of the area is a desert now as well, with lots of dead water; but be sure and check out any kelp or any dolphin you run into, because these could be holding yellowfin.

Ensenada

Captain Louie Prieto checked in, reporting that for the last couple of weeks, yellowtail fishing has been spotty, but the big bonito and bottom fish have been biting full speed. Water was 63°F to 66°F inside the bay and has been flat and calm most days.

Several high spots at Bahia Salsipuedes were producing sand bass to 7-pounds, reds and chuckleheads to 5-pounds and one nice 23-pound sheepshead on a large root beer colored scampi tipped with squid. Best action was in 120- to 150-feet of water for all the bottom fish. There were several nice bonito on blue and white salas 6x jr. between Punta Pescadero and the Gas Plant. No birds were working anywhere in the bay, but when bait was found on the meter, the bonito have been found as well. Also, lots of bonito are reported a couple of miles inside of the southern end of Todos Santos Island. None of the deeper “go to” spots seem to be holding any yellowtail yet. Only a matter of time until they show. Live bait is not available until probably April, so bring squid.

San Quintin

Only a few groups recently. Troy Hutton, plus some amigos from Lake Arrowhead, Calif., found excellent action fishing aboard Captain Kelly Catian’s 25-foot Parker Offshore III, scoring a mix of yellowtail, big red rock cod and lingcod.

Bahia de Los Angeles

Currently, in a November tease mode with nice weather and only moderate breezes in the afternoons, most if not all the yellowtail action was dropper loop stuff, fishing at depths of 200-feet or so around the Islands. Cabrilla, grouper and pargo was also in the mix closer to shore. So far, north winds have not cranked up to full winter mode.

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 Articles, National

Big Fines for Small Tools

Drones can invade privacy, they can cause accidents, they annoy birds, and they can really piss off pilots in actual airplanes. They can also be incredible tools for scientists, photographers, and anyone in the tourism industry. In some countries, licenses are required. The International Civil Aviation Organization insists on a license too. And, of course, there are regulations. But that doesn’t stop anyone from buying a drone off the internet, and those drones are high-tech.

For example, the DJI Phantom 4 is a model from a few years ago but still very popular. It fits into a piece of hand luggage. It has the ability to fly 20 meters per second, reach 6000 meters above sea level, and fly for about half an hour on a single battery. The drone costs around 840 USD. The DJI Inspire 2 is an up-to-date professional machine. It also has a flight time of about  half an hour, but a range of 7 km and a max speed of 58 mph. Inspire 2 costs a little over 2,700 USD. As tools, these drones have great potential. Their cameras are capable of getting great still shots as well as video.  Mexico has some rules on the books in regard to flying drones, but now the government is pushing ahead, full throttle.

New regulations, which go into effect in December this year, will require all drone users to obtain a license. However, getting that license might be tricky. First, you must be 18 years or older, then you need to be Mexican by birth (sorry Gringos), you need to provide your military release card, have a high school diploma, and be in good health. If those rules don’t sound ridiculous enough, then the fine that goes along with flying without a license (in a country that hardly gives out parking tickets), is enough to have you rolling on the floor.

If the police catch you flying, and you can’t show your license, you’ll be fined as much as 20,000 USD. Of course, you could probably give the officer a few 500 peso notes and a quick flight lesson and everyone will walk away with smiles.

The Mexican government has identified a problem: Drones have the capability of killing people in manned aircraft, so they are taking steps to solve the problem. But more than likely a cop will not even stop you, especially if you’re in the middle of the desert 100 kilometers from the nearest town. The police need to cover huge spaces with few resources (they most likely don’t have a drone).  Also, they probably have better things to do, like setting up speed traps to catch unsuspecting Gringos. Although it might not be completely necessary, it’s always good to follow the rules when in another country. And that’s our disclaimer.

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Mary Moreno, CR Rosarito President; Contractor, Luis Boroquez; Maricella Maciel, Hospital Representative; and Board members Terry D’Angona and Jerry Allen.
 Articles, Charities, Rosarito

Cruz Roja Rosarito Thrift Store Expands

The sign in the store reads “Come in – we are awesome.” And they are — the Cruz Roja Voluntarios Americanos of Rosarito at the Rosarito thrift Store want you to know that they are going through a bit of an expansion in the next few weeks, but are still open for business!

In October, the Cruz Roja Voluntarios Americanos presented a check to Servicio Boroquez to start work immediately on a new storage room . With the Cruz Roja Hospital’s blessing, about 100 square feet of storage space will be added to the west side of the existing thrift store. The new space will be used to house items being stored for special events, such as the Dama’s Christmas Bazaar, and the Annual Cruz Roja Fashion Show.

By moving the “special items,” more space will become available for the volunteers to process donations of housewares, clothing, and books, and to place them in the shop for sale quickly. The Thrift Store runs on minimal overhead so that more of the money gets to the hospital, which responds to more than 300 emergencies monthly.

The expansion was introduced to the members at the monthly general meeting, and was met with full support. The Thrift Store is open Monday through Saturday, 10 am – 3 pm. Annual membership is a mere $20 per person, and the benefits include a 10% discount on Cruz Roja hospital services, and a 50% discount on ambulance trips to the US border. General meetings are held on the second Thursday of the month at 10 am at Popotla Restaurant. If you have large items, you may even call for a pick up: 661-623-3455.

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 National

What’s Going On In This Country?

Can you patent a recipe? Traditional Mixtec dishes from Oaxaca might soon be protected by a patent that has been requested by the Indigenous Peoples Development (CDI). A CDI representative in the Mixtec town of Silacayoápam, said the first stage of the cultural conservation project is to promote some staples of regional cuisine to a larger public. Gastronomic festivals have been used to develop this idea. They’ve had good progress; some recipes have already been documented, like those for the atoles (traditional hot corn and masa-based beverages), to Tepejillo, a thick pork-based sauce.

Once the cuisine of the Mixtec region and all of its dishes are fully recognizable by foodies, the CDI will move forward to formally register them. Another part of the registration process is taking place at the Teposcolula Institute of Technology, where gastronomy students are trying to formalize each of the Mixtec dishes’ recipes.

The CDI is also offering counsel and training to traditional Mixtec cooks, improving the presentation of their pre-Hispanic dishes while keeping them authentic. Wait a minute, improving or keeping them authentic? Does anyone else think this is odd? Maybe it’s just us. Did Aunt Jamima ever try to patent waffles? No. And she had something going there.

Druggies hedge income stream. A criminal organization known as the Tobacco Cartel is attempting to control Mexico’s cigarette market by eliminating from store shelves brands it doesn’t sell. Between January and September, police — or people posing as police — have carried out 364 operations at stores in eight states to seize and destroy cigarettes not distributed by the company Tobacco International Holdings (TIH).

Business owners and distributors of other cigarette brands were given fake letters from government departments such as the Federal Tax Administration (SAT) or the Federal Commission for Protection Against Sanitary Risk (Cofepris). The letters state that cigarette brands other than those distributed by TIH are illegal and cannot be sold in Mexico. Not true, you may pick your own poison.

Pueblo Magicos, again.  Todos Santos, in Baja Sur, has been chosen by the federal government to be a magic town, pueblo magico. Special? Not so much. There are now 121 magic towns all over Mexico. At the end of former President Calderón’s administration, a lot of new towns were included in the Pueblos Mágicos, despite not meeting the inclusion requirements. It’s very political. Some of the requirements are: There must be a municipal tourism department and the implementation of a tourism development plan. Each town receives US $260,000 in federal funding every year. Earlier this month the country got 10 new ones.

Mapimí, Durango, has seen the biggest improvement in terms of the well-being of citizens, with poverty levels cut from 61% in 2010 to 40% in 2015. Poverty also decreased significantly in Huicha, but Todos Santos hasn’t seen such progress. Well, maybe, they do get a lot of tourists; who knows if they know they are treading on magic ground?

Who do you trust? According to a study, more than 70% of Mexicans reported feeling unsafe in the streets of the neighborhood where they live and 80% said that they were aware of crimes such as assault, robbery, drug trafficking, shootings and homicides, taking place near their homes. Coneval that 62% of Mexicans are not happy with the neighborhood they live in and one in three people don’t trust their neighbors. Yikes, a bad place to be in when you don’t have a police department that plays heads up ball. And what cities have  any of those? Better love your neighbor, as you will never love your police.

Turn it around, Pedro. Central American migrants were arrested while walking or hitching rides in the southern state of Chiapas. Immigration officials and police blocked the migrants’ path with about 30 vehicles. Some succeeded in outrunning authorities while those detained were taken to a National Immigration Institute (INM) facility, where they were put on buses and taken to the airport. There, they were tossed aboard a Federal Police plane and flown to San Pedro Sula, Honduras.

The United States government is warning that its armed forces will fire guns on migrants who throw rocks at them, but in Mexico a kinder and gentler approach is coming. The incoming chief of the National Immigration Institute (INM) has vowed that Central American migrants will receive kinder attention during the administration of the incoming federal government. We’ll see how long that lasts, as some people in the migrant caravan tossed Molotov cocktails, rocks and sticks at the police. That can piss off anyone. But meanwhile, incoming immigration authorities are babbling on about migrants’ human rights.

The social sciences academic and former head of the College of the Northern Border, who was announced this week as the new INM chief, said that under Andrés Manuel López Obrador presidency, migrants won’t be stigmatized nor will their personal situations be ignored.

No more chicken fights. The Supreme Court has ruled that ban on cockfights by the Veracruz Congress two years ago is constitutional. The ruling said there were many benefits from the ban with regard to the animals’ well-being, protecting them from physical injury and even death. The state’s Animal Protection Act also prohibits hunting and capturing wild animals, fights between any animals, and displaying animals in circus shows.

Say, what? Mexicans’ command of English is on the decline, a new study shows. Mexico dropped 13 places to 57th of 88 countries on the 2018 EF English Proficiency Index (EPI). In Latin America, Mexico ranks ninth out of 17 countries behind Argentina, Costa Rica, Dominican Republic, Uruguay, Chile, Brazil, Guatemala and Panama.

This was attributed to overcrowded schools, low teacher wages, and inadequate teacher training.

Don’t bogart that joint. Mexico’s Supreme Court has issued two more rulings ordering that complainants in individual cases be allowed to use marijuana for recreational purposes, establishing a precedent that a blanket prohibition on pot is unconstitutional.

The court found that adults have a fundamental right to personal development which lets them decide their recreational activities without interference from the state.

We’re talking personal consumption, not all out commercialization. The rulings do not even technically legalize recreational use, however. They establish that courts must allow it, but it is still up to each individual to press his or her case in the judicial system.

Mexico saw something similar happen in recent years with five Supreme Court rulings establishing a broader precedent allowing same-sex couples to wed, though same-sex marriage has yet to become the law of the land nationwide.

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 Baja Norte, Calendar of Events, Rosarito

Rosarito Calendar Of Events

Every Monday through Thursday, 9am – 12pm; Pickleball at Punta Azul Tennis Center. Cos: $1 court fee per person per day. Organized by Robert Canaan. BYO paddle and ball. Information: Facebook.com/ Rosarito Pickleball

Every Sunday 4 pm. Cultural Sundays in the park. Local Mexican and American dancers and musicians.  At the IMAC in Abelardo L. Rodriguez park, west of Banamex. Facebook IMAC Rosarito. Free.

Every Sunday 2 – 4 pm at the IMAC Central Park (behind the Banamex on Juarez) Dancing for seniors. Salsa and merengue (among others) tunes designed to not throw out a hip. www.facebook.com/IMAC Rosarito

Second Sunday of every month, Pet sterilization by the Baja Spay and Neuter Foundation at the Centro de Diagnostico Clinico Vetrinario, ave. Queretaro #2331-3, Col Cacho, Tijuana. 200 pesos, 661-124-3619, or Robin at www.BajaSpayNeuter.org.

Last Sunday of every month, Jewish Chavurah. Gordon Kane – gordonmkane@gmail.com.

Every Monday, 10:45 am, duplicate bridge at Baja Gold Bridge Club, KM 42 at the Rosarito Beach Christian Church. bajagoldcoastbridgeclub@gmail.com.

Every Tuesday – Rotary Club meets at Rosarito Beach Hotel. 664-376-2620.

Every Tuesday 10am to 11am.  Chair Yoga – Rosarito Wellness, Healing, Living at IMAC Park, room 1 in Rosarito (behind Banamex). Improve Balance & Coordination.  Receive all the benefits of yoga in a gentle, Healing, Meditative yoga class where a chair is used for support and balance. Bring water, small towel and comfortable clothing. Instructor: Erendira Abel, Certified Holistic Health Specialist. $5 per class, paid at beginning of month. For registration and location:  (661) 614-6036 Mexico or (619) 632-2965 US. Email: wellnesshealingliving@gmail.com

Every Tuesday. 9:00 am. Board Meeting for Yo Amo Rosarito at Ortega’s Buffet. See what events are under consideration or volunteer to help plan and run upcoming events.

Every Wednesday, 7:30 – 9:00 am; Tai Chi classes with certified instructor Eugenio Encinas at Galeria Fausto Polanco Rosarito. 350 pesos per month. Alyce: 664-368-6733; Alberto: 661-125-9191.

Every Second Wednesday (except December). 10 am. Friends of the Library meeting at main library of IMAC building next to Abelardo Rodríguez Park. Promotes reading and literacy in Rosarito. www.friendsofthelibrary.com.mx. 661-612-3659.

Second and FourthWednesday, 1 pm; Cruz Roja Primo Tapia Bingo at El Pescador Restaurant. 6 games/ 2 cards for $5. Reduced price menu; Jamesphausmann@gmail.com; 1-623-217-9795.

Every Second Wednesday OR the Wednesday prior to the Second Saturday (except December); Flying Samaritan’s General Meeting at Rene’s Casino (k28) at 1:30. Come early and enjoy lunch! www.flyingsamaritansrosarito.org; Susan Smith @ susansmithz@hotmail.com; US: 1-858-240-2360; MX: 661-100-6066.

Every Third Wednesday, 10 am, Meeting of Rosarito Sister Cities at City Hall, Fojadores Room, 2nd floor. Information and RSVP: FRAO@Rosarito.gob.mx.

Every Third Wednesday (except December) 1:00 – 4:00 pm, Flying Samaritan’s Outrageous Bingo at Popotla Jr. Restaurant (across from El Nino), Food and Drink specials; free parking behind restaurant; Six games, 4 cards for $10; Karen: kajomc@yahoo.coojm; (US) 1-818-515-0067l (MX) 664-609-3419.

Every Last Wednesday, 11:30 am, Wellness Wednesday Workshop “Intentionally Aging Gracefully” with Erendira Abel at IMAC a Abelard Rodriguez Park (behind Banamex). $6, and pre-registration is required. Info: wellnesshealingliving@gmail.com; (US) 1-619-737-2453, (MX) 661-614-6036.

Every Thursday. 8:30 am. Local Board of Realtors (APIR) meets at Oceana Grill. Good place for buyers or sellers to find a Realtor

Every Thursday, 10:30 am, Learn Spanish “Naturally” with Erendira Abel at Rosarito Beach Christian Church. $5, and pre-registration is required. Info: wellnesshealingliving@gmail.com; (US) 1-619-737-2453, (MX) 661-614-6036.

Every Second Thursday. 10 am. Cruz Roja Volunteers, Rosarito Chapter General Meeting at Popotla Restaurant. www.cruzrojarosarito.org.mx; President: Mary Moreno, miqueridomx@yahoo.com.

Every Third Thursday. 10 am. General Meeting for FRAO, Foreign Residents Assistance Office. Open to the public. Calafia Hotel.  Speaker’s presentation. FRAO@Rosarito.gob.mx.

Every Fourth Thursday of the month, 12 pm, Baja Babes, the Rosarito Chapter of the Red Hat Society for ladies over 50 monthly luncheon. Each month a different restaurant. margit@prodigy.net.mx.

Every Friday. 4pm.  Spanish class main library, by IMAC, in Abelardo Rodriguez park behind BanaMex. Free but donation appreciated.

Every Saturday, 10:00 am at IMAC Central park. Chess for all ages. www.facebook.com/IMAC Rosarito.

 Every First Saturday. 10 am. United Society of Baja California (USBC) general meeting at Casa Blanca Restaurant, Rosarito Beach Hotel. Good info for the English speaking community of charitable, community service and social organizations. www.unitedsocietyofbaja.org. 661-614-1113.

Every First Saturday. Noon-sundown. Open Studio Art Walk, a free tour of galleries in Rosarito Beach Hotel commercial center. Meet artists at work in their studios. pacothepainter@hotmail.com

Every Third Saturday. 1pm. USBC, United Society of Baja California, monthly potluck dinner, at La Maroma sports bar, across from Burger King. Different theme every month. Usually live entertainment. Free. Membership $20 per year.

Every day but one day at a time AA Grupo Gringo meets daily #16 Mar Meditteraneo (two blocks behind Del Mar Beach Club). Saturday, 3:00; Sunday, Monday, Thursday: 10:00 am; Tuesday, Wednesday, Friday: 6:00 pm.  Additional meetings in Cantamar (just south of the footbridge) Tuesday and Friday, 10:00 am.  661-614-1678.

November 16, Friday, 9 am – 4 pm; 11th Biennial Baja California Photo Contest and Exhibit at CEART Rosarito. For rules and information of submitting photos, go to Facebook.com/ CEART Playas de Rosarito. 661-100-6338.

November 21, Wednesday, 6:30 pm; Author Karla Contreras presents her novel, “Dios Quiere Hablarte” at CEART Rosarito. Free. 661-100-6338. Facebook.com/ CEART Playas de Rosarito.

November 22, Thursday; Thanksgiving Dinner at Bobby’s By The Sea (k 43); 3 seatings: 2:00 – 4:30 pm, 5:00 – 7:30 pm, or 8:00 – 10:00 pm. $14.95 includes turkey, all the sides, pumpkin pie, and welcome champagne. Reservations required! www.bobbysatk43.com; 661-114-6278.

November 22, Thursday, 3:00 AND 4:00 pm; Thanksgiving Dinner at Popotla Restaurant. $14.50 includes Turkey, all the sides, and pumpkin pie. Reservations required. 661-612-1505.

November 22, Thursday, 2 – 4 pm; Thanksgiving Potluck at Magana’s Tacos, Primo Tapia. Turkey will be provided. You bring a side to share. Facebook.com/ Maganas Restaurant Bar.

November 24, Saturday, 9 am – 4:30 pm; “Encuentro de Industrias Culturas y Creativas 2018” at CEART Rosarito. Featuring Paolo Mercado Espinoza and Arturo Sastre Blanco. $400 pesos. Facebook.com/ Encuentro de Industrias Culturales y Creativas.

November 25, Sunday, 11 am – 2 pm; Battle the Bartender Bloody Mary Contest at Magana’s Tacos. Information: 01-646-155-0586. Facebook.com/ Maganas Restaurant Bar.

November 27, Tuesday, 8:30 am – 12 pm; 3rd Annual Feminine Culture Conference at CEART Rosarito. Subjects include personal safey and security, domestic violence, and more. Information: mcfrosarito@gmail.com or 661-850-5957.

December 2, Sunday, 2 – 6pm; Dance Party at Tempest Trading, (k 40.5). Free. DJ playing rock & roll, disco, blues, and more. Facebook.com/ Tempest Trading Baja.

December 5, Wednesday, 1 pm; Flying Samaritan’s Annual White Elephant Gift Exchange Luncheon. Bring a $20+ gift to swap. Donation of $15 includes luncheon. RSVP: susansmithz@hotmail.com; 661-100-6066 (MX); 1-858-240-2360 (US).

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 Articles, National

So How Is The Average Jose Doing?

Defining the size of Mexico’s middle class is more complicated than it is in the United States, where it is a more straightforward measure of family size and income, with data gathered by the U.S. Census Bureau and other sources. Mexico is a far less transparent country.

So economists have measured the country’s middle class by other means — access to household goods or health care, consumption levels, access to credit, education, food security. It’s a politicized statistic, because Mexican politicians and commentators tend to pick the yardsticks that best suit their agendas, depending on whether they want to depict the country as better off, or mired in poverty. There’s a lot of fake news out there.

But the expansion of Mexico’s middle class over the past several decades is an undeniable trend. In 1960, some 80 percent of Mexicans were living in poverty. Today, the national average of “working poor” households (those that work but still can’t provide sufficient income for a family´s minimum food requirements) among Mexico’s 31 states is 40 percent. Baja California Sur has one of the lowest working poor rates in the country, at just 19 percent. While Mexico’s inequality gap remains wide compared with more developed countries in Europe and Asia, that gap has not increased in recent years as rapidly as it has in the United States. Meanwhile, Mexico’s working class appears to be floating upward on a rising tide: GDP per capita has increased from $7,357 in 1990 to $9,009 in 2015 (the most recent data available). That is a real gain, because inflation is under control.

The Organization of Economic Cooperation and Development, a group of 34 developed economies, considers Mexico to be 50 percent middle class, based on median incomes. Then there’s another gauge: self-perception. According to surveys, 65 percent of Mexicans see themselves as middle class.

One result of having a small middle class is there is a small pool to pull from for middle management. Middle management comes from the middle class. Case in point:

A restaurant will be founded by a rich guy. He’s not going to run it, he’s usually got other businesses and other interests. Who does he get to run it? There are no educated and trained middle managers, so he pulls one of his waiters out of the lower classes and calls him a manager. He has no idea how to manage, he doesn’t have the education, experience, or cultural background. And this is why Jose can’t get the tacos to the table before they get cold. It’s a lack of middle class/middle management.

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 Articles, Baja Norte, Ensenada, Real Estate, Rosarito, San Felipe, Tecate, Tijuana

Mexican Land Trusts, Big IRS implications

I was intrigued by a recent presentation by a Mexican bank on the subject of Fideicomisos (land trusts). By way of a quick primer, ownership of real property in the “restricted zone” (100 km from borders, 50 km from shore) by a foreigner must be done through a Fideicomiso.

As it turns out, Mexican banks have a monopoly on this Fideicomiso business. The bank’s role is to hold the title to property on your behalf. One can direct the disposition of the property; sell, give away, or otherwise encumber the property. ‘Fidos’ are good estate planning vehicles from the Mexican perspective. At death, the property is transferred via the trust, perhaps a more efficient mechanism than Mexican probate.

Some banks appear to be pulling out of the “fido” market. When I asked why, I was told there is increased emphasis on anti-money laundering compliance by bank regulators, which to me means there may be a new spotlight on this market segment.

One of the reasons I attended was to see how much awareness there was on the part of bank officials on the federal income tax aspects of Fidos.  None. Zilge-ola. That means you, the person who may need to enter into a fido to own property, must pay special attention, because the bank won’t tell you.

Here’s the rub. What may work from a Mexican perspective may be sheer disaster from a U.S. tax perspective. Properly structured fidos (meaning they meet IRS requirements) are deemed to be “disregarded entities,” and the IRS will not bother you. When they are not, they become IRS ‘radioactive’. They become reportable foreign trusts. Every time there is an IRS reportable ‘anything’ you have better had done it right from the beginning.

“Good” fidos have only one property in them.  At the presentation it seemed like it was common to add more than one property per fido. Again, ok from the Mexican point of view, but runs afoul of IRS ‘safe harbors’. In fact, bank officials later confirmed they gladly would add properties to an existing fideicomiso, for a fee.

Another trait of “good” fidos:  They do nothing but hold title to property. Be wary of the bank doing other things for the property; managing it, paying taxes or other things. The IRS does not like that.

Food for thought:  New owner, new trust, or just substitute the name? Does one inherit the federal tax troubles of the last fido owner?

Orlando Gotay is a California licensed tax attorney (with a Master of Laws in Taxation) admitted to practice before the IRS, the U.S. Tax Court and other taxing agencies.  His love of things Mexican has led him to devote part of his practice to federal and state tax matters of U.S. expats in Mexico.  He can be reached at tax@orlandogotay.com or Facebook: GotayTaxLawyer.  This is just a most general outline. It is informational only and not meant as legal advice.

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 Articles, Baja Norte, Ensenada

Growing Pains

We Ensenadenses are experiencing a metamorphosis the pulse and pace of which are increasing exponentially.

Even as we traverse the same streets and boulevards en route to our usual places of work or worship, of play or passion, we notice that seemingly in the blink of an eye, a new monolith rises from the rocky soil, a skeleton of steel shrouded in concrete and adorned with neon. And within minutes of its birth, it becomes alive with the energy of people who have found a need to enter and explore it, to patronize it, even though it didn’t even exist seemingly moments ago.

As one who has lived here only seven years, I find the growth exhilarating. During my relatively brief presence here, I have commented on the recent efforts by our mayor to improve the infrastructure of the city.

For that praise (especially regarding the major street repaving projects) I have received some sharp criticism.

Perhaps because I referred to those areas of the city over which I traverse regularly, finding many of the once-devastated avenues so plagued with potholes as to represent a danger to the undercarriage of my car, now properly repaired and delineated.

I was excoriated by several people who own homes here and pay taxes and whose neighborhood streets still look like downtown Saigon during the Nixon administration.

Forgive me. I am forever the optimist.

But even I am beginning to wonder if this tidal wave of new construction can continue without some tipping point of reality to cause the boom to bust.

Why?

Because even with a brand-new desalination plant now fully operational, we still experience water shut-offs, although admittedly less frequent and shorter in duration.

Even with a new fleet of garbage trucks from Los Angeles roaming the streets, the problem of litter is still appalling. One reader sent me a photo of medical waste spilling out from an open dumpster on 14th Street at Ruiz.

And even with the massive effort to repair the minefields that comprise our network of roads, there are still so many left to upgrade that the prospect of complete success seems daunting, if not quite completely impossible.

But again, I am forever the optimist. During one of my deliveries, I entered the Baja Pharmacy on Calle Blancarte, next door to the Casa Del Sol Hotel. I noticed a small black-and-white photo on the counter, depicting the storefronts on La Primera (“The Avenue,” or 1st Street, the shopping mecca for the tourists from the cruise ships), taken decades ago.

I asked Jose Ibarra, the proprietor, about the photo.

“Where was that picture taken?” I asked.

“Right across the street,” he replied, pointing to the new La Primera Restaurant on the adjacent corner. “I’ve been here for over 50 years, in this same spot, and I’ve watched all these new businesses crop up, and seen the skyline of the city change over the years.”

That says it all, folks. Build it and the people will come. If it doesn’t work, we’ll find a way to fix it.

The people are coming, there is no doubt about it. The influx of population seems always to be one step ahead of the infrastructure, and the people may bitch about it but they won’t leave, because the truth of the matter is that regardless of its problems, Ensenada’s enchantment far exceeds its challenges.

Otherwise, why would Jose have stayed all these years?

I can’t imagine how amazing it must be for anyone of any age who was born and raised here to remember the place of their childhood and compare it to the city as it is now.

It’s a beautiful city and we all want it to work.

I guess we’ll just have to cooperate with each other; we can figure it out as we go.

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