Cotacachi, Imbabura

June 1, 2011

As a rash of armed robberies of American retirees is showing, Cotacachi is not the paradise pitched to the hundreds of foreigners who have recently arrived to live there, lured by too-good-to-be-true real estate offers (“Live like a king for $400 a month!”). As a dual citizenship American living, working and raising my children in Cotacachi since 1999 I have been extremely concerned with the brazen manner in which real estate developers have entered into the fray here, especially since 2008. Imbabura province is a huge conduit for the narcotics trade and is home to organized crime, drug cartels, thousands of gang members, and increasing levels of violence and delinquency. In fact, as of June, eight gangland murders had taken place in Cotacachi in 2011 alone! Are the developers who paint such a pretty picture totally ignorant of the social instability that characterizes Cotacachi? Do the foreigners who choose to retire in Cotacachi (to stretch their retirement dollars) realize the negative social, economic, and environmental impacts of their presence? Do they care? Do new foreign residents realize that levels of resentment towards them continue to grow as they are increasingly seen as ignorant, arrogant, and culturally disrespectful?

The purpose of this website is to provide information to foreigners living in (or looking to relocate to) Cotacachi, Ecuador, specifically for the purpose of contradicting many of the falsehoods told by certain real estate companies aimed at selling real estate to American/European immigrants. The purpose of this website is NOT to dissuade Americans/Europeans who want to live in Ecuador from doing so, but simply to explain—more completely than many other sources of information do—what exactly making such a decision should entail to preserve the human, political, and environmental rights of native Ecuadorians in Cotacachi and the surrounding area.

This website has not been created with the purpose of discrediting any specific organizations or people. It is instead meant to be a source of information alternative to other sources that attempt to attract North American seniors to Cotacachi, created in reaction to much of the harm to Cotacachi’s people, economy, and environment that has transpired due to the irresponsibility—though often with innocent intentions—of North American or European immigrants.

This website has been written based on information from personal interviews and research of other, less honest, sources of information about retiring in Cotacachi, Ecuador. To protect the privacy of those interviewed as well as those giving out false information on the Internet, this website refrains from using any specific names or referring to specific enterprises. The creators hope that after being exposed to the information on this site, however, readers will be able to determine which sources of information must be regarded critically and generally avoided during their decision-making process.

Yours in good citizenship,

Peter Shear

 

About Cotacachi

Cotacachi is a small Ecuadorian county with about 42,000 residents as of 2007, over 8,000 of which live in its urban center, also named Cotacachi.[i] It lies in the province of Imbabura between the Cotacachi and Imbabura volcanoes, the sources of the city and provincial names. The city of Cotacachi is the seat of the municipal government and has a population of about 10,000.

In 2001 the North American and European immigrant—or “gringo”—population was only about 1.5% of the total population of Cotacachi.[ii] But the question of a growing immigrant population as a result of interest in the United States, Canada, and Europe in retiring or otherwise escaping to Cotacachi is a rising concern. Less than ten years later, the population of “gringos” is estimated by Cotacachi’s Office of Tourism as having grown to over 300 individuals, 3.6% of the population and a 125% increase.

Cotacachi has a history of strong community ties and political activism. Since 2000 a piece of this strength has been focused into an organization called the Asamblea de Unidad Cantonal de Cotacachi (AUCC), or the Cotacachi Assembly of County Unity. The goals of this assembly include ensuring the democratic integration of Cotacachi’s different populations: indigenous peoples, mestizos (peoples with both indigenous and European ancestry, mostly from Spanish colonists), Afroecuadorians (Ecuador’s African originated population), and whites (which include most recent immigrants).

The Truth

Readers interested in moving to Cotacachi must ask themselves why they want to come, and be brutally honest in their answers. A responsible global citizen deeply understands the flaws of the country and culture they are about to enter as well as its strengths, and chooses, perhaps, to live there anyway knowing that he or she cannot simply act or think the same way as they did in their home country. It will be uncomfortable at times.

Many websites advocating retirement in Cotacachi stress the city’s safety, the friendliness of locals, and, most importantly, low prices. In fact, the main motivation behind many of the testimonials used to entice seniors to retire in Cotacachi is either making or saving money. Not only is there no thought given to the effects on Cotacachi’s people through transforming the economy, but there is an inherent lack of moral responsibility present when a person seeks to take advantage of poverty in another country for their own personal gain, or moves to an unfamiliar culture solely for fiscal benefit without learning about that culture or attempting to be a part of it. These practices are advocated directly by certain sources of information without much thought to their consequences.

The truth is that there is a lot of resentment present within Cotacachi’s different social communities in reaction to what is commonly called “amenities migration”—movement into more rural or exotic locales with the desire to escape urban or economic conditions, or, as in this case, the realities of living in the United States, Canada, or Europe. Ecuadorian culture often urges a formal politeness, as well as the reception of guests with open arms. But these cultural traits come with responsibilities on the part of the “guest,” the North American or European immigrant now present within a society already moving and evolving similarly to the one he or she has left. Resentment on the part of Cotacachi locals comes when the guests in their culture don’t hold up their part of the bargain. The following sections describe the ways in which uneducated or unprepared migrants can wind up harming Cotacachi’s community. These situations are complex, and some are worsened by local mismanagement as much as by immigrants. But those who make the choice to live in Cotacachi must understand what is currently happening there, as well as how those effects can be mitigated.

Social Responsibility

Social conflicts between immigrants and Ecuadorians living in Cotacachi have arisen as a result of perceived insensitivity on the part of immigrants. Many North American or European immigrants do not bother attempting to learn Spanish or associate with locals, indigenous and mestizo alike. Rather than understanding that Cotacachi has its own racial, social, and cultural divides constantly undergoing interaction, transformation, and movement, many immigrants simply regard all Ecuadorians as being in the same group. Locals, some of whom speak English, as well as immigrants themselves have overheard some racist or otherwise insensitive and ignorant comments made about Ecuadorians living in Cotacahi. Most of these refer to a perception of a lower level of intelligence, lack of business or fiscal sense, and dishonesty. Certain websites briefly mention indigenous traditions to prospective foreign land-buyers, usually in a very contemptuous tone (sometimes even urging their readers not to laugh, despite the apparent temptation to do so) and without a very detailed description or historical background.

These assumptions and prejudices are made despite the fact that most immigrants here cannot speak Spanish and therefore cannot hope to understand the culture they are living within. Instead, they live, knowingly or unknowingly, within an exploitative system that takes advantage of local poverty and the perception of power and wealth behind North American or European peoples. Indeed the latter perception exists in abundance among some Ecuadorians; rising crime rates in Ecuadorian cities where white immigrants are increasingly common seem to be targeting this population, who are perceived to be more wealthy and vulnerable. While crime is a function of many socioeconomic factors an immigrant certainly cannot be solely responsible for, the presence of white immigrants can increase crime in certain places that specifically targets them.

One of the most important participatory aspects of Ecuadorian culture, especially among indigenous groups, is the concept of “minga.” Mingas are days or periods of time set aside for members of the community to work together on a project, either one that benefits the community as a whole or as part of an exchange of work between different community members. Much of the maintenance of infrastructure and public works occurs through mingas, and thus every member of the community has an obligation to participate. This includes immigrants, who make use of the services provided and maintained by mingas. For those who are elderly or physically unable to help, a fee must be paid to the community on minga days.

Members of the community are currently very upset with the lack of participation or payment from North American or European immigrants currently living in and around Cotacachi. During the construction of mansions and large walled communities in small indigenous villages around Cotacachi proper, several roads were damaged by trucks laden with heavy equipment and materials. Many of the immigrants, however, do not feel an obligation to help the community solve this problem and that their taxes should cover these services, but this is simply not how Ecuadorian culture or life in a small Ecuadorian town function. Those who choose to live in Cotacachi must participate in mingas or pay a small fee, usually around ten dollars. To not do so is to use the services and infrastructure provided (and needed) by the community irresponsibly.

Recently, a group of real estate developers from the United States began the implementation of a plan to construct a private, walled retirement community bordering the Cotacachi urban center. The complex will include a private shopping center and medical clinic. Membership in the center will be restricted to immigrants based on the high cost of such amenities, and therefore the services provided by the medical clinic will be off limits to locals. The complex will be situated only a couple blocks from Cotacachi’s public medical clinic, which is underfunded and overcrowded. The monopoly immigrants will have on superior medical care is an indication of the lack of concern real estate developers have for the local population, as well as the quickly widening gap in services available for different groups based on ethnic and national origin.

Whenever an immigrant moves to an unfamiliar country and into a vastly different culture, it is their responsibility to learn as much as they can (preferably beforehand) about their new surroundings and the people they will now be calling their neighbors. It is essential for North Americans or Europeans looking to move to Cotacahi to integrate with the community, living together with its residents and not apart within a walled complex. The best way this can be done is through learning the local language, in this case Spanish or Kichwa. The Proyecto Nacional de Integración Multicultural (National Project of Cultural Integration) or PNIM, a program maintained by the Ecuadorian government, is currently organizing a language institution which will give free classes in Spanish and Kichwa to immigrants, as well as teaching English to Ecuadorians. This organization, which is also involved in many other intercultural services and events, can be contacted at ser.arte_albanta@hotmail.com.

Economic Responsibility

Some of the phrases used on websites meant to attract North American and European immigrants to Cotacachi primarily highlight a fiscal argument for doing so. Phrases like “live like a king for 400 dollars a month” often pop up, as well as recommendations on how to start small business and attract employees. Most price quotes given by these websites are false, however. They do not include the actual cost of services in Ecuador and certainly do not reflect the legal cost of labor. Many North American and European immigrants who employ Ecuadorians do not pay them minimum wage—340 dollars a month—or provide the legally required health benefits and job security. This is often not due to purposeful exploitation, but instead due to ignorance with regard to labor laws. Many of the impoverished Ecuadorians looking for work are willing to perform most jobs even at less than minimum wage, but taking advantage of this desperation is an affront to their legal and human rights. Real estate venders do not provide information pertaining to worker’s rights and the rights of employers on the web or on tours. In the “Links” tab the reader may find a link to Ecuador’s labor laws and minimum wage requirements.

Another of the economic myths surrounding amenities migration to Cotacachi is that it has a positive effect on the local economy. It is true that some businesses benefit, but the majority of services specifically tailored towards immigrants are managed by other North Americans or Europeans, or are side businesses for real estate developers. This is especially true in retirement complexes like the one planned for Cotacachi that have their own shops and services; retirees don’t have much of a choice about whom their money goes to, and they are most often renting or buying from other non-Ecuadorians. This also pertains to restaurants and stores owned and operated by immigrants for immigrants, and is a trend increasing as the immigrant population increases in Cotacachi. It is unclear whether all of these businesses pay taxes on their profits, as a mixture of corrupt and incompetent local officials and ignorance on the part of immigrants makes legal accountability for tax evasion difficult. In addition, the majority of money owned by real estate agents and the various businesses and services under them goes to banks in other countries, usually Panama or the United States. The “trickle-down” theory of economics—the wealthier supporting the less wealthy through their spending—does not hold true in Cotacachi.

Perhaps the largest difficulty native residents of Cotacachi have had to deal with as a result of immigration from North America and Europe has been rising land prices. Between 1994 and 2010, the average cost of a 63m2 house increased from $23,000 to $50,000; a ½ hectare (100m2) lot rose from $8,000 to $25,000.[iii] This is a phenomenon admitted by most sites trying to sell real estate, but depicted as proof of how high the demand for land in Cotacachi is and therefore of how excellent a place it is to live. The looming other perspective, however, is the fact that indigenous families can no longer afford to buy or hold land that they have lived on for centuries. Oftentimes a North American real estate dealer will approach an indigenous family looking to buy their land for a set price, usually more money than the owner has seen in his or her lifetime. The developer will then sell that land to an immigrant for twice or three times as much, reflecting the actual land prices and how quickly they have risen in recent years.

This is a practice dishonest to both indigenous Ecuadorians whose lack of education about actual land prices is being taken advantage of, as well as immigrants looking to buy the land who don’t know that as much as two-thirds of what they are paying is going directly to the real estate dealer and not the lands’ former owner. This high percentage for the middleman isn’t for much else than speaking English and knowing where to find (or swindle, as many locals see it) the land in the first place. It is also a practice that, according to both an anthropologist working in Cotacachi and a local representative of indigenous communities, is resented very strongly by indigenous Ecuadorians and is a real threat to destroying their culture. Without land, they can do nothing but be forced into labor, often under illegal conditions, for the rising tide of immigrants demanding more services. This shows no responsibility towards the local economy or preservation of its peoples’ choice of how they want to live.

Environmental Responsibility

The third major falsehood perpetrated by websites giving information about retiring in Cotacachi is their insistence that, through buying their land or using their services, prospective clients can be environmentally friendly. Many of those selling real estate themselves claim to be permaculturalists, or working to preserve Ecuador’s biodiversity. There is a fundamental contradiction between this message and the realities of working as a real estate developer, who by nature are in the business of changing land use from forest or agriculture to residential or commercial purposes; these forms of land use require denser infrastructure and use more resources. Instead of understanding this consequence, many sources of information romanticize Cotacachi’s beauty and biodiversity without giving much thought to how their actions impact these characteristics of the surrounding countryside.

Development brings roads, especially through areas that were once agricultural land or forest but now require infrastructure. Loss of habitat is one of the main threats to local wildlife, especially with regards to a project to pave the main road leading into Intag—a rural area with thousands of hectares of cloud forest and one of the most biodiverse biomes on the planet—with the intention of buying land and developing it there. In addition, the changing land use in the area is a major threat to long-term food sustainability, as more and more food must be imported to make up for the lack of agricultural land. This in turn adds even further to the carbon footprint of immigrants who buy developed land, perhaps assuming that the views of mountains surrounding them ensure their oneness with the environment.

Several immigrants currently living in Cotacachi that this website’s creators spoke with have not only complained about the shoddy construction of the houses they bought, but also about the lack of water and electricity available at certain times during the year. The former problem is caused by dishonesty, the latter by the realities of living in an area with limited resources. Development in the mountainous regions surrounding Cotacachi’s urban center has placed a heavy burden on local water supplies. This problem is compounded by the general disorganized nature of data on local wells and streams and where exactly water comes from; immigrants must understand that by moving to Cotacachi they are tapping into a chaotic and poorly planned water system.

Instead of informing their readers about this issue, certain websites instead portray the problem as solvable by simply piping more water from farther away or building more collection tanks. Unfortunately, these are not only temporary solutions, but are often assumed to be the responsibility of Cotacachi’s municipal government and not the people causing the problem in the first place. One testimonial detailed on a website aimed at selling land in Cotacachi to North Americans describes how a couple turned a “wasteland” into a “garden,” ignoring the massive environmental and social impact of pumping so much water from more fertile areas and introducing non-native plant species. A site like this cannot possibly glorify this story and then claim to advocate environmentally responsible living.

Contrary to one statement in particular made on almost every site advertising Cotacachi, it rains seven months of the year in the region and is not by any means always sunny and warm. This is a minor point, but proof of the kind of dishonest bias present within much of the information given about Cotacachi’s environment and how this dishonesty leaves prospective immigrants from other countries unprepared for the reality they are about to face. It is extremely important to meet any source of information that claims an immigrant or retiree can live in Cotacachi with minimal environmental impact with extreme scrutiny.

Safety

One of the falsehoods that is most directly harmful to prospective clients, and one often repeated by websites in favor of North American or European retirement in Cotacachi, is a misrepresentation of Ecuador’s safety. Often the safety and tranquility of Cotacachi is stressed as a selling point, but this is an exaggeration. On Sunday, April 17th 2011, a young indigenous girl was kidnapped by a group of men and sexually assaulted, the third in a series of similar instances that have disturbed many of Cotacachi’s residents. There is a drug trafficking presence in Cotacachi, as well as gang activity and juvenile delinquency. Instances of crime and violence do not just affect the indigenous community. North American and European immigrant residents of Cotacachi have had their houses broken into or have been robbed on the street, thus proving the irrelevance and ineffectiveness of walls built around their private communities. Sometimes guards hired by real estate owners are bribed to go on a break or pass information about when houses are empty to criminals. One photographer from the United States the creators of this website spoke to was mugged twice in different places in Ecuador, the first time after being drugged and the second quite violently. The second instance took place during a supposedly “safe” tour given by an American real estate developer looking to sell property to prospective immigrants and retirees; the tour included Cotacachi and the surrounding area.

This last point highlights how misrepresentations of safety can go both ways. Articles written by people looking to make money off of real estate tours for foreigners in Ecuador exaggerate the lack of safety present in Ecuadorian public transportation, including the buses and taxis of Cotacachi. These same articles set the stage for the assertion that only through the seller’s tour can visitors to Ecuador remain safe, but cases like the one mentioned above prove this to be false.

It is true that there is a lot of danger in Ecuador, as there is in any third-world country. After her experiences, the American photographer carries mace, a whistle, a jackknife, and cash only when hidden around her body, encouraging others to do the same. Despite what many other sources of information say, it is dangerous to go out alone late at night in and around Cotacachi, especially for women. Precautions must be taken when traveling around Ecuador or staying in any unfamiliar place. Information like this is not provided on the web sites of those looking to sell land or tours, and often their clients come to Ecuador and Cotacachi completely unprepared.

[i] Vega C., Luis Marina. “Innovative Intersector Practices for Health and Equality: The Case of Cotacachi, Ecuador.” August 2007: 1-5. Web.

[ii] “Cotacachi en Datos y Cifras.” Asamblea de Unidad Cantonal de Cotacachi. 2010. Web.

[iii] Figures from actual contracts with U.S. real estate venders