January 26, 2010
Panama City, Panama
I’ve been on the ground in Panama for a week, and thus far, the majority of my time has been spent investigating the sustainable community concept that I wrote about several weeks ago.
To refresh your memory, the idea is to develop a small, cost-effective, subscribers-only expatriate community in Panama that focuses on sustainability over luxury. Frankly, other developers laugh when I discuss the concept and think I’m crazy for planning on crop fields instead of a golf course… as if breaking from the norm is somehow akin to predicting the apocalypse.
To be clear, I am not preparing for some “2012″, end-of-the-earth scenario. I do believe, however, that it makes good sense to invest in property with agricultural yield that can double as an escape hatch if the world experiences deep, short-term economic calamity.
Overall, I think Panama makes sense as a location for this community for several reasons:
1) Residency is very easy to obtain here, and an investment in this sort of development would likely qualify.
2) “Freedom” is not a lost concept in Panama; most people are left alone to live their life free of interference from the government. As discussed last week, firearm ownership is not a problem.
3) The weather is warm and predictable, and there are few natural disasters to speak of.
4) It is close to North America with multiple airline routes (including 2 to Europe) for easy accessibility.
The initial concept that I am considering is a community with a small residential section, roughly 50-70 home sites of about 1,000 square meters (1/4 acre) each. The preponderance of the property would be set aside for crop production, vegetable patches, fruit trees, and livestock cultivation.
I also believe that water self-sufficiency is of critical importance; a sustainable community needs to be able to feed itself and provide its own water without relying on the local utility. As such, the land should have plentiful, clean groundwater supplies.
Naturally, a self-sufficient community should also have at least a back-up source of electricity that does not rely on the local utility. It may be feasible for the power company to provide a primary source of power, but in the event that the grid becomes too expensive, overburdened, rationed, or controlled by the government, the community will have its own source of power to rely on.
Location, as always, is crucial. I envision the community being near enough to Panama City that its residents have access to commerce, entertainment, and transportation infrastructure… but far enough way that the community is peaceful and secluded.
Security is also an issue to consider for a self-sufficient community. In my opinion, this goes far beyond a remote controlled entrance gate, though I’m honestly still thinking through what this might look like, so there will definitely be more to follow.
Remember, the central idea of the community is to bring together like-minded people who want to maximize their freedom and minimize reliance on the grid for staples like food, water, power, and security. Consequently, I would really appreciate your feedback. If you find yourself legitimately interested in this concept, please fill out a short survey so I can better refine the design.
{ 20 comments… read them below or add one }
I like the concept in general. The main issue for me is the location. I agree with all the positive comments made by Simon regarding Panama. I am concerned however about the strategic importance of the canal in the case of a world wide conflict. It seems to me that Panama could be an area where powerful countries would fight to keep access to the canal. I am wondering how much of a problem this could generate for the area in the even of an army occupation. Other than that, I think the focus is right on target and the concept may be quite useful.
Very interested in a project. If the price and timeline is reasonable I will definitely take a very serious look. Also can possibility of financing be explored ?
Hi Simon,
I am an expat living in Panama and am in the beginning stages of planning a similar concept (though much smaller) on the shores of Lago Gatun. The property is about an hour and a quarter from the city and is nothing if not peaceful. Fruit trees are plentiful as are the fish in the lake. I envision community gardens, dockage, pool and a recreation area. The houses are designed very ecofriendly and need neither heating (obviously) or cooling. We are investigating both solar and wind and I am just beginning communications with a Canadian who has developed a smart grid concept for small projects. I will be following your concept and would love to talk with you if you have the time while in Panama.
Doug Casey, et alia, have a lock on the high-end housing compound for the wealthy. Somebody (you, Simon?) needs to be thinking in terms of a community, not a housing compound. Simplicity, sustainability, self-sufficiency, affordability, resource maximization, and ability to earn/make a living are components to consider in creating a real community.
I filled out the survey, but wanted to enhance my point about a real community, not just another housing compound for the too-affluent-to-work crowd. Let’s think outside the box of recreating US upmarket suburban housing. I lived in one of those in Indonesia. It takes a bit more to create a real community that is sustainable, economically vibrant, and offers some real opportunities, not just a bigger McMansion-filled “housing project.”
I’d be proud to help create such a new idea in communities for the 21st century and beyond.
I read with much interest Simon’s writings and couldn’t agree more. I think this is a great concept although I’m not in the tax bracket to be able to jump ship tomorrow. Does having knowledge and skills regarding infrastructure building and maintenance have any appeal?
I think Ecuador might be more receptive, cheaper for near beachfront, and overall cost of living, easier residency too.
Have the community completely encompass a large lake for securing the water source and use as a food source. The headwaters of a river that you had rights too would do the same, but harder to secure the rights to.
Hi Simon,
We were in Panama last week. We looked at property while there, high rise apartamentos in the downtown area. We noticed that none of them had sprinkler systems installed. One of the real estate ladies told us that they don’t use them there as they tend to go off when you are cooking. We also asked about building codes, the response back was codes? You commented that the safety deposit box company didn’t have proper facilities in case of fire. Do they have fire departments there?
One of our biggest concerns with Panama is that they also use the dollar and if it tanks in the US it will tank there as well. What are your thoughts on this?
JT
Great question regarding fires JT.
As far as protecting against the dollar tanking, one strategy might be to diversify your USD assets into a basket of foreign currencies (or own non-USD-denominated bonds or own non-US-based stocks) and to diversify where you hold those assets (i.e. in brokerage accounts & bank accounts in countries outside Panama with strong banking laws). Then only wire in enough money to cover a few months of expenditures into your Panama bank account. Also hold physical gold in safety boxes in Panama and/or nearby countries. As for specific recommendations, we may need to take Simon out to lunch ;o)
Sounds like a plan Simon. I think this is more of a lifestyle community where the goal of the community is sustained above all else. If it’s reasonable and possibly can be financed I am in!
Thank you for all your work on this project, Simon, and thanks specifically for adding dates to your recent articles. It’s a great help to know how long ago a specific article was posted for purposes of assessing it’s continuing applicability.
I completed your excellent survey and find the whole idea exceedingly appealing. Based on the prices presented in your survey, I believe it would be affordable for me and my roommate.
I would like to have a private conversation with you regarding one aspect of the plan. Is it possible to schedule a telephone conversation? Perhaps you could email me directly in that regard.
Sincerely,
Debra Buchanan
I want to echo the sentiment that you need to consider making a truly sustainable community, as noted by Jai. I took the survey as well and have several observations, backed by my own sustainable development efforts over two decades. Sustainable development is hard work and more complex than novices realize. But there is a good-sized movement of people doing this as best they can in many locations now.
A walled-in community with 1/4 acre plots, manicured lawns, central agricultural facilities, central “alternative energy”, and armed guards is really just a low security prison for wealthy people who can get outside as trustys. It would be a target if things go bad in the surrounding areas. You need to decentralize some of the critical facilities in the development, or you make the development very vulnerable, just like the centralized grid is today. To get anywhere near sustainability one needs to attract people who have practical skills, knowledge, and experience….not just rich folks who only know how to write, drink fine wine, and play polo. These people without practical skills and survival knowledge are a liability if things ever get really bad.
The developer needs to plan before starting development and even selecting the proprerty, with the help of people who have in-depth practical knowledge of sustainability, including: literature, efforts underway in many places, issues in development, experience implementing it, and related matters like permaculture. Tropical agricultural knowledge would be quite useful, but centralized agriculture is very limited in usefullness if you are looking for a sustainable situation. Several small farms in the development would be useful to have, and as many gardens, orchards, and permaculture arrangements as you can reasonably get. You need people like those with military special ops training for security planning before starting the development. Many of the residents with such knowledge and skills would never consider less than about a 5 acre plot. Some would want more land than that. And the people with sustainability knowledge will want to each build their own decentralized facilities for water, food, energy, etc., as self-reliance is their credo.
You DO want some central facilities, but these are vulnerable and make others dependent. You need to do BOTH, not only to optimize self-sufficiency, but also to attract people with needed skills AND some who also happen to have money. They are out there.
Dusty has picked up on a lot of my thinking – some of which was in my survey, not in my post here. Central farm to share? Maybe someone in the community wants to go co-op, but free societies or communities would go more for larger plots where people can choose how to use their land, what to grow, then sell or barter.
People need to be able to find jobs or create jobs/businesses. Most people cannot live off what they’ve already got, and in economic collapse, most of those could well lose what they’ve got. Communities are created and grow organically, not planned and confined within the walls. Even Medieval walled cities/towns had to have room outside those walls.
Quick question…. As a world traveler, how’s the cuisine in Panama? And is there a variety of restaurants in Panama City?
The problem as I see it with trying to get a Panamanian passport is having to be proficient in Spanish.
Do you have any thoughts regarding india?
I like your concept. I am not interested in a walled off compound as a home. Your ideas on sustainability are valuable but had to pull off. You might find some useful ideas from an organic farming development in Panama that I have followed for several years now. They have experienced all the problems you describe (real title to the land, water rights, etc) but have persevered and have come to some success. Their idea of success is in a sustainable farming community that has an extensive teaching component.
Have you ever heard of people using medical evacuation insurance for helicopter transport to hospitals from remote places? Costs This might make a more remote location seem less risky to some potential buyers.
I like the ideas being proposed here by Simon and the comments above. It’s hard for those with no Latin American travel experience to know what type of security in a suburban/remote jungle/remote mountain area would be appropriate. I guess it depends on what the community’s worst case scenarios are for the future.
My thoughts are on the security aspect and government or policing.
First: You mention security in your briefing of your sustainable community. The thoughts of a gated community fenced in, in essence isolated from the outside world unless they choose to leave the area. Perhaps it is caused by the aptitude of humans to apply connotations to words or thoughts based on past usage, but this picture in my mind is reminiscent to Jonestown.
Now, obviously we here, and people who would live there, and you are not like those people who lived in Jonestown. We are not being manipulated by someone with the nefarious intentions. Just food for thought, but it brings me to my next point.
Second: Would you establish the community in the fashion of a city, where the community would have it’s own by-laws and someone in the fashion of a sheriff? Perhaps you would instead choose to be under the jurisdiction of a near town, and thus police from there? In the case of a incident of some sort, who would be the one to make the resolution, if it cannot be resolved by the parties involved?
Just some food for thought and curiosities.
I like European apartments as an interesting case study, because they have the physical security of a gated community — the ones that are 1 or 1/2 city block long, with a gated driveway tunnel through the outer wall that is always closed after “curfew”, that leads into the middle courtyard that is usually dedicated to cars, but could be dedicated to anything else. And the formidable outer apartment walls do not stand out like a compound wall, even though they are 30′ to 50′ tall, and mortar-proof, which you can see in person in Berlin, because the buildings that survived a good shelling are still standing on the street corner, as a memory. And for that apartment plan, the Germans have real security, and those apartments also have steel outer doors opened by a common house key, which leads to an indoor foyer and staircase that leads to mailboxes and inner apartments that each have their own 2nd key. Pretty good security if you ask me, without much money wasted on it.
I also like fortresses, if it means nobody has to hire a sheriff or cop or NSA/CIA/FBI/ATF/ABCDEFG… in order to snoop into everybody’s business in order to dispense cruel injustice. The residents can instead agree to obey a half-dozen inflexible laws, or “2 Simplified Laws According to Doug Casey”, or else get exiled after a citizens arrest and citizens trial. But, most people would rather just pay all the taxes. The inflexible laws could be supplemented with flexible rules, which are open to discussion, mediation, adaptation, and all the rest.
Every German I have ever met was totally offended by the thought of any sort of wall being put up (even though as I have just said, they already live in well-disguised walls just as good as we are talking about). Most people seem to prefer the vanity of a traditional show house, along with the rape, theft, murder, and all the rest that people seem to put up with.
The midieval forts were a practical response to the times (fall of Rome), and I expect they make the same sense now and in the future, as people are waking up to the fundamental requirements for a peaceable life, without all the obscurities of the window dressings that the credit expansions and bubbles and misallocations of capital produced. For example, Tempe, AZ announced last week that it is laying off 1/3 of the police force, which is only the opening act, and people are going to get a reminder that in spite of all the taxes, they are on their own.