Last night I read My Car in Managua (1991), a book by an American sympathizer of the FSLN--popularly known as the Sandinistas--who worked for an aid mission in 1980s Managua. He paints a very frank picture of how the post-revolutionary FSLN completely messed up the national economy with failed socialist policies, a lack of work incentives, and a hyperinflation that impoverished everyone and drove the most skilled and talented people to other countries.
Today it's clear that in the 20 years since the opposition came to power by election, the economy has roared back to life with the cordoba--Nicaragua's currency--stabilizing at 20 or 21 per dollar, and there are signs of a dynamic economic life everywhere in towns and cities such as Leon and Granada.
Even with the FSLN having returned to power in the past decade and with controversial, albeit popular, president and former commandante Daniel Ortega up for reelection in 2012, this economic activity appears to continue at a healthy pace.
Contrast this to the situation in El Salvador where there appears to be plenty of economic activity but perhaps not of the sort that can grow the economy over the long term. Acording to my trusty Lonely Planet guide, a big chunk of El Salvador's GDP comes from remittances sent from abroad, principally the USA, and of that amount it's estimated that up to 80% is spent on consumption--basically for paying bills and buying groceries. The LP writer speculates that by such dependence upon friends and family working abroad for their daily living expenses, Salvadoreans have created a sort of "welfare" economy that cannot grow over time.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Friday, June 11, 2010
Wednesday, June 2, 2010
The Oddness of Seeing Dollar Prices from the 1970s
I like to travel for the new people & places you can meet & discover. And I like to travel in the tropics for the weather & the food--both of which generally agree with me.
But I have to admit that I love traveling in the developing world because the lower costs also very much agree with me. Whether you get 33 baht, 10 pesos, or 8 quetzales for the greenback, those lower costs don´t quite compute like they do in El Salvador, which ditched its own currency in 2001 and adopted the dollar. Nevertheless, it´s truly odd to see prices in dollars & cents that I haven´t seen since I was 12 or 15, or even 20 years old.
How about pastries for 15 to 55 cents? Or an ordinary cup of coffee for 20-60 cents? Bus fares for between 35-75 cents, or a dollar at most. A can of Coke in the supermarket for 30-35 cents. A sandwich for two dollars, breakfast for $3.00. Fresh OJ for 50 cents. A delicious latte for $1.50 or $2.00. Aguardiente (the local firewater) for $2.35 in the supermarket. A short taxi trip for $2.00-5.00, a long taxi trip for $10-15. . .the list goes on.
I have high speed internet for 50 cents an hour! That´s a far cry from the $13 per hour I saw offered in an American airport.
Some prices are more "normal" for me, I guess. Hotels, for example, run the full spectrum of price points. I try to average $20 per night for two star rooms with TV & private bath, and I mostly succeed, but sometimes you have to pay $40-50 for something that´s not much better than Motel 6 at home. On the other hand, sometimes you pay that much for something really nice.
And gasoline, sold by the gallon in Central America, is usually the same or more expensive than in the U.S. Here in El Salvador it´s $3.30-3.50 a gallon.
But ultimately what can´t be beat is the fact that these places--where most of the ordinary people you meet are poorer than the average Westerner--often have some of the most natural beauty in the world. It´s a cliche, I know, because of a famous credit card commercial, but that´s fairly priceless. . .
But I have to admit that I love traveling in the developing world because the lower costs also very much agree with me. Whether you get 33 baht, 10 pesos, or 8 quetzales for the greenback, those lower costs don´t quite compute like they do in El Salvador, which ditched its own currency in 2001 and adopted the dollar. Nevertheless, it´s truly odd to see prices in dollars & cents that I haven´t seen since I was 12 or 15, or even 20 years old.
How about pastries for 15 to 55 cents? Or an ordinary cup of coffee for 20-60 cents? Bus fares for between 35-75 cents, or a dollar at most. A can of Coke in the supermarket for 30-35 cents. A sandwich for two dollars, breakfast for $3.00. Fresh OJ for 50 cents. A delicious latte for $1.50 or $2.00. Aguardiente (the local firewater) for $2.35 in the supermarket. A short taxi trip for $2.00-5.00, a long taxi trip for $10-15. . .the list goes on.
I have high speed internet for 50 cents an hour! That´s a far cry from the $13 per hour I saw offered in an American airport.
Some prices are more "normal" for me, I guess. Hotels, for example, run the full spectrum of price points. I try to average $20 per night for two star rooms with TV & private bath, and I mostly succeed, but sometimes you have to pay $40-50 for something that´s not much better than Motel 6 at home. On the other hand, sometimes you pay that much for something really nice.
And gasoline, sold by the gallon in Central America, is usually the same or more expensive than in the U.S. Here in El Salvador it´s $3.30-3.50 a gallon.
But ultimately what can´t be beat is the fact that these places--where most of the ordinary people you meet are poorer than the average Westerner--often have some of the most natural beauty in the world. It´s a cliche, I know, because of a famous credit card commercial, but that´s fairly priceless. . .
Monday, May 31, 2010
Ahuachapan, El Salvador (Day 8)
The news was fairly grim today in Guatemala as flooding, mudslides & roadside avalanches were reported all over the country this past weekend. Although my Spanish is extremely lame I was able to catch the gist of things on the TV news and so discovered that damage wasn`t limited to the poor village of Los Esclavos but was even worse in areas near Lake Atitlan. I am told that up to 80 people were killed nationwide but I haven`t confirmed that from news sources.
This morning I caught a ride south toward El Salvador with some water engineers who were on their way to a town about halfway to the border on business. The older of the two spoke some English and he was the one who told me of the fatalities. I don`t usually hitchhike in Latin America but I have experience at it in Europe and Southeast Asia. These guys were leaving at the same time I was from the hotel. Hitching can be a good way to get around if you`re friendly but cautious.
The Guatemala-El Salvador frontier is one of the easier ones in the region because by treaty the Guatemala 90 immigration stamp is also good for El Salvador, Honduras & Nicaragua. A couple of short bus rides late this morning and I was quickly over the border and at my destination, Ahuachapan. The cheap hotel I was looking for has gone out of business--oh well! But I found another place, just a little more expensive, that will do just fine.
El Salvador has dollarized its economy--greenbacks are the legal tender here which is good since I have some cash dollars and am uncertain still about my ability to get cash from my account at home. One of my first chores here today is to check the ATMs.
This morning I caught a ride south toward El Salvador with some water engineers who were on their way to a town about halfway to the border on business. The older of the two spoke some English and he was the one who told me of the fatalities. I don`t usually hitchhike in Latin America but I have experience at it in Europe and Southeast Asia. These guys were leaving at the same time I was from the hotel. Hitching can be a good way to get around if you`re friendly but cautious.
The Guatemala-El Salvador frontier is one of the easier ones in the region because by treaty the Guatemala 90 immigration stamp is also good for El Salvador, Honduras & Nicaragua. A couple of short bus rides late this morning and I was quickly over the border and at my destination, Ahuachapan. The cheap hotel I was looking for has gone out of business--oh well! But I found another place, just a little more expensive, that will do just fine.
El Salvador has dollarized its economy--greenbacks are the legal tender here which is good since I have some cash dollars and am uncertain still about my ability to get cash from my account at home. One of my first chores here today is to check the ATMs.
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