Monday, December 1, 2008

Black Friday.


 (Post actually written last Friday)

  So I read the news today from the States, and it reminded me of getting packed for Paraguay.

  A couple months back, when I was deciding what all to take with me for a year in South America, I laid out all of my clothing on the bed.  Now, I generally tell myself and others when preparing for trips that, at least when it comes to clothing, you need to lay everything out that you want to take, immediately cut the pile in half, and take only that.

  I organized what I wanted to bring with me, then cut it in half.  Now I am in Paraguay, and I realize that I should have cut it in half again, at least.

  To give a better idea of my actual closet down here, I will make a list:

8 t-shirts
5 dress shirts (for teaching)
3 pairs of pants
2 pairs of athletic shorts
some socks and underwear.

  That is obviously not an exhaustive list.  But hopefully it made you gasp at how little it was.  The point is, I should have no more than 4 t-shirts, 2 pairs of pants, and a pair of shorts.  I wear sandals basically all of the time, so bringing so many pairs of socks was a waste of luggage space.

  The reason for me suggesting the new 1/4 packing rule is that Krista and I have learned two things about the clothing reality here in Paraguay.

1) The washing machines are small, and we have to rinse things by hand, so letting a bunch of laundry pile up is not advisable.  I'll let Krista fill you in more on that process some time.

2) People just get by with less here.

  That last point brings me back to the news from the States as I was browsing the Internet today.  I had nearly forgotten that Black Friday existed.  Apparently though, CNN thought it important enough to be the headline in front of some attacks that are happening in India.  NEWS:  AMERICANS SPEND MONEY.

  People here spend money too.  The monetary system here in Paraguay is based around the Guaraní.  Currently, One US dollar equals about 5,000 Guaraní.  The net effect of this exchange rate is that it tests the math skills of any penny-pinching North American.  Everything seems REALLY expensive, even though it is usually close to the same price.  "2,300 Gs. to ride the bus?!? Outrageous!"

50,000 Gs. = about $10

 The economy of Paraguay is based largely on the sale of agricultural products and the exporting of natural resources.  It actually happens to be the world's largest exporter of hydro-electric power, thanks to the massive Itaipu dam which you can see in the picture here.  Also, the powers that know tell me that Paraguay produces a decent amount of cow-related products for its relative land area.

  The problem with an agriculture based economy, as some of you budding Adam Smiths might know, is that your country's market will depend a lot on world food prices.  Right now, prices are high, and Paraguay is doing well, but a stable guarantee, it is not. 

  All this might be theoretical and boring unlesss we stop to compare some numbers between Paraguay and the US.  

  However, the average Paraguayan, according to a 2007 estimate by the CIA World Factbook, makes roughly $4,000 dollars a year.  Think about that for a second.  $4,000 dollars a year means about $350 a month, or $90 a week, $13 a day. (Compare this with the $45,800 annually earned by your average neighbor in the States.)  Poverty, according to one count, affects 40% of the population.

  The difference between our North American economic reality and the reality here comes up a lot in the simple stuff.  I've had two Paraguayan friends ask about fast food prices and reply: "$5 for a hamburger and fries at McDonald's?  For 25.000 Guaranies (the same price after exchange) I can buy the same thing for four friends and I here."         

  It is not as if everyone down here is struggling just to make ends meet.  Truth be told, it is cheaper to live down here, in some respects.  And there are even rich people.  Really rich people.  We'll deal with that fact in another post.  But in general, like I said, people just get by with less.

PS-

  The joke that has been repeated by several Paraguayans down here to me goes like this:  "What does it mean that the U.S. is in an economic crisis? Answer: Each family can only have two cars instead of four.  What does it mean if Paraguay is in an economic crisis?  People have to stop taking the bus and walk everywhere."  I suspect the last part of the "joke" has some truth to it.  The first part probably does too, at least in terms of stereotypes.

Whew, that was long.

1 comment:

Kelsey said...

Way to go Craig, your post is so informative... it puts mine to shame! :)