Meet “la tienda”, the shop. This is the best stocked shop in the village. From tomatoes, onions, potatoes and a few jalapeno peppers to dried goods, cans, and basic household items, you can find many things without having to go to town. Your diet will be really basic, no fish, no meat, at best one kind of fruit when it is in season, and half a dozen vegetables. Products are between 10 and 20% more expensive than 6 miles away, up to 50% more than 20 miles away. The worst markup is on small portions. If you can’t afford a carton of 30 eggs, you can buy one egg, for 72% more. People buy small bags of flour, oil and even Maggi seasoning cubes by the unit at usury prices. But they can’t afford to buy a full 5lb bag of flour, so every day they come to the shop and buy enough for one day. Tomorrow, they will see. Those tiny bags hanging on the upper left corner are the smallest bags of chips and nachos ever, they cost only $0.25 so people can afford them, and if you compare the cost per pound with a family bag from Walmart, this is the biggest markup ever.
We pay our workers weekly, because they couldn’t make it through the first month without a paycheck, and if they were able to, they couldn’t make the next paycheck last through the month. They often resort to payday loans, at up to 5% monthly APR. They buy things on credit, even a $30 blender, and end up paying twice the price in 18 months. Big shops don’t want to end that juicy business but it is really sad to see most of their hard earned money go to finance stuff they don’t really need.
Land development update
We are on fire!!! The gate is ready, and we have also brought some white earth since that picture so the entrance looks really clean and the land is firm to welcome cars. It has BF’s phone number in case people want more info. I blacked it out so don’t try to maximize the picture, I am a jealous woman haha! You can email me if you want details :). About the land, not BF.
We had the workers clean the side of the road too, sorry I couldn’t find a before picture, but the change is quite impressive, it was only weeds and now it looks all polished.
All that you see to the right was 2-3 meter high of bush and weed, they cut it all and planted some grass. With the rainy season it should be green in no time.
Look how green and lush the land is, only two month ago we burned it to the ground! Some places you have pasture knee high.
Before (around March):
That’s me overlooking the caterpillar that did the roads. At $80 an hour, rest assured I was ensuring he put in the hours! We didn’t cut more than 5 trees but we had guys with machetes cut all those plants and leave the land neat.
After (June), only the pasture has grown back and strong. We have 200 or so tropical sheep (mix between a goat and a sheep) that come daily and eat the rest of the weeds. Win-win for us and the shepherd who gets free feed.
One block away from our land, on the other side of the road, the council was building a public beach and promenade for the village. It didn’t go too well. The money was stolen ran out and what was promised to be a 4 month project has been stopped since March.
It rained a lot and they didn’t protect the beach-to-be so the water destroyed their work.
And one of the trucks lost its brakes and destroyed another piece or wall before ending in the water.
One day, there will be a beach, but for now, it is just a sad, empty plot. This is what happens when you give a contract to your friends who over quoted so you could get a share of the pie too and don’t deliver.
Talking about our corrupt friends, it looks like we have been reported by our crooked politician neighbor anonymously for deforestation. A government forestry truck stopped by the land last week, they had BF’s name and details (when the cadaster after 3 months of procedure still hasn’t been able to change the owner’s name to us!) and came very angry that we were destroying the ecosystem. BF told them even more angrily that this had been a cattle farm for years, and the pasture was proof of it, you don’t grow pasture that easily when you just uprooted trees.
We have not done anything wrong but thanks to that resentful, bitter little man, we can be delayed for quite some time until we prove we didn’t kill any trees. They said we needed to get a permit before building a wall around the property, and a permit for our road. BF answered we were just rebuilding the old road that got buried in pasture and setting the limits of our property, the government gorillas walked away but I bet we’ll see them soon with more surprises. Strange that we have the nicest wall and land in the village (according to the villagers and our workers) yet they persist in trying to find something to stop us.
It could all go away by offering the guy, and/or the mayor a few plots “for their help and constant support” but all they will get from me is ignorance, maybe a middle finger if they insist. They can try and make our lives impossible, I will do what they ask, apply for the fake permits no one has had to apply for in the history of the village, and let them delay the project. They won’t see the first glimpse of a bribe.
So far, BF is on board with the middle finger project, which is surprising as he is usually one to get it over with and choose time over money. He has always paid fines even when he was arrested for no reason and the cop openly said “come on, just give me money to go get coffee, it will be cheaper than the fine” so it could end up being time consuming AND expensive. We’ll see.
This post was featured on the Money Rebound, Lifestyle Carnival, thank you!
The little store is similar to payday loan places in developed countries. It is sad that people have to pay so much for so little and never get a chance to get ahead. I wonder if they could somehow save up enough to buy twice as much at a lower cost so they could eventually build up some savings?
it is very hard to break a habit when you are given so much convenience not to. It could be an idea to start a fair priced shop or help them pool money to buy in bulk but we would get a lot of hate from the shops for that.
Payday loan places are terrible! I absolutely despise them. They’re like vultures. Once you get into the cycle it’s very difficult to get out and it ends up being a huge waste of money. The rates/fees they charge are obscene.
it is very hard to break the cycle, most people won’t tighten their belts for a month to revert it because it is so convenient not to have to.
Thats sucks with people getting over on others knowing that they have no other choice. Karma is a b****. They’ll get something good in return. Go job on that entrance. Cant wait until you guys are ready to start selling plots and building homes. Would love to see what I finish plot with a home would look like. I like the middle finger project as well.
haha hopefully the middle finger project works!
Beautiful pics!
That’s sad that they manage their money that way…but I suppose that it’s always been that way and they have never learned to change. Why do you think that they can’t manage their money well, Pauline?
Women are not in control 🙂 seriously, when your husband has drunk the paycheck on the same day, there is little you can do to feed your kids >> trying to help a tiny bit empowering women with my education scholarships.
Also, just one generation ago, they were really self sufficient, raising chickens and growing corn, but now the shops offer pop, beer, salty snacks and they got hooked. When electricity arrived, people came to sell them TVs and blenders with “easy payment plans”. They got used to credit before saving. The only savings some have are in animals, if you have a cow it is worth about $500 but again in an emergency many will sell the cow without waiting until it has a calf as a replacement.
Its very sad to hear about the finance status of those people. Payday loans are definitely a big hole in your pocket and it is very difficult to get out of it. Appreciate your courage to get things done at Gautemala and its very nice to hear that your BF has been with you in all odd times.
it is a vicious circle indeed, I hope they realize one day the real interest rate on those purchases.
Wow, PayDay loans are everywhere, aren’t they? It’s sad to see crazy politics continue to delay what you want to do with the land. It just goes to show you that some really don’t care about the good of those around them, but only for their own good. Beautiful pictures btw!
thank you! Yes, they care about their own profit, while the community could develop and bring them more profit but they see it short term.
Are there any entrepreneurs that drive to the near by city on pay day and buy a lot of groceries and undercut the overpriced shops prices?
Don’t people sell eggs and vegetables from their homes at a lower price?
Our handyman killed a pig last weekend and sold the meat around at 25% under butcher price. BF gave him the money for the pig then got back the money in meat and left him the profit (about 3 times what he makes at his day job) but otherwise he wouldn’t have had the initiative to go buy a pig and sell it. They don’t sell eggs either because everyone has chickens. There is a guy on a pickup who comes once a week and sells vegetable, I haven’t bought from him so don’t know his price, your idea would be interesting although I am not sure the shopkeepers would be too happy.
Good for you for standing your ground! It’s ridiculous that they are still trying to slow you down! Economic development sounds like a HUGE win for the town you are in, but it sounds like they can’t get over the corruption culture and just expect people to play along.
If you only see your own benefit you don’t see that the benefit of the community would be much greater, sadly that’s how they rule.
It’s tragic how bad corruption is in the developing world. I know corruption exists in the US but we also have a strong judicial system that doesn’t take corruption lightly.
I’m glad you all are sticking up for yourselves. Do you have to worry about any sort of physical danger from all these people or are they just blowhards?
No, they bark but they don’t bite, they’re just resentful and the little power they have goes up to their head too fast.
It’s the wild wild west out there! 🙂 I see you running a personal finance school in the future so people will be more educated there about how they are getting cheated, and maybe someday that will overthrow all the corrupt people there? BTW do you speak Spanish, or do most people speak English?
Yes it’s pretty wild… I speak Spanish fluently which helps for not being THAT ripped off but you still have to watch your back. Very few people speak English, a few tour guides, some expats. In the capital city most kids go to bilingual schools but here they barely learn a few words.
Sorry to hear about the trouble you’re running into. I really hope everything get resolve soon. It’s tough to go against the flow in a foreign setting. Good luck!
Thank you Joe, I guess life would be boring otherwise!
Love the progress you guys are making, even despite all the road blocks from the city officials. Just curious, does your BF have a figure in mind as to how much money it would take for your delays to go away?
Interesting question. I have no idea, we talked about how giving a few plots to the mayor would help, that would cost under $3,000 probably, just considering what we paid for the plots, but if you consider how much the plots will be worth in the future when there is a road, a well, electricity… we would be missing out on 3 to 5 times that. It could all go away hiring out all the useless studies they require too, that would cost about $5K cash but not go to their pocket so i don’t know how they win in this case.
The pics are beautiful, as always. Sorry to hear you’re still running into trouble with your local officials. It’s really sad how rampant corruption and bribery run down there. I can’t blame you for not wanting to give in. I wouldn’t either!
yes, sadly we are just a drop in the ocean. Our road should be asphalted by now, the money has disappeared twice, that is far from the few thousands we are talking about with my land…
It’s sad to hear how money is wasted. It would be nice if you could help by paying your workers in less frequently but in bigger amounts, but as you say it sounds like they just aren’t ready for that. It’s too bad. In the meantime, good luck dealing with the neverending crusade of crooked politicians. At what point do you start to wonder whether it’s all worth it? I’m not trying to say it isn’t, just curious about your thought process.
I have time and don’t need the money, so at the moment it is still a fun adventure. I think if I were in a hurry to sell things may be different. If everything turns out fine, the profits can be huge so it’s worth the wait. If everything falls apart, we should be able to resell for what we bought, and paying bribes wouldn’t have helped.
Your villagers remind me so much of some of the people I work with on the reservation. It’s really sad when some simple planning and delaying gratification could do so much, but it’s completely ignored. It is so beautiful. I think you have the right attitude and will prevail in the end.
Pauline! What a fine position to be in – to have time and not need the money. You, Pauline, are the trapdoor spider. Dangerous and ready for opportunity! I certainly would not be messing with you and neither should the council or whoever the corrupt elements may be. May these games come to a close quickly so you and BF can get on with a promising and fantastic project!
Wow, seems like you lose the shirt off your back because they will rip into you like hounds. They are a right dodgy bunch of bar stewards. The gate looks awesome and ya the land built up fast in the 2 months after the clearing wow. I love the beginning how you share a bit about the store and pricing. Even here though if you buy singles or smaller versions you will pay . They take you to the cleaners. Thanks for the update jealous girlfriend lol… too funny. Have a good one mate.
Wow, what beautiful scenery around your land! It looks so relaxing and peaceful. I like the idea of the middle finger project. Good for you for not giving into their stupid games. I hate bribery and would never succumb to that, either. It is sad that everyone is trying to stop you from getting this development finished when it will benefit so many people.
That’s surprising but thanks for providing such detailed pictures, great article! I wouldn’t fall for the bribery either but sometimes it can be difficult to deal with.
Ah the most packaged items are the ‘cheapest’ to buy, but not in the truest sense. Such a shame. The frustrations continue, but the photos look great! Keep it up!
thank you Sarah!
Once you start with the bribes, then everyone starts to hear that you’re bribeable and pretty soon, you can’t get anything done without a little baksheesh. Stick with the middle finger project. It’ll make life more difficult for this project, but the next one will be a little easier, as the officials realize that you’re not corrupt.
The stories of your workers reminds me of one that a friend of mine in Botswana told me when we stayed with her. The unofficial AIDS rate in Botswana was, at the time, hovering around 50%, with a life expectancy of around 30. So, people in their 20s would buy exorbitantly expensive cars, with car loans between 50% and 75% of their take-home pay, and finance them for 10 years. They figured they’d be dead by the time the note came due, so the banks could just take the cars(1). It was strange to see so many nice cars in Gaborone *not* being driven by diplomats or government officials.
How do you get protein given the market situation? The Couch–>5K program is tough to do without enough protein.
(1)Not taught in Estate Planning 101.
wow that is a crazy story. I know if you start bribing there is no way back but they sure don’t make things easy.
I graduated from C25K 🙂 been doing 5 to 10K now, I am at 4x15min with 1min break, two more weeks to finish 10K!
Regarding proteins the nearest butcher is 6 miles away, I buy there and freeze for a few weeks, or we buy pig and chickens from the village when they kill and animal they offer you to buy part of it, the workers often go fishing and bring some fish over too, plus the eggs from my chickens, lentils and beans it’s quite diversified.
It’s kind of telling and sad how these tiendas rip off their customers.. but then again, if it’s their only source of “treats” I can see why it’s doing so well.
Still. Makes me sad.