TravelStream™ news feed for member midlifecrisis on TravelPod's free travel blogs service http://www.travelpod.com/syndication/rss/midlifecrisis en-us Copyright ©2009 TravelPod.com Sun, 16 Jul 2006 18:24:32 -0400 http://www.travelpod.com http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151791320/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151791320/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151791320/tpod.html Sun, 16 Jul 2006 18:24:32 -0400 A Pan American Adventure

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Oaxaca, Mexico

Over the years I have visited Mexico several times. My experience has always been either sleepy desert/fishing villages or giant gringo resorts with tequila-shooting fratboys. (Once or twice, I may have even attempted to imitate a tequila-shooting fratboy.) In either case, Mexico appeared underdeveloped and economically struggling. After spending 6 months in Latin America, before getting to Mexico, I came away with a much more positive impression. It's all about perspective. Relative to California, Mexico seems to be struggling, but compared to Honduras, Mexico is the epitome of civilization. More importantly, they have good beer. Since we left Chile, the beer has made me long for a Budweiser. (Have you ever seen an imported South American beer? There is a reason for this.)

Getting into Mexico turned out to be our worst border crossing. Our first pass was fairly uneventful, but we hit a roadblock at 70 miles out of town. The cop asked for a document that we didn't have and made us return to the border to get it. The document office closed at 3PM and we arrived back at the border at 2:55. The attending bureaucrat told me to come back tomorrow. I had a momentary vision of trying to find some flophouse in this dusty border town and redoubled my pleading. Evidently this woman has a soft spot for whiny gringos as she agreed to stay late to process my documents.

Speaking of government institutions, the entire oil industry in Mexico is owned by a single company. Pemex is run by an unholy alliance of government bureaucrats, trade unions and corrupt managers. The business decisions can be quite amusing. For example, one modest sized city had a total of three gas stations that all were located within 200 meters at one edge of town. I can only assume that the manager decided it would be easier to monitor 3 stations if they were contiguous. Brilliant.

Petty corruption is rife at Pemex stations. Frequently, a young relative of the manager stands outside of the door to the restrooms and demands a small payment to enter. (In his defense, he does provide 'vital' services such as letting patrons know if the loo is already occupied. They clearly don't spend much time on cleaning.) At one station, the gas pump had been altered and we were charged enough to fill my tank twice. Since there was a number of shady characters laying about, I just paid and got back in the car.

Oaxaca is a beautiful city with art galleries, wonderful restaurants that serve high-end Mexican food and an interesting museum. Fortunately, for this heat-challenged northerner, the town is at 5000 feet and actually relatively temperate. Usually, I would strongly recommend a visit.

Unfortunately, the local teachers union is upset with their renumeration and called a strike in late May. Since the school year was almost over, the teachers decided to occupy about 10 square blocks of central Oaxaca, including the hotel we were hoping to patronize. The streets were barricaded with pieces of debris that reminded of the Paris Commune. The local governor seemed to have the same idea as he ordered the local gendarmes to storm the fortifications with tear gas. This seems to have backfired as the protesters claimed that there were a couple of deaths from police brutality. (The rank and file protesters did not seem troubled by the fact that their leaders were never able to produce the victims' bodies or even their names.) Many of the protesters are calling for a violent ouster of the governor. We were also surprised to see that the local communist party was there aggressively selling the virtues of Marxism and Leninism. (I assume it is easier to ignore history if you have never read it.)

Judging by the stridency of the protesters, the political dialogue is far more fractured in Mexico than it is in the USA. While many of us may have strong feelings about our current president (or former one, for that matter) few of us would advocate the sort of violent solutions that were being casually discussed by the protesters. This does not bode well for the upcoming election.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151620920/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151620920/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151620920/tpod.html Sat, 08 Jul 2006 18:53:41 -0400 A Pan American Adventure

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Belize City, Belize

After leaving Tikal, the best way to Mexico was driving through Belize. At first, this seemed like a lucky break as Belize is known worldwide as a luxurious beach and diving destination. Unfortunately, it turns out that all of the beaches lay on small islands offshore and we would not be able to drive the Jeep. Onshore is scruffy jungle and mosquito-breeding marsh. Given the crime and our lack of time, we spent a quick night in Belize City and headed for our penultimate border crossing.

When we crossed into Belize, the female customs agent started asking me questions in broken english. I took this as a very polite geture on her part and attempted to return the favor by replying in even more broken spanish. In a bald attempt at ass-kissing I then complemented her on her excellent english. She gave me a funny look and declared that Belize was an english speaking country. Who knew? I prepared myself for a full recal exam by a cross customs agent, but she waved us through with a bit of a huff.

It turns out that belize is a former British colony and most of the residents speak with a Jamaican accent. We had excellent jerk chicken, retired early and prepared for Mexico.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151523540/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151523540/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151523540/tpod.html Sat, 08 Jul 2006 18:41:37 -0400 A Pan American Adventure

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Antigua, Guatemala

We had a wonderful time in Guatemala and it seems like the country is on the right track. I am amazed at the progress the entire region is making. Only 15 years ago each country in Central America north of Costa Rica was either engaged in a civil war or subject to a violent, repressive regime. Although politics remains heated, there seems to be a consensus that the countries' directions should be decided at the ballot box rather than through violence. With the possible exception of Honduras, each of the countries seems to have a strong economy and is receiving substantial foreign investment. Now that CAFTA is being implemented, the momentum should continue.

We only drove through Guatemala City, but find it hard to imagine there is any reason to visit. The main thoroughfares are packed with as many fast food joints as you would find in any city in Ohio. (This bothers us far less than other tourists. After a few meals of Bolivian Chicken-Foot Soup you too might long for a Big Mac, clean restrooms and toilet paper.) Despite being a large, modern metropolis, Guatemala City still lacks road signs. (This really becomes a problem when you don't have a good map. Your intrepid navigators, however, made it through, twice.) I view this as another form of Latin machismo. In the USA, we think we are real men because we don't ask for directions. Latin men don't even need road signs. Take that.

We spent three nights in Antigua and recommend it as a must-see on any Central American itinerary. Antigua was the Spanish colonial capital of the region until it was abandoned in 1776 for Guatemala City because of frequent earthquakes. In the past few decades the city has been revitalized as a tourist center. The buildings are entirely vintage and all the streets remain cobblestoned. There is a large excess supply of churches and a few have been left in beautifully landscaped ruins. Our hotel was carved out of the ruins of an old monastery and was one of the most beautiful places we have stayed. Many of the walls were original and the new construction was tastefully incorporated. Each evening, the staff would light hundreds of candles that were placed throughout the facility.

I read the hotel literature and it turns out that Madeline Albright stayed there in 1998, followed in 3 months by Hillary and 3 months later, by Bill. (Several restaurants in town have 'Bill ate here' photos. The guy didn't miss many meals.) Is this how foreign policy is conducted? "I just got back from this really cool place in Guatemala. Bill and Hillary, you should check it out." "That sounds great. What should we talk to the Guatemalans about?" Do presidents ever visit Paraguay, Azerbaijan or the Congo?

Antigua is absolutely packed with art galleries, clothing boutiques and cute cafes. Not surprisingly, this seems to be a magnetic attraction for young women who decide to 'go to language school' after graduation or between years at grad school. If you are a single, 25-year old guy, this would be the dating equivalent of shooting fish in a barrel.

We visited Tikal, the Mayan ruins in the jungle of northern Guatemala. The Mayans developed an impressive civilization that petered out around 800 AD. (Cortes conquered the Aztecs. The Mayans were long gone.) Although the surrounding jungle appears to be virgin forest, it was entirely cultivated in ancient times. The ruins were impressive, but, for us, paled in comparison to Machu Picchu. On the other hand, the crowds were a lot smaller.

We are driving through Belize and then making a beeline for Oaxaca, Mexico.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151179020/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151179020/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1151179020/tpod.html Wed, 28 Jun 2006 16:16:55 -0400 A Pan American Adventure

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San Salvador, El Salvador

We moved quickly through Honduras and El Salvador (but not too quickly to form opinions.) Surprisingly, El Salvador seems to be doing much better despite the civil war that ended only 15 years ago.

Our first stop was the capital of Honduras, Tegucigalpa (quick, don't look at the computer and try to spell that.) It turns out that there is a reason, besides pronunciation, that nobody talks about Tegucigalpa. The place was easily the least appealing capital city we visited. It managed to lack both historic charm and modern conveniences. (We would have been happy to accept either.)

Our first night in town was spent with the young and beautiful of Honduras. We dined at a nice restaurant and asked our waiter for recommendations on Tegucigalpan nightlife. He told us that the best club in town was only a few blocks away. The place was classic LA or New York with burly bouncers, reserved couches, mood lighting and loud techno music. Honduras took it one step further, however, with giant video screens playing an endless loop of hardbodies in an actual local beer commercial. (We found out later that the beer company was a sponsor of the club.) Our fellow patrons were quite amusing. They each seemed to have that casual arrogance of being born rich and somehow convincing themselves that they deserved it.

Honduras seemed to have widest income differential of any country we visited. Brazil would be close, but there was an extensive middle class that buffered between the two extremes. Poor in Honduras is not as bad as poor in Brazil, but there seemed to be no in between. This implies a complete lack of social mobility. I think this country will have trouble.

We were both much more optimistic about El Salvador. It turns out that there is a large displaced population of Salvadoreans living abroad that sends money home. These annual remittances equal about 16% of GDP. Additionally, there is substantial foreign investment in San Salvador. The city has an industrious feel and momentum seems to be on their side.

I caught a few innings of a Yankees game on our hotel cable that was piped in from Nicaragua (which is a baseball, not a soccer country.) There was a political advertisement that made the Willie Horton commercial seem like brotherly love. (Or going further back, it was reminiscent of LBJ's daisy commercial against Goldwater.) Hugo Chavez, of Venezuela, is supporting Ortega, the former Sandinista. Ortega's opponent ran images of Chavez' rants interspersed with goose-stepping soldiers, riots in the streets and police brutality. I couldn't understand most of the words but I was still scared. Politics is rough in Latin America.

The driving has been long and the border crossings are quite painful. Throughout South America, the crossings were quite simple and standardized. If the lines were reasonable, we could usually get through in about 40 minutes. There were never any fees. My sense is that Central American countries are small and the bureaucrats have a bit of a Napoleon complex. Whenever we enter a country in Central America we are besieged by a half dozen young men who offer to be our 'guide' through the process. (None of the bureaucrats seem to speak a word of English.) Kia stays to guard the car with the windows rolled up to keep the hawkers at bay. At these latitudes this can be a bit toasty and by the time I return she is usually feeling like a poached egg and I spend about 50 miles in the proverbial doghouse until the air conditioning has fully worked its magic. Each country requires a unique combination of documents, fees, inspections, 'insurance' and fumigation. The guides tend to be quite necessary and I end up paying about $10 in tips for each crossing.

Next stop is Guatemala, followed by Belize, Mexico, Texas and then, finally, the USA.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150745640/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150745640/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150745640/tpod.html Wed, 21 Jun 2006 16:14:43 -0400 A Pan American Adventure

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Granada, Nicaragua

Our high hopes for Costa Rica were not met, but our low expectations for Nicaragua were easily exceeded. We only visited two places (San Juan del Sur for lunch, and Granada for two nights), but both were delightful. Nicaragua is coming back.

Nicaragua remains a very poor country. Per capita GDP is slightly below Bolivia, but momentum is definitely on Nicaragua's side. Growth has been strong for the past two years and the country is eagerly accepting foreign investment. Coldwell Banker has even opened an office to sell vacation property to gringos that want a little more serenity than is found in Costa Rica. Nicaragua has approved CAFTA and as that gets implemented, the economy should take another leap forward.

As you probably remember, the 1980's found Nicaragua embroiled in a civil war between the Soviet backed Sandinistas and the US funded Contras. As the cold war ended, the Sandinistas started to run out of steam and agreed to hold elections. Daniel Ortega, the head of the Sandinistas, probably overestimated public frustration and lost to an opposition candidate whose entire platform consisted of a pledge to end mandatory military service, and by implication, the war. Ortega has run in the subsequent 3 elections and maintains a decent base of support but is not expected to break 25% in the polls in this year's balloting. The Nicaraguans we spoke with seemed to believe that the Sandinista's (think Cuba) economic model was a dead end.

One of the several benefits of being an ally of the Soviet Union was access to their automotive technology. (The Soviets never tried to sell any cars in the US. This was unfortunate because GM might have actually been able to handle this type of foreign competition.) We had the opportunity to take a taxi ride in a vintage Lada and were able to appreciate a few of their innovations. One of these is the suspensionless car that effectively connects each pothole directly to your spine (it made the Jeep seem like riding in a Cadillac). The Soviets also came up with a unique strategy to curb speeding. If the velocity of a Lada exceeds about 40 kph (25 mph) the body starts vibrating so that it feels like riding in the inside of a giant kazoo. This is difficult to tolerate for very long. Unfortunately, Soviet engineers (presumably based in Moscow or another far northern clime) decided that air conditioning was for wimps. This made things a little sticky in Nicaragua.

Many people in Latin America seem to view gringos as rich targets for a variety of scams. We tend to drive in a state of high alert, particularly after getting stuck up by kids with guns in Rio. Just outside of Granada a bunch of kids held up 2 ropes across the road to try to make us stop. I had no idea what they wanted, but assumed it was not in my best interest. I accelerated (this is a NYC taxi trick to make sure pedestrians have no doubt that you are not going to give the right of way) and the ropes were dropped. The kids looked quite surprised and I congratulated myself for my decisiveness and ability to avoid some sort of ripoff. We later found out that the kids were trying to raise some coins for a local charity. Oops. I don't think that did much to improve international relations.

We did not see much evidence of crime. Tourists and locals seemed quite comfortable walking the streets of Granada late at night. That being said, many businesses posted guards armed with shotguns. To enter a bank you get searched with a metal detecting wand.

I am not sure if there is enough tourist infrastructure to plan a full vacation in Nicaragua, but if you get a chance to visit Granada or the beach town of San Juan del Sur, you should go. If you like getting somewhere before the hordes, now is your time.

Next we are headed for Honduras and El Salvador.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150415460/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150415460/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1150415460/tpod.html Sun, 18 Jun 2006 20:22:24 -0400 A Pan American Adventure

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Manuel Antonio, Costa Rica

Costa Rica has long had a reputation for stability, natural beauty and ecotourism. We had high hopes for our short stay. Unfortunately, the parts we saw are being aggressively developed in a way that is unlikely to make me a repeat visitor to the Pacific Coast.

We stayed a couple nights in Manuel Antonio and a couple nights in Bahia Salinas, near the Nicaraguan border. Kia had been to the beach area Manuel Antonio in 1989 when there were no luxury hotels or restaurants, and was astounded by the natural beauty. Now, there are over 25 big hotels, with construction underway for more, plus an array of restaurants, launderias, massage spas, and even a couple of adult only 'entertainment' venues. (The park itself is protected and apparently still has lots of monkeys, but unfortunately we were there during rainy season, and it was pouring buckets the morning we planned to visit.)

In an earlier blog entry I spoke about the concept of Aspenization. This is the economic evolution of many tourist sites. As ever more upscale amenities are added, the clientele becomes increasingly wealthy, the original visitors become priced out of the market and the newcomers arrive primarily for the scene rather than the scenery.

Much of the Pacific Coast of Costa Rica is undergoing a parallel, but somewhat less attractive process - it is being Daytona'd. Daytona Beach seems to primarily appeal to two groups of people, college kids on spring break and NASCAR fans. Both demographics travel in packs, impose their culture on the local populace and may choose their vacation destination based on the quantity and cost of the beer.

The Pacific coast of Costa Rica is undergoing a more gradual, but similar invasion. As we drove north, we were amazed at the large number of real estate signs in English. After passing the fourth new condominium project in 20 miles, we had to stop in.

When we knocked on the door of a small building labeled 'Pre-Construction Sales', we were met by an enormous gentleman who introduced himself as Cookie. (I would never trust a real estate salesman named after a pastry.) Cookie evidently is a refugee from the Florida condominium market who has decided to try his luck in Costa Rica since his local market has ground to a halt. He started salivating as he fired up the video, brochures and floor plans, but we told him we had only three minutes to make his pitch. I have to admit he was pretty good.

Cookie claimed that this was a unique investment opportunity, that prices were going up next week and that he had tripled his money in the last condo complex. Only $10,000 would guarantee the current prices of about $300k per condo.

They are building a set of six story buildings (this is in the middle of nowhere and 2 km from the beach), a hotel and conference center. The complex will be circled by an artificial river where you can float in an innertube with a drink in your hand until you are deposited, 15 minutes later, back at the pool and swim-up bar to reload for another lap. The whole complex will be built 'Las Vegas Style'. Nice.

Just as Cookie was getting all lathered up, Kia grabbed my hand, made a few excuses about time and dragged me from the premises. Needless to say, she was aghast.

I, on the other hand, had somewhat mixed emotions. While I would never want to visit (much less live) in one of these places, obviously somebody does or they would not be being built at a furious pace. I suspect that there are many NASCAR fans who are priced out of the Las Vegas condo market who think this is a great deal. Who am I to impose my tastes on them?

From the perspective of Costa Ricans, I suspect there are also mixed emotions. The economy is quite strong (up there with Chile as the strongest in Latin America) and most of it is fueled by tourism and real estate. If they have decided, through a democratic process, in favor of development of this type, again, who am I to impose my tastes on them? They have far less wealth than we do and they may have a different price for their natural resources.

Kia and I visited Costa Rica in the 1990's and we both had a very different experience. It was far more natural and tasteful. I believe part of that was because we visited during dry season and we went to different places before (more inland, such as Volcan Arenal and Monteverde) than we saw this time. But, also, time has probably changed Costa Rica. I will likely be reluctant to return anytime soon.

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Part of Costa Rica's strength is due to a fascinating social experiment that they started in 1948 when they abolished their army. I believe this has had more impact on their internal politics than it has on foreign relations. Since this time, Costa Rica has had only peaceful regime changes. I believe this is unique for Latin America south of Mexico. I have been surprised throughout the region at the large number of politicians who come from the army. If they don't get their way, they sometimes use the soldiers to take what they didn't win at the ballot box.

Next stop is Nicaragua.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149986880/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149986880/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149986880/tpod.html Mon, 12 Jun 2006 22:49:45 -0400 A Pan American Adventure

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Panama City, Panama

We have spent the past few days in Panama and we feel like we are almost back to the US. (You know you have been gone too long when the sight of a couple of McDonalds and high rise office buildings start to make you homesick.) For the first time in 5 months we are on a road that connects all the way back to California.

Panama is somewhat of an artificial creation of the foreign powers that have dominated the history of the region, Spain and the USA. The area was 'discovered' on one of Columbus' early voyages. Vasco Nunez de Balboa crossed the isthmus in 1513 and, because Panama runs east-west, named the new body of water, the Southern Sea. This was not Balboa's last mistake. About 6 years later he managed to piss off the local governor and was beheaded. Despite these shortcomings, the local currency is called the Balboa and his smiling mug appears on most of the coins. (Panama prints no bills and uses US greenbacks which are equal in value to one Balboa.)

About 25 years later, the Spanish began 'exporting' great quantities of gold and silver from Peru and used Panama as a shortcut to Spain. By the mid 17th century there were few local Indians left to carry the load and the Spaniards decided it might be easier just to sail around the bottom of the continent. Panama was then basically ignored until the mid nineteenth century when California gold needed to be transported.

The French stepped up to fill the void by building the first 'transcontinental' railroad across the isthmus. They imported labor from the Caribbean and China (they were no more eager to do manual labor than the Spanish had been) and sparked the first great immigration wave into Panama. The French subsequently tried their hand at canal building in 1888, but managed to create not much more than a few mud puddles before giving up.

In 1903, Teddy Roosevelt badly wanted to try to finish the job, but Panama, at the time, was still a province of Colombia. When he got word that a few locals were talking about a rebellion, he immediately recognized the new 'government' and had a warship in town before the Colombians knew what happened. (TR makes our current president look cautious.) Construction started in 1904 and was finished by 1914. Another large wave of immigrants did most of the manual labor.

The US maintained a military presence until the canal was handed over at the turn of the millennium. It is easy to identify our influence on the culture. Most of Panama City is covered with gleaming high rises, shopping malls and restaurants ranging from fastfood to haute cuisine. The colonial part of town has fallen into disrepair and is now only begun the process of gentrification. The economy appears to be quite strong due to the canal, international investment and Panama's reputation as an easy place to do business. Panama is also making a push to attract US retirees who are looking to stretch their dollar in a tropical environment. We saw new, detached homes for as low as $22,000. That might not buy a burial plot in San Francisco.

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We have successfully retrieved the Jeep with the help of a smooth talking local customs broker. Wilberto is the classic latin - tall, dark and handsome. (Fortunately for me, kia decided to atay at the hotel.) He leaves three shirt buttons unfastened and pays particularly close attention to all of the female customs officials. Needless to say, he was quite effective and we were able to fight through the red tape in a 'mere' 9 hours.

Our run of good health has unfortunately ended with Kia contracting a nasty bout of food poisoning. She believes it came from one of the nicest restaurants we ate at in weeks. I have told her we need to go back to eating Bolivian chicken-foot soup. Kia has decided to take her chances. She is feeling much better at this point.

Next stop is a beach in Costa Rica.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149692160/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149692160/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149692160/tpod.html Wed, 07 Jun 2006 11:32:23 -0400 A Pan American Adventure

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Quito, Ecuador

Since 2000 Ecuador has undertaken a fascinating economic experiment that seems to be working out quite well. Following years of debilitating inflation (and correspondingly high interest rates) the country abolished their local currency and now solely relies on old-fashioned greenbacks straight from the USA.

Throughout South America, dollars are readily accepted and almost every cash register has slots for both the local currency as well as dollars. This is a holdover from periods of hyperinflation when the local currencies would undergo meaningful daily devaluations. Generally, the implied exchange rate makes it better to settle debts in local currency, but in some places (such as Uruguay and many hotels) price tags are in dollars and if you pay in local currency you will pay a premium. Ecuador has simply taken this a step further by eliminating the local currency.

All the bills in circulation are imported from the US. Unfortunately, ones are in very short supply and many are quite frayed. If you were wondering what happened to all of those Sacagewea dollar coins that were minted a few years back, they are in Ecuador. The smaller coins are a mix of US and local, with the local being of slightly different sizes to (I assume) prevent them from being used in US vending and counting machines.

Overseas usage of dollars actually turns out to have tremendous benefit to the USA. The currency that each of us holds in our wallet is effectively an interest-free loan to the Federal Reserve. The fed uses this money to buy Treasury securities, which are (eventually) recycled back into the federal budget. (My understanding is that this process is not included in the official budget numbers. I assume this accounting treatment is done in order to avoid additional politicization of monetary policy.) Although we have trouble exporting cars at least we can sell our money. Of course, if global confidence in the dollar collapses, a lot of these interest-free loans may come due.

From Ecuador's perspective, dollarization offers the benefit of (presumably) a more stable currency and a drawback of a loss of control of monetary policy. When the fed sets rates, I doubt they spend much time considering the economic impact on Ecuador. On the other hand, Nebraska doesn't control its own currency either, and the fed probably doesn't spend much time thinking about the tiny sliver of the USA that supports the Cornhuskers.

In most emerging markets, the central bank actually doesn't have that much control over the economy because investors do not have much confidence that the bank will (can?) maintain the value of the currency (by avoiding high levels of inflation). Thus, the central bank will find it difficult to stimulate growth because investors will demand a premium (in the form of a high interest rate or return on investment) to hold the local currency. Alternatively, some countries have retained their local currencies but borrowed in dollars at lower interest rates. Inevitably this ends in disaster when the debt needs to be repaid (see Asian debt crisis of 1998 and Argentina circa 2001).

The other downside of using someone else's currency is that it tends to make you look like a banana republic (Ecuador, as the world's leading banana exporter, may be more comfortable with this moniker). I hope policy makers will make decisions based on more important factors than personal or national ego. Unfortunately, I am not very optimistic.

The left raised a number of other issues associated with dollarization, most of which struck me as being rather silly. (My sense is most liberals waver between a complete lack of understanding of central banking and paranoia that the whole subject is a rationalization for policy that somehow benefits wealthy capitalists at the expense of the downtrodden masses.) One argument against dollarization was that many natives spoke mainly Quechua, a bit (maybe) of Spanish and no English. How, the lefties wailed, would these natives possibly be able to read the English written on a dollar bill? Even if we assume that it is necessary to read more than the numbers (which tend to also be used in most other currencies), isn't it a bit condescending to think that these people are incapable of learning the word 'dollar'?

Traveling around Ecuador, the benefits seem obvious. The economy appears to be doing quite well. There is a strong middle class with excellent access to a myriad of consumer goods. The entire southern coast was dominated by mile after mile of tidy banana plantations. New construction is strong and we visited a couple of gleaming shopping malls that were absolutely packed with shoppers.

Quito itself is a quite attractive city with a beautiful colonial center. We have enjoyed exploring the city and had an excellent dinner in stylish restaurant on a mountainside above the city. If you travel through Quito, it is definitely worth spending a day. Next stop is Panama where we hope to pick up the Jeep. After four and a half months, farewell South America!

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BTW - In Peru, the former (incompetent) president won the election this past weekend by about 10 points. He seems like a bright guy, I am hoping he learned from his previous mistakes. His platform seems pretty Clintonesque, mdille of the road economics combined with and ability to 'feel your pain'. Let's hope it works out well.
]]> http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149350460/tpod.html http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149350460/tpod.html#comments Travel Blogs http://www.travelpod.com/travel-blog-entries/midlifecrisis/jeeptour06/1149350460/tpod.html Sat, 03 Jun 2006 12:34:59 -0400 A Pan American Adventure

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Amazon, Ecuador

We have spent the past four days at a very comfortable ecolodge deep in the heart of the southern Ecuadorian Amazon. We were fortunate to share the lodge with only two other guests (capacity is 40), both of whom were delightful company. Dustin is a NYC artist whose career is accelerating rapidly while Charlotte is a student studying photography and literature at Brown. When the conversation drifted towards politics, it would be safe to say that the debate was lively.

Dustin possesses a tremendous curiosity and zest for life. He was constantly coming up with new ways to interact with the environment and the indigenous people, the Achuars. Whenever the guides suggested that a plant might have some medicinal properties he was quick to volunteer his body for research. He even decided to ingest one of the local hallucinogens. Unfortunately, primitive people tend to have (powerful, but) primitive drugs. Taking this drug required fasting for 24 hours in advance because consumption produced hours of violent retching. My understanding (I vehemently deny any first hand knowledge) is that modern technology has created a panoply of recreational drugs that do not require extensive vomiting. If I were ever in the market for a hallucinogen, I think I would choose a non-yakking product. Despite losing track of his vomit count (Charlotte thinks Dustin was in double digits), Dustin was quite pleased with the overall experience.

Dustin has decided to come back to the area later this year to work on a documentary on the cultural crossroads facing the Achuar people. I think this will be a fascinating topic and hope he is able to follow through.

The area has no roads and the Achuars had few contacts with outsiders until the 1970's. The first white people to set up shop were the Catholic missionaries. Usually I have limited patience for religious proselytizing, but these missionaries seem focused on providing education and are not particularly concerned (yet?) that the Achuars remain relatively uninterested in Jesus Christ.

At about this time, oil was discovered and developed in the northern Amazon. Unfortunately, the Ecuadorian government did not share much of the revenue with the indigenous people, nor did they attempt to regulate the environmental impact. Roads were built and oil was spilled. With a transportation network in place, timber extraction became much more economical and forests were felled.

The Achuars are well aware of this history and do not want it repeated in their section of the forest. The ecolodge we are patronizing was established in order to provide the Achuars with an economic alternative to exploiting their resources. Most of the senior positions at the lodge (manager, guides, bartender) are filled by non-Achuar Ecuadorians, while the locals do most of the grunt work. The lodge's stated mission is to hand the whole operation over to the Achuar by 2009.

The lodge is partially supported by a US foundation whose twin objectives are conservation and cultural preservation. Most of the US and European guests seem to unquestioningly support these objectives. I suspect that many would express concern that the Achuar culture might become 'americanized' or 'homogenized'. I have heard (wealthy) US travelers lament that this homegenization makes the world a far less interesting place.

This strikes me as a very dangerous attitude. As a libertarian, I strongly support the Achuars right of self determination on both a collective and an individual basis. While it is no doubt fascinating to visit a primitive people in (close to) their original state, how many of us want to live in the jungle without potable water, indoor plumbing, or other modern conveniences? Are we certain that all of the Achuars have no interest in travel, television, Chinese food and movies? All cultures evolve and there are usually positives and negatives associated with each change.

The Achuar culture is already undergoing significant change and more is coming. The missionaries have been able to broker a significant reduction in intertribal warfare. Western medicine has increased lifespan and reduced infant mortality. The Achuar population is exploding and putting pressure on the environment. The environmentalists are attempting to convince the Achuars to stop hunting wildlife and raise more chickens.

There are a few aspects of Achaur culture that need to be updated. For example, it has historically been considered appropriate for a husband to discipline their wife with (usually, but not always, the flat side of) a machete. Polygamy was widely accepted. No women are employed at our ecolodge because Achuar men do not accept women working outside of the home. While I am willing to accept some cultural differences, I also believe in a few moral absolutes. I would not excuse an American wife beater just because several generations of men in his family did the same, nor will I accept this behavior in another culture.

I suspect that the Achuar view on cultural change is both nuanced and conflicted. Usually elite members of any society are more eager to preserve the culture (and their privileged positions). Young people and the dispossessed are often more eager for change.

When American tourists talk about the importance of 'preserving the Achuar culture' they usually mean 'protecting' the people from outside 'contamination' by American (usually commercial) culture. I find this both condescending and selfish. Condescending because it implies that Achuar are not capable of 'handling' satellite TV and other examples of our culture. Selfish because it seems one of the objectives is to preserve the experience of interacting with a culture that is very different from our own. As a traveler, I learn a great deal from interacting with other cultures and attempt to integrate some of what I learn into my own worldview. I am quite pleased that US culture has been added to by a wide variety of ethnic groups. Who are we to deny the same opportunity to the Achuars if they decide that that is what they want?

One of Kia's friends runs a consulting business that works with indigenous people to make sure they get treated fairly when their resources are developed. He believes that the Achuar community's concern with oil is about price. They have seen that their northern counterparts received very little for the destruction of their environment. I am not sure if Kia´s friend is correct as the Achuar we met were pretty vehement in their opposition to oil developent, but they, also, might be pretty good negotiators.

I believe it will be important to support the Achuars in whatever decision they choose. (The ecolodge is not a viable economic alternative. It employs a few dozen of the 6000 Achuars and seems to average about 50% capacity. There does not seem to be sufficient demand to justify expansion.) With better regulation and oil drilling technology (directional drilling, improved seismic surveys, etc.) it may be possible to limit the environmental impact of development. While a road would probably be needed, it may be possible to restrict access to limit unwanted cultural changes.

I am sorry to rant on about this topic, but I was amazed at the audacity of all sides (travelers, environmentalists and oil companies) to be willing to try to impose their views on a group of people living in abject poverty and then get on a plane to return to their comfortable lives.

On a brighter note, we absolutely loved our time at the ecolodge. The wildlife (particularly birds) was fantastic. (Unfortunately, most of it was at a distance beyond the capabilities of our camera.) The weather was cooler than we expected and mosquitoes not as savage. I do believe it is important to support the Achuars in their transition, so if you have interest, please visit the Amazon.
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Otavalo, Ecuador

Yesterday, we had an opportunity to spend time with a rare species that once dotted the landscape, but today is rarely encountered in the wild: the unreformed, educated, American liberal. Today's lefty will make the case for universal health care while sipping organic fair-trade coffee and dreaming of their savior, President Hillary. The unreformed liberal, however, dreams much bigger, revolution against the capitalist oppressor.

Our hostess last night at Casa Mojanda, Betti, spent 15 years in New York working for the Legal Aid Society before opening a small ecolodge in the Ecuadorian Andes. Meals were served communal style, consisted of locally grown organic produce and were entirely vegetarian (tasty but somewhat unsatisfying for this carnivore.) I recognized I was in hostile territory politically and tried (probably unsuccessfully) to hide my personal views as we explored her perspectives on the issues of the day. Fortunately for me, it is usually not difficult to elicit extended pontifications from the unreformed liberal.

Betti seems to continue to believe that communism offers a better way. While discussing Cuba she said that their universal health care and free education has allowed them to accomplish so many things. I was tempted to ask "Like what? Per-capita GDP that is 7% of the US? Availability of meat no more than once a week? Shortages of basic medicines including aspirin?" I held my tongue.

Other political bon mots included a couple of conspiracy theories. The US government and international shipping companies are preventing a road being built between Panama and Colombia in order to prevent illegal South American immigration and maximize shipping revenue. Chemical companies, meanwhile, are pushing agricultural enhancements such as fertilizer and higher yielding seeds (some, gasp, are even genetically modified) in order to wipe out native cultures and 'addict' local farmers to their high-revenue products. Needless to say, Hugo Chavez and Che Guevera are big heroes. Surprisingly, she is still waiting for Ollanta Humala to 'prove his progressive credentials.'

Despite disagreeing with most of her views, I will give her credit for living her ideals. She uses her ecolodge revenue to support a number of local businesses and has established a public school near the resort.

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On Saturday night, we attended the social event of the weekend in Otavalo, the cockfights. We were able to find the arena by following the steady stream of young men with a chicken or two under their arms. Once inside, the air was filled with a cacophony of what sounded like poultry smack talk. ¨Chicken? You callin´me chicken! You´re a chicken!¨

We watched two bouts which were pretty uneventful. It turns out that chickens really aren´t capable of doing that much damage to each other. The second bout went the full 10 minutes without reaching a conclusion. Ten minutes of fighting is well beyond the stamina of the average chicken. By the end, they were just leaning on each other like two tired boxers in a clinch. One chicken even sat down for a quick rest. That of course brought the handlers scurrying forward to give each bird a quick pep talk before restarting the bout. As one might imagine, the whole event seemed to be an excuse for the menfolk to gather, have a few drinks and gamble on random events.

We spent three days in Guayaquil where we were shipping the Jeep to Panama. We worked with a very expensive but, so far, only moderately reliable shipping agent. Our fingers are crossed that it will be in Panama when we arrive. Guayaquil is the largest city in Ecuador but it lacks charm. There has been a lot of recent investment in parks and shopping malls, so the city seems livable, but a bit dull.

Our next stop is the Amazon. We have our bug juice and sunscreen packed.
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