living.boondockingmexico@yahoo.com
Mexico street markets are called mercados, mercados rodantes, tianguis to name a few depending on the region of the country you are in. They are true cultural havens for Mexphiles and adventurers who yearn to know more about Mexico and it's people. The aromas, colors, sounds, and languages one can experience are truly amazing. At times it can almost be a head spin. The excitement of going to the Tuesday market in San Miguel de Allende for example creates a true stir in the whole city. Good luck finding a place to park as people come from far away to hock their wares and those that come to shop and feel the experience as well.
Large and small vendors some with only a small table or nothing but a blanket spread on the ground. Exotic fruits such as the pitaya, mamey, vegetables, and legumes of all types not to mention the abundance of pig heads, large swaths of pork skin called chicharron, and the vendor breaking off pieces for people to try. Food stands dominate the markets with every Mexican womans' favorite recipe for empanadas rellenas, enchiladas, and of course the world-renowned taco, and all of those come in many different shapes and sizes.
Sounds great, doesn't it? Almost like something out of a travel magazine. However, I try and almost never buy from a street market. Bizarre, isn't it? I live in a small town that boasts one of the largest outside Tuesday markets (Tuesday is generally market day in Mexico) south of Monterrey in my area but I've only been once in 20 years.
Most of my reasoning has to do with poverty. The majority of the small stands and vendors are poor people. Then it would make sense to cater to them and purchase their goods versus an established business. Just the opposite. Poverty is a strange animal and we treat it by throwing money at it. It hasn't worked throughout history and the most recent being Lyndon Johnson's infamous attempt to eliminate poverty with his "welfare" program. 60 years later, the five-state region of Appalachia continues to suffer and live, in some cases, in extreme poverty, drug and alcohol addiction, and physical and sexual abuse.
We hear the same list of questions from foreign visitors on a regular basis. Why are the roads so bad? Why doesn't the government do "X"? Why are people so poor? You know the list and many of you have asked us and others the questions.
The reason is simple. You may love to come and visit and see all of the above but the dark and hidden secrets are rarely exposed. 50% of the population is not registered, pays no taxes, and worst of all because of that receives no benefits. There is only so much money coming in, minus the corruption and the waste on programs that it leaves little to work with. COVID has proven to be a great example of this. The universal healthcare system is swamped, lacks medications, ventilators, beds and supplies. It takes money to run a country and Mexico is the 13th largest country by land size and 10th largest by population.
Did you know that market vendors pay to set up their stalls? Yep, a man comes around each market day and collects money for the market association that pays for the use of the space along with a list of other fees. Then, another man comes along, or a group of men, and asks for an extortion payment. You'll rarely see them because they mix right in with the shoppers. It's an endless cycle of graft and corruption and there is no recourse. How can there be if you are participating in an illegal activity? If you are not registered and running a business without paying any taxes or fees you can't expect the government to back you up. It leaves the door open for criminal activity.
To add credibility to my blog post, this is a headline dated 09/09/20 from the Mexico City Daily News (a paper that translates Mexican newspaper articles into English) here is the headline:
It gets worse. Mother Teresa in SMA sent out a message for help for "her kids" in the campo the other day. Now that kids are not in the classroom and working from home via the internet, those kids in the campo don't have internet much less electricity. Well by gosh let's just get together and buy a pole, a transformer and some cable and it's done. Does that work in the U.S., Canada, or any other country you may have visited? It takes a contract from the electric company. If you live a mile from the main road you have to pay for the post, transformer and installation, thousands of pesos. But how can you get a contract when you are a squatter and have no way of proving your income and ability to pay?
The system is F'ed up and president after president has attempted to fix it but it has never been resolved. There is hope though. We do have programs to legalize all of the ills above. There is a program called Sumate (get added):
"This program brings personalized advice and guidance on tax matters to your home or establishment, confidentially and free of charge. Objective: Promote, through civic and ethical values, the tax culture; incorporate into the formality those who have not registered in the Federal Register of Taxpayers"
The other is Fondo Pymes:
The support fund for micro, small and medium enterprises (Fondo Pyme) is an instrument
that seeks to support companies, in particular, those of smaller size and
entrepreneurs with the purpose of promoting national economic
development through the granting of temporary support for programs and projects
that promote the creation, development, viability, productivity, competitiveness
and sustainability of micro, small and medium-sized enterprises.
Sounds pretty heavy and complicated but they will work with a guy who needs to replace his paleta tricycle or a new trailer for a taco business. I know from experience. I used to work out at the gym with a woman named Elena. She was divorced and lived in the next town over. She did people's laundry from her house including ironing and some mending. She would always talk to me about creating a business. I told her she already had a business but no one could recognize it because it wasn't legal. The first step I took her to my accountant who assessed what she did and how to legalize it. Done in one week and a cost of 300 pesos. Next step, we went to the state version of Pymes. They loaned her enough money based on her collateral, to buy a commercial washer and dryer. Years later she has a successful commercial laundry business and does work for catering companies and hotels. She's not rich but is much better off economically. She also has a pension to look forward to now, a first-time buyer fixed interest rate home loan as well as IMSS, universal medical care.
The system is in place. It's the desire, hard work, and education that is required. Will all of them be as successful as Elena? Probably not but they sure would be better off than they are today and we could reduce crime and corruption. After all, isn't that what President Dingus wants? Eliminate corruption? You won't do it by giving people money only to have the criminal element and scrupulous government employees and teachers take it away from them.
I will close with a question. Let's say you have a small business and break your back to make it work, pay the bills, and feed your family. Then one day, a person shows up, puts up a booth with an umbrella, and starts selling the same product you do but they don't pay rent, taxes, employee salaries, and benefits, and they purchase their goods on the black market. How would that work for you and your country's economy? Now, do you understand?
Posts
Fantastic post. Very interesting and enlightening.
ReplyDeleteA good read!
ReplyDeleteThanks for an inside look at Mexico's economy.
ReplyDeleteMind blowing post, Chris.
ReplyDelete