Friday, August 29, 2008

Ode to the minibus.

If you don't know what a minibus is, I'll try to describe it. Its kind of like a full size van, that rides lower, and has seating for between 11 and 14 people. The third seat in each row folds up to become an aisle so that people can pass to other rows.

All minibuses in Malawi have 2 employees running it. One is the driver (essential) and the other is the conductor (sort of essential, at least he lets the driver focus on driving). The conductor yells at you as you're walking by, trying to coax you into getting on the minibus. He's (i have yet to meet a female conductor or driver for that matter) likely to tell you things that are not always true. "Yes, we leave at 5 am sharp." "Yes, this bus goes to Salima." Then went you get to Dwangwa (half way to Salima), they stop the bus and he refunds you part of the trip, though he likely never had any intention of going the full distance.

Typicall mini-buses are in horrible shape. This is a small sum up of some minibus experiences.
1) The sliding door falls off - has happened many times
2) One 2 different minibuses the back of the seat fall off when I leaned against it.
3) I've been in a bus that has been chased by police, while I was in it.
4) Some buses have had live animals inside like chickens, or had fish hanging by the sideview mirrors. How else are going to transport these goods?
5) Once, I was sitting in my seat and noticed that the floor underneath me was smoking. As the driver and conductor jumped out and pushed me out of the way, they lifted the floor board to find the battery on fire.
6) Usually, the shocks are dead, and you will hear metal upon metal throughout a drive over bumpy streets. Sometimes, you wonder how its possible that the bus makes the trip.
7) Often, in less policed areas, conductors will load up the buses to hold 18, sometimes 20 people.
8) The windows of some buses are missing and tape is used to act as a window.
9) One thing that is unbelieveably common, I'd say as high as 20% of the minibuses. The starter doesn't work. This applies to many taxis as well. So, daily you will see people get out and push minibuses/taxis and then jump in when they pop the clutch. This happens a lot! One consequence of this is that you have to add fuel while the vehicle is still running. A big no-no in Canada and the US.
10) Most conductors and drivers only use about 5 -10 litres of fuel at a time to keep costs low. They will usually have a 4 litre oil container filled with petrol in their vehicles.
11) One time, I was on a bus and noticed a 4 litre container behind the driver's seat with some tubes sticking out. I asked the driver what this was, and he explained to me that his fuel tank was eroded so now they used this 4 litre container to store their fuel.
12) Probably the most unbelieveable thing about all of this is that these vehicles all have fitness certifications on their windows (a requirement of all vehicles). Some are obvious frauds, and once in a while you will see a non-corrupt police officer at the side of the road and there will be 11 minibuses stranded. That's probably when the cops go on a safety blitz.

Its an interesting experience to say the least. They do serve a purpose as they provide the only affordable means of getting around though, for most people in the country. They're running condition may be a function of either greedy owners or that people can't afford to pay more so maintenance is left to a minimum.
Has it been this long since my last post. Apologies.

I'm trying to recount what has happened to me in the last month, but everything has been coming up blank. Work has been slow. The reason is that we have no money. The reason is that the government hasn't passed the budget. The reason the government hasn't passed the budget is because the opposition is convinced that members of government have broken Section 65 of the constitution. They have refused to pass the budget for 2 months, all the while trying to bring up this issue. Every day in the newspaper, you read, from a member of the government. "The opposition doesn't care about the poor in the country. They don't want the budget to be passed. They need to remember that they are here for the people." Then you will read a statement from the opposition saying, "The government is trying to erode democracy. We need to discuss Section 65. This is not about not wanting to pass the budget. Its about democracy. We can't allow democracy to be eroded." Around and around the merri-go-round we go. (You can also use a ferris wheel for that analogy, if it suits you better.) This has literally been occuring in the newspaper every day. Front page news everyday! And you thought American politics was ridiculous...

Finally, yesterday, the government passed the budget, but only after the opposition forced them to sign an agreement that Section 65 will be dealt with. If it is (they agreed to this before, but the government balked. That was last year), then the government might lose most of its seats. I don't know if this actually means anything, since Malawi is going to elections next year. The question I have now is, what will the newspapers write about now?...

One more comment, Malawi employs a British style government. Thus if the budget is not passed, theoretically, they should have a vote of confidence and go to elections. But in a country that can't afford to go to elections, except every five years with some funding from donors, I'm not sure if the system can work...

Thursday, August 7, 2008

Simple Everyday Choices...how you can help the world’s poor…

Sounds crazy right? Who the heck would want to pay more for gasoline? I agree. I sure wouldn’t. But, by paying more, we will reduce consumption in our country and leave more opportunity for those in developing countries.

It works like this. Oil is a global commodity. It trades all over the world. Its price is based on fundamentals like supply and demand. That means that there is more consumption in the world than there is production, the price of oil will rise. If there is more production than consumption, the price will fall. At this point, almost all of the world’s consumptions is growing while production has stagnated. The supply curve is not the same to the one we saw in Economics 101. That is because at some point, no matter how high the price goes, there are physical limits to how much oil we can produce, at least in the short term. In the long term, we can develop new wells and new technologies, but this takes time.

Recently, the demand curve for oil and energy in general has been increasing. There are thousands upon thousands of people increasing their standard of living in developing countries like China, India and Brazil. This has caused a strain on the supply of oil and it is becoming increasingly difficult to keep up with this new demand. The purple lines show demand, as average wealth increases, the demand curve shifts to the right. Now there are more people able and willing to pay for fuel. This is happening because people in China, India, and Brazil are using more and more fuel as their standard of living increases. Thus the demand curve shifts.

This increased price has a tremendous strain on the poor of the world.

Canada consumed almost 40 billion litres of fuel last year. If we were to put a tax on fuel of, oh I don’t know, say 10 cents per litre, then this would drive demand down in Canada. Then, because it is more expensive, people will start to drive less. They will take public transport. The government can then increase the amount spent on public transport and improve services. So, its good for the environment, and good for the city that you live in. Its also good for countries like Malawi. Think about it. In Canada, the GDP per person is $38,700. In Malawi, it’s $800. Okay, you say, but things are cheaper in Malawi, and yes I agree but these are PPP numbers so it takes that into account. You can also argue that GDP numbers don’t reflect average income and that money is not distributed equally, but if we compare Gini coefficients, we see that Canada has a Gini of 32.1 and Malawi a Gini of 39. (Gini coefficient is a measure of income distribution, a Gini of 100 means that 1 person owns everything, a Gini of 0 means that there is perfect distribution of wealth). That means that the poor in Malawi are much worse off than the $800 per person would indicate, and that income distribution is even worse for the poor than it is in Canada. Now, think about cars, gasoline, oil etc. These are the same prices the world over. To operate a car in Malawi, costs exactly the same as it does in Canada. To transport goods in Malawi, the cost (with the exception of labour) is the same because parts, fuel, the vehicle, all cost the same. I’ll give you an example. My mini-bus fair is MK100 (about $0.75 CAN) each way. That’s MK200 a day. Now, you might think that a $1.50 is not that much, but consider that most Malawians earn less than $2 per day. As Malawi continues to grow, access to energy becomes absolutely necessary, so that people can take of the efficiencies and increases in production that energy brings. For example, my friend Mary is volunteering in Ghana, where their energy requirements are increasing by 10% per year. If Ghana is to keep growing, and if its citizens are going to lift themselves out of poverty, then access to energy is a must.

So, you can help, by increasing the price, by driving less, or when changing your car, getting a more fuel-efficient vehicle. When you conserve less fuel, the demand curve shifts to the left, and, assuming supply stays the same, the price will drop. This will make fuel cheaper for developing countries, and allow them to develop more quickly. It will allow the poor of the world to get access to fuel for lighting, for transportation so that they can get their goods to the market. We’ve already seen that gasoline consumption has dropped due to higher prices. Yes, its good for the environment, but its also good for the world’s poor. Higher prices might be a good thing.

Things like oil prices show how choices we make in our everyday lives affect the rest of the world. It shows that we are all connected in some way. No man or woman is an island. So, to make a difference and to help the poor, ask your MP to raise taxes on fuel. Buy a more fuel efficient vehicle. Drive less. We in Canada will feel some pain for it, but you know what they say, “no pain, no gain.”

Saturday, August 2, 2008

Economics 101

I am going to call this section Economics 101. It will serve as a base page where I can reference back if its been a long time since you took economics.


This is a standard supply curve. Basically what it suggests is that as the price of a good increases, more people will be willing to produce that good. So, as we move up the price scale, the amount of units produced will increase, moving to the right. If we were to think about this as a bottles of cola, well, if the price were low, say 10 cents, then only a few companies would be able to participate (the most efficient, or lowest cost) and thus the amount of bottles produced would be low. If the price were high say $100, then more companies would be able to cover their costs and the amount of bottles produced increases.

Next we have a demand curve. It is the opposite of the price curve. What the demand curve suggests is that as the price of a good goes down, the demand for that curve will increase, thus the graph goes to the right. What this means is that when the price goes down, more people can afford to buy it and do so. Again, think about this as if it were a bottle of cola. If a bottle cost $100, you probably wouldn’t buy it. Probably only a handful of people would (those that have a lot of money and really love cola), so we’re at the upper left corner of the graph. But if you were to bring the price down, say to 10 cents, then a lot of people would buy it. They would probably buy lots of it because its so cheap (the bottom right).

But you can’t sell cola at 10 cents because that is more expensive then it costs to produce, so now we are limited by the supply curve.

So, if the cost is high, then companies will be able to produce but no one will be able to buy. If the cost is low, then everyone will be want to buy but very few will be able to produce. So the answer is that when we put the two lines together, their point of intersection is where the price makes the demand (price is low enough that people buy) equal the supply (price is high enough that enough groups produce). Thus the market will find a natural price point for any good or service. If the price is too low, then demand will outstrip supply, and the price will increase until they equal. Vice versa, if the price is too high, supply will outstrip demand, and the price will drop until some supply drops off and the two lines meet.


So, what happens when the price is too low? Well, the demand will be much higher than the supply creating excess demand. That's when you'll see store shelves empty and people won't be able to get enough cola. So, what happens now? The price is raised such that the excess demand is reduced, both as a function of increased supply and decreased demand. (the middle graph, the green dot moves up along the demand curve). Eventually, the price keeps rising until the supply equals demand.

And that is the end of economics 101.

Simple everyday choices... how you can help the world's poor...

The problem of over 1 billion poor people throughout the world seems to be an intractable problem, one that is unsolvable, unthinkable, out of reach for most of us. However, we are all linked. Our actions, or inactions, our choices shape the world for the 6 billion people in the world. Likewise, they do the same. For the next few blogs, I am going to try and link how we are connected in some small ways, and how, you through various choices you make can help the poor throughout the world.

One Hand Waving Free - Good days and bad days

You know, I've received a lot of emails from people telling me that they're proud of me or that they really respect what I'm doing or that I'm brave and the like. I like these emails. On my bad days they keep me going, but the truth is... they're all false statements. Well maybe 'false' is the wrong word, but the truth is that I am none of these things, at least in the sense of my placement with EWB. What have I done except act when I had the means to do it? When I could give of my excess?

Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a fraction of a penny.
Calling the disciples to him, Jesus said, “I tell you the truth, this poor widow has put more into the treasury than all others. They all gave out of their wealth; but she, out of her poverty, put in everything-all she had to live on. (Mark 12:41-44)

I have seen so many instances of people, here in Malawi, who give and give and give, when they have nothing to give in the first place, and it is humbling. They have even given to me (who in monetary terms have infinitely more than they do), beans, rice, chickens, and when I protest, they ignore my protestations.

Come to think of it, I have seen instances of ultimate giving in Canada, in my family, in my friends, in strangers...

I remember, sitting on a plane from Edmonton to Toronto heading to EWB training. I was sitting beside this girl and, in between her sporadic vomiting into barf bags, we had a very nice conversation. I asked what she was doing (she was/is? a hearing specialist) and she asked what I was doing. I told her about my EWB placement. At this point, people usually say things like, "Wow, that's great. Good for you.", things of that nature. As I awaited for the glowing accolades, the standing ovations, I was greeted with the saying, "Wow, you're lucky that you have the opportunity to do something like that". I realized, then and there, how right she was. I am lucky. I am lucky that I can take a year off of work, a privilege many do not have. I am lucky that I get to experience this. I am lucky to be in Malawi.

I have been told that I am brave, good, thoughtful. Most days I feel weak, useless... There are some days that I feel like I'm not doing any good, that I'm just wasting my time, wasting Malawian's time, that I should be back in Canada working, making money...

When I first signed up, I had pictures in my head that I would come in here and instantly make things better. Now, more sober from my drunken ignorance, I see that this is going to be an enormous task, and it isn't going to be making the difference. It's going to be Malawians. Also, it is going to be you, in the western world, through the choices you make, the government you elect, to create conditions that support growth for the poor of the world.

I lived well in Canada. The truth is that I live well over here. I probably, no, I do live better than most Malawians, than most people in the world. In Canada, I lived an easy life. I lived well. Here, I live an easy life. I live well. So, while I wish to thank you for the nice and heart-warming emails and letters I receive, the truth is that they are misplaced. They make me feel great, not in the sense that I believe that about myself, but because I know that people care, so again thank you. On my good days, I am happy to be here, to work at this, to try and make some impact. On my bad days, I feel useless, weak, tired, I have no idea what possessed me to come here in the first place, and I want to return to Canada. It won't be me who will make a difference. It will be you...

Mother Teresa once said that being poor is not the worst kind of poverty. Loneliness, feeling unwanted, unloved, these are the worst kind.

Reach out to people... over here... at home... every day... one of life's great contradictions is that giving fills you up...

Life is walked, not in large leaps, but in small steps...