Hey American Business/Multi-National Corporations: Consider Pivoting To Guatemala Instead of the Far East.
Many Guatemalan individuals discuss the positive influence that selection and choice bring to the city; there are however, differing perspectives to international ownership and name brand, when the local talent, compatibility and equity is emerging within the country. Some like having choices brought from land far away; other perspectives align with the philosophy that their money leaves and enriches the international headquarters. Some prefer to buy locally, whereas others desire name-brand items, so long as it is genuine.
Not far from the airport in the Roosevelt neighborhood is Pricesmart, a Latin American franchise patterned and once owned by Costco. There was a wait in line to enter that had snaked outside the building; families ready to enter with their membership card in hand. Once inside the warehouse, there weren’t any food samples at Pricesmart due to the Coronavirus pandemic at the time. This Pricesmart is in the burgeoning new growth corridor, just a few miles west of the city center.
As one walks around Pricesmart, one notices a few subtle distinctions. There wasn’t a senora at the end of the aisle with a hair-net, dishing out samples of the latest nouveau faire, nor was there a vendor hawking trip vacations or granite countertops for kitchen renovations. Much like the American counterpart, Pricesmart is also a club-oriented consumer shopping experience, complete with large bulk items, long lines and a plethora of options for growing Guatemalan families. Instead of the red vests, a sea of blue vests was prevalent; labor costs are considerably less as there isn’t a national minimum wage standard for all citizens yet. Eager to provide assistance, these employees had a genuine smile on their face and would direct the consumer to what they were looking for if said item was in stock.
Outside, the elderly await curbside with their ice-cream, watching the grandchildren, bags in hand for the family sedan to pull up and then leave with both the purchases and occupants.
Surrounding the Pricesmart was every conceivable international store, each displaying a wealth of American, European and various brands.
Directly across the street is one of many modern, recently built shopping malls that dot not only the capital, but in most cities around the country with greater than 100,000 people. The voluminous Miraflores shopping Mall with exquisite polished tiled flooring, modern food courts; yet more name-brand stores and a Cinemaplex with seating for the uber-chic 4D viewing experience. This area is lively, clearly established for the working and upper-class demographics and offers a selection very much on par with counterparts elsewhere around the world.
The cacophony of conversations, in Spanish or one of the multitude of Mayan dialects and languages was easily discernable, only punctured by the loudspeakers advertising new mattresses. Such is the case where in the capital Guatemala City, or any city for that matter, there is almost never any moments of tranquility and reflection. Guatemala and its motto after all, is truly the “land of eternal spring.”[i] More than half the population is under the age of 19[ii], making it presumably the youngest population in the Northern Triangle. With this youthful demographic and the motto applying to the weather, annually, almost every day seems like Spring, until the rainy season. Loud sounds, obnoxious blinking LED lights, and music can lend itself to a festive atmosphere. To the undiscerning ear, it is noise; to those entering the city from outlying municipalities, it is a welcome respite from days of quiet solitude and/or the steady drum of work, for those fortunate to find it. Inside, the noise wasn’t much different. Shoppers crowd the aisles, eagerly comparing pricing and impromptu purchasing. No comprehendo Espanol? No problemo.
Directional signage inside Pricesmart for all displayed items was written in both Spanish and directly underneath in English; much as it is, but just the opposite with large conglomerate stores in many regions of the United States. The hurried hustle-bustle of shoppers on a Sunday afternoon was filled with a large cross-section of life; there were those shopping after church services had let out, the occasional singleton, families in strollers, many dressed in their finest ensemble, others in traditional Mayan décor, where each stitch and pattern identifies which outlying departmento and/or zona one resides.
The traditional dress is not limited to what the ladies solely wear. The traditional style also proliferates to other textiles; they can include purses, laptop covers and even backpacks. Each pattern conveys a sense of pride, alegre with their brightly dyed hues of vibrant colors. Each pattern has a distinctiveness that is unique to a departmento, city and/or neighborhood. Simply passing one another, they can quickly differentiate what area they are from, much like old-fashioned letterman jackets athletes wore years ago.
Inside Pricesmart, one can wander freely inside with zero reason of harassment; there is almost a sense of blending in; as cosmopolitan residents no longer fit a preconceived notion of what a stereotypical Guatemalan should appear. Here is where one is bound to hear the most English being spoken outside the U.S. Embassy.
Although migratory numbers are a challenge, difficult to verify and not necessarily transparent, there are many North Americans living in Guatemala as private citizens. The Washington Post, in a political analysis, editorializes the total number of Americans living abroad elsewhere around the world as in the range of nine million[iii]; data suggests roughly ten thousand Americans are living as retiree’s or work-related (i.e., Peace Corps, NGO, volunteer and/or retired abroad) specifically in Guatemala. Although the estimate of ten thousand is somewhat dated, adjusted for inflation, it does contradict the more conservative figures placed by the U.S. State Department Bureau of Consular Affairs of roughly six thousand individuals[iv] that excludes government military and non-military employees and their dependents.
Guatemala makes for a natural extended desirability for individuals who wish to emigrate and settle in the Northern Triangle; news not withstanding of large exodus of migrants to the United States searching out a better way of life and liberty. Guatemala is slightly more than two hours outside of Miami, three from Atlanta and under ideal conditions, four from Los Angeles. College backpackers looking for a quick spring break getaway that is retrospective, away from the Mexican Riviera festive party atmosphere have been diverging onto the cobblestone streets of Antigua for years. Many venture to the Lago Atitlan city of Panajanchel or pana as the locals reference this iconic region located in the impoverished Western Highlands.
The same principle applies to church missions, medical-tourism trips for dentists, optometrists and assorted youth groups seeking to learn more about biodiversity and sustainability practices, something that Guatemala excels in with their limited resources. The biblical vision of “feed a man a fish and he eats for a day…” is much appreciated by those who visit and do good deeds. Before long, everyone seems to know of someone who has fond memories of a past trip.
Some stay for a week, some stay forever and never return to their place of origin. Others purchase a condominium, a house or land in the surrounding communities and contribute to an economy that grows by leaps and bounds, some years, surpassing the growth rate of its neighbor to the north, Mexico. This would sound like the quintessential story of a migrant who worked the fields in the United States, sent remittances to the family and eventually returned to live out the rest of his or her life in relative security. But rather, it is the influx of the gringo and American media that is driving the youth population to learn English in varying capacities. They in turn, work indirectly and directly to provide trade and services for the expat.
The Organization for Economic Co-operation & Development (OECD) based out of Paris France has a mission “…to promote policies (that) improve the economic and social well-being of people around the world.” OECD identifies a concept called Purchasing Power Parities or PPP that identifies rates of currency conversion that tries to equalize the purchasing power of different currencies. If once considers a basket and inside that basket are such items as consumption, trades, services, purchasing, household wealth, rents, net exports, etc., then one can begin to assuage just exactly how far the U.S. Dollar takes can be stretched for daily living expenses.
The complexities involving the U.S. Dollar for ex-pats are not easily identified as apples to apples. At the surface level, most individuals look at living accommodations, rents, cost of fuel, foods, and one can certainly find current, anecdotal information on a variety of public electronic bulletin boards listed on the internet. Where the real differences begin to appear are hidden in the financial subtleties of Guatemala as measured in the city, the suburbs and lessor know tourist enclaves.
However, there is a growing, nagging sentiment of who benefits the most from these short and long-term visits. Increasingly there is a recognition as the United States pivots manufacturing and trade away from the Far East, there is an opening becoming more pronounced with regards to not only Guatemala, but also neighboring countries inclusive of Nicaragua, El Salvador and Honduras.
In addition to the growing ex-pat phenomena of looking beyond the usual spots just South of the United States border, there are exploratory visions of how can a closer proximity between the two countries of Guatemala and the United States benefit from mutual trade agreements. As ex-pats recognize their dollar does indeed stretch further across many different spectrums, multi-national corporations are realizing they can follow in these steps.
The trade-off for pivoting production towards Guatemala is the reduced loss of transit time options for maritime, air and ground transportation. Guatemala and the Northern Triangle countries are logistically closer to the American (and Canadian) consumer to the North, which initially, makes for a very attractive and desirable trait. Geographically speaking, with the parameters of the Caribbean Sea, the flying time between La Aurora Airport (GUA-main airport to the capital city of Guatemala) and Miami is just over two hours, three hours to Atlanta, Georgia or Dallas Fort Worth, Texas and five hours for Los Angeles area airports. It isn’t uncommon to be ‘wheels up to wheels down” at four plus hours between LAX and GUA.
Combined with an eager, youthful workforce, these countries and its largest counterpart, Guatemala are in lockstep to present themselves with the latter part of the proverb mentioned earlier. The question then becomes how does one move towards the economic expansion of “…teach a man to fish and he eats for life?’
Less than an hour drive outside the Capital lies the bucolic, UNESCO world heritage village of Antigua, Guatemala. Antigua was the original capital of Guatemala. Destroyed by several earthquakes and volcanic eruptions during the 18th century, the newer, modern capital of Guatemala City was resettled after 1773 (Modern day Guatemala City and Western Guatemala City are built over an ancient Mayan site of the Kaminaljuyú population. The only evidence of the Kaminaljuyu existence is a small pyramid that was abandoned years ago, canopy growth resumed and it lie dormant until its recent discovery. Next to the sprawling Miaflores Shopping mall stands the newly opened and first site-museum (Museo Miaflores) dedicated to Kaminaljuyú Mayan population. Archeological artifacts found at the site tell a fascinating story of the people that resided in the valley).
What became of the old capital of Antigua was a history in the remaking. From 1773 and onward, this left Antigua, which at the time, was not just the capital of territorial Spanish Guatemala, but all Latin America (Guatemala did not attain independence from Spain until 1820) to become isolated while a population exodus continued advancing towards Guatemala City.
Over the next one hundred and fifty years, the older capital, complete with multiple Catholic monasteries, churches and ruins from disastrous volcanic eruptions fell to disrepair. With little recourse, the small town became a blip on a map, only recently being recognized as a very significant and beautiful cultural site worthy of recognition in this part of Central America.
Antigua continues to be the prime location for real estate for ex-patriates as it is relatively close to the Capital (45-minute drive outside) and offers a plethora of services catered towards those with discretionary spending. Connected to the Casa Santa Domingo five-star resort is the namesake Museum, complete with baroque style architecture, more magnificent ruins and various crypts of bygone eras, each paying homage to the individuals that have passed onward before us. Surrounding this rather large complex are smaller boutique hotels, each offering a high caliber of service that is nothing short of excellence.
The architecture of Antigua is more Castellan Baroque than it is Central America. Here, one can see the influence that began with the arrival nearly three hundred years earlier when Christopher Columbus sailed past the Caribbean coast of modern day Guatemala on his fourth and final voyage to the new world. Twenty years later, a second explorer, that of Spaniard Hernan Cortes, would decimate what remained of the indigenous Mayan population, long after the they disappeared from the ancient metropolis of Tikal, Copan, Yaxha and other Mayan cities.
History shares of horrific pillaging of villages, looting for gold, jade and other valuables as far South as Honduras and as far north as the Yucatan Peninsula[v]. Those that survived massacres, eventually succumbed to European disease including smallpox. Today, Antiqua retains the architectural influence of not only Columbus, but also Cortes, complete with its mesmerizing cobblestone streets reminiscent of a hidden, lost city with very active nearby volcanoes.
Understanding the background of Antigua helps one to recognize that the city, less than 45 minutes outside of Guatemala City, is protected by standards set forth with UNESCO and implemented by those who live and work. The quaint streets, with the delightful Parque Central, a litany of benches, water fountains and perennially blooming trees with purple flowers allows one to simply appreciate and live for the moment. Antiqua is also where traditionally, ex-pats from other countries have settled, be it short term, such as NGO corps enlistment or long-term, establishing roots in the village. It is also here where one can absorb all life has to offer, a complete selection of people watching and entertainment.
The sterile, plastic wrapped lives where many privileged tourists come from, is taken off, exposing them to life experiences that is really a fitting microcosm. Ironically, Antiqua offers the essence of hope as a modern-day incubator for future, aspiring businesses that desire to provide services and comforts for both locals and ex-pats.
Much as it is the case with its neighbor to the North, Mexico City has a firm establishment with many European and American corporations. Such is the case, although on a limited scale with Guatemala City. Long-standing corporate ties and fluid transactional agreements, complete with at-will visa’s allowing for trade is firmly entrenched into the mindset of corporate dignitaries who work between the two countries of Guatemala, Mexico and the United States. Yet, the dichotomy between how trade has traditionally been viewed is birthing a new movement, one that is rooted in social justice and sustainability; creating a partnership that permeates with lasting relationships in which trade is not one-sided, but of benefit for all. This applies to all aspects of business, whether it be manufactured trades or eco-tourism.
Guidebooks share how tourists are expected to utilize the concept of propina or tips appropriately. Many restaurants are adding a value-added surcharge of five to ten percent automatically to receipts, which is standard and far below that of the counterparts in the United States. Service will certainly be above par, and of value. Here, once can see through the prism of collaboration that is beneficial for all at the local level.
As one easily explores, there are the ubiquitous tourist traps. Stepping inside the Mercado de Artesanias requires one to orient themselves before venturing about. The market is a great example of the sole-proprietorship concept at the grassroots level. As one strides through the aisle, there are the occasional stray animals, children barefoot about, lighting restricted to what filters through during the day and the occasional fluorescent tubing. Although these aisles are jammed with authentic leather backpacks, replicated wooden masks, colorful paintings; several of these vendors may belong to a cooperative, where if one item isn’t available, they will quickly search it out with a neighbor in a nearby stall to complete the transaction. Vendor stalls are reminiscent of antiquated, indigenous traditions, some with their wares on a wooden tables or even traditional woven blankets on the floor. These vendors are ingenuous, very much the trend of marketing local resources that would otherwise go to waste. There isn’t any reference to display pricing on items for purchase. Although this can be disconcerting; by its very nature, it opens the flow for conversation that Westerners may appear to be caught off-guard. Here one might suspect the protagonist in the movie offering a slight of hand or the potential for a pickpocket to venture about, waiting for a prime opportunity. Yet, more than likely, taking a few simple precautions will negate that aspect of an inopportune moment.
Firmly embellished into the daily shopping experience for tourists is price comparison. Unless shopping at the area supermarkets, one must rely on background knowledge, value of said product, what one is willing to pay and ideally, be satisfied that the price point in agreement is appropriate, providing sustainability and an agreement that ends on a positive note.
Venturing outside to the courtyard, additional artisanal stalls can be found selling fresh fruits, vegetables, etc., each indigenous individual dressed in their most professional, Mayan attire, advertising their wares and reaching out for that personable initial connection. Being open to conversation and interaction, is peeling that plastic wrap off life. There is a genuine interest in who is being approached as increasingly, ex-patriots or ‘ex-pats’ are making the city of Antigua their part or full-time home. One cannot experience the vibrancy that commerce offers here, knowing right around the corner could be the very same items with price tags, or a supermercado lurking nearby with ATM debit/credit machines offering efficient and safe transactions.
Granted, these vendors are not making millions of quetzales (Guatemalan currency) but the living standards are rising faster than in established, first world countries. Transportation options abound, some drive a car, but more than likely, a moped or motorcycle will be the logical choice. Tuk-tuks are sometimes reserved for tourists, although in the evenings this is where they’re heavily utilized to transport workers home in the nearby vicinity.
One cannot escape the understanding that abject poverty abounds; the takeaway is that these mercados, complete with culinary items not in packages, but presented as ‘hands-on’ piles are readily available for both the tourist, the ex-pat and those that live resourcefully.
These shopping experiences offer locally sourced items to be sure, but they’re a far better option for independent proprietorship than an employment alternative of third-world modernity of the maquiladora or sweatshop factories. Behind each vendor is a smartphone, complete with the latest data-plan, watching sports, digital messaging their friends in between visitors. Selling here might not be what they desire to do, but most would concur it is far superior to being drugged, sexually abused in a factory or worse, working in a large international superstore with no breaks for ten to twelve hours a day with one day off weekly.
Expatriates and visitors alike, whether it be short or long-term, would best facilitate the process in all aspects of their lives by partaking in some semblance of cordial negotiations. In doing so, they’re establishing an initial relationship that recognizes the value of both parties. Expatriates can become positive ambassadors that promote dialogue and commerce. These transactions are conducive, sustainable and leave little room for both parties to become disillusioned.