The (Mis)Adventures of Me: PRICE CONTROL GONE BAD

Tuesday, February 05, 2008

PRICE CONTROL GONE BAD

So the city of Maputo is blockaded today. As we all now the war in Iraq is going so wonderfully and just pouring oil on to the global market so we all have access to whatever we want. Oh wait, that's what the president thought would happen, but that is not what is happening. We've basically managed to close Iraq off of the market and shoot ourselves in the diplomatic foot – but I don't want to get into that. What I want to talk about is what is happening in Maputo today just in case anyone hears about it. Kenya news made it home even before I did so I just want to be careful. First thing, Maputo is 500 K away from me. That's 310 miles and the floods up north are 1000 K from me. That's 620 miles. So I'm safe by long shots on both sides. I actually wish it would rain a bit here. Just a little bit to keep the dust down and everything. Anyway, the bus fare in the big cities in this country is absurdly cheap. Most cities only have it pegged at 5 meticais. That 20 American cents. Gas has recently gone up to 35 meticais per liter. There are 3.75 liters per gallon, so if gas can cost $5 a gallon here in what was once the most destitute country in the world, it can go up in the States no? All of these prices are causing consternation amongst the "chapa" owners and operators around the country. In Maputo, the privately owned buses are raising the price of a ticket 100 percent from 5 meticais to 10. That's a steep jump for people who earn very little a month, but that's just the thing, people in Maputo don't make nothing a month. There are substantial amounts of NGOs and foreign companies that are now scrambling to get into Maputo and they pay western salaries. So I don't understand why this is happening. The drivers want the raise in fare, the government says no, (good communist price control here) the drivers say lower the gas prices then. The government says we don't have control over that. The drivers say SCREW YOU then and blockade the city, tires a burning and the city is stopped. I'm kind of envious of this all for one and one for all attitude. Let's see though if anything can be accomplished. In the meantime, I have bought myself a bicycle to get to and from work.