A lesson in Gringo

by Marshall on February 16, 2011

Ever heard the term “gringo”? Ever wonder what it means?

The meaning of Gringo

Spanish-speakers use the term “gringo” to refer to Americans, white folks, and/or any foreigner. Some consider it a derogatory term, but really it depends on the context. To the vast majority of people, it simply means “American.” In some contexts, it refers to negative perceptions of American behavior/attitudes…He thinks he owns the place, how gringo of him. You just have to know the context, like any other word.

There are some variations on the word:  gringa = American girl/woman; gringolandia = USA…leave a comment below if you know any more!

The origin of Gringo

The popular story that most everyone believes (including me, before today), is that the term originated when US troops invaded Texas/Mexico in the 19th century (Battle of The Alamo – 1836). The Americans were wearing green coats, and the Mexican soldiers defiantly yelled, “Green, Go!”…or something like that. From there, the term spread to the rest of Latin America and Spain.

Wrong.

The less dramatic but more truthful version (which I only just learned) is that the term originated in Spain. It was most likely a variation on the word for Greek, “griego”…and referred to a foreigner. If you need evidence, look no further than the 1786 Terreros y Pando’s Spanish dictionary (Diccionario castellano con las voces de Ciencias y Artes y sus correspondientes en las 3 lenguas francesa, latina e italiana) which says (translation):

‘gringos’ is what in Malaga they call foreigners who have any kind of accent which prevents them from speaking easy and natural Castillian [Spanish]; and in Madrid they give the same name in particular to the Irish.

Other scholars think it might have come from (pere)gringo, meaning ’wayfarer, stranger’. Either way, there are numerous sources that prove the term was used long before the US-Mexico incident.

Now you know.

Gringo Sightings

Your typical gringo is not particularly adept at blending into Latin American societies…especially tourists. This is why:

2 gringo tourists somewhere in Latin America. This is why they make fun of us...

No, I’m not too proud to cite Wikipedia as my main source.

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Bottom-up message, top-down approach

by Marshall on February 4, 2011

It’s good to consider others’ experiences with the US abroad. One learns a lot.

For example, what if you had been born in Egypt? Let’s say in 1981. For your whole life, you’ve lived in a country ruled by a single man, who has set up the government to maximize his power over you. He, along with his government, is corrupt and unjust. You’re pretty poor, and pretty frustrated.

Then, let’s say there’s this other nation that says it wants to help you. They are willing to spend hundreds of millions of dollars in programs to improve your quality of life, somehow. Even more, they say they stand for freedom and democracy.

And then this happens:

Take it away, Laura Freschi:

The categories used are from research by Simone Dietrich, who explained: “Public sector captures US aid flows to Egypt that directly involve the Egyptian government in the implementation, ranging between budget support and technical assistance. Bypass aid, on the other hand, captures aid that flows ‘around’ the Egyptian government and is implemented by multilateral organizations, NGOs, or private contractors. ”

So, has US aid been better at supporting the Egyptian government, or the Egyptian people?

You can draw your own conclusions.

Data source: AidData. HT AidWatch.

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Mediocre American Musicians Invade the Dominican Republic

by Marshall on November 16, 2010

In the 5 weeks I’ve been in the Dominican Republic, I’ve seen some strange things. Not much has been stranger than the various concert advertisements I’ve seen around town. Liza Minelli’s face looming above a busy intersection was the last straw; I had to investigate.

First it was the Jonas Brothers at the Olympic Stadium on October 16. Thanks to these modern-day Mozarts, I got to see this poster all over town. According to reports, the concert ended early due to technical difficulties with the sound. But we all know the real reason.

The Brothers Jonas fled the stage to pursue their true passion...hitting up the sale racks at the local H&M. "Their blazers are so rad," said Jonas J. Jonas. "The sleeves roll up just how I like."

Then came Yanni. Except his Nov 13 concert was postponed entirely. Which is eerily similar to a postponed Nov 2009 Kenny G concert. For shame. It’s been a rough year for the New Age piano and smooth jazz crowd here in the DR.

And now Liza, headlining a national film festival. What will be her fate? Perhaps a severe bout of vertigo will cause her to truncate her performance.

Lucille...I mean Liza's Dominican popularity is dizzying.

Who could be next? It’s mere speculation, but in showbiz all roads lead to…Bieber!

Got Bieber?

Sarcasm aside (this post is dripping with it, just to be clear), all these sub-par concerts got me wondering. If you had to pick one musician/group to represent America to the rest of the world, who would you choose? Who would really do us proud?

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Look at the pretty map

by Marshall on November 8, 2010

I’ve always liked maps. Growing up we had a world map on the wall next to the kitchen table, which we would study and quiz each other about (capitals, flags, etc.). Back then, Russia was still the USSR, Ukraine was still behind the iron curtain (along with those ‘stan’s), and Pluto was still a planet. I know, stone age.

I came upon the map below as I’ve been following a string of articles/posts about the Midwest and the importance of local knowledge. Summary:

Apparently St. Louis and Milwaukee missed the Pop memo. Seems like grounds for banishment from the midwest.

This map is great, and while it isn’t a perfect standard for regional delineation, it reflects a lot more knowledge than a well-intentioned East Coast journalist.

Moral of the story? Local knowledge matters. Local knowledge is the knowledge that people in a given community have developed over time, and continue to develop. It is based on experience, often tested over centuries of use, adapted to the local culture and environment, embedded in community practices, institutions, relationships and rituals. In business, politics, science, journalism, economics, and development, local knowledge matters. Grand plans fail because they rely too heavily on centralized knowledge (over-confidence of central planners) while ignoring local knowledge.

A warning from Mr. Easterly:

So just to sum up how far a columnist can get without local knowledge, Mr. Brooks has produced some interesting facts that were not facts about a Midwest that was not the Midwest.

(Just to be clear, I have nothing against Mr. Brooks. He just happened to make an honest mistake we can learn from.)

BONUS:  I looked through some of the data from the Pop v. Soda v. Coke map. Turns out a sizable minority of my fellow Illinoisians call soft drinks “sodie.” Three even call it “Bumpkin.” If you are one of them, please explain yourself.

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6 challenges to microfinance in the US: 4-6

by Marshall on September 20, 2010

Last time, I listed a 3 reasons why microfinance hasn’t been successful in the US. Here are 3 more challenges (again, not in order of importance).

4. Stricter regulatory environment in the US creates barriers to entry.
Developing countries tend to have large, dynamic informal sectors where regulation and taxes are largely absent; businesses are started every day without the aid or authorization of the government. In the United States, businesses face a series of discouraging regulatory hoops:  permits, taxes, and licenses, where, in the United States, business owners face the task of having to apply for, and manage, the various permits, licenses and inspections which must be obtained before legalization. Adding in taxes and other operational regulations is enough to discourage many from attempting to run a micro-business.

5. Government welfare programs discourage the poorest in the US from working, acquiring assets, and taking on entrepreneurial risk. Examples:
• If you purchase an expensive sewing machine in order to become a dress maker, you now have an asset that reduces your welfare benefits;
• Many leases in public and subsidized housing prohibit you from running a business in your home;
• Limits on vehicle equity value, a practice of counting business assets as personal resources, make it difficult for entrepreneurs to keep business and personal accounts separate;
• Rules prohibit self-employed recipients from deducting costs of capital, purchases, depreciation, and repayments of loan capital in calculating gross countable income;
• A loss of welfare benefits if you work more than 100 hours a month.

6. Poverty needs are much greater outside of the US.
To put it simply, the floor is higher in the United States (or Europe) than it is in developing nations. People starve frequently in DR Congo as compared to the United States. Even where poverty is quite severe by US standards, having the opportunity to earn (only) a little more cash by starting some kind of business is perceived by many as not worth the risk or effort. In less developed nations, the efforts required to be successful are likely to produce quite measurable benefits for individuals and their families; they will be noticeably better off. If that loan and its renewal stood between the individual and starvation, it would be paid off. Otherwise it can be perceived as a windfall, something like winning the lottery.

This list is merely an explanation of past challenges. Hopefully we’ll be able to make microfinance work someday, or develop an even more innovative solution to poverty. In the meantime, this reminds me of the unintended consenquences that government policies can have on the poor. And it shows that a “one size fits all” approach to helping others rerely works.

Further Reading:

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6 challenges to microfinance in the US: 1-3

by Marshall on September 17, 2010

If microfinance is so great in other countries, let’s bring it to the US!

A lot of folks have shared this thought (myself included). Maybe its a surprise, but its already been done. Well, “attempted” is probably a better word. As early as the 1990′s (I know, pretty ancient) groups like the Grameen Foundation started experimenting to import microfinance to the US. So, far it hasn’t really taken off. How come? Good question.

1. Group cohesion is more rare in the US.
Micro-lending models used by organizations like HOPE International, Opportunity International, and the Grameen Foundation depend on group lending for loan repayment accountability, training, and sharing of best-practices. High degrees of trust and friendship are necessary for group loan effectiveness. In the US, this level of group cohesion is not the cultural norm. Few poor people have 4-5 friends they consider trustworthy who are also interested in running their own business. Artificially constructed groups are ineffective and often break up over time.

Even trust falls can't solve group cohesion problems...

2. Lower population densities increase microfinance operating costs.
In many developing nations, the poorest members of society live in densely populated areas. Microenterprise institutions can serve many through fewer locations, which lowers operating costs. In the US, however, population density is lower, and the cost of delivering microfinance services increases. (Yes, even nonprofits have to worry about the bottom line.)

3. US markets are much less localized, limiting the types of small business opportunities.
Microfinance is successful in economies characterized by small and highly localized markets. In that setting, it takes little capital to insert oneself into the system. In the United States, however, there are international, national, and state-wide markets. Products like milk are available in supermarkets or grocery stores, and the amount of capital needed to enter a production and distribution network is likely to be substantially larger. So a micro-enterprise loan will only be helpful for small, local service-oriented businesses (rather than businesses selling goods), and only services not easily connected to a national or statewide distribution system.

Stay tuned for reasons 4-6…

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