On the Brink of an Economic Crisis

March 1st, 2008 La Encantada, Peru

On the Brink of an Economic Crisis

Due to the constant downpour, I believe La Encantada is on the brink of an economic crisis. The next few paragraphs will describe the economic plight faced by those who earn a living in my site.

Artisans: The artisans are unable to produce ceramics for sale because there is no clay because the clay producers are unable to keep their pits dry enough for the two days required to produce clay. There is not enough dry wood to fire pieces. Finally, the artisans can´t smoke any pieces which would otherwise be ready for sale because all the mango leaves are soaking wet. Normally, 30 to 40 tourists visit town daily but due to the rain and the road conditions we are lucky to get one unexpecting tourist family per day. Needless to say, the artisans are in dire conditions. So are all those who work within the rest of the economic chain in support of the artisans.

Farmers: The farmers don´t have it so bad. Although some of their fields may be flooded, most are excited about the crops this year should definitely yield. Those who own their own fields are excited and can wait out these down times but those who work as day laborers are sitting idle and penniless. Everyone worries if the rain doesn´t cease soon there will be no crops at all this season.

Taxis Drivers: The dirt roads are horribly muddy. Therefore the usual 20 minute ride into town takes at least twice as long and leaves its passersby splattered with dirty water. Thus, traffic is down about 80%. Supposedly these conditions are very rough on the maintenance of the vehicles.

Others: The economy of La Encantada is not very complex but quite interlinked. The shop owners earn less due to a combination of higher prices and the fact that everyone has less disposable income. The mechanics have less work because far fewer trips are being made to town due to road conditions.