If you haven’t already, check out Part I of this post here.
Wasted time and energy in the execution of seemingly routine “financial” endeavors are just as much of an issue in development as not having access to public services in the first place. Below, I continue the list of the indirect costs of financial transactions that are potentially keeping the Poor, poor, in Quibdó, Colombia.
#4 Dealing with the Banks (#5 waiting in lines for hours, #6 having to leave the banks in groups). Underserved communities like Quibdó usually do not have adequate public services. The town has about 5 banks and a population of roughly 100,000 people. On your average day, one can expect to spend at least 90 minutes at the bank before you can speak with a cashier. Payday, I went to the bank to cash a check and about 100 people in line watched me receive and count out about $1,500 USD. There was the option of a police escort, but no one ever actually accepted the offer and I didn’t want the unwanted attention. To prevent robberies, the security guard kept the door locked and would only un-lock the door when at least 10 other patrons were also ready for leave. Leaving the bank discreetly was not going to happen. NOTE: I usually had a male friend escort me or at least wait for me outside.
#7 Dealing with the ATM Lines. Quibdó is a cash economy. It’s a small, undeserved town, so this is understandable. There were only a very select number of ATM’s in the city. My memory tells me there were about eight. Often times, patrons have to visit a series of ATMS before they can get service. I have done this. The number one problem is the lines. If it’s the weekend, lunchtime, or the day of an event you can expect at least 30 people in line to use each ATM in the city. This process usually takes a solid 45 minutes or more. Then when it’s your turn to use the ATM, you would usually discover one of two things…
#8 The Machine is not reading cards. This usually only happens to one of the two ATMs available in each spot. I figured out, however, if you slide the card in SUPER-slow motion the ATM will eventually read it. Therefore, this issue can be overcome, the next one, however, eh, not so much…
#9 the ATM runs out of money. You’re next to use the ATM and the person in front of you turns around and lets you know that “no hay plata.” The ATM is out of money. Everyone in the line says “ugh,” annoyed, then you see everyone start to scramble: jumping on their motos and running around the corner in order to beat everyone else to the nearest ATM.
What are some other indirect costs related to financial transactions, that potentially affect the well-being of poor people around the world?