Third World Catemaco

Okeechobee, Florida is almost a match for Catemaco, Veracruz.

Both are counties, with the principal city also named after the county. Both sit on the shore of a major lake, and both are near oceans, (Atlantic and Gulf). Both are principally agricultural, and both are are considered hick towns, with per capita income on the low national scale. 

The major difference is that Okeechobee is flatter than a tortilla, while Catemaco is nice and hilly. Populations are similar, 42,000 for Okee and 48,000 for Catemaco.

And now the grim comparison:

Okeechobee has a budget of 96 million for the year, which converts to 2,285 dollars per person.

Catemaco had a budget of 104 million, translating to 2,166 pesos per person. That's about 180 dollars each.

Okeechobee estimates for 2009 per capita income are 18,394 dollars.

The state of Veracruz thoughfully does not report such irrelevant statistics, therefore I'll guess it.

Catemaco 2009 per capita income  was 25,000 pesos per year on the high end. That is app. 2,083 dollars each.

So very roughly, Okeechobeans are 10 times richer and spend 10 times more on their government than Catemaqueños.

Now compare that to housing, utility, food, transportation, entertainment or any other costs.

Except for some housing and maids, there is nothing in Mexico that costs 10 times less than in Okeechobee. Costs are much closer to 50 to 100% or more of what gets spent in Okeechobee.

And now wonder about:
Mexican exports to the United States reached a record US$229.7 billion last year.
The banking industry’s profits in Mexico reached US$6.22 billion in 2010.

And read the recent Wikileak article about the richest men in Mexico and the state of its economy.

http://wikileaks.ch/cable/2008/07/08MEXICO2187.html

Get rich quick in Catemaco

How would you like to lend money at 63% simple interest, secured by gold jewelry valued at 50% of its scrap metal value?

And you do not have to worry about government fiduciary laws and regulations. There are none.
If you like the idea, come to beautiful downtown Catemaco, and open a pawnshop that only accepts gold. No guitars, diamonds, TV's or chainsaws accepted.

Until four years ago, Catemaco had no pawnshop, and one itty bitty bank. Today the fourth pawn shop opened its doors.

Pawning is just about the only financial resource for people without access to bank or personal loans. That means poor people. They can obviously afford the interest and risk.

Catemaco Dollars

Hopefully you are one of the rich gringos or drug lords travelling with stacks of 100 dollar bills.

WATCH OUT!

A new 100 dollar bill was recently introduced. My experience in beautiful downtown Catemaco and the rest of Mexico has been that money changers and banks refuse to accept old bills. I imagine within a few months that will include anything except the new C note.

Catemaco Lamp Posts

Did you know that Mexico's most famous pyramids at Chichen Itza are actually privately owned and the Mexican government is having a hell of a time trying to turn them into a "patrimonio nacional".

"Patrimonio Nacional" is one of those famous catch words in Mexico. Basically it translates to national assets. This applies to lamp posts as well as pyramids. So if you crash into a post when leaving your favorite cantina you will likely be accused of having damaged "Patrimonio Nacional" and will go to jail, unless you carry big bucks or an insurance carrier with 24 hour service.

On the local level I am constantly surprised to learn that anything worthwhile seeing is actually in private hands or access is controlled by them.

Most notable are the red rock cliffs on the way to Catemaco. Many travel writers have erroneously described them as Olmec workshops, without knowing that the 100 or so owners of the ejido (co-op) of Angel R Cabada actually own them and make a fortune off the cliff's gravel, when roads are constructed anywhere near there.

The georgeous Eypantla Waterfall is actually a 50 year concession to the 102 ejidatarios of the nearby pueblo. Every entry fee from the up to 2000 visitors per day goes into their coffers, and unless the local government chips in, not one centavo is used to keep the tourist facilities in good state.

Poza Reyna (aka Poza Reina), a magnificent set of rapids and cascades along a river about 15 miles from Catemaco is definitely Patrimonio Nacional, in the sense that 5 meters along the side of a river's highest flood level is federal property. Instead, a super rich owner from San Andres collects 30 pesos per person to cross his private property to get to the river. He graciously provides an outdoor toilet and parking.

Cola de Caballos, a magnificent waterfall, featured in numerous commercials and publicity drivel about Los Tuxtlas, is another case. Access is  through private property with up to 10 cattle gates or an obligatory hike through ejidal land that slithers down a dangerous precipice while collecting guide fees . Although federal and state sources are spending 10's of thousands of dollars to accomodate an ecotouristic project, apparently no pesos are available to provide a few steps and public access.
 
There are a dozens of similar locales in Los Tuxtlas. By the time I add all the nitpicking private fees within the so called Biosphere Reserve to the measly 20 pesos that the "vaunted" reserve keeps unsuccessfully trying to collect, a few days  in Los Tuxtlas can financially mount up to a day in Disneyworld , Orlando.
 
Tht is not only true in Catemaco, but throughout Mexico.

Catemaco Mail Order

Beautiful downtown Catemaco of course has internet access to amazon.com, ebay.com and all the other mail order houses. Unfortunately many companies will not ship selected products to Mexico.

I want to buy a replacement digital camera. Amazon quotes it at US $279, but will not ship. Several competing photography dealers WILL ship with prices that are a little higher.

AHA. Now comes the question of why Amazon will not ship and the others will! The answer lies in rules related to country of origin and application of import duties. These rules and duties are so complicated and so subject to interpretations that only a professional customs broker might understand the half of it.

Let's just say, that Amazon thinks that because of these rules I may get an amazing customs bill, because the camera was manufactured in Japan. Other dealers could care less of what happens after they ship an item.
But I really do not know.

There are various ways to ship small merchandise to Mexico, the airborne carriers FEDEX, UPS and DHL, and the US post office. 

The US post office connects to the Mexican post office and is generally reserved for people that love to pine for lost things. The exception may be US International priority mail, which is reputed to arrive relatively fast (5 to 14 days), usually does not get stolen and, THIS IS THE BIGGY, is reputed to be usually ignored by Mexican customs.

The airborne carriers all charge between 45 and 65 dollars per small package and WILL enter the Mexican aduana (customs). Generally the minimum charge will be the equivalent of Mexican 15% IVA (sales tax), plus, depending on the customs inspectors hangover, applicable duties which  range as high as 1000%  for footwear supposedly flooding the land of huaraches (sandals).

Ok - back to the camera. Should I buy it from B&H for $289, plus $50 shipping, plus $40 IVA and handling for a total of US $379, PLUS a possible duty charge? OR spend the equivalent of  5700 pesos Mexican (app. US $438, which is the cheapest price advertised on Mercadolibre, (the Mexican EBAY)) which has considerable shipping , payment and delivery problems?

After spending sleepless days over the problem, I am now processing a reservation to take a dirt cheap ($ 50) flight from Veracruz City to the Mexican border near McAllen via Vivaareobus, buy the camera at Walmart, pick up some Horseradish, buy some needed 10 dollar polo shirts that don´t shrink and maybe a nice little 4x4.

Quick response from my friend "Fool on the Hill"
Good article.
Well, maybe I’ve just been lucky; but 30 years with the past ten averaging 4 to 5 shipments per month – that’s a lotta luck. I will admit, I have heard some horror stories.
My exception would relate to “. the Mexican post office." . In 30 years I’ve lost mebbe five packages; and way back when, everything came parcel post. Just this month I received an LL Bean order USPS Parcel Post; only way they ship other than carrier.
Defense:  In my first 2 years in Catemaco I lost 1 out of 4 mail packages (2002). The Catemaco post office apparently loves the Fool..

Catemaco

I've been checking some statistics of beautiful downtown Catemaco and am thinking of changing my favorite phrase to "depressing downtown Catemaco".

On a financial health scale, Catemaco ranks right in the middle of 2458 Mexican municipios at 1303.

Of a total population of  46,702, 9,441 are illiterate and 20,037 adults did not complete primary education
1,206 have no toilets, 2,709 lack electricity. 4,030 have no piped in water. 21,519  live in overcrowded houses and 5,668 live on dirt floors.
32,172 (69%) make less than 2 minimum wages (US$7.50 in 2009).
and 100% cannot drink tap water.

Expenditures for 2008 were app. 73.8 million pesos, about 1,580 pesos per person (US$120 in 2009).
Of course figures for income per capita or total tax revenue is a federal government top secret.

The figures are from 2005 and you can look up your own favorite location at CONAPO.

Meanwhile this time of year "gorgeous downtown Catemaco" is in full bloom, and even broom sticks are flowering.

Interesting Catemaco

While the US federal bank rate is virtually running at 0 (.25%), rich Mexico can still afford to peg its rate at 7.75%. While a mortgage in the US will cost you around 5.5%, the poor in Mexico are lucky to get something around 12% with a 25% down payment.

Here in beautiful downtown Catemaco, Veracruz, nobody worrries about mortgages, because there virtually are none. Almost all  homes are owner financed. Other credits are what's killing the local and national entrepreneurial spirit. Credit card rates are routinely near 40 %,  car loans, if you are lucky, around 20% and if you are unfortunate to use one of the zillions of unregulated pawnshops, which provide most of the credit needs of the lower classes, you can expect to be raped  above 100%.

The 10 families who basically control Mexico, could care less. And neither could Mexico's Walmart which has a nifty 69.9% credit card.

Nope I am not making this up, read more here:: In Mexico, credit is available - at a 70% interest rate

Catemaco Bucks

Los Tuxtlas, famous for its magnificent environment, is also the hunting territory for 100´s of predators making a living off well meaning research institutions and governments.

While researching Catemaco and Los Tuxtlas I am constantly amazed by the number of organizations and dollars / pesos expended on activities in Los Tuxtlas.

By now, I would expect Los Tuxtlas to be paved in gold, with every inhabitant driving a large sport utilty vehicle, and buying frozen enchiladas..

Although that is apparent in a few instances, the rest of Los Tuxtlas is as usual, totally impoverished, with tens of thousands stretching for politically scheduled hand outs.

Anecdotally:
A known Catemaco biologist reams international fund for dinero, buys late model SUV and plants 24 trees.
The last mayor borrowed 16 million pesos, made them disappear and nobody cares.
There are at least 100 basketball courts in Los Tuxtlas, but only very few communities actually own a basket ball.
Lately all the "right" people and communities are getting greenhouses, which usually last a season until the seeds are used up, or the housing blows away.
Next month it will be mini pig farms or maybe tractors, boat engines or 18 speed hair dryers to promote self employment.

Considering the monies being spent on "do good"  projects in  Los Tuxtlas and the rest of  Mexico, I do keep wondering where it goes. Maybe that is why so many former government employees from the US are retiring her.

Catemaco invasions

One of the favorite pastimes of have-nots in beautiful uptown Catemaco and the rest of Mexico is a game of "invasion de predio". Loosely translated as "invasion of property" the game is to occupy a parcel of land that appears unoccupied or is known to be in the dire straits of Mexican title laws, usually because of inadequate intestate property rules or infrequently because of land hunger for federal or private lands by impoverished native peoples..

This game is usually supported by "haves" with political power who play this game for political reasons, namely future vote getting and a share of the profits.

These invasions occur in such touristic places like Cancun and Baja California but are much more popular in unmentioned corners of the other 30 states of Mexico.

A common version of the game starts when a few or few hundred persons decide to take posession of a piece of property by entering it, setting up a shack, fencing it and frequently posting armed guards (usually machete bearers). Usually it requires the knowledge of someone well versed in the local politics and deed registrations to pick properties to be invaded. And frequently that involves local government officials intent on vote getting and a share of the profits.

If there is no legal contest to the invasion, usually within a half dozen or more years, squatters receive titles to these properties.

If there actually is an owner, often sparks begin to fly to the point where land squabbles produced some of the highest kill rates in Mexico before the advent of the drug war madness.

A legal contestation will drag through courts 2 , 3 or more years. Many property owners therefore avail themselves of extralegal means such as paid off federal or state police agents to dislodge the invaders. That's where often the bloodshed comes in.

I have watched two of these confrontations in Catemaco and am now personally involved in one. And I do not understand the legalities which allow this perversion of land ownership from an owner's viewpoint, except under the Mexican concept of "guilty until proved innocent". Simply producing a current deed and getting the local sheriff to evict the squatters does not work here.
The legal machinery goes into motion and unless very well oiled with payoffs will cause nightmares to property owners.

So next time you see giants walls or fences around most every piddling piece of unimproved terrain in Mexico, maybe these remarks will provide you with a reason for their construction.

Catemaco Matresses

To fatten the Mexican treasury, lawmakers approved 2 new laws to enhance Mexico’s economic development.

ONE - they raised the gasoline tax - because they are bleeding the monopoly PEMEX oil company to death, and TWO - the Mexican equivalent of the IRS will collect 2% on any deposits totaling more than 25,000 pesos per month, probably because one third of the Mexican economy neither files nor pays taxes.

Consequently beautiful downtown Catemaco will see a surge of the traditional financial institution “Under the Mattress, S.A.”, and local merchants are hustling to place their orders.

Catemaco BIG is beautiful

Being rich, handsome and driving a giant SUV is possibly the biggest status symbol in Mexico. (Probably in the US, too). Unfortunately the rich to poor distribution in beautiful downtown Catemaco is a little out of whack.

Catemaco, of course, is a tourist destination, so the frequency of Cadillac Escalade, Mercedes, BMW, Hummer, and volcanic dimensioned Ford and Chevrolet models may be excused as neighboring cities visitors out for their weekend SUV drive.

But, in my almost daily walks around Catemaco City, I see a lot of these cars parked in front of homes, possibly worth half as much as the car. Of course I cannot see the cars behind the customary 8 feet walls that any self respecting Mexican will erect to revert to his possible "gachupines" (Spanish born) roots.

Nevertheless my latest table napkin calculations show that there are more expensive cars in Catemaco than what the Catemaco government receives as its allowance from the state and federal governments. (Less than 6 million dollars).

And here I thought I was living in an impoverished area of Mexico.

Mexico Cucurrucucuuuuu..

The new 20 peso bill dropped the proud Mexican eagle for a chicken or a dove, depending on your gastronomic view point.

Next, the bureaucrats of Mexico will probably want to change the name of the country from “United Mexican States” (Estados Unidos Mexicanos) to “Mexico”, to stop this endless confusion of which Estados Unidos Mexicans would rather live in.

Rich Mexico

Mexico has 7 of them, including the third richest person in the world. The rest are just the usual bunch of oligarchs monopolizing most of the business in Mexico.

#003 Carlos Slim (MEX) 49,000 billion

#158 Alberto Bailleres (MEX) 5,000

#172 Ricardo Salinas Pliego (MEX) 4,600

#194 Jerónimo Arango (MEX) 4,300

#458 Emilio Azcárraga Jean (MEX) 2,100

#557 Isaac Saba Raffoul (MEX) 1,800

#583 Lorenzo Zambrano (MEX) 1,700

#618 Alfredo Harp (MEX) 1,600

#98,075,440 Alberto Ortega 0

From Huffington post:

Alberto,43, Mexico City, Mexico. Net worth: a pair of pet crickets.

Alberto comes from Michoacan where he raised corn on the family milpa, as his ancestors had for centuries. Post-NAFTA, hardscrabble Al couldn't compete with US-Congress-subsidized corn flooding Mexico, courtesy of Archer Daniels Midland. (Best known ADM partner Donald Tyson tragically fell OFF the current Forbes 400 Richest this year: couldn't make that $1 billion mark boo-hoo-hoo!).

Alberto moved to Mexico City where he lives in a drain with wife Concepcion; together they make a peso a week picking over waste at the local Wal-Mart de Mexico, thus trimming disposal costs for the Walton family (total net worth $78 billion, #6-#11 Forbes 400) and fellow Mexican Jeronimo Arango (net worth $4.3 billion, world's #194 richest man).

When Al has a nickel to his name he bets on the ponies, boosting off-track mogul Emilio Azcarraga Jean's bottom line (Net worth $2.1 billion, world's #458 richest man) and dreams of owning a share in a cellphone so he can keep in touch with Concepcion when she has to turn a trick, putting more dough in the pocket of Mexican Tel-com Bandito Carlos Slim Helu (at $49 billion net worth, world's #3 richest man - and that's in dirt-poor Mexico!)

Catemaco chicken

Here in beautiful downtown Catemaco, Veracruz, the chickens apparently came before the eggs, instead of the other way around. Juicy rotissery grilled chicken, plus a handful of tortillas, rice and sauce command 30 pesos. Granted, these chickens are closely related to pigeons in size, but what the heck, this is a cheap feast for two.

Considering that the price of tortillas (made from corn) rose explosively, eggs (made from chickens that eat corn) jumped up 25%, and the price of tomatoes (used in the salsa) would make any farmer blush, the economic intelligentsia seems to be on a "let them eat cake" binge to placate the restive and angry local populace which is already marching around town with large protest signs demanding subsidies.

I don't understand what all the fuss is about. After all, everyone just got a 3.9% raise, (about 2 cents per day)! And many of Mexico's knowledgable economists are now proclaiming that the recent sharp rise in prices will not affect inflation figures.

That is because they don't go grocery shopping, take buses, go to museums, drive on toll roads, buy gas, or smoke. So, these economists are correct.

And they probably only eat juicy rotissery grilled chicken plus a handful of tortillas, rice and sauce for 30 pesos.

Catemaco spending spree

The work forces in beautiful downtown Catemaco are raucously celebrating the increase in the Mexican minimum wage in this area of 1.6 US cents to 47.6 pesos per day.

Actually, the daily minimum wage is calculated on a monthly basis, so the actual minimum wage will be 334 pesos for a 5 1/2 day work week, 61 pesos per work day.
At current exchange rates that is US $ 5.62 per day. So of course everyone is thankful that they have to work only 1/2 of a day to buy the equivalent of a gallon of milk, or 1/5 of a day to buy a 5 gallon water jug, or another 1/5 to buy a kilo of tomatoes. The current estimated weekly cost to feed a family of four in Mexico is 289 pesos.

Believe it or not, the minimum wage is intended to be the wage that would be sufficient to support a worker and his or her family for a day. Fortunately, at least by Mexican government statistics, there are only about 4% of employees that earn the minimum. It does not include the 35 million workers who are “disappeared” into the not counted economy - taco stands, shoe polishers, mini stores, peddlers, etc.

But, an increase is much more significant than the measly 1.6 cents that were granted for 2007. Much of Mexico is defined in terms of multiples of the minimum wage. So now the minimum income required to obtain an FM 3 visa went up also. It currently stands at 250 times the minimum wage in Mexico City. Traffic tickets are also defined in terms of minimum wages so the cost for red light running also rose (40 times the minimum wage). Other related items will also increase such as productivity bonuses, income tax brackets, service eligibilities, etc. Most other labor categories, (and Mexico pigeonholes most everyone), are also expressed in multiples of the minimum. So the other 96% of counted employees in Mexico also get pay raises.

But what is really revolting is the multiple of hundreds of minimum wages that are paid to politicians and high end bureaucrats. As an example, the Mexican Department of Transportation in 2005 paid each executive officer an average of 175,332 pesos monthly or 6,130 pesos (US $565) per day which is 100 times the minimum wage. That includes taxes, but does not include year end bonuses, 20 days vacations, and dozens of other benefits.

Many of us lament the poverty of Mexico. We are probably just envious of the many Mexican who are so rich!

New 45 Peso Bill

Beautiful downtown Catemaco, Veracruz just became a lot clearer to see, financially. A new plastic 50 peso bill has arrived, similar to the now common 20 peso bill.

Like the 20 peso bill, It has a little plastic window, so you can see what you are spending your money on. At the rate things are going in Mexico, they should have made this window a magnifier. (Prices of milk, gas, tortillas, cigarettes, etc. just went up.) Nevertheless, after the introduction of plastic 20 peso bills, supposedly lasting several life times longer than the old crinkly bills, I presume most Mexican money will soon be plastic.

Unfortunately that darn 50 peso bill still maintains more or less the same colors as the 500 peso bill and is easy to spend by mistake. But more than likely you never receive the correct change, in case you are stupid enough to confuse the two.
This is not boring “In God we trust” money, José María Morelos y Pavón, whose portrait graces the bill is quoted “May slavery be banished forever together with the distinction between castes, all remaining equal, so Americans may only be distinguished by vice or virtue”.

As anyone spending money in Mexico knows, any bill with any defect is rejected by most shopkeepers, although the official rules are not as strict:

If you have any of the following bills, they are supposed to be retired by a bank:

Bills that got wet or are bleached.

Stapled bills.

Supposedly the following bills are supposed to stay in circulation:

Bills with spots of fat, blood, paint, etc unless they hide some imprint on the bill.

Bills glued back together with transparent tape.

Bills marked with messages such as “Pedro loves Maria”, but nothing political.

Bills marked with bank stamps.

Throw these bills into the garbage:

Bills fixed with tape that is not transparent.

Bills marked with political messages such as “I love Peje”

Catemaco Stocks

There is no stockbroker within 100 miles of Catemaco, Veracruz. Nevertheless the vagaries of stock manipulations also effect this isolated community.Primarily me!I used to day trade in stocks and thought I could continue to do so while moving to beautiful downtown Catemaco.

Bad Idea! - at least when I first came here - because both satellite and land based intenet connections were not suitable to by the minute transactions. Instead I learned how to differentiate tree ferns and other vegetable varieties. Connections are a lot better now but I have become addicted to the other green stuff.

The Mexican Bolsa (stock market) recently hit an unprecedented high, which was predictable but is not followable.
The “MARKET” loves governments incapable to make changes affecting business as usual. And that is what the election of Calderon means to the market.

This current 6 year Mexican government is projected to be another Fox presidency without a constituency or parliamentary votes to make any major changes. Mexico’s oligarchs are unitedely stroking their undertaxed wallets, and stock players are betting on appreciations.

Catemaco Luck

Catemaco has many billiard tables, but no poker tables. No horse, dog, auto or turtle races. The only unofffical races are the lancha operators racing to see who gets the tourists first to monkey island. There are no “numbers runners”, no slot machines in the grocery stores, no clandestine bookies taking football wagers, no native Indians buying fancy cars off their reservation casinos, and no little old ladies spending their grocery monies on bingo.

Gambling is outlawed in Mexico.
Except to the alleged journalist killer Jorge Hank Rhon, currently Tijuana mayor, and his chain of off track horse betting, sports wagering and now bingo parlors “Caliente”. Despite initiatives to legalize slots and casino-class gambling in Mexico, casinos are still forbidden by law, with the usual loopholes.

Caliente controls 80% of the gambling market in Mexico, but recently began being hounded by another small company and the almighty televison chain Televisa which miraculously obtained permits to open a competitive chain of betting parlors. Meanwhile, Caliente is well represented in Veracruz with casinos in most major cities, including Xalapa, Veracruz City and Coatzacoalcos.

Advocates of fulltime casinos contend the gaming palaces will aid tourism in US-Mexico border cities and Mexican coastal resorts. That’s probably why someone in the Veracruz government permitted a US promotor to pay out more than a million dollars to buy a dilapidated ferry from the Virgin Islands to convert into an off shore casino in Mexico.

Unfortunately the promotor hired a captain unfamiliar with Veracruz waters, and soon after the ship’s arrival, it managed to ground itself upon one of the many beautiful fragile reefs protecting the Veracruz shore.
As of today it stills sits there. Maybe Hank Rhon hired a dive team to cement the ship onto the reef.

Meanwhile the poor, who lack the fancy clothes of the gamblers at Caliente, are limited to buy national Mexican lottery tickets. Biggest jackpot is 30 million pesos.
Big deal!! - the government take is 150 million. And the ticket costs 30 pesos, about 2/3 of the minimum wage in Catemaco. Most of the usual Mexican lotteries pay out much less, and cost upwards of 400 pesos to get a chance at the top win.

Catemaco banking

There is one inept office of Bancomer in Catemaco, and 3 other banks have ATM machines, one of which, Banorte, has a permanent cash shortage.

For any serious bank action you get to visit San Andres Tuxtla. There you learn that to do any serious banking, maybe Veracruz can help you, or maybe Puebla, but more than likely Mexico City.

That behemoth of neoliberalism, Walmart, known in Mexican financial circles as Walmex, just received approval to start banking in Mexico.

Personally, in my book, Walmart has not added anything special to Mexican retailing, except for putting spikes up the butts of Mexican national chains, and fooling their shoppers with their "lowest prices" campaign. Perhaps they will do the same to local banking, because all of the Mexican banks need a very LARGE spike .

Curiously, there is only one major bank remaining in Mexican hands. All others are multinational conglomerates, whose overseas or US customers would probably start a revolution over the local fees and inept handling of accounts.

So sorry to say, Muy Bienvenido "Banco Wal-Mart de Mexico Adelante".

What a name!

Catemaco Corruption

Mexico possibly has one of the best governments anyone could buy. And cheap, too.

In the 1840`s, the then Mexican president tried to sell what is now most of the southern US. ( Mexicans love to forget that fact). In the 1960's another Mexican president bought Acapulco, or at least the part worthwhile having. A later one, turned out to be one of the richest men in the world.

That's the big stuff.

The little stuff is that many municipal employees or their mothers buying two cars and a nice house within a year of their getting a municipal job, on a usually considerably less than 25,000 pesos a month salary. Of course, everyone knows that they skipped their lunches.

Corruption is so ingrained in small town politics in this part of Mexico that it is usually shrugged off by locals as "asi es." (that's the way it is)

Both Mexico and the state of Veracruz are working hard to establish a system of government transparency. Equally, there are just as many local computer programmers working hard to circumvent the system.

The proverbial "asi es" conditions affect monetary shortages in every level of government, from so called paracaidistas, (parachutists who only drop in for kicked back paychecks), to the traditional under the table 10% rebate for any municipal construction work.

Officially (there is no officially, just a transparency.org estimate) Mexico loses 10% of its possible government expenditures to bribery. On a local level I would venture a guess of a lot closer to 20%.

Considering this theft of money, multiplied by a dozen of previous administrations, can anyone imagine how much better many of the affected communities could be, without of course the former municipal president's castles in town or Cancun, Huatulco or wherever they hide their money?