Tuesday, February 12, 2013

Emergent Order: American Business Logic in a Haitian Market


-->I feel like I am becoming a regular at the L’estere market. I went for the third time today and my parents Chris Hestwood, Westminster's Choir director, and a few of the employees at the mission joined me. We had a fantastic time.

Last time I went to the market I was amazed by the emergent order; the bovine herders naturally gravitated toward the most open space to sell their cows, the swine trade revolved around an area right next to the river that supplied a large amount of mud for the pigs, and the less chaotic part of the market was occupied by the sale of luxury and higher end items. Each location uniquely suited its group of buyers and sellers. Today I saw another side of the market’s wisdom. Last week we just got cows and attempted to get pigs, so we saw a much more limited segment of the market, but today we got see almost the entire market. I had a chance to observe how different sellers in L’Estere organized themselves as efficiently as supermarkets and convenient stores do in the US.

Tuesday is the day when animals are traded in L’estere, so there were people from all over Artibonite (the region of Haiti where L’Estere is located) trading every different species of livestock. There were traditional livestock being sold, cows, horses, pigs, goats, and chickens, and there were some people selling less common animals like pigeons and turtles. When I was walking around the communities yesterday afternoon I saw teams of horses and cows coming down Highway One, all headed to today’s market. The market is so popular that people would travel overnight to the market with their herds. At the Tuesday market the only constraint dictating on where people sell their goods is the road and the physical structures; any space is fair game. There are no zoning laws directing what interactions can happen where, there are no permits required to sell a certain thing in a certain place, there aren’t even any health codes dictating where a cow can be butchered; if a person can situate him or herself in a certain place, he or she can open up shop there. Some spaces sell specific items, there is a spot where cows are traded, right next to door the place where horses are traded. There are sections of shops that sell durable goods like clothes and shoes. There is one segment of the market where all sorts of poultry is sold, one spot where pigs are sold, one spot where wood is sold, one spot for charcoal, etc. There is nothing but circumstance dictating what is sold where, and the division is guided only by the market’s wisdom.

Within each of these product specific areas, there are other things being sold: rice, beans, soap, tobacco leaves, little peppers, common every day items. Around the cow trading area there are people selling rice, beans, tobacco, etc. Each of these every day items does have a specific area of the market specializing in its sale, but these items can also found all over the market place being sold by smaller vendors. There is one section of the market that specifically sells rice, one section that specifically sells beans, but rice and beans are sold all over the market. While walking around, this all seems completely haphazard. There is a smattering of rice sellers among the higher end sales, some bean sellers randomly plopped in the area devoted to the sale of compost, and people selling tobacco leaves wandering around the fresh meat space. All of this goes on without any sense of apparent organization. Yet as I walked around I realized that the market was organized, just not by a single person. The market was organized quite efficiently by the collective wisdom of every buyer and the seller. The logic I saw in the market was quite similar to the logic that dictates the sale of everyday items in American stores. If I want to buy a specific product, something like steak, lunch meat, sharp cheddar cheese, tomato sauce, etc. I have to go to a place like Giant Eagle, a place that specializes in the sale of food. Yet if I need a general item, something like milk, water, cigarettes, or orange juice, I can go to Giant Eagle or any other convenient store like CVS, Sheetz, Walgreens, or Sunoco. I may pay a little more at the general store, but I am willing to pay more because I don’t have to go all the way to the grocery store. In the market, everyone needs to pick up the staples of Haitian Cuisine, things like rice and beans, but not everyone has to pick up a cow or charcoal. Because of this, some rice sellers will congregate in one central area, while others will disperse to other areas of the market. Those rice sellers who congregate in one area will be selling everyday rice as well as other more specialty types of rice. In the main rice area I saw some sellers who were selling yellow and brown rice as well as white rice, and some were selling rice in mass quantity. In the other specialized areas, those selling cows, pigs, charcoal, etc., there were rice and bean sellers sitting near by. Like CVS selling milk and bread, some of the smaller Haitian rice and bean sellers congregated around the charcoal and cow sections of the market, hoping to get a higher price for their goods by giving the buyers a the added convenience of not having to go all the way in the market.

Another interesting point that I noticed was that none of us were really heckled by the people in the market. Our group was led by Roland, our handy translator and all around Haitian cultural ambassador. Roland was able to blend in with the rest of the Haitians, but the four Americans stuck out like a lit match in a dark room. When I was in Port Au Prince, there seemed to be dozens of people coming up begging for money. I am obviously not from Haiti, and given my white skin the Haitian beggars assume I have money. Here no one was begging for money from me or the other three Americans with me. We came across a few questionable characters at the further ends of the market, but overall everyone was polite and courteous to us as we walked through. Once our group got over the initial shock of everything around us, we felt comfortable walking around. There are more white people in Port Au Prince than in L’Estere so we (four white Americans) stuck out more here, but still no one approached us the way beggars did when I was in Port Au Prince last Saturday. I don’t have a definite answer for why this happened, but I am willing to bet that this was because the expected monetary gain from asking us for money was far less than the expected gain from whatever transaction they were already engaging in. In other words, the Haitians thought they would make more money if they worked with each other than if they begged from us. This may seem trivial, but it implied that the market was doing what it needed to do, creating wealth for those working in it.

We ended up getting 18 goats, 3 pigs, and a cow. We spent a total of about five and a half hours in the market, and everyone involved, including the animals, went home happy. I was able to observe the market’s collective wisdom again, but observed it in a whole new light. Most likely at least half of the people at this market were illiterate or had just a basic education. This market was not organized by a specific formula for allocating goods, and none of the sellers were analyzing spreadsheets of pricing data. There was no one person or group making any central decision about how to best allocate space or product, the market work on the many different sellers trying to find the best place to sell their goods, and the many different buyers looking for the best deal. They all organized themselves efficiently, respected each other, and worked hard. I am sure some people didn’t get the best deals they hoped to get, while other people probably got better deals than they expected to get, but overall those who interacted in the market were better off at the end of the day. If market day taught me anything, it’s that Haiti’s success isn’t a magic formula. There’s no one specific policy that can set rapid growth in motion. The materials for Haiti’s success are already present in the L'Estere market place. People want to be successful, they want to trade with each other, they don’t want to beg for help. For Haiti to move forward in its development, we don’t need to implement something totally new, but rather figure out a way to spread the collective wisdom of the market.

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