Micro Capitalism and the Carnival

Panama’s 2003 Carnival is finishing tonight. I’ve had a great time and it’s has proved yet again that Panamanians are some of the worlds best party people.

During the whole Carnival the thing that sprung to my mind the most is the shear wealth of micro enterprises that are in Panama.

You see them everyday ofcourse from the shoe shine boys who never fail to appear out of nowhere when I’m having coffee at Manolo’s to the Cellular Phone accessory guys on Via Venetto.

However they were absolutely everywhere for Carnival. And rightly so. This weekend is the weekend for everyone. Not just for the people wanting to have a good time, but also for people wanting to make a living.

So what kind of businesses are we talking about?

• Beer Tents
• Roaming Beer and Cigarette Guys
• Barbecue Meat Vendors
• Sun Glasses Vendors (Even at night)
• Confetti Vendors
• Flower Vendors
• etc. etc

Every where you went you saw people doing business. Buy a box of beer for 35 cents a can in the 24 hour supermarket walk around the crowd and sell each can for 50 cents. Thats a business. Buy 3 packs of cigarettes and do the same.

This shows the wonders of micro businesses. Everyone can take part. I remember when I first went to Jamaica about 10 years ago, that if you had a freezer you had a business as a grocery store for your neighbors.

For more about how micro businesses are key to developing countries economies see Hernando de Soto’s ILD institute in Peru.