Monday, May 29, 2006

The Wrong Way Around the World

Forty hours of travel, that's what the Cebuanos have to look forward to. Their plane should be taking off shortly for a brief stop in Havanna (yes, that Havanna), then Frankfurt, then Bangkok, then Manila, and finally Cebu. It has been exhausing living with them, but now that they're leaving I really miss them. I got to know them well, and they included me entirely in their lives. I don't envy them trying to start an office where there is virtually no overlap with the US and CR, but I know they'll be happy to see their families again.

It was amazing that such a small group of people could bring such drama. God rolled up his sleaves and began some hard work on people. I feel honored to have seen lives being challenged up close, but this work is just getting started and it's been painful so far. I was completely out of my depth in knowing how to advise people, but I had a few right insticts that at least I was able to play a small part, mostly in prayer. Keep them in your prayers. They've got trials that no one saw coming.

Here are some pictures from their trip. The first is with the CR developers, and the second is with our company driver Alfredo and his wife at their house in the hills (a beautiful drive if a bit nauseating with all the switchbacks and potholes).


Monday, May 08, 2006

Cebuya

Our new Filipino employees from Cebu are training in Costa Rica. They moved into the condos where I live. We have two guys sharing the master bedroom in my place, and in the girl's condo there are four girls who volunteered to stay in the same room. They are very communal. They all went in for food and cook and eat every meal together. They invite me to join them every time. It's refreshing and I feel like an important guest rather than the host I expected to be.

There are fully bilingual between English and Cebuano their local dialect. They will switch between the two mid-sentence when talking to each other. Even though we share the same language they seem like a more alien culture than the Costa Ricans. The Filipino habits are more like what I expected from the Costa Ricans. I have to admit that I'm constantly surprised when they start speaking to me in English. It doesn't feel like we should speak the same language. It's not like they're ignorant or primitive either. They were all helping each other with their laptops, getting online, and uploading their digital photos. I've been adjusting so easily to Costa Rica that I began to feel that culture differences were not as severe as I had originally supposed. But the Filipinos are simply a very different culture.

Sunday, May 07, 2006

Inflation

Costa Rica has a significantly higher rate of inflation than the United States. Doesn't this mean that over the long term (say ten years) the cost of employees in Costa Rica will be much greater and will offset the initial savings of outsourcing? I found this question interesting to think through.

Inflation is a devaluation of your currency. The increase implied in the term actually refers to the rising cost of goods. Think of a failed state that is experiencing hyperinflation where yesterday what was someone's life savings now can't buy a loaf of bread. There are a lot of reasons for inflation (many hotly debated) but the important point here is that Costa Rica's higher inflation rate means that in general their currency (losing value at a higher rate) will trade progressively worse against the dollar, and that employees may be paid more in their own currency but for the same or less cost to the US company.

I'm not suggesting that inflation doesn't ever cause real wage pressure. For instance the rising cost of oil applies (almost) uniformly, increasing the cost of all commodities and thus prices, decreasing employees' buying power, and increasing their wage demand. It's a vicious cycle. It is precisely because it applies uniformly that it is not meaningful in comparing wages between countries.

Now the actual cost of Costa Rican employees is not decreasing, so it's interesting to go on. Many of Costa Rica's goods (besides bannanas and coffee) are imported, so if their economy doesn't grow fast enough relative to others they will lose purchasing power (a factor that can cause of inflation). This is offset by money coming in from tourism and outsourcing. These dollars shift the value of their currency closer to the dollar and maintains their buying power despite inflation. Outsourcing significantly increases wages in real terms because of rising demand. HP recently opened a big office in CR and drove the average programmer wage up, a phenomenon that is already happening in India and China in a big way.

If wages are rising, and sometimes in big jumps caused by the arrival of a major investor, what makes outsourcing worthwhile? A company doing outsourcing gets an efficiency gain (more value for the dollar, minus startup and transition costs) which hopefully allows them to grow more than they would have otherwise. If they make solid long-term investments they can establish a capital base and growth rate that allows them to absorb the wage growth, so that ten years down the road they have made a net gain. Think of a loan where you face a rising long term cost due to intrest, but you get initial capital that hopefully allows you grow and get ahead of this debt. One caveat here is that this benefit is negated if competitors are receiving exactly the same benefit, but in that case outsourcing is required in order to remain competitive.

Friday, March 31, 2006

Uncle Jason!

My sister Anna gave birth to Lily JoHannah Depauw yesterday. I'm flying back to Illinois April 12th to meet her in person. I can't believe it.

Saturday, February 25, 2006

Moving...

I've moved again. This is my ninth move in the last six years since graduation. The last move was international but this one was within Costa Rica. Joe D and I have moved from our loud, road-side condo in Escazu into one of the three side-by-side patio homes in Belen that Trax leases. The girls house is one west of us and JP and Rachel are one east. I've hooked my ipod up to the speakers Jack left behind and am enjoying Fiona Apple and a Bavaria Dark (the best beer CR has to offer) on the couch with a cool breeze blowing in from the patio.

Last weekend some coworkers and I headed out to Manuel Antonio (the national park where I recently went with my family). We scored some rooms at the amazing Hotel Parador. We arrived Saturday morning and that afternoon I convinced a few of them to take the same catamaran snorkeling tour that my family did.

It a was beautiful boat ride as before, but this trip was leaving something to be desired. Instead of my six family members having the boat to ourselves it was packed with over forty. We stopped to snorkel and they made us take live preservers and only gave us twenty minutes compared to the hour or more that my family had. After returning reluctantly to the boat I found that many people had been stung by small jellyfish. The sun was getting low when the boat set sail again. We set out from the bay looking for dolphins and after a long stretch of doubt we spotted fins and one jumping just west of us. The boat turned toward them and everyone rushed to the front to see the dolphins playing in front of it. At first they were dark blurs just under the surface, but then my eyes adjusted and I watched them weave back and forth under the boat, chasing each other, then leaping suddenly out of the water.

Two weekends ago Tony V was visiting us from the Boston office. He was supposed to fly home, but the East Coast was being overrun by a huge blizzard, and so I volunteered to show him around. That Saturday (which was also Joe D's first back) the three of us set out for the hour and a half drive to Volcan Poas. A dormant but by no means dead volcano. (Sidebar: It's silly how often Spanish words are the same as English words but with "o" on the end. Absurdly, the English word volcano becomes volcan in Spanish.) I'd been up the mountain three times previously and it had always been cold and cloudy. The one time I went all the way up to the crater I only saw fog and a seismic sensor just below me. It was perfectly clear in the morning but I knew clouds would encroach by afternoon. I hauled up the road and walked quickly once at the park. Tony and Joe must have wondered what had gotten into me.

At the top we looked out over the top of a cloud-filled horizon. It was rising fast but low enough to leave the crater exposed. There was a green lake with white steam rising out from crevices all around it. The wind would dance the steam around the surface of the lake. Where the steam rose close to the side of the crater the gray rock was stained with that same sulfurous green. The last major explosion had blasted down the west side of the mountain. Nothing grew on the grey rock streaked with a clay red. You can only look for so long before feeling the need to move on, but we looked for a long time.

Move after move it's all been worth it.

Tuesday, January 17, 2006

Did I mention that I got sunburn?

It’s good to spend time with family you love, but it’s really sweet when they join you far from home. My immediate family came to Costa Rica for a week to see the beaches and volcanoes. Anna my sister and her husband Tobie had already made plans to be here when I was offered the chance to move down. Tobie spent six months here a few years ago working in book bindery run by a local church. He was back to see his old friends. When my parents heard that I was going to be here they put two and two together and decided we should have a family vacation. It was a blessing. It’s good to remember God’s blessings, and to note them during stressful times.

Part of what made this trip good for me was being able to bless my family. I helped with the planning, rented the cars and did all of the driving. The driving was an exhausting challenge but rewarding. The narrow roads wind tightly through the mountains and you don’t want anyone getting car sick. You also don’t want everyone to die in a fiery collision with an oncoming passenger bus.

Tuesday found us enjoying excellent toast and eggs in the town of Quepos not far from the Manuel Antonio national park. After breakfast a van picked us up to take us to the marina and a waiting catamaran for a tour and snorkeling. The boat could hold upwards of forty but on that morning our family was the only guest. The sails unfurled and for an hour we slipped away from the coast. Islands dotted our path, a distant stormed darkened the ocean horizon and the central mountains towered far inland.

My dad was anxious to snorkel, so he convinced the crew to cut the tour short. We anchored in a small harbor, and our guide pointed out the tip of a rock, no wider than the roof a car, barely staying in view above the tide. It took us a while to get the hang of the gear and it was probably ten minutes before we reached the rock. On the swim across to it we didn’t glimpse a thing. My sisters were there first and looked under at about the same time. They popped up quickly and began giggling uncontrollably. After another minute or two of flopping I reached them and looked under. I couldn’t wear my glasses with goggles and my vision is pretty poor. I was concerned that I wouldn’t see any more than an occasional dark blur. The moment my eyes dipped below the surface I found myself staring at a school of palm-sized, yellow and blue striped fish mere inches from my face, swarming around me. Over the next hour I would see a dozen different species each as colorful and different as the next. There were boxy puffer fish, light blue with dark blue pokadots. There were thin, purple fish that almost glowed with a vertical white stripe on their sides and a yellow stripe along their tops. I can’t describe them all. We were overwhelmed.

On Wednesday we hit the national park: serene beaches, dense forest, but most of all animals. First we saw big lizards that would stand like proud statues with their chins up. A tour guide for another group was pointing into the trees, and my sister Lindsey was the first to spot the sloth high up in the canopy. It looked like dirty shag carpet wedged between branches.
The third beach had the busiest tourist attraction. There were crowds gathered and pointing in all different directions. We’d found the monkeys. The monkeys are hilarious. They stand out from every other animal I’ve encountered by how much they engage with people. They’ll throw sticks, they’ll yell, and they’re always scheming to steal food. As soon as some visitors sit down at a picnic table its game on. They may try a dash from the side, or swipe from a low hanging branch. They can open zippers and tear open plastic bags. Like people they don’t care that that bag of chips isn’t any good for them.

Thursday morning we were back in San Jose. We’d dropped Anna and Tobie off the night before. Lindsey discovered that she’d left her passport back at the hotel in Quepos. There are no normal parcel carriers like we have in the States, so we needed help from my Costa Rican coworkers to arrange a shipment. The hotel had to send the passport by courier to the local airline Sansas, and then we had to pick it up at the airport. Not only do you get to invent driving rules in Costa Rica you have to make up shipping routes too.

That afternoon another slow drive slithering through the mountains put us at the volcano Arenal. It’s world famous for being an almost perfect cone. It looks like your grade school science project. It’s also been active for fifty years. You can see the lava at night. That is, if there’s clear skies. I’ve visited Arenal twice now. The last time was in ’99, and the situation was the same. It is the cloudiest place on earth. Your eyes keep tricking you into thinking the ceiling is raising, but then another wave sweeps down over the mountain. You can see the dead zone above the trees where lava has passed, but never glimpse the mouth of the cone. It’s a beautiful place, but also an exercise in disappointment.

It was hard to send the family home again on Saturday morning. Living in another country can be lonely, and family is the most comforting thing to have around. I liked knowing that they were right across town.

One the best things to come out of this vacation is that I visited a cool church. Tobie took us to the one he worked with, and I really liked it. The pastor seems solid, and the people were friendly. I didn’t understand much of the Spanish service, but I think I could grow into it. Anyway there are some other places for me to try too, so we’ll see where I can connect and serve.

Tuesday, December 20, 2005

For All My Geeks Out There

The great thing about using 24-hour time is that once a day your clock reminds you that you are 1337.