Hard work on Nogales' streets

Mexico's jobless woes

Tucson, Arizona  Monday, 1 September 2003
Chris Richards / Staff


Camilo Rios, 62, is one of the oldest vendors working at the Dennis DeConcini Port of Entry. "You have to be good at managing yourself to support yourself in this business," he says.

 


Photos by Chris Richards / Staff
Mexico's high jobless rate can make self-employment the only option. Shoeshine man Jose Roman Perez says some days he makes money, and some days he doesn't.


The FAI assistance organization lends solidarity to struggling vendors, who receive startup advice and are eligible for small loans
.

 

Government promotes self-employment, but competition is tough

By Ignacio Ibarra
ARIZONA DAILY STAR

NOGALES, Sonora - With unemployment in Mexico at the highest level in nearly five years, jobless Mexicans are being urged to make their own work.

Mexican workers should not expect short-term solutions and instead should look to ways of employing themselves by participating in the nation's "informal economy," Carlos Abascal, Mexico's secretary of labor, said in July.

Unemployment then was at the highest level since 1999.

That informal economy includes small neighborhood markets, in-home cottage industries and those who hit the streets to sell everything from tacos, tamales and hot dogs to velvet paintings, purses and compact discs.

The number of people who need work is high.

In Sonora, thousands of positions were lost in recent years, primarily in the manufacturing and industrial job markets, according to the Mexican Institute for Social Security. The most seriously affected have been women, who most often staffed Mexico's foreign-owned maquiladoras.

Once the engine of economic prosperity in the border region, the maquiladora industry has lost more than 100,000 jobs, nearly 15,000 of those in Nogales, in the three years since President Vicente Fox took office.

Fox's critics say the notion that the nation's more than 1.6 million unemployed should be content to sell tamales and burritos, or shine shoes on the streets, is bad policy.

It could destabilize established retail businesses and result in even more unemployment.

"Most people don't have the knowledge or skills needed to be successfully self-employed," said Pedro Peralta, a salesman at El Mirage, a curio shop near the port of entry in downtown Nogales. "It's disgraceful that the secretary of labor would suggest this. . . .

"The government should be doing more to create jobs, encouraging investment and development in technology, looking for new markets and promoting the economy both internally and externally," Peralta said.

Not far away, Camilo Rios agreed. At 62, Rios is one of the oldest vendors hawking wares to people waiting in their cars to cross the border at the Dennis DeConcini Port of Entry each day.

"You have to be good at managing yourself to support yourself in this business," he said. "The sun shines the same for all of us, and we all have the same right to survive.

"But they'd have to find a place in some other part of town, because there are already a lot of us here, and to suddenly have more competition would not be good," Rios said.

More than 800 licensed street vendors work in Nogales, said Francisco Ocampo, coordinator for the city's office of inspection and enforcement. Up to 5,000 people - mostly relatives of the permit holders - are supported by the street sales of food, toys, candy and crafts to tourists and local residents.

The market for street vendors is so saturated in Nogales, particularly in the commercial district downtown near the port of entry, that new permits are rarely approved.

"We have a high demand for permits," Ocampo said. "We get about 80 permit applications per month. Only five or six are approved."

Illegal vendors, or piratas , are cited in various parts of the city by Ocampo's 15-member enforcement staff.
Making such small businesses succeed is difficult, Ocampo said, and within two or three months, many of the startups call it quits "because their businesses are simply not viable. Most of them complain of poor sales."

Improving the success rate for startup efforts is the goal of the Foundation for Child Assistance, known as the FAI. The organization works with the city of Nogales, the Office for Women's Affairs and the federal Secretariat for Economy to provide consultation, training and even small loans to encourage women and men to go into business for themselves, said Delia Martin Triana, the FAI's director in Nogales.

The national organization opened its Nogales offices in January and has already helped organize three groups totaling about 40 new entrepreneurs.

Within the month, it expects to double that number as more people - mostly women - turn to self-employment in the economic downturn.

"With the loss of jobs in the maquilas industry, unemployment has become a huge problem, especially for women and for older people," Martin said. "We're working with groups of five to 15 people who work from their homes making tortillas, chorizo and other products that they can sell in their neighborhoods and on the streets.

"Our program gives them hope, and the training and financial assistance they need to succeed . . . so they can get beyond eating their profits just to survive."

Maria Felipa Gomez, or Doña Elena, is one of the stars of the FAI's program in Nogales.

Gomez has parlayed a family recipe for pickled jalapeño peppers into a cottage industry, churning out more than 20 mason jars of chile curtido each week.

The $2 jars of pickled peppers are sold to neighbors and to other FAI members who operate carts around the city hawking hot dogs, tacos and other foods.

Gomez, a 67-year-old grandmother who raised 13 children of her own and two grandchildren, said she had always worked from her home as a seamstress.

She made clothes for family members and neighbors to bring in a little extra cash for her family.

She started contemplating going into the chile business when her husband died three years ago.

"I'd always given them away, but I started selling them after my husband's death," she said. She started the business in January with the help of the FAI.

Like all other FAI members, Gomez had to come up with a $30 savings account to start in the program, which allowed her to use the savings to borrow up to $100 at a time to pay for materials and supplies.

The program rewards success by increasing the businessperson's credit line as his or her savings grow.

In the eight months since Gomez began her business, her savings account has more than tripled, and she is now able to borrow up to $400 at a time.

"I was a housewife all of my life, so don't know what I'd be doing without FAI's help. They've provided me with knowledge and ability and the satisfaction of doing something for myself.

"My curtido is becoming well known, and I feel my business will continue to grow and be more profitable."
* Contact reporter Ignacio Ibarra at 806-7746 or at ignacioi@prodigy.net.mx .