April 2005
Vol. 4, No. 11
Hello all,
We hope you are all doing well and enjoying spring in the United
States. Just in case anyone forgot, we are in the middle of Niger’s
hot season, which lasts from late March until the rains come in
June. Our productivity is probably about 50 percent of what would
be expected if temperatures were less than 100 F. Normally I try
to do anything ambitious in the morning and if I can advance a
little on something in the afternoon, I’m pretty pleased.
Niger is a terribly expensive country to live in. Very little
is produced in Niger, since the nation has few raw materials and
lacks a well-trained work force. Therefore, goods are brought
in from the outside. As a remote, land-locked country with no
seaports, everything has to be hauled in by road (no rail in the
country either) and that means it must first enter through another
neighboring country (several of which have inadequate roads to
Niger, plus safety and security problems, which makes road transportation
cost more). Added to transportation expenses is the fact that
the government budget heavily relies on duty taxes for goods that
cross the border, which increases the final price on everything
in the stores. Also, Niger must import all of its electricity,
which comes from hydroelectric producing dams in neighboring Nigeria,
and that makes our electricity rather high, too. Only the very
wealthy or institutions can run air conditioners during the day.
Indeed, I’ve learned most Western embassy staff and NGO
workers get a hardship bonus for being in Niger (and they usually
have their air conditioning paid for!).
For the average Nigerien, life is very difficult. Not only are
incomes among the lowest in the world, but also the cost of living
is extremely high, particularly in the larger cities. The Nigerien
government recently added a 19 percent value added tax (VAT) on
basic foodstuffs, as well as for electricity- and water-consumption
bills. The urban population has resisted this VAT, and we have
had several days of demonstrations throughout the country. There
has never been any real concern for our personal safety, but you
get a sense that the average person is being stretched to his/her
limit. The loose coalition that has been organizing the demonstrations
is called “The Coalition Against the Expensive Life in Niger.”
Last year’s harvests were relatively poor, so people can’t
understand how they are supposed to absorb these higher taxes.
The Nigerien government’s response is that they need to
raise more revenue from internal sources to meet its obligations
to various international financial organizations and to generate
enough money to build schools and health clinics. The situation
certainly appears complex. I read where one of the anti-VAT protestors
said that it is not the principle of having a VAT that they object
to, but the 19 percent rate. Indeed, a 19 percent sales tax seems
excessive for this environment, and an increase of this size in
the United States would likely generate protest there. |
