The blueEnergy office
Foreigners who are accustomed to traveling abroad know that developing countries are cash-based societies. Even European vendors frequently reject plastic in favor of paper. As the Controller for blueEnergy Group, a renewable energy NGO based on the Caribbean Coast of Nicaragua, I’ve come to realize how many obstacles cash-only systems pose when trying to manage a nearly half million dollar annual budget. No longer is it simply an inconvenience when trying to pay for your dinner, it is an inconvenience to do just about everything.
Let’s start with discussing what exactly I mean when I say that we use cash for everything. First, blueEnergy does not have any organizational level credit cards.
None.
Look at your wallets and imagine 10 empty credit card slots. Sometimes, I think my wallet is a bit lonely, but that is beside the point.
We pay all salaries by cash because almost all of our employees do not have enough savings for a bank account. This means that our accountant needs to wait in sometimes a two-hour line at the bank to withdraw a huge sum of money. Immediately, she jumps into a taxi waiting outside to avoid being accosted.
You can imagine the checks and balances that are needed when distributing cash to employees. If an organization does not have the proper systems in place, cash can magically disappear, especially within the developing economies.
How about paying our bills? Luckily enough, the vendors we frequently use keep a credit account on our behalf. Yet, in true Nicaraguan style, we need to physically go to each vendor with, for example, 20,000 Cordoba and ask to pay our bill.
Yes, you read correctly, we must insist on paying debt!
It almost seems like we are making a huge inconvenience for the owners. We’re always prepared for rolled eyes and a deep groan. Where else on earth are we sassed when trying to give money to someone! I believe it goes along with the local culture and that time seems to slow down. When we ask someone to organize all of our bills and properly document each transaction, it goes against how many systems function in Bluefields.
Operations in Nicaragua are not like the other countries that many of us are used to, and to be honest, it is sometimes very refreshing to have such a relaxed and less rule-based society. On the other hand, well, I just keep a couple of aspirin handy.
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Great article. Fun to read and informative. As a small business owner myself I can and do imagine cash basis for income but it’s hard to fathom supporting its purchasing needs with only cash.
The idea of “convincing” vendors to “allow” you to settle up is quite an image.
Something to be learned for all of us I suppose.