Yet, on my first visit to Asunción last week none of that was on my mind. What was striking was the total absence of any aesthetic coherence of the city.
There are some economic reasons for this:
Going back to the middle class consumption point. If only around 300,000 Paraguayans make up the domestic personal income tax base then it’s perhaps not a local middle class that is buying and renting the new modern high rise apartments in Asunción.
Indeed, 70% of the new housing supply are acquired by foreign investors as a capital preservation strategy. They are not bought by locals. These are often investors from Argentina, who according to some data account for 70% of all foreign investors. They buy the apartments and then rent them out? But to who?
Usually foreigners who go to Paraguay for work purposes or new residents who take advantage of Paraguay’s quick and easy residency scheme and citizenship program. And the fun part is that these rental contracts are usually in dollars! Not the local currency (the Guaraní, PYG). Of course, Argentines buy property in Paraguay and prefer to receive dollars in rent.
The entire post is excellent There is also this:
There is a lot more that I could say about Paraguay. Like how the War of the Triple Alliance (1864-1870) resulted in the death of 70% of adult men in Paraguay; giving the country the highest male-mortality proportion ever reliably documented for a nation-state in modern warfare.
I have yet to visit Paraguay, but someday hope to. But should this post induce me to accelerate or delay my timetable?
The post Rasheed Griffith on the economics and aesthetics of Asunción appeared first on Marginal REVOLUTION.
