8. Peru: Bad public services
Calca and nearby Acomayo are two Peruvian provinces. Both are high in the mountains, and both are inhabited by the Quechua-speaking descendants of the Incas. Both grow the same crops, yet Acomayo is much poorer, with its inhabitants consuming about one-third less than those in Calca. The people know this. In Acomayo, they ask intrepid foreigners, "Don't you know that the people here are poorer than the people over there in Calca? Why would you ever want to come here?"
Indeed, it is much harder to get to Acomayo from the regional capital of Cusco, the ancient center of the Inca Empire, than it is to get to Calca. The road to Calca is paved, while the one to Acomayo is in terrible disrepair. To get beyond Acomayo you need a horse or a mule -- not due to any differences in topography, but because there are no paved roads. In Calca, they sell their corn and beans on the market for money, while in Acomayo they grow the same crops for their own subsistence. Acomayo's people are one-third poorer than Calca's as a a result. Infrastructure matters.
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