A molestar a otro lado (Guatemala)

A molestar a otro lado 🇬🇹
Location: Guatemala
Definition: Refusing service to poor or indigenous customers, lit. ‘go bother someone elsewhere’
Keywords: Guatemala – Central America – Latin America – North America – Discrimination – Trade – Poverty – Access – Money – Race – Ethnicity – Double standards
Author: Jose Godinez and Denise Dunlap
Affiliation: Manning School of Business, University of Massachusetts, Lowell, USA
Website: JG's profile page at UML DD's profile page at UML

By Jose Godinez and Denise Dunlap, Manning School of Business, University of Massachusetts, Lowell, USA

A molestar a otro lado (‘go bother someone elsewhere’) is a common expression used by Guatemalan businesses to let potential customers, suppliers and distributors know that they are not welcome. The practice of providing poor service or refusing it to people who look as if they are without sufficient economic means to afford the items on sale took root when the Spanish began colonizing the country nearly five hundred years ago. This attitude is common towards potential customers of modest means, but is more frequently used in dealing with people of indigenous descent, especially if they wear traditional clothes. Irrespective of whether or not such customers can afford goods or services provided by the business, the business often tells them “a molestar a otro lado,” indicating refusal to deal with them. This discriminatory practice is aided by the fact that businesses are permitted to hang signs outside of their shops saying “nos reservamos el derecho de admision” (ʻwe reserve the right to refuse service to any personʼ).

Guatemala is a country characterized by contrasts, and ranked as the tenth most unequal country in the world (CIA 2020). Acute inequality has been in place since colonization of the country, which allowed people of European descent to accumulate and retain wealth while displacing indigenous people. Due to the unequal allocation of wealth, large businesses are controlled by a small minority. These business groups coined the practice of a molestar a otro lado, which occurs commonly in their day-to-day operations. This practice has also permeated smaller businesses and became part of the business culture in the country. Nowadays, this practice is commonly used to provide an impression of exclusivity. However, a molestar a otro lado affects a large part of the Guatemalan population since over sixty percent of the population (or 6.4 million people) live in poverty. In addition, Guatemala has the second highest percentage of indigenous people in Latin America, about forty percent of the population (Borgen Project 2017).

A molestar a otro lado is also a common expression used in Latin America to dismiss a person, or group of persons, when their presence is not desired. This expression is used in the Latin American region to discriminate against people on the basis of race. One study found municipal workers in Ecuador telling informal sellers of handicrafts to go “a molestar a otro lado” (Carrillo-Navarrete and Salgado-Andrade 2002). However, its use by Guatemalan businesses to refuse services to possible customers is unique and has not yet been fully analyzed and understood. Perhaps the a molestar a otro lado practice in businesses began in the hospitality industry, where customers are often targeted by people begging for spare change or scraps of food. Employees in charge of the businesses turn beggars away with the phrase “a molestar a otro lado.”

While the practice seems illogical from a business point of view – assuming that businesses would like to attract as many customers as possible – in Guatemala companies have a different idea of how to run their business. Specifically, Guatemalan companies think that exclusivity is desirable because it helps to attract wealthier customers. This practice has also been aided by protectionism allowing larger companies to enjoy subsidies or enactment of rigid barriers to entryfrom the central and local governments. As a result, these companies did not need to compete for customers. Nevertheless, social changes, brought about by technical innovations and globalization, give hope to traditionally excluded Guatemalans since these changes have forced some businesses to reassess their practices.

A molestar a otro lado has been up, until lately, a deeply embedded practice that seemed unlikely to change. However, the general public has voiced their repudiation of this practice. Indeed, the general public has taken advantage of the globalization of technology advances to push back against companies. While the political and economic elites in the country have embraced the a molestar a otro lado practice, the general public have begun to rebel against it. To show their disapproval, people have turned to new technologies, especially social media, to raise their concerns and demand change. This new wave of social conscience has been a unified effort by many different sectors of the society irrespective of race or social status. However, not all businesses have been receptive to the demands of the public. One of the few industries that are actually changing is the mobile banking (M-banking) industry.

The M-banking industry can be defined as carrying financial transactions through a mobile telephone or other mobile device that is linked to a personal bank account (World Bank 2006). Additionally, this industry is characterized by providing banking services to people with little financial resources who nevertheless need to carry out financial transactions but do not have easy access to a traditional bank. Firms within this industry, especially in developing countries, are able to generate attractive returns due to economies of scale, which allow them to provide low cost services to a great number of clients Firms within this industry believe that there is no such thing as an unattractive customer.

In Guatemala, the M-banking industry has been generally ignored by the government and thus, unregulated. The lack of regulation has allowed firms in this industry to compete with each other. Hence, since competition is increasing, firms within the M-banking industry recognize that ignoring the needs of over sixty percent of the population is not feasible or desirable if they want to remain in business. Hence, for the first time in Guatemalan history, the practice of a molestar a otro lado is being dismantled one small brick at a time. As domestic compete against foreign firms that dominate M-banking in Guatemalathey being to realize that the practice of maintaining the custom of a molestar a otro lado will negatively impact their long-term success. In 2017, we conducted an in-depth research study that examined changes in the mobile banking industry in Guatemala (Godinez et al. 2020). Interviews with sixteen members of the Guatemalan government and representatives of six companies from the M-Banking industry suggested that domestic firms began to engage with customers and suppliers regardless of their ethnicity and economic status. These changes are the result of the low profit rates inherent to the industry and thus, the need to increase the number of customers. Our research shows that these firms are creating linkages with traditionally neglected populations and by doing so are better able to compete with their foreign counterparts. These linkages include having direct communication with small suppliers and distributors to in order to tailor products and services to customer needs. Also, and more importantly, M-banking firms are, for the first time, opening up and maintaining two-way communication with customers to specifically find ways to accommodate needs of neglected population groups. Although these groups have limited schooling, they were increasingly using their services. This number is expected to grow since there are on average 1.5 cellular telephones per capita in Guatemala. Our research results suggest that firms in the mobile-banking industry can no longer afford to tell potential clients “a molestar a otro lado” if they want to remain competitive in this global and dynamic sector. With the advent of the adoption of new technologies in Guatemala the practice of a molestar a otro lado could be eradicated. The Guatemalan public are experiencing the benefits of companies competing for their loyalty. Additionally, while the government at many different levels has not yet fully addressed the a molestar a otro lado problem, it is possible that social pressures will make them realize the harmful effects of these discriminatory practices, which in turn would bring about change.

Recommended Reading

New Public Policies Are Proposed to Eradicate Racism and Discrimination in Guatemala (Economic Commission for Latin America and the Caribbean)

References

Borgen Project. 2017. ‘Exploring the poverty rate in Guatemala’, 8 August, https://borgenproject.org/exploring-poverty-rate-in-guatemala/ Carrillo-Navarrete, R. and Salgado-Andrade, S. 2002. Racismo y vida cotidiana en una ciudad de la sierra ecuatoriana. Ediciones Abya-Yala: Quito, Ecuador.

CIA. 2020. ‘The World Factbook’, https://www.cia.gov/library/publications/the-world-factbook/rankorder/2172rank.html?

Forbes. 2018. ‘Following Mobile Money's Rise In Africa, Mobile Banking Is Now Booming’, 27 December, https://www.forbes.com/sites/tobyshapshak/2018/12/27/following-mobile-moneys-rise-in-africa-mobile-banking-is-now-booming/#3df9ea33cf3d

Godinez, J. Dunlap, D. Webb, H. and Bell, V. 2020. Navigating informal linkages on the frontier: How entrepreneurial firms uncovered new sources of knowledge and certainty in the mobile banking industry. Working Paper

World Bank. 2006. ‘Mobile banking: Knowledge map & possible donor support strategies’, http://documents.worldbank.org/curated/en/583091468160508211/pdf/377980infoDev01g1July0200601public1.pdf

World Bank. 2020. ‘Mobile cellular subscriptions (per 100 people) – Guatemala’ https://data.worldbank.org/indicator/IT.CEL.SETS.P2?locations=GT