Back in Coroico, the town on the other end of the
World's Most Dangerous Road from La Paz, Reale looks across a wide
jungle valley to the opposite mountain range. "Do you see
that road over there?" He points to a modern, paved roadway
that snakes its way along a ridge. "That's the new road to
La Paz. That road is perfect. But what's wrong with this picture?" he
says, using his hand as a visor against the sun. "There is
not a single car on it. Why? Ten years ago, the government decided
to put the funds up to build a safe road to Coroico. But in Bolivia,
the government must give a job to the contractor with the lowest
bid, regardless of whether that bid is realistic. To save money,
as they dug the road in, they simply pushed the loose dirt down
the mountain, totally destroying the beauty of it.
"
After five years of construction, the road reached a mountain, which
was to be tunneled, but the company had torn through all of the contract's
funds. So now, construction has stopped, and that beautiful road
takes people from Coroico right into the side of a mountain in the
middle of nowhere. This kind of thing happens in Bolivia all the
time."
Reale and Vernon are alike in their ambivalence toward life in Latin
America. Both have enjoyed the area enough to call it home for stretches
of their lives, and both have developed a general frustration about
the region's inefficient modus operandi when it comes to operating
anything from a car to a business. Colosa's products seek to streamline
projects--whether scheduling appointments or selling financial products--and
to reduce inefficiencies.
In their search for industries in need of improved efficiency, Reale
and Vernon have taken aim at one of the trademarks of contemporary
Latin America culture, the tramitÈ. The two face a Sisyphean
task. The tramitÈ includes any of thousands of bureaucratic
errands or processes Latin Americans must confront to accomplish
rudimentary facets of daily life, from obtaining a permit to paying
a bill. It is as indigenous to modern Latin America as strong families
and income inequality.
"
You need a license to chew gum and walk down the street in Latin
America," says Vernon. "Just to pay phone bills in Argentina,
you have to actually go down to some place and walk in with cash.
They then hand you a substantial amount of paperwork, which you must
save. If you don't save it for ten years, you can be audited and
forced to pay anything you can't show a receipt for. That's a business-to-consumer
issue in Argentina, but those exist throughout Latin America. Latin
Americans are very fearful of being defrauded. In the insurance industry,
there are regulations just to submit advertising. All kinds of documents
must be filed and you're constantly waiting for approval."
The culture of tramitÈs even supports its own sub-economy.
Men sit behind typewriters on the city sidewalks awaiting customers
in need of their ability to type X's in the small check boxes found
on bureaucratic forms. Businesses, which can grind nearly to a halt
under the burden of tramitÈs, have taken to hiring tramitistas--people
whose full-time job is pushing paper between necessary parties--to
stay legal. In this baroque system, if you fall behind in your licenses
and permits, you effectively are breaking the law and, thus, operating
illegally. And, the tramitÈs system is self-engendering, in
part, because a highly bureaucratic system offers opportunities for
kickbacks at virtually every point of contact.
Reale and Vernon became inspired to find a better way. They gave
Colosa's senior programmer the challenge of creating software that
could be used in Bolivia's most bureaucratic sectors--government
agencies and regulators--to reduce the strain of tramitÈs.
A mere two weeks later, a new so-called "workflow" product,
eventually named FLUID, was born. Shortly after, Reale sold the product
to Bolivia's Economic Ministry and then to the Superintendency of
Telecommunications.
FLUID now allows a business to file applications with the telecommunications
regulator online rather than carting a stack of accordion files to
a government office. What's more, says Reale, "you are now able
to track your tramitÈ at all times. This is based on the very
same system that FedEx and UPS use." In addition, by uploading
these processes to the Internet, Colosa is bringing a much-needed
degree of accountability: "This should make it more difficult
for it to get 'stuck' somewhere," he says. "When something
like this gets stuck in a Bolivian institution, it is usually waiting
on a coima, bribe. We want to put an end to that."
Assuaging the exhausting hassle of tramitÈs has become Reale's
personal mission. He imagines creating a network of "e-tramitÈs," public-use
computers throughout Bolivia and beyond, that would allow even Aymara-
and Quechua-speaking indigenous people with no computer experience
to tackle everything from obtaining a driver's license to applying
for a government benefit. He imagines doing the project in cooperation
with an international organization such as the World Bank.
Although in the beginning Bolivia was used as a mere default location
and a place for cheap labor, it has since so informed the agenda
of Colosa that it is difficult to imagine the company's being located
anywhere else. Colosa could certainly pick up and move to a new home
base--and the directors have entertained the idea-- but you can bet
it won't be in a place as well trodden as New York or San Francisco.
After all, Colosa's home in Bolivia is a function not so much of
thorough market research as it is of the personalities of its directors.
The depth of Reale's comfort with his surroundings in Bolivia is
striking. He invited some friends and Colosa's Duke interns to a
small dinner party in his apartment last year. One guest recalls, "Brian
explained that there's an indigenous tradition in Bolivia that when
you get something new, like a house, or open a new office, you have
to offer some sort of sacrifice so that it will be blessed. For laughs,
Brian said he had a dried llama fetus in his closet."
In fact, Reale was only joking. He keeps the llama fetus in his car.
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