East of Africa: Sapphire of Ilakaka

After hours of driving through untouched landscape, a speck of civilization appears on the horizon. It’s a sizable town; modest in structure, but full of activity and commotion -even at a distance.

A patchwork of low-grade wooden structures stem from a single main road. Electrical wires criss cross each other in all directions, connecting small shanty homes with restaurants and makeshift offices with pre-fabricated Zain mobile phone shops.

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The main road is filled with pedestrians. A man with a turkey slung over his back fervently tries to make a sale with a local butcher. Several children pile onto a improvised sled, transporting an oil barrel that’s adorned with a hand painted message in English: “God is Good”. Next to them, three Chinese men in business suits carry large black briefcases into a shiny building that is marked as a gem brokerage.

It feels like we’ve rolled into a strange, Malagasy version of the Wild West, minus the cowboy boots and the saddled horses. This is Ilakaka, population: 30,000, and home to Madagascar’s booming sapphire trade.

As soon as we stop on the side of the road a few hawkers approach us. I try to explain in French that we’re not here to buy anything, but they insist that I come see their shop. Curiosity gets the best of me and I follow them to a small stall where a few men are clutching tiny plastic zipper bags filled with purple and blue stones.

There’s nothing elaborate about the presentation of the stones. They clear a bowl of meat for sale off of the table and empty the contents of the bags for me to inspect. An aging Indian man with a long beard sits behind a metal grille and counts out the prices for the stones. When it’s apparent that I’m really not going to buy anything, the bags get packed away as fast as they were dumped out.

I’m told that the Sri Lankans, Indians, and Thais control most of the gem market here, with a majority of the mining done by poor Malagasy father-son teams. They are lured by the dream of making over $10,000 USD in one find; truly a temping proposition in a country where two thirds of the population live on less than a dollar a day.

In the past eleven years, Ilakaka has been subject to an expansion that could be compared to California’s gold rush of the 1800’s. Sapphire deposits were discovered in 1998, when only 40 people inhabited the area. Now, 50% of the world’s sapphire comes from Madagascar, and Ilakaka is at the heart of the fever. The current official reports document 30,000 inhabitants, but locals insist that there are closer to 60,000 people in the town…a number that’s hard to track amidst high turnover in workers and unreported children belonging to working families.

Walking further down the road, I notice that the diversity for such a concentrated population is striking. Apparently, each of Madagascar’s 18 ethnic groups are represented in Ilakaka; and businessmen from all over the world come here to buy Malagasy gems. But because of the profitable nature of the business, violence has become prevalent in the rogue town.

The word on the street is that one of Osama bin Laden’s relatives was gunned down last year because of his visible success in sapphire trading. Another victim was shot in his hotel room only months ago while carrying a sapphire worth nearly $25,000. The local police claim to be attempting to control criminal activity, but low salaries and high bribes seem to be getting in the way of any tangible results.

But the violence doesn’t seem to be keeping anyone from coming to Ilakaka just yet. There are bars, brothels, and casinos…plenty of economic activity. But there are no established banks or sources of electricity from the national grid. Most of the shacks that the miners camp out in have no running water or sources of light; which on one hand, is good news for the ToughStuff sales team.

Within an hour, they’ve negotiated several deals and have even captured the interest of some of the wealthy gem brokers. They say that Ilakaka will be a good opportunity for trade and entrepreneurial expansion; undoubtedly a familiar sentiment in this dusty, lawless town.

Catch the previous articles in the East of Africa series!

NYC tops U.S. list of most expensive cities

It’s not exactly shocking to see that New York City is the most expensive city in the United States. Groceries, gasoline and other items tend to run a tad more than twice the national average. Whether you rent or buy, you’ll spend a fortune in this city, where the average price for a home is $1.1 million and an apartment, on average, will cost $3,400 a month.

So, how can so many bloggers live here? Remember: these are averages. That means someone has to be on the underside of them.

Housing prices were also among the reasons why San Francisco, San Jose, Los Angeles and Washington, D.C. worked their way into top spots on the list. Average home prices shot past $600,000 in all four of these cities. In Austin, the average home price is a much more modest $226,998, and it’s even more comfortable in Nashville, at $201,020.

The measure used to determine the cost of leaving in each of the cities is based on expenses in six categories: groceries, housing (rent/mortgage), healthcare, utilities, transportation and miscellaneous items. The prices of 57 goods in these categories were used.Six of the most expensive cities in the country are in California, with four of them among the top 10. Texas has four – Austin, San Antonio, Houston and Dallas. Most of the costliest cities are on the two coasts, though Chicago (14), Las Vegas (18), Phoenix (25) and St. Louis (35) made the top 40.

The most surprising appearance on the list of most expensive places to live is Detroit. Even though it’s plagued by unemployment of 16.7 percent, utilities are expensive. Electricity costs an average of $243.56 a month, compared to a mere $141.64 in Atlanta.

The ten most expensive cities on the list are:

  1. New York City
  2. San Francisco
  3. San Jose
  4. Los Angeles
  5. Washington DC
  6. San Diego
  7. Boston
  8. Philadeplhia
  9. Seattle
  10. Baltimore

Check out the full list here.

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[Photo via MigrantBlogger]

Photo of the Day (12.15.09)

Today’s Photo of the Day comes from Flickr user Buck Forester – shot from a kayak in Mono Lake, California. The picture was shot (drumroll please) on film using a Canon Elan 7 and Fuji Velvia 50 stock. The photographer “had a 2 mile open water paddle back to shore and got caught in some high winds” along the way…which suddenly makes me think that I need to get out from behind this computer and go have an adventure.

Mono Lake is an alkaline and hypersaline lake believed to have formed at least 760,000 years ago.

If you’re inclined to get out from behind your computer and go have an adventure – bring your camera and submit it to Gadling’s Flickr Photo Pool! We might just feature it as our Photo of the Day…

New York remains top U.S. port of entry

Through the first nine months of this year, overseas visitors passed mostly through only 15 ports of entry. These spots, according to the Department of Commerce accounted for 84 percent of entry traffic into the United States, gaining two percentage points over the first nine months of 2008. New York‘s JFK airport, Miami and Los Angeles dominated, pulling in 39 percent of all arrivals, up a percentage point from the same period last year.

Only four of the top 15 ports of entry in the United States saw traffic increase year-over-year: Miami, Orlando, Philadelphia and Fort Lauderdale. Of the 11 that posted declines, three did so at a double-digit rate. Visitation through Chicago fell a whopping 18 percent, which pushed it to seventh on the list, behind Honolulu. Houston fell a mere 3 percent, bringing up to #12, ahead of Boston. Philadelphia’s 6 percent gain moved it to #14, and a 3 percent increase in traffic through Fort Lauderdale brought it into the top 15 at the bottom spot. Detroit‘s 36 percent fall in overseas arrivals caused it to fall from the top 15.

German tourist arrested for bomb threat at Disney World

Seriously folks, who out there doesn’t know by now that it’s just not okay to make a bomb threat? It’s not okay at the airport, and it’s not okay at Disney World either. But still, we have yet another story about someone getting arrested for making a false bomb threat.

A 37-year old German tourist told security that he had two bombs in his backpack as he was passing through security at Walt Disney World in California. Not surprisingly, the security guards detained him and had a bomb-sniffing dog check out his bag. No bombs were found, and the man, who then claimed he was just joking about those bombs, was arrested and taken to the Orange County Jail. Bail was set at $10,000.

According to ABC News, this isn’t the first bomb scare at Disney. In September, a mysterious device was found under a bus. Bus service around the resort was suspended, but the device was not found to be explosive.