One of the best parts of worldschooling is learning about real-world economics—not through textbooks, but by experiencing how money works differently in every country. As we’ve traveled through Morocco, Mauritania, Senegal, Pakistan, Canada, and the United States, I’ve started thinking more about Purchasing Power Parity (PPP)—a concept that explains why $10 buys you vastly different things in different places.

What is PPP and Why Does it Matter?

PPP, or Purchasing Power Parity, is an economic theory that helps us compare the cost of goods and services across different countries by adjusting for local price levels. The idea is simple: $1 in Canada won’t buy you the same things as $1 in Pakistan or $1 in Morocco. Some economies stretch your money further, while others drain it faster.

For example:

• In Pakistan, $10 can buy a full meal for a family of four. (A common person meal with chicken karhai, daal maash naan, kachubar (salad) and bottle of water or soda)
• In Morocco, it might cover a simple street food meal for two. (One tajine shared with bread)
• In Canada or the U.S., $10 barely gets you a meal for one at McDonald’s.

So why does this happen? It comes down to GDP per capita, local wages, cost of living, and production capabilities.

GDP Per Capita and Population Size: The Economic Divide

One way to measure a country’s wealth is GDP per capita—the total economic output divided by its population. Here’s a rough comparison:

• Canada – $52,000 (high income, strong local production, high wages)
• United States – $76,000 (largest economy, expensive services, high consumer spending)
• Pakistan – $1,700 (lower income, cheaper goods, but weaker infrastructure)
• Morocco – $3,600 (middle-income, decent infrastructure, tourism-driven economy)
• Mauritania – $1,900 (low-income, import-dependent, resource extraction-based economy)
• Senegal – $1,500 (similar to Mauritania, with agriculture and fishing playing key roles)

This explains why Mauritania felt more expensive than Morocco—even though it has a lower GDP per capita. The reason? Imports and lack of local production.

Why is Mauritania Expensive?

Mauritania doesn’t produce much domestically. Most goods—food, fuel, even basic consumer products—are imported, which leads to high import duties and a dependence on external markets. In contrast, Morocco has a well-developed agricultural sector, local production, and established trade routes, allowing for lower prices on everyday goods. In business, this is a prime example of how supply chain constraints dictate cost.

In Morocco, you can buy local produce, bread, and meat at a fraction of the cost compared to Mauritania, where almost everything is marked up due to transportation and tariffs. This is a textbook case of how self-sufficiency (or the lack of it) impacts an economy.

The Camel Market in Nouakchott: A Business Idea?

Now, let’s take these economic lessons and apply them to a real-world business idea: Would it be profitable to buy a camel in Mauritania, ride it across North Africa, and sell it in Morocco? Surprisingly, the answer is most likely yes. Here’s why:

1. Lower Cost in Mauritania – Camels are abundant, and prices are lower due to supply exceeding demand.
2. Higher Demand in Morocco – Morocco has a growing tourism industry, and camels are valuable for desert tours and cultural attractions.
3. Cost of Transport – Riding a camel across the desert minimizes transportation costs. You feed it along the way, avoiding high fuel expenses.
4. Business Opportunity – The demand for well-trained camels in Morocco is higher than in Mauritania. If you train the camel and sell it for tourism purposes, you increase its value.

This may sound like a joke, but it’s a real-world demonstration of economic arbitrage—buying something where it’s cheap and selling it where it’s valuable. Traders have been doing this for centuries along the Sahara trade routes.

Final Thoughts: Learning Business and Economics on the Road

This journey through North Africa has reinforced the importance of understanding PPP, GDP per capita, trade, and supply chains—not just in theory, but in practice. Whether it’s navigating an overpriced meal in Mauritania, stretching a budget in Morocco, or analyzing the profitability of a camel trek, economics is happening all around us.

Worldschooling isn’t just about seeing new places—it’s about understanding how those places function. Money doesn’t work the same way everywhere, and the more we travel, the better we understand the mechanics of wealth, trade, and survival in different economies.

So, who’s up for a camel ride across North Africa?

(Interesting addition past Chat GPT. Its unfair when you see purchasing power parity to see the actual costs. For example, you cannot see a basket of goods to what you think is a basket of goods compared to the West as the West should not be looked at for comparison. For example, Mauritania and Senegal or even Morocco cannot be as expensive as we think as the GDP per capita is so much lower. So for an experiment compare living like a local buying like a local and eating like a local for a week or a month (or even a day) and then compare it to your standard you want to achieve in the same place. Everything will soon make sense. Yesterday I saw a lady on the streets of Dakar selling a french baguette with some sauce and that’s that. A snack, but what would the cost of that be?)