Why is Lagos, Nigeria, more expensive to live in than LA?

Question

http://ca.pfinance.yahoo.com/ca_finance_general/771/worlds-most-expensive-cities/

http://upload.wikimedia.org/wikipedia/commons/thumb/7/7c/A_street_in_Lagos,_Nigeria.jpg/800px-A_street_in_Lagos,_Nigeria.jpg

http://www.worldexecutive.com/cityguides/pics/los_angeles/los_angeles_1.jpg

Answer 1

I don't know what ranking you are using, but you have to be careful.

This one, for example, notes explicitly that this rating applies to an expatriate living the good life:

http://www.finfacts.com/costofliving.htm

And this one notes that its list is based on, "The cost of a weighted shopping basket geared to Western European consumer habits containing 122 goods and services including rent."

http://www.citymayors.com/economics/expe...

Now, what do you think the ratings would be if we used the cost of living for the mean native in the city - one who lived better than half and worse than half of the other residents? I'd guess Lagos would fall way down in the listings.

As to why living a Western life style in lagos is so expensive? I can't say, but I can note several points:

1. There are many places in the world without a regular power grid. Maintaining your own electric generator and running it on a regular basis is not cheap. Ditto for other utilities.

2. Since so few people are buying the sorts of things the rich can afford, importing them is going to be more expensive than where the market is alrge.

3. Since anyone buying these things is known to be rich (and to want to show off that they are rich), vendors have every incentive to jack up the price still further - as much as the market will bear.

4. Because of its large market and weak dollar, luxury goods in the U.S. tend to be cheaper than elsewhere. Thus we have Europeans coming to the U.S. on shopping vacations.

http://www.businessweek.com/bwdaily/dnfl...