The Salon article posted by Michael Edelstein was originally posted by Rachel Lagunoff last year, and was the subject of some discussion then, which I can't locate at the moment. I contributed then my observations from Lima, where traffic signals and signs seemed to be taken more as suggestions than commands. There were typically three lanes of cars squeezed into two, often with one wheel up on the curb. With vehicles often just a couple of inches apart, you would have thought collisions would have been continual, but I didn't see any such indications. My impression, on the contrary, was that all drivers were hypervigilant--a very strong contrast to the U.S. The reason, I assume, is the moral hazard of insurance. I would guess that most drivers in Lima couldn't afford insurance (the cars were not expensive), and would be out of pocket for any damage to self or others.