Author Archives: Díaz-Briquets Sergio

Association for the Study of the Cuban Economy, 2011 Conference Proceedings

ASCE, the Association for the Study of the Cuban Economy has just published the Proceedings of its 2011 Conference. The Proceeding include a wealth of information and analyses. All articles for 2011 and indeed all the Conference proceedings for the last 21 years are freely available on the ASCE Web Site

Below is the Table of Contents for the 2011 Proceedings with all articles hyper-linked to the original ASCE source.

Preface

Conference Program

Table of Contents

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Cuba: A Half-Century of Monetary Pathology and Citizen’s Freedom of Movement

By Arch Ritter

UNIVERSAL DECLARATION OF HUMAN RIGHTS

Article 13. (1) Everyone has the right to freedom of movement and residence within the borders of each state.  (2) Everyone has the right to leave any country, including his own, and to return to his country.
Article 30. Nothing in this Declaration may be interpreted as implying for any State, group or person any right to engage in any activity or to perform any act aimed at the destruction of any of the rights and freedoms set forth herein.

In December 2009, I made a formal invitation to two Cuban citizens to visit Canada, following the official “Procedure for Inviting a Cuban National to Visit Canada” as laid out by the Cuba’s Ministry of Foreign Affairs (MINREX). I paid the required Consular Fee of $CDN 256.00 for each invitation. The two Cuban citizens invited were Yoani Sanchez and Miriam Celaya. I thought naively and foolishly that while Yoani Sanchez had been denied the right to leave Cuba a number of times before December 2009 when she had been invited by official institutions, perhaps a personal invitation would be successful. I of course was wrong. The Exit Permits of course were refused. The Consulate of Cuba in Ottawa of course refused to return the $512.00.

Yoani Sanchez

Miriam Celaya

The lack of freedom of movement of Cuban citizens is well known. The case of Yoani Sanchez is a cause célèbre and also a public relations disaster for the Government of Cuba. A number of analysts have written eloquently on the practice of the Cuban Government to dishonor its commitment to Article 13 of the United Nations Universal Declaration of Human Rights cited above. (See Ana Julia Faya: Nosotros tampoco viajamos libremente a Cuba, “Los permisos de entrada y salida del país son una violación de los derechos de los cubanos” and Haroldo Dilla Alfonso, “The (Non) Right of Cubans to Travel, Havana Times, February 01, 2011”

Sergio Diaz-Briquets has presented a comprehensive and comparative analysis of the Consular Fees charged by the Governmemt of Cuba for the acquisition of a passport, its renewal while abroad, and various other consular services (ASCE Conference 2010). He concluded that the Consular Fees are simply abusive. (See  S. Diaz-Briquets, Government-Controlled Travel Costs to Cuba and Costs of Related Consular Services: Analysis and International Comparisons )

However, the most egregious violation of the freedom of movement of Cuban citizens lies less in the exorbitant consular fees that are routinely charged to Cubans abroad for consular services and the Exit Permit controls over Cuban citizens and more in Cuba’s monetary and exchange rate system.  Cuba’s currency has been inconvertible for 50 years and the dual monetary and exchange rate system has prevailed for the last 20 years. Currency inconvertibility means that citizens can not routinely change their earnings for foreign currencies in order to travel freely. Instead, from 1961 to 1992 they have had to get permission from the Government to exchange their earnings in Moneda Nacional into a foreign currency. On the other hand, anyone on official government business or activities sanctioned by the Government could get access to foreign exchange. This meant that for the average citizen travel was highly restricted unless one could find a foreign sponsor to pay the bills.

With the dual monetary system coming into play in the early 1990s, the economic powerlessness of most Cuban citizens was further intensified. With the collapse of the value of the “old peso” (Moneda Nacional) vis-a-vis the US dollar (and then the convertible peso CUC) the purchasing power of earnings in the official economy also collapsed. At the exchange rate for Moneda Nacional to the US dollar at around 26 to 1, the average monthly income is somewhere around US$ 20.00. Cuba’s monetary system impoverishes Cuban citizens in terms of the international transferability of their earnings from work.

In order to travel abroad, Cuban citizens now have three options. First, they can work for some branch of the government, mixed or state enterprises or organizations such as Universities for which travel abroad on official business can occur. Second, they can marry a foreigner for convenience or in sincerity – Spaniards and Ecuadoreans have been predominant recently – who then provides hard currency funding for travel abroad. Or third, they can now convert their Moneda Nacional earnings into Convertible pesos at the ratio of 26 to 1 and then acquire foreign currency through various channels with the convertible pesos. For most citizens, travel abroad is essentially blocked by the monetary and exchange rate systems.

The central planning system and the generalized controls on the economy adopted in 1960-61 meant that inconvertibility would have happened in any case. However, inconvertibility occurred under the watch of Che Guevara, who at the time was President of the National Bank and Minister of Finance as well as Minister of Industries (which included Basic Industry, Light Industry, Mining, Petroleum, and the sugar mills. Guevera was the indisputable “czar” of the Cuban economy.

Monetary inconvertibility and the accompanying loss of freedom of movement is one of Che Guevara’s gifts to the Cuban people. This has been compounded by the monetary and exchange rate policies of the Fidel and Raul Castro Presidencies after about 1990, which generated the dual system and which have so far been unable to come to grips with it and establish a unified and convertible currency.

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Cuba in Transition: Volume 20 Proceedings of the Twentieth Annual Meeting of the Association for the Study of the Cuban Economy

The papers from the 2010 meetings of the Association for the Study of the Cuban Economy have just been posted on the ASCE Web Site and can be found at Papers and Proceedings of the Twentieth Annual Meeting of ASCE.

As usual, a wide range of excellent papers are presented at ASCE’s annual meetings Many essays include valuable, original and ground-breaking analyses on a wide range of economic as well as socio-economic and politico-economic issues..

A Table of Contents with hyperlinked titles of the papers is included below.

Preface

Conference Program

Table of Contents

The Cuban Economy in 2010 as Seen by Economists Within the Island and Other Observers

Joaquín P. Pujol

La Economía Cubana: ¿Tiempos de Esperanza?

Oscar Espinosa Chepe

Crisis Management of Cuban International Liquidity

Luis R. Luis

If It Were Just the Marabú… Cuba’s Agriculture 2009-10

G.B. Hagelberg

The Numbers Diet: Food Imports as Economic Indicators

Lauren Gifford

Government-Controlled Travel Costs to Cuba and Costs of Related Consular Services: Analysis and International Comparisons

Sergio Díaz-Briquets

Envios de Remesas a Cuba: Desarrollo, Evolución e Impacto

Emilio Morales Dopico

Dashed Expectations: Raúl Castro’s Management of The Cuban Economy, 2006–2010

Jorge F. Pérez-López

Cuba: ¿Hacia otro “Periodo Especial”?

Mario A. González-Corzo

Cuban Education and Human Capital Formation

Enrique S. Pumar

La Masonería Cubana y su Contribución a la Sociedad Civil

Jorge Luis Romeu

The Internet and Emergent Blogosphere in Cuba: Downloading Democracy, Booting Up Development, or Planting the Virus of Dissidence and Destabilization?

Ted Henken

El Insostenible Apoyo Económico de Venezuela a Cuba y sus Implicaciones

Rolando H. Castañeda

Cuba-Venezuela Health Diplomacy: The Politics of Humanitarianism

Maria C. Werlau

British Policy-Making and Our Leyland in Havana (1963–1964)

Maria Carla Chicuén

La Desigualdad en Cuba: El Color Cuenta

Natalie Kitroeff

A Macroeconomic Approach to Foreign Direct Investment (FDI) Inflow from the People’s Republic of China to Cuba

Orlando R. Villaverde

A Survey of the Relationship between Cuba and China: A Chinese Perspective

Pin Zuo

The Evolution of the Cuban Military: A Comparative Look at the FAR with the
Bureaucratic-Authoritarian Model of South America

Michael Aranda

Empowering the Cuban People Through Access to Technology

Cuba Study Group

The Global Economic and Financial Crisis and Cuba’s Healthcare and Biotechnology Sector: Prospects For Survivorship and Longer-term Sustainability

Elaine Scheye

Globalization and the Socialist Multinational: Cuba and ALBA’s Grannacional Projects at the Intersection of Business and Human Rights

Larry Catá Backer

Racismo Estructural en Cuba y Disidencia Política: Breves Antecedentes

Ramón Humberto Colás

Arbitration and Mediation: Impartial Forums to Resolve International Commercial Disputes in Cuba

Rolando Anillo-Badia

Gazing at the Green Light: The Legal and Business Aspects of Real Property Investment in Cuba

Richard M. David

The Creation and Evolution of the Legal Black Hole at Guantánamo Bay

Michael J. Strauss

Las Relaciones Cuba-Israel: A la Espera de una Nueva Etapa

Arturo López-Levy

Revolutionary Cuba’s GDP: A Survey of Methods and Estimates

Jorge F. Pérez-López

A Dynamic Factor Model of Quarterly Real Gross Domestic Product Growth in the Caribbean: The Case of Cuba and the Bahamas

Philip Liu and Rafael Romeu

Cuba’s Attempts at Democracy: The Colony

Roger R. Betancourt

Lessons Learned from 20 Years of Privatization: Albania, Estonia and Russia

Jorge A. Sanguinetty and Tania Mastrapa

The Cuban Tourism Sector: A Note On Performance in the first Decade of the 21st Century

María Dolores Espino

Prospects for Tourism in Cuba: Report on the Residential Sales/Leases in Golf and Marina Developments

Antonio R. Zamora

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