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BACKLASH IN CUBA: OBAMA’S HISTORIC VISIT WAS A SMASH HIT IN HAVANA. FIDEL CASTRO WASN’T GOING TO TAKE THAT LYING DOWN.

By Ann Louise Bardach

Politico Magazine, June 10 2016

Original Article: BACKLASH IN CUBA

HAVANA—These days Fidel Castro doesn’t often leave his comfortable home in Siboney, a leafy suburb west of this city. But on April 19, the 89-year-old Cuban leader emerged, aides at his side, wearing a royal blue Adidas sports jacket over a blue plaid shirt, and was driven two miles to the immense Palacio de Convenciones. Inside he was greeted by a thousand members of the Communist Party, the ruling body that has been Cuba’s sole political party for half a century. They were wrapping up their four-day conference, generally held twice a decade.

Fidel is ailing and officially retired, having incrementally handed the reins of power to his brother Raul over the past decade. But he remains a history buff, a news junkie, and a man keenly concerned with his legacy. And he was not pleased with what he had been hearing.

zzzzzzzzzzzzzzzzzzzzzzzPresident Barack Obama had spent three high-profile days in Havana at the invitation of Raul. And the visit, to Fidel’s dismay, had been an immense public success, generating as much excitement and buzz on the island as the arrival of The Rolling Stones for a free concert a few days later. While state media treated Obama with cautious distance, there was no mistaking the thrill of ordinary Cubans as the president toured local sights, watched a baseball game, and drove through Havana with his family and entourage. They dubbed the president Santo Obama. “He’s more popular than the Pope!” one exultant habanera told me.

If the first state visit by a sitting president in 90 years struck Fidel as an unseemly and undeserved victory lap, there was troubling news as well from the Southern Hemisphere as well. Two of the island’s staunchest allies were fighting for their political lives. Brazilian President Dilma Rousseff was nearing impeachment; Argentina’s former president, Cristina Kirchner, was about to be indicted. Indeed, the entire left-wing coalition of Latin America, methodically cultivated by Fidel for decades, was unraveling. The death of Cuba’s Midas-like patron, Hugo Chavez of Venezuela, had birthed a feeble successor who is unlikely to survive the next year; Ecuador’s leftist president was bowing out, while Castro champion Evo Morales of Bolivia had lost a referendum for another presidential term. Peru and Uruguay had lost their center-left leaders. If not a political tidal wave, a domino effect of sorts was shifting the Southern Hemisphere from left to right.

Fidel Castro, Cuba’s Maximum Leader, understood that something had to be done.

Cuba’s Party Congress sets the economic and political agenda of the island, and many, on and off the island, had anticipated that this year’s conclave would further crack the door open to more reform. As the U.S. and Cuba have navigated their rapprochement, their progress has continuously been buffeted by the alternating agendas of the two brothers: Fidel, the intransigent revolutionary, and Raul, the cautious reformer. Obama hoped that a state visit before the Congress would give a boost to Raul’s reform-minded approach, however modest.

Cubans, too, had their eye on the meeting, and many of them expected that the Party would at least start to retire its octo- and nonagenarian ruling elite, the historicos who came up with Fidel and Raul and have been governing the island since. Raul himself had fueled those hopes by urging an age limit of 70 for senior Party officials.

It did not happen that way. Instead the Party’s elders, with the blessing of Fidel, spent the first three days of the Congress issuing a series of retrograde edicts and re-establishing their hegemony. Rejecting the retirements of the old guard, they went on to quash reforms intended to rescue the country’s moribund economy.

For a finale, Fidel addressed the Congress for the first time since 1997. The date of his appearance, April 19, was not coincidental. It fell on the 55th anniversary of the doomed U.S.-sponsored Bay of Pigs invasion, when Fidel’s army vanquished the CIA’s ill-conceived coup, captured thousands of U.S.-backed rebels, and utterly humiliated the world’s greatest superpower.

The days when Fidel routinely gave furious six-hour orations in olive-drab military garb are long gone. Now with hair white as the sands of Varadero Beach, he did not attempt to stand on his feet. Instead, he was helped to a chair at the center of the dais. “This may be one of the last times I speak in this room,” Fidel somberly told the throng.

Although Fidel spoke with a gravelly rasp, those looking to hear conciliatory words were quickly disabused of that hope. “The ideas of Cuban Communists will remain as proof on this planet,” he insisted, and their achievements “will endure.” And to that end, the firebrand Fidel exhorted those present —charged with setting Cuba’s agenda through 2030—“to fight without truce.”

“Soon, I’ll be 90 years old. Soon I’ll be like all the others,” Castro intoned as if giving his own eulogy. “The time will come for all of us.”

Then the old lion, albeit with a patchy beard and a thinning mane, roared again, one last time: “We must tell our brothers in Latin America—and the world,” he declaimed, “that the Cuban people will be victorious!”

In the closed, hermetic world of Cuban politics, Fidel’s speech marked a pivot in what has arguably been the country’s most remarkable three months since the Missile Crisis of 1962. The ceaseless whiplash includes a ballyhooed U.S. presidential visit, a Party Congress slamming the door on reform, a Fidel valedictory finale, and a series of fresh dramas in the long-running saga of the Brothers Castro.

On June 3, Raul turned 85, to be followed by Fidel’s 90th birthday on August 13, a pair of personal milestones that have the brothers keen to cement their legacies. “The Castros are robust and long-lived,” boasted Raul on his big day; he also chatted with Russia’s Vladimir Putin, who called offering birthday wishes.

As the brinkmanship between the two Castros plays out, it’s likely to shape the course of U.S.-Cuban relations for the next generation. In that respect, it was possible to see the Congress as an episode in the long-running drama between two brothers to whom appearances matter deeply. Raul, the internationalist, got to produce the Obama Show. Fidel, the nationalist, won the right to orchestrate the Party Congress and to deliver his response to President Obama’s proposal of accelerated reform and cooperation with the U.S.

And Fidel’s message was unmistakable: Over my dead body.

This was hardly the step forward the White House had hoped for when it orchestrated its historic, if hastily planned, state visit in March. For Obama, Cuba was his “Nixon in China” moment, a legacy move to close the last chapter of the Cold War in our hemisphere.

It could not have contrasted more clearly with the previous U.S. presidential visit. In 1928, the Republican Calvin Coolidge sailed into Havana Harbor on a battleship. Obama, on the other hand, delivered his first words to the Cuban people before he even debarked from Air Force One. They came, cool, breezy and direct, in the form of a tweet. “¿Que bolá Cuba?” he tweeted, using the island slang for “what’s happening?” “Just touched down here, looking forward to meeting and hearing directly from the Cuban people.”

Cuban officialdom adopted a noticeably stiffer tone. Despite Obama being the single most important head of state to visit since 1959, Raul Castro—who has personally greeted more than one pope and innumerable national leaders upon their arrival—did not appear at the airport to welcome him. Instead, when the First Family touched down amid an insistent gray rain, they were met by Foreign Minister Bruno Rodriguez, who greeted the president on the tarmac with a cordial handshake.

The government-run media gave a similarly cool treatment. On the eve of Obama’s visit, Granma, the organ of the Communist Party, devoted its six thin pages to the arrival two days earlier of President Nicolás Maduro of Venezuela, Cuba’s principal patron since the collapse of the Soviet Union. In Havana, Maduro was robustly feted, even bestowed a new honorific title, with Raul declaiming that “we will never abandon our Bolivarian revolutionary friends.”

Obama’s trip had been something of a rush job, as state visits go, and behind the scenes, the U.S. had been on the back foot from early in the process. The date of the trip hadn’t been finalized until January. One consideration in the timing was to ensure the visit came prior to the Party Congress, with the White House hoping to be a moderating influence when it convened. But the driving force, according to sources at both State and the Vice President’s office, was that the president and first lady very much wanted a family trip, and the March 20-23 dates coincided with spring break at Sidwell Friends School for daughters Malia, who’s been studying Spanish, and Sasha.

The trip planning also augmented tensions between the White House and the State Department that dated back to the historic Cuban deal announced in December 2014. The landmark agreement had effectively ended the Cold War between the countries and began the process of normalization: Cuba agreed to release numerous political prisoners and return imprisoned USAID contractor Alan Gross along with a significant U.S. intelligence asset, Rolando Sarraff, in exchange for the U.S. returning the remaining three of the “Cuban Five” convicted spies. Although negotiations like this would normally be led by the State Department, Obama had deputized his trusted aide and speechwriter, Ben Rhodes, to make a deal with Cuba happen. The 18 months of secret negotiations largely bypassed the State Department; only one State veteran, Cuba policy specialist Ricardo Zuniga, who partnered with Rhodes, was fully trusted by Obama’s innermost circle, to maintain the secrecy demanded by the administration. Likewise, Cuba’s Foreign Ministry, known as MINREX, was exiled from negotiations. The key player on the Cuban side was none other than Colonel Alejandro Castro Espín, Raul’s 50-year-old son, a steely hard-liner widely believed to be his father’s heir apparent.

The rushed trip also gave the Cubans leverage to shape the agenda, or try to: No meetings with human rights activists, they insisted, and they would decide the guest list, including which U.S. reporters made the cut—a loaded issue with Cuba, which has a long history of barring American reporters who report seriously on the island.

Matters were not looking good, and the press around the reconciliation was getting worse, until Secretary of State John Kerry canceled a trip to Havana in protest weeks before the state visit. Kerry’s bluff worked, and from then on, the U.S. got what it wanted. The Cubans reluctantly issued visas for the reporters; the president had meetings with entrepreneurs, dissidents, human rights activists and even held a news conference, all to be recorded by live television coverage.

***

It is nearly impossible to overstate the impact of President Obama’s arrival in Cuba. The shift in outlook was tectonic. In the course of the visit, I heard more than one habanero refer to Obama as “El Negro de Oro”—the Golden Black Man, a flattering pun on “black gold.” It didn’t hurt that to many Cubans, Obama just looks Cuban; his mixed-race background gives him something in common with the half the island’s population that identifies as mulato, black or mestizo today.

The Obama family made the requisite tourist stops, including the city’s grand Cathedral, built in 1777 from blocks of coral; they took a walking tour led by Havana’s remarkable official historian, Eusebio Leal. Despite failing health and being in considerable pain, Leal gamely guided the Obamas through historic Havana in and around the Plaza de Armas.

The buzz of la bola en la calle—Cuban street gossip—was that the visit had prompted previously unimaginable upgrades to parts of the capital. Every building that the Obama entourage passed had been repainted, and every road his limousine traversed had been repaved. Some streets were still being paved and re-striped just hours before his arrival. “Come visit us,” cried out residents of neglected, pot-holed barrios in what became a weeklong running joke, “y llevar el asfalto!” — “and bring the asphalt!”

The culmination of the trip was Obama’s exquisitely crafted speech, delivered in downtown Havana’s Gran Teatro with Raul Castro and the senior Politburo present, along with an array of invitation-only favored Cubans. “I have come here to bury the last remnant of the Cold War in the Americas,” Obama began, thus ending the half century David-and-Goliath face-off that once almost brought the world to its end. The speech, written by Rhodes, hit every note. Millions of Cubans watched, many saying later they were overwhelmed by emotion, as an American president spoke directly to them, not at them.

“I had tears in my eyes,” said Marta Vitorte, who watched the speech in her Vedado apartment. A former official in the Foreign Ministry, Vitorte for the past decade has run one of Havana’s most popular and upscale casa particulars, or private home rentals. “This is the beginning of the future of Cuba,” she gushed.

But for the island’s 11-million-plus inhabitants, an even more jaw-dropping moment had come earlier in the visit. On Day Two, Obama had cajoled Raul into participating in a live news conference, taking unscreened questions from American reporters.

Considering Cuba’s antagonism towards a free press, Raul’s participation was stunning and, no doubt, a spontaneous decision he quickly regretted. The Cuban leader was plainly displeased by a question on human rights by NBC’s Andrea Mitchell, but he was infuriated by CNN’s Jim Acosta who asked, “Why are there Cuban political prisoners in your country?” Raul visibly bristled, having never endured an unfriendly press query. “Give me the list right now of political prisoners to let go of them,” Raul huffed. “Tell me the name or the names … And if there are political prisoners then before night falls, they will be free. There!” (Lists of prisoner names were promptly circulated on social media—none of whom are known to have been released since.)

“Oh my god,” said a former Cuban diplomat. “It made Raul look weak. No one here has ever seen anything like that.” | AP Photo

As the conference streamed live, Cubans watched a flustered Raul lose his cool, then abruptly end the news conference and march over to Obama to raise his arm in a victory salute. A bemused Obama was having none of it, and let his arm dangle. “Oh my god,” said a former Cuban diplomat. “It made Raul look weak. No one here has ever seen anything like that.”

***

Obama’s show-stopping appearances could only have mortified Fidel Castro, a public-relations genius, who was keenly monitoring the visit from his home. “Never abandon propaganda—even for a minute,” he had counseled compatriots in a 1954 letter. “It is the very soul of our struggle.”

Today, for hard-liners of Fidel’s generation, la lucha, the struggle, means just two things: keeping the principles of the Revolution alive in Cuba; and keeping themselves alive and in power.

At the very minimum, Obama had rewritten Fidel’s carefully scripted drama, in which the U.S. plays the rapacious foe. Suddenly, America seemed far less menacing. As the Cuban novelist Wendy Guerra wrote, in the wake of Obama’s visit: “Since you left, we are little more alone, because now we have to find another enemy.”

“The enemy always drove the story,” says Marilu Menendez, a Cuban exile and branding expert who now lives in New York. “It justified all of [Fidel’s] excesses.”

Even before Obama left the island, Fidel let it be known that that he took a dim view of the visit. Just days after Air Force One departed, an article appeared in the state-run Tribuna de la Habana that accused Obama of lording over a racist country and “inciting rebellion” in Cuba by meeting with pro-democracy activists. Its headline, roughly translated, “Black Man, Are You Dumb?” was a firebomb. “Obama came, saw, but unfortunately, with the pretend gesture of lending a hand, tried to conquer,” wrote Elias Argudín, a government loyalist, “choos[ing] to criticize and subtly suggest … incitements to rebellion and disorder, without caring that he was on foreign ground. Without a doubt, Obama overplayed his hand. Minimally, I can say is … ‘black man, are you dumb?’”

Following a wave of blowback, Argudín offered a quasi-apology for “causing offense,” noting that he himself was black. In a typically mysterious Cuban chess maneuver, the story was briefly deleted, then reposted on the paper’s website, while running in the print edition.

The column was only the first public salvo from hard-liners signaling their distress over the American president’s visit. A few days later, Fidel himself published a searing 1,500-word public letter, a full-throated denunciation of the visit and, by implication, Raul, who had hosted it. Entitled “Brother Obama,” it ran on Page 1 of Granma. Obama’s grand speech (which had begun with a famous line from the beatified patriot José Martí) was derided by Fidel as “honey-coated”—merely by listening to it, he warned, Cubans “ran the risk of having a heart attack.” And then Fidel dropped the hammer: “We don’t need El Imperio—The Empire—to give us any presents!”

Though Fidel and Raul’s lives have been anchored in decades of sibling love, collaboration and feuding, Fidel must have known, or quickly learned, that his public harpooning had gone just a bit too far. And so on April 8, a week before the highly anticipated Congress, Fidel made another unusual outing from his home. Wearing a white blousy sports jacket with a black wool scarf tied around his neck, Castro, aided by a cane, spoke briefly at the school named for his late sister-in-law, Vilma Espín.

Espín had been Raul’s wife and compañera in the Revolution from the early 1950s, and had served as Cuba’s de facto first lady. But when she died in 2007, Fidel did not attend her funeral. His own illness served as a reasonable excuse, but as one former Cuban official told me in Havana, none of Fidel’s family—neither his children nor his wife, Dalia—attended either. The snub deeply disappointed the family-centric Raul, who also serves as the Castro clan’s patriarch. Since then, the official said, Raul typically has a weekly family dinner, not with Fidel’s brood, but with his in-laws, the Espíns.

So it was impossible not to interpret Fidel’s tribute as a peace offering to Raul, in advance of the Congress, where it was imperative that the brothers present a unified front. “I’m sure that on a day like today, Vilma would be happy,” Fidel intoned to the schoolchildren in his weakened voice.

Vicki Huddleston, former chief of the U.S. Interests Section in Havana, said the brothers knew they needed to project unity. “They do not want it to appear that there are divisions,” she said. Veteran Cuba negotiator and U.S. ambassador to Mexico, Roberta Jacobson, suggested that the brothers’ brinkmanship was sometimes simply ritual role-playing—a kind of “good cop-bad cop within the Castro family.”

***

The dynamic between the Brothers Castro is of great import to Cubans, of course, and also determines what issues they allow on the table with American negotiators, and at what pace they are willing to address them.

On many issues the brothers are genuinely in lockstep, such as ending the U.S. embargo. While Cuba relentlessly hammers on about “el bloqueo”—the blockade, the hyperbolic term it uses for the embargo—its current prohibitions have been whittled down to a fraction of what they once were. Through executive actions, the Obama administration has lifted an array of trade and investment restrictions. Completely normalized trade and banking will have to wait for Congress to rescind the embargo officially, but whether Hillary Clinton or Donald Trump wins, the Cubans think they will have the requisite votes in Congress to get it done. With GOP Senators Jeff Flake and Rand Paul leading the charge, they expect a vote to come at some point in 2017. But until then, the embargo continues to be useful propaganda about the bully “Empire” to the north.

The embargo can be seen as Cuba’s short game. The longer game is Guantánamo—the territory, not the prison. Even more than the embargo, this 45 square miles of Cuba’s easternmost province has long served as Exhibit A of the crushing foot of El Imperio. As Raul reminded Obama on Day Two of his visit: “It will also be necessary to return the territory illegally occupied by Guantánamo Naval Base.”

While the prisoners held in Gitmo are the issue attracting global attention, for Cuba, they’re simply helpful propaganda in its quest to get its land back. America does have a lease, a 1903 deal stipulating that Guantánamo and its deep-water harbors be used as a “coaling station.” (The rent is $4,085 annually, and the Castros proudly boast that they never cashed a rent check—although they did cash one in 1959.) Cuba now argues that America’s current use of the land is in violation of its lease. “If this was a straight-up landlord-tenant law, the landlord would kick your butt right out,” says Jose Pertierra, a Cuban-born lawyer who shuttles between Havana and Washington.

A former Cuban diplomat told me he expects the Gitmo crusade to get louder and more insistent going forward. “We don’t really care about the prison,” he said, “but [the government] is going to politicize it as a human-rights violation [and] a breach of the lease.” In Havana, I asked Ben Rhodes if the Cubans had put Gitmo on the table as a chip. “There are never discussions in which Guantánamo does not come up,” he answered.

As talks between the countries haltingly advance, it is on domestic economic and political issues where the internal Cuban factions part company. In the 1990s, with the collapse of their Soviet patron, Raul began to see Cuba’s future very differently than his older brother. Raul had studied and visited China and Vietnam, and he liked what he saw: economic powerhouses fueled by competitive capitalism but all under the steely control of the Communist Party.

Fidel, on the other hand, mistrusted any version of capitalism, however dressed up as socialist entrepreneurism. He had railed against perestroika and glasnost and repeatedly warned Mikhail Gorbachev it would be the beginning of the end. (And indeed, it was the end of the Soviets’ billion-dollar patronage of Cuba.)

Unlike his brother, Raul has acknowledged cracks in the pillars of Cuba’s 65-year-old political system; insiders consider them serious. “There is no more discipline within the traditional ranks,” a retired government official told me. “No one wants to belong to the CDR [Committees for the Defense of the Revolution, the neighborhood snitch organs]. No one feels they have to belong to the Communist Party.” He added: “Five years ago, if you didn’t belong to the CDR or the Party, you weren’t going to get a promotion or could get in trouble. But there is no more fear about it.”

Likewise, such bastions of the Revolution as the Federation of Women, the Workers Union, and the Young Communists League are losing members, I was told. All these organs that have buttressed the Revolution are in decline, losing momentum as membership oozes away. “Everybody’s looking down the road about how to be an entrepreneur or a capitalist,” said a man who has turned his home into a casa particular.

For the past two years, Raul has been beseeching allies and trading partners—Russia and much of Europe—to forgive loans and debts incurred over decades, an estimated $51.5 billion, according to Emilio Morales of the Havana Consulting Group. (That figure that doesn’t even include debts owed to Venezuela and Brazil.)

And there is a relatively new reality on the island: corruption. “It’s a daily event,” he said. “If you have money, there’s nothing you cannot get,” then lowering his voice, “even a visa to leave Cuba.“

While Fidel may choose to turn a blind eye to the domestic woes of his country, he is keenly attuned to the fact that there are larger, inexorable forces at work. The Southern Hemisphere is plainly drifting away from Cuba. In 2006, as he lay gravely ill, Fidel could gaze out at Latin America—populated by Lula in Brazil, Evo in Bolivia, the Kirschners in Argentina and his adoring student and patron, Hugo Chavez—and rest serene that fidelismo and Cuba’s future were secure. If Fidel had died that year, as he has said he very nearly did, he would have been one satisfied soul.

But 10 years later, he has lived to confront a radically different picture. Cuba has lost all its patrons, except for the dramatically reduced oil shipments from Venezuela. Both Russia and China have set limits on their future largesse. Meanwhile, the U.S. rapprochement is making it inescapably clear that Cuba’s economic salvation lies, once again, as it did in the first half of the 20th century, in American investment and tourism—meaning ever-deepening ties to Fidel’s lifelong bête noire, the U.S.

So despite the rhetorical saber-rattling, and the alternating star turns of Raul and Fidel, Cuba is going through the only door that, for now, is open: Making friends with Uncle Sam. With no fanfare or pronouncements, U.S. and Cuban negotiators met recently and laid out an agenda for meetings well into the next year covering property claims, trade, environmental concerns and cooperation on narcotics.

In late May, the Cuban government announced that small and medium-size businesses would be legalized. The Party Congress may have repudiated change, but change is happening nonetheless.

Most crucially, there is the daily bonanza of ever-multiplying dollars from U.S. tourism. “More than 94,000 Americans have visited Cuba from Jan-Apr 2016,” proudly tweeted Josefina Vidal, a Cuban official who heads the U.S. division of the Foreign Ministry in May, “a 93% increase with respect to same period 2015.”

Leonardo Padura, Cuba’s most famous living writer, recently tried to explain his country’s contradictions. “If you say [Cuba] is a communist hell or a socialist paradise, you’re missing all the nuances,” he told EFE, the Spanish news agency. “Cuba is a society that apparently has not changed, but it really has.”

That assessment could apply just as well to Raul. Both a “reformer” and a “historico” by definition and personal loyalty—having fought alongside Fidel since 1952 and, since 1959, having run the Cuban Army, the country’s most powerful political organ—Raul has evolved into a pragmatist of necessity over the past 25 years. At the same time, Fidel has doubled down his resolve to resist reform. And like Cuba, the relationship between the deeply bonded brothers apparently has not changed, but it really has.

At his birthday last week, when Raul was toasted by family and friends after hosting a Caribbean summit, there was much to celebrate—replete with historical ironies. Fidel may have rescued Cuba from the clutches of the U.S., but it is Raul who is rescuing Cuba from Fidel.

Ann Louise Bardach is the author of Cuba Confidential (2002) and Without Fidel: A Death Foretold in Miami, Havana and Washington (2009), as well as the editor of The Prison Letters of Fidel Castro and Cuba: A Travelers Literary Companion. She interviewed Fidel Castro in 1993 and 1994 and met Raúl Castro in 1994.

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DOES CUBA HAVE A FUTURE IN MANUFACTURING?

By Archibald R. M. Ritter

June 7 2016.

 Complete Article Here:  A Futute in Manufacturing? June 7 2016

Cuba has experienced a serious “de-industrialization” from which, by mid-2016, it had not recovered. The causes of the collapse are complex and multi-dimensional. The consequences include job and income loss, the loss of an important part of its economic base, the loss of much of the potential for export expansion and diversification, and rust-belt style industrial and urban decay. Can Cuba‘s manufacturing sector recover from this collapse? What can be done to reverse this situation?

I.       THE COLLAPSE OF MANUFACTURING, 1989-2014

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II.   CAUSAL FACTORS ANE CONSEQUENCES

III.  THE “LINEAMIENTOS” ON MANUFACTURING

IV. WHAT MIGHT BE THE SUCCESSFUL MANUFACTURING SUB-SECTORS IN FUTURE? 

V.  A POLICY ENVIRONMENT FOR THE PROMOTION OF MANUFACTURING

 CONCLUSION

 Does Cuba have a future in manufacturing?  There are some general comparative advantages as well as disadvantages for manufacturing that Cuba is facing as of mid-2016. First, the disadvantages:

  • Cuba’s manufacturing base has collapsed significantly;
  • Its capital stock and infrastructure generally is decayed and obsolete;
  • Low investment levels impede up-grading the capital stock;
  • Human skills relevant for manufacturing are badly decayed, mis-fitted and obsolete;
  • Cuba’s domestic market size small due mainly low real income levels;
  • Agglomerative and scale economies are minimal.

.But Cuba also has important advantages:

  • Cuba’s citizens generally are well-educated with an incentive for further learning;
  • Many Cuban citizens are energetic, creative, and entrepreneurial;
  • Cuba has a some strong manufacturing sub-sectors such as  pharmaceutical products and traditional products (beverages and tobacco);
  • Cuba has potential in some agricultural products, namely fruits and vegetables;
  • Cuba will be able to capitalize on its locational advantage with respect to the US market;
  • The potential symbiotic relationship between Cubans on the Island and the Cuban-American community will stimulate the future development of economic activities in many areas, including manufacturing.

So, does Cuba have a future in manufacturing?

The answer is “Yes” – if policy reforms are significant and expeditious regarding further enterprise liberalization and taxation and if successful monetary and exchange rate reform lead to currency convertibility.  (However, I am a pathological optimist.)

A broad-based industrial revival for Cuba is possible but will be difficult.

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Partido Comumunista de Cuba: CONCEPTUALIZACIÓN DEL MODELO ECONÓMICO Y SOCIAL CUBANO DE DESARROLLO SOCIALISTA y PLAN NACIONAL DE DESARROLLO ECONÓMICO Y SOCIAL HASTA 2030: PROPUESTADE VISIÓN DE LA NACIÓN, EJES Y SECTORES ESTRATÉGICOS

Partido Cumunista de Cuba

May 2016

Complete Documents: Cuba PCC, May 2016, CONCEPTUALIZACIÓN DEL MODELO ECONÓMICO

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GRANMA, OFFICIAL RECORD OF THE SEVENTH CONGRESS OF THE COMMUNIST PARTY OF CUBA.

GRANMA, EDICIÓN ESPECIAL, SÁBADO, 14, M AYO 2016

“El desarrollo de la economía nacional, junto a la lucha por la paz y la firmeza ideológica, constituyen las principales misiones del Partido”

The complete document in a PDF File is here: GRANMA, EDICIÓN ESPECIAL, SÁBADO, 14, M AYO 2016

Or Here: http://www.granma.cu/file/pdf/gaceta/congreso%20pcc.pdf

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BETWEEN REFORMS AND REPRESSION, CAN CUBA’S NEW FORCES OF CHANGE SUCCEED?

Ted A. Henken and Armando Chaguaceda

WORLD POLITICS REVIEW, | Tuesday, May 10, 2016

Original Article Here: Henken & Chaguaceda, Between Reforms and Repression Can Cubas New Forces of Change Succeed – WPR –

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CUBA BACKTRACKS ON FOOD REFORMS AS CONSERVATIVES RESIST CHANGE

Reuters, HAVANA, Fri Apr 29, 2016 5:56pm EDT

By Marc Frank

 Original Article: Cuba backtracks on food reform

Cuba decided at a secretive Communist Party congress last week to reverse market reforms in food distribution and pricing, according to reports in official media, reflecting tensions within the party about the pace of economic change.

President Raul Castro unveiled an ambitious market reform agenda in one of the world’s last Soviet-style command economies after he took office a decade ago, but the reforms moved slowly in the face of resistance from conservatives and bureaucrats.  At the April 16-19 congress, Castro railed against an “obsolete mentality” that was holding back modernization of Cuba’s socialist economy. But he also said the leadership needed to respond quickly to problems like inflation unleashed by greater demand as a result of reforms in other sectors.

In response, delegates voted to eliminate licenses for private wholesale food distribution, according to reports over the past week in the Communist Party daily, Granma, and state television. Delegates said the state would contract, distribute and regulate prices for 80 to 90 percent of farm output this year, compared to 51 percent in 2014, according to debates broadcast in edited form days after the event.  Reuters reported in January that Cuba had begun a similar rollback in some provinces, increasing its role in distribution again and regulating prices. The decision at the congress will extend that program.

Data released in March showed that Cuba’s farm output has barely risen since 2008, when Castro formally took over from his brother Fidel, contributing to a spike in food prices blamed on supply-demand mismatch.

Cuba imports more than 60 percent of the food it consumes.

The Union of Young Communists’ newspaper, Juventud Rebelde, reported late last year that the price of a basket of the most common foods increased 49 percent between 2010 and early 2015.  There are no government statistics on food inflation.

While hurricanes and drought have played a part in poor farm output, some experts and farmers say Cuba did not go far enough in allowing farmers freer access to seeds and fertilizers to increase production.

BACKTRACKING

But demand is rising fast. Relaxation of restrictions on self-employment has led to a boom in small restaurants, at a time when Cuba’s detente with the West is leading to record numbers of tourists and an emerging consumer class.

According to the reports, there was no discussion at the congress of moving ahead with plans to allow farmers to buy supplies from wholesale outlets, instead of having them assigned by the state.  Nor was there mention of another reform, also adopted five years ago and never implemented, to have cooperatives join forces to perform tasks currently in state hands, for example ploughing fields.

The state owns nearly 80 percent of arable land in Cuba, leasing most of it to cooperatives and individual farmers. It has a monopoly on imports and their distribution.

“They never fully carried out the reforms and gave them time to work. They stopped half way and appear unable to come up with any other solution than backtracking,” said a local agriculture expert, who asked to remain anonymous.  He said farmers often had no equipment and few supplies such as seed.

The government reported leafy and root vegetable output at 5 million tonnes in 2015, similar to 2008, and unprocessed rice and bean production of 418,000 tonnes and 118,000 tonnes, compared with 436,000 tonnes and 117,000 tonnes eight years ago. Cuba produced 363,000 tonnes of corn last year, just 3,000 more than when Castro took office.

 Cuba April 2015 044Still the Best Cigar Tobacco in the World:Vinales, above and a Tobacco Farmer near Vinales.  (Photo by A. Ritter, April 2015)
Cuba April 2015 053

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UPDATING THE PARTY: CUBA’S NEW (AND NOT SO NEW) LEADERS

Original Article: http://www.huffingtonpost.com/william-m-leogrande/updating-the-party-cubas_b_9766014.html

By William M. LeoGrande, Professor, American University in Washington, D.C.

Huffington Post, April 24, 2016

Alluding to his own mortality, Fidel Castro told the delegates to the Seventh Congress of the Communist Party he founded that this would probably be his last speech to such a gathering. When the members of the new Central Committee were announced the following day, Fidel was not among them. Generational succession is high on the agenda of Cuba’s leadership, still dominated at the highest level by “los historicos“ — the generation that fought together against the Batista dictatorship and founded the revolutionary regime.

At the previous Party Congress in 2011, Raúl Castro emphasized the need to build a contingent of experienced young men and women for the inevitable succession. To ease out the old guard, he introduced term limits for top government and party positions — no more than two five-year terms — and pledged to abide by the limit himself by stepping down as president in 2018.

At the Congress this month, Raúl reiterated the importance of rejuvenating the party. An aged leadership was “never positive,” he said, reminding listeners that three leaders of the Soviet Communist Party died within months of one another a few years before it collapsed. Henceforth, Castro proposed, 60 would be the maximum age for admission to the Central Committee, and 70 would be the maximum age for assuming any leadership position. Nevertheless, renovating the leadership will involve a “five-year period of transition to avoid doing things in haste,” Castro explained, echoing his watchword for updating the economy: “without haste, but without pause.”

The blend of old and young was visible in the new Political Bureau. Only two of the fourteen members in the old body were dropped — General Abelardo Colomé Ibarra, who retired as minister of the Interior in October 2015 because of ill-health, and Adel Yzquierdo Rodríguez, who was removed as Minister of Economy and Planning in 2014. José Ramón Machado Ventura, the architect of the party apparatus over preceding decades, retained his post as second secretary despite the fact that he is widely seen as a conservative, skeptical of economic reform. In 2013, Machado stepped down as first vice-president of the Council of State, replaced by heir apparent Miguel Díaz-Canel. Machado’s retention as party second secretary suggests that Raúl Castro is intent on maintaining unity at the top — despite differences in opinion — as the party navigates the politically treacherous waters of economic change.

Five new young members were added and their professions signal the issues the leadership sees as critical going forward. Three are technocrats: one is minister of Health, one works in biotechnology, and one works in information technology — all high value-added fields that Cuba hopes will form the foundation for its 21st Century economy. The other two new members are the leaders of the trade union federation and the women’s federation, organizations that, between them, comprise almost all Cuban adults. The inclusion of these two leaders speaks to the party’s need to keep ears to the ground for early warning signs of grassroots discontent unleashed by the economic reforms. y   yy The composition of the new Central Committee also suggests how the leadership is preparing its team for the future. Twenty-five percent of the old committee was dropped, but the membership was expanded from 116 to 142 to accommodate the addition of 55 younger members, all below the age of 60, bringing the average age of the body down to 54.5 — younger than the committee elected in 2011. The new committee is also 44.4% women, up from 41.7% in 2011 and just 13.3% in 1997; and 35.9% Afro-Cuba, up from 31.3% in 2011 and just 10.0% in 1997.

The Central Committee of the party represents an extended leadership group, the members of which typically hold other important posts in various state institutions. The relative bureaucratic influence of those institutions can be seen in the Central Committee’s changing composition. The biggest increase in representation in the new committee is for government officials working in economic and scientific fields (Table 1). They represent 23.2% of the new Central Committee, up from just 19.8% in the 2011 committee. Presumably, these people are more technocratically minded, and more likely to support economic reform. Representation of the party apparatus increased only slightly, to 32.4% of the committee, up from 31.0% in 2011.

Contrary to pundits who insist that the Cuban regime is really run by the military, the armed forces and police were the big losers in the renovation of the Central Committee. Even though the committee expanded from 116 to 142 members, the number of military and security officials fell in absolute terms. They comprise just 9.2% of the membership, down from 13.8% in 2011. Moreover, the long term trend in the number of active duty military and security officials in the Central Committee has been downward ever since 1965 (Figure).

Fidel Castro wasn’t the only prominent Castro not included in the new Central Committee. Neither Raúl’s son, Col. Alejandro Castro, who negotiated the December 17 agreement to normalize relations with the United States, nor Raúl’s daughter, LGBT activist Mariela Castro, were included. Their absence was, no doubt, a disappointment to opponents of the U.S. opening to Cuba who have been predicting that Alejandro would succeed his father, thereby consolidating a Castro family dynasty — North Korea in the Caribbean.

The new Central Committee of the Cuban Communist Party reflects the priorities and style of its First Secretary. The party itself maintains the leading role, but the committee has a more technocratic tilt, positioning it for the complex economic tasks ahead. It combines a large new cohort of younger members, while retaining a core of experienced elders to smooth the generational transition. The increased representation of women and Afro-Cubans reflects their important role in society and politics, connecting the party to these key constituencies. In short, the new leadership exemplifies a party updating itself for the future without renouncing its past. yyy yyyyy yyyyyy

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DID OBAMA CHANGE CUBA?

By Joel Simon

Columbia Journalism Review, April 19, 2016

Original article: Did Obama Change Cuba?

When President Obama made his historic visit to Cuba last month, the US media followed. At a joint press conference on March 21 with Cuban president Raúl Castro, Obama called on CNN’s Jim Acosta, who asked the Cuban leader if he would be willing to release political prisoners. A flustered Castro sputtered and demanded a list of those imprisoned. Obama directed aknowing wink at the assembled journalists.

Obama’s implication was that by maneuvering to force Castro to respond live in front of the Cuban people and the world, he had bolstered the power of the press. Indeed, one of the key goals of Obama’s Havana trip was to create more space for critical expression in a country that until recently was one of world’s most censored. Among the 13 dissidents Obama invited to meet with him at the US Embassy in Havana on March 22 were several independent journalists. He insisted that his joint news conference with Castro be broadcast live.

While it’s too early to assess the overall impact of Obama’s visit, it seems the right moment to ask a more basic question: Has anything changed for journalists on the island in the month since Obama departed?

Miriam Leiva, an independent  journalists and blogger who met with Obama, sees the presidential visit as accelerating trends already under way. “The Cuban government is losing credibility day after day,” Leiva noted by phone from Miami, where she was visiting relatives. “President Castro made many promises and has not been able to fulfill those promises.”

Leiva has been a leading voice of independent journalism in Cuba since 2003, when her husband, economist turned journalist Oscar Espinosa Chepe, was arrested as part of a sweeping crackdown known as the Black Spring. Espinosa Chepe was released after two years due to poor health (he died of a liver ailment in 2013). But many of those detained along with him were not freed until 2010, in a deal brokered by the Spanish government and the Cuban Catholic Church.

By far the favored strategy employed by the Cuban government against dissident journalists has been organized stigmatization and isolation. Independent journalists have been confronted by screaming mobs, denounced in the state media, and relentlessly tracked by state security.

That is why Leiva is so heartened by the fact that  her neighbors now greet her in the street and even occasionally read her stories, which are distributed by email. “People are now more open, they feel less fear,” she says. “We ourselves have gained spaces.”

Indeed, Cuba’s media landscape is no longer static. While the stale state media predominates, there are over 3,000 blogs. Some espouse dissidence and resistance; others express support for the government and the Communist Party while highlighting shortcomings by local officials. “I wanted something small that wouldn’t be seen as a threat by the state media,” said blogger Elaine Díaz Rodríguez in arecent CPJ report. Díaz was the first Cuban journalists to receive a Nieman Fellowship from Harvard University.

For Yoani Sánchez—another leader in the independent media—Obama’s visit had tremendous symbolic value. When Obama arrived in Havana in the middle of a rainstorm, he carried his own umbrella. Cuban functionaries had aides hold theirs. Obama is youthful; Cuba’s leadership is decrepit. Obama is black; Cuba’s leadership is white (despite the fact that Cuba is a majority black country); Obama shows off his family; Cuban leaders hide theirs.

Speaking this weekend at the International Symposium of Online Journalism, an annual media confab in Austin, Sánchez said the primary impetus for change in Cuba has been technology. Only 5 percent of the Cuban population has access to the internet (according to Sánchez; other sources say it’s higher). Cubans must use creative means to access information, including emailed PDFs and flash drives, which are easy to hide and distribute. More recently, Cubans have been flocking to a handful of expensive WiFi hotspots set up around Havana.

“We thought the Cuban people would take to the streets to topple the government, but instead they have done so to get online,” Sánchez quipped.

Sánchez, who started out posting an irreverent personal blog, is now essentially a publisher. She employs a regular staff that puts out a online newspaper, 14YMedio, that provides comprehensive coverage of daily events. “I’m worried less about who will be our next president, and more about who will our next citizens,” Sánchez explained. “As citizens become empowered, they need more information to make decisions. We want to be the newspaper of the Cuban transition.”

While the changing environment for news and information in Cuba is exciting, it is important to keep in mind that is still for the most part taking place within limits set by the Cuban Communist Party, which while no longer monolithic, is still firmly in control. Its reasons for opening Cuba are complex, but they are largely dictated by pragmatic concerns and a desire for self-preservation.

Even as it ceded the limelight briefly to Obama during his trip, the government made a point of consistently affirming the limits of dissent. Dissidents were roughed up and detained prior to and following Obama’s visit; the state media, which operates in accordance with Communist Party dictates, published identical headlines; Fidel Castro lashed out at Obama as soon as he departed the island; the Communist Party Congress, which ends today and will set the stage for transition from nearly six decades of rule by the Castro brothers, has been a particularly opaque affair, even by Cuban standards. Raúl Castro emphatically rejected new reforms during his opening speech, which only state media were invited to cover.

In visiting Havana, the gambit for Obama was that his mere presence could accelerate the opening in Cuba; the gambit for Raúl Castro was that he could gain international credibility and legitimacy without making political concessions. With his press conference wink, Obama implied that he had gotten the upper hand, but that is far from clear. While the press conference showed that Raúl Castro doesn’t like answering tough questions, there is no real evidence that he will be forced to do so again anytime soon.

After all, as 14YMedio photojournalist Luz Escobar pointed out, no independent Cuban reporters were present. “Cuba continues to be hostile for journalists” she says. “What gives me hope is the changing attitudes of the Cuban people.”

Joel Simon is a CJR columnist and the executive director of the Committee to Protect Journalists. His second book, The New Censorship: Inside the Global Battle for Media Freedom, was published by Columbia University Press in November 2014.

 

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ASSOCIATION FOR THE STUDY OF THE CUBAN ECONOMY, PAPERS AND PROCEEDINGS OF THE TWENTY-FIFTH ANNUAL MEETING, JULY 30-AUGUST 1, 2015

ASCE: Cuba in Transition: Volume 25

Papers and Proceedings of the Twenty-Fifth Annual Meeting,  July 30-August 1, 2015

All papers are hyperlinked to the ASCE Website and can be seen in PDF format.

wwwPreface

Conference Program

Table of Contents

Reflections on the State of the Cuban Economy Carlos Seiglie

¿Es la Economía o es la Política?: La Ilusoria Inversión de K. Marx Alexis Jardines

Los Grandes Retos del Deshielo Emilio Morales

Preparing for a Full Restoration of Economic Relations between Cuba and the United States Ernesto Hernández-Catá

Economic Consequences of Cuba-U.S. Reconciliation Luis R. Luis

El Sector Privado y el Turismo en Cuba Ante un Escenario de Relaciones con Estados Unidos José Luis Perelló Cabrera

The Logical Fallacy of the New U.S.-Cuba Policy and its Security Implications José Azel

Why Cuba is a State Sponsor of Terror Joseph M. Humire

The National Security Implications of the President’s New Cuba Policy Ana Quintana

Factores Atípicos de las Relaciones Internacionales Económicas de Cuba: El Rol de los Servicios Cubanos de Inteligencia Enrique García

Entrepreneurship in Post-Socialist Economies: Lessons for Cuba Mario A. González-Corzo

When Reforms Are Not: Recent Policy Development in Cuba and the Implications for the Future Enrique S. Pumar

Revisiting the Seven Threads in the Labyrinth of the Cuban Revolution Luis Martínez-Fernández

La Economía Política del Embargo o Bloqueo Interno Jorge A. Sanguinetty

Establishing Ground Rules for Political Risk Claims about Cuba José Gabilondo

Resolving U.S. Expropriation Claims Against Cuba: A Very Modest Proposal Matías F. Travieso-Díaz

U.S.-Cuba BIT: A Guarantee in Reestablishing Trade Relations Rolando Anillo, Esq.

Lessons from Cuba’s Party-Military Relations and a Tale of “Two Fronts Line” in North Korea Jung-chul Lee

The Military, Ideological Frameworks and Familial Marxism: A Comment on Jung-chul Lee,“A Lesson from Cuba’s Party-Military Relations and a Tale of ‘Two Fronts Line’ in North Korea” Larry Catá Backer

Hybrid Economy in Cuba and North Korea: Key to the Longevity of Two Regimes and Difference Young-Ja Park

Historical Progress Of U.S.-Cuba Relationship: Implication for U.S.-North Korea Case Wootae Lee

Estimating Disguised Unemployment in Cuba Ernesto Hernández-Catá

Reliable Partners, Not Carpetbaggers Domingo Amuchástegui

Foreign Investment in Cuba’s “Updating” of Its Economic Model Jorge F. Pérez-López

Global Corporate Social Responsibility (GCSR) Standards With Cuban Characteristics: What Normalization Means for Transnational Enterprise Activity in Cuba Larry Catá Backer

Bienal de la Habana, 1984: Art Curators as State Researchers Paloma Checa-Gismero

Luchas y Éxitos de las Diásporas Cubana Lisa Clarke

A Framework for Assessing the Impact of U.S. Restrictions on Telecommunication Exports to Cuba Larry Press

Measures to Deal with an Aging Population: International Experiences and Lessons for Cuba Sergio Díaz-Briquets

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CUBANS LOOK TO COMMUNIST PARTY CONGRESS FOR EVIDENCE OF REFORMS; A month after Obama’s historic visit disenchantment over reforms is setting in.

Financial Times, April 15, 2016 10:38 am

Marc Frank in Havana and John Paul Rathbone in Miami

Original article: Communist Party Congress

Oslavi Ramirez wistfully imagines the day when he can freely buy the cheese, tomato paste and disinfectant he needs to run his two cafés in a poor neighbourhood on the outskirts of Havana.

“They made the reforms but forgot the conditions to make them work,” complains Mr Ramirez of Cuba’s missing wholesale markets where restaurateurs in other countries normally buy their food. “It’s as if they made a [toy] doll and forgot the head.”

A month after the euphoria of US President Barack Obama’s historic visit to Cuba — which raised hopes of an easing of economic sanctions and greater freedoms — disenchantment and frustration are setting in.

Cubans are now looking to the Communist Party Congress, which begins on Saturday, for evidence of a deepening of economic reforms, and for signs the party’s “historic generation” will begin to hand over the baton of power to younger counterparts.

Few, though, have high hopes.

“There is a lot of discontent,” says Omar Esteban, a 30-year-old Havana taxi driver. “There’s scarcity and it’s getting worse, in the entire economy, in everything you need. I doubt the congress will do anything to improve our situation.”

The four-day congress, the first in five years, comes at a critical juncture for the Caribbean island nation.  It will probably be the last presided over by a Castro brother: President Raúl Castro, 84, has said he will retire in 2018; his predecessor Fidel, aged 89, stepped down in 2006. Many expect the gathering of 1,000 party members will elect a new politburo, rejuvenating the current 14-strong body, which has an average age of 70.

“The historic generation is passing its biological capabilities . . . It has to renovate,” says Reinaldo Escobar, news editor of 14ymedio.com, an independent news website. “But which new faces will appear? They are the new wave. That’s why this Congress is important.”

The congress will also set Cuba’s economic course over the next several years. Reform hopes rose after the last meeting in 2011 liberalised some aspects of Cuba’s Soviet-style system, such as allowing small businesses. Detente with the US has further boosted expectations.

 But economic growth has averaged just 3 per cent since then — well below the more than 5 per cent growth rate the government seeks. One reason for the underperformance is the drop in commodity prices. This has squeezed the sale of Cuban professional services, such as doctors, to countries hit by the commodity price slide such as Venezuela, Brazil, Angola and Algeria. Lower revenues have, in turn, forced Cuba to cut its imports, according to diplomats, leading to growing domestic scarcities.

“Nothing has changed. They say produce more, but there are no resources,” says Ramon, a small farmer in the town of Artemisa, west of Havana. “It’s worse than five years ago.”

During last month’s visit, Mr Obama laid down a gauntlet when he spoke publicly of how Cubans “should not fear change [they] should embrace it.” “Even if we lifted the embargo tomorrow, Cubans would not realise their potential without continued change in Cuba,” the president added.

But worryingly for Cubans who struggle to feed their families on average state wages of $25 a month, the government has recently back pedalled on liberalisation. It now wants to increase, instead of reduce, its role in food distribution, likely worsening the shortages of supplies small restaurateurs such as Mr Ramirez face.

“Everyone knows that will not work . . . There are already reports of food rotting,” says a Cuban party member and agricultural expert. “It worries me.”

Some blame the reforms’ timidity and slowness on the tension between allowing economic but not political liberalisation. “They [the government] fears a Yeltsin free-for-all,” says one European businessman with long experience of Cuba, referring to the chaotic period following the collapse of communism in Russia. “They are much more impressed by China.”

Others cite stiff bureaucratic resistance to liberalisation.

“Too many people are used to administrating the system in the old way,” says Rafael Hernández, editor of Temas, a reform-orientated cultural magazine. “Too many people have become comfortable in their positions. They do not want to let go, they do not want to change, they do not want to cede their positions.”

Whatever the case, the public mood has soured. A few days after Mr Obama’s visit, the official newspaper of Cuba’s communist party printed a front-page editorial which argued increasingly vocal public dissatisfaction is “a sign of the democracy and public participation that are the intrinsic characteristics of the socialism we are constructing”. It also acknowledged that only 21 per cent of the 2011 reform programme had been implemented.

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FOTOS del VII Congreso del Partido Comunista de Cuba,

16 de marzo de 2016 (Radio Rebelde)

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