Tag Archives: Emigration

CUBAN BASEBALL PLAYERS DEFECT DURING TOURNAMENT IN MEXICO

BBC, October 4, 2021

Original Article: Cuban baseball players defect

At least nine young Cuban baseball players have defected during a tournament in Mexico, officials say, in the largest defection of Cuban athletes in years.

Cuban officials called the players’ actions during the World Cup for athletes under the age of 23 “vile abandonments”, state media report.

The rest of the team, which originally had 24 players, will return on Monday.

Cuban athletes have a long history of defecting while competing abroad.

Baseball players often leave to sign up with Major League Baseball (MLB) clubs in the US, as strained relations between the US and Cuba prevent them from taking part in a regular hiring process.

The statement by Cuba’s National Sports Institute, published on the official JIT website and quoted by the Associated Press news agency, did not name the players who had stayed in Mexico.

But baseball journalist Francys Romero said a total of 12 players had defected.

A deal that allowed some Cuban players to sign with MLB clubs was cancelled by President Donald Trump in 2018, in an attempt to pressure the island’s Communist government to implement political changes. The agreement meant athletes no longer had to abscond and leave Cuba illegally.

Defections of high-profile sportsmen and women from Cuba is nothing new – but is always an indication of the extent of the problems at home. And if this latest round of pitchers, batters and catchers to flee their hotel in Mexico is anything to go by, economic conditions on the island are especially acute at present.

The mass defection is of particular frustration and embarrassment to the Cuban authorities not only for the number of players to defect at once, but also their ages. In their early 20s, they represented the future of Cuban baseball, charged with returning Cuba to the top after the island failed to qualify for the Olympics in Tokyo 2020 for the first time in its history.

Unsurprisingly, the government responded by attacked the players for being “weak” in morals and ethics. However, its main criticism was for the US for maintaining the decades-long economic embargo while offering such lucrative contracts that the cream of Cuban baseball can hardly refuse. Cuba also accuses the MLB of engaging in practices tantamount to human-smuggling in order to bring the players to the US.

The truth is, however, as long as those multi-million dollar contracts and endorsements are available just 90 miles (145km) away from Cuba, defection will remain a sorely tempting option for any aspiring baseball star on the increasingly impoverished island.

The most recent high-profile player to defect was 22-year-old César Prieto, one of the country’s top baseball stars, who abandoned the team earlier this year while in Florida for an Olympics qualifying event.

Ballet dancers and footballers are also among athletes who have fled during major competitions.

Cuba is in the midst of an economic crisis, with food and medicine shortages, and has been hit hard by US sanctions and Covid-19. In July, thousands of people joined the biggest anti-government protests in the island for decades.

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CHANGES IN CUBAN SOCIETY SINCE THE NINETIES

Wilson Center Reports on the Americas No. 15: Changes in Cuban Society since the Nineties

By  Joseph Tulchin, Lilian Bobea, Elizabeth Bryan and 2 more

Complete Report: Changes in Cuban Society since the Nineties

This book aims to provide academics, policymakers, NGOs and the media in Cuba, Latin America and North America, with a better understanding of the changes in Cuban civil society since the collapse of the Soviet Union and their implications in the areas of research, academic and literary production, and public policy. It presents and assesses critically the changes that have taken place in Cuban society, economy, politics, and culture as Cuba emerges from the crisis of the 1990s.  This volume also aspires to contribute in a meaningful way to the political debate in the United States and to the dialogue between the United States and Cuba.  It brings together contrasting perspectives marked by occasionally opposing views from both within and outside the island.  It is the result of a seminar held in the Dominican Republic in December 2003 under the auspices of the Latin American Program of the Woodrow Wilson International Center for Scholars and the Facultad Latinoamericano de Ciencias Sociales, with the generous contribution of The Ford Foundation.

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CUBA’S ECONOMIC WOES MAY FUEL AMERICA’S NEXT MIGRANT CRISIS

April 16, 2021

Author: William M. LeoGrande, Professor of Government, American University School of Public Affairs and senior fellow at the Washington Office on Latin America, a human rights advocacy group.

Original Article: Cuba’s Economic Woes May Fuel America’s Next Migrant Crisis

Not all of the migrants hoping to claim asylum in the United States are fleeing Central America’s violence-torn “Northern Triangle” of Guatemala, Honduras and El Salvador, contrary to popular perception.

Of the 71,021 asylum-seekers waiting in Mexico for their applications to be processed in the U.S. as of late February, 16% were Cuban, according to federal immigration data.

That makes Cubans the third-largest group of migrants, just ahead of Salvadorans, and after Guatemalans and Hondurans.

Why Cubans flee

The Cubans at America’s doorstep are mostly economic refugees. But since Cubans no longer have preferential status over other immigrants – as they did until former President Barack Obama stopped automatically admitting Cubans who made it to the U.S. – claiming asylum is now virtually their only hope of winning entry. G

Cubans who can afford it fly to South America or hire smugglers to take them to Mexico in “fast boats” before trekking north to the U.S. border. Those who can’t afford to pay smugglers try to cross the Florida Straits on rafts or small boats called “balsas” – a dangerous 90-mile ocean passage.

So far this year, the U.S. Coast Guard has picked up 180 Cuban “balseros” at sea trying to reach the U.S. The number is modest – but it’s already more than three times the Coast Guard rescues of Cubans made last year. Cubans intercepted at sea are returned to Cuba under the terms of a 1995 migration agreement.

The current uptick recalls the gradual increase in rafters rescued at sea in the spring of 1994, numbers that rose exponentially that summer, culminating in the “balsero” migration crisis.

Triggered by the collapse of the Soviet Union – communist Cuba’s main international partner at the time – the 1994 exodus saw 35,000 Cubans arrive in the U.S. in two months.

It was the United States’ third Cuban migration crisis. In 1965, some 5,000 Cubans embarked from the port of Camarioca in small boats, landing in south Florida. In 1980, the Mariel boat crisis brought 125,000 Cuban migrants to the U.S. in the so-called “freedom flotilla.”

These migration waves came when the Cuban economy was in crisis and standards of living were falling. All three occurred when Cubans had few avenues for legal migration. With legal routes foreclosed, pressure to leave built over time as the economy deteriorated, finally exploding in a mass exodus of desperate people.

After studying U.S.-Cuban relations for four decades, I believe the conditions that led to these migration crises are building once again.

Economy in free fall

Hit by the dual shocks of renewed U.S. economic sanctions during the Trump administration and the COVID-19 pandemic, the Cuban economy shrank 11% in 2020.

Former President Donald Trump cut off two major sources of Cuba’s foreign exchange revenue: people-to-people educational travel from the U.S., worth roughly US$500 million annually, according to my analysis of data from the Cuban National Office of Statistics, and $3.5 billion annually in cash remittances.

The pandemic hammered Cuba’s tourist industry, which suffered a 75% decline – a loss of roughly $2.5 billion.

These external shocks hit an economy already weakened by the decline in cheap oil from crisis-stricken Venezuela due to falling production there, forcing Cuba to spend more of its scarce foreign exchange currency on fuel. Since Cuba imports most of its food, the island nation has experienced a food crisis.

The result is the worst economic downturn since the 1990s.

Pent-up Cuban demand to emigrate

The 1994 Cuban migration crisis ended when former President Bill Clinton signed an accord with Cuba providing for safe and legal migration. The U.S. committed to providing at least 20,000 immigrant visas to Cubans annually to avoid future crises by creating a release valve.

President Trump replaced President Obama’s policy of normalizing U.S.-Cuban relations with one of “maximum pressure” aimed at collapsing the Cuban regime.

He downsized the U.S. embassy in Havana in 2017, allegedly in response to injuries to U.S. personnel serving there. And he suspended the Cuban Family Reunification Parole Program, which provided upwards of 20,000 immigrant visas annually to Cubans with close relatives in the U.S.

These measures drastically reduced the number of immigrant visas given, closing the safety valve Clinton negotiated in 1994. In 2020, just over 3,000 Cubans immigrants were admitted to the U.S.

Today, some 100,000 Cubans who have applied for the reunification program are still waiting in limbo for the program to resume.

A policy problem

The migration crisis brewing in Cuba has been largely overlooked while the Biden administration focuses on managing the rush of Central American asylum-seekers and caring for unaccompanied minors at the U.S.-Mexico border.

White House Press Secretary Jen Psaki recently said that Cuba policy is currently under review, but that it’s “not a top priority.”

U.S. officials could head off the migration crisis brewing in Cuba by making the changes to U.S.-Cuba relations Biden promised during his 2020 presidential campaign.

Restaffing the U.S. embassy in Havana would make it possible to resume compliance with Clinton’s 1994 migration agreement to grant at least 20,000 immigrant visas annually. That would give Cubans a safe and legal way to come to the U.S. and discourage them from risking their lives on the open seas or with human traffickers.

Lifting Trump’s economic sanctions would curtail the need to emigrate by reducing Cuba’s economic hardship, in part by enabling Cuban Americans to send money directly to their families there.

And reversing Trump’s restrictions on travel to the island would help revitalize the private Cuban restaurants and bed and breakfasts that rely on U.S. visitors.

All these measures would put money directly into the hands of the Cuban people, giving them hope for a better future in Cuba.

Balseros arranging Departure, Playas e Este, 1994
Playas del Este, 1994. Did this one make it?
Launching the balsa (rAFT)
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Nuevo Libro: 90 MILLAS. RELACIONES ECONÓMICAS CUBA-ESTADOS UNIDOS, 1898-2020

Editores: Azcona Pastor, José Manuel, y Santamaría García, Antonio.

Ficha técnica

Nº de páginas:                       471

Editorial:                               S.L. – DYKINSON

ISBN:                                     9788413772882

Año de edición:                     2021

Plaza de edición:                   ESPAÑA

Fecha de lanzamiento:         05/03/2021

COMPRAR LIBRO: 90 MILLAS

RESUMEN DEL LIBRO

Las relaciones entre Cuba y Estados Unidos han estado determinadas por el embargo a la isla que el gobierno de Washington estableció tras el triunfo de la revolución en 1959. Esa política no ha cambiado, aunque ha sufrido endurecimientos y también flexibilizaciones. Al llegar Barack Obama a la Casa Blanca inició una fase de normalización, coincidiendo con el avance de las reformas aperturistas en la Gran Antilla, iniciadas en la década de 1990, pero hasta hace poco discontinuas. Sin embargo, para ello empleó los recursos de relajación de las medidas que ofrecen las propias leyes del embargo. Es decir, sin modificarlo, lo que ha permitido a su sucesor, Donald Trump, restablecerlas en su versión más dura. Este libro estudia el problema de los vínculos entre los dos países desde comienzos del siglo XX desde la perspectiva de lo económico, que fue razón esencial de los mismos, y muestra cómo la falta de un sentido de estado y de conformidad con la influencia tuvo en la constitución de otro –Estados Unidos ocupó Cuba entre 1898 y 1902, tras su guerra de independencia– implicó dejarlas al juego de intereses particulares que rige el funcionamiento del sistema político norteamericano y que tal defecto los ha dotado de un asimetría que ha prevalecido a los cambios de coyuntura y circunstancias desde entonces, al triunfo de la revolución, al fin de la Guerra Fría.

INDICE GENERAL

Capítulo I. 90 millas. Relaciones económicas Cuba-Estados Unidos en perspectiva histórica. Antonio Santamaría García; José Manuel Azcona Pastor

Capítulo II. Avance y retroceso de los capitales norteamericanos en la industria cubana del azúcar, 1890-1959. Alejandro García Álvarez

Capítulo III. Proteccionismo y restricción de la oferta: los orígenes de los controles de producción de azúcar en Cuba y la relación comercial con Estados Unidos, 1921-193. Alan D. Dye

Capítulo IV. Ajustes al modelo de dominación: la política de Estados Unidos hacia Cuba tras la revolución de 1933. Oscar Zanetti Lecuona

Capítulo V. “Cuba sería un cementerio de deudores”. El problema de la moratoria en la década de 1930. Julio César Guanche

Capítulo VI. El nacionalismo moderado cubano, 1920-1960. Políticas económicas y relaciones con Estados Unidos. Jorge I. Domínguez

Capítulo VII. Relaciones comerciales azucareras Cuba-Estados Unidos, 1902-1960. Jorge Pérez-López

Capítulo VIII. Las relaciones Cuba-Estados Unidos desde la revolución hasta el periodo especial.Victor Bulmer-Thomas

Capítulo IX. Failed on all counts. El embargo de Estados Unidos a Cuba. Andrew Zimbalist

Capítulo X. La ventana de oportunidad que se abrió y se cerró: historia de la normalización de relaciones Estados Unidos-Cuba. Carmelo Mesa-Lago

Capítulo XI. El bloqueo económico en el contexto de las agresiones de Estados Unidos contra Cuba. Historia no contada y evolución reciente.José Luis Rodríguez

Capítulo XIII. Cuba-Estados Unidos: la gestión de las empresas cubanas. Ileana Díaz Fernández

Capítulo XIV. Viajes, remesas y trabajo por cuenta propia. Relaciones económicas entre los cubanos emigrados y su país de origen.Jorge Duany

Capítulo XV. El papel de los visitantes de Estados Unidos en la economía cubana. Historia y realidad. Omar Everleny Pérez Villanueva; José Luis Perelló Cabrera

COMPRAR LIBRO: 90 MILLAS

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THE 2020 FIU CUBA POLL: BEHIND THE PARTISAN NOISE, A MAJORITY OF CUBAN-AMERICANS SUPPORT ENGAGEMENT POLICY.

Read the full 2020 FIU CUBA POLL report here.

The results of the 2020 FIU Cuba Poll suggest the link between political party and Cuba policy preferences among Cuban-Americans is not as clearly defined as it used to be. Put another way, although a majority of Cuban-Americans respond postively to Trump’s anti-socialist rhetoric, most still support engagement policies that help the Cuban people.

To illustrate, when asked to rate Trump’s performance in a host of national issues ranging from his handling of immigration and healthcare to Covid-19 response, responses split along partisan lines, with roughly two-thirds consistently in favor of the Republican president. This was also true when respondents were asked to rate Trump’s handling of “Cuba policy” (66% in favor). But when respondents were asked about support for individual components of Cuba policy without mentioning Trump, political parties or “the embargo,” the partisan lines disappeared and previous trend lines in favor of engagement resurfaced, with U.S.-born Cuban-Americans and recent arrivals leading the way:

  • 56% support diplomatic relations between the U.S. and Cuba.
  • 57% support the temporary suspension of trade sanctions on Cuba during Covid-19.
  • 69% support the food sales to Cuba by U.S. companies.
  • 71% support the sale of medicine to Cuba by U.S. companies.
  • 58% oppose the suspension of visas services at the U.S. Embassy in Havana.
  • 58% support the resumption of the Cuban Family Reunification Program (suspended in 2019).

Support for unrestricted travel to Cuba—for Americans and Cuban-Americans alike—did drop below 50% for the first time since the Bush-era, with cruise ship being the least popular (40%). Yet, 62% favor allowing U.S. commercial airlines to re-establish routes throughout the island, not just to Havana. This suggests that while a majority of Cuban-Americans may now favor some restrictions on U.S.-Cuba travel, they remain lenient on what those may be.
Notably, on questions that define U.S.-Cuba policy in terms of “carrots” and “sticks”, strong majorities supported a combined approach: 68% favor policies “designed to put maximum pressure on the Cuban government” while 66% support policies directed at “improving the economic well-being of the Cuban people.” In other words, the Obama-era view that “U.S. policy should be tough on the government but soft on the people” continues to hold firm. So has the shrinking salience of U.S.-Cuba policy among key election-year issues for Cuban-American voters, ranking below the economy, healthcare, race, immigration and even China policy across party affiliation.
Perhaps the most significant number in the poll is the percentage of newer émigrés who identify as Republican: a whopping 76% of those who migrated to the United States between 2010 and 2015. Paradoxically, these are also the Cubans-Americans who most frequently travel to Cuba, maintain relations on the island and favor most of the same engagement policies that their Republican representatives so ardently strive to dismantle. This contradiction is shaped by too many factors to explore here. The appeal of Trump’s strongman/ business mogul persona and anti-socialist bombast is certainly one of them. Yet it is also true that these migrants harbor deep antipathies toward a Cuban government that did precious little to seize the opportunity for reform presented by President Obama’s diplomatic opening. Their party affiliation likely represents a rebuke of the system they left behind more than a defined ideological orientation. Nonetheless, this should serve as a wakeup call for Cuban officials. Those who arrived between 2010 to 2015 aren’t batistianos. They are a direct product of the Revolution. By continuing to resist meaningful reforms, the Cuban government runs the risk of forging a new generation of aggrieved exiles supportive of U.S. presidents who take a hardline approach against Cuba.

Finally, there are important lessons here for whoever wins the White House come November. Should it be Joe Biden, reversing Trump’s most hurtful measures toward Cuba in his first 100 days will be popular among Cuban-Americans. These include the re-establishment of island-wide commercial and charter travel, lifting remittance limits, re-opening consular services and fully staffing the U.S. Embassy in Havana. For Trump, the FIU poll suggests that Cuba sanctions have a political ceiling, which his policies reached long ago. In a second term, Trump could ease harmful restrictions on travel, remittances, and some trade in pursuit of a “better deal” without losing support.

“The poll estimates about 52.6% of Cuban Americans in Florida are registered Republicans compared to 25.8% who are registered Democrats and 21.5% who are registered independent.” (NBC Miami, October 2, 2020)

Read the full 2020 FIU CUBA POLL report here.

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FORO CUBANO: INDICADORES

COMPLETE DOCUMENT: Foro Cubano – Indicadores

Coordinador:  Pavel Vidal Alejandro

 

Foro Cubano – Indicadores

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CUBA WANTS MORE BABIES, SO IT’S GIVING PARENTAL LEAVE TO GRANDPARENTS, TOO

By Nick Miroff February 10, Washington Post
Original Article: Grandparents and Fertility Rates!

MEXICO CITY — Cuba is giving parental leave to the grandparents of newborns, the country’s latest attempt to reverse its sagging birthrate and defuse a demographic time bomb.

The island already has one of the most generous parental leave policies in the Americas, allowing mothers and fathers to take more than a year off from work at partial pay. The new decree extends those benefits to maternal and paternal grandparents.

But so far, such attempts haven’t brought any sort of Cuban baby boom.  The island of 11 million has one of the lowest fertility rates in the Western Hemisphere, with 1.7 births per woman. There are several factors that explain this figure, but they mostly come down to a combination of effective socialist medical care and a dysfunctional state-run economy.

Cuba’s health-care system makes contraceptives widely available, and abortions are available on demand. At the same time, Cuban women are a growing portion of the country’s professional workforce, and many choose to delay motherhood until their late 30s, often because they don’t have the financial means to care for children.

It’s hardly the only demographic problem Cuba faces: Some  60,000 to 80,000 Cubans emigrate each year, many of them young people looking for better opportunities in the United States, Europe and Latin America.

The Cubans who stay behind are going gray. Nearly one-fifth of the island’s population is 60 or older, and they depend on a shrinking pool of Cuban workers to keep the state-run economy afloat. Cuba’s life expectancy is 78, on par with the United States, so there’s a larger and larger pool of dependents.

According to the Communist Party newspaper Granma, the decision to extend parental leave to grandparents was necessary “to deal with the high degree of aging among the population, and to encourage fertility in the short term.”  “The challenge of raising the birthrate in Cuba is a challenge that cannot be put off,” Granma said.

The decrees also reduce day-care costs for Cuban parents with multiple children, and provide tax breaks for women who work in the country’s small but growing private sector.

Offering partial salary to Cuban parents on leave is not the kind of burden for the government — which employs about 70 percent of the workforce — that it would be in more prosperous nations.

The average official state salary hovers around $20 a month. Paying parents and grandparents a fraction of that to care for children is costly in a country where economic growth is stagnant, but nothing like the expenditure it would be elsewhere.

The United Kingdom has adopted a leave policy for grandparents who still work, and while a similar law has been proposed in Argentina, Cuba appears to be the first Latin American country to offer the benefits to grandparents.

 

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DEBATING U.S.-CUBAN RELATIONS: HOW SHOULD WE NOW PLAY BALL? 2nd Edition

Edited by Jorge I. DomínguezRafael M. HernándezLorena G. Barberia

© 2017 – Routledge

To Order: Routledge

ABOUT THE BOOK

The boundary between Cuba and the United States has become more and more porous, as have those with Latin America and the Caribbean. Never in the past half-century has Cuba’s leadership or its social and political fabric been so exposed to the influence of the outside world. In this book, an all-star cast of experts critically address the recent past and present in U.S.-Cuban relations in their full complexity and subtlety to develop a perspective on the evolution of the conflict and an inventory of forms of cooperation. This much needed approach provides a way to answer the questions “what has been . . .?” and “what is . . .?” while also thinking seriously about “what if . . .?”

To illustrate the most significant areas of U.S.-Cuban relations in the contemporary era, this newly updated edition of Debating U.S.-Cuban Relations adds six more themes to the study of this complex relation: political, security, economic, and cultural/academic issues; the triangular relations of the United States, Cuba, and Europe; and the politics of Cuban migration/emigration. Each topic is represented by perspectives from both Cuban and non-Cuban scholars, leading to a resource rich in insight and a model of transnational dialogue.

The future course of U.S.-Cuban relations will likely be more complex than in the past, not only because of the matrix of factors involved but also because of the number of actors. Such a multiplicity of domestic, regional, and global factors is unique; it includes the rise to power of new administrations in both countries since 2008. Raúl Castro became president of Cuba in February 2008 and Barack Obama was inaugurated president of the United States in January 2009. And it will feature the inauguration of a new president of the United States in January 2017 and a new president of Cuba, likely in February 2018.

 

TABLE OF CONTENTS

Chapter 1: Introduction: A Baseball Game. Jorge I. Domínguez and Rafael M. Hernández

Chapter 2: Intimate Enemies: Paradoxes in the Conflict between the United States and

Cuba. Rafael M. Hernández

Chapter 3: Reshaping the Relations between the United States and Cuba. Jorge I. Domínguez

Chapter 4: Cuba’s National Security vis-à-vis the United States: Conflict or Cooperation? Carlos Alzugaray Treto

Chapter 5: Cuban-United States Cooperation in the Defence and Security Fields: Where Are We? Where Might We Be Able to Go? Hal Klepak

Chapter 6: Terrorism and the Anti-Hijacking Accord in Cuba’s Relations with the United States. Peter Kornbluh

Chapter 7: The European Union and U.S.-Cuban Relations. Eduardo Perera Gómez

Chapter 8: European Union Policy in the Cuba-U.S.-Spain Triangle. Susanne Gratius

Chapter 9: U.S.-Cuba Relations: The Potential Economic Implications of Normalization. Archibald R. M. Ritter

Chapter 10: United States-Cuba Economic Relations: The Pending Normalization. Jorge Mario Sánchez Egozcue

Chapter 11: Cuba, Its Immigration and U.S.-Cuba Relations. Lorena G. Barberia

Chapter 12: U.S.-Cuba: Emigration and Bilateral Relations. Antonio Aja Díaz

Chapter 13: The Subject(s) of Academic and Cultural Exchange: Paradigms, Powers, and Possibilities. Sheryl Lutjens

Chapter 14: Academic Diplomacy: Cultural Exchange between Cuba and the United States. Milagros Martínez Reinosa

 

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CANADA-CUBA ECONOMIC RELATIONS: AN UPDATE

By Arch Ritter                                                                                                  October 5, 2016

 Canada and Cuba have maintained a normal and mutually beneficial economic relationship from Colonial times to 2016.  With the beginning of Cuba’s “Special Period” in 1990 and its modest moves towards a mixed market economy in the 1990s, Canadian participants were optimistic about future economic relations.  In the 2000’s, this was replaced by some skepticism, but with the reforms of 2010-2012 and the beginning of the normalization of US Cuba relations, optimism has returned. This article provides an update on Cuban-Canadian economic relations, including trade, foreign investment, development assistance and migration and some speculation concerning the future of the relationship.

Canada-Cuba Trade Relations

Since the start of Cuba’s revolution, normal trade relations between Canada and Cuba have been maintained. However, trade has waxed and waned over the years as can be seen in Chart 1. The chief feature of the trade relationship in the 1980s was the large volume of Canadian exports which were mainly wheat. Trade expanded steadily in the 1990s with the ending of the special trade relationship with the Soviet Union, as Cuba’s economy began to recover and as it began to diversify its export markets and sources of imports.

q1After 2001, Cuba’s exports to Canada expanded and began to exceed Canada’s exports to Cuba due to high nickel volumes and prices. Canadian exports to Cuba have more or less stagnated since 2001 while other countries have increased their market shares.  By 2015, Canada was the fourth ranking exporter to Cuba following Venezuela, China, and Spain (Table 1.) In contrast, Canada was the second largest export market for Cuba after Venezuela in 2015, accounting for 11% of Cuba’s exports.

r1

Cuba’s exports to Canada have consisted almost totally of nickel concentrates, with cigars, rum, seafood and copper scrap (presumably a quirk in 2015) as very small foreign exchange earners (Table 2.).

By 2015, Canada’s exports to Cuba were reasonably diversified (Table 2.) Its agricultural exports remained significant, though overwhelmed by US agricultural exports. Minerals (sulfur for Cuba’s nickel industry, potash for fertilizer), metals (copper products for Cuba’s electrical system mainly) and machinery of various types have all been significant in the 2010s.

r2 Tourism

Cuba’s best and most faithful friend is the brutal Canadian Winter, which has driven millions of Canadians to warmer Caribbean climes during the December to April period. Canada has been the largest single national source of tourists consistently from 1990 to 2015 and accounted for almost 40% of all tourist arrivals in 2015.  But when US tourism opens up completely, there will likely be a deluge of US winter-escape tourism as well as curiosity tourism, convention tourism, medical tourism, March-break tourism and retirement relocation. The result will likely be that prices rise, and Canadian winter time tourism may well be squeezed out of Cuba into lower cost destinations.

q2Canadian Enterprises in Cuban Joint Ventures

In 1991, Cuba opened itself to foreign investment in joint venture arrangements with state firms. By the end of 1999, there were 72 joint ventures or “economic association” agreements between Canadian firms and Cuban state enterprises but few seem to have ever come to life.

Sherritt International has been by far the most successful Canadian-Cuban joint venture.  Its formula for success is one that cannot likely be replicated by any other enterprise.  In effect, it exchanged 50% of its ownership in the nickel refinery in Alberta Canada for 50% ownership of the Moa mine and concentrator in Cuba and shared in the ownership of the marketing enterprise.  This made Cuba a significant foreign investor in Canada!  The Sherritt experience was explored in the previous issue of this publication.

A number of mineral exploration companies established joint ventures in Cuba by 1994 in association with Geominera S.A. It was thought that Cuba was an ideal location for mineral exploration because much of the country had been covered by aero-magnetic and geological surveys in the Soviet era.  Among the enterprises involved in exploration projects in joint ventures with Geominera were Holmer Gold Mines, Joutel Resources, CaribGold Resources, Northern Orion, and MacDonald Mines. Unfortunately, the exploration undertaken from 1992 to 2007 yielded disappointing results and none of the exploration projects led to producing mines. This suggests that either the quality and/or magnitude of the deposits are lower than in other regions of the world. Alternatively, perhaps the investment conditions, the policy environment and/or the political risk situation were worse than elsewhere. It would be surprising if there were another mineral exploration rush in the medium term future, unless mineral prices were to rise to very high levels.

Canadian enterprises in real estate development have also had difficult experiences in Cuba. One project announced in October 1998 by an association between Cuba’s luxury hotel chain, Gran Caribe and Cuban Canadian Resorts International proposed U.S. $250 million set of four condominiums with hotel and resort facilities. It would have opened up an important new type of tourism for Cuba.  However, in May 2000, the Ministry of Foreign Investment and Cooperation announced a prohibition of foreign ownership of condominium units killing this and other such projects for the time being.

Another project was that of Leisure Canada for the construction of some 11 hotels and two golf courses, a marina. (Leisure Canada Incorporated, 2000). This project fizzled out. In 2011 Leisure Canada, having changed its name to 360 VOX Corporation, was bought out by Dundee Corporation in May 2014.  Any mention of this project has disappeared.

One successful venture was the construction of five airports in Cuba, including Varadero and Havana International Airports by Intelcan Technosystems of Ottawa. The CDN$ 52 million investment in the Havana Airport, was financed in part by Canada’s Export Development Corporation (33%) and 15% from Intelcan. Since 2000, the ultimate payment has come from international passengers who pay U.S. $25.00 (CUC 25.00) as an airport tax on departure.

Unfortunately brilliant successes for Canadian-Cuban joint ventures seem to be few and far between.  Indeed, a number of executives of Canadian trading enterprises and joint ventures, Cy Tokmakjian and Sarkis Yacoubian, were jailed and tried on corruption charges –a cooling factor in the foreign investment process. The moral of the story is that establishing a joint venture in Cuba can work, but it must be done with patience, intelligence, and scrupulous awareness of Cuban regulations and processes and with clear benefits for the Cuban partner enterprise and the Cuban people.

Canadian Development Assistance

The Canadian International Development Agency (CIDA) has provided some interesting development assistance to Cuba since 1994. A major proportion of this has been “economic” in character, aimed at the “modernization of the state.”  Some has been used to support the initiation of projects by Canadian enterprises with Cuban counterparts or to promote Canadian exports. Some of the economic programs were micro-enterprise tax administration, economic management, support for technical training and computer acquisition at the Central Bank, a program to help strengthen administration and professional economics at the Ministry of Economics and Planning and training/certification programs for tradesmen in some basic industrial areas. Various types of commodity assistance were provided as well. Much of the assistance provided by NGOs was aimed at community level activities.  A small amount of assistance was directed towards human rights and governance initiatives including a “Human Rights Fund Pilot Project” and “Dialogue Fund” with multiple Canadian and Cuban partners.

r3Canada’s active development assistance projects in Cuba as of mid-2016 are listed in Table 3. The annual expenditures of these multi-year projects for 2014-2015 was $CDN 2.42 million, a very

 International Migration

 An interesting dimension of Canadian-Cuban relations is migration. As indicated in Chart 3, Cuban migration to Canada has risen from levels in the hundreds in the 1980s to around 1,400 in 2014-2015. However, an unknown number of the Cuban immigrants to Canada move on to the United States, especially Florida, reflecting the attraction of the large Cuban-American population there and the weather.

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Detailed sociological information on Cuban migrants is not available. However, my impressions are that, generally speaking, they are relatively well-educated, industrious, self-activating and entrepreneurial. They also seem to be relatively young, for the most part, many having recently finished their education and just starting out on their careers. Many Cuban immigrants seem to have done reasonably well and have found work in their professional areas, something that is not easy in a new society, culture and language.  This migration represents a “brain drain” or a loss of human capital for Cuba and a corresponding gain for Canada.

 Prospective Canadian-Cuban Economic Relations

The future economic relationship between Canada and Cuba will be shaped mainly by three factors: the strength and durability of Cuba’s economic recovery; the nature of Cuba’s economic policies affecting trade, and foreign investment; and the character and timing of complete normalization of relations with the United States.

A sustained recovery of the Cuban economy would promote a deepened and broadened economic relationship with Canada. A growing Cuban economy would permit increases in imports from all trading partners, including Canada.  At the same time, economic recovery in Cuba also requires expansion of its exports of goods and services.

Is an enduring recuperation of the Cuban economy probable in the next decade or so? First, the driving force for the Cuban economy, namely export earnings, at this time depends mainly on tourism, medical services and nickel exports.  Nickel and tourism should continue to be strong, but the obscured subsidization from Venezuela is over. Cuba’s medical service exports will likely be transitory as other countries develop their own medical systems and increase medical personnel.  Pharmaceutical exports may hold promise in the longer term but have been somewhat disappointing relative to the high hopes once placed in their prospects. Little progress appears imminent regarding the expansion of other merchandise exports. New exports of manufactured products have not appeared on the scene in a significant way and are obstructed by some public policies.

Some continuing problems may prompt skepticism regarding Cuba’s economic prospects in the near future. Among the difficulties often cited are: a dual exchange rate system with negative consequences for export diversification and expansion; a blockage of people’s initiatives, energies and entrepreneurship due to the unwillingness to extend further the reform process especially for medium scale enterprise; and the deterioration of parts of the infrastructure, most notably housing.

The second set of factors that will shape Canada’s future economic relations with Cuba in is Cuba’s policies relating to trade, foreign investment and tourism. These policies are unlikely to undergo dramatic change under Raul Castro’s leadership. This implies that the basic Canadian-Cuban economic relationship should not be affected seriously by changed Cuban policies in the next few years. The state-trading that in part characterizes these relationships is not intrinsically beneficial for Canada.

Thirdly, the complete normalization of U.S. – Cuban relations especially regarding trade and US investment in Cuba, will have a major effect on the Canada-Cuba economic relationship. Complete normalization will permit expansion of Cuban exports, US foreign investment in Cuba, US tourism in Cuba, financial flows and the possibility of open and vigorous collaboration of Cuban-America and Cuban citizens in business activities.  Greater prosperity will be the result.

Normalization with the United States will lead to expanded exports of goods and services to Cuba from the U.S. and vice versa.  This is due to geographic and transport factors.  More frequent freighter connections, high speed hydrofoil passenger boat connections, a re-connection of U.S. and Cuban railway systems and a proliferation of airline connections will lead to a reintegration of the two economies. The diversified U.S. economy can provide a broad range of consumer and capital goods and services competitively with other countries and with low transport costs and quick delivery times.

Canadian exporters to Cuba therefore will face a challenge after US – Cuban normalization. The location and logistical advantages of U.S. exporters, plus the interest, activism and advantages of the Cuban-American business community will outweigh any lingering “goodwill effect” with Canada. Overnight or next-day delivery of products ordered from the U.S. makes continuation of some types of exports from Canada difficult, as delivery from Canada currently may take up to two weeks or more on ships leaving Canada every week or ten days on average.

On the other hand, some of Canada’s current exports to Cuba are competitive with U.S. products and should increase in a post-embargo Cuban economic recovery. This might include fertilizers (potash), cereals, animal feed stocks, lumber, wood and paper products and fabricated non-ferrous metals products. Canada also is competitive in certain types of capital equipment such as minerals machinery and equipment, some paper making equipment, Bombardier aircraft, railway rolling stock and equipment, urban transit vehicles, communications equipment, electrical generation and distribution equipment, and some specialized vehicles. However, some Canadian exports may be threatened by U.S. competition.

In summary, the recovery of the Cuban economy and the increase in foreign exchange receipts that U.S.-Cuban normalization in time should bring about will be of benefit for some Canadian exporters while others may be replaced by U.S. suppliers.  Will the “expansionary effect” outweigh the costs of the “displacement effect” for Canadian exporters?  Perhaps, but this is not assured.

Normalization will also induce U.S. enterprises to invest in Cuba. With no further changes to the foreign investment law and within the current policy environment, one can imagine some but not many U.S. firms entering joint ventures.  But with policy liberalization in a post-Raul Castro situation, one can imagine large numbers of U.S. enterprises investing in Cuba. Cuban-Americans would also enter Cuba to set up small businesses or to finance business ventures with their Cuban relatives or counterparts.  The “geo-economic” gravitational pull of the U.S. will be strong. After U.S.-Cuba rapprochement Canadian trade and investment as a proportion of total trade and investment will likely diminish even though both might increase in absolute terms.

To conclude, there are future uncertainties and challenges regarding the Canadian-Cuban economic relationship.  The character and intensity of future economic performance in Cuba, Cuba’s policy environment and the timing of the complete normalization of relations with the United States are still ambiguous and uncertain. These factors will have mixed effects, but effects that on balance should be positive for Canada and Cuba.

Bibliography

Citizenship and Immigration Canada.  http://www.cic.gc.ca/english/resources/statistics/facts2014/permanent/10.aspAccessed October 23, 2016

Cuban Club Resorts. 2000. Web site: www.cubanclubresorts.com

Global Affairs Canada, Cuba – International Development Projects, http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/fWebCSAZEn?ReadForm&idx=00&CC=CU.  Accessed 3 October 2016

Industry Canada, Trade Data Online (TDO), Trade by Product (HS Codes) http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home

Leisure Canada Incorporated. (2000, August, 17). Press Release. Reproduced in   www.cubanet.org

Nolen, Stephanie. 2015. In tourist-deluged Cuba, Canadian firms are noticeably absent. The Globe and Mail December 13.

Oficina Nacional de Estadisticas, Cuba.  Anuario Estadistico de Cuba. (Various issues) http://www.one.cu/ . Accessed various times and October 4 2016.

Sequin Rob. 2013. Leisure Canada now a defunct Cuba real estate development brand.  Havana Journal September 25,

 

 

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CRISIS IN VENEZUELA MAKES LIFE HELL FOR CUBAN MEDICAL PROFESSIONALS

A growing number of Cuban health professionals working in Venezuela are fleeing or seeking second jobs as a result of the economic and political crisis in the South American country.

By MARIO J. PENTÓN

In Cuba Today, June 22, 2016

Original Article: Cuban Doctors in Venezuela

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Cuban Doctors in Venezuela in More Promising Times

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Tania Tamara Rodríguez never thought she would escape from the Cuban medical teams in Venezuela and become a “deserter,” now blocked by her government from returning to her country for eight years.

But the many difficulties that Cuban health professionals face in Venezuela as a result of the economic and political crisis in the South American country are leading a growing number to seek refuge in neighboring countries or obtain other jobs to make ends meet.

“Conditions for the doctors and other health professionals are horrible. You live all the time under the threat of being returned to Cuba, losing the job. You’re afraid they will take all the money – which is in Cuban government accounts – and revoke your assignment (to Venezuela) if they want to discipline you,” said Rodríguez, who now lives in Tampa.

While she worked in a medical laboratory in Venezuela as part of Cuba’s “Mission to the Neighborhood” medical aid program, the government deposited Rodríguez’s salary of 700 pesos per month (about $29) to an account in Cuba and gave her access to $280 dollars (U.S.) per month and a card for 25 percent off at the TRD shops in Cuba, which offer hard-to-find imported goods at dollar prices.

In 2014, after acknowledging that its “export of health services” was earning the island more than $8.2 billion a year, the Cuban government increased salaries in the domestic health sector. Even with the increases, which took effect after the public health sector had dismissed 109,000 employees, Cuban doctors are still not earning even close to the international median.

Rodríguez went to Venezuela in early 2015 from the eastern city of Holguín where she worked in the laboratory of the Máximo Gómez Báez. She agreed to join one of Cuba’s many medical teams in foreign countries in hopes of providing better opportunities for her 13-year-old daughter.

Cuba currently has about 28,810 medical personnel in Venezuela working in public health programs that, according to President Nicolás Maduro, represent a priority sector for his government and has cost Venezuela more than $250 billion since 1999.

The payment arrangement, essentially trading Venezuelan oil for Cuban medical personnel, has been repeatedly denounced by critics as a way for the Venezuelan government to cover up its subsidies to Cuba. Cuba then resells part of the refined oil products on the international market.

Rodríguez, who arrived in the United States after a few months in Venezuela under the U.S. government’s special parole program for Cuban medical personnel who defect, saved the money needed to buy her daughter a plane ticket to the United States from Cuba. But when her family took the girl to an Interior Ministry office to apply for a passport, she was denied because the mother was still listed as working in Venezuela.

“I don’t understand how I can be listed as working when I have been in the United States for more than a year. Someone must be pocketing the money the Venezuelan government is paying for me,” Rodríguez said.

According to the U.S. Citizenship and Immigration Service (USCIS) agency, 2,335 petitions were received in Fiscal Year 2015 under the Cuban Medical Professional Parole (CMPP) program, an initiative by the George W. Bush administration that offers visas to Cuban medical personnel “recruited by the (Cuban) government to study or work in a third country. Since its start in 2006, more than 8,000 medical professionals have been admitted under the program.  Solidarity Without Borders, a Hialeah non-profit that helps the arriving Cuban medical professionals, told el Nuevo Herald that the number of Cubans applying for the CMPP has risen in recent years. Not everyone is accepted, and 367 were rejected in fiscal year 2015, according to official data.

Rodríguez said that when she arrived in Venezuela in 2015, she was assigned to work with other Cuban medical personnel in the north central state of Falcon.

 “Everything in Venezuela is a lie,” she complained. “We were forced to throw away the reactive for CKMB (a type of blood test), a product that is scarce in Cuba. But we had to throw it away so that it would be marked in the books as having been used and Cuba could sell more. The same happened with the alcohol, bandage, medicines …  “Everything was produced in Cuba and paid for by the Venezuelan government,” Rodríguez said. “We faked lists of patients and were forced to live on nothing, while Cuba took all the money.”

During the time she worked in Venezuela, Cuban officials paid each medical professional about 3,000 bolivares (about $3) per month — an amount that has increased substantially recently because of an inflationary crisis and the relentless devaluation of the Venezuelan currency.

“Sometimes I had to do little jobs on the side to make ends meet,” she said. “Thank God that many Venezuelans take pity on the Cubans and help us.”  “Maybe what happened in my case was that when I decided to escape, I went to the municipality and told them everything about the disaster” at her clinic, she said. “And now they want to take revenge because I denounced them.”

Another Cuban doctor who works in the northeastern state of Anzoategui spoke on the condition of not being identified because of fear of being punished for speaking with a journalist.

“We started earning 3,000 bolivares and we’re now up to 15,000,” he said, or about $15 on the black market. “What’s interesting is that it makes no difference if they give us more bolivares because they are worthless in real life.”   “Our working conditions are horrible. We are salaried slaves of Cuba,” the doctor said. “They keep us in groups. Since I arrived, I live with three doctors from other parts of the island, so I have to share my room with someone I don’t know, and every day at 6 p.m. I have to ‘report’ that I am home.”

Officials of the Cuban medical teams in Venezuela justify the daily check-ins as a security measure due to the high levels of violence in the neighborhoods where they work. The doctors, however, see it as part of an effort to keep a close watch on them.

“There are many (Cuban) state security agents. Their job is to keep us from escaping,” said the doctor working in Anzoategui. “When you arrive in Venezuela, they ask you if you have relatives abroad, especially in the United States. We all say no, even if we do, because the surveillance is even worse then.”

The economy in Venezuela is so poor, he added, that returning from his last vacation in Cuba he had to carry back laundry and bathroom soap and toothpaste.

“When we first got here, this was paradise. They had everything we did not have in Cuba. Today it’s exactly the opposite,” he said. “We came thinking we would help our families, and it turns out they are the ones helping us. If it were not for the money that my brother in Miami sends me, I don’t know what I would do.”

Several other medical professionals in Venezuela also said that authorities try to hide cases when the Cubans become the victims of crimes, even when they are killed.

“You can’t avoid being robbed, because everyone gets robbed here. A stray bullet, a thug who doesn’t like you, we run all those risks,” said another Cuban doctor who also asked for anonymity. “One day I was mugged by two children, no more than 12 years old. I had to give them all my money because the pistols they were playing with were real.”

The personal relations of the Cuban medical personnel are also watched.

“They warn you that it can go badly for you if you have relations with Venezuelan government critics,” the female doctor said. And although intimate relations with Venezuelans are formally forbidden, “people find a way.”

During the 13 years that Cuba has been sending medical personnel to Venezuela, more than 124,000 have served in the South American country. Thousands have escaped to the United States and other countries, searching for better lives.

For many years, like Rodríguez, the medical defectors were banned from returning to Cuba for eight years. Last year, Cuba announced the defectors could return and would be guaranteed “a job similar to what they had before.”

But there was a catch: Those who returned would need a special permit to travel abroad again.

Venezuela's President Maduro speaks with Cuba's President Castro during their meeting in Havana

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