Tag Archives: US-Cuba Relations

WHITE HOUSE PRESS REPORT ON THE SPECIFIC MEASURES TAKEN BY PRESIDENT OBAMA ON NORMALIZATION WITH CUBA

Original here: SPECIFIC MEASURES; http://www.whitehouse.gov/the-press-office/2014/12/17/fact-sheet-charting-new-course-cuba; 17 December 2014

cuba_page_header_02Obama on the Phone with Raul Castro, December 17, 2014

Key Components of the Updated Policy Approach:

Since taking office in 2009, President Obama has taken steps aimed at supporting the ability of the Cuban people to gain greater control over their own lives and determine their country’s future. Today, the President announced additional measures to end our outdated approach, and to promote more effectively change in Cuba that is consistent with U.S. support for the Cuban people and in line with U.S. national security interests. Major elements of the President’s new approach include:

Establishing diplomatic relations with Cuba-

  • The President has instructed the Secretary of State to immediately initiate discussions with Cuba on the re-establishment of diplomatic relations with Cuba, which were severed in January 1961.
  • In the coming months, we will re-establish an embassy in Havana and carry out high-level exchanges and visits between our two governments as part of the normalization process. As an initial step, the Assistant Secretary of State for Western Hemisphere Affairs will lead the U.S. Delegation to the next round of U.S.-Cuba Migration Talks in January 2015, in Havana.
  • U.S. engagement will be critical when appropriate and will include continued strong support for improved human rights conditions and democratic reforms in Cuba and other measures aimed at fostering improved conditions for the Cuban people.
  • The United States will work with Cuba on matters of mutual concern and that advance U.S. national interests, such as migration, counternarcotics, environmental protection, and trafficking in persons, among other issues.

Adjusting regulations to more effectively empower the Cuban people-

  • The changes announced today will soon be implemented via amendments to regulations of the Departments of the Treasury and Commerce. Our new policy changes will further enhance our goal of empowering the Cuban population.
  • Our travel and remittance policies are helping Cubans by providing alternative sources of information and opportunities for self-employment and private property ownership, and by strengthening independent civil society.
  • These measures will further increase people-to-people contact; further support civil society in Cuba; and further enhance the free flow of information to, from, and among the Cuban people. Persons must comply with all provisions of the revised regulations; violations of the terms and conditions are enforceable under U.S. law.

Facilitating an expansion of travel under general licenses for the 12 existing categories of travel to Cuba authorized by law-

  • General licenses will be made available for all authorized travelers in the following existing categories: (1) family visits; (2) official business of the U.S. government, foreign governments, and certain intergovernmental organizations; (3) journalistic activity; (4) professional research and professional meetings; (5) educational activities; (6) religious activities; (7) public performances, clinics, workshops, athletic and other competitions, and exhibitions; (8) support for the Cuban people; (9) humanitarian projects; (10) activities of private foundations or research or educational institutes; (11) exportation, importation, or transmission of information or information materials; and (12) certain export transactions that may be considered for authorization under existing regulations and guidelines.
  • Travelers in the 12 categories of travel to Cuba authorized by law will be able to make arrangements through any service provider that complies with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) regulations governing travel services to Cuba, and general licenses will authorize provision of such services.
  • The policy changes make it easier for Americans to provide business training for private Cuban businesses and small farmers and provide other support for the growth of Cuba’s nascent private sector. Additional options for promoting the growth of entrepreneurship and the private sector in Cuba will be explored.

Facilitating remittances to Cuba by U.S. persons-

  • Remittance levels will be raised from $500 to $2,000 per quarter for general donative remittances to Cuban nationals (except to certain officials of the government or the Communist party); and donative remittances for humanitarian projects, support for the Cuban people, and support for the development of private businesses in Cuba will no longer require a specific license.
  • Remittance forwarders will no longer require a specific license.

Authorizing expanded commercial sales/exports from the United States of certain goods and services-

  • The expansion will seek to empower the nascent Cuban private sector. Items that will be authorized for export include certain building materials for private residential construction, goods for use by private sector Cuban entrepreneurs, and agricultural equipment for small farmers. This change will make it easier for Cuban citizens to have access to certain lower-priced goods to improve their living standards and gain greater economic independence from the state.

Authorizing American citizens to import additional goods from Cuba-

  • Licensed U.S. travelers to Cuba will be authorized to import $400 worth of goods from Cuba, of which no more than $100 can consist of tobacco products and alcohol combined.

Facilitating authorized transactions between the United States and Cuba-

  • U.S. institutions will be permitted to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions.
  • The regulatory definition of the statutory term “cash in advance” will be revised to specify that it means “cash before transfer of title”; this will provide more efficient financing of authorized trade with Cuba.
  • U.S. credit and debit cards will be permitted for use by travelers to Cuba.
  • These measures will improve the speed, efficiency, and oversight of authorized payments between the United States and Cuba.

Initiating new efforts to increase Cubans’ access to communications and their ability to communicate freely-

  • Cuba has an internet penetration of about five percent—one of the lowest rates in the world. The cost of telecommunications in Cuba is exorbitantly high, while the services offered are extremely limited.
  • The commercial export of certain items that will contribute to the ability of the Cuban people to communicate with people in the United States and the rest of the world will be authorized. This will include the commercial sale of certain consumer communications devices, related software, applications, hardware, and services, and items for the establishment and update of communications-related systems.
  • Telecommunications providers will be allowed to establish the necessary mechanisms, including infrastructure, in Cuba to provide commercial telecommunications and internet services, which will improve telecommunications between the United States and Cuba.

Updating the application of Cuba sanctions in third countries-

  • U.S.-owned or -controlled entities in third countries will be generally licensed to provide services to, and engage in financial transactions with, Cuban individuals in third countries. In addition, general licenses will unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba; permit U.S. persons to participate in third-country professional meetings and conferences related to Cuba; and, allow foreign vessels to enter the United States after engaging in certain humanitarian trade with Cuba, among other measures.

Pursuing discussions with the Cuban and Mexican governments to discuss our unresolved maritime boundary in the Gulf of Mexico-

  • Previous agreements between the United States and Cuba delimit the maritime space between the two countries within 200 nautical miles from shore. The United States, Cuba, and Mexico have extended continental shelf in an area within the Gulf of Mexico where the three countries have not yet delimited any boundaries.
  • The United States is prepared to invite the governments of Cuba and Mexico to discuss shared maritime boundaries in the Gulf of Mexico.

Initiating a review of Cuba’s designation as a State Sponsor of Terrorism-

  • The President has instructed the Secretary of State to immediately launch such a review, and provide a report to the President within six months regarding Cuba’s support for international terrorism. Cuba was placed on the list in 1982.

Addressing Cuba’s participation in the 2015 Summit of the Americas in Panama-

  • President Obama will participate in the Summit of the Americas in Panama. Human rights and democracy will be key Summit themes. Cuban civil society must be allowed to participate along with civil society from other countries participating in the Summit, consistent with the region’s commitments under the Inter-American Democratic Charter. The United States welcomes a constructive dialogue among Summit governments on the Summit’s principles.

Unwavering Commitment to Democracy, Human Rights, and Civil Society

A critical focus of our increased engagement will include continued strong support by the United States for improved human rights conditions and democratic reforms in Cuba. The promotion of democracy supports universal human rights by empowering civil society and a person’s right to speak freely, peacefully assemble, and associate, and by supporting the ability of people to freely determine their future. Our efforts are aimed at promoting the independence of the Cuban people so they do not need to rely on the Cuban state.

The U.S. Congress funds democracy programming in Cuba to provide humanitarian assistance, promote human rights and fundamental freedoms, and support the free flow of information in places where it is restricted and censored. The Administration will continue to implement U.S. programs aimed at promoting positive change in Cuba, and we will encourage reforms in our high level engagement with Cuban officials.

The United States encourages all nations and organizations engaged in diplomatic dialogue with the Cuban government to take every opportunity both publicly and privately to support increased respect for human rights and fundamental freedoms in Cuba.

Ultimately, it will be the Cuban people who drive economic and political reforms. That is why President Obama took steps to increase the flow of resources and information to ordinary Cuban citizens in 2009, 2011, and today. The Cuban people deserve the support of the United States and of an entire region that has committed to promote and defend democracy through the Inter-American Democratic Charter.

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TEXTO COMPLETO DEL DISCURSO DE RAÚL CASTRO SOBRE EL ACERCAMIENTO CON ESTADOS UNIDOS: Alocución del Presidente cubano: Los Cinco ya están en Cuba, 17 diciembre 2014

Granma, 18 diciembre de 2014

Raul-CastroCompatriotas:

Desde mi elección como Presidente de los Consejos de Estado y de Ministros, he reiterado en múltiples ocasiones, nuestra disposición a sostener con el gobierno de los Estados Unidos un diálogo respetuoso, basado en la igualdad soberana, para tratar los más diversos temas de forma recíproca, sin menoscabo a la independencia nacional y la autodeterminación de nuestro pueblo.

Esta es una posición que fue expresada al Gobierno de Estados Unidos, de forma pública y privada, por el compañero Fidel en diferentes momentos de nuestra larga lucha, con el planteamiento de discutir y resolver las diferencias mediante negociaciones, sin renunciar a uno solo de nuestros principios.

El heroico pueblo cubano ha demostrado, frente a grandes peligros, agresiones, adversidades y sacrificios, que es y será fiel a nuestros ideales de independencia y justicia social. Estrechamente unidos en estos 56 años de Revolución, hemos guardado profunda lealtad a los que cayeron defendiendo esos principios desde el inicio de nuestras guerras de independencia en 1868.

Ahora, llevamos adelante, pese a las dificultades, la actualización de nuestro modelo económico para construir un socialismo próspero e sostenible.

Resultado de un diálogo al más alto nivel, que incluyó una conversación telefónica que sostuve ayer con el Presidente Barack Obama, se ha podido avanzar en la solución de algunos temas de interés para ambas naciones.

Como prometió Fidel, en junio del 2001, cuando dijo: ¡Volverán!, arribaron hoy a nuestra Patria, Gerardo, Ramón y Antonio.

La enorme alegría de sus familiares y de todo nuestro pueblo, que se movilizó infatigablemente con ese objetivo, se extiende entre los cientos de comités y grupos de solidaridad; los gobiernos, parlamentos, organizaciones, instituciones y personalidades que durante estos 16 años reclamaron e hicieron denodados esfuerzos por su liberación. A todos ellos expresamos la más profunda gratitud y compromiso.

Esta decisión del Presidente Obama, merece el respeto y reconocimiento de nuestro pueblo.

Quiero agradecer y reconocer el apoyo del Vaticano, y especialmente, del Papa Francisco, al mejoramiento de las relaciones entre Cuba y Estados Unidos. Igualmente, al Gobierno de Canadá por las facilidades creadas para la realización del diálogo de alto nivel entre los dos países.

A su vez, decidimos excarcelar y enviar a Estados Unidos a un espía de origen cubano que estuvo al servicio de esa nación.

Por otra parte, basados en razones humanitarias, hoy también fue devuelto a su país el ciudadano norteamericano Alan Gross.

De manera unilateral, como es nuestra práctica y en estricto apego a nuestro ordenamiento legal, han recibido beneficios penales los reclusos correspondientes, incluida la excarcelación de personas sobre las que el Gobierno de los Estados Unidos había mostrado interés.

Igualmente, hemos acordado el restablecimiento de las relaciones diplomáticas.

Esto no quiere decir que lo principal se haya resuelto. El bloqueo económico, comercial y financiero que provoca enormes daños humanos y económicos a nuestro país debe cesar.

Aunque las medidas del bloqueo han sido convertidas en Ley, el Presidente de los Estados Unidos puede modificar su aplicación en uso de sus facultades ejecutivas.

Proponemos al Gobierno de los Estados Unidos adoptar medidas mutuas para mejorar el clima bilateral y avanzar hacia la normalización de los vínculos entre nuestros países, basados en los principios del Derecho Internacional y la Carta de las Naciones Unidas.

Cuba reitera su disposición a sostener cooperación en los organismos multilaterales, como la Organización de Naciones Unidas.

Al reconocer que tenemos profundas diferencias, fundamentalmente en materia de soberanía nacional, democracia, derechos humanos y política exterior, reafirmo nuestra voluntad de dialogar sobre todos esos temas.

Exhorto al Gobierno de los Estados Unidos a remover los obstáculos que impiden o restringen los vínculos entre nuestros pueblos, las familias y los ciudadanos de ambos países, en particular los relativos a los viajes, el correo postal directo y las telecomunicaciones.

Los progresos alcanzados en los intercambios sostenidos demuestran que es posible encontrar solución a muchos problemas. Como hemos repetido, debemos aprender el arte de convivir, de forma civilizada, con nuestras diferencias.

Sobre estos importantes temas volveremos a hablar más adelante.

Muchas gracias.

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OBAMA OPENS THE DOOR, BUT CUBA HAS TO WALK THROUGH IT

Globe editorial; The Globe and Mail; Dec. 17 2014,

Original Here:  Obama Opens The Door

President Barack Obama’s announcement that the United States will normalize diplomatic relations with Cuba is the beginning of the end of a standoff that has outlived its usefulness. Mr. Obama deserves praise for doing what he can within the limits of his executive powers to break the ice. But the onus on making this work doesn’t lie with the U.S. – it is the Castro regime that will either prove itself willing to join the 21st century or blow an opportunity to improve the lives of its people.

Cuba is a dictatorship. The media are state-controlled. Internet access is illegal without a permit. The government jails political prisoners in brutal conditions. As well, its economy is centrally planned, with only limited recent forays into private-sector employment. The average monthly wage is about $20 (U.S.) per month. Its state-run monopolies are as inefficient and corrupt as you’d expect.

And, yet, it has plenty of willing trading partners, including Canada (which played silent host to the talks that led to Wednesday’s announcement), Russia, India and the EU. But Cuba’s dictatorship has maintained its hold on absolute power by portraying itself as the brave resister of the U.S. trade embargo begun in 1961 during the Cold War. If it has imprisoned its own people in a political and economic time warp, it has done so in the name of fighting an “imperial” power. As if.

It’s a useful overstatement to claim that the embargo has held back the country’s economic growth and prevented it from becoming more democratic. That was the choice of the Castro regime. The fact that the country has taken steps toward liberalization since 2006, when the ailing Fidel Castro transferred power to his brother Raul, is proof that Cuba controls its future, and always did.

The embargo is still in place, for now. Mr. Obama can’t lift it unilaterally; it will take an act of Congress to do that, and the Republican majority will oppose it unless there are convincing signs from Cuba that it is moving toward democracy.

But the opening of an American embassy in Havana is a positive step, as is the lifting of travel and financial restrictions that will allow for limited U.S. investment. The more access Cuba has to the world, the harder it will be for the government to keep its people trapped in the past.

12166748-cartoon-like-drawings-of-flags-showing-friendship-between-cuba-and-usa

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TEXT OF PRESIDENT OBAMA’S REMARKS ON US-CUBA RELATIONS, DEC. 17, 2014

The Associated Press; Published: December 17, 2014;

1WASHINGTON — The text of President Barack Obama’s remarks Wednesday on the release of American Alan Gross from a Cuban prison and on future diplomatic relations between the two countries. The text was provided by the White House:

Good afternoon. Today, the United States of America is changing its relationship with the people of Cuba.

In the most significant changes in our policy in more than 50 years, we will end an outdated approach that, for decades, has failed to advance our interests, and instead we will begin to normalize relations between our two countries. Through these changes, we intend to create more opportunities for the American and Cuban people, and begin a new chapter among the nations of the Americas.

There’s a complicated history between the United States and Cuba. I was born in 1961 — just over two years after Fidel Castro took power in Cuba, and just a few months after the Bay of Pigs invasion, which tried to overthrow his regime. Over the next several decades, the relationship between our countries played out against the backdrop of the Cold War, and America’s steadfast opposition to communism. We are separated by just over 90 miles. But year after year, an ideological and economic barrier hardened between our two countries.

Meanwhile, the Cuban exile community in the United States made enormous contributions to our country — in politics and business, culture and sports. Like immigrants before, Cubans helped remake America, even as they felt a painful yearning for the land and families they left behind. All of this bound America and Cuba in a unique relationship, at once family and foe.

Proudly, the United States has supported democracy and human rights in Cuba through these five decades. We have done so primarily through policies that aimed to isolate the island, preventing the most basic travel and commerce that Americans can enjoy anyplace else. And though this policy has been rooted in the best of intentions, no other nation joins us in imposing these sanctions, and it has had little effect beyond providing the Cuban government with a rationale for restrictions on its people. Today, Cuba is still governed by the Castros and the Communist Party that came to power half a century ago.

Neither the American nor Cuban people are well served by a rigid policy that is rooted in events that took place before most of us were born. Consider that for more than 35 years, we’ve had relations with China — a far larger country also governed by a Communist Party. Nearly two decades ago, we re-established relations with Vietnam, where we fought a war that claimed more Americans than any Cold War confrontation.

That’s why — when I came into office — I promised to re-examine our Cuba policy. As a start, we lifted restrictions for Cuban-Americans to travel and send remittances to their families in Cuba. These changes, once controversial, now seem obvious. Cuban-Americans have been reunited with their families, and are the best possible ambassadors for our values. And through these exchanges, a younger generation of Cuban-Americans has increasingly questioned an approach that does more to keep Cuba closed off from an interconnected world.

While I have been prepared to take additional steps for some time, a major obstacle stood in our way — the wrongful imprisonment, in Cuba, of a U.S. citizen and USAID subcontractor Alan Gross for five years. Over many months, my administration has held discussions with the Cuban government about Alan’s case, and other aspects of our relationship. His Holiness Pope Francis issued a personal appeal to me, and to Cuba’s President Raul Castro, urging us to resolve Alan’s case, and to address Cuba’s interest in the release of three Cuban agents who have been jailed in the United States for over 15 years.

Today, Alan returned home — reunited with his family at long last. Alan was released by the Cuban government on humanitarian grounds. Separately, in exchange for the three Cuban agents, Cuba today released one of the most important intelligence agents that the United States has ever had in Cuba, and who has been imprisoned for nearly two decades. This man, whose sacrifice has been known to only a few, provided America with the information that allowed us to arrest the network of Cuban agents that included the men transferred to Cuba today, as well as other spies in the United States. This man is now safely on our shores.

Having recovered these two men who sacrificed for our country, I’m now taking steps to place the interests of the people of both countries at the heart of our policy.

First, I’ve instructed Secretary (of State John) Kerry to immediately begin discussions with Cuba to re-establish diplomatic relations that have been severed since January of 1961. Going forward, the United States will re-establish an embassy in Havana, and high-ranking officials will visit Cuba.

Where we can advance shared interests, we will — on issues like health, migration, counterterrorism, drug trafficking and disaster response. Indeed, we’ve seen the benefits of cooperation between our countries before. It was a Cuban, Carlos Finlay, who discovered that mosquitoes carry yellow fever; his work helped Walter Reed fight it. Cuba has sent hundreds of health care workers to Africa to fight Ebola, and I believe American and Cuban health care workers should work side by side to stop the spread of this deadly disease.

Now, where we disagree, we will raise those differences directly — as we will continue to do on issues related to democracy and human rights in Cuba. But I believe that we can do more to support the Cuban people and promote our values through engagement. After all, these 50 years have shown that isolation has not worked. It’s time for a new approach.

Second, I’ve instructed Secretary Kerry to review Cuba’s designation as a state sponsor of terrorism. This review will be guided by the facts and the law. Terrorism has changed in the last several decades. At a time when we are focused on threats from al-Qaida to ISIL, a nation that meets our conditions and renounces the use of terrorism should not face this sanction.

Third, we are taking steps to increase travel, commerce, and the flow of information to and from Cuba. This is fundamentally about freedom and openness, and also expresses my belief in the power of people-to-people engagement. With the changes I’m announcing today, it will be easier for Americans to travel to Cuba, and Americans will be able to use American credit and debit cards on the island. Nobody represents America’s values better than the American people, and I believe this contact will ultimately do more to empower the Cuban people.

I also believe that more resources should be able to reach the Cuban people. So we’re significantly increasing the amount of money that can be sent to Cuba, and removing limits on remittances that support humanitarian projects, the Cuban people, and the emerging Cuban private sector.

I believe that American businesses should not be put at a disadvantage, and that increased commerce is good for Americans and for Cubans. So we will facilitate authorized transactions between the United States and Cuba. U.S. financial institutions will be allowed to open accounts at Cuban financial institutions. And it will be easier for U.S. exporters to sell goods in Cuba.

I believe in the free flow of information. Unfortunately, our sanctions on Cuba have denied Cubans access to technology that has empowered individuals around the globe. So I’ve authorized increased telecommunications connections between the United States and Cuba. Businesses will be able to sell goods that enable Cubans to communicate with the United States and other countries.

These are the steps that I can take as president to change this policy. The embargo that’s been imposed for decades is now codified in legislation. As these changes unfold, I look forward to engaging Congress in an honest and serious debate about lifting the embargo.

Yesterday, I spoke with Raul Castro to finalize Alan Gross’s release and the exchange of prisoners, and to describe how we will move forward. I made clear my strong belief that Cuban society is constrained by restrictions on its citizens. In addition to the return of Alan Gross and the release of our intelligence agent, we welcome Cuba’s decision to release a substantial number of prisoners whose cases were directly raised with the Cuban government by my team. We welcome Cuba’s decision to provide more access to the Internet for its citizens, and to continue increasing engagement with international institutions like the United Nations and the International Committee of the Red Cross that promote universal values.

But I’m under no illusion about the continued barriers to freedom that remain for ordinary Cubans. The United States believes that no Cubans should face harassment or arrest or beatings simply because they’re exercising a universal right to have their voices heard, and we will continue to support civil society there. While Cuba has made reforms to gradually open up its economy, we continue to believe that Cuban workers should be free to form unions, just as their citizens should be free to participate in the political process.

Moreover, given Cuba’s history, I expect it will continue to pursue foreign policies that will at times be sharply at odds with American interests. I do not expect the changes I am announcing today to bring about a transformation of Cuban society overnight. But I am convinced that through a policy of engagement, we can more effectively stand up for our values and help the Cuban people help themselves as they move into the 21st century.

To those who oppose the steps I’m announcing today, let me say that I respect your passion and share your commitment to liberty and democracy. The question is how we uphold that commitment. I do not believe we can keep doing the same thing for over five decades and expect a different result. Moreover, it does not serve America’s interests, or the Cuban people, to try to push Cuba toward collapse. Even if that worked — and it hasn’t for 50 years — we know from hard-earned experience that countries are more likely to enjoy lasting transformation if their people are not subjected to chaos. We are calling on Cuba to unleash the potential of 11 million Cubans by ending unnecessary restrictions on their political, social, and economic activities. In that spirit, we should not allow U.S. sanctions to add to the burden of Cuban citizens that we seek to help.

To the Cuban people, America extends a hand of friendship. Some of you have looked to us as a source of hope, and we will continue to shine a light of freedom. Others have seen us as a former colonizer intent on controlling your future. Jos� Mart� once said, “Liberty is the right of every man to be honest.” Today, I am being honest with you. We can never erase the history between us, but we believe that you should be empowered to live with dignity and self-determination. Cubans have a saying about daily life: “No es facil” — it’s not easy. Today, the United States wants to be a partner in making the lives of ordinary Cubans a little bit easier, more free, more prosperous.

To those who have supported these measures, I thank you for being partners in our efforts. In particular, I want to thank His Holiness Pope Francis, whose moral example shows us the importance of pursuing the world as it should be, rather than simply settling for the world as it is; the government of Canada, which hosted our discussions with the Cuban government; and a bipartisan group of congressmen who have worked tirelessly for Alan Gross’s release, and for a new approach to advancing our interests and values in Cuba.

Finally, our shift in policy toward Cuba comes at a moment of renewed leadership in the Americas. This April, we are prepared to have Cuba join the other nations of the hemisphere at the Summit of the Americas. But we will insist that civil society join us so that citizens, not just leaders, are shaping our future. And I call on all of my fellow leaders to give meaning to the commitment to democracy and human rights at the heart of the Inter-American Charter. Let us leave behind the legacy of both colonization and communism, the tyranny of drug cartels, dictators and sham elections. A future of greater peace, security and democratic development is possible if we work together — not to maintain power, not to secure vested interest, but instead to advance the dreams of our citizens.

My fellow Americans, the city of Miami is only 200 miles or so from Havana. Countless thousands of Cubans have come to Miami — on planes and makeshift rafts; some with little but the shirt on their back and hope in their hearts. Today, Miami is often referred to as the capital of Latin America. But it is also a profoundly American city — a place that reminds us that ideals matter more than the color of our skin, or the circumstances of our birth; a demonstration of what the Cuban people can achieve, and the openness of the United States to our family to the South. Todos somos Americanos.

Change is hard — in our own lives, and in the lives of nations. And change is even harder when we carry the heavy weight of history on our shoulders. But today we are making these changes because it is the right thing to do. Today, America chooses to cut loose the shackles of the past so as to reach for a better future — for the Cuban people, for the American people, for our entire hemisphere, and for the world.

Thank you. God bless you and God bless the United States of America.

alan-gross-cuba121714045-756x540Alan Gross returns Home, December 17, 2014

2Billboard re the “Cuban Five”

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OBAMA: US RE-ESTABLISHING RELATIONS WITH CUBA

By JULIE PACE and MATTHEW LEE; Dec. 17, 2014 1:36 PM EST

460x WASHINGTON (AP) — President Barack Obama announced the re-establishment of diplomatic relations with Cuba on Wednesday and declared an end to America’s “outdated approach” to the communist island in a historic shift aimed at ending a half-century of Cold War enmity.

“These 50 years have shown that isolation has not worked,” Obama said in remarks from the White House. “It’s time for a new approach.”

As Obama spoke to Americans, Cuban President Raul Castro addressed his own nation from Havana, saying that while the two countries still have profound differences in areas such as human rights and foreign policy, they must learn to live together “in a civilized manner.”

Wednesday’s announcements followed more than a year of secret talks between the U.S. and Cuba, including clandestine meetings in Canada and the Vatican and personal involvement from Pope Francis. The re-establishment of diplomatic ties was accompanied by Cuba’s release of American Alan Gross, who had been imprisoned for five years, and the swap of a Cuban who had spied for the U.S. for three Cubans jailed in Florida. Gross spoke with Obama from the plane carrying him back to the U.S.

Obama’s plans are sweeping: He aims to expand economic ties with Cuba, open an embassy in Havana, send high-ranking U.S. officials to visit and review Cuba’s designation as a state sponsor of terrorism. The U.S. also is easing restrictions on travel to Cuba, including for family visits, official U.S. government business and educational activities. But tourist travel remains banned.

Obama’s action marked an abrupt use of U.S. executive authority. However, he cannot unilaterally end the longstanding U.S. economic embargo on Cuba, which was passed by Congress and would require action from lawmakers to overturn.

In a statement, the Vatican said Pope Francis “wishes to express his warm congratulations” for the efforts taken by Cuba and the U.S. “with the aim of overcoming, in the interest of the citizens of both countries, the difficulties which have marked their recent history.”

U.N. Secretary-General Ban Ki-moon called the news “very positive” and thanked the U.S. and Cuban presidents “for taking this very important step.”

Obama said Gross’ imprisonment had been a major obstacle in normalizing relations. Gross arrived at an American military base just outside Washington Wednesday morning, accompanied by his wife and a handful of U.S. lawmakers. He went immediately into a meeting with Secretary of State John Kerry, who said he looked forward to becoming the first U.S. secretary of state in 60 years to visit Cuba.

Licensed American travelers to Cuba will now be able to return to the U.S. with $400 in Cuban goods, including tobacco and alcohol products worth less than $100 combined. This means the long-standing ban on importing Cuban cigars is over, although there are still limits.

The U.S. is also increasing the amount of money Americans can send to Cubans from $500 to $2,000 every three months. Early in his presidency, Obama allowed unlimited family visits by Cuban-Americans and removed a $1,200 annual cap on remittances. Kerry is also launching a review of Cuba’s designation as a state sponsor of terror.

Obama said he continued to have serious concerns about Cuba’s human rights record but did not believe the current American policy toward the island was advancing efforts to change the government’s behavior.

“I do not believe we can keep doing the same thing for over five decades and expect a different result,” he said.

Some on Capitol Hill disagreed with his move. Sen. Marco Rubio, R-Fla., said the new U.S. policy would do nothing to address the issues of Cuba’s political system and human rights record. “But it potentially goes a long way in providing the economic lift that the Castro regime needs to become permanent fixtures in Cuba for generations to come,” Rubio said.

Senate Majority Leader Harry Reid, D-Nev., said that while he remains concerned about human rights and political freedom inside Cuba, “I support moving forward toward a new path with Cuba.”

U.S. officials said Cuba was taking some steps as part of the agreement to address its human rights issues, including freeing 53 political prisoners.

Cuba also released a non-American U.S. intelligence ‘asset’ along with Gross. Officials said the spy had been held for nearly 20 years and was responsible for some of the most important counterintelligence prosecutions that the United States has pursed in recent decades. That includes convicted Cuban spies Ana Belen Montes, Walter Kendall Myers and Gwendolyn Myers and a group known as the Cuban Five.

The three Cubans released in exchange for the spy are part of the Cuban Five — a group of men who were part of the “Wasp Network” sent by Cuba’s then-President Fidel Castro to spy in South Florida. The men, who are hailed as heroes in Cuba, were convicted in 2001 in Miami on charges including conspiracy and failure to register as foreign agents in the U.S.

Two of the five were previously released after finishing their sentences. Gross was detained in December 2009 while working to set up Internet access as a subcontractor for the U.S. Agency for International Development, which does work promoting democracy in the communist country. It was his fifth trip to Cuba to work with Jewish communities on setting up Internet access that bypassed local censorship.

Bonnie Rubinstein, Gross’ sister, heard the news from a cousin, who saw it on television. “We’re like screaming and jumping up and down,” she said in a brief telephone interview from her home in Texas.

Cuba considers USAID’s programs illegal attempts by the U.S. to undermine its government, and Gross was tried and sentenced to 15 years in prison.

Gross’ family has said he was in ailing health. His wife, Judy, said in a statement earlier this month that he had lost more than 100 pounds, could barely walk due to chronic pain and had lost much of the sight in his right eye. He walked without assistance after he arrived back in the United States.

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CUBA’S ECONOMY AT A CROSSROADS

Original Here: NY Times, Editorial: Cuban Economy

Leer en español

By THE EDITORIAL BOARD, DEC. 14, 2014

In July 2007, while serving as acting president as his brother underwent medical treatment, Raúl Castro delivered a startling indictment of the Cuban economy when he railed about the inefficiencies of the dairy industry. His description of the onerous and expensive mechanism to get milk from cows to dinner tables was old news to Cubans, who have been subjected for decades to a centrally planned economy that is among the world’s most dysfunctional and anomalous. It soon became clear that Mr. Castro’s unexpected candor that day signaled the start of a transformational era for the island’s economy.

After Fidel Castro ceded power to his brother in 2008, the government initiated reforms that have allowed Cubans to start building livelihoods that are not wholly subject to state control. The pace has been halting, with plenty of backtracking from the government’s old guard, which views further liberalization of the economy as an abdication of the socialist system Fidel Castro made sacrosanct.

The looming end of the Castro era — Raúl Castro, 83, has said he will step down in 2018 — is unfolding amid a vigorous debate on the future of the country’s economy.

To date, the Obama administration has watched the reforms with skepticism. The White House has eased restrictions on remittances and travel to the island, but it has done relatively little else to pare down the web of sanctions the United States has imposed on Cuba for decades.

President Obama could help expand the role of Cuba’s small but growing entrepreneurial class by relaxing sanctions through executive authority and working with the growing number of lawmakers who want to expand business with Cuba. The White House could start that process by removing Cuba from the State Department list of countries that sponsor terrorist organizations and making it easier for Americans to provide start up-capital for independent small businesses. Doing that would empower Cuban-Americans to play a more robust role in the island’s economic transformation. More significantly, it would gradually erode the Cuban government’s ability to blame Washington for the shortcomings of an economy that is failing its citizens largely as a result of its own policies.

Before Fidel Castro came to power in 1959, Cuba’s economy was heavily reliant on the United States, which bought the bulk of its main export, sugar. American tourists flocked to the island, lured by its proximity, tropical weather and raucous night life.

After the overthrow of Fulgencio Batista, an authoritarian leader who had protected American commercial interests on the island, Fidel Castro’s government asserted control over virtually every segment of the economy. It seized land and assets from American companies and vowed to guarantee all citizens housing, health care and education. Communism brought an ever more anemic and backward economy, one propped up largely by Moscow. But after the Soviet Union collapsed in 1991, so did Cuba’s economy.

Cubans euphemistically call the stark deprivation of the 1990s the “special period,” a time when the Cuban government was forced to allow in some foreign investment and authorize limited private-sector employment. In 1999, Havana found a new benefactor in the newly elected president of Venezuela, Hugo Chávez — which gave Cuban officials the ability to retighten state control of the economy. But in the last two years Venezuela, which provides heavily subsidized oil to Cuba in exchange for medical services, has struggled with a worsening economic and political crisis, which could force it to cut off subsidies to Havana.

The precariousness of that relationship has added urgency to the debate over how fast the Cuban government needs to implement the reforms Raúl Castro endorsed. Old-guard leaders warn that a liberalized market economy could turn Cuba into a less egalitarian society and provide an opening for the United States to destabilize the government through a flood of private investment. Reformists, including some of the country’s leading economists, say the current state of the economy is untenable.

The reality is that the island’s social welfare achievements cannot be sustained if current economic and demographic trends hold. Cuba is currently ranked in the top tier of the United Nations Human Development Index, a measure of a country’s education level, life expectancy and other variables. That’s an achievement matched by only two other countries in Latin America and the Caribbean, Argentina and Chile.

Wages in Cuba are worth roughly 28 percent of what they were before the collapse of the Soviet Union, according to the Center for the Study of the Cuban Economy at the state-run University of Havana. The devaluation has turned workplace theft into a major problem. It has also led tens of thousands of Cuban professionals to emigrate to the United States and elsewhere in Latin America in recent years in search of a better life. The country’s birthrate is declining, while its elderly are living longer.

The agricultural sector remains stymied by outdated technology and byzantine policies. A foreign investment law Cuba’s National Assembly approved in March has yet to deliver a single deal. Adding to the challenges, the Cuban government has pledged to do away soon with its dual-currency system (which includes a dollar-pegged peso established in the 1990s when tourism opened up), a process that could drive up inflation. Yet against the picture of stagnation is the growth of a new class of private-sector employees, now nearly 500,000 strong. That’s not a huge number in a nation of 11 million, but they are a marvel of ingenuity in a place where running a private restaurant requires buying virtually all ingredients on the black market. Basic staples, like potatoes, must be purchased as contraband in Cuba.

Many of those building small businesses, such as bed-and-breakfasts, are Cubans who returned with savings earned abroad and those with relatives outside the country who provided start-up capital. All struggle with the bureaucracy, since they are unable to import legally items as basic as mattresses and pillows. Bringing items from the United States is onerous and complicated by American sanctions. Cuban authorities appear conflicted about the growing private sector. While they welcome the employment and tax revenue it generates, bureaucrats are throttling businesses that are doing particularly well and forcing some to become joint ventures with the state. The underlying message seems to be: We want prosperity but not overly prosperous individuals.

Washington could empower the reformist camp by making it easier for Cuban entrepreneurs to get external financing and business training. That type of engagement is unlikely to succeed unless the United States abandons its policy of regime change. Cuba’s economic transformation may be proceeding slowly, but it could well lead to a more open society. For now, continued antagonism from Washington is only helping the old guard.

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The Moa Bay Nickel Smelter

HAV_MeliaCohiba_Aerial_001Melia Cohiba Hotel and Hotel Riviera on the Right

g-lectores-de-tabaqueria-512Cigar Manufacture

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U.S AGRICULTURAL EXPORTS TO CUBA: COMPOSITION, TRENDS, AND PROSPECTS FOR THE FUTURE

By Mario A. Gonzalez-Corzo and Armando Nova Gonzalez

New PictureOriginal Article here:  http://www.choicesmagazine.org/magazine/pdf/cmsarticle_341.pdf

 13903139641_7655cbec7c_bMario A. Gonzalez-Corzo and Armando Nova Gonzalez

 

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CUBA’S EXTRAORDINARY GLOBAL MEDICAL RECORD SHAMES THE US BLOCKADE; From Ebola to earthquakes, Havana’s doctors have saved millions. Obama must lift this embargo.

cuba ebola B Seumas Milne, The Guardian, Wednesday 3 December 2014 20.07 GMT

Original article here: CUBA’S GLOBAL MEDICAL RECORD

Four months into the internationally declared Ebola emergency that has devastated west Africa, Cuba leads the world in direct medical support to fight the epidemic. The US and Britain have sent thousands of troops and, along with other countries, promised aid – most of which has yet to materialise. But, as the World Health Organisation has insisted, what’s most urgently needed are health workers. The Caribbean island, with a population of just 11m and official per capita income of $6,000 (£3,824), answered that call before it was made. It was first on the Ebola frontline and has sent the largest contingent of doctors and nurses – 256 are already in the field, with another 200 volunteers on their way.

While western media interest has faded with the receding threat of global infection, hundreds of British health service workers have volunteered to join them. The first 30 arrived in Sierra Leone last week, while troops have been building clinics. But the Cuban doctors have been on the ground in force since October and are there for the long haul.

The need could not be greater. More than 6,000 people have already died. So shaming has the Cuban operation been that British and US politicians have felt obliged to offer congratulations. John Kerry described the contribution of the state the US has been trying to overthrow for half a century “impressive”. The first Cuban doctor to contract Ebola has been treated by British medics, and US officials promised they would “collaborate” with Cuba to fight Ebola.

But it’s not the first time that Cuba has provided the lion’s share of medical relief following a humanitarian disaster. Four years ago, after the devastating earthquake in impoverished Haiti, Cuba sent the largest medical contingent and cared for 40% of the victims. In the aftermath of the Kashmir earthquake of 2005, Cuba sent 2,400 medical workers to Pakistan and treated more than 70% of those affected; they also left behind 32 field hospitals and donated a thousand medical scholarships.

That tradition of emergency relief goes back to the first years of the Cuban revolution. But it is only one part of an extraordinary and mushrooming global medical internationalism. There are now 50,000 Cuban doctors and nurses working in 60 developing countries. As Canadian professor John Kirk puts it: “Cuban medical internationalism has saved millions of lives.” But this unparalleled solidarity has barely registered in the western media.

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Cuban doctors have carried out 3m free eye operations in 33 countries, mostly in Latin America and the Caribbean, and largely funded by revolutionary Venezuela. That’s how Mario Teran, the Bolivian sergeant who killed Che Guevara on CIA orders in 1967, had his sight restored40 years later by Cuban doctors in an operation paid for by Venezuela in the radical Bolivia of Evo Morales. While emergency support has often been funded by Cuba itself, the country’s global medical services are usually paid for by recipient governments and have now become by far Cuba’s largest export, linking revolutionary ideals with economic development. That has depended in turn on the central role of public health and education in Cuba, as Havana has built a low-cost biotech industry along with medical infrastructure and literacy programmes in the developing countries it serves – rather than sucking out doctors and nurses on the western model.

Internationalism was built into Cuba’s DNA. As Guevara’s daughter, Aleida, herself a doctor who served in Africa, says: “We are Afro-Latin Americans and we’ll take our solidarity to the children of that continent.” But what began as an attempt to spread the Cuban revolution in the 60s and became the decisive military intervention in support of Angola against apartheid in the 80s, has now morphed into the world’s most ambitious medical solidarity project.

Its success has depended on the progressive tide that has swept Latin America over the past decade, inspired by socialist Cuba’s example during the years of rightwing military dictatorships. Leftwing and centre-left governments continue to be elected and re-elected across the region, allowing Cuba to reinvent itself as a beacon of international humanitarianism.

But the island is still suffocated by the US trade embargo that has kept it in an economic and political vice for more than half a century. If Barack Obama wants to do something worthwhile in his final years as president he could use Cuba’s role in the Ebola crisis as an opening to start to lift that blockade and wind down the US destabilisation war.

There are certainly straws in the wind. In what looked like an outriding operation for the administration, the New York Times published six editorials over five weeks in October and November praising Cuba’s global medical record, demanding an end to the embargo, attacking US efforts to induce Cuban doctors to defect, and calling for a negotiated exchange of prisoners.

The paper’s campaign ran as the UN general assembly voted for the 23rd time, by 188 votes to 2 (US and Israel), to demand the lifting of the US blockade, originally imposed in retaliation for the nationalisation of American businesses and now justified on human rights grounds – by a state allied to some of the most repressive regimes in the world.

The embargo can only be scrapped by congress, still stymied by the heirs of the corrupt US-backed dictatorship which Fidel Castro and Guevara overthrew. But the US president has executive scope to loosen it substantially and restore diplomatic ties. He could start by releasing the remaining three “Miami Five” Cuban intelligence agents jailed 13 years ago for spying on anti-Cuba activist groups linked to terrorism.

The obvious moment for Obama to call time on the 50-year US campaign against Cuban independence would be at next April’s Summit of the Americas – which Latin American governments had threatened to boycott unless Cuba was invited. The greatest contribution those genuinely concerned about democratic freedoms in Cuba can make is to get the US off the country’s back.

If the blockade really were to be dismantled, it would not only be a vindication of Cuba’s remarkable record of social justice at home and solidarity abroad, backed by the growing confidence of an independent Latin America. It would also be a boon for millions around the world who would benefit from a Cuba unshackled – and a demonstration of what can be achieved when people are put before corporate profit.

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THE CUBAN QUESTION

December 5, 2014 – The Economist

Original Complete Article: The Cuban Question

HAVING got immigration reform off his chest, will Barack Obama unsheathe his executive-order pen again to tackle another intractable subject on which Congress has blocked change for decades? The United States imposed an economic embargo on Cuba back in 1960 as Fidel Castro was forcing communism on his people. The embargo was meant to topple Mr Castro. Today he enjoys a tranquil retirement in a Havana suburb while his slightly younger brother, Raúl, runs the country.

The embargo has not just failed; it has also given the Castros a potent propaganda weapon. It still has diehard defenders in Congress, which under a law from the 1990s is the only body that can repeal it. Even so, Mr Obama has some scope to change the policy. Indeed, in his first term he lifted restrictions on travel and remittances to the island by Cuban-Americans. There are several reasons why he might now want to do more.

First, support for the embargo across America is crumbling. A nationwide poll taken earlier this year for the Atlantic Council, a think-tank, found that 56% of respondents favoured improving relations, while more than 60% of Latinos and residents of Florida did. Second, Cuba is itself starting to change. Under reforms launched by Raúl Castro, 1.1m Cubans, more than a fifth of the labour force, work in a budding private sector of farms, co-operatives and small businesses. Access to mobile phones and the internet has grown. Opposition bloggers such as Yoani Sánchez, though often harassed, have not been silenced.

The third reason for action is that Cuba is one of the few issues that unites Latin America. The region is unanimous in believing that, notwithstanding its Communist regime, the island should be accorded a normal place in relations in the Americas. That consensus lies behind the decision of Panama to invite Raúl Castro to the Summit of the Americas, a gathering that it is due to host in April. The previous six summits have been restricted to the hemisphere’s democracies.

This leaves Mr Obama with a dilemma. This is not so much over whether or not to attend. He probably will. Rather, it is whether to act between now and then to stop the embargo becoming an issue that dominates the summit. Mr Obama could, for example, issue a general licence for all Americans to travel to Cuba. He could also remove Cuba from the State Department’s list of “state sponsors of terrorism”, on which it sits alongside only Iran, Sudan and Syria. There are no grounds for Cuba still to be there. In October the Financial Action Task Force, an inter-governmental body, removed Cuba from its watch list of countries doing too little to prevent money laundering and terrorist financing.

But the administration has not yet asked the State Department to remove Cuba from its terrorism list. Although Mr Obama has little to lose from loosening the embargo, he also has little to gain. Raúl Castro’s economic reforms have stalled recently; he never intended them to lead to political change. The Cubans show no sign of being prepared to release Alan Gross, an elderly American aid worker jailed for illegally handing out telecoms equipment. They want to swap him for three Cuban spies serving life terms for snooping on hardline exiles in Miami.

Even so, it would be surprising if Mr Obama did not take some action on Cuba before the summit. Oddly, pushback from the defenders of the embargo in Congress may take the form of sanctions on Venezuela, which provides the island with a subsidy (in the form of cheap oil) equal to perhaps 15% of its GDP. A bill to deny visas and freeze bank accounts of Venezuelan officials implicated in the repression of protests earlier this year is stalled in the Senate. Once the new Republican majority takes control in January, it is likely to move forward. Anthony Blinken, Mr Obama’s nominee for deputy secretary of state, told a Senate committee on November 19th that the administration “would not oppose” this—a reversal of its previous stance.

For anyone who wants to see change in Venezuela, this is depressing. The plunging oil price and economic mismanagement are weakening President NicolásMaduro’s elected authoritarian regime. The crucial issue is ensuring that a legislative election next year is free and fair. Sanctions, however limited, will boost MrMaduro’s declining popularity and give him an excuse to crack down, as some opposition leaders recognise. The lesson of Cuba is that pressure from Washington does not lead to democratisation. It would be a sad irony if the beginning of the end of one futile embargo coincided with the birth of another.

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URBAN PLANNER OFFERS TOUGH TALK ON CUBA’S ECONOMIC PROSPECTS

By Larry Luxner

November 10, 2014 http://newsismybusiness.com/planner-economic-prospects/

WASHINGTON — When Miguel Coyula discusses Cuba’s struggling economy, he sounds more like a Miami-based critic of the Castro regime than a retired Cuban official visiting the United States on a lecture tour, then going back home to Havana. But times have changed, and Coyula says he isn’t afraid to speak his mind.

“In Cuba, the word ‘criticize’ means to blame or demonize. But I try to be like a doctor. I tell the truth,” said the renowned architect and urban planner, who recently returned to Havana after a month-long trip that began in Providence, R.I., and included speaking engagements in not only Washington but also New York, Atlanta and Miami.

“To quote Raúl, we need to learn to listen to others, even when we don’t like what we hear. He’s invited people to speak out,” Coyula said. “These days, people who work for the government are more open. The instruction coming from the top is that it doesn’t matter what people say; no one can be interrupted.”

D11_293_021Miguel Coyula

A prominent architect and urban planner, Coyula, 72, advised Havana’s municipal government for more than 20 years as part of a progressive think tank known as Grupo para el Desarrollo Integral de la Capital (GDIC). He spoke to us following a private roundtable briefing at Downey McGrath Group, a Washington lobbying firm.

Among Coyula’s key predictions:

  • Investment in the much-hyped Mariel special development zone won’t materialize anytime soon — despite the new foreign investment law and incentives — mainly because foreign companies are deeply unhappy with the government’s refusal to allow them to pay employees directly.
  • The number of universities island-wide will be slashed from 67 to 15 in order to save money, but the quality of education will suffer as a result — especially when young Cubans need business skills such as accounting and management.
  • Cuba’s population, now stagnant at 11.2 million, will never hit the 12-million mark. That’s because Cuba is aging rapidly due to a low birth rate and the continuing exodus of young people. By 2030, at least 30 percent of all Cubans will be 60 or older, up from 20 percent today.
  • The Cuban government will begin phasing out the convertible peso (CUC) in December, as part of efforts to end the dual-currency system.

“By the end of this year, they’ll begin substituting CUCs for regular pesos, so if today you pay 2.50 CUC for a liter of oil, you’ll pay 60 pesos. Considering that the average monthly salary is 150 pesos, that’s a lot of money,” said Coyula. With the planned phase-out of convertible pesos, people are trying to get rid of their CUCs and acquire dollars instead. Officially, the exchange rate is 87 cents per CUC, but on the black market, it’s 96 to 98 cents per CUC.

“Prices are astronomically high, and there’s a lack of economic education after decades of no education on this subject,” he said. “People don’t realize that the society creates wealth. The state administers that wealth, but it must come from somewhere.”

Embargo is ‘ethical issue’

Coyula’s U.S. visit was sponsored by the Center for Democracy in the Americas, a Washington-based NGO that favors lifting the embargo and all U.S. travel restrictions against Cuba. His cousin, the well-known architectural historian Mario Coyula — who headed the GDIC — died this past July at the age of 79.

“For me, the embargo is an ethical issue,” he said. “But lifting it doesn’t necessarily mean that the day after people’s mindsets will change. The Cuban economy needs to be more efficient and dynamic — with or without the embargo.”

In Coyula’s opinion, “the revolution spends more than 40 percent of its time surviving. It’s maneuvering back and forth, and this has created a reactive mentality — always reacting to problems and not being pro-active. The present leadership is committed to the legacy of the revolution. They will try to keep the boat afloat as long as possible, until they die. Then they’ll pass the problems to the new leaders.”

And one of Cuba’s biggest problems, he said, is the rampant corruption that has impeded foreign investment — even as the government attempts to crack down on corruption by jailing foreigners such as Canadian businessman Cy Tokmakjian, who in September was sentenced to 15 years in prison.

“Recently, the World Bank ranked 189 countries based on the ease of investing. The best place to invest was Singapore. Last on the list was Chad,” he said. “Cuba is not even on the list. Imagine, Chad is there and Cuba’s not.”

Even North Korea, the world’s most isolated state, has something Cuba doesn’t have, Coyula pointed out: a sprawling free zone built with foreign (South Korean) investment that employs tens of thousands of workers.

“Mariel is the most promoted place in Cuba, with special development zones for investors. But soon it’ll be a year after the opening of Mariel, and there is absolutely nothing. Even the container terminal in Havana was moved to Mariel to give it a sense of activity, but no one will invest there,” he complained.

It’s the same thing with half a dozen golf course projects that have been enthusiastically proposed by overseas firms — yet Cuba’s new foreign investment law by itself won’t be enough to drum up business.

“All these projects are about to happen, but they haven’t happened yet,” Coyula told us. For one thing, potential foreign investors in Mariel don’t like the fact that they can’t hire employees on their own, but instead must pay a government employment agency in dollars for that labor. The agency, in turn, pays workers in Cuban pesos. That’s because the Castro government wants to avoid creating a class of highly paid Cubans who work for foreign companies, “but inequalities are there whether you like it or not.”

For example, Coyula spoke of a woman he knows who works for an Italian joint venture. That company pays the state $850 a month for her services, but the woman herself receives only 360 Cuban pesos (worth about $14 a month).

“Part of that money is used to sustain a bunch of bureaucrats,” he said. “Because of that, many foreign companies give their employees a bonus in dollars or CUCs. You never discuss with your employer how much [extra] you’re going to earn. They say it’s to protect the worker.”

 Cubans have become speculators

Because salaries are so low relative to the high prices for just about everything, Cubans have become speculators — especially when it comes to food, he said.

“People will buy everything, because if you don’t someone else will and speculate with it. So you get a pound of rice for 30 cents,” he explained. “In the free market, it costs five pesos, and in the dollar shop, it’s 25 pesos. So you sell the rice you don’t need. You wouldn’t give it to your neighbor for 30 cents a pound, you’ll sell it for two pesos, which is cheaper than the free market.”

As prices for ordinary Cubans rise, the benefits they’ve long become accustomed to, such as free education and healthcare, are rapidly drying up because the state can no longer afford to provide them.

“Cuba has 67 universities, and the idea is to leave only 15 — more or less one per province. But Havana will have more than one, so some provinces will be left with none. They’re merging institutions and reducing the budget for higher education.

They’ve already cut the healthcare budget by 15 percent. These are things that people don’t see. These measures have implications,” Coyula said, adding that old university deficits continue.

“In none of Cuba’s 67 universities can you study for an MBA. Today, we need managers and people to understand what economics really is. We don’t teach planning in our universities, either. You want to buy a book on business administration? They don’t have any. The government gives some courses in business, but in my opinion, they’re shallow.”

Telecom, tourism are bright spots

One bright spot, he said, is telecommunications. In 2009, Cuba had only 40,000 or so mobile phones in use. Today, more than 2 million Cubans have cell phones, more services are available than ever before, and costs have fallen dramatically.

“Raúl also lifted restrictions for Cubans to have access to hotels and resorts,” he said. “Last summer, half a million Cubans stayed in beach hotels. The domestic market is saving the tourism from the low season.”

But while tourism has boosted the economies of some of Cuba’s 15 provinces, others have not been helped at all. “For example, Matanzas and Cárdenas are taking advantage of Varadero, which generates hundreds of millions of dollars in tourism revenues. And Havana is, of course, the jewel of tourism,” he said. “But Las Tunas and Guantánamo have nothing.”

The resumption of normal relations resume between Washington and Havana would be dire news for Cuba’s closest Caribbean competitors, predicts Coyula.

“The day the embargo is lifted, the Dominican Republic will commit suicide,” he warned. “The Dominicans inherited our sugar, tobacco and tourism industries. Once Cuba is open again, nobody will be interested in the D.R. You wait and see.”

 mariel Mariel Special Development Zone

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