In a recent interview with The Washington Post, Florida sugar magnate Alfonso Fanjul said he is ready to do business with Cuba “under the right circumstances.” The questions are: “what are the right circumstances?" and “who benefits when American companies ‘do business’ with communist Cuba?”
The Fanjul family left Cuba in 1959 when Fidel Castro confiscated all of its holdings. Eventually settling in Florida, the family rebuilt their lives and fortunes, benefitting from the price supports extended to American-grown sugar by Congress, and Fanjul corporations are now international in scope.
As reported in The Post, Alfonso Fanjul’s comments and meetings with Cuban government officials were promptly condemned by Cuban-American members of Congress who didn’t hesitate to point out that the interview included no discussion of the absence of civil liberties and labor and human rights in Cuba that foreign corporations already exploit.
Foreign companies “doing business” in Cuba are best described as “minority partners” of the Cuban government. Such companies don’t “do business” with Cuban entrepreneurs, they “do business” with the Cuban government, which obligingly “rents” those companies a compliant, uncomplaining labor force.
Cuba’s government sets the rental price that companies pay to the government. In turn, the government pays the employees somewhat less (usually a lot less), and keeps the difference. Complaining employees are fired —not by the company, but by the government—and replaced by someone “willing to work.” This is how Cuban communism works and finances the repression that sustains it.
As the two-day CELAC Summit closed in Havana at the end of January, leaders of the 33 Latin American and Caribbean (LAC) nations that compose this body adopted a triumphant pose for the assembled photographers.
Why the celebratory atmosphere? One might be forgiven for thinking it was connected to the various grand ambitions articulated at the summit–the second since CELAC was created in 2011–in the spheres of education, disaster management, combating corruption and similar hot-button regional issues. But as far as the leaders present were concerned, the greatest triumph was in declaring CELAC a "zone of peace."
"Peace," in this case, is understood as "non-interference." In the words of the summit declaration, each CELAC member state has the "inalienable right to choose its political, economic, social and cultural system as an essential condition to guarantee peaceful co-existence among nations." (My emphasis.)
Put another way, if you are running a one-party state, like the Cubans, or a mafia state that fixes elections, like the Venezuelans, you have nothing to fear. It's perverse, but it's true: even leaders of strong democracies, like Costa Rica, have had the temerity to adopt the language of rights in order to rationalize and justify their silence about the denial of rights to the opposition in non-democratic countries!
I’m not a betting man, but if I were, this is what I’d bet. With a series of statements by leading Cuban-Americans, stories of change inside the island, and growing public pressure and attention to liberalize the U.S. embargo toward Cuba, I’d wager that soon the Cuban government will do something to halt the process.
Further, I’d wager that when it does, hardliners in Congress and the dwindling number of groups that advocate for the embargo will react predictably: denouncing those who argued for more freedom in the restrictions as naïve, and insisting that now is not the time to open up—that in fact, now is the time to close down even those small, but effective, openings that have already been made.
Why do I think this? Because this has been the pattern for decades, whether it was the regime’s crackdown on the broad-based alliance of democratic activists, Concilio Cubano, in February 1996, in the tragic shootdown of two Brothers to the Rescue planes that same year, or the arrest of USAID contractor Alan Gross in 2009.
In each of these cases, talk of easing the embargo had grown just before the act of aggression by the Cuban government. And in each case, hardliners responded to ensure that the Cuban government got what it needs—isolation.
A new poll by the Atlantic Council released yesterday found that a majority of Americans are now in favor of stabilizing U.S.-Cuba relations. Of those sampled nationwide, six out of 10 said they favor policy changes that would allow more business transactions between the two countries, as well as the lifting of restrictions that don’t allow Americans to travel and spend money in Cuba as a result of the embargo.
According to the poll, 56 percent of Americans favor changes in U.S.-Cuba policy. Sixty-three percent of adults in Florida—which holds the largest concentration of Cuban-Americans in the country—and 62 percent of Latinos favor removal of all travel restrictions. Although support is stronger among Democrats, the poll found that 52 percent of Republicans are also in favor of normalizing relations with the country. Sixty-one percent of Americans, and 67 percent of Floridians, also believe that Cuba should not be considered a state sponsor of terrorism.
The poll points to growing disapproval of the U.S.’s economic embargo on Cuba, which has been condemned by the international community 22 years in a row. The trade embargo aimed to collapse the Castro government more than 50 years ago, but has been unsuccessful.
“The Cuba embargo is hampering the United States’ ability to maximize cooperation with allies in the hemisphere at a moment when there is increasing stability, growth, and opportunity,” says the report. Based on the findings, the poll suggests that although the U.S. should demand reciprocal gestures from the Cuban government, such as the release of imprisoned USAID contractor Alan Gross, naming a special envoy for Cuba could be a first sign by the Obama Administration of its willingness to begin deepen ties with the country.
The thirty-three countries that make up the Latin America and Caribbean Economic Community (CELAC), wrapped up their second summit by declaring the region a “zone of peace,” on Wednesday. Heads of state including Juan Manuel Santos of Colombia, Enrique Peña Nieto of Mexico, Nicolas Maduro of Venezuela, and recently elected Michelle Bachelet of Chile signed an accord vowing to resolve conflicts respectfully and peacefully.
According to the summit declaration, the meeting provides an opportunity for coordination within the region and emphasizes the need for pluralistic and respectful cooperation. This year’s summit highlighted issues of crime, economic hardship and inequality in the region, the potential economic benefit of free trade, and support for Argentina’s claims over the Falkland Islands.
The summit culminated with a commitment to non-intervention, cooperation and respect of "the inalienable right of every state to choose its political, economic, social, and cultural system, as an essential condition to guarantee peaceful co-existence among nations," read Cuban President Raul Castro, outgoing CELAC president.
CELAC was created in 2011 as an alternative to the Organization of American States, which has excluded Cuba since 1962. Costa Rica will assume the CELAC’s rotating presidency at the end of the summit.
U.S. acting deputy assistant secretary of State for Western Hemisphere affairs, Edward Alex Lee, and Cuban director-general of the U.S. Division of the Ministry of Foreign Affairs, Josefina Vidal Ferreiro, met in Havana on Thursday to discuss accords on safe, legal and orderly migration between the two countries.
This was the second meeting on migration between the two parties since July 2013, aimed at examining the status of accords signed by both governments in 1994 and 1995. The accords were put into place to combat illegal immigration and smuggling, after the Cuban government allowed thousands to leave the island on makeshift rafts prompting the balsero crisis of 1994. The discussions were suspended by President George W. Bush in 2003 and again in 2011 after Cuba sentenced American USAID contractor Allan Gross to 15 years in prison.
Cuban representatives criticized the U.S.’ “wet foot, dry foot policy,” which gives asylum to Cubans who reach U.S shores, saying that it is the main cause for illegal departure of Cuban citizens to the United States. The U.S. issued 24,727 Cuban immigrant visas in 2013.
The meeting took place in a “respectful environment” according to a statement released by the Cuban government on Thursday. They also expressed willingness to continue dialogue around issues of mutual interest between the two countries, including resuming direct postal service. The Obama administration has stated that the talks do not imply changes in U.S-Cuba policy, but will only ensure safe migration.
The Cuban government announced yesterday that it will be loosening restrictions on the purchase of new and used foreign-made cars. Under the new policy, Cubans will no longer need a permit issued by the Transportation Ministry to purchase cars from state vendors.
Until 2011, Cubans could only buy and sell cars made before 1959. But the new regulations approved by the Council of Ministers on Wednesday will “eliminate existing mechanisms of approval for the purchase of motor vehicles from the state,” according to state newspaper Granma. As a result, the paper reported that “the retail sale of new and used motorcycles, cars, vans, small trucks and mini buses for Cubans and foreign residents, companies and diplomats is freed up.”
Despite the change in policy, the Cuban government will maintain its monopoly on the sale of all cars on the island. According to Bert Hoffman of the German Institute of Global and Area Studies, this will cause car prices to remain high due to lack of competition in the market.
The change in policy comes in the context of Cuba’s reforms—knows as the lineamientos (guidelines)—which are led by President Raúl Castro and are meant to modernize the socialist regime’s struggling economy.
On Saturday nights in central Havana, a scene unfolds that defies stereotypes on this communist island famous for its salsa, strong rum and revolutionary heroes.
With the hiss of a fog machine, the country’s iconic rock star, Diony Arce, emerges from the darkness inside a local theater. He grabs a microphone and launches into a gut-wrenching scream that echoes through this quiet, residential neighborhood.
Diony is the lead singer of Zeus—the gods of Cuban metal. As the loud, abrasive music kicks in, this crowd of several hundred young fans unleashes a pent up flood of emotion.
They violently push and pull at each other while shouting up to Diony to play their favorite songs.
“Vamos a la Silla Electrica!”—“Violento Metrobus!”—“Viven en Mí!”
Diony and the band have performed in Havana since the 1980s. They’re the longest-running metal band in the country and they have the scars to prove it.
When the band first started performing, this American-influenced music was officially banned by the Castro government. It was seen as "music of the enemy." Long-haired, tattooed rockers—or “freakies”—were thrown in jail, and concerts were broken up by state police.
Thirty years later this music is accepted, but only within the official Agencia Cubana de Rock (Cuban Agency of Rock), a government institution overseeing the country’s rock scene. Formed in 2007, the Agency has created a space for rock bands to perform their music and gather crowds without worry of police crackdowns. The trade-off, however, is a government system managing the freedom of artists.
This small opening for rock music is a sign of the changing reality in Cuba, but it is also a difficult compromise for the country's artists.
The Cuban Mission to the United States halted nearly all consular services on Tuesday after its primary bank severed its client relationship with the political institution. According to the Cuban Interest Section in Washington, consular services including passport and visa processes will be shut down in the U.S. until the Cuban Mission can find a new bank, though humanitarian cases will continue to be processed.
M&T Bank, which formerly managed the Cuban Mission’s accounts, informed clients in in July that it would stop providing services to all foreign missions. The Interests Section blamed the Mission’s difficulty in finding a new bank on restrictions stemming from the U.S. economic embargo. It also warned that the suspension could have a negative impact on cultural and family visits to the island, as well as on Cubans who are not U.S. citizens but live in the U.S. and need to update their passports regularly through the Mission.
The U.S. broke diplomatic relations with Cuba in 1961, and has maintained the embargo on Cuba since the early 1960s. Tuesday’s news comes only one week after U.S. Secretary of State Kerry implored Havana to do more to foster personal freedoms on the island in a speech to the Organization of American States. Sec. Kerry added that the U.S. is “committed to human interchange,” referring to the people-to-people exchanges allowed under 2010 policy reforms.
Cuba approved a plan to gradually unify its dual monetary system, a statement carried by official newspaper Granma revealed yesterday. The measure is part of a set of reforms adopted by the Communist Party in 2011 aimed at introducing market mechanisms and decentralizing the Cuban economy. "(Unification) is imperative to guarantee the reestablishment of the Cuban peso's value and its role as money, that is as a unit of accounting, means of payment and savings," the official statement said.
Cuba has had two currencies since the collapse of the Soviet Union in 1994 when the country introduced the U.S. dollar as its second currency. Cuba's monetary system currently consists of the peso (CUP)—in which most wages are paid and local goods are priced—and the convertible peso (CUC), used in the tourism industry and foreign trade. Introduced in 2004, the CUC is pegged to the U.S. dollar and is currently valued at 25 pesos at exchange offices. However, companies must exchange dollars and CUCs with the government at the official exchange rate of one peso.
Last July, Cuban President Raúl Castro recognized that the dual currency is one of the “greatest obstacles for the country’s progress.” The system greatly complicates accounting, the evaluation of performance, and trade in the island. It is also very unpopular as sought-after imported goods—such as toothpaste and cooking oil—are far from reach to those who earn their salaries in pesos.
According to Cuban economists, the unification of the two currencies will take up to 18 months, and will involve devaluing the CUC and slightly revaluing the peso. The government has not provided a timetable for the reforms, but it has already begun adjusting the official exchange rate by allowing some companies to exchange dollars earned abroad for up to 12 pesos instead of one. The Cuban central bank has pledged it will back both currencies during the process to give Cubans enough time to convert their savings.