The Cuban government has just announced the latest version of “foreign investment reforms.”
Before you go and put a dime in Cuba’s corrupt communist government, please consider what my friend Alberto de la Cruz posted yesterday:
“The most important flaw that is obvious from the outset is the legal aberration of expressly excluding the rights of Cubans on the island to participate as investors in their own country, an issue that is unparalleled in any civilized nation, and that alone disqualifies the best intentions beforehand. Another issue, no less twisted, is the exclusion of free contract (that is, allowing foreign investors to hire Cuban workers directly).
Both elements are unsustainable since they are not justified or serve any function other than to maintain absolute control over the population to prevent the weakening of political power.”
In other words, the Castro family, or “Castro Inc,” wants you to invest in Cuba but only if you align yourself with Raul and his sick older brother.
The new “reforma” does not allow you to negotiate directly with Cuban workers, or the essence of a free market economy where you can hire and fire based on your economic necessities.
In other words, Cuban workers are not allow to form ‘a union,” as they used to do before the communists came to power!
For example, my father was a banker in Cuba and a member of the “bankers union.” It allowed Cuban workers like my dad to negotiate with the many Cuban private banks or employers.
Pre-communist Cuba enjoyed living standards that no one in the island today enjoys today, as CONTACTO published a few years ago:
“In 1958, an industrial worker in Cuba earned an average salary of the equivalent of $6 US dollars per each 8-hour work day, while an agricultural worker earned the equivalent of $3 US dollars.
Cuba then ranked number eight (8) in the world as far as salaries paid to industrial workers…..”
By the way, you didn’t learn that by watching “Godfather II” or your Latin America studies class in school.
Don’t get your Cuban history from watching “Godfather II” or a leftist professor. Instead, talk to my father and the others who were actually there and remember the bloody communist takeover.
So don’t get too excited about Raul’s cynical “reformas,” as reported by Cross-border debt and equity specialist, William A. Wilson. In simple terms, how can you invest in a country that does not respect property laws? Just ask Cubans, or others, who had their properties expropriated by the same Castro brothers who now want you to invest in the island!
The bottom line is that Raul is not looking to improve Cuba’s economy.
He is just hoping that foolish investors will bail out Castro “socialismo.”
Raul needs a “sugar daddy” now that the USSR is dead or most countries don’t want to finance “la revolucion” that doesn’t pay back its loans.