March 23, 2004

Investing in Cuba

In the following article from Cubanet, Cuban journalist Ariel Delgado Covarrubias reports that foreign concerns doing business in Cuba down for 2003:


HAVANA, March 19 (Ariel Delgado Covarrubias) For the first time in 15 years, the number of foreign business concerns operating in Cuba has diminished, from 403 at the end of 2002 to 342 at the end of 2003, according to the Minister for Foreign Investment and Economic Cooperation, Marta Lomas.

Even with fewer companies, said the minister, there was an increase in exports, internal sales, and profits. She said 70 cents of every dollar invested stayed in the country, and pegged net profits at 17%.

The sectors most favorably affected by foreign investment are basic industry, communications, tourism, computing, agriculture and food production. Spain, Canada, Italy and France are the four biggest investors in the island.

According to ministry reports, 3,242 entrepreneurs from 85 countries expressed and interest in investing in the Cuban economy. Despite existing U. S. government regulations forbidding most forms of trade between the two countries, the ministry said 62 U. S. delegations traveled to Havana for exploratory conversations.

62 U.S. delegations traveled to Cuba for trade talks. 3,242 entrepeneurs want to do business, 342 business concerns in Cuba. 70 cents of ever dollar stays in the island. What is missing here? Why isnt there any mention of how many Cuban companies there are in Cuba? Why is there no mention of any Cuban businesses?

Because Cubans aren't allowed to own businesses. They aren't allowed to own their homes, much less run a business venture. This is what steams me about companies from the US wanting to trade with Cuba under the guise of "helping" the Cuban people. The fact is they won't really be helping the people much as the people aren't in on it. Trade with Cuba is trade with Castro's regime.

The average Cubano isnt even allowed to make crappy Cuban trinkets to sell to the tourists. All the money from businesses trading with Cuba goes to Fidel and his minions.

Fidel Castro, heralded Marxist revolutionary turned bourgeois capitalist entraordinaire.

Posted by Val Prieto at March 23, 2004 07:55 AM

Comments

"even allowed to make crappy Cuban trinkets to sell to the tourists."

They can, but they have to sell the government quota and pay the state first, no?

Posted by: J.Scott Barnard at March 23, 2004 02:07 PM

Im not sure exactly how the knick knack industry works there.
I think the vendors at tourists areas are taxed, and whatever they sell has to be approved.

Posted by: Val Prieto at March 23, 2004 02:12 PM

Unfortunately there is one thing that Cubans can and do sell frequently...themselves.

Posted by: ComandanteZero at March 24, 2004 12:00 PM


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