February 17, 2007
Embargo: The root of Cuba's economic difficulties?
Think again.
Great column published in today's Miami Herald. The thing to note is that it was written by Oscar Espinosa Chepe who is a Cuban economist and independent journalist.
Some highlights:
Years from now, when historians and analysts review today's publications and official statistics, they will be very confused. Despite the talk of a ''ferocious blockade,'' the United States has now become Cuba's sixth-largest trade partner and its leading provider of food. Its volume of trade approaches $500 million per year, according to the National Statistics Office. U.S. exporters are the principal suppliers of poultry, soy, corn, powdered milk and a long list of food products that are vital for the population. U.S. exporters are also in a position to supply medicines.In addition, possibly the largest net revenue consists of remittances from Cubans living in the United States, a sum that the U.N. Economic Commission for Latin America and the Caribbean places at about $1 billion per year.
To this should be added other financial flows toward Havana, such as the payments for telephone calls between both countries, which have monopoly prices fixed by Cuba. Those payments represent an annual revenue of more than $100 million.
Without a doubt, we're looking at what has become a virtual embargo, while the real blockade exists within. It's the blockade that the totalitarian regime has imposed on the Cuban people for almost 50 years, causing an enormous economic, social, political, demographic and ecological crisis.
The normalization of relations with the United States, a country that once was Cuba's trade partner par excellence, undoubtedly would be a beneficial factor for the Cuban economy as a whole. The direct investments, flow of technology and American tourists would be important.
Nevertheless, the main obstacle to the advancement of Cubans today is the persistence of a political, economic and social model that has steered productive potential and creativity into a trap. Until this true cause of our misery is resolved and radically eliminated, there can be no real solutions to the Cuban drama.
Direct link to the entire column.
Posted by Henry Louis Gomez at February 17, 2007 06:24 PM
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Comments
This isn't really telling anyone with at least an elementary education in the subject didn't already know.
Lifting the embargo would be beneficial to both the Cuban and American economies as a whole. But the reason that Cuba is in such dire financial straits is because a Soviet style command economy doesn't work.
That being said I don't think the general populace is going to trust the analysis of someone that has such a large stake in the subject to come up with independent analysis. And rightly so.
Posted by: Mike.Hunter ![[TypeKey Profile Page]](http://www.babalublog.com/nav-commenters.gif)
at February 18, 2007 04:39 PM
Embargo opponents like to say that the dissidents are against the embargo. Here's one that doesn't come out against the embargo (he doesn't come out for it either) but he says the blame is on Castro. And by benefitting the US, I'd like to know how having a country that doesn't pay its bills buying a whole bunch of stuff on credit benefits the US?
Posted by: Henry "Conductor" Gomez at February 18, 2007 05:51 PM
A lot of dissidents are against on the grounds that it cuts off a source of revinue for every day Cubans. I believe that the ladies in white are one of those groups. It really doesn't matter who is for it and who is against it anyway. If something is wrong then it's wrong regardless of whether it's popular or not.
Also it's not the governments business to interfear in economic transactions on the basis of the safety of an investment. If American companies can engage in trade with Cuba then it will benefit the economies of both countries. If Cuba doesn't pay it's bills then that risk falls on the companies that do business with it.
If you don't understand how trade and especially tourism with benefit everyday Cubans on the island and U.S. citizens then I suggest that you read a couple of books on basic economics and finance.
Posted by: Mike.Hunter at February 19, 2007 01:22 PM
Miriam Leiva, Cuban dissident
February 7, 2007
"45 years ago the embargo was enacted, yet Fidel Castro will pass away alleging he is in power, he will leave this world as any other sick elderly would. The embargo has suited his purposes of having a foreign enemy; it has served him as a pretext to justify all his wrongdoings domestically and inciting anti-American sentiments and insurgency the world around. Being a clever politician, while demanding an end to the embargo, he really enjoyed it."
"But when trade with the United States stands in the fifth place of Cuba’s commerce, what sense does it have to maintain the embargo? Lifting the embargo means leaving the fable hardliners empty-handed. It would mean opportunities for American enterprises, providing expertise and demonstrating how a person can progress according to self effort without political compromises. It would also enable friendly countries, such as the European Union members, to devise together with the United States more effective means to assist the Cuban people on the path to democracy."
Posted by: Mambi Watch at February 20, 2007 10:06 AM
"fable hardliners" refers to high level Cuban government administrators.
Posted by: Mambi Watch at February 20, 2007 10:09 AM
Also, Miriam Leiva is wife of Oscar Espinosa Chepe.
Posted by: Mambi Watch at February 20, 2007 10:10 AM
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