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Cuba Experts Say Short-Term Prospects for Foreign Investment Remain

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Cuba Experts Say Short-Term Prospects for Foreign Investment Remain Vol. 18, No. 4 April 2010 www.cubanews.com In the News Foundations bankroll U.S. organizations that favor lifting embargo against Cuba Revamping USAID Controversial Cuba democracy programs BY ANA RADELAT the foundation solely on our Cuba effort.” However, Panaritis said an inability to lift the to undergo overhaul ......................Page 2 ctivists and academics lobbying for an end to U.S. sanctions against Cuba depend on travel ban might prompt her organization “to Aa handful of private foundations that give take a more flexible approach” with its funding Quake preparation millions of dollars in grants every year. this year. One result: less emphasis on projects For 1st time, Cuba considers possibility of For years, these foundations have bankrolled seeking an end to the travel ban and more on cultural and academic exchanges. major earthquake in Oriente ........Page 4 liberal groups hoping to topple the embargo — or at the very least wear down U.S. sanctions “We might turn towards funding organiza- against the Castro regime. These programs in- tions that travel to Cuba or arrange travel to Ladies in White ject life into the embargo debate, even if they Cuba [by groups that can already get Treasury Cuba’s “Damas en Blanco” revel in new- don’t result in any substantial policy changes. Department licenses for such travel],” Panaritis Lately the focus has been on lifting the ban on told us, though she stressed that her foundation found international spotlight ........Page 6 U.S. travel to Cuba. But an unresponsive White is still committed to lifting the travel ban. House and eroded support in Congress for let- Anna Kuhn, executive director of the Wash- SPECIAL REPORT ting all Americans travel freely to Cuba may ington-based Arca Foundation, said her organi- zation’s board will consider several new propos- Cuba’s extensive, neglected road network prompt these foundations to shift priorities. Andrea Panaritis is executive director of the als in June, with an eye on Capitol Hill. “What’s desperately needs fixing ...............Page 8 New York-based Christopher Reynolds Founda- happening in Congress in terms of the travel bill tion. In March 2001, according to its website, will influence our decisions,” she said. Another dying dissident? CRF “decided to phase out all other domestic Kuhn told CubaNews that for years, “Arca has grantmaking and concentrate the resources of See Foundations, page 2 Family of imprisoned activist Ariel Sigler says he’s rotting in prison ............Page 9 Cuba experts say short-term prospects Worst-case scenario University of Miami panel stages a mock for foreign investment remain gloomy political crisis in Cuba .................Page 11 BY LARRY LUXNER Out of 82 countries polled by the EIU, which Newsmakers orty-five executives braved torrential rains looks at 91 separate variables, the Caribbean and flooding Mar. 29 to attend a midtown island ranked 79th in the world with a score of Radical veteran lawyer Leonard Weinglass F Manhattan conference on the potential for 4.27 on a 0-10 scale. That was also the worst of defends the ‘Cuban Five’ ............Page 12 U.S. investment in Cuba — a subject that seems the 12 Latin American countries surveyed (the to have been put on the back burner in the wake best was Chile, with a score of 7.75). In EIU’s 2010-14 forecast, Cuba scored slight- Business briefs of President Raúl Castro’s sudden stepped-up aggression against dissidents in Havana. ly better at 4.61, meaning that in five years, Ven- Lawmaker tries to limit Florida exports to Sponsored by the New York-based Americas ezuela — not Cuba — will rank on the bottom. “The largest factor influencing Cuba’s poor Cuba; tourism arrivals down ......Page 14 Society/Council of the Americas and broadcast online, the event was moderated by Christopher business environment is the small size of oppor- Sabatini, editor-in-chief of Americas Quarterly. tunities for investors, given the overwhelming Commodities It featured five panelists: Anna Szterenfeld, dominance of the state in all economic activi- ties,” Szterenfeld told her audience. State-run corporation will replace Cuba’s editor of the Economist Intelligence Unit’s Busi- ness Latin America; Juan A.B. Belt, Latin Amer- “In some categories, Cuba actually does bet- struggling Sugar Ministry ..........Page 15 ica/Caribbean director at Chemonics Interna- ter than some other Latin American countries, tional; Maria Werlau of the Free Society Project; for example, in the labor category, where Cuba CubaNews (ISSN 1073-7715) is published monthly economist Rafael Romeu of the IMF and Miami ranks 3rd in the region. Unfortunately, we don’t by Luxner News Inc. © 2010. All rights reserved. business consultant Teo Babún. see a whole lot of opportunities in the next five Subscriptions: $429 for one year, $800 for two years. If the EIU’s latest report on Latin America is years for an expansion of those areas in which For editorial inquires, please call (301) 452-1105 foreign investment will be allowed.” or send an e-mail to: [email protected]. any indication, prospects for foreign investment definitely aren’t looking up for Cuba. See Investment, page 3 2 CubaNews ❖ April 2010 ical cash on the other side of the debate. seminar was titled “Rapprochement with Foundations — FROM PAGE 1 “Somehow, the anti-embargo message is Cuba, Good for Tampa Bay, Good for Florida, supported education work and policy advoca- very difficult to get through,” said Anya Lan- Good for America.” cy to promote change in U.S. policy toward dau, research director at the New America Fox, a Cuban-American who failed in his Cuba,” and a “more normalized relationship.” Foundation, which received a $50,000 Arca 2006 bid to unseat Rep. Kathy Castor in the She said Arca grantees have eroded public grant and $100,000 from CRF last year. race for Florida’s 11th Congressional District, support for the embargo while influencing But a new, very wealthy benefactor has said the work funded by foundations is valu- “elites in the media” including Washington come to the aid of the anti-embargo groups. able, but that more political work is needed to Post columnists Eugene Robinson and Atlantic Philanthropies, founded by Irish- change U.S. policy. George Will — to criticize U.S. policy. American billionaire businessman Chuck “There are one million Cuban-Americans Mavis Anderson, a Cuba expert at Latin Feeney, gave CRF $500,000 last year “to sup- who feel like I do,” he said. “Just think if they America Working Group, said funding from foundations has helped her organization “edu- ANTI-EMBARGO GROUPS RECEIVING FOUNDATION GRANTS IN 2009 cate” lawmakers and the public about the flaws in U.S. policy toward Cuba. LAWG, Alliance for Responsible Cuba Policy: $25,000 CRF which received a $35,000 Arca grant and Center for Democracy in the Americas: $127,000 CRF, $50,000 Arca $85,000 from CRF last year, has long advocat- Center for International Policy: $100,000 Ford Foundation, $55,000 CRF ed for an end to the travel ban. Inter-American Dialogue: $48,200 CRF But a recent poll BBC-Harris poll reveals weak public support for change in Cuba poli- Latin America Working Group: $85,000 CRF, $35,000 Arca cy. In that survey, issued in early March, 40% Lexington Institute: $70,000 Ford, $50,000 CRF of respondents said the embargo should stay National Security Archive: $50,000 Ford Foundation, $45,000 CRF, $75,000 Arca in place, while 36% said it should go. And 49% New America Foundation: $100,000 CRF, $50,000 Arca of those polled said they wouldn’t go to Cuba Washington Office on Latin America: $70,000 CRF, $40,000 Arca if allowed, while only 38% said they would. Yet there’s a bright spot in the poll for those port policy and grass-roots organizations each sent just $1 to a PAC.” involved in Cuba policy: 75% of respondents working to change U.S.-Cuba policy.” Nelson Valdes, a retired sociology profes- said Cuba is important to the United States. In 2008, Atlantic Philanthropies gave the sor at the University of New Mexico, received EMBARGO FOES AT A DISADVANTAGE Center for Democracy in the Americas a $150,000 grant from the Ford Foundation a $300,000 for a Freedom to Travel initiative few years ago to help set up his Cuba-L web- Anti-embargo advocates receive much less and other Cuba projects, and $225,000 to the site and update it continuously with the latest money than the millions of dollars the U.S. New America Foundation. It spent millions of news about Cuba in English and Spanish. Agency for International Development and dollars more on Cuban medical, scientific, But since his grant ran out, he’s been work- the State Department hand out to groups that humanitarian and film projects. ing for free, with help from volunteers. Valdes support the status quo on Cuba. views Cuba-L as “an archive for the future” “That is a real disadvantage for us,” said RECESSION HAS BEEN UNKIND TO FOUNDATIONS and wishes foundations funding Cuba pro- LAWG’s Anderson. In fact, LAWG and other But the charity declined to answer ques- jects paid more attention to academic work. non-profits seeking an end to the embargo are “I think they should move away from trying bound by federal restrictions on their political tions about future funding. Ahadi Levine, who deals with such issues at Atlantic’s New York to prescribe U.S. policy and do more to fund activities — although their opponents accuse analysis and information,” he said. “Most peo- them of violating that by lobbying Congress, office, did not return our calls, and it’s unclear if the philanthropy is committed to Cuba ple who are involved in the debate on Cuba — and LAWG’s own website boasts of its “rela- on both sides — don’t even know the facts.
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