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Cubanews (ISSN 1073-7715) Is Published Monthly Tion Burdens and Delays on All Its Stakeholders.” by CUBANEWS LLC Vol. 21, No. 2 February 2013 In the News Travel industry is cautiously optimistic Cuban biotech booming on expanded P2P opportunities in Cuba BiotechnologY, pharmaceuticals comprise BY VITO ECHEVARRÍA A third official who attended last year’s show, a $500 million eXport sector .........Page 2 ast March, the New York Times Travel but was absent this time, was Luís Sotolongo Show featured large exhibits by C&T Char- Otero, former director of the San Cristobal trav- Lters and Insight Cuba, along with tourism el agency. He’s reportedly been appointed to Respect in Santiago ministries and travel agencies from Western head Habaguanex SA, which is in charge of run- At summit in Chile, Raúl Castro takes oVer Europe, Latin America, Africa and the Far East. ning Old Havana’s boutique hotels. This year, things were different. The only Mederos gave a short summary of the travel rotating presidencY of CELAC ....Page 4 options Amistur now offers U.S. visitors — Cuba-bound travel agency with a physical pres- namely, politicized tours of various facets of ence at the 2013 show — held Jan. 19 at the Cuban society, like education and healthcare. Political briefs Jacob K. Javitz Convention Center — was Ala- Obama hints at better U.S.-Cuba relations; That’s no surprise, considering that Amistur bama-based International Expeditions, which is part of the government-run Cuban Institute of Contreras Welcomed home ..........Page 5 conducts nature-oriented trips worldwide. Friendship with Peoples (ICAP). Despite Cuba’s muted presence there, Amer- Mederos said his company’s tours — which icans hoping to visit the island still managed to give Americans the chance to interact directly Provinces: Villa Clara fill up a room to review legal travel options. with local Cubans — complies with the “people- Central Cuban proVince’s economY is hit A seminar moderated bY anti-embargo to-people” rules for licensed travel to Cuba set hard bY sugar sector’s decline .....Page 8 activist John McAuliff, chief of the New York- forth by the U.S. Treasury Department’s Office based Fund for Reconciliation and DeVelopment, of Foreign Assets Control (OFAC). brought back two out of three Cuban travel offi- “We have representatives of Amistur in everY Hemingway is watching cials who showed up last year: Eloy Govea, com- province in Cuba,” he said. “Of course, one has Hong Kong-based inVestment groWth fund mercial director of Havanatur, and Eduardo the opportunity to see the beauty of the island.” Mederos, director of Amistur Cuba SA. shoWs strong interest in Cuba ...Page 11 See Travel, page 7 CARICOM cries foul Caribbean rum distillers claim U.S. eXcise- Documents show USAID aimed to create taX rebates Violate WTO rules ...Page 12 ‘illusion of transparency’ in Cuba efforts Havana Charrette BY TRACEY EATON to Write a neW one.” Instead, the contractor .S. officials stressed the importance of Would carrY out a daring plan to set up satellite INTBAU oVersees long-term Vision to pre- Internet connections under the nose of Cuban serVe historic HaVana harbor .....Page 13 secrecY during a 2008 meeting With a UMarYland contractor Who had been cho- state securitY agents. USAID promised to protect the identities of sen to carrY out a neW democracY project in contractors and their associates in and out of Business briefs Cuba, according to a confidential memo. Cuba. “The program is not pressing [and Will ETECSA confirms ALBA-1 fiberoptic cable The project Wasn’t considered classified, hoW- not press] them to disclose netWorks,” said the is noW actiVated for Internet ......Page 14 eVer, because the U.S. AgencY for International memo, Which DAI filed in federal court on Jan. DeVelopment (USAID) Wanted to create the illu- 15 as part of its replY to a $60 million laWsuit sion of transparencY. filed bY the Gross familY in NoVember 2012. Bookshelf DeVelopment AlternatiVes Inc. of Bethesda, The memo stressed the unusual nature of the ‘Immigrant Prince,’ ‘Selling Guantánamo’ Md., Won the USAID contract on Aug. 14, 2008, program: “The project Was not classified be- and quicklY hired Alan Gross, Who Was later and ‘The Great Game in Cuba’ ...Page 15 cause USAID Wanted to send the message that arrested in Cuba While Working on the project. this is a transparent process. Also, a classified DAI Wrote the confidential memo to summa- project imposes significant securitY, documenta- CubaNews (ISSN 1073-7715) is published monthlY tion burdens and delaYs on all its stakeholders.” bY CUBANEWS LLC. © 2013. All rights reserVed. riZe What Was said during a priVate Aug. 26, Annual subscription: $398. Nonprofit organiZations: 2008, meeting With top USAID officials. USAID Wanted no delaYs and Was eager to $198. Printed edition is $100 eXtra. For editorial in- During that meeting, DAI learned that Wash- moVe ahead. The memo said: “This Administra- quires, please call (305) 393-8760, faX Your request ington had “fiVe to seVen different transition tion eXpects immediate results from this pro- to (305) 670-2229 or email [email protected]. plans” for Cuba, and that it Would “not be asked See USAID, page 6 2 CubaNews v February 2013 MEDICINE Cuba seeks to decentralize biotech, pharmaceutical sector BY DOMINGO AMUCHASTEGUI Between 1981 and 1986, Cuba invested $1.8 ed in 66 countries. Joint ventures had been iotechnology and pharmaceuticals now billion to establish its first, and largest, scien- established or were being negotiated with bring Cuba close to $500 million a year tific pole on the outskirts of Havana: the Polo China, Malaysia, India, Russia, Brazil and Bin foreign exchange, second only to Científico del Oeste. Other smaller poles Spain, to name a few. nickel exports. So says Dr. Luís Herrera Mar- have been set up in the provinces of Maya- Nevertheless, securing intellectual proper- tínez, director of Cuba’s Center of Genetic ty rights is half the battle. Breaking into new Engineering and Biotechnology (CIGBC). markets and associating With big biotech Surprising? Not quite. In 2006, the Nobel firms has been — and continues to be — a Prize-winning chemist Robert Huber of Ger- considerable obstacle, due to these multina- many’s Max Planck Institute said Cuba’s deci- LUXNER LARRY tionals’ connections to U.S. markets and laws. sion to promote biotech was “bold but wise … Even so, the biotech sector has taken its and already is beginning to bear fruit.” rightful place in the Cuban economy. By 2007, In 2011, the U.S. journal Nature said Cuba’s said Dr. Agustín Lage Dávila, director of the biotech industry “is the best established com- Molecular Engineering Center (CIM), “Cuba pared to all developing nations.” had created the foundations for a transition to These achievements didn’t just come out of an economy based on knowledge.” the blue. Since the 1964 creation of the Na- The industry has won numerous awards tional Center for Scientific Research (CNIC in Vials of cancer vaccine made by Havana’s CIM. and medals by such institutions as the World Spanish), 54 institutions of higher learning Organization of Intellectual Property, Lloyds have been established, as well as 220 entities beque, Santa Clara, Cienfuegos, Ciego de Register, the World Health OrganiZation dedicated to science and technology. Avila, Sancti Spíritus, Camagüey, Holguín and (WTO) and the United Nations Children’s Cuba boasts more than 20,000 science pro- Santiago de Cuba (see map, facing page). Emergency Fund (UNICEF). fessors at the university level, not to mention By 2006, the results were tangible: 150 Early last year, 600 scientists and execu- 37,500 researchers and technicians and a Cuban biotech and pharmaceutical products tives from 40 countries including the United reserve of nearly 1,200 scientists. had been registered, and 500 patents request- States gathered in Cuba for Biotecnología NEJM on health care in Cuba he prestigious New England Journal of The downside to Cuba’s biotech ‘miracle’ Medicine, in a generally favorable article Ton Cuba, nevertheless warns that “one espite the hype surrounding Cuba’s [President Hugo] Chávez will affect future should not romanticize Cuban health care.” much-vaunted medical and biotech- relations with Venezuela.” D She noted that the budget of Havana’s Dr. Edward W. Campion and Stephen Mor- nology sector, the island’s healthcare rissey, Ph.D., writing in the weekly maga- faces serious shortages which the Castro Latin American School of Medicine (ELAM) zine’s Jan. 24 issue, says that while Cuba’s regime would rather not talk about. is being cut in half, and that the school will “highly structured, prevention-oriented sys- That’s the word from scholar and Latin no longer admit American students. tem has produced positive results” — such as America specialist Elaine Scheye, who runs “At least 65 drugs are either currently no the world’s highest vaccination rates and a life The Scheye Group Ltd. a global advisorY longer available, or are projected to be in expectancy comparable to that of the United service on biotechnology-related issues. severe shortage or become unavailable,” States — “the system is not designed for con- “It is really a confluence of several factors she told ASCE delegates. sumer choice or individual initiatives.” causing this problem, an internal set of “Shortages may be due to medical per- “There is no alternatiVe, priVate-paYer problems as well as external factors. There’s sonnel stealing from hospitals and policlini- health system. Physicians get government no planning or very poor planning, or plan- cas, or selling drugs on the black market. benefits such as housing and food subsidies, ning only when wolves are at the door,” said Many surgeries must be postponed or can- but they are paid only about $20 per month,” the Chicago-based consultant. celled due to lack of sufficient anasthesia.” She mentioned a failure to attract new said the authors, who visited Cuba recently.
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