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China Behind Raúl's Economic Reforms, Says Expert in Chinese Vol. 21, No. 7 July 2013 In the News China behind Raúl’s economic reforms, Reforms announced says expert in Chinese-Cuban relations DeregUlation of state firms to begin; GDP BY VITO ECHEVARRÍA another 1,000 bUses in 2008 — replacing the infamoUs hUmp-shaped bUses Univer- growth forecast downgraded .......Page 4 verage CUbans can now sell hoUses and “camello” apartments to each other, bUdding entre- sally hated by habaneros. There was also a 2006 deal in which Chinese ApreneUrs may offer goods and services Political briefs manUfactUrer Haier sUpplied CUba with 300,000 directly to consUmers — withoUt going throUgh new energy-efficient refrigerators, as part of the GOP tries to restrict travel to CUba; revived the state — and the island’s new immigration Castro regime’s plan to finally rid the island of interest in CUba certified claims ...Page 5 law permits foreign real-estate owners and long- antiqUated, mostly American-made fridges. term renters to obtain renewable visas. “These kinds of trade interactions have been AUstralian academic Adrian Hearn says all accompanied by some pretty intensive dialogUe Corruption on trial these people can thank the Chinese for pUshing with China aboUt how the [CUban] economy can Canadian expert Gregory Biniowsky says President Raúl Castro to reform the economy. develop,” Hearn said. Raúl’s anti-corrUption campaign is good for Speaking May 22 at New York’s CUNY “This has been happening since 1995 when GradUate School, Hearn explained how China Fidel Castro visited Beijing and met Prime foreign investors in long rUn .........Page 6 — along with VenezUela — has become a vital Minister Li Pong, who advised him in no Uncer- economic lifeline for CUba. tain terms the best path for CUba woUld be to Dissidents in D.C. Noting the jUmp in bilateral trade from $314 open Up the economy.” million in 2000 to $2 billion in 2011, he cited Hearn said that while Fidel didn’t act Upon Li Well-known CUban government opponents Havana’s crUmbling transport system as a con- Pong’s advice, things gradUally changed after GUillermo Fariñas, Elizardo Sánchez visit spicUoUs example. In 2005, the CUban govern- Raúl took power in 2008. Washington for first time ...............Page 8 ment pUrchased 400 Chinese-made bUses, and See China, page 2 Jobs website EntrepreneUr starts a website for talented ASCE Miami meeting Aug. 1-3 to feature CUbans looking to emigrate ..........Page 9 record number of Cuba-based scholars BY DOREEN HEMLOCK Armando Nova of the University of Havana’s Provinces Center for the Study of the CUban Economy; Santiago de CUba, home to CUba’s second- ver since the USSR collapsed two decades ago, a groUp of scholars has been meeting Karina Galvez of Convivencia magazine, and largest city, is among the most important Eevery sUmmer in Miami to discUss the José LUís Leyva CrUz, a compUter science pro- reality in CUba and what the Castro government fessor at the University of Camagüey. of island’s 15 provinces ................Page 10 Also expected from the island are Lenier Gon- might do to revive its troUbled economy. zález and Roberto Viega, co-editors of the This year’s conference promises to be the Catholic pUblication independ- License to travel liveliest yet. Migration reform means CUbans no Espacio Laical; TreasUry’s OFAC revokes some TSP CUba ent lawyers Laritza Diversent and René Gómez longer need permission from their own govern- Manzano, as well as physicist and political acti- licenses, aUthorizes others ..........Page 13 ment to travel abroad, so more CUba-based vist Antonio Rodiles, coordinator of the Estado experts than ever will attend the event, organ- de SATS forUm, among others. ized by the Washington-based Association for Some 100 people will be at ASCE’s 23rd annU- Bookshelf the Study of the CUban Economy (ASCE). al meeting, whose theme is “Reforming CUba?” ‘CUban Revelations,’ ‘CUba: Palace of Salt’ “This is going to inject a different dynamic Participants will discUss sUch topics as gov- and ‘Father of CUban Ballet’ .......Page 14 into the ASCE meeting — different in ages, ernment policy changes, cooperatives, bloggers races, genders and disciplines. It will also be and the Internet, self-employment, toUrism and more diverse in terms of the ideological CUban-VenezUelan relations since the death of CubaNews (ISSN 1073-7715) is pUblished monthly by CUBANEWS LLC. © 2013. All rights reserved. approach of participants,” said Ted Henken, a VenezUelan President Hugo Chávez. AnnUal sUbscription: $398. Nonprofit organizations: sociologist who took over the helm at ASCE last Keynote speaker is George J. Borjas, profes- $198. Printed edition is $100 extra. For editorial in- year and continUes to broaden its reach. sor of economic and social policy at Harvard qUires, please call (305) 393-8760, fax yoUr reqUest At least half a dozen CUban residents are ex- University’s Kennedy School and a specialist in to (305) 670-2229 or email [email protected]. pected at ASCE’s Aug. 1-3 meeting, including See ASCE, page 3 2 CubaNews v July 2013 tions at the University of Sydney’s China bUt coUld become so.” China — FROM PAGE 1 StUdies Center, Hearn is also chair of the The other area is CUba creating wholesale Latin American StUdies Association (LASA) sUpply markets for self-employed vendors, “I think an important moment was in section for Asia and the Americas. which has already begUn happening. Hearn November 2010, when Ricardo Alarcón visit- In addition, he managed a project for the said China coUld become a top soUrce for at ed Beijing, and explicitly said, ‘I think the AUstralian Agency for International Develop- least some sUpplies these vendors will need. Chinese model has great relevance for what ment on AUstralia-CUba cooperation in Asia- “Investments from Brazil, China and the we’re trying to do in CUba,’” he recalled. Pacific health systems. port of Mariel are important in this regard,” “He’s not the first person to say that. Raúl In 2008, Florida International University he said. “It signals a greater integration — the Castro, in his visits awarded him the Díaz-Ayala prize for his possibility of bringing in intermediate goods [to China] in 1997, stUdy of Chinese-CUban historical ties. from overseas.” 2005 and 2012, was Hearn, who spent three years in CUba (he’s thinking along the CHINESE RESTAURANTS OFFER A LESSON also lived in China, Mexico and Senegal), exa- same lines, and for As Hearn pointed oUt, CUba Under Raúl has mined how Havana’s Chinatown — especially that reason focUsed restaUrants — helped open Up the economy. his visits on reform- gradUally followed China’s economic advice — partly becaUse of Beijing’s growing role in “I interviewed nine restaUrant owners ing the labor market between 2011 and 2013, and most of them and creating hybrid the island’s economy. “If yoU look at the investment nUmbers, reported that they made between $3,000 and strUctUres and state- $5,000 a day,” he said. “This is significant owned enterprises there is $5 billion of Chinese investment in CUba, and $4.5 billion of that is in oil. We’re money — more than the pUblic sector. that are able to incor- “Consider that there are two kinds of porate to a greater ex- really looking at the refinery in CienfUegos, Havana’s Chinatown and probably exploration activities [off CUban restaUrants: the ones at Callejón Chino, set Up tent private activity.” originally by the GrUpo Promotor de Barrio The “Chinese model“ Alarcón referred to waters],” he said, referring to the China National PetroleUm Corp.’s 2011 deal to ex- Chino and which since then have come Under consists of economic liberalization accompa- the control of the Office of the Historian” — nied by continUed political hegemony over pand prodUction at the CienfUegos refinery Hearn foresees two areas where the which, he said, are “very meticUloUs” aboUt the local popUlation — political stability still collecting taxes. being a priority for Raúl and his brother. Chinese will play a direct role in CUba’s eco- nomic reforms. Hearn apparently knows what he’s talking TWO PATTERNS OF DOING BUSINESS aboUt. “China obvioUsly coUld be an important A fUtUre fellow of the AUstralian Research soUrce of the credits that CUban entrepre- Then there are those restaUrants which are CoUncil and coordinator of international rela- neUrs need,” he said. That’s not yet the case, linked to traditional Chinese associations. “These are not sUbject to the same taxes as those [restaUrants] connected to the Office of the Historian. These are directly below the aUthority of the Ministry of JUstice and they Cuba says 124 cooperatives in operation have to sUbmit their profits to them. The dif- Uba annoUnced July 1 that the first state entities and bUsinesses, set prices in ference between the two show how small Cnon-farm cooperatives since the 1959 cases where they are not fixed by the state, bUsinesses are developing throUghoUt CUba. revolution are now Up and rUnning. operate on a democratic basis, divide profit “Those sUbject to the Office of the “Starting today, 124 cooperatives began as they see fit and receive better tax treat- Historian’s taxes are more transparent. They to function on an experimental basis in di- ment than individUally owned bUsinesses, are able to show their books more openly. verse sectors of the economy sUch as con- Under a decree pUblished in December. BUt the troUble is, taxes are so high, they are strUction, transportation, garbage collec- The law allows for an Unlimited nUmber barely viable. They’re hardly able to fUnction, tion and prodUce markets,” said Granma, of members and Use of contracted employ- to hire. This has been a real disaster.” the Communist Party daily.
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