Cuba – Europe Dialogues No. 4 / 2007

Quarterly bulletin on relations between Cubans and Europeans

Trade, tourism Are Cooperation and Investment Fidel Castro Inc. and and investment issue Means of Collaborating Regime Survival in Cuba with Cuban Dictatorship? Maria C. Werlau 6 Matías Jove 2 Cuba Is Never Alone Pavel Res 11

Fidel Castro Not Paying His Bills Trade Relations between Cuba Etecsa – Telecom Luis Losada Pescador 15 and the Czech Republic A Marriage of Convenience Will Oil Bring Democracy Dr. Traian Urban 21 Juan González Febles 26 to Cuba? Cuba and Spain – Relations Michael Moore’s Documentary Leopoldo Fornés-Bonavía Dolz 18 and Contradictions to be Censored in Cuba Oscar Espinosa Chepe 24 Dr. Darsi Ferrer 28

Cooperation between Cuban Cuban Workers in ihe People that Read, and Slovakian Experts Shipyard of Curacao Can’t do Wrong Ivana Kullová 29 Clara Olivia Ocampo de Álvarez Ellen Weber and Folkje Lips 36 Excerpts from the Book de La Campa 33 Cuba, Tourism and Solidarity “Cuban Economy” 31 Ricardo Carreras Lario 37 photo by photo L. Kotek Are Cooperation and Investment Means of Collaborating with Cuban Dictatorship? Matías Jove

hen the Spanish government Cuba has been receiving help since the tom of the Straits of Florida and more announced that Spain and Cuba beginning of Castro’s dictatorship. than 300 prisoners of conscience con- Wwere seeking to cooperate, several tinue to waste away in jails. moral dilemmas as to the cooperation Cuba, which once used to be a boom- with the island, to the investment con- ing and prosperous country, contin- Before many of these “movers of ditions and to the application or not ues to be sunk in misery and the situ- change” were actually born, Cuba of the human rights clause appeared received subsidies from the Soviet back on the conference table. Union the amount of which was ten times higher than the Marshall Plan. Several days later, one of the Span- ... investments are Without any doubt, a big part of the ish dailies wrote that the Ministry of approved by a regime money was used to consolidate the Foreign Affairs was looking for a way power of an economically inefficient of cancelling the debt of the Cuban which systematically regime, to fund guerrillas in other regime which has reached more than violates human rights Latin American and African coun- 1.7 billion Euros. tries, and to perpetuate the misery of and which imposes rules the people on the island. Today, other The impending cooperation, which is that in the businessmen’s countries like Venezuela provide the to be launched without being connect- regime of the Castro brothers with ed to the issue of human rights, shows home countries that 90,000 barrels of oil a day at prefer- a tendency of identifying the interests would be either illegal ential prices along with other types of Spain with the interests of the busi- of help. Yet, according to official data, nessmen who have their enterprises or socially irresponsible. the Cuban people keep on struggling based on the island. Those who have to get by in pitiful conditions. an economic stake in Cuba tend to argue that changes on the island need The most questionable part of the to be carried out by encouraging aid ation of human rights, which is still issue we are discussing might be the and business relations. They say that far from improving, is unanimously character of the investments, because this approach will finally help Cuba condemned by international organi- the investments are approved by a find its way towards prosperity and zations. Currently, there is evidence regime which systematically violates will bring democratic changes. that more than 8,000 people have human rights and which imposes been shot dead, victims of extrajudi- rules that in the businessmen’s home However, the advocates of this cial assassinations, died in prisons or countries that would be either illegal approach do not usually explain the “disappeared” because of their political or socially irresponsible. Although the conditions that the Cuban government philosophy. Furthermore, the remains access of foreigners – and of Cuban requires both for investments and of around 10,000 people who have citizens – to the investments is a rela-

 cooperation, and are forgetting that tried to escape are resting at the bot- tively recent phenomenon, the model   is well-established and if Cuba, enjoy- EDITORIAL ing a new economic spring encouraged by revenues of Venezuelan origin, does not impede it, the model will remain as it is for a long time. According to official data, in the past ten years, Cuba has accepted more than 400 eco- When discussing politics, many people say, that money talks. In this issue we nomic associations with foreign capi- offer you different views on how the economic relations between Cuba and Euro- tal, and Spain is the second highest pean Union are shaping its policies and dealings with the issue of human rights. investor after Venezuela. Cuba has never been on its own, points out Pavel Res in an overview of the prob- During the first years of the commu- lem, and after the collapse of the Soviet subsidies, it saved Castro from opening nist revolution, foreign companies and reforming more of its economy. Nowadays China and Venezuela are taking were expropriated and all services over and the European companies are desperately trying to hold on to the island were nationalized. Private ownership with hopes of huge opportunities if the regime changes. As Matías Jove explains, was abolished. It was only after the this seldom goes without breaching international labor rules and rights of Cuban fall of the Soviet Bloc, which used to employees, who are being exploited by the joint ventures. According to the Span- supply Cuba economic aid that was ish journalist Luis Losada Pescador’s article, the efforts to have its foot in Cuba ten times greater than the Marshall have led Spain so far that it considers forgiving Cuba its debt. Plan, that Cuban authorities were forced to allow a certain amount of Cuba has neither been on its own, nor poor. Maria Werlau’s article documents foreign investments. During the des- the fortune that Raúl Castro will inherit if his brother dies, which includes an perate economic situation, remem- extended network of international companies as well as properties in various EU bered as the “special period”, the Gov- countries. If Cuba sells its oil reserves well, it may even become a rich country, ernment decided to legalize not only writes Leopoldo Fornés-Bonavía Dolz. the possession of convertible currency – which used to be penalized even by “Tourism, and foreign investment can be factors for progress,” writes Oscar jail – but also some sorts of private Espinosa Chepe, a Cuban economist and former political prisoner, in his article, economic activities of “self-employers”. but “when economic relations are only marked by the anxieties of profits they And in 1995, these measures were fol- become miserable exercises, leaving behind the principles accepted by govern- lowed by the legalization of regulated ments in their own countries and in international agreements.” This is the crux foreign investment established by Law of the dilemma that every country has to solve. In some cases, like the Neth- No. 77. The Government succumbed erlands or the Czech Republic, as shown by Traian Urban, trade with Cuba has to the pressure of the economic cir- continued despite the strong concerns about the human rights issue. And yet in cumstance and yet even though there some cases there are companies like Telecom Italia that not only invest in Cuba, was a need for opening, all of these but help the regime repress the people, writes independent Cuban journalists activities had to be strictly controlled Juan González Febles. by the communist regime in order to not to be distorted. In this sense, the We are also pleased to include articles from the EU-Cuba NGO network. People in Preamble of the aforementioned Law Peril from Slovakia has compiled an interesting book, which sums up the findings No. 77 was sincere: from their workshops where Cubans gave their views of possible economic reforms. The Dutch non-profit IKV Pax Cristi and the Spanish NGO Solidaridad Espanola “In today‘s world, without the existence con Cuba explain how to travel with responsibility. While, Ocampo describes in of the socialist bloc, with a globalizing another optimistic piece how Cuba Futuro and others have succeeded in ending world economy and strong hegemonis- the exploitation of Cuban workers in the Dutch Antilles. tic tendencies in the economic, political 4/2007

and military fields, Cuba, in order to UES G O preserve its accomplishments despite L DIA

the fierce blockade to which it is sub- E P jected; lacking capital, certain kinds Nikola Horejs EURO Editor - of technology and often markets and A B U in need of restructuring its industry, C can benefit from foreign investment were familiar with the situation on Workers in Cuba do not have the on the basis of the strictest respect the island, this year, they were offi- right to directly choose their job. for national independence and sover- cially defined in the “Regulations Con- eignty (...)” cerning Relations with Foreign Per- The labour regime established in the sonnel in the Tourism System”. Apart aforementioned Law No. 77 on foreign The system of foreign investment was from stressing that relations with for- investments in Cuba involves “employ- established in order to avoid that eigners shall be limited to those that ing entities” that are charged with the this opening imply a loss of political are strictly necessary, this text pro- administration of labour force. For- control over a strongly centralized vides for a number of commitments eign businessmen may not directly economy. In this way, the State reas- which include, for instance, the duty hire their own employees and people serted its role as the main protago- to “maintain permanent vigilance may not find their work alone, but nist and would be present throughout against all acts or attitudes damag- both parties have to do so through the entire investment process. The ing to the interests of the State”, to these employing entities. This measure State would be involved in found- “communicate immediately to the strengthens the Government’s control ing businesses and in hiring work- proper authorities any illicit activi- over citizens and makes foreign enter- ers, and would impose the rules for ties or actions that could undermine prises feel exonerated of their respon- cooperation. the dignity, security, and principles of sibility for what has become consid- our Revolution”, or to “be careful and ered as a kind of modern slavery. Since the regime does not want to lose scrupulously truthful in the reports control over the economy, the compa- submitted concerning ones’ work and According to the official Granma news- nies that wish to invest in Cuba may the work of others”. paper, those who wish to have a career not do so directly. They have to chan- in foreign sector must be “eligible”. In nel their investments through mixed With these rules, people working in order to get a job, one has to be a enterprises they jointly create with tourism actually become agents of the member of mass organizations, has the Cuban government. The share Cuban intelligence service via foreign to be a faultless revolutionist, shall capital of these companies is divided companies. Such collaboration with not be cause for any concern and most between the State – which provides the State Security and spying on peo- importantly, he or she has to be rec- the estate and infrastructure – and ple could once again be seen one year ommended by Government authorities. the foreign company, which provides ago in the case of Oswaldo Payá. The Those who are not fervent supporters liquidity and know-how. Nevertheless, famous opponent of Fidel Castro dis- of the Government have to forge their this type of control is not limited only covered a bugging device in his house, credentials by means of bribes or oth- to the foundations but accompanies which had been installed by a “mixed er methods, otherwise they will not the whole commercial relation, actu- company” with Italian capital. Oswal- be allowed to work for any foreign ally turning the companies into part- do denounced it and several days lat- company. However, the Government ners and collaborators of Fidel Castro. er, similar devices were discovered in has responded to this option by issu- houses of other Cuban opponents and ing a decision that in order to preserve Due to this collaboration, the com- democrats. their job, people shall constantly main- panies are obliged to allow con- tain their “eligibility” status, or may stant espionage and investigations of However, apart from supervision and lose their job at any time. their activities and of the activities spying, there are other phenomena of their clients, the latter being the related to the people employed by Cuban workers are to be paid sala- main cause for moral concern. In this these companies and these facts draw ries in foreign currency and the Gov- way, foreign companies which invest attention of international experts, ernment may withhold as much as in tourism have to sign a contract because they prove that international 90 per cent. which reads that the State Security (i.e. agreements are systematically broken Cuban political police) has the preroga- and that labour rights of the employ- In Cuba, workers receive their money tive of carrying out search in rooms of ees are violated from the very begin- through state employment agencies. all guests without previously having ning. Let` s now have a look at sev- Every month, foreign companies pay to ask for permission. eral points in which the mixed com- the agencies between 800 and 1500 panies violate the conventions of the dollars per every Cuban employee. Although conditions of this type were International Labour Organization However, the workers receive an aver-

 always taken for granted by all who that Cuba signed: age 250 Cuban pesos per month, which   is equivalent to 10 euros. Many inves- Workers in Cuba have no right to activities have become fully controlled tors argue that Cuba does not dif- freely form trade unions, to call by the State. fer from other developing countries, strikes, to demand better working where people earn one dollar a day conditions, to criticize labour stand- Workers in Cuba are forced to watch and have to struggle with their eve- ards or to complain about their their colleagues and to report any ryday needs. And they also claim that superiors. activity considered to be contrary to workers in tourism are the luckiest, the orientation of the Party. because there is actually something The official Cuban union CTC (Central they get. However, in Cuba, this kind de Trabajadores de Cuba – Cuban Work- It is a common practice that at every of cooperation implies direct funding ers` Trade Union Central) is controlled site – even in foreign enterprises – a of a totalitarian Government at the by the Communist Party. All workers supporter of the Party is placed and is expense of the employees and their must pertain to the CTC and pay the charged with supervising suspicious real salaries. established fees. All efforts by workers colleagues. By doing this, the Gov- to form independent organizations are ernment breaks the article 3.2 of the Workers in Cuba have no right to considered illegal and prosecutable; Convention No. 87 (on freedom of asso- choose where they will work, what the workers are harassed or may even ciation and protection of the right to they will do and have no say in how be expelled from work (violation of organize convention), which reads that much they will be paid. the Convention No. 87 of the ILO). “the public authorities shall refrain from any interference which would In order to start a job, workers have The majority of workers in Cuba restrict this right or impede the law- to sign a contract where one of the have no right to start their own ful exercise thereof.” main provisions reads that they will business. be committed to support the Commu- Considering the above, foreign compa- nist Party and everything that the The initiative of private enterprises nies are simply forced to invest on the Party stands for. Those who do not appeared in the communist Cuba in island in the regime of active collabo- agree to the rules are excluded, and the form of “self-employers”, however, ration with a totalitarian Government, this is a violation of the Convention the economic recovery of the island violating the very basic rights of their No. 111 of the ILO. has led to new limitations and their employees, and this is an important photo: Miguel photo: Gil

4/2007 UES G O L DIA

E P EURO - A B U C Reconstruction of ain house Havana fundedReconstruction by of Andaluciathe government autonomous cause for moral concern. The invest- that the investments have a real and in the future, such approach might ments in Cuba, as they are currently positive impact on the lives of all bring a great deal of better and more organized and realized, actually bring Cuban people. responsible benefits. no benefit for Cuban people but for the regime which is the only one to Speaking about corporate social Bibliography: enjoy it. responsibility, we may refer to the — Informe Pax Christi “La Unión Euro- Arcos Principles which were elabo- pea y Cuba: ¿solidaridad o complici- Yet considering this bleak prospect, it rated by the Cuban dissident Gustavo dad?, Holanda, 2000 should be stressed that what Cuba Arcos and are nothing else but a local — Montaner, C.A. “Viaje al corazón needs is not isolation. Cuban people adaptation of the Sullivan, MacBride, de Cuba”. Plaza y Janés, Barcelo- need help in form of an economic Slepak or Miller Principles, that were na, 1999 activity which would gradually pre- used to combat racial, religious and — Mesa-Lago, C. “Problemas sociales y pare the conditions for market econ- political discrimination and worked económicos en Cuba durante la cri- omy and which would help consoli- as codes of conduct for foreign inves- sis y recuperación”. CEPAL, 2005. date a stable middle class that would tors in South Africa, Ireland, the Sovi- play the main role in the transition et Union and in the People’s Republic towards democracy. There is a need to of China. These principles required Matías Jove is the executive director of the come up with systems which would companies to commit themselves to Spanish Association Cuba in Transition. guarantee that the investments in specific rules and to undergo social Cuba are made with respect to the audit that would evaluate the degree rights of workers, as they would be to which the principles are being met. made in the countries of origin, and This may be a good way to begin and

Fidel Castro Inc. and Regime Survival in Cuba Maria C. Werlau

frequently overlooked, yet criti- Background First Secretary of the Communist Party, cal, aspect to analyze the pros- and Commander in Chief of the Armed Apects for regime survival after Fidel Fidel Castro has been in power since Forces. During his entire tenure his Castro’s final demise has to do with January 1, 1959 and had been the long- brother and designated successor, Raúl, the extra-official global business and est serving head of state for some time has been head of Cuba’s Armed Forces financial conglomerate under his con- before he delegated his functions to and his principal ally. trol. Former regime insiders available Raúl and six top officials, to recover for comment ignore what plans are in from what was described as surgery For almost five decades the Cuban econ- order, but all agree that this matter to correct intestinal bleeding, on July omy has been under strict socialist cen- is ever present in the minds of Cuba’s 31, 2006. Currently, Fidel still has the tral planning. The state is sole employer

 power elite. titles of President, Head of Government, and owner of all resources; ordinary   citizens are banned from engaging in his personal use or as gifts to the rul- Hundreds of such firms exist inside and most independent economic activity. ing elite, diplomats in Cuba, and VIP outside Cuba and most are involved The underground economy is huge, but foreign visitors. in joint ventures or other business steep fines or prison and confiscation of arrangements with foreign interests. goods are routine. The vast wealth under Fidel’s command Entities within the business conglom- may well exceed our wildest guess. erate are also said to launder drug In 1993 the government implemented Forbes just took into account a small monies. The secret foreign operations some reforms to alleviate severe eco- fraction of enterprises within a gigan- are typically represented as belonging nomic crisis after the end of massive tic international network of enterprises to Cuban nationals or foreign lawyers Soviet support with the fall of Com- and financial institutions that, accord- or other intermediaries receiving pay- munism in the former USSR. The dollar ing to numerous high-ranking defec- ment for these services. The “owners” was legalized, limited self-employment tors, are under the Castro brothers’ are typically given juicy compensation was allowed and joint ventures with control. Huge inventories of assets and packages and a lavish lifestyle as long foreign capital were authorized in sec- real estate holdings all over the world as Castro is guaranteed a designated tors such as tourism, telecommunica- are also part of the holdings. share and leakage remains within cer- tions, and mining. Some foreign invest- tain bounds. Some of these companies ment, the growth of foreign tourism Fidel’s accounts are located in banks operating overseas are known to use and a large influx of remittances from in Switzerland, Grand Cayman, London, “imported” Cuban workers paid mini- abroad generated a relative economic Lichtenstein, and Panama. They are mal salaries and kept secluded from recovery. That, together with huge sub- replenished primarily in hard curren- the societies in which they work, under sidies from Chavez’s Venezuela in recent cy with: 1.) assigned percentages from the strict vigilance of Cuban securi- years has prompted a rolling back of tourism, remittances, and revenues of ty agents preventing defections, their many of the reforms. businesses inside and outside Cuba, 2.) families hostage on the island. earnings of Cubans employed overseas What is Fidel, Inc.? under the control of the Cuban state, Spain hosts a large number of these 3.) the sale of Cuban state assets to firms. Some are said to be managed In Communist Cuba, only designated foreigners, 4.) the sale of Cuban art, or to belong, in whole or in part, to a top government officials may accu- artifacts, jewelry, antiques, and other growing number of sons and daughters mulate wealth. But, even those with- valuables confiscated by the state, and of high-ranking members of Cuba’s rul- in the Castro brothers’ tightest circle 5.) revenues from drug trafficking and ing elite, including two of Raúl’s daugh- are subject to constant monitoring criminal activities perpetrated by sub- ters and a son of Ché Guevara. by the intelligence apparatus. Despite versive or terrorist groups. Raúl and their privileges, they must stay within his late wife are also reported to have Many of the foreign enterprises defec- certain bounds. In essence, for almost accounts in Swiss banks since the ear- tors have reported on have been listed five decades, Fidel has reigned supreme ly 1960s. by the U.S. Treasury Department as over one of the world’s most closed blocked entities of the Cuban govern- economies. His brother is his desig- The Corporate Conglomerate ment due to the economic embargo 2. nated heir. Aside from Spain, many are located in The “sociedad anónima” (S.A.) is Cuba’s Panama, but others are scattered all The Comandante’s Reserves unique version of a capitalist enter- over Latin American and Europe, in prise. These entities mirror the busi- Grand Cayman, and as far as Japan, The “Comandante‘s reserves“ are an ness activities of private firms in free India, South Africa, and Malta. integrated system of overseas bank market societies. But, the companies accounts and enterprises together formed in or by Cuba are not subject to A high-ranking diplomat reports that with firms in Cuba and an on-island financial disclosure, their real owners Cuba uses the overseas companies reserve of cars, buses, trucks, tractors, are unknown, and their managers are as collateral for hard currency loans 4/2007

repair parts, gasoline, medicine, medi- individuals designated by the govern- obtained by state entities from Europe- UES G O cal equipment, food, clothing, construc- ment. They enjoy rare advantages – the an financial institutions. This explains L DIA

tion materials, appliances, and house- exploitation and use of the resources, the otherwise perplexing huge short- E P hold and luxury goods. Historically, both capital and human, of an entire term loans from foreign creditors, on EURO - only Fidel has been able to order dis- nation as well as total freedom from the order of around US$1.6 billion a A B U pensing of this domestic reserve – for oversight and taxation. year in short term loans, mostly from C Europe. In default on its external debt Companies located in Europe run by ly dedicated to tourism and the for- since 1986 and with its official econo- Cuba’s Ministry of Interior under eign sector and are primarily staffed my in a wretched state, Cuba is tech- the holding company CIMEX by military personnel, in active duty nically not creditworthy. One wonders or retired. The corporations build and what risk related issues would affect Partial List: manage hotels, operate restaurants these collaterals if the regime collapses Acemex Holding (Lietchenstein) and travel agencies, provide all air unexpectedly. AngloCaribbean Shipping Co. (London) transportation to the tourism industry Cariberia (Spain) and foreign sector, operate free trade Private Financing to Cuba: Cotei (Milan, Italy) zones, build real estate for use by for- As of March 2007 Coprova (Paris, France) eigners, handle agribusinesses, oper- Crymsa (Madrid, Spain) ate hundreds of hard currency sales’ Lenders (by country) U.S. dollars stores, and search for sunken treas- France 440 mil. Dalvest (Genoa, Switzerland) ures. Among its firms are a tobacco Spain 326 mil. Dicesa, S.A. (Madrid, Spain) * and rum distributor, an enterprise Basque Country (Spain)3 255 mil. Germany 216 mil. Partial list provided by former Cuban specializing in land concessions relat- Netherlands 182 mil. intelligence officer. All except those ed to the foreign sector, and a chain Italy 79 mil. marked * are also listed by the U.S. of automobile repair shops. Finally, its Japan 79 mil. Treasury Department as blocked entities División Financiera recycles and rein- United Kingdom 22 mil. or „Specially Designated Nationals.“(See vests income generated by the GAESA Sweden 14 mil. note 2.) network. Switzerland 9 mil. Belgium 6 mil. CIMEX is a huge holding of diversified Drug Trafficking and Portugal 4 mil. enterprises with annual reported rev- Total European Criminal Activities 1.632 bil. Financing enues of at least US$1 billion. In Cuba, Financing of it owns hundreds of store chains sell- In the 1970s Fidel is said to have been 728 mil. Undisclosed Origin ing to the public only in hard currency persuaded of the benefits of cooperat- Total Foreign Private – including gas stations, video rental ing with international drug traffick- 2.360 bil. Financing stores, and food outlets. Its subsidi- ers to weaken the United States while aries include a recording studio and bringing hard currency for Cuba and * All debts are rounded to the nearest a fashion store and engage in appli- international subversive activities. million. This data does not include bilat- ance sales, clothing exports, delivery Since then, defectors, members of drug eral state-backed loans or trade credits of health care to foreigners, manufac- cartels, intelligence officials of the from political allies such as Venezuela ture and sale of pharmaceutical prod- former Soviet bloc, journalists, gov- and China. ucts, real estate, and tourism. By the ernments, and even the Presidents of Source: “Who Bankrolls the Castro 1980’s CIMEX is said to have had 270 the United States and Colombia have Regime?, Cuba Facts, Issue 36 – Novem- companies under its control. Three documented the involvement of high- ber 2007, University of Miami. Derived CIMEX subsidiaries are foreign banks ranking Cuban government officials, from: Cf. Bank for International Set- whose operations are extremely secret: including the Castro brothers, in the tlements (BIS), Consolidated Banking Banco Financiero Internacional (BFI), international drug trade. Statistics, BIS Quarterly Review, Sep- Banco de Inversiones, S.A., and Havana tember 2007. International Bank (HAVIN Bank), in Many participants have detailed the London. links between Cuba’s intelligence appa- All the firms seem to fall within two ratus and criminal activities of ter- large conglomerates – one civilian, one GAESA (Grupo de Administración rorist-guerrilla networks. Subversive military. CIMEX is under the com- Empresarial), the military holding, is groups from all over the world have mand of the intelligence apparatus and managed by Raúl’s son-in-law, a Major. delivered to Castro the proceeds of reports directly to Fidel and the Council Raúl’s second-in-command and con- bank robberies, kidnappings, robberies, of State. GAESA, is under Raúl’s com- fidant, Major Luis Alberto Rodríguez contraband, and other criminal activi- mand and is staffed by the military. López-Callejas, son of a Division Gen- ties that Cuba planned or helped with. Reports vary regarding the percentage eral, is its Chairman. The group is The secret police files of former Soviet of revenues that go into the Castros’ enormous and said to invoice around satellites offer evidence of many joint

 reserves from these operations. one billion dollars. Its firms are most- operations. Cuba has served as a clear-   inghouse, with Fidel enjoying consider- homes and secluded ranches, hunting cal schools. Most of this has taken able funding discretion. grounds, specialized fishing and cattle place outside the realm of national reserves, and even a shrimp breeding accounts, regardless of budgetary or Hard Currency Bank Accounts facility. Many enjoy amenities such as fiscal considerations, beyond the con- pools, tennis courts, runways, mari- straints of any laws, and free of audits Overseas bank accounts are replen- nas, even golf courses and are used or accountability. ished with asset sales such as the only occasionally to entertain guests reported $50 million sale of Havana or for short rest periods during Fidel’s Fidel is reported to use his money: 1.) Club rum distilleries to the French travels throughout the island. Some to buy influence, 2.) to sway interna- firm Pernaud Ricard. Also, a percent- have sophisticated communications’ tional public opinion to further politi- age of all hard currency revenues command facilities and electric gen- cal goals, 3.) finance international generated by Cubans in overseas mis- eration and water plants. Luxurious terrorism, subversion, and liberation sions – doctors, trainers, artists, pro- underground bunkers are outfitted movements, 4.) for his personal securi- fessionals, technicians- is reported with the latest technology. ty and travels, and 5) for his personal to go directly into Fidel’s accounts. use and that of his family. Cubans sent to Third World countries Properties all over the world are under are paid a fraction in local currency disguised ownership and include a The Castro family’s lifestyle is unri- of what host governments pay Cuba, castle in Austria and large ranches in valed in a country like Cuba, but top while the workers are provided basic, Spain, Mexico, and India. Real estate members of the nomenklatura also often substandard food and shelter holdings are reported in France, Swe- enjoy many privileges unavailable and are closely watched to avoid defec- den, Switzerland, Finland, Italy, Baha- to the population. Rampant excess tions. Fidel has also typically received mas, Tanzania, and Egypt. Properties reported in the seventies and eight- suitcases full of hard currency as in Ecuador are said to be under the ies, however, has been greatly cur- „gifts“ for his birthday from intelli- control of Raúl and his late wife’s tailed. Members of the government gence agents operating foreign firms family, the Espíns. Different mecha- elite, including the Castro family, or involved in criminal activities. But, nisms are used to conceal their true have strict orders to avoid appearing money has actually been delivered any ownership, but some may be officially ostentatious and to stay out of the time. This has allowed for loans to be owned by Cuban government entities. limelight. But, there is no limit to the made from Fidel’s “reserves” to the Because the sources for this informa- resources available for Fidel’s enjoy- national economy to cover hard cur- tion have had access to the data at a ment and pet projects. The perks have rency shortfalls, at a reported interest given time period, it is impossible to included a cognac-making facility, a rate of 10%. ascertain which properties are pres- cigar rolling facility where the best ently held by Castro. tobacco rollers in the country produce Complex evasion operations have been Fidel’s own brand “Laguito,” a climate reported over the years to deliver cash What does the Comandante controlled warehouse for his cache of through courier routes to the foreign do with his reserves? cigars, and a warehouse stashed with banks. A May 2004 New York Feder- all sorts of appliances inaccessible to al Reserve US$100 million fine, said While ruling over one of the poor- the population. to be the highest in history, on UBS est countries in the world, Fidel has (Union of Banques Suisses Investment been able to execute what not even Keeping things under control Bank) of Switzerland brought to light the political leaders of the wealthiest Cuba’s money-laundering and extra- countries or the CEO’s of the richest The business conglomerates are man- official activities 3. Since this time, companies are able to do. On his sole aged within the Castro family and by UBS, Credit Suisse and other banks command, he has been able to give their most trusted people and high- have suspended their financial trans- away houses, cars, and luxury goods ranking military and intelligence offic- actions with Cuban entities. to the ruling elite, donate hospitals, ers. CIMEX officers are recruited from 4/2007

manufacturing plants, air bases, and the Armed Forces or the Ministry of UES G O Real Estate humanitarian assistance to countries, the Interior and the Communist Youth L DIA

offer medical treatment – all expens- Union and carefully vetted. E P Properties in Cuba for the exclusive es paid – to people from all over the EURO - use of Fidel and his family include world, and train hundreds of foreign- A gigantic and highly sophisticated A B U several yachts and up to three dozen ers as doctors for free in special medi- internal repressive apparatus, fash- C ioned after the KGB and trained by of the pie. Plus, intermediaries posing The regime’s most dependable soldiers the former Stasi, keeps things in check. as owners of Fidel’s companies over- have operated Fidel, Inc. very effec- It monitors and controls all citizens, seas are particularly well positioned tively, enjoying select privileges as a foreign visitors, businesspeople, and to exploit opportunities that might result. This has assured their loyalty even the highest members of the rul- arise in a moment of instability. If a to the regime and tied their economic ing elite. Department VI of the Armed power vacuum leaves the intelligence wellbeing to survival of “the Revolu- Forces, for instance, monitors all GAE- apparatus paralyzed, as in the former tion.” Yet, it has also exposed them SA operations, including policing, spy- GDR (Communist East Germany), the to the ways of the market and wet ing, taping and recording all personnel conglomerate would become decentral- their appetites for the paybacks of activities. Cubans posing as business ized and vulnerable. capitalism. In fact, the intricate dis- owners and managers abroad are kept guised ownership schemes and finan- under close surveillance by intelligence The vast and hidden wealth amassed cial dealings that lie at the core of the officers deployed as diplomats. by Fidel Castro has been one of his conglomerate could become its great- most effective tools, but it could be er weakness. In a scenario of debili- Closing the circle, to guarantee Fidel’s the Achilles heel of a succession strat- tating control, a money grab can be personal command over all decisions egy. It was not that long ago that expected. in the country, is the “Coordination former Rumanian strongman Nicolae and Support Staff.” This parallel struc- Ceausescu was actually brought down How this scenario plays out in a final ture is composed of six carefully cho- precisely on this account. He and his succession or post-succession environ- sen individuals charged with execut- wife Elena were sentenced to death for ment is, of course, to be seen. But, one ing Fidel’s wishes and directives. It ruining the country and keeping the thing is clear – understanding Fidel, skirts the institutional structures of population on ration cards while they Inc. is vital to contemplating scenarios government and overrides all other enjoyed luxuries and had accounts of change in Cuba. decisions. According to a former intel- in Swiss banks. The prosecutor at ligence officer, the group is the direct their trial, held at a military base on thread between the different econom- December 25th 1989, cited articles of Maria C. Werlau ic sectors and the Comandante.” the Penal Code to convict them of eco- nomic crimes. Fidel, who is known to 1 A detailed account of this topic, including all Conclusion have followed the fall of the Iron Cur- sources for the information cited by the author, tain very closely, may have sensed the is available in “Fidel, Inc.: A Global Conglomer- ate,” published in Cuba in Transition: Volume 15, By all accounts, Fidel alone has had danger. This might help explain why Papers and Proceedings of the Fifteenth Annual Meeting of the Association for the Study of the the last word on all decisions affect- he went into a prolonged and frenzied Cuban Economy (ASCE), Miami, Florida, August ing the political and economic destiny public tantrum when Forbes magazine 4–6, 2005 (Washington, D.C., 2005); http://www1. lanic.utexas.edu/project/asce/pdfs/volume15/pdfs/ of the entire Cuban nation, at least listed him in its May 2006 annual Bil- werlau.pdf. until his illness and retreat from lionaires’ edition as the seventh rich- 2 “SDNs (Specially Designated Nationals) are indi- viduals and entities located anywhere in the power last year. He has commanded est ruler in the world, with an esti- world that are owned or controlled by, or acting vast resources inside and outside of mated wealth of US$900 million. for or on behalf of, the Government of a sanc- tioned country, as well as designated internation- Cuba. It is unclear to what extent that al narcotics traffickers and terrorists targeted by the United States Government. ” (http://www. has changed, but it appears that his For the time being, Raúl has felt com- treas.gov/offices/enforcement/ofac/articles/sia_ brother Raúl is well positioned to fully pelled to send a clear message to con- 1.pdf). This program for countries under sanc- tions regimes managed by the Treasury Depart- take over once Fidel is completely out front the uncertainty following Fidel’s ment’s Office of Foreign Assets Control. The list of SDNs is available at http://www.treas.gov/offices/ of the picture. This will likely include illness and retreat. One of his first offi- enforcement/ofac/sdn/t11sdn.pdf.

Fidel’s economic empire, at least to a cial acts after the transfer of power 3 UBS had violated an agreement, the Extended Cus- significant degree. After all, Raúl has was to pass in of August of 2006 the todial Inventory Program (ECIP), to act as reposi- tory of U.S. banknotes and remove old bills in cir- been the only other Cuban allowed to Decree Law 251, which takes the “war culation. The bank had been caught buying and selling U.S. dollars to countries under U.S. sanc- engage in significant capitalistic for- on corruption” one step further by tions – Iran, Libya, Yugoslavia, and Cuba- and fil- ays and has run the GAESA network tightening punitive measures for high- ing fraudulent reports to conceal it. The transac- tions with Cuba, totaling US$3.9 billion over sev- as his own fiefdom. er ups in state enterprises. So that no en years, were by far the largest. UBS had been taking old dollar bills from Cuba and crediting one may forget, economic supremacy accounts which it has refused to name. On the other hand, Fidel has a wife will remain the exclusive domain of and six sons in Cuba who might have the highest members of the elite. But,

 other plans, at least for select slices it may come back to bite him. 10 11 Cuba Is Never Alone Pavel Res

Cuba and Its EU tro’s regime is on the verge of col- cal course and to allow for more Business Partners lapse from economic reasons, there is economic freedoms. Unfortunately always somebody to help. In 1960s it because of political and strategic, ‘Castro’s Cuba has never been alone’, was the Soviet Union and since 1990s economic, social, egoistic or other smiles Alicia, a Cuban revolucionar- it has been the European Union. reasons, countries have various atti- ia in her sixties who rents rooms in tudes towards authoritative or dic- her Havana flat. Unfortunately this If such help had not been provided tatorial states like Cuba, and there- might actually be true. Whenever to Castro, he would have probably fore there will always be somebody there is only an indication that Cas- been forced to change his politi- to please Alicia. Photo by: Pavel Hroch by:Photo Pavel 4/2007 UES G O L DIA

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Saving Cuba and the covering new destinations and often of nickel in the world with five percent EU’s Investments they are not satisfied with the rela- of global production and extracts over tively high prices and poor services 70 thousand tons annually. In addition, Today Venezuela and China are taking provided in Cuba. In 2006 the number the world market’s price for nickel has over the role of the European Union. of tourists visiting Cuba from several grown remarkably over the past few However, European capital keeps sav- countries dropped: Spain by 5,7%, Ita- years. Since 2002 nickel prices have ing Cuba as it tries to protect a dimin- lia by 15%, Germany by 9,8%, France risen by approximately 500% and the ishing position of influence. by 5,2% and Canada by 1,9%. On the current prices fluctuates around USD other hand, the number of English 30,000 per ton. Around 300 million The flourishing European tourism indus- tourists increased by 5,2% over the euros worth of nickel is exported to try has become one of the most impor- last year. Nevertheless, the tourism European markets through the Neth- tant motors of Cuban economic growth industry is expected to keep growing erlands, where it is redistributed to and in this field Spain continues to be and accordingly, Cuba is supposed to other countries. However, since Dutch the most significant player. The Spanish continue expanding its tourist capaci- importers continue to face sanctions hotel chain Sol Meliá has opened its 23rd ties, which currently can accommo- because of the US’s embargo, Europe’s hotel in Cuba, giving it command over imports are 50% lower than they were 37% of the market. In addition, other and the Cuban government has start- hotel companies such as Iberostar Hotels An economic blockade ed to focus raw material exports to or Barceló are going to expand and by is probably not going China whose enormous demand con- 2010 Barceló will inaugurate six new tinues to boost prices. The extraction hotels. Cuban tourism generates over to change the political is implemented in the cooperation of 2 billion US dollars every year, which situation in Cuba. There the state company Cubaníquel and represents a very significant source of the Canadian company Sherritt Inter- hard currency and employs about one will always be somebody’s national. hundred thousand people. shoulders that Cuba can The main pillars of Cuban wealth are ‘Once again tourists visit Cuba because lean its tired head upon. not dependent only on tourism and of the three Rs – Rum, Rumba and On the other hand, this nickel for gaining to hard currency. Romance.’ Even though the glamour The exportation of services has defi- of Havana, as described in the nov- fact should not be used nitely become the most important one, el Three Trapped Tigers by Cabrera as an excuse by well- since there are around 30,000 Cuban Infante, is not as it used to be fifty doctors work abroad these days in years ago, for many tourists Cuba has established democratic Venezuela and other countries. ‘I am become a brothel again. ‘Cuban pros- countries of the EU. going to see my doctor and there is titutes are the cheapest as well as the a note on the door saying: “I am in most intelligent ones – even univer- a mission.” so, I am going to see the sity educated women do this job’, gig- substitute doctor and again there is gles a pimp who introduces himself date a maximum 3 million tourists a note on the door saying: “I am in a as Julio and offers his cousin. Even annually. Of course, the speculation of mission.”’, Gerardo, a retired engineer, though prostitution is prohibited in an avalanche of tourists coming from complains about the medical system in Cuba but it is difficult for many to the USA persists into the unidentified Cuba. And we must not forget about resist earning two months salary in future since it could represent almost the annual income of nearly 1 billion an hour. The average monthly salary 2 million additional holidaymakers dollars sent as remittances from rela- is 11 Euros. every year. tives living in the US.

Cuba is visited every year by more Exports and Imports Cuba exports several different com- than two million tourists, most of modities. The most significant ones, whom arrive from Europe, although Tourism is not the only thing that other than nickel, are sugar, tobacco Canada contributes a healthy 25% of draws hard currency from the Euro- and cigars, lobsters, medical products, this number. It is true that the flow pean Union. The most important EU- citrus, coffee and rum. And most of of tourists has been stagnating over Cuba foreign trade item is Cuban nick- these commodities are also exported

 the last two years – tourists are dis- el. Cuba is the sixth biggest provider to the European market. 12 13 The main Cuban export partners: called empresas mixtas, which are There are several business zones semi-public companies where the where foreign companies may own Netherlands 28,4% Cuban government owns 51% and the up to 100% unlike 49% in semi-public Canada 20,7% foreign investor 49% of the enterprise. companies, but they are strictly iso- Venezuela 11,4% The most active European direct lated in designated special duty free investors are Spain, then Italy, France areas, which only represent some Spain 7,6% and in a lesser extent Great Britain 25% of production within the Cuban China 4,7% and Germany. Contracts cover a deter- market. Furthermore, usually these Source: EIU mined period of time, for example for companies are expected to assemble 10 years, in which these businesses semi-finished products and there is Due to the reciprocal nature of busi- strictly have to follow Cuban require- always the Government interference. ness, the European Union places their ments that do not allow for much Most of these business zones have goods in the Cuban market. Hundreds flexibility. When these contracts been abandoned. For example in the of EU companies sell their products expire and are not extended, these Berroa Zone, close to Havana, there or have investments in Cuba. Next companies usually become again com- were 102 companies in 2002, alleged- to the previously mentioned invest- plete state owned like it used to be in ly today there are only about 18. The ments in tourism, the largest Euro- the magnificent 1980s. Cuba usually investors fled because they were not pean exports and investments are pays foreign investors through the allowed to sell the quantities they made within industrial sectors: min- actualized profits. As a result, some had wanted to in Cuba. Another rea- eral extraction; the chemical and pet- foreign investors have already left son might be the fact that the Cuban rochemical industries; equipment for the country. Sometimes the depar- government prioritizes ideological power plants and various kinds of ture is not very smooth; there have fellow-believers like Venezuela and machinery including cars and other been various disagreements and some China and therefore, hassle the Euro- means of transport. Also, EU mem- of these disputes even ended up in pean companies until they leave most bers export daily consumer goods: arbitration courts. For instance, this of these spaces. primarily food followed by clothes, year two major Spanish multina- brewer’s malt, wine, etc. Some EU tional investors, Acciona Infraestruc- Cuba discriminates against Europe- countries even prefer exporting to turas, S.A. and Zell Chemie SL have an investors in these matters. Sim- Cuba through third countries. The launched lawsuits against the Cuban ply put, the Europeans are not ide- trade of the European Union with government. al partners; they only support the Cuba grew by 19% in the year 2006. regime economically and not politi- In comparison with 2005 especial- Foreign investments according to cally and ideologically in the ways ly the exports of Spain, Germany, countries in 2005 (number of invest- that Caracas and Beijing are willing France, Belgium and Italy rose. ments) to. Moreover, some European gov- ernments continue to annoy the The main Cuban import partners: Spain 79 government over its human rights Italy 46 record and by supporting dissidents, Venezuela 24,7% Canada 44 and the regime no longer wants to China 11,8% deal with these reproaches. Why are France 14 Spain 8,7% the Castro brothers venturing to China 10 discriminate against the EU? They USA 6,2% Mexico 9 apparently do not need the European Italy 3,9% Great Britain 8 investments to the extent that they Source: EIU Panama 7 needed them ten years ago. In 2005 alone the exportation of services to Israel 7 Venezuela generated 40% of Cuban

Mixed Companies and Feelings 4/2007 Venezuela 5

hard currency income (USD 2,9 bil- UES G O

Foreigners that have direct invest- Germany 6 lion). ‘Cuba called us when they L DIA

ments in Cuba (tourism, extraction Others 23 needed us and now they are getting E P of raw materials, building industries, rid of us, because they have differ- EURO - transport, communications, etc.) usu- Source: IPS-Resumen Economico Anu- ent plans for the future’, say some A B U ally have to invest their money in so al 2006 European investors. C Business between EU Countries and Business versus Human Rights the Netherlands. The Netherlands pro- Cuba in thousands of euros for the vide the greatest amount of support for year 2006: Based on this summary, it would the dissident movement through their seem that money does not respect embassy. A less positive example can human rights. The world revolves be seen in of Italy. This country has around money, a sacred truth in all refused to get involved in the human societies including Cuba and the USA, rights situation in Cuba at all, but by Import EU Countries Export Balance the biggest exporter of democracy in only doing business they are harm- 1 ES 617,274 132,636 484,638 the world. ing dissidents. The telecommunication 2 410,809 13,464 397,345 DE company ETECSA, which eavesdrops on 3 IT 282,237 16,050 26,6187 Common business obviously cannot Castro’s opponents with the support of 4 FR 94,394 28,564 65,830 be stopped for human rights reasons, TELECOM ITALIA capital in Cuba. 5 NL 92,785 486,184 -393,399 even EU politicians do not do their best not to harm their European econ- The most important EU business partner 6 BE 41,087 3,285 37,802 omies. The European Parliament has is Spain. Taking into account the histori- 7 29,818 10,369 19,449 UK adopted resolutions urging EU mem- cal events, Cuba was the last Spanish 8 DK 28,641 1,835 26,806 bers to focus on improvements of the colony and there has always been an 9 CZ 24,284 1,309 22,975 human rights in Cuba, but most of the unbreakable bond between these two countries do not respect this formal countries. Spain still wants to maintain 10 SE 16,172 2,150 14,022 requirement. a paternalistic attitude towards Cuba 11 PL 9,747 410 9,337 and treat Cubans like children. As in 12 SK 6,691 420 6,271 An economic blockade is probably not life, it is difficult for parents not to ful- 13 FI 6,549 382 6,167 going to change the political situation fill their children’s wishes and to cast 14 PT 5,598 19,202 -13,604 in Cuba. There will always be some- a blind eye towards the injustice they body’s shoulders that Cuba can lean cause. Remember that the Cuban gov- 15 AT 4,270 1,546 2,724 its tired head upon. On the other hand, ernment has developed in part from 16 1,039 51 988 LT this fact should not be used as an Spanish heritage. So Spain always seems 17 HU 682 73 609 excuse by well-established democratic to forgive Castro’s regime. But the Span- 18 EE 480 271 209 countries of the EU. Those who sup- ish investors’ behaviour sometimes 19 GR 476 2,979 -2,503 port business with Cuba sometimes goes too far. For example, in 2005 the say: ‘The richer a country’s population Meliá Habana Hotel cancelled the Czech 20 IE 372 48 324 is, the more conscious the inhabitants embassy’s reservation to celebrate the 21 228 79 149 MT are about demanding their rights. So Czech national holiday at the very last 22 LU 192 69 123 in doing business with Cuba we are moment, because the Czech embassy 23 SV 156 8 148 supporting democratic changes.’ Or as had invited the “counterrevolutionary” José Martí said: ‘Freedoms die where Ladies in White. These manners are 24 LV 16 82 -66 they are not sustained by wealth.’ This simply unthinkable in Spain, but when 25 CY 2 2,313 -2,311 judgment may sound good, but the they are in Cuba the Spaniards do not Source: DEK in Havana US’s 47 year old embargo has not suc- seem to mind. ceeded in overthrowing Castro. As you can see, large amounts of Business can help build a better soci- money has been lent to Cuba from Regardless, investors should enforce ety in Cuba if ethics are involved in the pockets of European citizens. some procedures which are common in the investments. The companies could Because of this, Castro’s economy Western Europe and refuse to comply at least try to respect the Arcos prin- achieved GDP 12,5% growth in 2006 with most of the Cuban regime’s pro- cipals – the moral code compiled by according to official Cuban data, Castro requirements. In general, the the dissident Gustavo Arcos defining although this is perhaps an exagger- investment requirements in Cuba today the ethics principles of foreign invest- ated figure, because Cuba uses a spe- do not support human rights, instead ments. Let’s merge the profits they cial method of GDP calculation. The they simply collaborate with the Castro make with ethics and human dignity. real growth of Cuba’s GDP is estimat- brothers’ ideology and rule. A positive ed to be around 7,5%, which is still example of this can be seen in one of

 considered robust. Cuba’s most active business partners: Pavel Res is a journalist and translator. 14 15 Fidel Castro Not Paying His Bills

Luis Losada Pescador

s a journalist I was able to see a administration. Rafael Calduch, a pro- building while representatives of the report of Spanish Ministry of the fessor of international law at the Com- Vizcaya district deliver several buses ATreasury in which I learned the follow- plutense University of Madrid, says that and vans to Cuba. ing data. On the 31st December 2006, the unpaid bills reflect the “economic Cuba’s debt to Spain reached 1,708.03 incompetency of the country”, although Theoretically, foreign policy comes million euros and represented 17.82% of he believes that the cooperation for under the exclusive competence of the total external debt of the country development should continue “even if it the Government, yet cooperation has (9,586.63 million euros). Other 12.51% should be a burden, because otherwise, I been transferred to the autonomous belonged to Argentina due to the special don’t know who else would do it“. communities. And that is why social- debt of 752.95 million euros incurred ist communities are able to continue during the “default” of 2001. And Spain’s The Government has obeyed his sugges- cooperating with Castro’s dictatorship, third major debtor was China that owes tion and has re-launched cooperation maintaining the utopian illusion of a 677.7 million euros for relief and devel- programs despite a “democratic clause” Revolution that has revealed its inef- opment credits. The majority of Cuba’s that is not worth the paper it is writ- ficiency, injustice and immorality. debt is commercial though. ten on. “Whether we cooperate or not, we should demand they respect human Period of Goodwill And as far as the list of unpaid bills is rights; but they will keep on paying as concerned, the figures are much worse. little attention to what we are saying The Minister of Foreign Affairs, Miguel Cuba once again takes the first place or doing as they have done up to now,” Ángel Moratinos, strongly argues that with a total of 1,698.81 million euros, says Calduch. Will we receive our mon- by promoting easier relations, Spain which is 51% of the total amount of ey some day? Calduch is convinced that has achieved positive results in terms unpaid items (3,330.06). The bills thus Cuba’s debt to Spain will never be paid. of human rights. “Just look at the have to be covered from CESCE export number of people who have been insurance or have to be recovered by To the government programs of coop- released from prison”, he told me last the Government. Which measures has eration and development we should year. The fact that the Cuban poet Raúl Spain taken to make sure that its bills also add the programs run by different Rivero had been released from jail and are being paid? autonomous communities. Despite the had been received in Spain was “sold” by fact that diplomatic relations between the administration of José Luis Rodrígu- According to David Vegara, the Secretary the countries were frozen during the ez Zapatero as a “success” of Span- 4/2007

of State for Economic Affairs, we are “Aznar Era”, both Andalusia and the ish diplomacy that the public should UES G O dealing with “insolvency”. Sources from Basque Country have continued with believe. “But Moratinos has not said L DIA

the Government claim that “there is no their cooperation projects. Therefore, that after the release of several pris- E P cause for concern, and that there are on photographs you may notice that oners, another 25 were arrested and EURO - not more unpaid bills than four years the Andalusian regional government is that after the changes of July 13, 2005, A B U ago”, clearly referring to the previous cooperating on the reconstruction of a those 25 were followed by 17 more,” C stressed Vladimiro Roca, the president Are there any connections between the Business of Cuban Social Democrats. The Span- policy of loosening tensions and busi- ish government was informed about ness interests on the “prison island”? What role do Spanish companies play the new arrests three times. What was There might be; although, no politician in Cuba? “Foreign investments help their reaction? Silence. will openly admit it. The Spanish Social- funding the regime”, says Miriam ist Workers` Party (PSOE) seems to focus Leiva, the speaker of the Ladies in “We criticized the releases from prison its foreign policy on Cuba and Equatorial White. “I’m not an opponent of for- because Moratinos was presenting them Guinea – due to history and because in eign investment, but I do oppose as a success and was ascribing them to both dictatorial countries, Spain might opportunistic investment”, adds the fact that tension had been loosened,” somehow supervise the process of tran- Vladimiro Roca. said Elisardo Sánchez, the president of sition towards democracy. the Human Rights Committee. “The Undoubtedly, there are people who approach of the Spanish government Nonetheless, the question is whether the believe that the simple presence of is irritating,” he adds. Elisardo has not policy of loosening tensions is adequate. Spanish business will bring politi- been able to understand “how can there On the 12th October 2004, the Spanish cal liberation. However, it is more still be people fooled by communism, ambassador to Havana Carlos Zaldívar likely that it will be the other way like the writer Vázquez Montalbán”. warned the dissidents that they would around. The companies offer oxygen not be invited for national holiday par- and foreign currency to a languish- On November 15 of this year, Morati- ties anymore. Oswaldo Payá, the presi- ing regime. Businessmen use cheap nos repeated the same “doctrine”. “There dent of the Christian Liberation Move- labour and do not have to face any have been further releases from prison, ment and a winner of the Sakharov Prize labour disputes. They complain about some ill dissidents have come to Spain of the European Parliament, left the “par- the conditions imposed by the State. to receive medical treatment and a UN ty”, slamming the door. Since then, the They are, for instance, dissatisfied officer has been allowed to the island.” opposition has not been appearing at any with the fact that 51% of the capital And because of the success, the Spanish events organized by European diplomats. belongs to the State, that staff has Minister of Foreign Affairs believes that And this is what Václav Havel calls “dip- to be selected by agencies that are we should centre more on the defence of lomatic apartheid”. appointed by the Government and human rights and continue in the same that the regime bolts 85% of the sal- direction. How shall we proceed? We Moratinos opted for a meeting with the aries of their employees. “We have should focus on legal and judicial issues dissidents during his last visit to Havana. to run our business in those condi- and on the problem of the prisons. There- Apart from being immoral, his rejection tions like in any other country of fore, Moratinos confirms that at the end was a clear sign that he does not really the world; we have to assume what of November, the bilateral committee hope that some sort of transition will the laws of the country require us to “Human Rights Spain – Cuba” will hold a start soon – otherwise he would have do,” says a lawyer with investments second meeting in Madrid. This is what met with people who once will play an on the “prison island”. And the same was agreed with his counterpart Pérez important role in the democratic change. “wash-conscience” argument is used by Roque during the last Ibero-American Not to count on the Cuban opposition the main Spanish companies settled Summit in Santiago de Chile. “It will either avoids that fact that the change in Cuba such as Caja Madrid, BBVA, actually be a third meeting, because is coming eventually or is slowing the FCC, Sol Meliá and NH. after the first session held in Cuba, there whole process down. Moreover, such an was one more, a preparatory one, in the attitude supports the totalitarian dicta- Are there any common interests that UN”, stressed Moratinos. torship by which the opponents are per- the political powers might share? The secuted, imprisoned and tortured. fact that the socialist government Moratinos seems to forget that many has re-established cooperation with releases from prison are not releases On the other hand, the European agree- Cuba and the declarations of Morati- in the true sense of the word, but are ment promoted by Spain suggests that nos in relation to Venezuela, in which “licencias extrapenales” – permissions when the time comes, it will be nec- he revealed that his priority were to leave prison because of health. In essary to support civil society and to Spanish business interests, may sug- other words, the releases are a kind establish dialogue with the dissidents. gest something. What is less known, of make-up that hides new arrests and “The time has come”, says Payá and adds: though, is the level of cooperation the serious situation of human rights “we want to see a schedule for liberat- of Spain and Cuba in sport. Top level

 and liberties in Cuba. ing peaceful political prisoners.” sport has become Castro’s best way 16 17 of doing propaganda. Yet when the Let’s now have a look at one example. the pitiful situation of the Cuban peo- Soviet Union cut the supply, nothing Imagine an NH hotel in Havana. The ple who work for the Spanish compa- could be pretended anymore. In Cuba, hall is adorned with paintings of the nies based on the island. And neither top level sport practically disappeared Revolution and on one of them you have they condemned the regime for due to lack of money. And it is pre- may read: The Revolution brought “exporting” its workers so that Spanish cisely in this area that Spain picked Cuba independence and sovereignty, developers may enjoy cheaper and saf- up the baton. “We get help from a and laid the foundations for econom- er manpower on their European terri- Spanish program that promotes sport,” ic development.” It would have been a tory. Their silence turns both business- some Cuban girls reminded me. Who nice message, had it not been for the men and trade unions into accomplices is in charge of such a program? Jaime bathroom without toilet paper for of this unjust abuse. Lissavetzky, the Secretary of State two consecutive days (in a hotel with for Sport. Spanish prices). Things can even be The thing is that the topic of Cuba worse: you may go out on the street has something to do with hunger and On the other hand, the sources from and a child without shoes will ask appetite. “You have economic interests the People’s Party (PP), which is the you for soap. What was it that laid and the ideology”, says Vladimiro Roca Spanish opposition, silently criticize the foundations for economic develop- – and that is why Cuban government the situation, although they also say – ment? And what about the independ- still invites politicians from the Unit- maybe naively – that when the change ence when until the fall of the Berlin ed Left (IU) to its parties. “Cuba is an happens, Spain will be among the first Wall they had lived thanks to the arti- example to follow”, said recently the on the starting grid. It will be some- ficial respiration of the Soviet Union? president of the Socialist Youth. Yet thing like getting the “jewel of the And anyway: How can NH collaborate the queues in front of the Spanish con- Caribbean” back and “save” it from US with Castro’s crude propaganda? sulate may be seen every day. What landings. However, what would actu- is so special then about this paradise ally happen if the new government Another idea to be considered is that which everybody wants to leave? just got money for the bills that had despite the fact that the ILO’s conven- not been paid during years of exploita- tions are constantly and massively tion, as it happened during transition violated, Spanish trade unions have Luis Losada Pescador in South Africa? not opened their mouth to condemn photo: Miguelphoto: Gil

4/2007 UES G O L DIA

E P EURO - A B U

A city bus donated by Cuba to a Basque municipality C WILL OIL BRING DEMOCRACY TO CUBA? Leopoldo Fornés-Bonavía Dolz

ntil recently, writing about hydro- covered in the east part of Havana. The ‘yoke’, along with the other countries of carbons in Cuba would have been crude oil in the Bacuranao area that Central and Eastern Europe that once Ulike speaking about water in the Tak- Cuba was struggling to drill with the belonged to the Communist bloc and lamakan Desert in Central Asia. It help of the United States at that time are now part of the European Union. would simply be nothing else but a was very difficult to extract and there- chimera. However, now it seems we fore was not very profitable. Eventually For almost a decade, the Cuban regime could be mistaken to think so – oil has Cuba had to admit that the island was went through great lengths to replace indeed knocked on Castro’s door. not as rich in hydrocarbons as Vene- the subsidised Soviet supplies by zuela, Mexico or the southern and east- obtaining oil from Iraq under Saddam In a country where people have lived ern parts of the United States. Howev- Hussein, from Iran under the Ayatol- off of sugar cane registered until er in the first years of the Revolution lahs, from Mexico under the PRI or recently this constitutes a radical new efforts were made with the help occasionally from the democratic state change. Sugar cane production tradi- of Romania’s Communist government. of Venezuela. However, all of them had tionally used to range between 5 and Romania had certain technology avail- the bad habit of billing Castro for it. 10 million tons per annum, but these able and experience from extracting Some wanted Castro to pay for the days the harvest hardly reaches 2 mil- their own reserves and tried to drill in supply in cash, like Mexico, and if the lion tons. Since the old large-scale pro- different parts of the country, mainly money was not deposited in a particu- duction has been cut by the current on the northern coast. The drilling rigs lar bank, the tanker would leave the economic and political system that was that Cuba bought or hired for this pur- bay where it had been berthed and introduced in 1992, Cuba has unfortu- pose were than paid by huge amounts would return home with a full belly. nately stopped being world’s number of oranges that the country produced I have never known whether any of one exporter of refined sugar. The sug- in the 1960s. However, by the 1970s the tankers actually did return home, ar industry as Cuba’s major source of and 1980s, it was concluded that the but I have heard that there were some income has been replaced by mining extraction of oil was impossible and issues over payments. If you do not interests in nickel, chrome and cobalt the whole project was shelved. deposit the money in the bank, we through massive investments from will take our oil back home! countries like Canada. Tourism, which And then in 1989 came the fourth “ter- has been in decline, and remittances rible” year of the soviet Perestroika. Nevertheless, in late 1990s, the Gods from emigrants – either from the politi- The Berlin Wall fell, the USSR began from the Marxist Olympus heard the cal ones, who left the island in the past to disintegrate and the cheap, subsi- fervent prayers and a “miracle” hap- – or the economic ones, who are leav- dized Soviet oil, that used to “travel” pened. In rich Venezuela, the populist ing the island today – are the two other for 18 days to Cuba from the Black Sea, Hugo Chávez was elected president major sources of income. was now being saved from the long and began to provide Cuba with huge exhausting journeys in order to sup- amounts of oil and money. The crude Already by the time of World War II, port the failing economies of the soon was a real bargain – it was sold for Cuba was extracting some reserves of to be former Soviet Union. The Rus- very low, political prices and helped

 heavy and dense oil that had been dis- sians freed themselves from the Cuban Castro to regain his breath. 18 19 Today, Venezuela provides 50 % of the Soon after the discovery and to the Hitler’s Third Reich, which was needed fossil fuels that Cuba requires for elec- “delight” of American geologists, the to make an atomic bomb. In 1942 this tricity, transport and cooking. The other regime in need eagerly started grant- factory was destroyed by the British half is covered by the drills on Havana’s ing concessions. The Canadian com- RAF along with courageous Norwegian northern coast and another 67,000 bar- pany Sherritt International (which patriots and democrats.) Indian Videsh rels per day are extracted for the state- was already operating heavy metal Oil has claimed two concessions on the run enterprise, CUPET, by the Canadian mines in Nicaro in the Oriente Prov- north-eastern coast of the Pinar del company Sherritt International. ince where Czech and Slovak engineers Río Province, and Petronas of Malay- used to work before 1990 and where sia – the company headquartered in At the start of the 21st century, Cuba’s they still have investments unpaid by the famous Petronas Towers often seen prospects began to change completely. the regime) secured the concession for in newspapers and on TV – acquired The Cuban regime suggested that prepa- coastal area around Havana. Repsol-YPF access to central and western parts of ration needed to be made for drilling the claimed several concession to the east the same province. For now the last submarine plateau on the north-western and west of Havana: two blocks abut- concession has been granted to Vene- coast of the island. The area that was to ting those of Sherritt International zuela’s PDVSA, which expects to extract be explored more or less extends from and another five deep sea concessions oil and natural gas from the submarine the port of Cárdenas in the central part further along the coast of the Havana plateau that runs parallel to the Gua- of the island to the Guanahacabibes nahacabibes Peninsula as far as Cabo Peninsula in the West that is relative- de San Antonio and the international ly close to the Mexico’s Yucatan Penin- The discovery of the waters of the Yucatan Channel close to sula. Everything seems to indicate that immense pocket of crude Mexico’s Cape Catoche. the wildcat exploratory wells in this area that were begun in 2005 and 2006 oil and its extraction Apart from these enterprises, this avail- by the Spanish – Argentine enterprise could be extremely able rich oil pocket drew the atten- Repsol-YPF, had led to the discovery of tion of China’s Sinopec and companies several profitable wells of light crude, important for the Cuban such as Nigeria Oil, Petro Vietnam and despite all predictions, that might cover people to live happy possibly Mexico’s Pemex and Petróleos the enormous costs of the hired plat- Chilenos. Considering Brazilian presi- forms and oil derricks. Since becoming lives in a democratic dent Luiz Inácio Lula da Silva is inter- public knowledge, this Spanish discovery and stable country. ested in mineral mining in Cuba and is aroused enormous interest among com- expected to visit the island in Novem- panies devoted to seeking new deposits. ber, it is quite possible that Petrobras is And quite logically, Cuba’s Communist also interested in Cuban oil. The strange government has divided the drilling Province. According to a somewhat thing is that there seemed to be no concessions among the companies which inaccurate map, Repsol-YPF claims sup- interest of European companies such as had put their hands up first. posedly extend from Bahía Honda in French Elf and Total, Italian ENI, Brit- the Pinar del Río Province to the city of ish Petroleum or Royal Dutch/Shell. The The U.S. Geological Service carried out Cárdenas in the Province of Matanzas. Russian oil consortiums and ex-soviet exhaustive studies when it learned about After the initial successes of 2005 and countries have also remained silent. It is this news and calculated that the sub- 2006, these companies were joined by a well-known fact that Cuba still owes marine oil deposits in the north-west- the Norsk Hydro of Norway and by OVL Russia 20,848 million transferable rou- ern Cuba could yield an incredible 4.6 Videsh of India that also offered their bles from the Soviet Era and that since billion barrels of crude oil and approxi- capital and technology to Cuba. 1991 its debt to Russia has reached 819 mately 3 billion cubic metres of gas. Such million dollars. Considering the amount astronomical reserves have complete- The presence of Norsk Hydro reflects of this debt, Cuba might never be able to ly changed the prospects of a country, Norway’s considerable interest in drill- pay for the services and machines that 4/2007

whose population density is comparable ing in an area that is banned by the it had been provided in the past, which UES G O to Europe (more than 100 inhabitants per United States’ embargo against Cuba. might explain why there are no Russian L DIA

square kilometre) and whose economy (An interesting side note is that this engineers and drills presently. E P has been fading due to inefficient eco- old and stable company from one of EURO - nomic policies and a declining tourism Norway’s fiords once ran the one fac- American companies such as Chevron, A B U industry. What a relief! tory that produced heavy water for Exxon, Mobil Oil, Sun, Tenneco, Amoco C and others were all “invited” to drill export sugar, while until 1977 it had from the embargo, the US may sell them by the Cuban government, but none been the first (Quid France 2007). in cash, and Cuba is the twenty-fifth big- of them came because of the embargo gest client to buy American agricultural that had been imposed by the Eisen- Remittances from those who work products. The embargo pertains to indus- hower administration in 1960 as a abroad or live in exile (in exile live trial products, weapons and credits. response to the nationalization without approximately 1.5 million people plus compensation of American and Cuban their children and grandchildren) pro- In essence, the most important thing is property (property of Cubans now liv- vide 11.3 million Cuban inhabitants that the companies we have mentioned ing in the US). This embargo law has with 1.2 billion dollars. can find wells suitable for commercial been rejected by the immense majority extraction and that these wells are at of UN member states recently. Extraction of heavy metals such as least as rich as to cover Cuba’s whole con- nickel, chrome, cobalt and some cop- sumption and to replace subsidized oil If we consider that in 2007, the price per generate around 2 billion dollars. from Venezuela. Today, Cuba needs 67,000 of crude oil rose from 25 dollars per In recent years, these metals have daily barrels of Venezuelan oil to keep its barrel in March to 60 dollars per bar- been Cuba’s main export article, and industry more or less running. However, rel in September, it is obvious that while in the past, metals were extract- if in the following ten years the country with a good well of easily to refine oil, ed using technologies from the former is energetically self-sufficient, Cuba, with all investments into technology and Czechoslovakia, nowadays, mining is its literacy level of 97 %, qualified labour prospecting whatsoever will bring controlled mainly by Canada. and European level of life expectancy (77 profit. Anyway, who knows wheth- years), may very well achieve that its er the price of crude will approach Income from tourism represents 2 bil- government stops feeling blackmailed by the dreaded 100 dollars/barrel that lion dollars and most part of the mon- another authoritative regime that is rap- could signal an international reces- ey comes from Canada, Spain, Italy and idly turning into a dictatorship, unless its sion worse than 1973. This is why the other countries of the European Union. subjects or God prevent it. Cuban crude pocket is so important. This sector has been on the decline though currently. Self-sufficiency would also imply some And what does the economic situa- sort of stability and might perhaps tion on the island look like at the end Additional sources that Cuba lives on make the country more “mature” for of 2007? According to a think tank are credits worth 1.6 billion dollars pro- democracy. The island could be brought from the University of Miami and eco- vided by Venezuela, China, Iran and Rus- together more easily, since the majority nomic experts from the Institute for sia, and subsidies granted by Venezuela. of working age people are emigrating, Cuban and Cuban-American Studies, Venezuela provides Cuba with hydrocar- mainly to the United States and the the island now more or less lives on bons worth 2.2 billion dollars annually, European Union, would prefer to stay the following sources of income that Cuba has once again becomes depend- at home. Like the University of Miami’s have been listed from the least to the ent on another country. Over the course economic experts, I believe in a peace- most significant ones below. of its history, Cuba has been a Spanish ful transition towards democracy, in a colony; dependent on the United States Czech style “velvet revolution” for Cuba. Tobacco, pharmaceutical products, sug- and the USSR; and since 1999 it has In the need for a kind of market econ- ar and sea products bring in approxi- been subjected to Venezuela. Then there omy which would significantly relieve mately 800 million dollars. You may are also China and Iran, countries that Cuban people of the hardships they have notice that the income from sugar, will always be willing to ignore the bills been suffering on account of the regime included into one group with other and to support Cuba in combating any that has been forcing them to live in an items, is very low, despite the fact until national or international tendencies that artificial system of state-run production the 1990s, sugar has been the main might lead to democracy and pluralism. and has been motivating them with its article of Cuban economy for centuries. “moral” principles which in today’s prac- The inefficient regime currently in pow- Cuba is a fertile land of farmers, and yet tice are far from being so. er has managed to put an end to the because of the inefficient system of state- sugar industry. Since 2002, seventy fac- owned property imposed by the Castro Considering the above, the discovery of tories out of total 155 have been closed brothers the country must buy food the immense pocket of crude oil and its down. Castro killed the goose that had from the United States, otherwise peo- extraction could be extremely important been laying the golden egg. Today, Cuba ple would have nothing to eat. Thanks for the Cuban people to live happy lives

 is world’s twelfth largest producer to to the fact that food items are excluded in a democratic and stable country. 20 21 Trade Relations between Cuba and the Czech Republic Dr. Traian Urban

he purpose of this paper is to with the good reputation of Czech within the WTO to which both coun- explain the evolution and the products and a Cuban population’s pos- tries have made commitments to and Tactual condition of economic relations itive perceptions of the Czech Republic the confidence of businessmen. between the Czech Republic and Cuba that were not damaged despite politi- in the recent history, i.e. from 1990 cal tensions, have created favorable After a thorough analysis of accessible to 2006. The following article will try conditions for widening existing eco- data regarding our case, we can state to describe certain specific features nomic relations. that the tense political relationships, of this type of relationship, primarily the distrust of the investors associated the historical context, the influence of To study business cooperation between with the apparition of new business world business and politics, the cur- the Czech Republic and Cuba, we have opportunities in Central, Eastern and rent economic-political orientation of to focus on two different, but inter- Western Europe and the new geopo- Cuba and the political obstacles which dependent spheres – the economic litical situation led, apart from some have affected to a certain extent the and the political. World business sta- exceptions, to the stagnation of busi- interchange of goods. tistics show that trade flows are often ness between both traditional business act independently from the involved partners from the beginning of the 90’s. Close Friends countries’ political relationships, and The most important factor in this con- sometimes even become a basis for text was the fact, that Czech compa- From a historical point of view, the strengthening ties. On the other nies in the 90’s found new markets for relations between both countries hand, if they are not supported by an their products primarily in other Euro- were established with the onset of appropriate political will and strate- pean states and up to a certain point the Communist regimes in the second gy, they tend to reach a certain state didn’t pay attention to the possibilities half of the 20th century through the of unwanted stagnation or remain of Latin America as a whole. economic connections and depend- confined to a limited range of prod- encies within the Soviet economic ucts, which have a clear comparative Trade Flows model. This stimulus led to the crea- advantage over local products. A cur- tion of new trade relations of extraor- rent example of this phenomenon is The volume of trade exchange between dinary dimensions, considering the the diplomatic rupture between Spain both partners was reduced to a mini- geographical distance between the and Venezuela, which Hugo Chávez, mum in the 1990’s after the fall of Com- two. Former Czechoslovakia, prior the the president of Venezuela, has used munism, which brought a new geopo- collapse of the Communist regime in as a pretext to address some absurd litical situation. Czech companies have 1989, was the second largest importer threats to Spanish enterprises oper- returned to Cuba and to the rest of Latin and investor in the Cuban economy. ating in the country. There are other America to a limited extent only since 4/2007

For instance, a considerable part of determining factors that have affect- the new millennium began as they need- UES G O the power generation facilities, which ing the mutual trade relations: the ed to find new markets. Between 1990 L DIA

continue to supply the whole island geopolitical situation, the attitude and 1999 trade volume between them E P with a significant amount of electric- of the superpowers, the disunity of was very low, with the exception of the EURO - ity, come originally from the former European policies toward Cuba, the year 1998, when it increased by 300% A B U Czechoslovakia. These facts, together progress of multilateral negotiations due to the construction of a thermal C power plant in Felton, Cuba, in which above are an example of a successful to analyze thoroughly the structure some Czech companies took part. How- business in the difficult conditions of of bilateral transactions in terms of ever, this fact, which normally means a Cuba. They both have had their offi- separate commodities due to the lim- new impulse and encourages the inves- cial commercial representation in Cuba ited extent of this article. Therefore I tors to focus on a country where some- for several years already. The company will explain and summarize some of thing like this happens, didn’t convince Škodaexport, which supplies the Cuban the topics usually considered the most the Czech investors of the potential of market with machines and spare parts, important for both countries, with the Cuban market. That’s why Czech takes up again the activities from the emphasis on the Czech Republic. export stagnated again between 1999 period before November 1989. Inekon and 2002. A minor change came in 2003 Power, a.s., is engaged in supplies of capi- When one looks at the historical docu- due to the exports of Czech foodstuffs tal equipment for energy industry, spare ments dated before 1989, they will dis- especially through the company Sim- parts, transport machines, etc. cover that the usual export article of plex CZ (exporter and importer of dairy Czech economy were products from the products, malt, etc.). Furthermore, in Following the example of Škodaexport, engineering and energy industries. These 2005 the Czech company Linet exported other Czech companies have tried to ties have been maintained even after the special medical furniture, which led to keep their former market positions in collapse of Communism in the Czech some interesting contracts with local, Cuba. A traditional cooperation con- Republic, although in significantly small- and as it turned out later, also with for- tinues successfully between the Czech er volumes. This is in direct proportion to eign health care institutions. In addition, motorcycle manufacturer Jawa, whose the necessity of renovation of some spare the Czech enterprises of Škodaexport motorcycles are assembled by the Cuban parts or to the reconstructions of current and Inekon Power played an impor- company Rodar Motociclos S.A. and facilities and, at the same time, to the tant part in exporting other raw mate- with the Czech company Brisk Tábor and declining possibilities of Cuban economy. rial and of power generation facilities the Cuban De Bujías cooperating in the Because of the world economy crisis at at the same time. (As a matter of fact, production of automobile spark plugs. the turn of the millennium, which affect- the Cuban regime often barters some ed all the Latin American economies as products for different raw material, e.g. The Structure of Business well, Cuba found itself in a complicated oil, natural gas, etc., with surrounding situation and could not continue in the states, especially Venezuela and Boliv- It is virtually impossible to describe necessary investments, for example, in ia.) Those two enterprises mentioned all types of business cooperation and the energy sector. This became evident in photo: L.Kotek photo:

 On the market 22 23 2004, when the importation of foodstuffs By analyzing the available data (see Czech import from Cuba in 2006 and semi finished food products prevailed the following tables) we learned that (the 5 most important items) over the traditional commodities. After Czech companies are specialized in normalizing the economic situation in industrial products export (complex 2005, the import structure returned to technologies in general), which makes the previous trend with a growth of more than 75% of the total export to of USD of

Percentage export in the energy sector, but again in Cuba, while the import form Cuba is Thousands 1 Cigars 2,779 63.1 2006 the significance of foodstuff export composed of low income elastic priced proved true and reached the second posi- goods (i.e. alcohol, tobacco and partly 2 Rum 1,290 28.95 tion in the overall export structure. agricultural products). 3 Wine 114 2.54 4 Microwave vacu- 52 1.19 These official statistics show that since Trade Volume between the Czech um tubes 2003 Czech export to Cuba has grown Republic and Cuba 5 Processed fruit 59 1.11 every year by 30% and in 2006 even by (in millions of dollars) 57% in comparison with 2005, so that Source: Ministry of Industry and Trade of Cuba became the fourth biggest Latin the Czech Republic American destinations of Czech prod- ucts, with a share of 5.2%. Nevertheless, The growth of the mutual trade is it’s important to say that these statis- evident over the last few years and Czech Republic Czech Republic Import to the Import the to

Export the from Balance tics don’t reflect imports from the third Turnover corresponds to the necessity of Czech countries. It is very probable that some 2002 3,25 1,05 4,29 2,20 companies to look for new markets Czech products come to Cuba via some 2003 7,90 1,71 9,62 6,19 and opportunities. On the other hand, other states of that zone – especially the volume of export or investments 2004 10,93 2,38 13,32 8,55 Venezuela, Mexico, Brazil, etc. of other European countries in Cuba 2005 16,91 4,40 21,31 12,51 highly exceed the Czech results. Until Import from the opposite direction, i.e. 2006 29,78 4,42 34,21 25,36 recently, the former EU-15 made 80% from Cuba to the Czech Republic, are % 06/05 76% -8% 57% of all foreign investments in Cuba and concentrated in tobacco, alcohol and held 45% of mutual trade. Among the agricultural products, especially on two largest European business partners characteristic export articles – Cuban and investors in Cuba were, and still cigars and rum. Their popularity and Czech Export to Cuba in 2006 are, Spain, France and Italy. The trade consumption have been growing regu- (the 10 most important items) volume between the EU and Cuba larly since 1998 in the Czech Republic. exceeds (according to some estimates) As far as we know, there aren’t any two billion of dollars despite the fact

Cuban companies operating officially that the Cuban economy still doesn’t of USD of in the Czech Republic. That’s why the Percentage offer such attractive opportunities as Thousands Thousands restaurant La Bodequita del Medio in 1 Medical furniture 8,831 29.35 other countries of Latin America with Prague remains the best known Cuban their democratic regimes and market 2 Unroasted malt 4,021 13.62 “investment”. Its license was granted by economy. the Cuban authorities in the form of a 3 Milk and cream 2,727 9.29 powders franchise contract. The mentioned trade Dialogue for Business 4 Transformers 1,907 6.36 turnover between Cuba and the Czech Republic corresponds to the classic phe- 5 Motor and elec- 1,297 4.42 Supposed changes in the course of Cuban nomenon of the North-South divide tric generator politics and economy after the death of which is reflected in the low level of parts the Castro brothers make businessmen industrial exchange. It is necessary to 6 Vehicles 862 2.91 believe that the companies able to estab- 4/2007 7 Parts of pumping 677 2.27 notice that in the last few years the lish themselves in the Cuban market now UES G O import coefficient of industrial prod- devices will have a great comparative advantage L DIA

8 Motors 637 2.12

ucts from Cuba to the Czech Republic at the moment of that change. After the E P hasn’t shown any signs of growth in 9 Motorcycles 564 1.87 change of the regime, Cuba will be one EURO - contrast to the other mentioned prod- of the last countries, where a change of A 10 Motorcycle parts 556 1.85 B U ucts (i.e. tobacco, alcohol). property right from the public to the C private will take place, and this might been partially successful. Recently, we ating mechanisms that would increase be a source of huge speculative income can observe a clear trend – Cuba is turn- transparency, information exchange and for some investors. It is expected, of ing its attention to other parts of the mutual confidence, which appears unlike- course, that the revival of Cuba’s devas- world and it attracts investors from coun- ly at the moment in Cuba. The structures tated economy will attract large foreign tries like Venezuela, China and Canada, as of Cuba’s customs protection and export investments in the infrastructure, tour- well as other Latin American states. Their support programs also pose significant ism, energy industry, etc., which might companies replace, step by step, the Euro- problems. Czech businessmen can learn be very interesting for some Czech com- pean ones especially in the areas with from the experience of companies already panies as well. growing opportunities, e.g. in the min- operating in Cuba or use the services of ing industry. Also the reinforcement of the Czech-Cuban Chamber of Commerce, This is possibly one of the explanations, economic cooperation with the leftist established not long ago in order to pro- why the Spanish and French govern- governments of Bolivia, Venezuela and mote the development of mutual busi- ments prefer the policy of dialogue with Nicaragua is doubtless. ness cooperation. All of this puts aside the Castro’s regime at the price of certain the ethical dimensions of investing in compromises, associated with the possi- The examples of some Czech and foreign Cuba presently, but that isn’t the object bilities of investment and protection for companies prove that the trade flows are of this summary. the European companies. The goal of this not influenced only by political conflicts paper is not to judge or evaluate these but also by supply and demand, which particular policies toward Cuba; however could create large opportunities for sever- Dr. Traian Urban, Faculty of Social we can claim that, because of the disunity al Czech companies. However, they must Sciences, Charles University in European policies toward Cuba and the take into account many problems at the changes in the global political-economic beginning that are difficult to get past. context, this policy of dialogue has only A larger trade volume would require cre-

Cuba and Spain – Relations and Contradictions Oscar Espinosa Chepe

he ties between Cuba and Spain Perhaps this was due to the existing former Spanish soldiers who partici- have deep roots. Besides Puerto strong blood and cultural links, the pated in the wars, and yet it never TRico, Cuba was the last Spanish col- participation of Spaniards next to the created an obstacle for the respect and ony in Latin America after thirty Cubans in the fights for independence affection of Cubans, who have always years of war with intervals of peace. or Jose Marti’s inclusive sermons, since been proud of their origins. The Cuban victory in 1898, obtained friendly feelings have always existed with support from the United States, between Spain and Cuba. Proof of this Because of this shared history, when believed in the basis for independ- is can be seen in the fact that after there has been contempt and scorn ence. However, in spite of the bloody the founding of the republic in 1902, towards those who fight peacefully battles it should stand out that ran- a considerable migration arrived from in Cuba for liberty and democracy cor never nested in the soul of the the Iberian peninsula to the island, under extremely difficult conditions in

 Creoles. between them were more than a few recent times, the offenses hurt much 24 25 more than if they originated from the tor above Canada and 182 Spanish Certainly, commerce, tourism, and governments of other countries. One companies are present on the island, foreign investment can be factors for must clarify that these unfortunate among them Altadis, Agbar, Meliá, progress, it might be facilitating tech- actions have not come from the Span- Iberia, Repsol, Banco Sabadell y Corpo- nology, capital, markets and above all ish society, where Cuban democrats ración Financiera Habana-Caja Madrid. contacts between people, which is in have always received support, under- At the same time, Cuba’s debt with no way objectionable and can include standing and solidarity. Spain has been recently calculated at receiving reasonable benefits from the $1.4million. development of those activities. Fur- It would be fitting to ask ourselves why thermore, in Cuba’s case, these activi- the current Spanish government has The Spanish has a substantial pres- ties could strengthen ties to demo- taken this approach. Why is the Span- ence in essential sectors, like tourism, cratic countries and their experiences, ish Embassy in Havana the least active where it fundamentally controls half as a means of contributing towards in taking in Cuban dissidents? Why did of the operations through the Meliá a greater respect for human rights Chancellor Miguel Ángel Moratinos not company with 22 hotels and near- and the future establishment of the meet up with the opposition nor give ly 10,000 rooms out of the 44,000 norms of respectful coexistence. Nev- no public gesture toward the prison- that exist. In the promising petrole- ertheless, when economic relations ers of conscience and political during um industry, Repsol has financed and are only marked by the anxieties of his visit to Cuba? This attitude was arranged offshore drilling. Altadis has profits they become miserable exercis- repeated by Mrs. Leire Pajín, the Sec- a decisive role in the cigarette manu- es, leaving to one side the principles retary of State, during her recent stay facturing industry by means of joint accepted by governments in their own with her statements that Spain’s col- businesses ventures with Cuban com- countries and in international agree- laboration was not connected to human panies. ments (The International Labor Organ- rights issues in Cuba. Why would a pro- ization, the Counsel of Human Rights, claimed socialist government and a rep- Spain’s activities are conducted in an etc.) instead they constitute protected resentative of a party that suffered so environment of absolute labor peace, abuses against a defenseless people. much under the pro-Franco totalitari- guaranteed by a regime that prohib- anism take such an approach? Why the its the free unionization of workers, As Cubans, we deserve that this posi- eagerness to not only to change Spain’s the right to strike and that demands tion be reconsidered by the Spanish political position toward Cuba, but to the contracting of the employees by authorities, in order to execute a more endeavor that the European Union act the foreign companies through state harmonious politics with the tradition in the same way serving an anti-dem- businesses that charge in hard cur- of its society, certainly distant of ego- ocratic state and a known violator of rencies while paying workers sala- tistical positions. It should be recalled human rights that has led Cuban soci- ries in Cuba’s depreciated national that the Sakarov Prizes to the Liberty ety to the most absolute economic, currency and only hiring people that of Conscience, which were awarded social and moral disaster? the government considers politically by the European Parliament in 2002 suitable. It is unnecessary to say that to Oswaldo Rustic and in 2005 to the Possibly the answers to these ques- anyone that expresses some criteria or Ladies of White, were proposed by tions can be found in the high level demanding attitude is removed imme- Spanish representatives, and that sim- of priority that Spain’s commercial diately without any rights. Addition- ple citizens have consistently shown and economic interests have in Cuba, ally, the Spanish companies and those their permanent solidarity with Cuba which seem to be above their com- of other countries involved in tour- by striving to reach peacefully for mitments for their respect of human ism are in concert with the tourist a reconciled, democratic Cuba with rights, and particularly to the rights apartheid imposed by the Cuban gov- social justice. of workers. ernment, so that no Cuban can rent a room, although he have currencies to La Habana, 26th October 2007 Cuba is the third largest destination do it. The cooperation with the repres- 4/2007

for Spain’s products in Latin America. sive politics of the state is such that UES G O

In 2006, their exports rose to a record in 2005 the Hotel Meliá in Havana oscar espinosa Chepe, Economist L DIA

and Independent Journalist

of about $800million, equivalent to suspended a contract hours before a E P an increase of 20% from 2005. Since reception arranged during a national EURO -

August of 2007, sales have increased celebration by the Czech Republic in A B U another 15%. Spain is the main inves- which dissident would participate. C Etecsa – Telecom A Marriage of Convenience Juan González Febles

he rates for making long-distance uals who disagree with the Cuban ing to which foreigners may hold up phone calls to and from Cuba are dictatorship. Furthermore, Etecsa to 49 % of Cuban state-run compa- Tthe most expensive in the world. All has been known to temporarily dis- nies. Apart from establishing that doubts that might arise can be dis- connect telephone service to oppo- companies may be shared, this law pelled by one single look on the list nents and political enemies of the also allows that profits are divided of applicable tariffs. In addition, the regime at the request of the State between foreign investors and Cas- prices for wireless telephone services Security police. tro’s totalitarian state, which acts as are the highest in the world. Yet both the boss. In this way, foreign capi- services are paid in a freely convert- tal gets involved with Cuban gov- ible currency. ernment and actually participates The world’s worst in its unusual business and social Wireless telephone service is subject paid engineers, policies. to limitations. Legally, it may only be provided to foreign residents and technicians and Some time ago, Etecsa organized a to those who had obtained a formal support staff in the meeting with Telecom Italia. The authorization from the Cuban Gov- Italian multinational accepted the ernment. Access to the internet and telecommunications Cuban’s offer and cast its lot in the web is controlled and limited in sector are employed by with the Castro brothers’ dictator- a similar way. ship by acquiring more than 30 % Etecsa and live in Cuba. of the state-run telecommunication The world’s worst paid engineers, company. technicians and support staff in the telecommunications sector are Through this close cooperation Tel- employed by Etecsa and live in Cuba. Etecsa shares have been made avail- ecom can use of the worst paid staff Etecsa is the state-run company in able to foreign capital in order to in the world. And of course, their charge of internet services, which has penetrate the international market personnel enjoy the status of being a become extremely efficient in con- and to obtain sophisticated telecom- private employer in a country where tributing to the unlimited repression munication technologies, advanced workers do not have the privileges that the Government imposes upon hardware and software designed of freedom of association and the Cuban society. for controlling and improving their right to go on strike. One must not network. forget that Cuba is a slave island There is plenty of evidence that the where workers and trade unions are company is involved in the illegal Foreign shareholding and invest- not protected by any of the Interna- eavesdropping on opponents, jour- ment have become regulated by the tional Labour Organization’s laws and

 nalists, librarians and other individ- Law on Foreign Investment, accord- regulations. 26 27 Furthermore, Telecom is allowed to there had been a meeting of oppo- the swoops that had been organized profit from the high tariffs that Etec- nents who had come to commemorate by Cuban criminal police in order to sa imposes in and outside Cuba. While another anniversary of the Univer- deactivate the satellite dishes that the Cuban government is willing to sal Declaration of Human Rights. The people are installing all around the take advantage of the capital and gathering was fiercely suppressed by country. advanced technologies provided by the Security of State that used cars the company in return for their enor- and staff of Etecsa. These are clear examples that as a mous profits. partner of Etecsa, Telecom partici- The police action was denounced pates in the repression of Cuban soci- Some facts justify and illustrate such by those who had witnessed it. The ety. What we are dealing with is but declarations that incriminate to Tel- Cuban independent journalist Carlos a kind of marriage of convenience in ecom. On the 10th December 2006, Ríos had been present at the site and which Cuban people lose and Telecom the vehicles of Etecsa were used as in his testimony for the televisions wins. The whole issue is just as sim- police vans by the Security of State. It from around the world he clearly con- ple as that. happened in the Villalón Park in the demned the role Etecsa had played in Havana district of Vedado. the event. Juan González Febles In the park, which is situated in front More recently, technical staff and of the building of Cuban UNESCO, vehicles of Etecsa have taken part in

Michael Moore’s documentary to be censored in Cuba Dr. Darsi Ferrer

here is no doubt that Cubans living Fidel Castro is known to have sought If they, as well as other dignitaries, on the island will not be allowed the services of a Spanish doctor when can take full advantage of all the priv- Tan opportunity by the authorities to the state of his health deteriorated. ileges and recourses that their country see the documentary “Sicko” directed Only several years ago, Abelardo Ramí- offers them, why do they show so lit- by the renowned film director and ide- rez, former Vice-Minister of Health care, tle confidence in the competent revolu- ological ally Michael Moore. had been attended to in France, where tionary medicine as soon as they face he had also undergone surgery for health problems? As contradictory as it may seem, the gastric cancer, of which he later died. underlying idea of the film, which is Similarly, the neurosurgeon Domingo, The Cuban health care system can to discredit the US health care sys- who is a member of Castro’s personal be defined by one word: chaos. Most 4/2007

tem and to highlight the benefits medical staff and head of education at health care institutions are falling UES G O of its Cuban counterpart, is deemed CIMEQ hospital, turned to British oph- apart and it is obvious that the build- L DIA

subversive in Cuba since it rests on thalmologists when he needed an eye ings of such institutions are run- E P downright lies and does not reflect surgery and what is more, he keeps down and the conditions in them just EURO - at all the dramatic health care situa- making occasional visits to the British dreadful. A B U tion in Cuba. center as a follow-up. C If you are admitted to hospital, you cable television and recorded music, in 4 to 6 surgeries and – as a result – have to bring not only your own food and there are supplies of all necessary is incapable to provide such services. but also pajamas, bed clothes, glasses, equipment, medicines and resources. cutlery, buckets and occasionally – in The main problem that the health care extreme cases – patients must even What the regime falsely calls “inter- system has to face is the lack of moti- bring their own light bulbs if they national missions” is simply the only vation of medical professionals result- want light and some cleaning mate- possibility for Cuban medical workers ing from their incapability to satisfy rial to make up for the insufficient to gain a few dollars to solve some of even the basic needs for the extremely hygiene during their stay in hospital. the most urgent problems that living low salaries they get, which leads to You also have to secretly obtain med- in Cuba entails. a high rate of iatrogenic errors, short- icines, reactives and other material comings and acts of neglect in daily needed for your treatment. In exchange, the “internationalists” practice. In the meantime, the legal pay the price of being exploited as system in force has not thought of In the whole country there is a profound cheap workforce and forced to par- indemnifying those who have been lack of medical professionals. Generally injured due to medical errors. speaking, people have limited access to basic services such as examinations by Another factor that works against the specialists or a simple ultrasound, X-ray Pharmacies do not have motivation of medical workers are the or ECG examination – for any patient it enough supplies and existing limits to their development: is necessarily an odyssey. Not to men- they are denied access to internet, free tion some more sophisticated procedures lack the basic drugs like participation in international courses such as magnetic resonance or compu- analgesics, antacids, and events, they have no access to ter tomography – that would be talking updated medical literature or any pos- about privileges that only few people vitamins and minerals, sibilities of connection with scientific can enjoy. The situation resembles the antibiotics. Only those advancements achieved in the world. times of the Apartheid in South Africa: Cuban people bear the consequences who sell their products In fact, thousands of physicians and of segregation that has been officially for dollars to foreigners other medical workers with aspira- implemented by the regime. tions for professional development have are not confronted been waiting for years to be „liberated“ Foreigners, members of the nomen- with such problems. and be able to leave the country. Such clature and high-ranking Army offic- people are in a position of hostages of ers can take advantage of excellent the regime and many of those whose medical services in first-class health families live abroad are traumatized by care institutions such as: La Clínica ticipate in manipulation of conscious- being separated from their families. Internacional Cira García, La Clínica ness in the places they are sent to and Internacional de Retinosis Pigmentar- promote the totalitarian model of the It is difficult to understand that in our ia, El Centro Internacional de Restau- Marxist-communist type. time Cuban people cannot take advan- ración Neurológica (CIREN), El Centro tage of endoscopic surgery or count de Investigaciones Médico Quirúrgicas One of the major achievements fer- on simple functional examinations of (CIMEQ), La Clínica Koly, the best parts vently boasted about in abroad is the the respiratory system when dealing of the Hospital Almeijeiras or Hospital Family Doctor-and-Nurse Program with pulmonary diseases; that Cuban Frank País and other institutions. ascribed (as everything in Cuba) to women do not have an opportunity Fidel Castro. The program constitutes to undergo large-scale examinations Unlike in institutions for common peo- the basis of primary care; however, to detect breast cancer or cervical ple, the services provided in hospitals most surgeries have for years been and uterine cancers; that there is no such as the ones stated above (to which highly inefficient or have been even way how old people and sickly could Cubans do not have access to) are of closed down due to lack of staff. The procure orthopedic appliances such as first-class quality, their medical staff authorities do neither admit their dis- walking sticks, crutches, wheelchairs, is highly qualified and professionally appearance nor do they seek alterna- fowler beds, whose absence they usu- trained, there are excellent conditions tives to substitute them. At present, ally have to solve by ordering such

 and adequate hygiene, they provide one family doctor attends to patients equipment from abroad. 28 29 Abandonment of programs for vector dollars to foreigners are not confront- ed to the rate of suicides, malnutrition, control, lack of hygiene with respect ed with such problems. low birth weight and other inconven- to omnipresent rubbish dumps, bad iences, they even treat such data as a quality of drinking water lacking ade- By juggling statistical data, the authori- state secret. quate treatment and in many places ties of the regime are trying to empha- contaminated by sewage, insufficient size some aspects while intentional- To sum it up, it is curious that Michael sewer systems and frequent ruptures ly concealing the underlying facts of Moore has chosen Hospital Almeijeiras of sewage water pipes, all this has each indicator. They boast of the low to demonstrate the excellent state of converted the country into a nest of infant mortality rate without explain- Cuban health care system. However, it diseases. All year long there are epi- ing that it has been achieved by a ruth- does not surprise anybody in Cuba. It demics of dengue fever, leptospirosis, less pursuit of the policy of supporting is logical that it wouldn’t have been hepatitis, meningoencephalitis or of and carrying out abortions. Nor do be possible to film the spiteful docu- parasites, scabies, lice. they divulge that children over 1 are mentary in an ordinary tumbledown no longer of political interest and are Cuban hospital. A multiple of things are lacking, no longer given baby food when they including all types of medicines, even are 3, and reaching the age of 7, they Havana, Cuba, August 6th, 2007. the essential ones. Pharmacies do not are robbed of their milk. They declare have enough supplies and lack the that life expectancy has grown but by basic drugs like analgesics, antacids, no means do they want to speak about Dr. Darsi Ferrer, Director of Health and vitamins and minerals, antibiotics. the dreadful quality of life of old peo- Human Rights Center “Juan Bruno Zayas” Only those who sell their products for ple. They not only falsify the facts relat-

Cooperation between Cuban and Slovakian Experts Ivana Kullová

he Economy of Cuba – Current tion for cooperating was in no way there are no alternative sources of Conditions, Recommendations favourable. In Cuba, you may only information available, many people “andT Prospects”, which was published find printed and electronic media in Cuba believe that that the living by the Slovakian civic association that are controlled by the Govern- standard in Slovakia is now worse People in Peril (Človek v ohrození) in ment and their main purpose is to than in 1989. August 2007, is a result of more than broadcast propaganda. And accord- two years of cooperation between doz- ing to this propaganda, the coun- However, this is not true about the 4/2007

ens of economic experts and Cuban tries of Central and Eastern Europe, people from independent intellec- UES G O

independent economists. which once used to profess the same tual circles, because many of them L DIA

ideology as Cuba, got incorporated in have been paying attention to the E P Due to Castro’s huge and monstrous the world of capitalism and are now evolution of Central European coun- EURO -

efforts to keep his people on the faced with enormous social injus- tries since the early 1990s. Yet obvi- A B U island isolated, our starting posi- tice and fading economies. Since ously, in order to follow what has C been happening, they have needed would like to change it. Therefore, Slovakian analyst from the F. A. Hay- information from abroad, and Peo- we planned the following project: An ek Foundation, was faced with sev- ple in Peril is one of the organiza- expert from Slovakia would travel eral inconveniences. His interpreter tions that have been sending them to Cuba in order to give a lecture and guide was suffering from health books or analyses or that have even on the change of Slovakian econo- problems and Fidel Castro, too, got been organizing visits of experts to my after 1989 and would observe seriously ill and transferred his pow- Cuba so that they could give and the conditions on the island. Back er to his younger brother Raúl. And explain some examples of how dif- home, this expert would write an because of this new and extraordi- ferent spheres of a country may be analysis about current situation of nary situation, several meetings that transformed. Cuban economy, giving recommen- had been planned could not actually dations for future. And the Cubans take place. However, providing information who would have attended his lecture about our Central European experi- would be expected to carry out the But despite adversities we eventu- ence has not been our only objective. same task. ally achieved to gather eight essays The aim of our efforts has been to by Cuban authors, and we were very encourage people in Cuba to express Yet, of course, nothing could come pleased with their qualities. Previ- how they perceive the situation in out precisely according to our plans. ously, we had been cooperating in a their own country and how they During his visit, Matúš Pošvanc, a similar way with Cuban independent scholars and many of their works had been philosophical essays based on abstract ideas rather than texts of analytical character. On the other hand, the analyses by the independ- ent economists abounded in concrete ideas and recommendations – maybe because many of them were written by renowned and experienced authors such as Oscar Espinosa Chepe: “Prior- ity shall be given to agriculture that should be encouraged by a structur- al reform. In order to achieve that farmland be reasonably and efficient- ly used, it should be handed to inde- pendent collective farms and private farmers. Depending on its condition and on social agreement, farmland might be sold or rented with the option of later acquisition. Farmers could also be granted usufruct land rights.”

However, even those independent economists who do not have much experience with analyses and who wished to remain in anonymity, actu- ally offered in their work many con- structive and relevant ideas. And what makes their texts interesting and valuable is not that is was the first time they tried to formulate their ideas about Cuban economy but

 rather that their ideas are based on 30 31 their knowledge of transformation optimism. The economists are not Prospects”, you will find six out of in Slovakia: “In Slovakia, restrictions optimistic in describing the everyday the eight essays written by Cuban imposed by the government slowed life in Cuba, but are optimistic and authors and a detailed analysis of down growth in certain sectors. Yet, positive about the potential of Cuban Cuban economy by the Slovakian Cuban people are not used to seeking economy and about the ability of economist Matúš Pošvanc. And sym- solutions by themselves, and that is people to obtain maximum from the bolically, there is a prologue written why for some time the solution to our potential change and from the open- by Ivan Mikloš, the former Deputy economic problems will be demand- ing of Cuban market: “Cuban society Prime Minister for Economic Affairs ed from the state. But on the other has a great spirit of enterprise and (1998 – 2002) and Finance Minister hand, in this way, the government people can work very hard – and once (2002 – 2006), who is considered as might yield to public pressure and there will be a real and legal possibil- the “architect” of Slovakian economic start imposing unnecessary restric- ity of running business and once pri- transition. tions which would hinder personal vate property will be respected, there and social development.” will be a boom of small and medium- sized enterprises.” Ivana Kullová, Project Coordinator for Another positive feature that should Cuba, Človek v ohrození (People in Peril) be emphasized when considering the In the “Economy of Cuba – Current works by our Cuban authors is their Conditions, Recommendations and

Excerpts from the book “Cuban economy”

“Undoubtedly, for the transition to tions which would hinder personal and “Priority shall be given to agricul- have a peaceful character, good educa- social development.“ ture that should be encouraged by a tion and health care must remain free Contributor no.2, Pinar del Río structural reform. In order to achieve although there might appear private that farmland be reasonably and effi- interests in this field. Should this not “As far as restitution is concerned, the ciently used, it should be handed to be respected, we would have to face a protection of private property certainly independent collective farms and pri- strongly adverse response that in times offers security to the investors and is vate farmers. Depending on its condi- of democratic freedom would lead to a basic condition for economic devel- tion and on social agreement, farm- incidents of public disorder and strikes opment, however, in Cuba this issue is land might be sold or rented with the the magnitude of which might be quite extremely delicate. While in Slovakia, option of later acquisition. Farmers serious. And for similar reasons, the the government first opted for return- could also be granted usufruct land system of social security cannot be ing the properties to their original rights. (...) And apart from this agrar- neglected either.“ owners, in Cuba we should begin by ian policy, there is a need for abolish- F.M., independent economist, Holguín forming and consolidating a certain ing the current system of rationing, national economic class, by establish- because from the practical point of “In Slovakia, restrictions imposed by the ing norms and by holding debates. The view, this system not only provides government slowed down growth in legislation which would come out of help for many people who do not need certain sectors. Yet, Cuban people are the talks should give priority to com- it, but it is also responsible for a vast not used to seeking solutions by them- pensations rather than restitutions. and expensive bureaucracy that is a 4/2007

selves, and that is why for some time Claims for historical properties should source of corruption and inequalities. UES G O the solution to our economic problems be resolved on the basis of adequate And to compensate for this measure, L DIA

will be demanded from the state. But laws that would provide for just deci- retail prices should be deregulated. E P on the other hand, in this way, the gov- sions at courts.” Maybe in the very beginning some EURO - ernment might yield to public pressure Dimas Castellano Martí, independent essential items, such as milk, rice A B U and start imposing unnecessary restric- economist, Havana or bean, might be an exception and C might be subsidized until the produc- proud of products the quality of which market reforms are carried out quick- tion increases.” could be classified as superior.” ly and are socially responsible, Cuba Oscar Espinosa Chepe, independent Contributor no.1, Pinar del Río may overcome the difficult transition economist, Havana period soon and the citizens will not “The reforms that will be gradually car- suffer its negative impacts. For it to “Cuban society has a great spirit of ried out need to follow a certain scale happen, it will be necessary to estab- enterprise and people can work very of priorities, otherwise gradualism may lish the conditions for competition hard – and once there will be a real and turn into immobilism. Considering the and for foreign investment, to protect legal possibility of running business and experience of the 1990s, we might say private property, to introduce particu- once private property will be respected, that the economic opening could very lar price mechanisms and to eliminate there will be a boom of small and medi- well start by promoting small enterpris- political influence from the economy. um-sized enterprises. These capacities es and could be one of the first reforms. This whole period may be marked by of Cuban people could be seen in differ- By promoting small enterprises, these certain euphoria over the change, peo- ent periods of our history, when the eco- would become the engine of microecon- ple will be prepared for the transition nomic conditions were very unfavour- omy and would serve as a “locomotive” and will face it more easily. Should the able yet people always somehow proved for the rest of economy.” reforms be carried out more slowly their great ability to recover. The best Contributor no.3, Pinar del Río and with less responsibility, the trust example could be seen in 1994. Once of people in the whole process would the Government allowed citizens to run “Among the essential conditions for the be shattered.” their own business, thousands of fam- changes in Cuba to be successful from Matúš Pošvanc, analyst of the F. A. ily enterprises appeared. The majority the consumers` point of view will be Hayek Foundation, Slovakia of them were offering better products the degree and the speed of orientation than the state and some could be even towards market economy. If the main

CUBAN WORKERS IN THE SHIPYARD OF CURACAO Clara Olivia Ocampo de Álvarez de La Campa

t the end of 2004, we learned very Back then, José María was the main of the Working Group on Trafficking disturbing facts from different columnist of “El Periódico”, a Span- in Human Beings in the Netherlands Asources that were related to a group ish-written weekly which is published Antilles, a body which was set up by of Cuban workers who had come to for Hispanic emigrants living in the governmental and non-governmental the island of Curacao in the Nether- Caribbean territories of the Kingdom organizations and which is fostered lands Antilles to work in the shipyard of the Netherlands and the pages of by the International Organization for known as DOK. When I say “we heard”, which have on several occasions con- Migration. I mean me and my husband José María demned the cases of exploitation and Álvarez de la Campa, who has been mistreatment of immigrant labour. On the 10th January 2005 and after one of those to condemn this case I was one of the contributors of “El “El Periódico” published several arti-

 from the very beginning. Periódico” and was also a member cles on trafficking in persons, the 32 33 editorial team of the weekly were most dangerous work – they were Hernández, who left their work on contacted by three Cuban men who asked to work at the highest or most Friday, January 7, 2005. The photos had been working in the shipyard in confined and hottest places. Moreo- were provided by the Pan American Curacao. They told us that the defi- ver, their freedom to move was lim- Security Service, a private Venezue- nition in the articles corresponded ited because Rosana Grau, their staff lan company which runs a subsidi- to what they had been experienc- manager whom they considered to ary in Curacao. The guards of the ing in the shipyard and that they be an agent of the Security of State, residential area told our friends that therefore felt to be victims of traf- had withheld their passports. They the Venezuelan company had asked ficking. In the weekly, this phenom- were not allowed to meet with peo- them to call the phone number indi- enon had been described as follows: ple who would disagree with the cated on the reverse of the photos We speak of trafficking in human Cuban government, were forced to should they see the men, because beings when people are transferred supervise one another and could they were dangerous criminals who from one place to another in order only go out together in a group. had escaped from prison. My husband to be exploited, when they are Since the shipyard belongs to the took a car to drive around the island forced to work for many hours in state, with their work, these men and found out that copies of the insecure conditions, are paid little were fulfilling Castro’s “mission” to photos had been distributed to many money or are not paid at all, when pay his debt to the government of parts of Curacao. We were alarmed their papers are withheld from them, Curacao. Cuban penal code provides by the fact that a private company when their working conditions are for four to eight years of prison for should carry out such a search and different from the conditions they those who shall fail to their mission we tried to complain to the authori- were promised at their place, when abroad, and that is what the work- ties of Curacao, however, our com- they are forced to work by means of ers were constantly reminded of by plaint was rejected. coercion and threats, etc. Alberto the representatives of the Cuban Justo Rodríguez Licea worked as a government. The accusations related to these ship maintenance engineer and left workers were first published on his job at the end of 2004, and Luis Alberto Justo Rodríguez Licea told Thursday, the 13th January 2005, in Alberto Casanova Toledo, a naval us that he and another Curacao “El Periódico” and they also appeared systems fitter, and Fernando Alonso worker had had a work accident. on different websites. Later, some Hernández, a welder, left the ship- Alberto was sent to Cuba to recover articles about this case were pub- yard on January 7, 2005. and they promised him compensa- lished by other local or internation- tion. However, he has never been al newspapers, such as by the Dutch These three Cuban workers told us indemnified, and moreover, in Cuba, Algemeen Dagblad or the American they felt cheated, because in Cuba his case was not treated as a work Miami Herald. they had signed a contract with the injury but as an illness. Therefore, National Shipyard Company, but later he was paid less salary than he was My husband and I interviewed sev- in Curacao those terms had not been supposed to, and when he returned eral employees of the Curacao Ship- respected. According to the contract, back to work he learned that the yard, both from Curacao and Colom- they would work six days a week and Curacao worker, who had had the bia, and they confirmed that what we would have one day free. However, same accident, actually did receive had been told by the Cuban “desert- they were forced to work for fifteen the compensation. ers” was true. We referred to Guido to thirty consecutive days without Rojer, who was working in the finan- any time off. As far as working hours On Monday the 10th of January 2005, cial department of the shipyard, and are concerned, the contract provided the very same day they spoke with he told us that there indeed was for a maximum of twelve hours a day, the editorial of “El Periódico”, the some “debt”, because in 1989, Cuba nevertheless, they had to work for three Cuban workers fled from Cura- had sent one of its dredging ves- fourteen to sixteen hours, with the cao on a boat. On Wednesday evening, sels to be repaired in Curacao. The 4/2007

most frequent shift starting at 3 P.M. two days later, some friends of ours repairs cost 13 million dollars, but UES G O and ending at 7 A.M. For their work told us that the security at the the Cuban representative said they L DIA

they were paid twelve dollars a day. entrance to one residential neigh- had no money. Therefore, while the E P bourhood had shown them photos people from Curacao employed by DOK EURO -

The workers from Cuba complained of two “deserters”: Luis Alberto Casa- earn from fifteen to twenty-five dol- A B U that they had been forced to do the nova Toledo and Fernando Alonso lars per hour, workers from Cuba are C paid twelve dollars for sixteen hours ver, the GIRSCC also condemned the supposedly had to share rooms for and the rest of their money is used situation at its international con- two or three, etc. And later, when to pay the debt. ferences. the topic was disappearing from the agenda, they once again had to work In this case we are dealing with Thanks to the efforts by Cubo Futuro, for fourteen to sixteen hours with- the violation of several internation- the three workers who had escaped out any time off, they had to share al conventions of the International to Colombia could travel to the Unit- their rooms with more people and Labour Organization. The standards ed States, where the GIRSCC would the food worsened. After the law- that are not respected are: Hours of support them in suing the Curacao suit in Miami in August 2006, the Work (Industry) Convention of 1919, Shipyard for forced labour in front conditions improved. Nevertheless, Weekly Rest (Industry) Convention of American courts. Cuba Futuro, too, in December, the lawsuit was for- of 1921, Discrimination (Employment began opening debates on the issue gotten and the workers were once and Occupation) Convention of 1958, with different Dutch authorities, how- again asked to work from fourteen Workmen’s Compensation (Accidents) ever, at first the representatives of to sixteen hours. These three work- Convention of 1925, Equality of Treat- ers, too, were persecuted by the ment (Accident Compensation) Con- Cuban Security of State, and local vention of 1925, and Migration for authorities were ready to extradite Employment Convention (Revised) In late March 2007, the them to Cuba. of 1949. Dutch Antilles and the From late January to early March We met with the representatives of Netherlands decided to of 2007, Liduine Zumpolle, a rep- local authorities and asked them to reject visas for Cuban resentative of Cuba Futuro, visited focus on the case and to carry out Curacao and launched a new investi- some investigations. We also filed workers who were gation, stimulating others to seek a a complaint to the Working Group going to Curacao to definite solution to the issue. There on Trafficking in Human Beings. were talks both with the authorities Although the Curacao Island Council work in order to pay on the island and with the central did make a visit to the shipyard and the debt that Cuban authorities of the Netherlands Anti- ordered that several investigations be lles. There was also a press confer- conducted, we could feel that the local government owes to the ence, debates in radio and television authorities were interested more in government of Curacao. programs, and the newspapers pub- recovering the debt than in the situa- lished different interviews and arti- tion of Cuban workers. cles related to the topic. The condi- tions of Cuban workers once again Furthermore, we referred to several improved, and this time the change foreign organizations that might be the Foundation were told that from was quite significant – they were concerned about the issue, among the Netherlands nothing could be paid more money for their work and them the Foundation Cuba Futuro done because the Dutch Antilles were obviously enjoyed more freedom of based in Holland or the Interna- autonomous. movement. Nevertheless, despite tional Group for Social and Corpo- these improvements, their conditions rate Responsibility in Cuba (GIR- In 2006 there were other three were not yet meeting the standards SCC) headquartered in the United desertions. This time, the work- of international labour and human States. These organizations indeed ers told us that when the topic had rights conventions. addressed this case with a great deal started to be discussed by journal- of interest, condemning it in front ists and by the Curacao Island Coun- Therefore, and also because she of other international bodies. Lidu- cil, Cuban workers has seen their was concerned that after some ine Zumpolle from Cuba Futuro pre- working hours reduced, had been time the workers might once again sented the topic to the Session of the granted one or two free days per return back to the same situation UN Human Rights Council in Gene- week, the food had improved and the in which they had been before, va and the GIRSCC introduced it to workers had been moved from their Zumpolle returned to Holland and the Inter-American Commission on cabins to sleep in a hotel. Howev- soon after that organized high-lev-

 Human Rights of the OAS. Moreo- er, in that hotel four or five people el debates in royal circles, pinpoint- 34 35 ing their responsibility for the issue. as for the last three workers who Tomas Bilbao from the Cuban Study Although the Netherlands Antilles had “deserted”, they were granted Group, William Navarrete from the are autonomous, foreign affairs are permission to stay and work in the Association for the Third Cuban excluded from their powers. There- Netherlands Antilles. Republic, the organization People in fore, the question of granting visas Need, the staff of El Periódico and for Cubans to be able to work in These achievements may be attrib- other media and a long list of web- Curacao and the question of meet- uted to Liduine Zumpolle and her sites are but a few of those who ing international labour and human crucial talks with the highest Dutch played an important role in the rights conventions, signed by the representatives, however, had it whole process. Should I name all Netherlands, lie beyond their scope. not been for the articles and inter- who have helped, this would be an Thanks to the efforts by Mrs. Zum- views in the mass media, for the article without end. This case clear- polle, the topic came to be discussed conferences and debates with inter- ly shows that unity is strength and by the Dutch parliament. In late national organizations or for the that we should never stop condemn- March 2007, the Dutch Antilles and lawsuit, certainly, the authorities ing injustice – even if it seemed that the Netherlands decided to reject would have not been as willing to no one is listening. visas for Cuban workers who were listen and to respond. Nothing could going to Curacao to work in order have been achieved, had it not been to pay the debt that Cuban govern- for the work and efforts of a great Clara Olivia Ocampo ment owes to the government of number of people and of numerous de Álvarez de La Campa Curacao. Those who were already organizations that were all keeping living and working in Curacao were the issue on the agenda and did not all gradually repatriated. In this allow anyone to forget it. Liduine way, one story of exploitation and Zumpolle of Cuba Futuro, Joel Brito intimidation came to an end. And and Aníbal Cabrera from the GIRSCC, photo: Oliviaphoto: Ocampo 4/2007 UES G O L

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E P EURO - A B U Shipyards in Curacao C People that read, can’t do wrong Ellen Weber and Folkje Lips

wo Dutch volunteers of IKV Pax is by encouraging Dutch tourists to take She and her husband, José, used to live Christi traveled through Cuba this books along during their holiday, which in Guantánamo, where they worked as Tsummer to visit independent libraries. they can donate to one of the many independent journalists. However, one This are impressions from their visits. independent libraries on the island. For day without warning they were ordered more information on the campaign itself, to leave within 24 hours and as a result Our initial contact with the Independ- see the article in the January edition of moved into his parents’ place in Sibanicú. ent Libraries in Cuba was through Gise- this magazine. However, the people in this town turned la Delgado Gablón, who coordinates the out to be very communistic. “It’s very project in Havana. Although her sched- In addition to the tourist campaign, IKV difficult to be ‘of the other side’ here”, ule is very busy, she and her husband Pax Christi sends volunteers to Cuba. Claudia explained. When José wrote the received us with warmth and hospital- They travel to the more distant libraries, words ‘freedom for political prisoners’ on ity. Gisela’s husband is Héctor Palacios which tourists hardly ever visit, in order the wall of his house, their neighbors Ruiz, one of the 75 people arrested for to bring them desperately needed books. smeared tar on it and threw rocks at political reasons in 2003, and who is This past July, we were the lucky ones their house. As a precaution, their win- now on parole for health reasons. In able to spend a month on a road trip, dows have been boarded up ever since. explaining why the libraries project is driving through remote Cuban towns José and Claudia then decided to start an so important she said: “Cubans are capi- and over bumpy roads. independent library, to show people that tal for the Cuban state. Working abroad, they mean no harm. a physician makes eight hundred dol- One of the first libraries that we visit- lars a month for the government. This ed was in Sibanicú, a small town on a Claudia’s fervently believes that “people modern slavery can only be eradicated dirt road. We initially had trouble find- that read, can’t do wrong.” if people take a stand and try to change ing the house. When we stopped and this situation. And they will only do asked for directions from a man who Not everybody shares this idealistic this if they have access to objective didn’t believe our little white lie, that thought though. Not long after the acto information, if Cubans get informed we’re looking for el flaco, the thin man, de repudio, José was arrested in the mid- about other ways of life.” Although we thought we were caught. We hit the dle of the night. Four officers entered she and her husband have faced many accelerator and by coincidence found the the house and threw him on the ground. difficulties and feel deeply oppressed, right street. A woman with once dark They kicked him, right in front of their they are still hopeful. As Gisela pointed hair, Claudia, opened the door and quick- ten-year-old son and dragged him out of out that “our library project is already ly showed us in. She immediately asked the house. Officially, he should be out of reaching over two million people.” “if the neighbors saw us?” She soon prison in September of this year. Claudia directed us to the library, which con- holds her breath. We were impressed by IKV Pax Christi actively supports the sisted of two small shelves with books her story and left her books, a recharge- Independent Library project in Cuba, in her tiny bedroom. We were struck by able flash light to use during one of the primarily by bringing books to the inde- the numerous yellow posters and stick- many power cuts, a short-wave radio pendent libraries. One of the main ways ers with the word ‘CAMBIO’ (change) on and a letter for her husband in prison.

 in which we deliver books to the island, them. She told us her tragic story. She was very emotional about our vis- 36 37 it; we were the first foreigners to ever work, they took everything from him. night. “His door is always open for peo- knock on her door. She knew for sure He couldn’t take it anymore.” It nearly ple who want to inform themselves.” that José would be happy to hear that broke Carlos that the government has two Dutch girls care about his fate. tried to get to him through his family, By the end of our trip, we managed to but he has been able to go on because distribute 82 books, newspapers, maga- Our next visit was to Puerto Padre. his family’s supports. His seventeen-year- zines, two flashlights, two short-wave While driving along beautiful road to old son has told him: “Dad, if you go to receivers, crayons, glasses, medicines Puerto Padre passes through Guardala- prison, I will continue the library.” We and a frisbee. However, the material vaca it was hard to think about hard- feel very small next to this brave man, gains were not the thing that the librar- ship and oppression. We were quickly but Carlos assures us that he is very ians were happiest about. They seemed brought back to reality when Carlos, happy with our visit. “The government to attach even more value to the fact the owner of the library ‘Teodoro Roo- thinks I receive money from Miami. But that we had visited them and that we sevelt’ told us his life story. Carlos has I don’t need money, I need information! cared about their struggle. Even though five children. Two of them have moved So thank you so much for bringing me we were just two Dutch girls, for them to the USA, two are still living with books and a radio.” Carlos seems to be an we embodied the entire Dutch commu- him, but since the government basically influential man in the community; he nity. Our visit strengthened their belief took away their scholarships and their knows all the other librarians very well that they were doing the right thing: future prospects look dim. His fifth and while we talk to him, he receives preparing for the future. child committed suicide. Carlos tried many visitors. One of them, Eduardo, to fight back his tears when telling us tells us that sometimes when people are about these events. “They took my son’s scared, they come to Carlos’ library at Ellen Weber and Folkje Lips

Cuba, tourism and solidarity Ricardo Carreras Lario

Summary: Apart from other types of Americans as late as the 1960s or tions has passed resolutions impeding apartheid or discrimination based on by black South Africans until 1990, access to the internet for the major- “ideological competence”, Cubans suffer Cuban discrimination, the so called ity of Cubans. The telephone company, from tourism apartheid. However, the “ideological competence”, has been ETECSA, permits net access to only tourism industry on the island can have going on since 1959. The totalitar- a few “chosen” people. Furthermore, some positive aspects as well, especially ian regime rewards the loyal and the the government restricts the access concerning socially conscious travellers obedient, whereas the silent major- of information technologies. Pursu- who support prisoners of conscience, ity is marginalized. Those who are ant to Article 19, Section 3 of Minis- their families, pro democracy movements brave enough to express dissent are terial Resolution No. 383/2001 “The and the emerging independent civil soci- punished. sale of computers, printing devices, ety. These travels are promoted by our photocopy machines and any other NGO Solidaridad Española con Cuba. Technological apartheid exists as well. means of mass printing, as well as 4/2007

Even though Cuba is far behind the their spare parts and accessories, by UES G O Cuban apartheid United States in respect of to internet the associations, foundations, non- L DIA

access and mobile phones, the Cuban profit civil organizations and Cuban E P The Castro government has discrim- government continues reinforcing citizens is prohibited. If acquisition of EURO - inated against Cubans. Unlike the the mechanisms for restricting both. such device or its parts, spare parts A B U racial segregation suffered by black The Cuban Ministry of Communica- or accessories is indispensable, the C authorization of the Ministry of Inte- ist harassment” according to which a partial destabilizing effect on the rior Trade is required.” Since 14 August citizens accused of disturbing tourists regime. 2003 the so-called “Windows Opera- can be fined. tion” maintains a strict census of all Tourism produces enormous ideologi- persons who possess a personal com- And there’s more. In 2005, the Minis- cal contradictions to a “communist” puter. This contains various kinds of ter of Tourism, Manuel Marrero Cruz regime by exposing Cubans to foreign confidential information, like the rea- passed a new regulation governing the companies, which proliferate based son for its provision, use and techni- relations of Cuban staff with foreign on market concepts and ideas. Moreo- cal parameters. staff in the tourism industry. Twenty- ver, some Cubans learn about “reality” two ridiculous rules, the most ridicu- by talking to tourists or from watch- There are other types of apartheid that lous of all being Article No. 13: “All ing foreign TV channels in the hotels exist in Cuba as well. One phenom- workers under the Ministry of Tour- where they work. Tourism also helps enon, “monetary” apartheid, appears ism, without regard of occupation rid the regime of legitimacy when a among Cubans who have access to and responsibility, will report to their Cuban mechanic, taxi driver or plumb- hard currency – either in the form immediate supervisor, in written form, er finds out that his Italian, Spanish or of remittances coming from abroad all presents they have received from Mexican counterpart earns much more or from tourism – as well as those for doing the same kind of job or has receiving only Cuban pesos in their the possibility of travelling all the way salary, which have less than 25 times to Cuba, whereas he/she cannot even the value of wages paid in convertible A renowned leader of the travel to a foreign island. pesos. Cubans also suffer from the liberal opposition recently educational apartheid. Since the vic- For some Cubans tourism is also a torious revolution, Cuban universities told me that the tourism means of income. The government are open only to “revolutionaries”. The industry has beaten the was thus forced to grudgingly per- 1984 Resolution from the Ministry of mit, even if only on a limited basis, Superior Education (MES), established regime severely. He also independent enterprise in the form severe sanctions for those “who do not said that Fidel Castro of small, privatized businesses, which share the revolutionary ideas.” Intel- had originally been eliminated in the lectual, cultural and artistic apartheid hated resorting to it and 1960s. These are the so-called “cuen- was established by Fidel Castro himself would not have done so if tapropistas” (entrepreneurs). They are in his speech “Words to the intellec- under restrictions, taxes and checks, tuals” (Palabras a los Intelectuales) in it hadn’t been necessary. especially since they constitute the 1961, where he expressed this warning: basis of a future middle class, neces- “inside the revolution – all, outside the sary for giving stability to the emerg- revolution – nothing”. ing democracy. Other Cubans receive a foreigner with whom they have a income from the tourism industry by Tourism apartheid work relationship.” The boss will decide means of informal economy. later what to do with the present. There is also tourism apartheid in A renowned leader of the liberal oppo- Cuba. The majority of Cubans are pro- The effects of tourism sition recently told me that the tour- hibited from staying in the best hotels ism industry has beaten the regime and accessing the adjoining beaches; Tourism can have a massive impact severely. He also said that Fidel Cas- there is even an absurd law defining on a country. In Spain, the enormous tro hated resorting to it and would a “tourist harassment” offence, which influx of tourists, beginning in the not have done so if it hadn’t been is not reflected in any specific legisla- 1960s, changed the sociological situ- necessary. He is not the only opposi- tion. Simply put, when a Cuban wants ation of the country, preparing it tion supporter with such an opinion. to stay in a hotel for foreigners (cur- mentally for a peaceful transition to Cubans on the street do not look down rently using the convertible peso cur- democracy. In Cuba, the government on tourists. To the contrary, during rency, CUC), he/she is refused even, if tries to avoid all aspects of tourism my visits to the island, I have always he/she has enough money. On the oth- it doesn’t agree with, especially the been “advised” by the Cuban govern- er hand, several years ago the govern- “contaminating” effects. However, it is ment that my activities of social con-

 ment enacted a penalty entitled “tour- likely that tourism will have at least sciousness for the families of prison- 38 39 ers of conscience and the opposition ernment owned shops, ending up in rights activists, churches, independ- were considered counter-revolution- the hands of the same totalitarian ent libraries and the rest of Cuban ary and subversive. However, I never regime. Furthermore, the Cuban gov- civil society. noticed any refusal or resentment on ernment charges a direct commission the side of Cuban citizens who looked on these remittances when exchanged Those who have had first-hand experi- at me as just another tourist. They from dollars to pesos. If it is immoral ence with a totalitarian regime know know that people from the free world to finance the regime by visiting the how crucially important it is to receive are allowed to travel, but they do not island, then it is also immoral to send support, at least moral, from the out- blame tourists for coming to Cuba. money, which ends up in the govern- side. Those of you who have travelled They blame the Cuban government for ment treasury. Nevertheless, without to Cuba in the past to support these not letting them travel, for the tour- remittances, misery would spread people, know that it is a tremendous ism apartheid and for other kinds of even farther across Cuba and there experience for a socially conscious discriminations. would be deaths from malnutrition. traveller. The human warmth and the North Korea, a country with a simi- emotions of these good people gener- Arguments against lar regime, but without a system of ated when visiting them is something tourism in Cuba remittances or tourism, is an example that is indescribable. of thousands of people dying of hun- Some people argue that the tour- ger, which is certainly no guarantee Our NGO, Solidaridad Española con ism industry generates income for of democracy. Cuba, promotes such socially conscious the government, which invests these travelling. With this proposition, we funds into the regime’s repressive Without tourism, there would be even are publishing a tourism and sup- apparatus. In 2006, the tourism more misery in Cuba. The Cuban gov- port guide of Cuba, available in Span- industry produced 2.4 billion dol- ernment would close down the hotels ish, Polish, French and soon in Italian. lars. However, these are gross fig- for foreigners, which is a common More than 25,000 people have down- ures, from which all the associated practice now when the hotel is no loaded it from the internet. costs need to be deducted. Due to longer profitable. Also, other business enormous Cuban government ineffi- related to tourism would be closed, The guide provides some information ciency in the economic sphere, it is including the “cuentapropistas” (entre- about these people (from various prov- possible the government earns less or preneurs), the private restaurants inces) and tells readers about different in some cases, loses funds. Even sup- (paladares) and the boarding houses issues concerning them, e.g. the kind posing the tourism industry brings (casas particulares). Cubans would be of medicine they need. It also features the government enormous profits, it more isolated. They would also become issues not published in official guides, is not certain that the regime would poorer and more dependant on the e.g. the death penalty in Cuba, the be unable to sufficiently finance its government. less than EUR 12 month salary and security apparatus (which is consid- the Cuban railway system, which was ered a priority) without it. It is more The best way of built earlier than the railway on Ibe- logical to believe that without these travelling to Cuba rian Peninsula, when Cuba was still benefits, it would reduce the calories part of Spain, etc. in the already scarce food rationing If the effect of tourism is debatable book or adopt similar measures. – and there is a difference between The number of people who inquire a Spanish speaker travelling to about donating medicine to a church, The same rationale behind the idea Havana and other tourist travelling giving books to an independent that it is immoral to buy products to a resort without any contact with library or visiting the family of a made in China, a dictatorship, could Cubans – it is necessary to make it Cuban prisoner of conscience is grow- also be applied to travelling for pleas- clear that there is a class of visitors ing. It is evident that many of them ure to Cuba, since this money is put in who are extremely positive for Cuba, add a supportive dimension to their 4/2007

the hands of the totalitarian regime. as well as Cubans. These are social- visit. These are truly the travellers UES G O

Even though this argument is legiti- ly conscious travellers who travel that Cuba needs. L DIA

mate, the same can be said of more to Cuba with their eyes open and E P than one billion dollars received by make use of their visit, showing sup- EURO President of Solidaridad - Cubans in family remittances. We port to those in need: the families Ricardo Carreras Lario, A B U know this money is spent in gov- of prisoners of conscience, human Española con Cuba, www.solidaridadconcuba.com C CUBA – EUROPE DIALOGUES / Quarterly bulletin on relations between Cubans and Europeans / 4 / 2007 Published by People in Need, Prague, Czech Republic, with the cooperation of European NGOs and with support of the Ministry of Foreign Affairs of the Czech Republic.

 Editor: Nikola Hořejš ([email protected]). To obtain this bulletin in Spanish please visit www.peopleinneed.cz/dialogues