Vol. 20, No. 4 April 2012 In the News Despite fall in U.S. food exports to Cuba, Advertising everywhere shipments of beans edge up every year Competition heats up in Cuba’s rapidly BY VITO ECHEVARRÍA It was also the same year Pat Wallesen visited decentralizing economy ................Page 3 he Cubans haven’t bought a single grain Cuba for the first time. Wallesen is managing of American rice for years. But when it partner of WestStar Food Co. in Corpus Christi, Tcomes to U.S. beans, state purchasing a major U.S. exporter of dry beans. SEC pressures Telefónica agency Alimport can’t seem to get enough. “The Cubans are opportunistic buyers,” said Spanish telecom giant is hounded over its According to USDA figures, dry bean exports Wallesen, telling CubaNews that global commo- business interests in Cuba ............Page 4 to Cuba reached $7.7 million last year, up from dity prices have fluctuated not only for beans lately, but other crops as well. He put total annu- $5.6 million in 2010 and $4.3 million in 2009. al dry bean purchases at 45,000 metric tons. Political briefs That’s still a lot less than the record $10.9 mil- “They buy when the time is right. They buy lion worth of beans sold in 2006, though dra- from the U.S. between November and Febru- Rubio lifts hold on Jacobson nomination; matically more than in 2007 and 2008, when U.S. Miami-Dade proposal under fire ...Page 5 ary,” he said. WestStar Foods sometimes sup- farmers exported only $73,000 and $68,000 plies the Cubans with its own inventory of worth of beans to Cuba (see chart, page 3). beans; other times the Texas company sources Manufacturing in trouble Those dramatic ups-and-downs have to do those beans from elsewhere, usually from mainly with Alimport’s consistent efforts to find North Dakota suppliers. Manufacturing’s share of Cuba GDP takes the most beans for the money. The agency be- a steep tumble ................................Page 7 As much as 25% of dry beans eaten in Cuba gan buying beans in 2003, when Alimport’s come from the United States, he said, with the then-CEO, Pedro Alvarez, signed a memo of remainder imported mostly from China. Canada Newsmakers understanding with the Port of Corpus Christi. is also an alternate supplier. Argentine master chef Guillermo Pernot That year, improving ties between the two na- Contrary to public perception, the bulk of tions resulted in nearly $1.2 million worth of dry what’s being shipped from the United States brings Cuban cuisine to D.C., Philly, Atlan- beans shipped to Cuba from the Texas port. See Beans, page 3 tic City and Orlando ......................Page 8 Prieto calls it quits Is Castro’s Cuba a budding narcostate? Cuba’s popular “hippie” culture minister is now an advisor to Raúl Castro ......Page 9 U.S. officials clearly suggest otherwise Pope’s pilgrimmage BY DOMINGO AMUCHASTEGUI declared the Democrat from California. “Just 90 or years, certain Cuban-American lawmak- miles from Florida, Cuba has the potential to be Winners and losers from Benedict XVI’s a major transshipment point for illicit drugs.” historic 48-hour trip to Cuba ......Page 10 ers, so-called “sources” in Miami and offi- Fcials of Florida’s judicial system have Evidence? None. Primary or secondary sour- ces to support this assertion? None at all. repeatedly accused the Cuban government and Imagination? A great deal of it. Castro’s secrets its leaders of being involved in drug trafficking. A few days later, University of Nebraska polit- Latell’s new book claims Fidel knew about It didn’t matter that Cuba’s highest-ranking ical science professor Jonathan C. Benjamin- JFK assassination in advance .....Page 14 defector, Brig. Gen. Rafael del Pino, denied it. Alvarado questioned Feinstein’s statement. Nor did it matter when top officials of the Drug “It’s really irresponsible for her to say that,” Enforcement Administration, including Gen. he said. “It sets in motion that the Cuban gov- Chico and Rita Barry McCaffrey, spoke favorably of Cuba’s co- ernment is doing nothing, which is absolutely Cuba’s first animated film a joy to watch, operation with the DEA over the years. not true, and it insinuates that it is descending but not yet a box-office hit ..........Page 15 And it didn’t matter that key officials at Inter- into some sort of narcostate.” pol have praised Cuba’s efforts at drug interdic- A U.S. senator lying? Impossible. But perhaps tion. The fabrication keeps getting repeated. this professor is a leftist or a Castro sympathiz- CubaNews (ISSN 1073-7715) is published monthly by CUBANEWS LLC. © 2012. All rights reserved. More recently, during a Feb. 1 hearing of the er, as some folks in Miami might suggest. Annual subscription: $398. Nonprofit organizations: Senate Caucus on International Narcotics Con- Look then at the U.S. government’s most re- $198. Printed edition is $100 extra. For editorial in- trol, Sen. Dianne Feinstein singled out Cuba as cent assessment: the 2012 International Narco- quires, please call (305) 393-8760, fax your request a potential Caribbean drug smuggling leader. tics Control Strategy Report (INCSR), submit- to (305) 670-2229 or email [email protected]. “I would be remiss not to mention Cuba,” See Drugs, page 2 2 CubaNews v April 2012 ECONOMY Competition heats up in a rapidly decentralizing economy BY DOMINGO AMUCHASTEGUI ments— as well as equipment, vehicles and 40,000 CUC from such lenders. These private f an expanding, fast-growing, vibrant mic- tools — are being leased to individuals, fami- restaurants make anywhere from 6,000 to roeconomy in the hands of private, family lies and cooperatives. 8,000 CUC per month. Ior cooperative ownership is a key indicator Likewise, hundreds of thousands of hec- The same applies to another flourishing pri- of progress, then Cuba is apparently on the tares of land have been allocated to finqueros vate business in Cuba: the renting of rooms, right track. Billboards, brochures and leaflets and private farmers. Despite lingering exam- apartments and houses for foreign tourists. are sprouting up everywhere. Competition is fierce. Getting the neces- sary supplies, funds and other resources is So are collective taxis known as “boteros” — or trucks loaded with passengers — whose becoming a major headache for these newly owners are making fortunes on a daily basis. established businesses. Logistics are subject Some of the most thriving businesses in- to extreme tensions because of growing volve real-estate transactions, and signs ad- demand; prices are subject to more competi- vertising houses and apartments big and tive standards than just a few years ago, and those who failed have learned the lesson. small are becoming quite visible. AMUCHASTEGUI DOMINGO Well-known dissident Vladimiro Roca, on But this competition isn’t limited only to the eve of Pope Benedict XVI’s visit to the new ventures. In Cuba today, there’s a grow- island, said “there are no changes in Cuba” — ing and fierce rivalry between private enter- a comment that echoes similar accusations by preneurs and the state sector. the Obama administration. Government-owned restaurants are losing Yet hundreds of thousands of people are no their old customers. Fancy restaurants — longer dependent on state salaries, but rather even in Old Havana — sit half-empty or worse on their own efforts and creativity. They may most of the time, while state-run hotels are no succeed or not, but that’s how a market econ- match for casas particulares in either price or omy works. quality. State-produced mattresses and furni- By 2015, half of Cuba’s labor force will be ture sell for prices 2-3 times higher than those working on their own. At present, the island made by the “non-state sector.” boasts more than 360,000 self-employed peo- The UBPC (coops strongly subject to state ple and small businesses registered and pay- control until the recent past and which are ing taxes. According to experts, for each of Cartoon chef beckons diners to Paladar La Unica. now being transformed) occupy 38% of the these officially registered people there are best farmland in Cuba, while producing only three or four more who have not registered ples of forced procurement at fixed prices, 18% of the food. At the same time, the private because of mistrust or wait-and-see attitudes. most goods and crops are now moving freely coop sector has 20% of the land but produces And this is just in the urban economy. In across state and private produce markets. more than 60% of all food crops. rural areas, the changes are overwhelming. While Cuba’s state banking entities are be- Bureaucrats within the state sector might The amount of wealth among private farmers ginning to ease on credit and loans to support be thinking about retaliation, wondering how and coops is staggering; one such family this economic surge — as well as granting to stop the trend. But deep down, they know recently bought a mansion in Havana for special support for low-income families and this is no longer possible. Only better quality, 750,000 CUC — and beach hotels in Varadero their housing needs — private money lenders lower prices and more efficient services will are packed with well-off, self-made Cubans. are surrepitiously financing startups. allow the state to successfully compete with Thousands of restaurants, quarries, shops, These include several recently opened, and the new, emerging economy. empty lots and other former state establish- very successful, paladares that got 35,000 to And who said Cuba wasn’t changing? q reported disrupting three smuggling events 1.5 kg of cocaine, compared to 9,000 marijua- Drugs — FROM PAGE 1 and captured six traffickers (three from the na plants and 26 kg of cocaine in 2010.