U.S. Current Assessment of Cuban Human Rights

As discussed in a prior post, on April 20, the U.S. State Department released its annual report on the status of human rights in nearly 200 countries around the world. Here is the Executive  Summary of its report on human rights in Cuba in 2017.

Executive Summary

“Cuba is an authoritarian state led by Raul Castro, who is president of the Council of State and Council of Ministers, Communist Party (CP) first secretary, and commander in chief of security forces. The constitution recognizes the CP as the only legal party and the leading force of society and of the state. The government postponed October municipal elections due to recovery efforts related to Hurricane Irma but conducted them in November, although they were neither free nor fair. A CP candidacy commission prescreened all candidates, and the government actively worked to block non-CP approved candidates.”

“The national leadership, including members of the military, maintained effective control over the security forces.”

“The most significant human rights issues included torture of perceived political opponents; harsh and life-threatening prison conditions; politically motivated, sometimes violent, detentions and arrests; a complete absence of judicial independence; arbitrary arrest and detention that was politically motivated and sometimes violent; trial processes that effectively put the burden on the defendant to prove innocence; and political prisoners.”

“ There was arbitrary interference with privacy, including search-and-seizure operations in homes and monitoring and censoring private communications.”

“Freedom of expression was limited to expression that ‘conforms to the goals of socialist society’ with strict censorship punishing even distribution of the Universal Declaration of Human Rights. There were bans on importation of informational materials; strict control of all forms of media; restrictions on the internet, including severely limiting availability and site blocking; restrictions on academic freedom, including punishment for any deviation from the government line; criminalization of criticism of government leaders; and severe limitations on academic and cultural freedom, including on library access.”

“There were restrictions on rights of assembly to those that the government deemed to be “’against the existence and objectives of the socialist state;’ criminalization of gatherings of three or more not authorized by the government, and use of government-organized acts of repudiation in the form of mobs organized to assault and disperse those who assembled peacefully; denial of freedom of association, including refusal to recognize independent associations; restrictions on internal and external freedom of movement; restriction of participation in the political process to those approved by the government; official corruption; outlawing of independent trade unions; compulsory labor; and trafficking in persons.”

“Government officials, at the direction of their superiors, committed most human rights abuses. Impunity for the perpetrators remained widespread.”

Conclusion

I believe that a lot of what this Report says about Cuba is true. But it reflects a common failure of Americans to recognize and appreciate Cuba’s situation. As a relatively poor, small nation, Cuba has faced over the last 59 years a vastly larger, wealthier, stronger United States which has overtly and secretly attempted to impose or encourage regime change on the island. Under those circumstances, it should be easy for Americans to understand why Cuba has sought to control opposition.

 

 

 

 

 

 

The Inauguration of Cuba’s New President, Miguel Díaz-Canel

On April 19, Miguel Diaz-Canel officially became Cuba’s new President of the Councils of State and Ministers. Born after the Revolution in 1960, he grew up in the central province of Villa Clara, about three hours from Havana, the son of a schoolteacher and a factory worker. He studied electrical engineering at the Central University of Las Villas, where he was active in political life. After service in the Cuban military and a civilian mission to Nicaragua, he started work for the Communist Party of Cuba in 1993, and has advanced within the Party and the government to the position of First Vice President of the Councils of State and Ministers before his inauguration as President.[1]

President Díaz-Canel’s Inaugural Address

Granma, the official newspaper of the Communist Party of Cuba, had the following introduction to the inaugural address: “On the morning of April 19, a historic date . . .  [which saw] the first defeat of Yankee imperialism [at the Bay of Pigs in 1961] . . . [and which now] . . . sees the inauguration of a new [Cuban] government that makes evident the continuity of the new generations with the legacy of the historic generation that founded the Cuban Revolution in the highest leadership positions of the country, compañero Miguel Mario Díaz-Canel Bermúdez,.”[2]

Below is a photograph of Díaz-Canel giving his speech.

Díaz-Canel began by recognizing the leadership of Army General Raúl Castro, the candidate for deputy to have received the most votes in the recent general elections; as well as the Comandante of the Revolution, “who on being in this room offers us the opportunity to embrace history.”

Díaz-Canel “also referred to the ‘dark attempts to destroy us’ of those who have not been able to destroy ‘our faith.’” (Emphasis added.)

With the inauguration of this new legislature, he emphasized, the electoral process comes to its conclusion. “The Cuban people, who have massively participated throughout, are conscious of its historic importance. They have elected their representatives based on their capacity to represent their localities, without media campaigns, corruption or demagoguery. Citizens have elected humble, hard-working people as their genuine representatives, who will participate in the approval and implementation of the country’s policies. This process has contributed to the consolidation of unity in Cuba.”

On the people’s expectations about this government, he stressed that the new Council of State must continue “acting, creating and working tirelessly, in a permanent bond with its dignified people.”

He also added that if anyone wanted to see Cuba in all its composition, it would be enough to look to its National Assembly, with women occupying decisive positions in the state and the government. However, he warned, it does not matter how much we resemble the country we are, if the commitment to the present and the future of Cuba is lacking. The raison d’être of the Councils of State and Ministers is the permanent link with the population.

Díaz-Canel pointed out that during the closing of the last Party Congress [in 2016], Army General Raúl Castro Ruz made it clear that his generation would hand over the flags of the Revolution and Socialism to the younger generations. This emphasizes the importance of the crucial mandate given by the people to this legislature, and as such its work in all areas of the nation’s life must be perfected.

“I assume this responsibility with the conviction that all we revolutionaries, from any trench, will be faithful to Fidel and Raúl, the current leader of the revolutionary process,” the new President of Cuba stated. (Emphasis added.)

He then stressed that the men and women who forged the revolution “give us the keys to a new fraternity that transforms us into compañeros and compañeras,” and highlighted, as another inherited achievement, the unity that has become indestructible within the Cuban Party, that was not born from the fragmentation of others, but from those who intended to build a better country.

For that reason, he said, “Raúl remains at the forefront of the political vanguard. He remains our First Secretary, as the reference that he is for the revolutionary cause, teaching and always ready to confront imperialism, like at the start, with his rifle at the ready in the moment of combat.” (Emphasis added.)

Regarding the revolutionary and political work of the Army General, he highlighted his legacy of resistance and in the search for the continued advancement of the nation. “He put his sense of duty ahead of human pain,” he said in reference to the loss of Comandante en Jefe Fidel Castro on November 25, 2016.

Likewise, he highlighted Raúl’s grandeur as a statesman, forming a national consensus, and the manner in which he led the implementation process of the country’s social and economic guidelines. He also highlighted how he had made the return of the Five Cuban Heroes [in December 2014] a reality, so longed-for by Fidel.

Raúl has marked Cuba’s international relations with his own spirit: he directed diplomatic relations with the United States; he led the rotating presidency of CELAC; Cuba’s hosting of the Colombian peace talks; and he has been present in all regional and hemispheric summits, always defending Our America. That is the Raúl we know, Díaz-Canel stressed.

The new Cuban President also recalled how the Army General, still very young, participated in the Granma expedition, undertook the struggle in the Sierra Maestra, was promoted to Comandante, and developed government experiences that would be applied in the country after the revolutionary triumph.

I am aware of the concerns and expectations at a moment like this, but I know the strength and wisdom of the people, the leadership of the Party, the ideas of Fidel, the presence of Raúl and Machado, and knowing the popular sentiment, I state before this Assembly that compañero Raúl will head the decisions for the present and future of the nation.” (Emphasis added.)

I confirm that Cuban foreign policy will remain unchanged. Cuba will not accept conditions. The changes that are necessary will continue to be made by the Cuban people.” (Emphasis added.)

He also called for the support of all those who occupy leadership responsibilities at different levels in the nation, but, above all, of the people. “We will have to exercise an increasingly collective leadership. Strengthening the participation of the people.”

“I do not come to promise anything, as the Revolution never has in all these years. I come to fulfill the program that we have implemented with the guidelines of Socialism and the Revolution.” (Emphasis added.)

And as for the enemies of the revolutionary process, he said: “Here there is no space for a transition that ignores or destroys the work of the Revolution. We will continue moving forward without fear and without retreat; without renouncing our sovereignty, independence and development programs.”

“To those who through ignorance or bad faith doubt our commitment, we must tell them that the Revolution continues and will continue. The world has received the wrong message that the Revolution ends with its guerrillas.” (Emphasis added.)

Former President Raúl Castro’s Response

 Immediately after the inaugural address, Raúl Castro, the former President and still the General Secretary of the Communist Party of Cuba, closed the second plenary session of the National Assembly of Popular Power [Cuba’s national legislature], with the following remarks:[3] Below is a photograph of Castro during his speech.

Castro recalled the victory of Cuba during the mercenary invasion of Playa Girón [Bay of Pigs]. “That moment was of great importance, especially when Fidel declared the socialist nature of the Revolution, he said.”

“He also pointed out the opportunity of recognizing the work carried out by the electoral commissions and of candidates to all the instances, as well as of the set of institutions that collaborated for the good performance of the elections. He also congratulated the elections of the National Assembly to the State Council of the country.”

Castro  “said that Miguel Mario Díaz-Canel Bermúdez had worked as an engineer, and his work as an officer of the FAR. Then he was proposed as a professional cadre of the Union of Young Communists, from where he gradually rose to achieve his promotion as a Professional Party cadre.”

He pointed out that Díaz-Canel, during the [most acute phase of the] Special Period “was a member of the Provincial Party Committee in Villa Clara, where he spent nine years. Then he spent six years in Holguín. “He was born in Villa Clara, where he was quiet, because it was a territory he knew well; and it was after that that he was sent to one of the great provinces of the east, Holguin, as we did with more than a dozen young people, most of whom came to the Political Bureau, but who failed to be promoted. He was the only survivor.

Castro also stressed that Díaz-Canel had been a member of the Central Committee since 1991 and was promoted to the Political Bureau 15 years ago. He fulfilled a mission in Nicaragua and graduated from the National Defense College. In 2009 he was appointed Minister of Education. Five years ago he was elected First Vice President of the Councils of State and Ministers; and since then “a group of members of the Political Bureau had the feeling that we had hit the nail on the head,” referring to Díaz’s ability to assume the presidency. He was responsible in the ideological sphere of the Central Committee of the Party.

Raul pointed out that the election of Diaz-Canel is not a coincidence “because of his preparation he is the best and we know that because of his dedication he will have absolute success in the task entrusted to him by our supreme body of ‘Popular Power.” (Emphasis added.)

Comrade Díaz-Canel over the years he has demonstrated work capacity, ideological solidity and commitment to the Revolution.

The National Assembly of Popular Power has 42% new members and a female representation of 48.4%. Castro emphasized that women, young people and people of color occupy decision-making positions in the life of the nation.

“It is up to the Party, the State and the Government to fulfill and enforce, with due intentionality, the promotion of young people, women and mestizos, to posts that guarantee the renewal of the revolution.

He welcomed the ratification of the presidency of the National Assembly, and the proposal of Diaz-Canel, as allowed by the Constitution, so that the Council of Ministers will be made known at the next session of the Assembly, which will take place in July, because that it will allow for a prudent time for the movements of paintings to be made.

I will continue to serve as Second Secretary of the Central Committee of the PCC, in what is my second and last mandate, which ends in 2021, when we will complete the transfer to the new generations. From then on, I will be one more soldier with the people defending this Revolution. So that there is not the slightest doubt, I want to emphasize that the PCC, in the figure of its First Secretary, will continue supporting the [new] president.” (Emphases added.)

Regarding the new generations, he warned that one of the permanent bets of the enemy is to penetrate, confuse and alienate youth from the ideals of the work and the revolutionary culture leading them instead towards disengagement towards ethics, solidarity and the sense of duty.

Castro said that in the next constitution there will be no changes in the strategic objective of the Party, which our people will support as in 1976, when Cubans voted in favor of the current constitution with 98% support.

He pointed out that in the Plenary Session of the Central Committee held in March of this year, the economic and social status of the nation was analyzed. The new constitution has lagged behind us, he clarified, because the country’s main problems are not resolved, because the participation of the organisms from the base was not achieved for the adequate implementation of the adopted policies.

We never had any illusions that it would be a short and easy process, because its dimensions reached all sectors of society, and we had to overcome egalitarianism and its negative consequences in the national economy, he added.

In the case of the socioeconomic context of the nation, Castro assured that the experiment of the non-agricultural cooperatives will continue and with respect to the monetary duality he said that he continues to give serious headaches, as well as the need for wage reform. He also emphasized the need for a coherent communication policy. (Emphasis added.)

He also recalled the difficult circumstances in which the country’s economy had to develop, and the considerable damages caused by the intense drought of the last 3 years and the recent hurricanes that affected most of the country. (Emphasis added.)

With regard to foreign debt, he stressed that a renegotiation has been carried out, which has helped to free the new generations of a sword of Damocles and the consequent restitution of the credit prestige of the country. The Army General congratulated the Minister of Economy, Ricardo Cabrisas, on his performance in that process.

He also made a call to save resources, claiming that we usually ask for too much, so we have to plan better.

“Defend unity, resist and resist, that is the duty of revolutionaries,” he said.

Regarding foreign policy issues, said the recent Summit of the Americas  was marked by the neo-hegemonic attitude of the United States, whose commitment to the Monroe Doctrine was ratified, especially with the exclusion of Venezuela from that international event. (Emphasis added.)

It was known that they would set up a show, and Cuba went to Lima with its own right and its head high, which confirms the determination of the Cubans to defend their principles and their values. The Cuban delegation, together with that of Bolivia and other countries, prevented a single front against Venezuela. The interventions of our foreign minister, on behalf of the government and Cuban people, constituted a worthy response against the contents of the interventionist speech of the Vice President of the United States, Raul said. (Emphasis added.)

“The members of civil society defended the voice of Cuba and the peoples of America with vigor. I take this opportunity to congratulate all the members of the Cuban delegation that participated in this event, “he said.

The Army General stressed Cuba’s commitment to ALBA because we are the world’s region of greatest inequality in the distribution of wealth, and the gap between rich and poor is huge and growing despite the efforts made in the past decades, when Progressive governments pushed for policies to mitigate this evil, he said.

He rejected accusations of human rights violations in Cuba. He highlighted diplomatic relations with the European Union and the progress of ties with China. (Emphasis added.)

“In just 11 days our people will march together united by our streets and squares commemorating the International Labor Day and showing the majority support of the Cubans to the Party and its Revolution.

Conclusion

As anticipated, these comments by Díaz-Canel and Castro demonstrate a collective intention to continue Cuba’s current direction, domestically and internationally. Their mutual admiration is shown in the photograph below.

In another post we will look at U.S. reaction to the change in Cuba leadership. Some of that reaction was recorded before the actual inaugural of Díaz-Canel.

 

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[1] Ahmed & Robles, Who Is Miguel Díaz-Canel, Cuba’s New President? N.Y. Times (April 19, 2018); Cordoba, After 59 Years, a Castro Is No Longer Official Leader of Cuba, W.S.J. (April 19, 2018).

[2] Miguel Díaz-Canel: I assume this responsibility with the conviction that all the revolutionaries will be faithful to Fidel and Raúl (+Video), Granma (April 19, 2018).

[3] Raúl Castro: The Communist Party will continue to support the new President, Granma (April 19, 2018).

 

Vietnam Communist Official Advocates Economic Reforms for Cuba

                                                                                                                                      Vietnamese Communist Party General Secretary Nguyen Phu Trong, who is visited Cuba this week,  said in a lecture at Havana University,  “The market economy of its own cannot destroy socialism. But to build socialism with success it is necessary to develop a market economy in an adequate and correct way.” He added, “ With the clear vision of the [Communist Party of Cuba the island] . . .  will surely reach great achievements and successfully reach a prosperous and sustainable socialism.”[1]

Vietnam in the 1980s started to open up its centralized economy and as a result has lifted around 30 million Vietnamese out of poverty.

Interestingly Cuban media had many reports about Mr. Trong’s visit, but this blogger has not found any coverage of the above speech and its implicit criticism of Cuba’s failure to fully embrace market economic reforms.[2]

The closest it came was the report that Mr. Trong “expressed his full conviction that, guided by the decisions adopted in the VI and VII PCC Congresses, Cuba will continue to successfully implement the updating of the social and economic model of socialist development” and the statement that the two countries had an “Intergovernmental Commission for Economic and Scientific-Technical Cooperation” and exchanges on “the socio-economic models of the respective countries.”[3]

This soft pedaling of Mr. Trong’s comments contrasts with the Cuban Communist Party’s own recent admissions of mistakes in its liberalizing of the Cuban economy as discussed in a prior post.

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[1]  Reuters, In Cuba, Vietnam Communist Party Chief Advocates Economic Reforms, N.Y. Times (Mar. 29, 2018). A more complete report of Mr. Trong’s speech is contained in a Vietnamese source: General Secretary Nguyen Phu Trong received an honorary doctorate in Cuba, Zing (Mar. 30, 2018).

[2] The General Secretary of the Communist Party of Vietnam to arrive in Cuba today, Granma (Mar. 28, 2018); Ten landmarks in Cuba-Vietnam relations, Granma (Mar. 28, 2018); Peraza, Vietnam and Cjuba: Examples of what socialism can achieve, Granma (Mar. 29, 2018); Peraza, Cuba and Vietnam have the common goal of advancing in the construction of socialism, Granma (Mar. 29, 2018); Univ. Havana, He receives honorary title “Doctor Honoris Causa” in Political Science Mr. Nguyen Phu Trong (Mar. 29, 2018); Peraza, The youth of Cuba and Vietnam have the mission to keep alive the flame of brotherhood, Granma (Mar. 30, 2018); Castro, To the people, to the communist Party and to the Government of the Socialist Republic of Vietnam, our eternal gratitude, Granma (Mar. 30, 3018); Cuba and Vietnam: a brotherhood that takes hold (+ Photos), Granma (Mar. 31, 2018); Gómez, A path of success, Granma (Mar. 31, 2018). New stage of development in its historical links, Granma (Mar. 31, 2018).

[3]  New stage of development in its historical links, Granma (Mar. 31, 2018).

 

Cuba’s Communist Party Admits Errors in Liberalization of Economy 

On March 25-26 the 142-member Central Committee of the Communist Party of Cuba met to discuss the status of economic reforms during President Raúl Castro’s 10-year mandate to open up the economy with greater roles for the private sector and foreign investment.[1] Below is a photograph of the Party’s First Secretary, Raúl Castro, and to his left Miguel Diaz-Canel, the expected next President of the Cuba Council of State.

From 2012 through 2015 the reforms were implemented swiftly with the number of self-employed worked more than tripling to 580,000.

But since then implementation has slowed in the due to the complexity of the process, mistakes in oversight and low engagement of the bureaucracy. Further reforms also were hampered by economic and financial limitations. The Central Committee recognized Cuba lacked a fiscal culture and accountancy tools to make a serious economic analysis as well as difficulties communicating the complex process. This included the absence of a culture of paying taxes.

Now the Party and the Government are reviewing studies on unification of Cuba’s dual currencies and different exchange rates and the National Economic and Social Development Plan through 2030. There will be the implementation of the country’s  self-employment policy after a training process that will include some 580,000 self-employed workers and more than 30,000 public officials.

Raúl Castro said that all Communists needed to confront problems without hesitation, right away; planning more carefully to direct resources to where they are truly needed; and not waiting for solutions from above, but rather contributing creative, rational ideas.

Related to these problems of implementing economic reforms, only this year did Cuba open its first wholesale market for beans, beer, sugar, cigars and other staples for 20 to 30 percent less than the retail prices in the country. It will be open to 35 worker-owned cooperatives in Havana.

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[1]  The Party Central Committee, meeting in its Fifth Plenum, analyzed important issues related to the updating of Cuba’s socio-economic model, Granma (Mar. 27, 2018); Reuters, Cuba’s Communist Party Admits Errors, Slowdown in Reforms, N.Y. Times (Mar. 27, 2018); Assoc. Press, Cuba opens wholesale market to sell basic staples, Wash. Post (Mar. 19, 2018);  Pėrez,  Cuba expanding wholesale markets? (Granma (Feb. 6, 2018). Issues about Cuba’s economy have been addressed in the posts listed in the “Cuban Economy” section of List of Posts to dwkcommentaries–Topical: CUBA.

Raúl Castro To Remain Cuba’s President for At Least Two More Months  

On December 21, 2017, Cuba’s National Assembly determined that Raúl Castro’s term as President would be extended from February 24 to April 19. The stated reason for the extension was the delay in the start of the electoral cycle caused by Hurricane Irma.[1]

Some, however, speculate that the real reason for the extension is trying to cope with Cuba’s many economic and political problems—slower economic growth (if not decline), declining support from struggling Venezuela and increased U.S. hostility. Perhaps a clearer indication of what is happening will be provided by the March meeting of the Central Committee of Cuba’s Communist Party to discuss the results of the economic guidelines, or reforms, introduced under Castro and talk about a strategy for the coming years.[2]

Indeed, during this session of the National Assembly President Castro said, “Next year will also be complicated for the external finances of the nation, however, we will continue credibility of our economy and reiterate to the creditors the fulfillment of the agreed commitments, and we thank support and understanding for the transitory difficulties that we face.” However, Castro did say, “when the National Assembly is constituted, my second and last term [as] . . . the head of the State and the Government [will end] and Cuba will have a new president.”

Simultaneously the Cuban Government announced new regulations on the emerging private and cooperative sectors of the nation’s economy to more closely regulate the income distribution by cooperatives so that no one may earn more than three times of others in the cooperative.  This resulted from investigations revealing that in some non-agricultural cooperatives the president earned fourteen times more than the workers, that this is not a cooperative, but rather a private company and cannot be allowed.

In addition, a cooperative may operate in only one province where it has a legal domicile,  and business licenses will be limited to one per person.

Cuba’s Vice President Marino Murillo, who is also the government’s economy czar, said there will be no new approvals for the time being for non-agricultural cooperatives, while their maximum and minimum earnings will be limited to avoid the existence of de-facto private businesses.

According to Michael Bustamante, an assistant professor of Latin American history at Florida International University, these new regulations “suggest a continued slowing down, if not an undoing, of the economic reforms implemented between 2010 and 2016.”

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[1] Deputies approve extension of the mandate of the provincial assemblies and the National Assembly, Granma (Dec. 21, 2017); Raúl Castro: “Here we are and we will be; free, sovereign and independent, CubaDebate (Dec. 21, 2017); Morales, Evaluates the march of the implementation of the Guidelines, Granma (Dec. 21, 2017); Murillo, The problems we have faced in the Update are more complex and deeper than we had thought, Granma (Dec. 22, 2017); Reuters, Cuba Delays Historic Handover from Castro to New President, N.Y. times (Dec. 21, 2017); Assoc. Press, Castro Confirms He Will Stay Cuba’s President to April, N.Y. Times (Dec. 21, 2017); Londońo, Cuba Delays End of Raúl Castro’s Presidency by Two Months, N.Y. Times (Dec. 21, 2017); Whitefield & Torres, Cuban Leader Raúl Castro will stay in power past February, Miami Herald (Dec. 21, 2107).

[2] As reported in a December 1 comment to a post about Cuba’s elections, Domingo Amuchastegui, a former Cuban intelligence analyst who now lives in Miami, said, “The fatherland is in danger; it is facing very difficult economic circumstances plus the threat of aggression from a historical enemy. Facing difficult circumstances, revolutionary leaders don’t back down. These are not times to enjoy life in Varadero and spend time with the grandchildren.”

 

 

Another Perspective on Cuba’s Current Elections 

A friend has provided me with an illuminating article on Cuba’s current round of elections and the upcoming transition from the Castro brothers presumably to Miguel Diaz-Canel, that was written by William LeoGrande, a professor of government in the School of Public Affairs at American University in Washington, D.C. and a noted author and commentator on Cuba.[1]

LeoGrande emphasizes that the elections come “at a delicate political moment. Castro’s ambitious economic reform program, the “updating” of the economy, is still a work in progress and has yet to significantly raise the standard of living of most Cubans. Moreover, it is encountering resistance from state and party bureaucrats who are loath to lose control over the levers of economic power and the perks those provide. The economy has also been struggling because of declining oil shipments from Venezuela, which sells oil to Cuba at subsidized prices, helping to ease Cuba’s chronic shortage of hard currency. . . . The resulting energy shortage has forced Cuba to impose drastic conservation measures and pushed the economy into a mild recession last year.”

Hurricane Irma has been another major problem for Cuba. According to LeoGrande, it inflicted “several billion dollars’ worth of damage as it tracked along the north coast before turning toward the Florida Keys. The storm hit some of Cuba’s most lucrative tourist resorts, cutting into the one sector of the economy that has enjoyed sustained growth in recent years. Most of the major hotels predicted they would reopen for business quickly, but the storm did enormous damage to the power grid, leaving large swaths of central Cuba in darkness.”

All of these problems have fueled “popular discontent over the economy and impatience with the slow pace of improvement . . . . In an independent opinion poll taken in late 2016, 46 percent of Cubans rated the nation’s economic performance as poor or very poor, 35 percent rated it as fair, and only 13 percent rated it as good or excellent. Solid majorities reported not seeing much economic progress in recent years for the country or themselves, and they had low expectations for the future.”

Moreover, Cuban people have “become more vocal in expressing . . . [their] discontent. The expansion of internet access, the ability of Cubans to travel abroad without state permission and Raul Castro’s own calls for more open debate about Cuba’s problems have fueled an increasingly robust public sphere.”

This discontent, however, faces major hurdles in electing candidates with these views. They have “formidable obstacles. First, no overt campaigning is allowed, so it is hard for candidates to run on an alternative policy agenda. In the absence of a formal campaign, people learn about candidates by word of mouth.” And the Communist Party of Cuba has the ability “to influence elections by mobilizing its members against candidates it regards as dissidents.”

Nevertheless, the next president, presumably Diaz-Canel, will face the challenge of balancing “the need for economic reform with the fear of change prevalent within key sectors of the political elite.”

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[1] LeoGrande, Cuba After Castro: The Coming Elections and a Historic Changing of the Guard, World Politics Review (Oct. 17, 2017). A previous post set forth an overview of Cuba’s elections in 2017-2018.

 

 

New Restrictions on U.S. Travel to Cuba and Transactions with Certain Cuban Entities                                     

On November 8, the U.S. Treasury, Commerce and State departments released regulations imposing new restrictions on U.S. citizens travel to Cuba. Taking effect on November 9, they “are aimed at preventing U.S. trade and travelers from benefiting its military, intelligences and security arms of the Communist-ruled country.” In addition, they require U.S. travelers on “person-to-person” trips “to use a U.S.-based organization and be accompanied by a U.S. representative of the group.”[1]

This blog post will first provide a list of the Treasury Department’s 12 categories of general licenses for approved travel to Cuba, only two of which are directly affected by the new regulations. These two categories will be discussed followed by the new regulations ban on transactions with certain Cuban entities that affects all 12 categories.

Categories of Approved Travel[2]

“Travel-related transactions are permitted by [OFAC’s] general license for certain travel related to the following activities, subject to the criteria and conditions in each general license: (1) family visits; (2) official business of the U.S. government, foreign governments, and certain intergovernmental organizations; (3) journalistic activity; (4) professional research and professional meetings; (5) educational activities; (6) religious activities; (7) public performances, clinics, workshops, athletic and other competitions, and exhibitions; (8) support for the Cuban people; (9) humanitarian projects; (10) activities of private foundations or research or educational institutes; (11) exportation, importation, or transmission of information or information materials; and (12) certain authorized export transactions.”

Only the two categories in bold are affected by the new regulations—travel for “educational” reasons (organized and people-to-people) and “support for the Cuban people.”

Formal Educational Travel[3]

OFAC states, “Among other things, this general license authorizes, subject to conditions, faculty, staff, and students at U.S. academic institutions . . . to engage in certain educational activities, including study abroad programs, in Cuba, Cuban scholars to engage in certain educational activities in the United States, and certain activities to facilitate licensed educational programs. U.S. and Cuban universities may engage in academic exchanges and joint non- commercial academic research under the general license. This provision also authorizes persons subject to U.S. jurisdiction to provide standardized testing services and certain internet-based courses to Cuban nationals.

In addition, “educational exchanges, including study abroad programs, sponsored by Cuban or U.S. secondary schools involving secondary school students’ participation in a formal course of study or in a structured educational program offered by a secondary school or other academic institution, and led by a teacher or other secondary school official are authorized. Such exchanges must take place under the auspices of an organization that is a person subject to U.S. jurisdiction, and a person subject to U.S. jurisdiction who is an employee, paid consultant, agent, or other representative of the sponsoring organization (including the leading teacher or secondary school official) must accompany each group traveling to Cuba. For a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.565(a)(2)(vi). This authorization allows for participation of a reasonable number of adult chaperones to accompany the secondary school students to Cuba.”

“People-to-People” Educational Travel[4]

“OFAC is amending the general license for people-to-people educational activities in Cuba to remove the authorization for individual people-to-people educational travel. This general license now authorizes, subject to conditions, persons subject to U.S. jurisdiction to engage in certain educational exchanges in Cuba under the auspices of an organization that is a person subject to U.S. jurisdiction and sponsors such exchanges to promote people-to-people contact. Travelers utilizing this general license must ensure they maintain a full-time schedule of educational exchange activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities, and that will result in meaningful interaction between the traveler and individuals in Cuba.”

“The predominant portion of the activities must not be with a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, or a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338.”

“A person subject to U.S. jurisdiction who is an employee, paid consultant, agent, or other representative of the sponsoring organization must accompany each people-to-people educational group traveling to Cuba to ensure that each traveler has a full-time schedule of educational exchange activities. Individuals traveling under the auspices of an organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact may rely on the entity sponsoring the travel to satisfy his or her recordkeeping obligations with respect to the requirements described above. OFAC is amending this general license to exclude from the authorization direct financial transactions with entities and subentities identified on the State Department’s Cuba Restricted List.”

Support for the Cuban People” Travel[5]

“This general license authorizes, subject to conditions, travel-related transactions and other transactions that are intended to provide support for the Cuban people, which include activities of recognized human rights organizations; independent organizations designed to promote a rapid, peaceful transition to democracy; and individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba. OFAC is amending this general license to require that each traveler utilizing this authorization engage in a full-time schedule of activities that enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities and that result in meaningful interactions with individuals in Cuba. OFAC is also amending this general license to exclude from the authorization certain direct financial transactions with entities and subentities identified on the State Department’s Cuba Restricted List. The traveler’s schedule of activities must not include free time or recreation in excess of that consistent with a full-time schedule in Cuba. For a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.574.”

“ Renting a room in a private Cuban residence (casa particular), eating at privately owned Cuban restaurants (paladares), and shopping at privately owned stores run by self-employed Cubans (cuentapropistas) are examples of authorized activities; however, in order to meet the requirement of a full-time schedule, a traveler must engage in additional authorized Support for the Cuban People activities.”

Ban on Transactions with Certain Cuban Entities[6]

The new regulations also ban U.S. travelers and businesses from transactions with “the large military-run corporations that dominate the Cuban economy. These include GAESA and CIMEX, the holding companies that control most retail business on the island; Gaviota, the largest tourism company; and Habaguanex, the firm that runs Old Havana.” The regulations include a list of forbidden hotels, including Havana’s “Manzana Kempinski, which opened with great fanfare this year as Cuba’s first hotel to meet the international five-star standard.”

This “Cuba Restricted List,” which will be maintained and updated by the State Department, has the following categories of organizations (and the number of entities in each category): Cuban Ministries (2) ; Cuban Holding Companies (including CIMEX,GAESA, Gavotte and Companies Touristic Habituate S.A.) (5) ; Hotels in Havana and Old Havana (27); Hotels in Santiago de Cuba (1); Hotels in Varadero (13); Hotels in Pinar del Rio (2); Hotels in Baracoa (7); Hotels in Cayos de Villa Clara (15); Hotels in Holguín (11); Hotels in Jardine’s del Rey (5); Hotels in Topes de Collates (3); Tourist Agencies (2); Marinas (5); Stores in Old Havana (10);  Entities Directly Serving the Defense and Security Sectors (38); Additional Subentries of CIMEX (16); Additional Subentities of GAESA (13); Additional Subentries of GAVIOTA (4); and Additional Subentries of HABAGUANEX (1).

Conclusion

All of these new regulations are meant to implement President Trump’s National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba, which he signed on June 16, 2017, at an event in Miami Florida.[7]

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[1] U.S. Treasury Dep’t, Treasury, Commerce, and State Implement Changes to the Cuba Sanctions Rules (Nov. 8, 2017); U.S. Treasury Dep’t (Office of Foreign Assets Control), Frequently Asked Questions Related to Cuba (updated Nov. 8, 2017); Reuters, Trump Administration Tightens Sanctions Against Cuba, N.Y. Times (Nov. 8, 2018); Assoc. Press, US Takes Steps to Make It Harder for Americans to Visit Cuba, N.Y. times (Nov. 8, 2017); DeYoung, White House implements new Cuba policy restricting travel and trade, Wash. Post (Nov. 8, 2017).

[2] U.S. Treasury Dep’t (Office of Foreign Assets Control), Frequently Asked Questions Related to Cuba (updated Nov. 8, 2017).

[3] Id.

[4] Id.

[5] Id.

[6] U.S. State Dep’t, List of Restricted Entities and Subentities Associated With Cuba as of November 9, 2017 (Nov. 8, 2017); U.S. State Dep’t, Frequently Asked Questions on the Cuba Restricted List (Nov. 8, 2017).

[7]  White House, Trump’s National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba (June 16, 2017). This Memorandum and the Miami event were discussed in a prior post.