Latest U.S. Report on International Human Rights  

On April  22, 2024, the U.S. State Department released its 2023 Country Reports on Human Rights Practices.[1]

Below are its Preface and Executive Summary about Cuban human rights.

Preface

The Report’s Preface by Secretary of State, Antony Blinken, stated the following:

“As mandated by Congress, every year since 1977, the State Department’s dedicated public servants in U.S. missions abroad and in Washington scrupulously examine, track, and document the state of human rights in nearly 200 countries and territories around the world.  In compiling these “Country Reports on Human Rights Practices,” commonly known as the Human Rights Report (HRR), we have drawn from a variety of credible, fact-based sources, including reporting from government agencies, nongovernmental organizations, and media.  The HRR helps connect U.S. diplomatic and foreign assistance efforts to the fundamental American value of protecting and promoting respect for human rights for all, while helping to inform the work of civil society, human rights defenders, scholars, multilateral institutions, and others.”

“The President’s Summit for Democracy underscores the United States’ commitment to advancing respect for human rights, and to the promotion of democracy as the most effective system of government to secure them.  We are pleased the third Summit for Democracy took place this year under the Republic of Korea’s leadership.  Through the Summits for Democracy, the United States and other participating governments, along with partners from civil society, youth, and other stakeholders, seek to cement progress in human rights, foster democratic reforms, expand space for independent media, advance women’s rights, combat corruption, and make technology work for democracies and their people, not misused by malign actors as a tool of repression.”

“The year covered by this HRR coincided with the 75th anniversary of the United Nations Universal Declaration of Human Rights (UDHR).  In commemoration of the anniversary, the United States made several new commitments, including to renew investments around the world in democracy and human rights, to help protect human rights defenders online, and to advance racial and gender justice in the United States.”

“In the words of Eleanor Roosevelt, one of the authors of the UDHR, ‘The destiny of human rights is in the hands of all our citizens in all our communities.’  We hope that this Report proves a useful contribution to that shared global effort, by chronicling both sobering developments in specific countries, as well as evidence of progress.”

“The Kremlin’s disregard and contempt for human rights are on full display in its war against Ukraine.  Russian forces employ violence against civilians as a deliberate tool of warfare.  The Report highlights documentation of human rights violations and abuses – some amounting to crimes against humanity – throughout the second year of Russia’s brutal, full-scale invasion of Ukraine.  Civilians, including Ukrainian children, have suffered egregious abuses by Russian forces and other Russian officials.  Tens of thousands of Ukrainian children have been transferred within Russia-occupied parts of Ukraine and/or deported to Russia, in many cases taken from their parents or lawful guardians and forced to take Russian names and citizenship.  Russia is cracking down on its own citizens, bringing spurious criminal charges against hundreds of Russians who have spoken against Putin’s war of aggression.”

“Across Sudan, the Sudanese Armed Forces and Rapid Support Forces have unleashed horrific violence, death, and destruction, including mass killings, unjust detentions, rape, and other forms of gender-based violence.  In December, I determined that members of both forces engaged in war crimes, and that members of the Rapid Support Forces and allied militia engaged in crimes against humanity and ethnic cleansing.  Elsewhere in Africa, Uganda’s government took aim at the human rights of all Ugandans, enacting a broad, draconian anti-LGBTQI+ legislation, including the death penalty for ‘serial offenders.’”

“The conflict between Israel and Hamas in Gaza continues to raise deeply troubling concerns for human rights.  Hamas’ brutal terrorist attacks on October 7 killed around 1,200 people, took approximately 230 Israeli and foreign hostages, and included appalling abuses, including gender-based violence and sexual violence.  As Israel exercises its right to self-defense, we have made clear that it must conduct military operations in accordance with international law and take every feasible precaution to protect civilians.  We continue to urgently raise concerns surrounding the deaths of and injuries to tens of thousands of Palestinian civilians in Gaza, including women, children, persons with disabilities, and other vulnerable persons.  We repeatedly have pressed concerns about Palestinian civilians’ access to humanitarian assistance, displacement of the majority of the population of Gaza, and the unprecedented number of journalists killed.  We have repeatedly condemned Hamas’ abhorrent misuse of civilians and civilian infrastructure as human shields and its continued refusal to release all hostages.  We also continue to condemn the record levels of violence in the West Bank, including attacks by violent extremist settlers against Palestinian civilians.”

“The Report illuminates the ongoing and brutal human rights abuses in Iran, where the regime’s violent repression of its citizens occurs at home and even abroad, including through acts of transnational repression targeting the regime’s perceived dissidents and critics.  Iranian women and members of marginalized communities continue to suffer disproportionately from the regime’s human rights violations and abuses.  Once detained, many prisoners have been harshly punished and even executed for spurious or unjust reasons.”

“The Report illustrates the Taliban’s systemic mistreatment of and discrimination against Afghanistan’s women and girls.  The Taliban have issued over 50 decrees and edicts that effectively erase women from public life.  Credible sources cited in the Report describe how the military regime in Burma continues to use brutal violence against the general population to consolidate its control, killing more than 4,000 people and detaining more than 25,000.”

“The Report documents ongoing grave human rights abuses in the People’s Republic of China (PRC).  For example, in Xinjiang, the PRC continues to carry out genocide, crimes against humanity, forced labor, and other human rights violations against predominantly Muslim Uyghurs and members of other ethnic and religious minority groups.”

In Cuba, more than 1,000 political prisoners are reportedly unjustly detained and subjected to harsh treatment; their family members are targets of threats as well.  In Nicaragua, the Ortega-Murillo regime closed more than 300 civil society organizations in 2023, bringing the number of shuttered organizations to more than 3,500.  The regime also stripped more than 300 individuals of their citizenship and is holding more than 100 political prisoners in appalling conditions.” (Emphasis added.)

“Yet, encouraging developments also can be found in this Report.  For example, although members of marginalized and minority communities continued to suffer disproportionately from human rights violations and abuses in 2023, several countries made important progress.  Kenya affirmed that freedom of expression and of assembly extend to LGBTQI+ persons. Japan enacted a bill to promote understanding of LGBTQI+ issues.  LGBTQI+ persons in Estonia and Slovenia now benefit from legislation recognizing marriage equality.”

“To advance the rights and freedoms of persons with disabilities, the Ministry of Education in Jordan appointed 600 individuals to implement inclusive education programming across the country to ensure children with disabilities could attend school and have the necessary support to enable their learning.”

“The Report also notes advances in implementing labor reforms in Mexico, where workers are overcoming obstacles to organizing and starting to improve working conditions.  As I noted when I helped launch the Biden-Harris Administration’s Global Labor Directive at APEC in San Francisco, advancing labor rights globally boosts American workers and bolsters middle class aspirations here at home.”

“This Report could not have been compiled without the selfless work of human rights defenders, independent journalists, and other civil society leaders whose daily work to advance human rights is an inspiration to us all.  I hope that the honest and public assessments of human rights abuses, as well as the reports of progress, reflected in these pages gives strength to these brave individuals across the globe who often put their lives at risk to improve conditions in their own countries, and, ultimately, make the world a freer, safer place for us all.”

Executive Summary about Cuba. [2]

“There were no significant changes in the human rights situation in Cuba during the year.”

“Significant human rights issues included credible reports of: arbitrary or unlawful killings, including extrajudicial killings; torture and cruel, inhuman, and degrading treatment by the government; harsh and life-threatening prison conditions; arbitrary arrest and detention; serious problems with the independence of the judiciary; political prisoners; transnational repression against individuals in another country; arbitrary or unlawful interference with privacy; punishment of family members for alleged offenses by a relative; serious restrictions on freedom of expression and media freedom, including violence or threats of violence against journalists, unjustified arrests or prosecutions of journalists, censorship, and enforcement or threat to enforce criminal libel laws to limit expression; serious restrictions on internet freedom; substantial interference with the freedom of peaceful assembly and freedom of association, including overly restrictive laws on the organization, funding, or operation of nongovernmental and civil society organizations; restrictions of religious freedom; restrictions on freedom of movement and residence within the country and on the right to leave the country; inability of citizens to change their government peacefully through free and fair elections; serious and unreasonable restrictions on political participation; serious government corruption; extensive gender-based violence, including femicide and other forms of such violence; trafficking in persons, including a policy or pattern of state-sponsored forced labor; and prohibiting independent trade unions and significant and systematic restrictions on workers’ freedom of association.””

“The government did not take significant steps to identify and punish officials who may have committed human rights abuses.”

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[1] U.S. State Dep’t, 2023 Country Reports on Human Rights Practices (Apeil 22, 2024).

[2] U.S. State Dep’t, 2023 Country Reports on Human Rights Practices: Cuba (April 22, 2024); The US State Department has ‘credible reports’ on arbitrary executions and torture in Cuba, Diario de Cuba April 22, 2024).

U.S. Needs To Improve Relations with Cuba

Cuba recently has been the subject of many related news reports. First, the island is suffering from many economic problems, including many younger Cubans abandoning the island for life elsewhere. Second, many private enterprises on the island are being successful.  Third, this year Russia and China have been increasing their connections with Cuba to support that country and oppose U.S. actions against the island. Fourth, the above developments pose challenges to the U.S., which needs to return to its positive relationships with Cuba that were started in the Obama Administration.

Cuba’s Recent Economic Problems[1]

“With sanctions tightened by the Trump Administration (and not repealed by the Biden Administration), Cuban economic mismanagement and the impact of the pandemic and other events, Cuban inflation has soared, basic foods and medicines have become scarce, and money transfers from Cubans in the U.S. have dwindled. The flow of foreign tourists has also dried up.”

In July 2021, this “economic crisis sparked a wave of protests across the island, which prompted a harsh response from security forces. In the following months the government brought charges against 930 protesters and sentenced 675 of them to prison terms, some as long as 25 years, according to Laritza Diversent, director of human-rights group Cubalex.”

In August 2022 a “fire destroyed 40% of the fuel storage capacity at the port city of Matanzas, leading to increased electricity outages that even before the disaster were lasting up to 20 hours a day in many places.”

Cuba’s economic difficulties also were exacerbated by the Trump Administration’s 2019 imposition of the harshest economic sanctions against Cuba in more than a half-century. It ended virtually all non-family travel to Cuba and placed new limits on the money Cuba-Americans could send to family on the island. This Administration also began implementing an old law aimed at blocking both U.S. and foreign investment on the island that had been on hold because of immense opposition from U.S. allies. This move unleashed a law allowing Cuban Americans to sue in U.S. courts any company that benefits from their property on the island that had been confiscated by Fidel Castro’s regime. More significantly, the Trump Administration re-designated Cuba as a state-sponsor of terrorism.[2]

In response to these problems, as of August 2022, “More than 175,000 Cuban migrants were apprehended in the U.S. between last October and July, six times as many as in the previous 12-month period, according to U.S. Customs and Border Protection. Most are young, single adults, according to government statistics. Many are relatively well educated, say people who work with the migrants.” This “exodus reflects the desperation, the lack of hope, and the lack of future people on the island feel,” said Jorge Duany, head of the Cuban Research Institute at Florida International University.”

Recent Expansion of Cuban Private Enterprises on the Island[3]

According to Miami Herald, “over the past two years . . . [p]rivate businesses, banished from the island by Fidel Castro more than 60 years ago, are making a strong comeback, employing more people than state enterprises, gaining trust from foreign creditors and helping put food on Cubans’ tables at a time of widespread scarcity.” Recently Cuba’s economy minister, Alejandro Gil, in a speech at the National Assembly reported that “the private sector is on track to buy over a billion dollars in goods by the end of [this] year—outpacing the government as the country’s largest importer.”

“[P]rivate grocery stores are taking the place of the empty-shelf government supermarkets, and all sorts of [private] businesses are filling the space once monopolized by the state. Some restaurant owners are now opening chains or franchises. Others are entering partnerships with cash-strapped local enterprises owned by the state and paying in foreign currency for the supplies needed for their production lines.”

“Cuban [government] leaders have long resisted [such a development] because it aims at the heart of the state-controlled Marxist economy.” But “[t]they’ve had no choice but to allow it amid the most severe economic crisis.” As a result, Cuba is looking “less like the highly centralized socialist economy . . . and more like a country in transition, where a nascent business community coexists with inefficient state companies.”

According to Ricardo Herrero, executive director of the Cuba Study Group, a Cuban-American organization that helps train entrepreneurs on the island, who “share similar value sets with entrepreneurs here in the  United States.” They “want the government off their backs and want to see better relations between the United States and Cuba, particularly between Cuba and the diaspora.” Moreover, “some Cubans living in Miami are even owners or partners in some of these private companies.”

The Cuban “private sector now employs around 35% of Cuba’s work force, about 1.6 million workers, surpassing the 1.3 million employed by state enterprises, according to Cuban economist Juan Triana, a professor at the Center for the Study of the Cuban Economy at the University of Havana.

These non-state actors through the end of this April were responsible for $270 million of Cuba’s imports or 61% of its total imports according to Pedro Monreal, a Cuban economist who works for the U.N. Educational, Scientific and Cultural Organization.

On August 2, 2023, however, Cuba’s Central Bank announced new regulations that will require small private businesses to offer their customers ways to make digital payments and promptly to deposit all cash revenue in their bank accounts while banning cash withdrawals to pay operating expenses. This also will ban private enterprises from using their Cuban pesos to buy U.S. dollars in the informal market to pay for goods purchased abroad while the government is unable to provide food and essential goods for the people. As a result, these regulations are another government attempt to regulate the private sector and are expected to cause immense practical difficulties in the state-owned banks and system to implement the regulations and regulate increases in retail prices on the island.

Russian and Chinese Recent Assistance to Cuba[4]

Starting in February 2023, “high-level Russian officials began a steady stream of public visits to Cuba. Barely a month went by without a high-profile Russia-Cuba visit.” And high-level Cuban officials also were visiting Russia. Here is at least a partial list of those visits this year:

  • “In March, Nikolai Patrushev, secretary of the Russian Security Council and Igor Sechin, the powerful director of the Russian state oil company, Rosneft, met with leaders in Havana.”
  • “In April, Russian foreign minister, Sergey Lavrov, visited the island as part of a regional tour that included two other American adversaries — Venezuela and Nicaragua.”
  • “In June, Cuban Prime Minister Manuel Marrero Cruz visited Russia for more than ten days, including a meeting with Putin.
  • More recently, “Alvaro Lopéz Miera, the Cuban defense minister, traveled to Moscow . . . for discussions with his Russian counterparts — including Sergei Shoigu, one of the notorious architects of the war in Ukraine.” And Shoigu announced that “Cuba has been and remains Russia’s most important ally in the [Caribbean] region.” Shoigu promised that Moscow was “ready to render assistance to the island of freedom and to lend a shoulder to our Cuban friends.”
  • Similar comments came from “Cuban Deputy Foreign Minister Gerardo Peñalver, [who] described the two countries as ‘strategic allies’ cooperating against ‘unilateral coercive measures’ from Washington.”

These contacts have resulted in a memo of understanding whereby Russia will invest in Cuba’s agricultural lands to produce goods for the Russian market, Russia will increase its commercial flights to Cuba’s eight airports, will modernize Cuba’s major industries and reduce tariffs and costs for Russian exports to the island and will construct an all-Russian hotel, shopping mall and banking facilities in Cuba.

In addition, “Russia pledged to give oil and various industrial supplies to Cuba. By one estimate, Moscow has already sent the island more than $160 million worth of oil this year. And Russian news agencies announced that additional supplies will follow.”

“Cuba now receives direct flights from Russia (flights had been suspended after the invasion of Ukraine), and it has joined the ’Mir’ payment system that Moscow created to facilitate the conversion of rubles to pesos and other currencies for tourism, trade and aid. Over 1,000 Russian oil executives and staff are expected to the visit Cuba by year’s end.”

In early July, “the Russian naval ship, Perekop, diverted to Cuba from the country’s Baltic Sea fleet more than 7,000 miles away. The ship carried approximately 100 Russian naval cadets, humanitarian assistance and various equipment to Cuba. The Russian ambassador and the deputy commander of the Russian Navy attended the ship’s elaborate arrival ceremony, symbolizing that this was the beginning of deeper collaboration.”

China, on the other hand, is Cuba’s largest trading partner, and plays a role in the island’s agricultural, pharmaceutical, telecommunications and infrastructural industries. Beijing also owns a significant measure of Havana’s foreign debt.

In early June 2023, there were reports that China was planning to build an electronic listening station in Cuba in exchange for paying Cuba billions of U.S. dollars and that U.S. officials were concerned that such a station could be capable of spying on the United States by intercepting electronic signals from nearby U.S. military and commercial facilities and could amplify Beijing’s technological capacity to monitor sensitive operations across the Southeastern U.S., including several military bases. This Chinese base is part of what the US intelligence community identifies as a wider Chinese effort to intercept American communications, steal secrets and prepare for increased competition.” However, on June 10th an anonymous Biden official said that before 2019, the U.S. knew there was an operating Chinese spy base or facilities in Cuba that could intercept electronic signals from nearby U.S. military and commercial buildings.

In any event, Evan Ellis, a Latin America analyst at the U.S. Army War College, saw such an electronics facility as “a sign of the island’s financial desperation. China gives money to Cuba it desperately needs, and China gets access to the listening facility.” However, Michael Bustamante, a Cuba expert at the University of Miami, said aside from Cuba’s financial dire straits, the deal with China may reflect that the Cuban government feels it has little to lose given how poor its relationship is with the U.S.

Moreover, according to the Wall Street Journal, in later June 2023, Cuba and China were negotiating to establish a new joint military training facility on the north coast of the island that would be “part of China’s ‘Project 141,’ an initiative by the People’s Liberation Army to expand its global military base and logistical support network. It also is a sign that China now sees its struggle with the U.S. as global and that it must operate around the world to fend off Washington and protect Chinese interests.

U.S. and Cuban Exchanges About Chinese and Russian Connections with Cuba[5]

On June 20, 2023, U.S. Secretary of State Antony Blinken said that the U.S. would “have deep concerns” about Chinese military activity on Cuba, and that he made this message clear on his recent visit to Beijing.

The next day at the June 21 State Department Press Briefing, , the Department’s Principal Deputy Spokesperson, Vidant Patel, said, “The Secretary raised the serious concerns the U.S. would have about any intelligence or military facility in Cuba, saying that we will continue to defend our interests here.” Then in response to a reporter’s question, Patel added, “[W]e we are monitoring and responding to any PRC attempts to expand its military or security presence around the world, and we watch how potential PRC actions may impact the United States. Our experts assess that our diplomatic efforts have slowed the PRC down, and there of course continue to still be challenges, but we continue to be concerned about the PRC’s longstanding activities with Cuba. The PRC will keep trying to enhance its presence in Cuba and we will keep working to disrupt it.”

These U.S. assertions were strongly denounced by Cuba’s Minister of Foreign Affairs, Bruno Rodriguez Parrilla, in the following statement:

  • “The assertions made by the US Secretary of State about the presence of a Chinese spy base in Cuba are false, totally false. Cuba’s standing on this subject is clear and unequivocal.”
  • “These are unfounded allegations.”
  • “The [U.S.] aim is to use them as a pretext to maintain the economic blockade against Cuba and the measures of maximum pressure that have strengthened it in recent years, and which have been increasingly rejected by the international community, as well as inside the United States. The rejection includes the demand to remove Cuba from the arbitrary list of States Sponsors of Terrorism.”
  • “Cuba is not a threat to the United States or any other country.  The United States implements a policy that threatens and punishes the entire Cuban population on a daily basis.”
  • “The US has imposed and owns tens of military bases in our region and also maintains, against the will of the Cuban people, a military base in the territory that it illegally occupies in the province of Guantánamo.”
  • “We are witnessing a new disinformation operation, similar to the many others in the United States throughout its long history of hostility against our country.”

On August 2, Granma, the official organ of Cuba’s Communist Party’s Central Committee, reiterated Cuba’s denunciation of the U.S. embargo (blockade) of Cuba, with the following words:

  • “The Ministry of Communications (MICOM) is the target of the brutal blockade of the United States against Cuba, according to confirmation of damages that only in the period August 2021-February 2022 caused economic damages and losses that exceeded 104 million dollars.”
  • “This was denounced by the first deputy minister of the sector, Wilfredo González Vidal, who specified to the Cuban News Agency (ACN) that the cruel economic, commercial and financial monstrosity reduces the dynamism and speed of the digital transformation process of our country.”
  • “The set of actions developed by the United States, he said, ‘continues to be the main impediment to a better flow of information and broader access to the Internet and Information and Communication Technologies (ICT) for our people.’”
  • “However, in Cuba the expansion of access to the network of networks and knowledge continues, and today it has 7.8 million mobile phone users and of them almost seven million access the Internet through this important channel, he noted.”
  • “This, he asserted, is due to the effort and will of the State to advance in the information society, creating a responsible culture on the use of new technologies in favor of the economy and society.”
  • “The official pointed out that the economic damages and losses caused to the Communications System, as a consequence of the blockade, are evident throughout the sector, that is, in Telecommunications, Information Technologies and Postal Services.”
  • “Likewise, according to the ACN, it described as significant the effects due to the limitations of supplies of technologies and equipment produced under license, or using North American components, which forces it to go to other markets, much further away, an obstacle for which the greatest effects are quantified to sector.”

In July 2023 the U.S. went beyond words by sending “a nuclear-powered submarine, the USS Pasadena, to the American-held base at Guantanamo Bay. Officially a ‘logistics stop,’ this was a warning and a show of strength. The Cuban Ministry of Foreign Affairs condemned the submarine visit as a ‘provocative escalation.’ The US Navy said the move was ‘not without precedent.’”

U.S. Should Return to Positive Engagement with Cuba[6]

Only a few years ago, the government of Cuba was pursuing closer ties to Washington. According to William LeoGrande, a Latin America expert at American University, “Every major component of Cuba’s economic strategy in the last two decades had been premised on long-term expectations that the relationship with the U.S. would improve.”

In December 2014, this Cuban effort paid off when the two countries presidents (Barack Obama and Raul Castro) announced that their countries would be pursing efforts to improve relations, and that effort produced positive results for the rest of Obama’s presidency ending in early January 2017. Everyone from Conan O’Brien to Andrew Cuomo to Steve Nash began showing up in Havana. As a University of Miami’s Cuba expert, Michael J. Bustamante, noted at the time, “the American flag has even become the most stylish national standard, appearing on Cubans’ T-shirts, tights and tank tops.”

However, the Trump presidency (2017-21) and the Biden presidency since early 2021 have been engaged in U.S. policies of hostility toward Cuba.

Now the emergence of an important private enterprise sector of the Cuban economy has provided the opportunity for the two countries to return to better relations that improve the living conditions of the people on the island. This argument was well put in an op-ed article in the Miami Herald by Miguel “Mike” Fernandez, the Chairman of Coral Gables, Florida’s MBF Healthcare Partners, who said the following:

  • “It is time to shift our focus toward uplifting the Cuban people, primarily by supporting and empowering the emerging private sector, to restore hope and a bright future for the nation.”
  • “By promoting and facilitating engagement and collaboration with Cuba’s emerging private sector, the United States can foster positive change, enhance regional stability and tap the vast potential of Cubans’ entrepreneurial spirit, while reducing the vast numbers of Cuban immigrants arriving at the southern border.”
  • “A notable, and not so quiet, course change has begun as the Cuban government has had to accept the reality that it’s broke. Hence the emergence of a private sector, which can use our support because of our know-how and capital resources as a viable alternative to a punitive strategy. . . . [This private sector] is providing solutions for Cubans where the government no longer can. . . . [and] presents an opportunity to transform the country’s economic landscape.”
  • “It is crucial for the United States to support and engage with Cuba’s private sector to reduce emigration to this country and promote stability and prosperity within the island. . . . By redirecting our efforts toward supporting the growth of entrepreneurship, small businesses and foreign investment, we can foster an environment of economic independence for Cubans.”

At the top of the “to do” list for the U.S. is cancelling (1) the U.S. embargo [blockade] of Cuba; (2) the U.S. designation of Cuba as a state sponsor of terrorism, which the Obama Administration had done in 2015; and (3) the ban on U.S. tourist visas for Cuba. The U.S. should also initiate diplomatic discussions with Cuba regarding many issues, including U.S. positions on Cuba set forth in U.S. annual reports on world-wide trafficking in persons; religious freedom; and human rights.[7]

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[1] E.g., Cordoba, Cuban Migrants Head to the U.S. in Record Numbers, W.S.J. (Aug. 24, 2022)

[2] Trump declares economic war on Cuba, the Conversation (April 18, 2019); Communications sector severely damaged by the US blockade, Granma (Aug. 2, 2023).

[3] Torres, Capitalism makes strong comeback in Cuba after six decades of socialism. Will it last?, Miami Herald (June 23, 2023); Torres, How Miami companies are secretly fueling the dramatic growth of Cuba’s private businesses, Miami Herald (June 23, 2023); Fernandez, Transforming U.S.-Cuba relations: From dominating to elevating/Opinion, Miami Herald (July 19, 2023); MF Healthcare Partners, Rodriguez, Evaluate new proposals for measures in commerce to promote payment through electronic channels, Granma (Aug. 3, 2023); Torres, Sudden banking cash-withdrawal limit threatens private sector and food imports to Cuba, Miami Herald (Aug. 4, 2023).

[4] Demirjian & Wong, China to Build Station That Could Spy on U.S. from Cuba, Officials Say, N.Y. Times (June 8, 2023); Strobel & Lubold, Cuba to Host Secret Chinese Spy Base Focusing on U.S., W.S.J. (June 8, 2023); Cordoba, Cuba’s Spy Deal With China Has Echoes of Cold War Tensions, W.S.J. (June 8, 2023); Gale & Ramzy, Cuba Base Would Help China Identify Strike Targets in U.S., W.S.J. (June 9, 2023); Hutzler & Vyas, Cuba Spy Station Brings China Closer to America’s Doorstep, W.S.J. (June 9, 2023); Demirjian & Wong, China Has Had a Spy Base in Cuba for Years, Official Says, N.Y. Times (June 10, 2023); Lubold & Strobel, White House Says China Has Had Cuba Spy Base Since at Least 2019, W.S.J. (June 11, 2023); Strobel, Lubold, Salama & Gordon, Beijing Plans a New Training Facility in Cuba, Raising Prospect of Chinese Troops on America’s doorstep, W.S.J. (June 20, 2023); Editorial, China’s New Military Footprint in Cuba, W.S.J. (June 20, 2023; Yu, China Plans With Cuba for Global Dominance, W.S.J. (June 29, 2023); Suchlicki, The Russians are coming back to Cuba, prepared to challenge U.S. on its doorstep/Opinion, Miami Herald (June 23, 2023); Bihart, America’s Foes Are Joining Forces, N.Y. Times (July 3, 2023); Torres, China has had a spy base in Cuba for decades, former intelligence officer says, Miami Herald (July 5, 2023).Suri, Opinion: In tough times, Russia turns to a Cold War comrade, CNN.com (July 20, 2023).

[5] Editorial, China’s New Military Footprint in Cuba, W.S.J. (June 20, 2023); U.S. State Dep’t, Department Press Briefing—(June 21, 2023); Cuba Foreign Minister Parrilla, Cuba is not a threat to the United States or any other country, Granma (June 13, 2023). Communications sector severely damaged by the US blockade, Granma (Aug. 2, 2023);

[6] President Obama Rescinds U.S. Designation of Cuba as a ‘State Sponsor of Terrorism,” dwkcommantaries.com (04/15/15); U.S. Rescinds Designation of Cuba as a “State Sponsor of Terrorism, dwkcommantaries.com (05/29/15)  U.S. State Dep’t, U.S. Relations with Cuba (Nov. 22, 2019).

[7] This post does not comment on the multitude of issues regarding U.S.-Cuba relations. However, this blog has published a list of many of these posts about many of these issues, which has not been recently updated, (See, e.g., List of Posts to dwkcommentaries—Topical: CUBA [as of 5/4/20].

Cuba’s Suffering from Continued U.S. Hostility  

After the Obama Administration had taken steps to improve U.S. relations with Cuba, the Trump Administration has gone in the opposite direction, as discussed in many earlier posts.[1]

U.S. Actions and Policies Against Cuba

These negative actions and policies include the following: continuation of U.S. embargo of Cuba; elimination of one of the “general licenses” for U.S. nationals to travel to Cuba; cancelation of right of U.S. cruise ships to make stops on the island; reducing amount of money U.S. nationals legally may remit to relatives and friends in Cuba; allowing litigation in U.S. federal courts over alleged trafficking in U.S.-owned property on the island under the Halms-Burton Act; additions to the U.S. “Cuba Restricted List” of entities and sub entities with which U.S. nationals may not transact business; U.S. negative reports on Cuban human rights, religious freedom and human trafficking; unilateral U.S. report about increasing Cuban Internet access; U.S. consideration of re-designating Cuba as a State Sponsor of Terrorism and of re-instituting U.S. parole for Cuban medical professionals; additional U.S. sanctions against Cuba for its alleged support of Venezuela.[2]

While there are recent bilateral bills in Congress to end the embargo and enhance U.S. nationals’ rights to travel to Cuba, they have not received, and are unlikely to receive, any consideration in the current Senate and perhaps the House of Representatives.[3]

Negative Impact on Cuba of U.S. Actions and Policies[4]

The negative impact, especially of the recent U.S. limiting the ability of Americans to travel to the island, has especially harmed Cuba’s emerging private sector. For example, a website and app used to make reservations, rate restaurants, and pay for meals at most restaurants throughout Cuba (AlaMesa) had to reduce its staff from 20 to 12 in response to a 30 to 40% decline in reservations.

But “Cuba’s economic woes go beyond U.S. policy. The island, with one of the world’s last communist governments, has been caught in a perfect storm. Its economy has been stagnant for years, averaging only about 1 percent annual growth. Its centrally-planned economy imports over two-thirds of its food. Its ally, Venezuela, has been in political and economic turmoil, causing an overall decline in oil shipments from the South American country. The island’s medical exchange program, a major source of revenue, also took a blow. Last November, Cuba recalled 8,517 medical professionals from Brazil in response to President Jair Bolsonaro’s tough stance against Cuba.”

The U.S. allowance of litigation over alleged trafficking in Cuba property owned by Americans is seen as discouraging foreign investment today.

Recently “there have been shortages in basic goods such as eggs, cooking oil and chicken.”

Cuban Government’s Response to Rough Economic Conditions[5]

At the July 13 closing  session of the National Assembly, President Diaz-Canel reported that a series of emergency measures announced that month aimed to stimulate domestic production and he hoped for slight growth this year. “Even in the eye of the hurricane of adversity that the enemy conceived to suffocate us, the Cuban economy can grow slightly, thanks to the fact that we have the potential to resist and continue advancing in our development.” He added that the economy grew 2.2% in 2018, compared with an earlier estimate of 1.2%, and that stronger base would make it harder to reach this year’s goal of 1.5% growth.

The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The next week of July 15, Cuba experienced power outages and fuel shortages that prompted citizen concern about the possible emergence of a “Special Period II” of harsh economic shortages. Cuba Energy Commissioner Raul Garcia sought to reassure citizens that the power outages were due to breakdowns in power plants, not oil shortages, and that those outages would be fixed by the end of the week.

These measures came at a time when falling Cuban imports have caused scattered shortages of food, hygiene and other products across the country. Diaz-Canel admitted the country was suffering from a liquidity crisis and bureaucracy and was short on fuel. He called on officials and the public to join together in the national emergency and each do their part to move the country forward. “Putting aside vanities and selfishness, practicing honesty, industriousness and decency, we will also be contributing to GDP,” he said.

On August 2, the Cuban government for the first time published details of its foreign exchange earnings from services such as telecommunications, hotels, health and education assistance, in an apparent concession to creditors. The biggest export earner in 2018 was health services at $6.4 billion, followed by “support services” at $1.3 billion while hotel and related services garnered $970 million, followed by telecommunications at $722 million and transportation and support services, which includes everything from airlines to docking fees, at around $600 million. Total exports were $18.6 billion in 2013 and $14.5 billion last year, down from $18.6 billion in 2013. Imports fell from $15.6 billion to $12.6 billion.

All of these developments have resulted in an increase in the country’s foreign debt from $11.9 billion in 2013 to $18.2 billion in 2016, an increase of almost 53% percent.

Cuba Introduces Price Controls[6]

In early July  President Miguel Diaz-Canel announced that the government had adopted a series of emergency measures to fight economic stagnation and dwindling foreign currency earnings that began in 2015 as the economy of key ally Venezuela imploded, and that have been aggravated by a series of new U.S. sanctions. The measures included increased wages and pensions for more than 2 million state employees, amounting to more than 8 billion pesos annually, or close to 13 percent of this year’s budget. The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The other shoe dropped on July 30, when the President announced a ban on all retail and wholesale price increases except for products imported and distributed by the state where already-set profit margins cannot be increased. In recent weeks, regional authorities have slapped price controls on taxi fares, beverages and haircuts, among other items. The price controls differ from province to province.

These price controls are especially difficult for the private sector.

For example, on August 15, retail prices in Havana were set for some basic foods such as beans, pork, lemons, bananas, onions and cabbage. The retail price of pork, a staple of the Cuban diet, was set at 45 pesos a pound, although market sellers said it previously went for some 65 pesos a pound. And farmers still charge 28 pesos a pound for pork. Another example is lemons, which used to sell for 30 pesos a pound,  now has a new maximum price of 10 to 15 pesos, which is the same price that farmers charge for the lemons.

On August 12, Cuba  Minister of Finance and Prices, Meisi Bolaños, stated, “We are going to be rigorous with those who try, by means of devices, to evade and violate the new measures approved to avoid the increase in prices. . . . We cannot allow that measures like these that the country approves to boost the  economy and generate greater capacity to buy in the population to be spoiled by a few unscrupulous that cause Cubans to lose confidence in state control.” The Minister also denied that the purpose of the measures is “to stop the development of non-state forms.”

Economists assert that such price controls are ineffective. Andrew Zimbalist, a Cuba expert at U.S.’s Smith College, said, “Such measures are usually okay for short periods of time, but if they stay in place they begin to create serious distortions in the economy.” A similar opinion was expressed by Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Universidad Javeriana Cali. He said, “The more they control prices in formal markets, the more inflation and instability there will be in informal markets and the less incentive the productive sector has.”

Experts also have criticized Cuba’s verbose regulations of the private sector that were introduced at the end of 2018. They concluded that these “regulations approved by the Council of Ministers were written in reverse: excessive documents (29) and processes that represent obstacles in the application process for licenses, cracking down on violations, excessive inspections, the definition of twenty-two oversight agencies for the private sector (with specific departments to deal with them), the new requirement of a bank account with two months’ worth of taxes as credit in this account, needing to pay payroll taxes from the very first employee, etc.”

Conclusion

 Obviously Cuba is in a very perilous situation that the U.S. has helped to create. All who support normalization of the two countries relations need to voice their opinions to their senators and representatives and to Trump Administration officials.

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[1] See List of Posts to dwkcommentaries—Topical: CUBA.

[2] E.g., Sabatinni, Trump Doubles Down on Failed Cuba Policy, N.Y. Times (July 24, 2019); U.S. Updates Cuba Restricted List (July 26, 2019); U.S. State Dep’t, State Department Updates the Cuba Restricted List (July 26, 2019); U.S. State Dep’t, List of Restricted Entities and Subentities Associated With Cuba as of July 26, 2019 (July 26, 2019); New U.S. Government Hostility Towards Cuba’s Medical Mission Program, dwkcommentareis.com (Aug. 14, 2019); “U.S. (Trump) and Cuba, 2016-2017,”  “U.S. (Trump) and Cuba (2018),” “U.S. (Trump) and Cuba, 2019,” “U.S. Parole Program for Cuban Medical Professionals, 2019,” “Cuba, Venezuela and U.S., 2019,”  “Cuba Restricted List, 2019,”  “ Helms-Burton Act Title III Authorization, 2019” and U.S. Embargo of Cuba, 2019” sections  in List of Posts to dwkcommentaries—Topical: Cuba.

[3] See these posts to dwkcommentaries.com: New Bill To End U.S. Embargo of Cuba (Feb. 9, 2019); Senator Leahy’s Senate Floor Speech To End Embargo of Cuba (Feb. 18, 2019); Congressional Bipartisan Bills for Reversal of U.S. Policies Regarding Cuba (Aug. 13, 2019).

[4] Sesin, In Cuba, entrepreneurs see a steep decline with Trump policies, NBC News (July 6, 2019); Cuba Says Fuel Shortage, Blackouts Are Temporary, Being Fixed, Reuters (July 19, 2019); Frank, Cuba hopes for slight growth as Trump pummels Caribbean island, Reuters (July 13, 2019).

[5]  Kuritzkes, The End of Cuba’s Entrepreneurship Boom, Foreign Policy (July 15, 2019); The decline in tourism from the United States to Cuba already feels strongly on island, France23 (July 18, 2019);Taylor, Cubans Talk About Impact of Trump Administration Travel Policy Changes, Travel Pulse (July 22, 2019); Myers, A Visit To Cuba Reveals Economic Pain of Trump’s Travel Ban, Travel Weekly (July 29, 2019); Eaton, Cuba Trying to Attract Tourists and Investors Even as U.S. Clamps Down, Tampa Bay Times (July 30, 2019); Reuters, Cuba Reveals Health, Hotel, Other Service Earnings, N.Y. Times (Aug. 2, 2019); Whitefield, Cuba Feels the Pinch of the Trump administration’s travel restrictions, L.A. Times (Aug. 11, 2019); Torres, Cuba’s foreign debt is on the rise despite big profits from medical services abroad, Miami Herald (Aug. 12, 2019);Myers, Taking the pulse of demand for Cuba travel, Travel Weekly (Aug. 13, 2019); The Cuban economy is increasingly indebted, official figures reveal, Diario de Cuba (Aug. 15, 2019).

[6] The Government of Havana sets maximum prices for sale of products, Cubadebate (July 28, 2019); Frank, Cuba, battling economic crisis, imposes sweeping price controls, Reuters (July 30, 2019); Vela, Cuba’s Price Control Is Short-Term Fix To Production Problems, Economist Says, ABC10 News  (July 30, 2019); Fuentes Puebla & Romeo Matos, Price control, a necessary complement to the salary increase in the budgeted sector, Cubadebate (Aug. 1, 2019); The Cuban Government warns that it will be relentless in the face of ‘artifice’ to avoid its price cap, Diario de Cuba (Aug. 13, 2019); Reuters, Cuban Government Imposes Price Controls as It Seeks to Keep Lid on Inflation, N.Y. Times (Aug. 15, 2019); Fernandez, It’s a Long and Winding Road for Cuba’s Private Sector, Havana Times (Aug. 15, 2019).