Russia’s Top Security Official Meetings in Havana     

On February 27, 2024, Nikolai Patrushev, Russia’s to security official, met in Havana with Cuba’s retired general Raul Castro. Other Russians in attendance were officials from Russian spy agencies like the Federal Security Service and the Foreign Intelligence Service in addition to officials from the Ministry of Internal Affairs, the Ministry of Justice and other government agencies.[1]

Patrushev said Moscow is ready to provide “full, comprehensive support to our Latin American friends, including preventing interference in the internal affairs of countries friendly to us, discrediting their legitimate authorities, intimidating the population, and destabilizing the economy.”

According to a Russian newspaper, Rossiyskaya Gazeta, they discussed “issues of practical cooperation between Russia and Cuba in the field of security,” reinforcing views that despite being out of office, the 92-year old Cuban revolutionary leader is still making important military and political decisions.

This Russian official also met and discussed security and economic issues with Cuban President Miguel Díaz-Canel, who reportedly praised Putin’s recent interview with former Fox host Tucker Carlson, an hours-long exchange in which the Russian leader tried to provide historical justifications for his invasion of Ukraine. Afterwards Diaz-Canel said this exchange provided historical justifications for Russia’s invasion of Ukraine.

In a subsequent meeting sith officials from Cuba, Venezuela, Bolivia and Nicaragua, Patrushev promised “comprehensive support” to Russian allies in Latin America against U.S. “interference.”

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[1] Torres, Top Putin ally meets Castro, vows ‘comprehensive support’ to allies in Latin America, Miami Herald (Feb. 27, 2024).

 

 

 

Cuba and European Union Draw Closer Together 

On September 9 in Havana, the European Union’s foreign policy chief, Federica Mogherini, pledged the EU’s help for development of Cuba’s economy.[1]

At a joint press conference with Cuba Foreign Minister, Bruno Rodriguez, Mogherini said, “The EU is Cuba’s top commercial partner and investor, and we have tripled cooperation in the last two years.” She also said the EU would continue to offer financial support for Cuba’s economic reforms that would encourage foreign investment on the island.

She noted that  the two countries already held bilateral talks on topics such as sustainable development and human rights within the framework of the 2017 Political Dialogue and Cooperation pact. She said, “We have also continued the dialogue on the situation in the region and cooperation, on Venezuela in particular.”

There also was discussion of the U.S. intensification of its embargo (blockade) against Cuba, and its extraterritorial effects.

Earlier Mogherini, met with Cuba President Miguel Diaz-Canel. She was accompanied by the EU Ambassador to Cuba, Alberto Navarro; the Chief of Staff of the EU’s High Representative, Stefano Grassi; and the director for the Americas, Edita Hrda. Diaz-Canel was accompanied by Cuba’s Minister of Foreign Affairs, Bruno Rodríguez Parrilla; its General Director of Bilateral Affairs of the Foreign Ministry, Emilio Lozada García; and the Cuban Ambassador to the European Union, Norma Goicochea Estenoz.

Last week the Patriotic Union of Cuba (UNPAC) and CubaDecide called for national protests on Sunday (September 8) against the conference with the EU, and on Sunday Cuban officials arrested more than 100 people who were planning to hold such a protest to demand a stronger EU stance on Cuba violations of human rights. Another Cuban group, the Christian Democratic Party of Cuba (PDC-Cuba), called on the EU to denounce Cuba’s violations of human rights and democratic freedoms. In addition, almost 400 activists sent a letter to Sweden’s Minister of Foreign Affairs commending its criticisms of Cuba’s human rights abuses.

After Mogherini’s visit to Cuba, two Cuban opposition groups– Independent Trade Union Association of Cuba (ASIC) and the International Group for Corporate Social Responsibility in Cuba (GIRSCC)—leveled denunciations of Mogherini’s statements on the island. They said, “It is outrageous to see this commissioner throwing flattery at the Castro dictatorship – one of the bloodiest and most repressive in the world, which for 60 years has violated, cruelly and systematically, the most elementary and precious rights of its population – at a time when that suffocates with renewed commitment to Cuban democratic dissent.”

Moreover, the two groups said, “We still do not understand, otherwise, how the commissioner, in her repeated trips to Cuba, has never approached the organized political expressions of the democratic opposition, not even a single opponent victim of oppressive actions of the dictatorship.”

These two groups recalled that “coinciding with their arrival in Cuba, State Security forces violently broke into the headquarters of the Patriotic Union of Cuba (UNPACU), in Santiago de Cuba, arresting 22 of its militants and confiscating all documentary material and solidarity that was in that center.” Moreover, they said that this year “the actions of harassment, trials and arbitrary detentions against independent trade union activists and their families have become even more cruel and systematic, with the aim of suppressing ASIC and arresting its main leaders.”

Conclusion

The increased EU-Cuba economic collaboration is one of the consequences of the U.S. continuing embargo (blockade) of the island and the various Trump Administration’s policies and actions hostile to Cuba. In short, these U.S. policies and actions are also hostile to U.S. economic interests.

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[1] Acosta, Marsh & Osterman, EU stresses support for Cuba even as U.S. hikes sanctions, Reuters (Sept. 9, 2019); Diaz-Canel received Federica Mogherini, Cubadebate (Sept. 9, 2019); Federica Mogherini: the Government of Cuba ‘is a key partner for us,’ Diario de Cuba (Sept. 9, 2019); Bruno Rodríguez and Mogherini tie loose ends before the Cuba-European Union Council, Diario de Cuba (Sept. 9, 2019); Cuban organizations call on the EU to denounce the omission of Havana’s commitments, Diario de Cuba (Sept. 9, 2019); The EU must demand from Havana the same conduct as the rest of its member states: OCDH, Diario de Cuba (Sept. 9, 2019); More than 30 activists released, ‘some of them very beaten,’ denounces UNPACU, Diario de Cuba (Sept. 9, 2019);Brussels offers Havana more financing to accompany the ‘update’ of its economy, Diario de Cuba (Sept. 10, 2019); Second Cuba- European Union Joint Council held in Havana, Granma (Sept. 11, 2019); Organizations consider Mogherini’s ‘outrageous’ statements in Cuba, Diario de Cuba (Sept. 12, 2019).

 

 

New Cuba Constitution Draft Recognizes Right to Private Property

Since Cuba’s election of a new president this past April, an official commission has been drafting a new constitution for the island nation. Recently, the commission presented the draft to the 7th Plenum of the Central Committee of the Party and the Council of State, in which each of its precepts was “deeply analyzed.” On July 21-23 the draft will be presented for approval to Cuba’s national assembly (the National Assembly of the People’s Power), and later this year to the people in a national referendum.[1]

On July 14, an official website of the Communist Party of  Cuba, published a summary of the current draft of the new constitution that said it recognized both a free market and private property. More specifically, it said the draft “ratifies constitutionally the importance of foreign investment for the economic development of the country, with due guarantees. Regarding private property on the land, a special regime is maintained, with limitations on its transmission and the preferential right of the State to its acquisition through its fair price.”

On the other hand, this summary reaffirmed that state enterprise and central planning are the pillars of the economy and that the Communist Party would remain as the dominant political force.

Cuba expert Luis Carlos Battista at the Washington-based Center for Democracy in the Americas cautioned that the acknowledgement of private property did not mean the government wanted to give private enterprise a greater role. Last week, he noted, the government published a set of regulations tightening control on the self-employed and hiking possible fines to include property confiscation.[2]

Other changes in the draft are the creation of the position of prime minister as the head of government, making the president the head of the national assembly with a limit of two consecutive five-year terms and creating a new presumption of innocence in the criminal justice system. It will maintain religious freedom.

In addition, the draft expressly calls for “the promotion of respect for international law and multipolarity among States; the repudiation of all forms of terrorism, particularly State terrorism; the rejection of the proliferation and use of nuclear weapons, of mass extermination or others with similar effects; the protection and conservation of the environment and the fight against climate change, as well as defends the democratization of cyberspace and condemns its use for subversive and destabilizing purposes of sovereign nations.”

The proposed new constitution, according to Cubadebate, was made necessary by “the experience of the years of the revolution [since 1959], the new directions drawn from the implementation of the guidelines for Economic and Social Policy approved by the Sixth Party Congress [in 2011], the objectives emanating from the First National Conference [of the Party in 2012], as well as the decisions adopted in the Seventh Party Congress [in 2016].”[3]

The commission is headed by Raúl Castro while one of its members is the new president, Miguel Diaz-Canel.

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[1]  Know the main aspects of the Draft of the new Constitution, Cubadebate (July 14, 2018); Reuters, Communist-Run Cuba to Recognize Private Property in New Constitution, N. Y. Times (July 14, 2018); Assoc. Press, Cuba to Reshape Government With New Constitution, N.Y. Times (July 14, 2018).

[2]  See these posts and comments on dwkcommentaries.com: Cuba announces New Regulations for Private Business (July 10, 2018); More Details on New Cuban Regulations on Private Business (July 11, 2018);  Comment: Yet More Details on New Cuban Regulations on Private Business, (July 13, 2018).

[3] See these posts to dwkcommentaries.com: Raúl Castro Discusses Cuba-U.S. Relations in Report to Seventh Congress of the Communist Party of Cuba (April 18, 2016); Raúl Castro Discusses Scio-Economic Issues in Report to Seventh Congress of the Communist Party of Cuba (April 19, 2016); Conclusion of Seventh Congress of Communist Party of Cuba (April 20, 2016).

A Pessimistic Assessment of Cuba’s Economic Future

Jorge G. Castañeda, the Foreign Minister of Mexico from 2000 to 2003,[1] has rendered a pessimistic assessment of Latin American socialism, especially in Venezuela and Cuba.[2]

He starts with the assertion that the recent “Cubana de Aviación airliner’s crash in Havana . . . [was an] illustration of the utter bankruptcy of the 21st century socialism.” Later in the article he says, like “the Cuban economy, the plane was old, poorly maintained, leased by the national airline because it was the only one it could afford, and the rest of Cubana de Aviación’s domestic fleet had already been grounded.” (A subsequent article reported that Cubana de Aviación has suspended all domestic flights until September.[3])

Cuba, he says, “paid a heavy price for the initial, and perhaps enduring, successes of its revolution: education, health and dignity. But from the very beginning — with the exception of a few years between the collapse of the Soviet Union and the end of its subsidies to Cuba in 1992 and the advent of Venezuelan support in 1999 — it always found someone to pay the bills. The next option was meant to be the United States. That no longer seems possible.”

Now, with a new president, Cuba “again faces enormous economic and social challenges. They stem from three problems with no solutions.”

“First, says Castañeda, is the fall of tourism from the United States and the new tough line on Cuba adopted by the Trump administration. Through March of this year, the number of visitors from the United States is down more than 40 percent compared with 2017. This is partly because of travel warnings over safety issued by Washington, partly because of new travel restrictions put in place by President Trump [[4]] and because after the initial boom of nostalgic tourism, Cuba is now competing for normal travelers with the rest of the Caribbean. Its beauty and charm do not easily outweigh other destinations’ far superior services and infrastructure, and lower prices. Today myriad start-up businesses — always thought to be too small and numerous to survive — that sprang up for United States visitors are failing as a result of falling tourism.” [5]

Second, according to Castańeda, “American sanctions and Cuban fear of economic reforms have rendered the push for greater foreign investment somewhat futile. After an initial rush of highly publicized announcements, some United States companies have proved reluctant to run risks, particularly given Mr. Trump’s hostility toward all things Obama, and his dependence on Florida for re-election.”

As a result, he continues, the Cuban “economy has stopped growing, scarcities have re-emerged and new opportunities for employment and hard-currency earnings are not appearing. If one adds to this the government’s decision to suspend new cuentapropista or private self-employment permits, it is no surprise to discover that economic prospects are dim.”

Third, “Venezuela is no longer able to subsidize Cuba’s transition to a Vietnam-style socialist economy the way it did before.” In short, Venezuela cannot now provide oil to Cuba at below-market prices and on credit and cannot pay for Cuban doctors, teachers and intelligence personnel, which has been a major source of Cuban export earnings.

Nevertheless, Venezuela is “Cuba’s only unconditional ally in the world.” Hence, the first foreign leader to visit Cuba’s new president, Miguel Diaz-Canel, was Venezuela’s president, Nicolás Maduro, and Diaz-Canel returned the favor by making his first foreign visit to Venezuela.[6]

Now the U.S. is pressing for increased hemispheric sanctions against Venezuela with U.S. Secretary of State Mike Pompeo on June 4 being expected to drop the next shoe in an address to the  General Assembly of the Organization of American States.[7] If any of those anticipated U.S. requests are met, this will increase the pressures on Cuba.

Conclusion

 In partial response to these issues, on June 2 Cuba started the process for revising its constitution with the agenda for an extraordinary session of its national legislature (the National Assembly of People’s Power) including approval of “the process to be followed in carrying out Constitutional Reform and the commission of deputies responsible for drafting and presenting the proposed Constitution of the Republic.”  This first step was the approval of a commission to prepare a draft of a revised constitution that will be headed by Raúl Castro, the former president, Diaz-Canel, the current president, and 31 others. Once the constitutional draft is ready, it is slated to be discussed first by the national legislature and then by the broader population, before being submitted to a referendum.[8]

One of the major anticipated challenges for drafting the new constitution will be validating private ownership of property and businesses while simultaneously upholding the “irrevocable nature of socialism.” Perhaps the selection of Castro as the chair of this constitutional commission is not as anti-economic reform as might appear to outsiders. After all Raúl first announced the need for a new constitution in 2011 after embarking on a series of reforms cautiously opening up the economy to foreign investment and the private sector in order to make Cuban socialism sustainable. And at the Communist Party’s Congress in 2016, Castro praised the innovations of the private sector and criticized the “outdated mentalities” and “inertia” of state-owned enterprises.[9]

Such a change will have to delete or modify a current constitutional clause forbidding Cubans from “obtaining income that comes from exploiting the work of others.” “According to Julio Perez, a political analyst and former news editor at state-run Radio Habana, said “Cuba has to make substantial changes to the constitution that endorse private property, self-employment and cooperatives as part of the Cuban economy.”

Simultaneously there are reports that the government is preparing decrees regarding norms for 2,386 Cooperatives of Credit and Services (CCS), 650 Cooperatives of Agricultural Production (CPA) and 1,084 Basic Units of Cooperative Production (UBPC) operating in the agricultural sector and producing 92% of the island’s food.[10]

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[1] Castañeda now is Associated Professor of Public Service, New York University (NYU) Wagner; Global Distinguished Professor of Politics and Latin American and Caribbean Studies, NYU Faculty of Arts and Science. He also is a former member of the  board of Human Rights Watch and a noted author.

[2] Castañeda, The Bankruptcy of 21st Century Socialism, N.Y. Times (June 2, 2018).

[3] Cubano de Aviación will maintain the suspension of domestic flights at least until September, Diario de Cuba (June 2, 2018).

[4] This blog has criticized the 2017 State Department’s urging Americans to reconsider traveling to Cuba because of the still unresolved medical problems experienced by some U.S. (and Canadian) diplomats in Havana and the U.S. cancellation of individual person-to-person travel to Cuba. (E.g., A New Travel Warning for Americans Traveling to Cuba, dwkcommentaries.com (Sept. 19, 2017); New U.S. Regulations Regarding U.S. Travel to Cuba and Transactions with Cuban Entitles, dwkcommentaries.com (Nov. 8, 2017).)

[5]  As this blog has reported, Cuba’s private sector was flourishing in 2015-2016, but has fallen into hard times as a result of new Cuban restrictions on such enterprises and the decline of American visitors, a result that should be contrary to the normal Republican promotion of entrepreneurship and of a potential challenge to Cuba’s socialism. (See., e.g., Why Is the Cuban Government Trying To Slow Down the Private Sector? dwkcommentaries.com (Aug. 3, 2017).)

[6] E.g., Cuba’s New Leader Praises Maduro in ‘Solidarity’ Visit to Venezuela, N.Y. Times (May 30, 2018); Why did Díaz-Canel make his first state visit as President to Venezuela?, Granma (June 1, 2018).

[7] U.S. State Dep’t, Secretary of State Pompeo to Lead U.S. Delegation to the Organization of American States General Assembly (June 1, 2018).

[8] Reuters, Cuba Set to Launch Constitutional Rewrite to Reflect Reforms, N.Y. Times (June 2, 2018); Raúl will lead the Commission in charge of the project of Constitution of the Republic (+ Video), Granma (June 2, 2018); Díaz-Canel: The new Constitution will take into account the principles of our political system, Granma (June 2, 2018); Deputies will continue meeting following extraordinary session, Granma (June 1, 2018); Romero, Constitutional Reform in Cuba: Priority for ANPP commissions, Cubadebate (June 2, 2018); Assoc. Press, Cuba Forms Commission to Update Soviet-Era Constitution, N.Y. Times (June 2, 2018); Reuters, Raul Castro Appointed to Head Rewrite of Cuba Constitution, N.Y. Times (June 2, 2018).

[9] Raúl Castro Discusses Socio-Economic Issues in Report to Seventh Congress of the Communist Party of Cuba, dwkcommentaries.com (April 19, 2016); President Raúl Castro Affirms Importance of Cuba’s Private Sector, dwkcommentaries.com (July 18, 2017).

[10] The government prepares laws for Cuban agricultural cooperatives, producers of 92% of food, Diario de Cuba (June 2, 2018).

Cuba’s Universal Periodic Review Hearing by the U.N. Human Rights Council

On May 16, the U.N. Human Rights Council in Geneva, Switzerland held a 210-minute public hearing on its third Universal Periodic Review (UPR) of Cuba’s human rights record. The hearing consisted of Cuba’s report by its Foreign Minister, Bruno Rodriguez, and other Cuban officials; comments and recommendations by 140 countries (50 seconds each for a total of approximately 117 minutes); and responses by the Cuban officials.

Before the hearing,, the Council received Cuba’s human rights report, a summary of U.N. information about Cuba, reports from stakeholders (human rights organizations and others); and advance questions from some U.N. Members. The  224 submissions from stakeholders, for example, included around 17 that said Cuba’s constitutional and legislative framework “guaranteed the enjoyment of all human rights and fundamental freedoms.” The Cuban Human Rights Observatory, and others, on the other hand, said that Cuba had not undertaken any reforms to promote the exercise of political freedoms.[1]

Cuban Government’s Report[2]

From the times of the US military occupation, which severed our independence, under the governments it imposed, 45 per cent of children did not attend schools; 85 per cent of persons lacked running water; farmers lived in abject poverty without ever owning the land they tilled and immigrants were brutally exploited. In Cuba [during those years], workers and farmers had no rights.  Extrajudicial execution, enforced disappearances and torture were recurrent.  Discrimination based on the color of the skin was brutal; poverty was rampant and women and girls were even more excluded.  The dignity of Cubans was tarnished and Cuba’s national culture was trampled upon.” (Emphasis added.)

“The Cuban Revolution led by Commander in Chief Fidel Castro Ruiz transformed that reality and continues to strive to improve the quality of life, wellbeing and social justice for all of our people, thus implementing all human rights. That willingness to protect human dignity, provide equal opportunities and ‘conquer all the justice,’ has remained unchanged and unswerving until today.”

“Our country has continued to take steps to further improve its economic and social development model with the purpose of building a sovereign, independent, socialist, democratic, prosperous and sustainable nation by strengthening the institutional structure of our political system, which is genuinely participatory and enjoys full popular support.”

In accordance with the Constitution, we have continued to strengthen the legal and institutional framework for the protection and promotion of those rights, and we have introduced modifications and proposals adapted to the needs and realities of the Cuban society and international standards. The attention to citizens has been equally improved by means of the expansion of the mechanisms, ways and recourses in the hands of the population to denounce any  infringement of the legal system or their rights; file claims or petitions to the competent authorities; channel up their opinions and concerns and actively participate in the adoption of government decisions.”

The Foreign Minister then provided more details about Cuba’s “protection of the right to life. . .; law enforcement authorities . . . [being] subject to rigorous control processes and popular scrutiny.; . . .There has been no impunity in the very few cases of abuses involving law enforcement agents and officials;” no traffic in firearms; continued strengthening of “people’s participation in government decision-making and the exercise of the freedoms recognized under the Constitution and the law;” increased “effectiveness of the control exercised by all citizens over the activity of state organs, elected representatives and public officials;” advancing “the promotion of the right to full equality; in the struggle against elements of discrimination based on the color of the skin and against women;” and  increasing “support to prevent and cope with manifestations of discrimination based on sexual orientation and gender identity.” He also mentioned increases in numbers of civil society organizations, and said defenders of human rights enjoy government recognition and support.

However, in Cuba, “the legal system cannot be infringed upon or subverted to satisfy a foreign agenda that calls for a change of regime, the constitutional order and the political system that Cubans have freely chosen.  Those who act this way are not worthy of being described as human rights defenders; they rather qualify as agents to the service of a foreign power, according to many western legislations. (Emphasis added.)

Cuba has continued to strengthen its cooperation with the UN mechanisms that take care of these issues. . . We have strictly complied with all  . . . 44 of the 61 international human rights instruments [into which we have entered.]”

“Cuba has continued to promote initiatives at the [U.N.] Human Rights Council and the Third Committee of the UN General Assembly, for the defense of human rights, including the rights to development and peace.  We have consistently opposed every attempt to politically manipulate said bodies; selectivity as well as double standards.”

Likewise, “huge efforts are being made, amid adverse financial conditions, to preserve the purchasing power of salaries and pensions, improve access to food, adequate housing and public transportation, while preserving and even enhancing the quality of universal and free education and public health. No one will ever be left to his or her own fate in Cuba.”

“We cannot but mention our condition as a small island developing country, faced with an unfavorable international economic situation, characterized by the prevalence of irrational and unsustainable patterns of production and consumption; market regulations and non-transparent and less than democratic international financial institutions. Added to this are the adverse effects of climate change and the impact of natural disasters of high intensity on our economy.  Substantial resources should be invested to cope with them. (Emphasis added.)

“The strengthening of the economic, commercial and financial blockade imposed by the United States against Cuba and its extraterritorial implementation causes deprivations and continue to be the main obstacle to the economic and social development of the country.  This unjust policy, which has been rejected by the international community, violates the purposes and principles of the UN Charter and International Law and represents a flagrant, massive and systematic violation of the human rights of our people, thus qualifying as an act of genocide under the Convention for the Prevention and Punishment of the Crime of Genocide of 1948.” (Emphasis added.)

“We demand the return of the territory usurped by the US Naval Base in Guantánamo, where the United States maintains a detention camp in which serious human rights violations and acts of torture are committed.”(Emphasis added.)

“The political and media campaigns against Cuba, which distort our reality, intend to discredit our country and conceal Cuba’s undeniable human rights achievements.“ Emphasis added.)

We are opened to dialogue and will offer all the necessary information based on the respect and objectivity that should characterize this exercise, in which there should be no double standards or politically motivated manipulations, which we will not accept, because, as was expressed by the President of the Council of State and Ministers, Comrade Miguel Díaz-Canel Bermúdez on April 19, “there is no room for a transition that ignores or destroys the legacy of so many years of struggle.  In Cuba, by the decision of the people, there is only room for the continuity of that legacy with the Revolution and the founding generation, without giving up to pressures, without fear and setbacks, always defending our truths and reasons, without ever renouncing sovereignty and independence, development programs and our own dreams.” (Emphasis added.)

Other Countries Comments and Recommendations[3]

During the hearing a total of 339 recommendations, many of which are repetitious, were made. Many countries, especially those friendly with Cuba like Russia and China and developing countries, made no recommendations at all. Others were more critical: members of the European Union (EU), United States, Japan, Canada, but also Mexico, Peru, Costa Rica, Brazil, Chile and Uruguay. Gabriel Salvia, the General Director of the Center for the Opening and Development of Latin America, said, “It is a great step forward for more Latin American countries to point out the human rights situation in Cuba,”

Near the end of this section of the hearing, the U.S.’ 50-seconds were the sharpest against Cuba.[4] Michele Roulbet, the U.S. delegate, said:

  • “The April presidential transition again robbed the Cuban people of any real choice in shaping their country’s future; the same actors are in charge, many just with different titles, selected in a process that was neither free nor fair. The government stacked the system against independent candidates, none of whom were able to run for seats in the National Assembly, which selected the president.”
  • “The Cuban government continues to criminalize independent civil society and severely restricts the freedoms of expression, association, religion or belief and the right of peaceful assembly.  It routinely applies laws to silence journalists and critics, and punishes those working to expand access to information and freedom of expression for those in Cuba.”
  • In an “attempt to silence opposition voices, the government reportedly continues to use arbitrary and politically motivated detentions, torture, harassment, and travel prohibitions.  Recent examples of this include those who attempted to monitor the undemocratic presidential transition; those who have advocated for political change; and those who were prevented from participating in the 2018 Summit of the Americas in Lima and this UPR process.”

The U.S. then made the following three recommendations to Cuba: (1) “Reform its one-party system to allow for genuinely free and fair multi-party elections that provide citizens with real choices [regarding their government. “(2) “Cease the practice of arbitrarily detaining journalists, opposition members, and human rights defenders, including preemptively, and adopt a legal framework that ensures judicial independence.” (3) “Release arbitrarily detained or imprisoned individuals who were detained and imprisoned for peaceful assembly, investigate and report on government activity, or express political dissent, and allow them to travel freely both domestically and internationally.”

About midway through this section, Cuba responded to some of the criticisms. It denied the existence of political prisoners in Cuba, restrictions on the right to strike, or even the obstacles to travel freely, while insisting on the independence of the justice system. Cuban. Foreign Minister Bruno Rodríguez described the alleged dissidents and human rights activists as “agents of a foreign power,” a regular practice of the regime to attempt to discredit opponents.

Cuba’s Closing Comments[5]

Foreign Minister Rodriguez in his final statement at the hearing said, “It is regrettable that certain countries are continuing to manipulate the human rights question for political ends, to justify the embargo on Cuba and ‘regime change.’ hey have no moral authority and on the contrary are the perpetrators of extensive, well documented and unpunished violations of human rights; they ride roughshod over the aims of the Universal Periodic Examination and persist in selectivity, double standards and the politicization of human rights.” (Emphasis added.)

These practices, which in recent years have started to reemerge, discredited the [former U.N.] Commission on Human Rights and prompted its replacement by this Council. We will be on a retrograde path if we allow such deviant practices to be consolidated in the Council’s work. Respectful dialogue reflecting the principles of objectivity, impartiality and non-selectivity; and the respect for each people’s self-determination, its right to decide its own political, economic, social and cultural system, and its development model, are the cornerstone of international cooperation in this area.” (emphasis added.)

A small number of the recommendations have an interventionist character, contrary to the spirit of cooperation and respect on which this exercise is based. One of the recommendations is strange: it is the United States which is prohibiting its citizens from travelling to Cuba and restricts their freedom to travel; it is Washington which is denying Cubans, Cuban families, consular services and visa issue at its embassy in Havana.” [These recommendations will be rejected.] (Emphasis added.)

We are keeping to our “socialist and democratic revolution, with the humble and for the humble” proclaimed by Commander-In-Chief Fidel Castro and inspired by José Martí’s brotherly formula: “With everyone and for the benefit of everyone”.

U.S.-Cuba Subsequent Conflict Over Cuba’s UPR[6]

Immediately after the Geneva hearing, from the U.S. Mission to the U.N. in New York City,  U.S. Ambassador to the U.N., Nikki Haley, issued a statement. It said that the UPR process expects countries “to allow independent civil society organizations to fully and freely participate in their UPR process. However, the Cuban government blocked independent Cuban civil society members from traveling to Geneva to participate in their review process, just as they did last month when they blocked Cuban civil society members from traveling to Peru to participate in the Summit of the Americas.” (Emphasis added.)

Ambassador Haley added, “A country with a human rights record as abysmal as Cuba’s is no stranger to silencing its critics. But the Cuban government can’t silence the United States. We will continue to stand up for the Cuban people and get loud when the Cuban government deprives its people of their human rights and fundamental freedoms and robs them of free, fair, and competitive elections, denying them the opportunity to shape their country’s future.” (Emphasis added.)

Meanwhile the live webcast of the hearing was watched in Miami by some Cuban-Americans, who were gathered at the headquarters of the Cuban Democratic Directorate, whose website says, “Since its inception in 1990, the Cuban Democratic Directorate  has been characterized by a consistent and cohesive strategy for liberty and democracy in Cuba.” The Miami-based Foundation for Human Rights in Cuba, which was established in 1992 “to promote a nonviolent transition to a free and democratic Cuba with zero tolerance for human rights violations,” complained that Cuba had flooded the Office of the U.N. High Commissioner for Human Rights with letters sent by Communist Party organizations, the Cuban Women’s Federation and other organizations affiliated with the government that contained “absurd praise about the Cuban system.”

Remaining Steps in Cuba’s UPR[7]

Following the UPR hearing,  Cuba this September will submit a formal response to the recommendations, and the Working Group then will prepare a draft of the Outcomes Report. This report will provide a summary of the actual discussion, including the questions, comments and recommendations made by States to Cuba, as well as the responses by the Cuban Government.

Such outcome reports are not all that illuminating. For example, the one for Cuba’s prior review in 2013, which probably will be a lot like the one forthcoming for this latest review,[8] contains a summary of the hearing–presentation by Cuba (para. 5-26), interactive dialogue and responses by Cuba (paras. 27-169)—and a mere sequential listing of the repetitive recommendations made by the states at the hearing (paras. 170.1-170.291) although there also is an integrated more useful 45-page “thematic matrix of the recommendations.”

Another document from 2013 set forth Cuba’s views on these conclusions and recommendations and its voluntary commitments. It  listed many recommendations that “enjoy the support of the Government of Cuba;” others that have been noted by the Government; and the following 20 that  did “not enjoy the support of the Government:”

No. Country Recommendation
170.136 Belgium Adopt legislation to improve immigration & relations with Cuban diaspora
170.139 Belgium, Czech Repub., Slovenia Implement legal safeguards to protect human rights defenders, journalists, against abuse of provisions for criminal prosecution & release all political prisoners
179.162 Belgium Amend the Law of Criminal Procedure in order to avoid the cases of indefinite extension of the preliminary investigation
170.171 Romania, Estonia & Hungary Remove restrictions on freedom of expression notably concerning the connection to the Internet; Reconsider all laws that criminalize or restrict the right to freedom of expression & right of internet freedom; Lift restrictions on rights to freedom of expression that are not in accordance with the Universal Declaration of Human Rights; ensure affordable & unhindered access to the internet for all.
179.172 Spain Allow freedoms of expression, association &assembly; allow human rights associations to obtain legal status through inclusive and official registration
170.173 Switzerland Lift restrictions hindering free expression & ensure that human rights defenders & independent journalists are not victims of intimidations or arbitrary prosecutions & detentions
170.174 U.K. & Northern Ireland End measures to restrict freedom of expression & assembly including short-term detentions and use of criminal charges such as “precriminal social dangerousness”, “contempt” and “resistance”
170.175 Ireland Repeal legislation relating to so-called “pre-criminal social dangerousness”
170.176 U.S.A. Eliminate or cease enforcing laws impeding freedom of expression
170.177 France Guarantee freedom of expression & peaceful assembly plus free activity of human rights defenders, independent journalists & political opponents
170.179 Canada Take further measures to improve freedom of expression by allowing for independent media &  improving access to information through public access to internet by taking advantage of the recent investment in the fiber optic network
170.182 Austria Guarantee free, free & independent environment for journalists and ensure that all cases of attacks against them are investigated by independent & impartial bodies
170.183 Netherlands End repression, investigate acts of repudiation & protect all persons who are targets of intimidation or violence
170.184 Poland Liberate immediately & unconditionally all prisoners held in temporary detention or sentenced in connection with exercising their freedom of opinion & expression as well as freedom of assembly & association
170.187 U.S.A. Release Alan Gross and imprisoned journalists such as Jose Antonio Torres immediately. [Gross was released on 12/17/14]
170.188 Australia Stop limitations on civil society activities, including short-term detention of political activists
170,189 Germany Stop harassment, intimidation & arbitrary detention of human rights activities
179.190 Hungary Stop short-term detentions, harassments & other repressive measures against human rights defenders & journalists. Implement legal safeguards to ensure their protection against abuse of provisions for criminal prosecution
170.192 Australia Reduce government influence & control over internet as part of a broader commitment to freedom of expression
170.193 Germany End online censorship

 

The report finally has to be adopted at a plenary session of the Human Rights Council. During the plenary session, the State under review can reply to questions and issues that were not sufficiently addressed during the Working Group and respond to recommendations that were raised by States during the review. Time is also allotted to member and observer States who may wish to express their opinion on the outcome of the review and for stakeholders to make general comments.

Conclusion

After the final adoption of the Outcomes Report, the Council has no authority or power to compel Cuba to do anything. Instead, Cuba “has the primary responsibility to implement the recommendations contained in the final outcome.”

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[1] See these posts to dwkcommentaries.com: Cuba’s Human Rights Record Being Subjected to Universal Periodic Review by U.N. Human Rights Council (April 30, 2018); Advance Questions for Cuba’s Universal Periodic Review by the U.N. Human Rights Council (May 11, 2018).

[2] Cuba Foreign Ministry, Cuba will continue to build an ever freer, more democratic, just and fraternal society (May 16, 2018).

[3] ‘It is a great step forward for more Latin American countries to point out the human rights situation in Cuba,’ Diario de Cuba (May 16, 2018); Cuba Foreign Ministry, Cuba reiterates its commitment to cooperate with the UN human rights system (May 16, 2018); Havana warns that it will reject the recommendations of the UN with criticism of its ‘constitutional order,’ Diario de Cuba (May 18, 2018).

[4] U.S. Mission to U.N. (Geneva), U.S. Statement at the Universal Periodic Review of Cuba (May 16, 2018).

[5]  Cuba Foreign Ministry, Cuba reiterates its commitment to cooperate with the UN human rights system (May 18, 2018); Havana warns that it will reject the recommendations of the UN with criticism of its ‘constitutional order,’ Diario de Cuba (May 18, 2018).

[6] U.S. Mission to U.N., Press Release: Ambassador Haley on Cuba’s Human Rights Record (May 16, 2018).

[7] U.N. Hum. Rts. Council, Basic facts about the UPR.

[8] U.N. Hum. Rts.  Council, Report of the Working Group on the Universal Periodic Review: Cuba (July 8, 2013); U.N. Hum. Rts. Council, Report of the Working Group on the Universal Periodic Review: Cuba: Addendum: Views on conclusions and recommendations, voluntary commitments and replies presented by the State under review (Sept. 2013); U.N. Human Rts. Council, Matrix of recommendations.

 

The Opening of the Current Session of the Economic Commission for Latin America and the Caribbean  

During the week of May 7 the Economic Commission for Latin America and the Caribbean (ECLAC), one of five U.N. entitles promoting economic and social development in the world, is holding its 37th biennial session, this time in Havana, Cuba.

Three important opening speeches were delivered on May 8 by Cuba’s President Miguel Diaz-Canel, ECLAC’s Executive Secretary Alicia Bárcena and U.N. Secretary-General Antonio Guterres, a native of Portugal. Here are highlights of these speeches.[1]

Cuba President’s Welcoming Speech[2]

 “ECLAC, which for decades has been a benchmark for economic and social knowledge in Latin America and the Caribbean, at a regional and global level, has contributed decisively to placing equity at the center of development, has shown that the region continues to be the most unequal planet, and has studied certain structural causes of the problem, which will surely be addressed in this meeting.”

“It is necessary to transform the culture of inequality, associated with the colonial past of our nations and which particularly affects the indigenous populations, people of African descent, girls and women. It is also, in our opinion, a consequence of imperialism, neoliberalism, macroeconomic policies that for decades favored the transnationals and deepened the differences: of classes, by the color of the skin, territories and urban and rural population.”

“There will also have to be serious challenges that include the slow growth of productivity, the lack of diversification of the productive structure and poor technological modernization.”

“There is no other option but to advance regional integration and development with equity, which will lead us to reverse the pyramid where, in the main countries of the region, the richest 1% of the population appropriates a huge part of the population’s riches.”

“ECLAC correctly points out, ‘inequality has not only economic, but also political, social and cultural implications’”.

“The distribution of income and wealth is the central element in closing this gap and for this, States must have access to food, work, quality education, health, and the right to education. culture and better conditions of existence.”

“While it is true that we must address, as the central theme of this meeting, ‘the inefficiency of inequality,’ the real objective must be the ‘search for equal opportunities and social justice’ and, consequently, the reduction and elimination of the growing poverty, suffered by hundreds of millions of Latin Americans and the Caribbean.”

“The recent history of the region showed that adequate public policies led to successful results of social progress and economic growth that drew tens of millions of people out of hunger, illiteracy and lack of culture, as reported by ECLAC. It would be inadmissible and cruel to  attempt to impose a neoliberal wave like the one that made our peoples go back a decade.”

“It is necessary to fight to make the theme of the Sustainable Development Agenda 2030 a reality, that is, that ‘nobody is left behind’”.

“With the Paris Agreement, a path leading to confronting climate change may have begun, affecting all of us in one way or another; but in the Caribbean States these threats multiply and impose enormous strains on their economies that require special and differentiated treatment, and, at the same time, greater support, solidarity and cooperation.”

“It is essential that, when addressing the issue of inequality, we also do so with access to knowledge.”

“Information and communication technologies favor development. To reduce the gap between ‘those who have’ and ‘those who do not have”, and between rich and poor countries, it will be essential to try to eliminate the difference between ‘those who know”‘ and ‘those who do not know,’ between knowledge and the ignorance.”

“We must bet on a use of these technologies that promotes social solidarity, creates values, contributes to peace and the economic, cultural and political sustainability of our nations.”

“In the same way, the growing monopolization of the media and the attempt to impose, through them, a single thought, consumerism, manipulation of the will of people and values ​​far removed from it, obliges us to reflect and constantly analyze. the realities and aspirations of our countries.”

“For our part, despite the difficulties facing the Cuban economy, particularly due to the intensification of the blockade imposed on Cuba for almost six decades, we will continue to focus on the development goals set in order to preserve, expand and deepen our achievements.” (Emphasis added.)

“We work on the preparation of a National Plan for Economic and Social Development until 2030, whose strategic axes are intertwined with the Sustainable Development Goals, as part of the process of updating the Economic and Social Model, begun in 2011, governed by the premise inviolable not to leave any homeless citizen. We will never apply the known shock therapies that only affect the most needy.”

“In a particular way, we reiterate in this forum the commitment of Cuba with solidarity cooperation towards other countries, based on mutual respect, selfless help and complementarity. Despite shortcomings and difficulties, we will maintain this will, following the principle of sharing what we have, not what we have left.”

“We have received the presidency pro tempore of ECLAC for the period 2018-2020, and of two of its subsidiary bodies: the Committee for South-South Cooperation and the Forum of the Countries of Latin America and the Caribbean on Sustainable Development.”

“We do so with a high commitment and awareness of the challenges we face, focused on continuing to promote cooperation among the countries of the region in the materialization of the new 2030 Agenda. We will put our efforts in supporting ECLAC’s vocation to promote the search for a fair, equitable and inclusive world that recognizes people as the central element of sustainable development. We will strive to promote unity within diversity. . . . [while] ratifying the thesis of José Martí: ‘the good of many is preferable to the opulence of a few.’”

 ECLAC’s Executive Secretary’s Speech[3]

 Cuba “is testing its own paths in the face of the brutal human costs that the imposition of an unjust blockade has imposed for more than 50 years. We evaluate it every year, as an Economic Commission, and we know that this blockade costs the Cuban people more than 130 billion dollars, at current prices, and that it has left an indelible mark on its economic structure. (Emphasis added.)

“As of 2010, ECLAC has positioned equality as a fundamental value of development and as an irreducible ethical principle and in synchrony with the growing relevance of the issue in citizen demands.”

“We have said that equality is at the center of development, because it provides policies with an ultimate foundation centered on a rights approach, with a humanistic vocation that reflects the most precious heritage of modernity. It is also a favorable condition to move towards a development model focused on closing structural gaps and technological convergence that allows us to advance to higher levels of productivity, with economic and environmental sustainability, thinking about future generations.”

“Today we take a step further and we bring you a proposal and a bet, with policy proposals that we have expressed in the document called: The inefficiency of inequality.”

“We affirm that inequality is not only unfair, but inefficient and unsustainable. We have brought empirical evidence to show this statement, why it is inefficient. Not only from the social point of view is unacceptable, but from the economic point of view is not viable for the future.”

“Why do we affirm this? Because it generates and sustains institutions that do not promote productivity or innovation, because it rewards or punishes class, ethnic or gender belonging, and because it generates a culture of privilege that reinforces these inequalities, which incorporates inequality into social relations as if it were something natural, as if it were something acceptable, and it reproduces it in time.”

“Discrimination closes opportunities and also represents the loss of learning and innovation paths favorable to productivity, especially in the discrimination of women. The glass roof that restricts the advancement of women in their careers is also a ceiling to productivity.”

“Today in our continent poverty has the face of a woman. One third of Latin American and Caribbean women do not manage to generate income and are economically dependent, and when they do, their salary is significantly lower than that of men with equal education and skills.”

“The costs of excluding institutions are many, let’s notice the great losses of potential productivity that result from the inequality of access to education and that occur in a generation and sometimes in our region are transmitted to other generations, intergenerationally, and this is especially serious in the context of the technological revolution, where the capacities . . . to absorb technical progress endogenously, are indispensable to compete and generate employment.”

“Our endemic structural heterogeneity is the factory of inequality, it has its roots in the culture of privilege, and it emerges, precisely, in that conjunction of structures with little diversification, low intensity of knowledge, and inefficient institutions. That is why we propose a path, to move from the culture of privileges to the culture of equality, to achieve these tasks that are undoubtedly associated with growth and productive diversification with innovation. But we must . . . expand our fiscal spaces to sustain financing capacity and also to protect those citizens who are going to be marginalized in the context of these profound transformations, especially in the world of work.”

“We bet on a new welfare regime, which is based on public finances that move from the current role of crisis management to one that is development-oriented, progressive and sufficient tax systems, increase in public investment, which is the most punished variable when there is a matter of fiscal consolidation, increase in public investment and social spending, to achieve just closing these structural gaps.”

“We need a macroeconomics for development, which seeks to preserve. Yes, real stability is very important . . . in those decades where it was so urgent to preserve and achieve real stability and financial stability through policies . . . that protect . . . public investment.”

“A determined struggle against corruption in the public and private sphere is required. It is sad . . . that 57% of Latin American citizens do not trust their institutions; we have to change this. That is why a mechanism is urgently needed, renewed institutions that allow greater control on the part of citizens: If paying taxes is a duty, monitoring public spending is a right. . . . [Because] no matter how hard the countries try to make a fiscal discipline, a national fiscal policy, it will be necessary to establish global fiscal rules to eradicate the transnationalization of the evasion, the tax illusion and ending the scheme of globalized fiscal privileges.”

“The increase in investment rates in Latin America remains a pending task. Notice that the levels of gross fixed-capital formation have been below the levels recorded in other regions, while Latin America has been around 20%, East Asia has reached very high levels, over 30%, reaching sometimes 40%. We can no longer ignore it, the growing gap between these two regions is closely linked to investment and innovation.”

“That is why today we want to reinforce our conviction and commitment to propose, to build together with the Member States, precisely, this road that we have to travel together, also making an accurate reading of what is happening in the present. Because it is true that we have better prospects for global growth, that there is better synchrony, more than 140 countries growing at the same time; but there are worrying contingencies and uncertainties.”

“We are also alert to trade confrontations between global economic factors, coupled with the return of more protectionist policies. We see with concern the deployment of a rapid technological revolution, which is difficult for us to keep pace and pace, while drawing potential threats to the future of work.”

“ECLAC in our region has projected for this year a growth of 2.2%. We are growing again after a couple of years of recession, and also the trade picks up slightly with better prices in raw materials; but what is a pending task . . . is regional integration.”

“We must continue to fight for greater regional integration, not only commercial but productive with integrated industries . . . in our region. This is more necessary than ever, because our region . . . is still the most unequal region in the world. All our singular richness in natural resources and human capacities still does not translate into a more dignified life for all its inhabitants.”

“In this past year more than 187 million people continue to live in poverty and, of these, 62 million in extreme poverty. [This is a] warning sign, because we are committed to eliminate poverty in all its forms by 2030. Then we have to accelerate the pace and propose a great environmental impulse that promotes industrial and technological policies that deploy the range of low-carbon productive activities such as renewable energy.”

“We propose greater integration of new, innovative, digital, technological industries that connect us, that link us, that link us through productive chains, human chains and that stimulate growth.”

“The region must overcome a development style that expresses environmental inefficiencies and is highly exposed to the growing impact of climate change. And the truth is that we do not have to look for the evidence very far, the recent catastrophic events show it clearly.”

The most affected part of our region, where all of us must strongly support each other is the Caribbean, and that is precisely why at ECLAC we have made the decision that in all ECLAC sessions there will always be a session of the First Caribbean. This is fundamental, because the historical magnitude of the hurricanes Irma and María underscore the urgency to act and act collectively.” (Emphasis added.)

“The economic costs of climate change in the region, calculated by ECLAC, to 2050 are between 1.5% and 5% of regional GDP. In some Caribbean nations, in the recent disaster, this calculation even reaches figures above 100% of GDP. This is what happens to us in the region and its impacts are not linear, they affect heterogeneously in different regions, periods and differently from social groups, especially the most marginalized.”

“Therefore, it is urgent that the civilizing agenda of the 2030 Agenda has equality in the center, with an identity and domicile in Latin America and the Caribbean, that from our history, from our rich diversity, from our shared hopes and challenges common we give it its own face, our institutions and we impose the urgencies that our reality demands.”

“The 2030 Agenda outlines a way to launch a new generation of policies and institutions, a new style of development and achieve a virtuous circle of growth, equality and sustainability. We owe it to the present and future generations.”

U.N. Secretary-General’s Speech[4]

“Decade after decade, ECLAC has been a progressive paradigm and authoritative voice of social justice in the world economy. The Commission has played a precursor role in integrating the economic, social and environmental dimensions of development. ECLAC has promoted, with perseverance and courage, a vision of development that considers equality as the driving force of growth. You at ECLAC have focused on a deeper meaning of equality, have looked beyond income, as a measure of well-being and as a decisive test of development cooperation, and have always maintained attention to equality of rights in its broadest sense, economic, social and political equality.”

“ECLAC has done everything on the basis of solid, rigorous research and delivery to share experiences that link national priorities with global deliberations.”

“Seventy years after its founding, ECLAC continues to be present where it has always been, in the first line of efforts to promote an equitable globalization, presenting empirically based policies, technical analysis and knowledge aimed at forging an economic, structural and progressive transformation .”

“This decision and this approach are now more necessary than ever before. We know the challenges facing our world. It is true that globalization has brought many benefits: more people have emerged from extreme poverty than ever before, the global middle class is greater than ever, more people have a longer and healthier life, but too many people are left behind. Women are still less likely to participate in the labor market and gender wage inequality remains a global concern.”

“Unemployment among young people reaches alarming levels, with a tragic impact on the well-being of young people, on the development possibilities of countries and even in some parts of the world with a negative impact on security.”

“Fundamental inequalities make it more difficult for people to enjoy better health, education and access to justice. These inequalities make it harder for people to earn a decent salary and live with dignity. For more than a generation, the richest 1% of the world’s income has grown twice as fast as the poorest 50%.”

“Like it or not, the increase in inequality has become the face of globalization and has generated discontent, intolerance and social instability, especially among our youth.”

“People wonder, rightly: What world is this in which a handful of men – because the richest in the world are men, in extreme wealth gender inequality also exists – accumulates the same amount of wealth as half poorest of humanity?”

“At the same time, the way we live and work is being transformed by the effect of technologies, from bioengineering to artificial intelligence and much more. But we must take advantage of the potential of the fourth industrial revolution and at the same time protect ourselves from the risks it poses. This is probably the most difficult challenge that we will have in the next two decades, making the fourth industrial revolution an origin of wellbeing and progress and not a risk that can have very negative consequences for the lives of our societies and our economies.”

“In an increasingly complex and multipolar world, we must redefine the concept of development, especially in transition regions and middle-income countries, such as those in Latin America and the Caribbean.”

“I congratulate ECLAC for partnering with the European Commission and the Development Center of the Organization for Economic Cooperation and Development to allocate a fund of 10 million euros to countries in transition. We need a global economy that benefits everyone and creates opportunities for all. We need an equitable globalization.”

For this,  . . the 2030 Agenda is our fundamental contribution. The eradication of poverty is and remains our top priority. The 2030 Agenda is our road map, and its objectives and goals are the instruments to achieve that goal of eradicating extreme poverty.”

“The objectives of Sustainable Development make clear our ambition and our commitment: to empower women, achieve productive inclusion of young people, reduce climate risk, create decent jobs, demobilize clean investments in favor of inclusive growth and offer dignity and more opportunities for everyone on a healthy planet.”

We “must support the efforts made by the countries to mobilize their internal resources; but those efforts must be accompanied by a stronger commitment on the part of the international community to combat tax evasion, money laundering and illicit financial flows.”

“The audacity of the 2020-2030 Agenda calls for equally bold changes in the work and activities of the United Nations. Our efforts to reposition the United Nations Development System are based on creating a new generation of country teams that support countries, that reinforce national leadership and promote national ownership in favor of sustainable development.”

“We are committed to creating a system that responds to demand, aimed at achieving results at scale and rendering accounts for the provision of support to make the 2020-2030 Agenda a reality. The support of ECLAC is essential to help the countries of the region to implement the Agenda and sustainable development.”

“In September 2019, I will convene a climate summit in New York, where leaders from all fields will meet to fulfill the Paris Commitments, but also to elaborate more ambitious plans for sustainable development, because the Paris Commitments do not they are enough; plans that are based on investment in a resilient and low carbon development.”

Conclusion

As is typical for occasions like this, grandiose language is used to proclaim the objectives of the organization. Whether such language is justified, only time will tell.

It was surprising to this observer to hear Executive Secretary Bárcena say anything about the U.S. embargo (blockade) of Cuba. It was even more surprising to hear her say that “the blockade costs the Cuban people more than 130 billion dollars, at current prices,” which happens to be the same amount claimed by Cuba last November in the U.N. General Assembly debate over the annual resolution against this U.S. embargo.[5]

Although the Executive Secretary said, “We [at ECLAC] evaluate it [the impact of the embargo (blockade)] “every year,” she did not provide details about the calculations or methodology that produced the amount of the alleged damages or who or what ECLAC office did that analysis. Nor did she indicate whether or not Cuban officials were involved in that ECLAC effort.

Nevertheless, Cuban officials undoubtedly were pleased to hear her make this pronouncement even though it does not constitute conclusive proof of such an amount (or any other amount). Instead, it is an another allegation that has not been subjected to U.S. (or any other) analysis, cross-examination or contrary evidence.

As this blog has suggested, both Cuba and the U.S. should agree to submit all of their damage claims against each other, including the embargo claim, for resolution to the Permanent Court of Arbitration at the Hague in the Netherlands under its Arbitration Rules 2012 before a panel of three or five arbitrators.[6]

These points regarding the alleged damages from the embargo (blockade) are notwithstanding this blogger’s consistent opposition to the embargo and urging the U.S. to end the embargo as soon as possible. It does not advance any real U.S. interest and obviously imposes some negative impact on Cuba. Moreover, the alleged damages obviously constitute a contingent liability of the U.S., and any rational actor should seek ways to reduce such a contingent liability, the easiest of which is stopping the practice.[7]

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[1] Other aspects of the ECLAC meeting  are d discussed in ECLAC, News;  Borrero, Cuba shows that economic growth and equality are not incompatible, Granma (May 9, 2018).

[2] Diaz-Canel, Cuba reiterates its commitment to partnership for development, based on mutual respect, selfless help and complementarity, Granma (May 8, 2018).

[3]  Bárcena, The 2030 Agenda outlines a way to launch a new style of development, Granma (May 8, 2018). Ms. Bárcena holds degrees in biology and public administration from the National Autonomous University of Mexico and Harvard University and has held positions at U.N. headquarters before becoming ECLAC’s Executive Secretary. (Ten years of the first woman in charge of ECLAC, Granma (May 8, 2018).)

[4] Guterres, Let’s commit ourselves to continue creating, to keep working and to keep fighting for not leaving anyone behind, Granma (May 8, 2018).

[5] See Another U.S. General Assembly Resolution Condemns U.S. Embargo (Blockade) of Cuba, dwkcommentaries.com (Nov. 1, 2017).

[6] Resolution of U.S. and Cuba’s Damage Claims, dwkcommentaries.com (April 6, 2015); Resolving U.S. and Cuba Damage Claims, dwkcommentaries.com (Dec. 13, 2015).

[7] See posts listed in the “U.S. Embargo of Cuba” section of List of Posts to dwkcommentaries—Topical: CUBA.

 

U.S. Reactions to the New President of Cuba

A prior post reported the April 19 election of Miguel Díaz-Canel as the new President of Cuba. U.S. reactions to that election  have been unanimous: at least initially there probably will be no major changes in Cuba’s international and domestic policies, and many also say there was not a democratic transition of power. Here is a sampling of these U.S. reactions.

U.S. Reactions

Soon after Raúl Castro in his April 19 speech referred to U.S. Vice President Mike Pence’s leaving the Summit of the Americas, Pence tweeted the U.S. will not rest until Cuba “has free & fair elections, political prisoners are released & the people of Cuba are finally free! #CubaLibre.”[1]

On April 18 a spokesperson for the White House National Security Council told an independent Cuban news outlet, “The United States has no expectation that the Cuban people will see greater liberties under Castro’s hand-picked successor. We will continue to show solidarity with the Cuban people in their petition for freedom and prosperity, so we are not expected to change our policy of directing funds to the Cuban people and away from Cuba’s military, security and intelligence services.”[2]

The previous day the spokeswoman for the U.S. State Department, Heather Nauert, said, “As we watch what’s taken place at the Cuba national assembly, we certainly see that that’s not a democratic transition. So when we see that something is not a democratic transition, that’s of great concern to us. We would like citizens to be able to have a say in their political outcomes, and this certainly does not seem like regular folks will have a say. . . . They basically don’t have a real or meaningful choice because it’s not a democratic process. We hope that Cuba’s new president will listen to the Cuban people. We’re not sure that that’s going to happen. We would like a more free and democratic Cuba. We will be watching but aren’t overly optimistic, because this isn’t a democratic process.”[3]

A New York Times editorial stated, “Rául Castro, who handpicked this loyal apparatchik as his successor, remains at the helm of the Communist Party and the armed forces; his son runs the intelligence services; his ex-son-in-law runs the military’s vast business interests. In his first speech, Mr. Díaz-Canel vowed there would be no “capitalist restoration” and concluded with a slogan that has not roused the masses for some time now: “Socialism or death! We will triumph!”[4]

The Times’ editorial also stated, “President “Trump should join with Cuba’s other neighbors to encourage the new Cuban leader to expand the private economy, release political prisoners, increase access to the internet, decentralize power and in other critically needed ways finally break his country out of the Castro cocoon.”

After noting his concurrence in not expecting major changes in Cuba, Christopher Sabatini, a lecturer at Columbia University’s School of International and Public Affairs and executive director of Global Americans, urges changes in U.S. policies regarding the island. He says, “While it is not in America’s interest to promote investment to prop up an anachronistic, repressive regime, it is also not in its interest to stand by while a neighbor’s fragile economy crumbles under the weight of its failed policies. In the worst of cases, an economic implosion would produce social unrest and waves of migrants to American shores.” To that end, he suggests, “Multilateral banks like the International Monetary Fund and the World Bank, at Washington’s urging, could be given special allowances to offer economic assistance to the next Cuban government while providing international cover for American-led efforts. Any aid should come with a strong message from Washington and the banks that the Cuban government must refrain from repression in response to protests.” Sabatini also recommends that the U.S. restore the full staffing of the U.S. Embassy in Havana.[5]

Engage Cuba, a U.S. coalition of businesses and others that supports U.S.-Cuba normalization, issued two statements about this change.[6]

The first one said this “is a historic and potentially transformative change. The new Cuban president will face an internal political struggle between continuity and reform. I hope that they choose reform and openness, including greater support for the private sector and access to the internet.” It added, “The [U.S.] must also seize this historic moment. After 60 years of a failed embargo, it is time to recognize that with this Cuban transition comes opportunity. We must show leadership and constructively engage. If President Trump is willing to meet with the hostile leader of North Korea, surely we can talk with Cuba. If the U.S. abandons Cuba and fails to lead, we can be sure our adversaries in China and Russia will fill the void, and the losers will be the Cuban people.”

The second press release from Engage Cuba stated the following:

  • “U.S. policy . . . [should] encourage the change we’d like to see. For almost 60 years we have pursued an embargo policy that has failed. With new generational leadership in Cuba, we now have an opportunity to reimagine our policy for the 21st century. We know that continuing the embargo will not work, so let us not double down on 60 years of failure. President Trump and Congress should seize this moment, support the Cuban private sector, let American businesses compete, and look to the future with a modern policy of constructive engagement. After all, the American and Cuban people overwhelmingly support engagement and improved relations. Washington politicians should listen to them for a change.”
  • “Diaz-Canel inherits the challenges of Castro’s Cuba, particularly on the economic front. In the interest of institutional continuity, reforms under Diaz-Canel are expected to be gradual. But market distortions caused by the country’s multiple exchange rates, slow GDP growth, and declining exports will test the new president’s ability to balance badly needed reform with preserving Cuba’s brand of socialism.”
  • “The transition comes at a time of historically low diplomatic engagement between the U.S. and Cuba. The health incidents affecting U.S. diplomats remain an unsolved mystery,which the State Department has used as a rationale for slashing U.S. embassy staff in Havana. Diplomatic personnel have been reduced to 40 percent capacity (12 officers), with no consular services for Cubans seeking U.S. travel or immigrant visas.”
  • “In this transitional period, the fragile U.S.-Cuba relationship poses national security risks for the U.S. Both Russia and China have ramped up exports and investment in Cuba and expressed interest in increasing military and intelligence presence in the region. Further U.S. withdrawal from Cuba could jeopardize the dozens of agreements and joint security initiatives between the two nations.”

The leading long-time U.S. opponent of normalization of U.S.-Cuba relations, Senator Marco Rubio (Rep., FL), stated, “The sham ‘elections’ in Cuba were nothing more than a predetermined charade by the Castro regime. With Raul Castro stepping down today, and his appointed crony Miguel Diaz-Canel taking his place, Cuba will continue to be imprisoned under the rule of an oppressive single-party political system. The Cuban dictatorship portrays this election as a step towards change, yet we know that Diaz-Canel and the regime will remain an enemy of democracy, human rights and the impartial rule of law. If Castro really wanted democratic change for Cuba, he would allow the Cuban people to determine their fate through free, fair, and multi-party elections. “[7]

Cuban Reactions Through U.S. Eyes

 According to a U.S. journalist in Havana, no Cubans seemed to have been watching and listening to the televised April 19 speeches by Díaz-Canel and Raúl Castro. “Instead, a collective sense of apathy seemed to permeate Havana, a feeling that appeared to have been fostered, at least to some degree, by the government itself.” This was coupled with “a sense of hopelessness.”[8]

Conclusion

As apparent from many previous posts, this blog consistently has called for U.S.-Cuba normalization, rescinding the U.S. embargo (blockade) of Cuba, restoring the full staffing of our Havana Embassy and of Cuba’s embassy in Washington, D.C., rescinding the recent U.S. warning about U.S. citizens traveling to the island, ceasing U.S. efforts that seek to change Cuba’s regime, continuing the bilateral meetings that address issues of common concern and engaging in efforts to resolve other long-pending issues (U.S. claims for Cuban compensation for expropriation of property owned by American interests, Cuban claims for damages from the embargo and other actions and disputes about Cuba’s lease of Guantanamo Bay to the U.S.).

Such changes in U.S. policies would do a lot to encourage changes in Cuba’s policies and improve the lot of the Cuban people.

It must also be said that U.S. does not have standing to criticize  Cuba’s not having a national popular election to choose its president. How can anyone forget that the U.S. still uses an antiquated indirect way (the Electoral College) to choose its president and vice president while some state voting laws have been designed to discourage voting by African-Americans.

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[1] Assoc. Press, The Latest: Pence tweets response to Cuba’s Raul Castro, Wash. Post (April 19, 2018).

[2] The White House rules out changes in its policy towards Cuba, Diario de Cuba (April 19, 2018).

[3] U.S. State Dep’t, Department Press Briefing-April 17, 2018.

[4] Editorial, A New Cuba After the Castros? Not Quite, N.Y. Times (April 20, 2018).

[5] Sabatini, We Shouldn’t Ignore Cuba, N.Y. Times (April 17, 2018). 

[6] Press Release, Engage Cuba Statement on Selection of New Cuban President (April 19, 2018); Press Release, Engage Cuba Statement on Cuba’s Presidential Transition (April 19, 2018).

[7] Press Release, Rubio Statement on Sham Cuban “Elections,” (April 18, 2018).

[8] Ahmed, Cubans Doubt a Change at the Top Will Bring Change at the Bottom, N.Y. Times (April 21, 2018).

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).

 

Economic Challenges Facing Cuba’s New President 

According to John Caulfield, a former Chief of Mission of the U.S. Special Interests Section in Cuba (before the 2015 reopening of the U.S. Embassy in Havana), Miguel Diaz-Canel, when he becomes Cuba’s President of the Council of State on April 19, “will face serious challenges from the moment he takes over. Cuba’s Soviet-style economic model is not working. Raul has acknowledged as much and in 2011 began to implement economic reforms that allowed many Cubans to become self-employed and buy and sell residences. These changes have allowed some Cubans to achieve relative prosperity, while the majority is stuck in low-paying jobs.”[1]

Caulfield added, “Their success caused a negative reaction from inside the Communist Party that saw the rise of these non-state workers as a threat to the system. Recognizing these concerns, Raúl [Castro] told the National Assembly last summer that he took personal responsibility for ‘errors’ and froze the concession of most new business and self-employment licenses.”

This will present Diaz-Canel and the Cuban Communist Party with a dilemma:

  • Pull “Cuba from its economic morass” by introducing “urgent reforms to eliminate economic distortions such as the use of two national currencies and inefficient state industries,” by attracting “private foreign investment to generate new exports and rebuild Cuba’s decaying infrastructure” and by allowing “Cuba’s incipient private sector to grow.”
  • Or reject this reform agenda and thereby halt the creation of private wealth and a threat to the Communist Party’s domination of the island.

The case against reform may have been strengthened by the apparent success of the Mariel Special Development Zone, a deep-water port and adjacent land for industry and distribution businesses on the north shore of the island west of Havana. Currently 10 projects are operational, related to several sectors, including industry, biotechnology and pharmaceuticals, logistics, construction, food processing, and real estate, and this year another  six (Richmeat, Profood Service, Devox Caribe, Bouygues Construcción Cuba, Engimov Caribe, and Nescor) will begin operations while another 18 have been approved and await implementation.along with construction of an Agricultural Terminal, a second business center and other infrastructure.[2]

The Mariel Special Development Zone received another foreign investor on March 29 when a Vietnamese entity signed an agreement to develop an industrial park of 156 hectares in the Zone. Another eight agreements with such entities were signed that day at the conclusion of the visit to the island by Nguyen Phu Trong, general secretary of the Communist Party of Vietnam. One of these agreements called for the construction of a 50 megawatt bio-electrical plant and an agricultural development combined with the use of renewable energy to generate electricity.[3]

On the other hand, as noted in a prior post. Secretary-General Trong in a speech at the University of Havana emphasized the need for the incorporation of market economic measures in communist systems.

At the end of last month there was a public debate in Havana about Cuba’s emerging private sector. A survey of the 200 attendees revealed that those with the highest monthly incomes of 20,000 CUC (roughly $20,000) were the owners of rental houses, paladares (restaurants), musicians, small farmers, and, on a smaller scale, scientists, miners, ministers, workers in the sugar industry, lawyers, and doctors. Havana, Ciego de Ávila and Matanzas, were considered the provinces with the highest incomes in the country. On the other hand, at least 25% of the Cuban population lives below the poverty line, and the average monthly salary for State workers in 2018 rose to 740 Cuban pesos (approximately 30 dollars). The audience also discussed what pattern of inequality the population was politically willing to accept and whether this  which could fracture Communist ideology on the Island.[4]

Overriding all of these issues and problems is the recognized need for Cuba to eliminate their dual currency system. According to Pavel Vidal, a Cuban economist,“It is impossible for Cuba to achieve a significant and sustainable improvement in the productivity of its economy so long as it operates with two national currencies, with multiple exchange rates between them and an official exchange rate that is excessively overvalued.”[5]

However, Vidal said “state enterprises that show permanent losses should be closed or merged instead of being allowed to operate in a ‘financial bubble’ where they are sustained by implicit subsidies received every time they pay for imported inputs using an overvalued exchange rate. This bubble must be burst, and the state sector must be restructured. Enormous amounts of financial and human resources have been wasted in supporting state enterprises with no economic value.” Vidal added that if the Cuban government chooses true currency reform, “it should be accompanied by not only a greater opening to foreign investment but also by liberalization of the private sector. An expansion of the private sector, he said, “would allow Cuba to absorb the unemployment that would be produced from enterprises that go bankrupt.”

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[1] Caulfield, Cuba’s next president faces choice between economy and communism, the Hill (April 4, 2018).   Many of these issues have been discussed in posts listed in the “Cuban Economy” section of List of Posts to dwkcommentaries—Topical: CUBA.

[2] Martinez, Promoting development and connecting Cuba to the world (Photos), Granma (April 3, 2018).

[3] Peraza, New accords strengthen strategic relations between Cuba and Vietnam, Granma (April 4, 2018).

[4] Ramirez, Rich “comrades,” Diario de Cuba (April 4, 2018).

[5] Whitefield, Cuba desperately needs to reform currency system, but timing couldn’t be worse, Miami Herald (April 4, 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.