The U.S. and Cuba from a Cuban perspective

rural health clinic near Playa Giron--a big achievement of the revolution

A number of Cubans gave us their point of view about relations between the U.S. and Cuba and about Cuba's politics, foreign policy and economy.  Their views are summarized below.

During the heyday of the Soviet Union, Cuba relied heavily on the USSR for financial aid and a market for its products, particularly sugar.  The U.S. embargo cut Cuba off from many world markets.

When the Soviet Union fell, Cuba lost 80% of its overseas market and foreign exchange virtually overnight.  This was the beginning of the “special period”, a time of great suffering for Cubans, including actual starvation.  The government decided in 1991 to implement its first foreign investment law in hopes of attracting foreign capital, which it saw as a complement to a government-run economy. 

swamp children before the revolution

The government also decided to decentralize the central economic planning system, devolving more authority to the provinces and municipalities.  Eventually, about 7 or 8 years ago, they opened a tiny window for the private sector, allowing small family businesses in tourism and transportation.  Today, 500,000 Cubans are employed in the private sector and there is no going back.

Now most industries, not including the military, energy, health and education, are open to foreign investment, though the government always retains a percentage of the ownership (generally a controlling interest).  In tourism, government ownership is at least 51%.  If there is a really strong, comprehensive project, they might consider taking a smaller interest.

Cuba, Mexico and the U.S. negotiated an agreement dividing the Gulf of Mexico into 3 areas of exploration for oil and gas.  Cuba now produces about half the oil it needs.  Cuba is trying to improve its production with newer technology, particularly since most of its oil is heavy, high sulfur crude.  The country has 5 refineries.  A Russian-designed refinery built in the 1980’s never worked until Venezuela stepped in to get it functioning.  Now, Cuba is trying to invest more in renewable energy, particularly wind and solar.

young woman soldier fighting at Bay of Pigs

On an earlier trip, we had been told about a U.S. tractor factory that made small tractors, priced for the Cuban market, that thought it was close to getting government approval.  Ultimately, it was rejected because its tractors were small and underpowered for Cuban soils and needs. Cubans were a bit offended by this, feeling that they were getting an inferior product.

Pres. Obama granted 4 ferry licenses to U.S. companies to conduct operations between Florida and Cuba, but the Cuban government didn’t reciprocate with its own approval.  Cuba simply doesn’t have the facilities to handle so much ferry traffic, including:  no ferry terminal in Havana, security concerns, no cargo allowed as long as the embargo is in effect (and ferries carry cargo as well as people), inadequate customs personnel and facilities.

Compensation for nationalized American properties continues to be a testy subject.  The Helms-Burton law gave Cuban-Americans who were Cuban citizens at the time of the revolution and are now U.S. citizens the right to compensation for property confiscated by the Cuban government.  But these people are now U.S. citizens and don’t have a right to demand compensation from the Cuban government.  Cuba settled its claims with European countries, but the U.S. refused to negotiate the same kind of compensation.  (Interestingly, when we talked to the Swiss ambassador at his home, he said exactly the same thing.)

Cuba knows it needs to negotiate a resolution to all these U.S. claims and tried to do so in the 1960’s.  The U.S. gave Cuba tax credits for its claims against the U.S., but that is not the same as actual compensation.

private food stall on street of Cienfuegos

Right after the revolution, other countries offered oil to Cuba, but the American refineries in Cuba refused to refine it on orders from the U.S. government.  So Cuba nationalized the refineries.  The reality is that both sides have claims and must negotiate to resolve them.

In regards to human rights, Cuba has a single political party and no free press.  It doesn’t have free elections.  Cuba’s political system is different from that of the U.S.  The U.S. has close relations with many countries that have no political parties at all, that are living in the Middle Ages.  In negotiations, the U.S. keeps moving the goalpost (see Backdoor to Cuba for verification of that).  Friends of Cuba say it’s a paradise; enemies say it’s hell.  It’s neither.

The U.S. human rights record is not always so good.  Human rights are more than just a political system.  Problems didn’t begin with Castro.  They began during the Spanish colonization of Cuba and continued with the U.S. colonization and intolerance of Cuba’s independence.  Cuba has paid a high price for its independence.  Politics in Cuba are conditioned by its relationship with the U.S.  Cuba is portrayed as a threat to the U.S. because it encouraged revolutions in Latin America and fought in African wars. 

private transportation--goat cart in Bayamo

Cubans think U.S. policies are a threat to Cuba.  The core of the problem is Cuba’s independence.  Cubans don’t have any animosity towards the American people.  Fidel always talked about the differences between the American government and the American people.  The Cold War dictated U.S. foreign policy for decades.  During the Reagan era, Cuba was very afraid of the U.S.

Fidel Castro was very analytical, well-informed and loquacious.  He received several huge briefing books every morning.  He slept only a few hours and would meet with people most of the night.  He exercised, didn’t eat or drink too much, gave up smoking in the 1970’s to set an example for Cubans.                             Reagan blamed Cuba for the revolutions it supported in Latin America which were not created by the Cubans, but for which the Cubans had great sympathy. By back channels, the U.S. let Cuba know it would go to the source of the problem--Cuba.  This led Cuba to build defenses and become more active diplomatically.  Cuba became a leader among non-aligned nations and at the U.N.  Cuba was always willing to negotiate.  

sugar cane worker near Trinidad

Cuba is trying to move from an extremely centralized economy to a more open one.  The government has set goals, but does not know how to reach them.  Raul Castro sped up the process of opening to foreign investment.

Cuba tried to build utopia and achieved a lot.  But it couldn’t create an economy that could sustain that utopia.  Now, Cuba has to face the reality of what it can afford to do.  They must develop the economy, with the private sector being one important part.  They’re trying to save the best of their achievements, free health care and education.  In the process of creating utopia, they also created a very paternalistic society.  They don’t have the resources to maintain this.  Cuba must have a middle class in the future.

horses and buggies are very common in Cuba

Politically, Raul Castro will give up the presidency of the country in February, 2018, but he will continue as Secretary of the Communist Party until 2020. So, he will remain a powerful figure.

free market vegetable stand--too expensive for most Cubans

The cornerstone of Cuba’s future must be its independence.  It must maintain its free access to health care, education and social security.  Everyone pays for these rights.  Health and education give everyone the opportunity to succeed.  Cuba now needs to give individuals more opportunities to succeed, but the rights of society need to prevail over the rights of the individual.  Entrepreneurs don’t need to be divorced from Cuba’s utopia, but, instead, be a part of it.