----- Original Message ----- 
From: Walter Lippmann <[EMAIL PROTECTED]>
To: CubaNews <[EMAIL PROTECTED]>
Sent: Wednesday, March 14, 2001 2:51 AM
Subject: [CubaNews] Cuba's dilemma


Cuba's dilemma
The Worldwatch Report

By Christopher Flavin (1997)


As Cuba slowly reintegrates into the world economy, will it be
able to balance local self-reliance and global exchange, or will
it be swept off its feet by a great wave of money and
consumerism?

The Aerocaribe flight from Cancun to Havana was a far cry from
the earlier American Airlines flight from Miami to Cancun. The
aged plane rattled painfully as it hit the Cuban runway after
just 40 minutes in the air, and the several dozen people who
emerged onto the dark runway were clearly not tourists. Their
luggage consisted of overstuffed plastic bags filled with such
necessities as toothpaste, toilet paper and foods not easily
found in Havana these days.

The drive into town underscored the message "you're not in
Florida anymore," as our 1957 Chevy dipped jarringly into the
deep potholes that pock the main road into town. The trip was
otherwise unimpeded since, even at evening, there were virtually
no other cars on the road. As our eyes adjusted to the darkness,
though, we could make out at the side of the road the forms of
hundreds of people walking or cycling toward Havana.

Sometimes the best way to gain insight about something is to go
where it is not. The flow of global capital -- the unprecedented
surge of private money that is having such profound influences on
the world -- largely bypasses Cuba. The island nation is trying
to emerge from more than three decades of central planning while
shunted to the margins of the world economy by the 35-year trade
embargo imposed by the superpower just 90 miles north.

The question for Cuba now is whether it can develop a more
sustainable society while at the same time gradually opening its
economy and political system.

I was invited to Havana in mid-February by the European
organizers of an international environmental symposium who
were keen to provide Cuban specialists with the opportunity to
exchange ideas with foreign experts in the field. (I was one of
just three U.S. citizens who came to the conference, armed with a
Treasury Department license issued under the "Trading With the
Enemies Act.")

In today's world, embargoes constrain not only economic trade,
but intellectual and cultural commerce, as well. With their
access to international mail, phone lines and even the Internet
constricted, the Cuban academics we met were hungry for any
environmental information we could supply. My meager supply of
Spanish-language editions of "World Watch" quickly dwindled, and
dozens of Cubans scribbled their names on scraps of paper,
begging me to send them a book or magazine once I got back to
Washington.

When the Russians abruptly pulled the plug on three decades of
heavy economic subsidies in 1991, the supply of $2-per-barrel oil
and tractors, fertilizer and even consumer items abruptly
stopped. (At the time, Cuba was still a one-commodity country, as
dependent on sugar cane exports as it had been before the 1957
revolution.) And the United States refused to lift its embargo,
preventing U.S. companies from investing in Cuba or even allowing
the country to obtain loans from the World Bank and other
multilateral lenders.

The resulting economic crisis, still known as the "Special
Period," left many Cubans close to starvation. There was no
fertilizer for the fields and no fuel to run the tractors. The
tropical climate makes growing wheat -- which had become a staple
in the Cuban diet, thanks to cheap Russian exports -- nearly
impossible. In response, many people had to go back to a
traditional diet of rice and beans.

Cuban farmers, meanwhile, embarked on a crash course in
sustainable agriculture, turning to oxen to plow their fields and
substituting biological controls for the pesticide applications
that had been planned by agronomists in Moscow. At the
same time, vacant lots in Havana quickly filled with urban
vegetable gardens.

During those first few years, the official economy declined by a
staggering 40 percent. Oil imports fell by half, and electricity
blackouts often lasted more than 12 hours a day. With no fuel to
run their aging American cars and buses, Cubans imported
thousands of bicycles, some purchased from the Chinese, others
donated by sympathizers in North America and Europe. Even
production of the country's valuable sugar cane and prized cigars
plummeted.

But Cuba has proved more resilient than most foreign observers
expected. Five years after the Soviet Union disappeared, Fidel
Castro is still in power. By early 1997, tractors were back in
the fields, blackouts less common and the economy again
expanding. One reason is that the Cuban government has
gradually relinquished some of its economic controls. Since
1993, self-employment has been permitted in some 100 mainly
service-oriented occupations, and the center of Havana has filled
with markets selling fresh food, handicrafts and light,
manufactured goods.

Meanwhile, the government has, with many restrictions, renewed
Cuba's connection to the world's capital markets. Desperate for
hard currency, it has encouraged European, Canadian, and Latin
American investors to move into a few key sectors -- tourist
hotels, oil, minerals and sugar -- which are now booming. More
than 60 foreign companies have opened offices in Cuba and
already have invested over $5 billion in the country.

Tourism has quickly displaced sugar cane as the country's leading
hard-currency earner. In 1995 alone, Cuba attracted 800,000
tourists, mostly from Europe and Latin America. With some of the
world's most spectacular remaining coral reefs, Cuba has great
potential for nature tours and is considering encouraging
eco-tourism along its northern archipelago. Another recent
priority is the development of renewable energy sources, such as
wind power and biomass energy, to displace imported oil.

In 1993, Castro took the extraordinary step of authorizing the
U.S. dollar as legal currency, and since then a thriving dollar
economy has emerged. I never saw a peso the entire time I was in
Cuba; nor did I see more than two or three Americans. (There is
something strange about being in a country where the only things
American are the currency and the 40-year-old cars.)

Items like beef, gasoline and even taxis are now available, but
one must have dollars to purchase or hire them. This has of
course increased economic disparities, since most Cubans earn
only pesos and, at the black market exchange rate, have an
average income of less than $1,000 per year. The standard of
living of the typical doctor or professor is still far below what
it was in 1990. Even those who own cars can afford to operate
them only a couple of times a week. (Yet Cuba's average life
expectancy and literacy rate are still far closer to those of the
United States than to Mexico.)

Political reforms are coming even more slowly. Unlike Eastern
Europe, Cuba's revolution was not imposed from without, but rose
from within, in response to abuses by the earlier regime. While
Castro has lost some of his popularity in recent years, he
retains considerable support and a firm grip on power. There have
been no national elections, the domestic press is carefully
controlled, dissent is illegal, and many dissidents languish in
jail. Still, local elections are now permitted, the international
press has relatively free access to Cuba, and people have the
right to worship in the church of their choice.

The United States is of course trying to force economic and
political reform by pressuring its allies to pull out of Cuba via
the 1996 Helms-Burton law, which threatens penalties against
European and other companies that invest in Cuba. But even a few
hours in Havana show how pointless and potentially
counterproductive this is. The flow of business is seeping
quickly into Cuba's pores, widening economic disparities, but
also opening new opportunities and accelerating the desire for
political change.

Compared to the former Soviet Union, Cuba is taking to the
opportunities presented by the market with a practiced
exuberance, as well as a sense of solidarity that has been
strengthened by the U.S. trade embargo. For nearly four decades,
Cubans have had to be entrepreneurial and inventive -- how else
could they have kept those old American cars going so long?

Yet to my surprise, several Cubans told me that the U.S. embargo
has in some ways been a good thing. They do not want to go back
to the colonial style of capitalism that dominated Cuba before
Castro and his band entered Havana in 1957. The embargo, they
say, has allowed a slightly more controlled re-entry to the
global marketplace, giving Cuba a chance to democratize its
political system and at the same time preserve some of the
hard-won social gains of recent decades, including
government-provided health care and near-universal public
education.

The "Special Period" has also given Cuba a chance to consider a
new ethic of sustainability to replace the dead theory of
Marxism. It gives one pause to consider that by subjecting Cuba
to privations, the United States may have given that struggling
nation just the incentives it needed to begin turning to more
sustainable activities than those to which the United States
itself remains addicted.

To an environmentalist, it's hard not to react with ambivalence
to the realization that there is a country in the Western
Hemisphere (or, indeed, anywhere on the planet) where, as a
result of deprivation, people have shifted from cars to more
bicycling and walking, from pesticide-intensive agriculture to
more emphasis on organic farming and home gardening, and from a
heavily subsidized central economy to a new encouragement of
independent enterprise.

The question now is whether Cuba can keep those initiatives alive
while still embracing the new wealth and freer flow of ideas that
come with a more open society. Perhaps Cuba can set a new kind of
example by choosing the best of both worlds, of local
self-reliance and global exchange.

But there remains a risk that, like many countries today, Cuba
could end up with the worst of both, swept off its feet by the
great wave of money and consumerism that is now homogenizing much
of Asia and Latin America. This last battleground of the Cold War
deserves careful reconsideration and friendly support in the
difficult years ahead.

Copyright (c) 1997, The Worldwatch Institute.
Distributed by the Los Angeles Times Syndicate.
http://www.enn.com/enn-news-archive/1997/05/051497/feature.asp




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