tag:blogger.com,1999:blog-6675171117109415767.post5945151692633806184..comments2023-08-21T06:03:38.089-07:00Comments on Ninety Miles: Cubans Begin to Rebuild Their Residential Real Estate MarketUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6675171117109415767.post-84999790089828044632013-01-01T22:16:36.995-08:002013-01-01T22:16:36.995-08:00This comment has been removed by the author.sapnahttps://www.blogger.com/profile/01638508757726270328noreply@blogger.comtag:blogger.com,1999:blog-6675171117109415767.post-61230265893228491342012-07-28T07:53:47.267-07:002012-07-28T07:53:47.267-07:00This blog gives great insight into Cuba over the l...This blog gives great insight into Cuba over the last 53 years and serves the reader or casual Cuba voyeur a great caution: in Cuba there is no law and order.<br /><br />First and foremost, there is no clear title to virtually any property in Cuba. All commercial and residential property was expropriated by fiat by the revolutionary government without any compensation to the owners, despite conditions to do so in the original decrees. That is, by any reasonable assessment all property in Cuba is, by default, stolen.<br /><br />As such, the "business culture" that exists in Cuba is one of theft, fraud and corruption. To wit: the robust black market in Cuba, which is essential for one’s survival. The new reforms explicitly prohibit foreign ownership of residential property, but that does not deter the "animal spirits" of the nascent entrepreneurs unbound by any code of laws and/or ethics as the blog illustrates. Anyone who has been to Cuba understands these phenomena well.<br /><br />Although Cuba has been in a vacuum for 53 years, the island is not a "new world". Most valuable property, including trademarks and brands, in Cuba is encumbered. Consider that there are 6000 U.S entities with certified claims for losses in Cuba, ~500,000 Cubans in exile and millions of Cubans in Cuba who had their property confiscated or were "relocated" with potential property claims against the revolutionary regime dating back to 1959. <br /><br />These claimants have legitimate legal standing and, particularly the latter two groups, should not be disenfranchised. Their fair treatment is the best assurance to the new, burgeoning Cuban owner or entrepreneur of enduring protection of their property and work product. <br /><br />Compounding matters, if these claims are not addressed, lifting the embargo will expose Americans who buy property or do business in Cuba to liability (in US courts) with Cuban exiles who are now Americans. Notwithstanding the notion that no prudent person would buy property without clear title, these potential legal entanglements will not promote serious and sustainable investment in Cuba. They will hurt Cuba further (if that is possible).<br /><br />It is not secondary to point out that in Cuba there is no contract sanctity, no independent judiciary to resolve disputes or transparent enforcement agencies to enforce the law (such as it is in Cuba). Select US entities currently do business with Cuba under the protection of the US embargo in a cash up front, no-bid environment, which mitigates these risks. <br /><br />Otherwise, Americans (or anyone) will simply not have these protections with any enterprise in Cuba that they enjoy in developed countries. Cuba has close to $100 billion in defaulted debt. There have been billions of dollars in foreign commercial expropriation in the past 5 years alone. There are almost 100 foreign businessmen currently held in Cuban prisons without charges. The “flags” could not be more “red” for any investor.<br /><br />Finally, why are Cubans only making less than 20 convertible pesos (CUCs) a month (US$16)? Mainly because Cuba has 2 currencies, one for foreigners and another as the legal tender for Cuban nationals, the peso. The latter is worth about 0.04 CUCs, but is considered equal to the CUC by the Cuban government for the purpose of paying wages to Cubans. It is illegal for a foreign company to hire a Cuban directly or for the Cuban worker to be paid in anything but pesos. <br /><br />The result is that the average Cuban is a slave. They have (or have had) no enduring property rights, which include their civil rights and their vote. The cruel and unbelievable reality is THEY ARE PROPERTY and today is July 28, 2012. <br /><br />This is all deeply disturbing.<br /><br />Javier Garcia-BengocheaF. Bolivarhttps://www.blogger.com/profile/14469896459171367049noreply@blogger.comtag:blogger.com,1999:blog-6675171117109415767.post-17758063321329299162012-07-28T07:52:09.139-07:002012-07-28T07:52:09.139-07:00This blog gives great insight into Cuba over the l...This blog gives great insight into Cuba over the last 53 years and serves the reader or casual Cuba voyeur a great caution: in Cuba there is no law and order.<br /><br />First and foremost, there is no clear title to virtually any property in Cuba. All commercial and residential property was expropriated by fiat by the revolutionary government without any compensation to the owners, despite conditions to do so in the original decrees. That is, by any reasonable assessment all property in Cuba is, by default, stolen.<br /><br />As such, the "business culture" that exists in Cuba is one of theft, fraud and corruption. To wit: the robust black market in Cuba, which is essential for one’s survival. The new reforms explicitly prohibit foreign ownership of residential property, but that does not deter the "animal spirits" of the nascent entrepreneurs unbound by any code of laws and/or ethics as the blog illustrates. Anyone who has been to Cuba understands these phenomena well.<br /><br />Although Cuba has been in a vacuum for 53 years, the island is not a "new world". Most valuable property, including trademarks and brands, in Cuba is encumbered. Consider that there are 6000 U.S entities with certified claims for losses in Cuba, ~500,000 Cubans in exile and millions of Cubans in Cuba who had their property confiscated or were "relocated" with potential property claims against the revolutionary regime dating back to 1959. <br /><br />These claimants have legitimate legal standing and, particularly the latter two groups, should not be disenfranchised. Their fair treatment is the best assurance to the new, burgeoning Cuban owner or entrepreneur of enduring protection of their property and work product. <br /><br />Compounding matters, if these claims are not addressed, lifting the embargo will expose Americans who buy property or do business in Cuba to liability (in US courts) with Cuban exiles who are now Americans. Notwithstanding the notion that no prudent person would buy property without clear title, these potential legal entanglements will not promote serious and sustainable investment in Cuba. They will hurt Cuba further (if that is possible).<br /><br />It is not secondary to point out that in Cuba there is no contract sanctity, no independent judiciary to resolve disputes or transparent enforcement agencies to enforce the law (such as it is in Cuba). Select US entities currently do business with Cuba under the protection of the US embargo in a cash up front, no-bid environment, which mitigates these risks. <br /><br />Otherwise, Americans (or anyone) will simply not have these protections with any enterprise in Cuba that they enjoy in developed countries. Cuba has close to $100 billion in defaulted debt. There have been billions of dollars in foreign commercial expropriation in the past 5 years alone. There are almost 100 foreign businessmen currently held in Cuban prisons without charges. The “flags” could not be more “red” for any investor.<br /><br />Finally, why are Cubans only making less than 20 convertible pesos (CUCs) a month (US$16)? Mainly because Cuba has 2 currencies, one for foreigners and another as the legal tender for Cuban nationals, the peso. The latter is worth about 0.04 CUCs, but is considered equal to the CUC by the Cuban government for the purpose of paying wages to Cubans. It is illegal for a foreign company to hire a Cuban directly or for the Cuban worker to be paid in anything but pesos. <br /><br />The result is that the average Cuban is a slave. They have (or have had) no enduring property rights, which include their civil rights and their vote. The cruel and unbelievable reality is THEY ARE PROPERTY and today is July 28, 2012. <br /><br />This is all deeply disturbing.<br /><br />Javier Garcia-BengocheaF. Bolivarhttps://www.blogger.com/profile/14469896459171367049noreply@blogger.com