Sunday, June 21, 2009

Jews in Cuba

Florencia Arbiser • Cover Story
Published: 19 June 2009

CARTAGENA, Colombia – The recent thaw in relations between Cuba and the United States is being greeted with caution by some Jews in Cuba. In April, the Obama administration announced it was moving to ease restrictions on American travel to Cuba and money transfers to the island. Then, earlier this month, the 34-nation Organization of American States agreed to conditionally accept Cuba if Havana was interested. Cuban officials in the past have said they are not interested in membership and denounced the OAS, which receives about 60 percent of its funding from the United States, as a tool of American domination. “We would very much like to receive more visitors,” William Miller, the vice president of the House of the Hebrew Community in Cuba, one of the nine Jewish congregations in the island, told JTA. “Most Cuban Jews rarely travel abroad; the foreign Jewish visitors nourish our souls.” But Miller, who often receives Jewish missions from overseas, said the thaw in U.S.-Cuba ties may change the nature of visits to Cuba by American Jews.

American Jews are now allowed by U.S. law to visit Cuba only if they are traveling under the auspices of a licensed religious organization and their trip is ostensibly for religious purposes. They tour Jewish Cuba, meet with local Jews, share Shabbat dinner in Cuban homes, and even join in communal ceremonies. But if the religious requirement is eased, Miller said, American Jews coming to Cuba simply might head straight for Cuba’s Caribbean beaches, as they do in places like Mexico and elsewhere, and ignore the local Jewish community. “It is a challenge for us to see how we get involved with a potential increasing number of visitors,” Miller told JTA at a conference of Latin American Jewish leaders organized in Colombia last month by the American Jewish Joint Distribution Committee. “We must work to spread the word to worldwide Jews that we exist and need contact with them,” David Prinstein Señorans, who lives in Cuba, told JTA at the conference.

Cuba has approximately 1,500 Jews and nine synagogues, three of which are in Havana. Before the Communist revolution of 1959, Cuba had about 15,000 Jews, but many left after Fidel Castro came to power. Some of those who stayed participated in the revolution, achieving prominence in Cuba’s fields of science and culture. For three decades following the revolution, religion was suppressed, leading to assimilation. But in 1992 the government eased restrictions on religion, and since then international Jewish aid agencies have built strong links to Cuba’s Jews. Their activities are centered on bolstering Jewish life on the island, including sending religious items to Cuba and helping its Jews with everyday needs.

The JDC has a permanent office in Cuba that helps run cultural, educational, and religious programs, including religious education for children and youth, bar mitzvah prep courses, Shabbat meal assistance, youth camps, and activities for the elderly. It even has a drugstore. Groups like the JDC and B’nai B’rith also coordinate missions to Cuba that each year draw hundreds of American Jews. “Several families from the United States, Canada, and France come to the island and feel committed to the Jewish community,” said Yacob Berezniak, a Cuban Jewish engineer and member of the Orthodox congregation Adath Israel in Havana.

JDC’s executive vice president, Steve Schwager, said he was not concerned that the personal ties would suffer if travel restrictions were eased. “I am confident that Jewish interest and visits with Cuban Jews will not be diminished by political changes,” he said. Cuba’s Jews remain desperately poor by Western standards, but thanks to the aid of Jewish agencies overseas, they are in a better position than most Cubans. B’nai B’rith provides food and medical assistance in Cuba. One of the group’s current projects includes installing a filter for potable water at Adath Israel. Panama’s Jews send kosher food to Adath Israel. London-based ORT runs a language lab and provides computer training at the House of the Hebrew Community.

Though Cuba does not have diplomatic ties with Israel, Cuban Jews say their community has good ties with the government, which is now led by Castro’s brother, Raul. For example, the government grants requests by Cuban Jews to leave the country to attend Jewish-related gatherings. Eduardo Kohn, the Latin American Affairs director of B’nai B’rith, says the community’s good ties with the government are based on the fact that the Jewish community is involved in religious and cultural activities but never takes part in political issues. Anti-Semitism is virtually unheard of in the country. “As a Jew, I’ve studied in school and at Havana University with my kippah and never had to face a hostile situation,” Berezniak said. “I walk calmly in the streets and I am accepted by my neighbors.

“Cuba is a peculiar country. Anti-Semitism does not exist,” he said. “Unlike other places in the world, we don’t need guards in the Jewish buildings.” Fernando Lapiduz, the JDC’s representative in Cuba, said he is reserving judgment on what Obama’s change in approach might mean for Cuba’s Jews. “We will have to see how this develops day by day,” Lapiduz said. “We might not perceive such a big impact.” Berezniak echoed that sentiment. “It is hard for me to see any remarkable change in our routine coming from Obama’s announcement,” he said.

Jewish Group back from ‘eye-opening’ trip to Cuba

Josh Lipowsky
The Jewish Standard, Cover Story
19 June 2009

Howard Brown of Cresskill wanted to go somewhere he hadn’t been before. He decided on Cuba. But the United States has had an embargo on the small Communist country for decades, preventing trade and travel — except for humanitarian reasons. Brown called Howard Charish, executive vice president of UJA Federation Northern New Jersey, to discuss sending a mission to the island nation to learn about and help the small Jewish community there. “I’ve never been to Cuba and I decided to go,” said Brown, who with his wife Nancy was among the trip’s co-chairs. “I felt like a lot of people who went on the trip would like to see how the Jewish community is surviving and what we can do to help out.”

Fourteen people signed up to go — although one couple had to turn back in Miami because of illness — and UJA-NNJ’s Charish accompanied them. From May 20 through 25, the group toured the country’s small Jewish community.
“It was absolutely eye-opening,” Charish said. “Here’s a community that experienced almost 30 years where Judaism was repressed and now the spark has been reignited.” Before Fidel Castro rose to power, some 15,000 Jews lived in Cuba. Many had thought of Cuba as a stop-off along the way to America but ended up staying. Within 20 years of the 1959 revolution, however, the Jewish population dropped to 800. After the fall of the Soviet Union, Cuba’s religious groups once again began to grow. “It was a beautiful thing,” said Jodi Epstein of Alpine. “I didn’t realize they were keeping [Judaism] alive there or that they were allowed to.”

Today, Cuba’s Jewish community is made up of approximately 1,500 people, about 1,000 of whom live in or around Havana. (See related story.) There are no rabbis and no communal kosher supervision. The capital city has three synagogues: Orthodox, Conservative, and Sephardic. Adath Israel, the Orthodox synagogue, maintains a kosher butcher, as well as the country’s only mikvah. The Patronato, the Conservative shul, is home to an extensive Jewish library, a pharmacy, a community center, and a Hebrew school started in 1992 that now has 50 children. The Sephardic Hebrew Center was founded in 1954 and hosts a community Sunday school for adults as well as a Hebrew teachers’ school. “We couldn’t believe the progress the Jewish community is making,” Brown said. He recalled singing and dancing with some 50 children at the Patronato’s Hebrew school on Sunday.

“They were just adorable,” Epstein said. “It made me see how it took very little to make the children happy. Just having us there made them very happy.” At the Patronato, the group learned from Adela Dworin, the synagogue’s president, that a van that brings people to the center had been funded by Bill and Maggie Kaplen, local philanthropists known for their contributions to the Kaplen JCC on the Palisades, among other institutions. “I felt terrific when I heard that,” Epstein said. “Maggie and Bill are very generous people.”

According to Robert Miller, UJA-NNJ’s director of missions, the van will pick some people up at 4 in the morning on Saturdays and bring them to the center where they will have breakfast, services, lunch, and then other activities. “That shows a tremendous amount of dedication,” Miller said. “You have to throw out from your mind what the conventions are because of the different system that exists there.” Epstein had been encouraged to go on the trip by her friends, the Browns, but also by her mother-in-law, Eleanor of Englewood Cliffs, who had been to Cuba almost 10 years ago with a federation mission. “She was telling me how they lived in a time warp there,” Epstein said.

The average Cuban earns $20 to $30 a month and food is rationed. During Shabbat dinner at the Patronato, the group learned that the chicken dinner was the only source of protein all week for many of the attendees. “It’s a black hole to a lot of people,” said Miller, who organized but did not participate in the trip. “They are going back 50 years in some ways.” Before the trip, the Cuban community gave the federation a wishlist of necessities, including sun block, vitamin A, deodorant, mosquito repellant, and sneakers. Miller recalled that one participant asked him what size sneakers to buy. “I said, ‘They’re not expecting you to buy anything, they’re expecting it to be used,’” Miller recalled.

According to government regulations, religious groups must commit to undertake only those activities “that are consistent with U.S. foreign policy.” These include “attendance at religious services as well as activities that contribute to the development of a Cuban counterpart’s religious or institutional development.” “It was unlike anything we’ve ever done or contemplated because of [other] government restrictions,” Miller said. Before the federation could make any travel arrangements — booking flights, hotels, or even settling on dates — Miller had to wait for the U.S. government to send a special license that would permit travel to the embargoed country on humanitarian grounds. The mission could depart only after approval, which meant the dates were left fluid. Yet in order to apply, Miller had to submit an exact list of all the participants, who waited to learn when they might go. The license came through in the end of March, and Miller quickly got the group together.

He had hoped for a bigger number, inasmuch as the license covered a group of up to 25, but he noted that the advertising essentially had to be done through word of mouth because of government restrictions. Miller worked with the American Jewish Joint Distribution Committee, which has an office in Havana and sponsors the country’s only chazzan, to organize the trip. Steven Schwager, CEO of the JDC, said that typically, there is one trip a month from the U.S. Jewish community to Cuba through JDC or the federation system. JDC has played a strictly non-political role in the country since the early 1990s.

“These trips strengthen the connection between the Cuban Jewish community and other Jews around the world,” he said. “In addition, they can provide material support for those Jews living at or below the poverty line.” “We could tell that our visit meant a lot to the people that we visited,” Charish said. “The message was loud and clear that this community is not going to be isolated from the Jewish communities in the United States, even though there are no relationships between Cuba and the U.S.” UJA-NNJ’s travel license expires next May. Under its terms, the organization is permitted one trip every three months. Miller is already thinking about a second trip some time in December, which has excited participants eager to return. “I think the future holds a lot for [Cuba’s Jews], especially if there are more missions like ours who keep going to Cuba,” Epstein said. “I think we give them hope and eventually when Fidel Castro dies and Raul Castro dies, it’ll be a free country.”

For more information on this and upcoming trips to Cuba, call Miller at (201) 820-3954

Thursday, May 28, 2009

Cuba to rejoin OAS?

http://online.wsj.com/video/how-is-cuba-a-democracy/31278B79-62F3-4F15-9671-A29B3320DD2F.html

Friday, April 17, 2009

WSJ Editorial: Now Open Cuba's Prisons

The Obama opening does little for Castro's political prisoners

President Obama's decision this week to ease some parts of the embargo against Cuba is being hailed as a first step toward altering a U.S. policy that has prevailed for a half-century without unseating Fidel Castro. We don't object, though it'd be nice if Mr. Obama also began speaking up against the Castro dictatorship. Mr. Obama's changes are partly a humanitarian response to Cuban hardship. They might even expose the regime's phony claim that the Yankee "bloqueo," or embargo, is the cause of Cuba's misery. But let's not expect too much. Embargo or not, Cuba will remain an island prison until its rulers are forced to ease their grip. We have long supported lifting the embargo as a way of accelerating that process. But the demoralized Cuban people also need international solidarity. Economically engaging the regime while ignoring the hundreds of political prisoners and millions trapped in squalor would betray the cause of Cuban liberty. To that end, the most useful thing Mr. Obama can do at this weekend's Summit of the Americas is to call on other leaders to denounce the regime's human rights violations. The Obama plan to lift all limitations on family visits and cash remittances is a welcome development for Cuban-Americans who left loved ones behind. Family separation is a tragic consequence of the Castro regime, and the restrictions on visits, tightened by the Bush Administration to once every three years, have increased that pain. Lifting the remittance cap, also tightened by President Bush, will allow free Cubans to support poor relatives. The Administration says it will also allow U.S. telecom companies to compete on the island, offering fiber optics and other advanced technology. A State Department official tells us the idea is to achieve "a greater level of connectivity and information flow" with Cubans. In theory this has marvelous possibilities. Imagine a Cuban accessing the Web via telephone and realizing that others think the way he does. It would erode the silent fear that the regime depends on to survive -- which may explain why Havana hasn't embraced Mr. Obama's offer. A spokesman at the Cuba Interests Section in Washington said he thinks access to Cuba for U.S. telecom companies should be contingent on re-establishing diplomatic relations. This gets at the heart of Cuba's objection to the embargo. It wants "normalization" with the U.S., which would allow the dictatorship to tap the cash wells at the World Bank, International Monetary Fund and InterAmerican Development Bank. Having earned global deadbeat status for defaulting on loans from the former Soviet Union, Europe and Latin America, Cuba is also seeking credit in the U.S. On Monday Brazil Foreign Minister Celso Amorim said Cuba's absence "from the inter-American system, including the [Organization of American States], is an anomaly and needs to be corrected." This is odd given that the OAS has something called the "democratic charter," which all members supposedly back. But then Brazil sees investment opportunities in a post-embargo Cuba that has access to the U.S. market. Mr. Obama should respond by asking Brazil to unite behind a call for Cuba to free political prisoners and hold elections. The embargo has not worked to free Cuba, but a hemisphere united against the Castro tyranny has never been tried.

Castro Feeds on Cubans’ U.S. Cash Support as Obama Eases Limits

By Jerry Hart

April 17 (Bloomberg) -- The Cuban state pension that Juan Gonzalez-Corzo receives since he retired from a government job in 2003 makes life easier after more than 50 years of work.
So does the cash that comes regularly by wire from his son in West New York, New Jersey.
It’s part of an estimated $1.1 billion sent to Cubans last year by relatives and friends around the world, an amount equal to about 1.8 percent of the communist country’s 2007 gross domestic product. “Most of the remittances end up used for consumption,” said Gonzalez-Corzo’s son Mario, 39, a Cuban-born assistant economics professor at Lehman College in New York City who has studied remittances and provided the estimates. “It helps.” The money also helps the island’s $58 billion economy, as the Cuban government charges fees that take about 20 percent of exchange-wired dollars, Gonzalez-Corzo said. That troubles U.S. politicians who say the transfers support the totalitarian state created by Fidel Castro in 1959 and now run by his brother Raul. President Barack Obama this week eased restrictions that had limited money transfers by Cuban-Americans, most of whom live in southern Florida. “The Castro government will confiscate a high percentage of those dollars, further propping up a regime that suppresses human rights,” said Representative Kendrick B. Meek, a Democrat who represents parts of Florida’s Miami-Dade and Broward counties. About 735,000 people around the world -- more than half from the U.S. -- sent an average of $150 to friends or relatives in Cuba last year, according to a study by Inter-American Dialogue, a Washington-based research organization. The cash sent in 2007 was equal to 42 percent of the island’s tourism income and 4.7 times more than its sugar exports, Gonzalez-Corzo said.

Economic Prop

“Remittances are a key component to the Cuban economy,” where state wages averaging about $17 a month don’t cover basic living expenses, Inter-American Dialogue said in a statement when it released the study last month. “Cubans typically augment state wages with hard-currency obtained remittances.” That’s why Myriam Faya and Lourdes Rodriguez, sisters who are among the 795,000 Cuban-Americans in Miami-Dade County, the largest concentration outside Cuba, send money to the island. “I have an aunt who is 87 years old and her pension is very low so we send regularly, without any doubt, $50 a month,” said Faya, who works for an insurance broker. “My sister also sends money to her blind, 60-year-old sister-in-law.”

Wire or Mula

About 60 percent of the money sent to Cuba goes via electronic wire transfer, according to the Inter-American Dialogue study. The rest travels in the pockets of visitors. These mulas, Spanish for mules, bypass the government fees. “If you send by wire, it’s very expensive because the government takes 20 percent,” Faya said. “But if a friend goes there, you can give it to them.” On the other end are charges by transfer agents. Calls to wire services in Miami found fees of as much as $124 to deliver 100 pesos to a recipient in Cuba, or 24 percent. The nationwide average is 15 percent per $100, Gonzalez- Corzo said. Including what Cuba charges, the transaction cost for $100 becomes 35 percent. That’s more than the 5.8 percent cost for money wired to Mexico and the 9.5 percent for the Dominican Republic, data from the World Bank show. “Cuba is the most expensive remittance market in the world when it comes to the transaction cost,” Gonzalez-Corzo said.

Bush’s Restrictions

Under rules imposed by the administration of President George W. Bush in June 2004, money sent to Cuba could go only to immediate family members and the amount was capped at $300 each quarter. Travelers could carry only $300 into the country. Obama granted unlimited transfers and travel cash for Cuban-American families to anyone in Cuba, which is expected to reduce costs as competition grows, Gonzalez-Corzo said. The president’s action raised optimism among investors that other parts of the U.S. economic embargo against Cuba could be lifted. The Herzfeld Caribbean Basin Fund, a closed-end mutual fund of companies that could benefit from increased business with Cuba, rose 41 percent, the most ever, the day money transfers were eased. Companies that wire money to Cuba must be licensed by the U.S. Treasury’s Office of Foreign Assets Control, under economic sanctions imposed in 1963 after Fidel Castro established his Communist dictatorship. Castro, 82, turned over power to Raul Castro, 77, last year because of illness. More than 100 companies are authorized by OFAC, with three- quarters of them in Florida. The largest is Western Union Co., the world’s biggest money-transfer business.

10-Year Business

The company has been active in Cuba since 1999 and has 153 agents there, Stewart Stockdale, executive vice president and president for the Americas, said in an interview. He declined to break out the company’s revenue for transactions with Cuba. “We think lifting the restrictions is going to expand the business to Cuba significantly,” he said. Western Union charges $15 to wire amounts up to $100 to Cuba, Stockdale said. The fees are “something we’re reviewing,” he said. Gonzalez-Corzo favors anything that makes it easier for him to send money to his 70-year-old father in Santa Clara, in central Cuba. “I have personally gone through all the tribulations of sending money,” he said. “So I know how it works.”

To contact the reporter on this story: Jerry Hart in Miami at jhart@bloomberg.net.

Monday, April 6, 2009

Youth discuss life in Cuba

Apr. 03, 2009

BY TRENTON DANIEL

Giselle Palacios, the daughter of a prominent dissident family in Cuba, recounted Friday how the island regime's henchmen deflated her school grades, threw stones at her Havana home and jailed her parents. ''It was a hard experience for me,'' said Palacios, 24, the daughter of Héctor Palacios, who was among the 75 human rights activists, librarians and independent journalists who were arrested in a major crackdown in Cuba in 2003. It was first-hand tales like this one -- coupled with Academy Award-nominated actor Andy Garcia's own life story -- that united about 200 Cubans, Cuban Americans and non-Cubans at the GenerAcción conference at the University of Miami's Coral Gables campus.

CLOSER TIES

In its sixth year, the 2,500-member Raíces de Esperanza, or Roots of Hope, aims to bolster ties between the 5 million Cuban youths estimated to be on the island and their U.S. counterparts. The nonprofit's genesis stems from the founders' belief that many Americans misunderstand Cuban Americans' strong feelings on Cuba issues. The group's membership has swelled over the years. Academic conferences have become commonplace. Duke, Princeton, Georgetown and Harvard have hosted forums. On Friday, more than 100 college students from across the nation filled the UM auditorium to learn more about their peers on the opposite side of the Florida Straits. Topics ranged from the apparent apathy among island youth to the role they must play in securing a democratic, post-Castro Cuba. Lauren Vanessa López, a research associate at UM, knocked the idea that Cuban youth were infected with apathy. Citing a 2007 study from the Washington-based International Republican Institute, López noted that 74 percent of the respondents said they would like to vote for a successor to a regime that has been controlled by Fidel Castro and now his brother Raúl for half a century. ''This signifies that Cuba's youth really does want change,'' López said. Visiting the Castro-ruled island has long been a hot-button issue for many exiles, but López urged audience members to make the trip -- within legal means.
''It's really an experience that will be unforgettable for both you and them,'' López said about island youngsters. ``Feel[ing] what they feel is very impactful for them.''

DIFFERING OPINIONS

In her first time to participate, a recent Cornell graduate said she enjoyed encountering a range of thoughts on Cuba, . ''I can appreciate there's more diversity of opinion,'' said Katy Sastre, 25, of New Jersey. ``It's nice to get a different opinion.'' The highlight Friday was almost certainly Garcia, film star of movies such as The Untouchables and the director of The Lost City. In a light yet earnest talk, the actor spoke about his unapologetic support for a post-Castro Cuba (''The necessity for freedom is something that's not negotiable''), his early days in Hollywood (``change your name, fix your teeth, lose your accent,'' he was told) and his directing experience with The Lost City (``that movie is the most important thing I've done in my life.)'' Garcia also spoke of the need for audience members, many of them in their 20s, to stay involved in the Cuban cause. ''Both Castro brothers are not going to be around forever,'' he said. ``The dismantling of that regime will eventually happen.''

Tuesday, March 31, 2009

Judge kills Cuban lawsuit on Havana Club trademark

By NEDRA PICKLER
March 31, 2009

WASHINGTON (AP) — A federal judge dismissed a Cuban lawsuit Monday over the termination of U.S. trademark rights for its Havana Club rum, a victory for Bacardi's effort to take over the brand name as its own in the United States. The dispute dates back decades and is entangled in property seizures during the Cuban revolution, the trade embargo with the island nation and U.S. trademark law.

Cuba's Havana Club is not sold in the United States because of the trade embargo, but the company got a U.S. trademark for the name in 1976 for future opportunities in case the embargo is lifted. French spirits producer Pernod Ricard has partnered with the Cuban government to sell Cuba's Havana Club internationally and has successfully driven up sales around the world outside the United States. Cubaexport, Cuba's state-owned export enterprise, filed the lawsuit three years ago against the U.S. Treasury Department's Office of Foreign Asset Control after the agency refused to allow renewal of its trademark. Tom Gjelten, an NPR reporter and author of a book on the dispute, said Bacardi realizes it's possible the Cuba trade embargo could be lifted and Cuba's Havana Club could become a threat to its rum sales in the United States. Gjelten said Bacardi shrewdly bolstered its case by getting Congress to pass a law in 1998 that prevents the registration or renewal of trademarks connected with companies nationalized by the Cuban government. U.S. District Judge Royce Lamberth cited that law Monday in his decision to throw out Cubaexport's case. "What this decision seems to be is one more nail in the coffin for Pernod Ricard trying to hold onto its use of the Havana Club trademark in the United States," said Gjelten, author of "Bacardi and the Long Fight for Cuba."

Cubaexport attorney Vincent N. Palladino said they will appeal the decision. "The decision, and the process OFAC followed in denying Cubaexport a license, are especially disappointing given that U.S.-Cuba policy is under review," Palladino said in an e-mail. Pernod Ricard referred requests for comment to its attorneys, who did not respond to messages left by The Associated Press. Bacardi fought to have Cuba's trademark canceled and is now selling its own Havana Club rum in limited quantities in Florida, made in Puerto Rico so it doesn't violate the trade embargo. Bacardi has an application pending to register the mark in its own name. As Bacardi explains it, Havana Club rum was developed in 1935 by a family owned Cuban company, Jose Arechabala SA. When Fidel Castro rose to power, the family's plant and trademark were seized and the Cuban government began producing rum under the Havana Club label. Bacardi bought the original recipe and the Havana Club name from the Arechabala family in 1994. "We are the legitimate owners of the brand," said Patricia M. Neal, spokeswoman for Bacardi USA Inc. "We're thrilled that once again the U.S. courts have upheld these laws."

Copyright © 2009 The Associated Press. All rights reserved.

Thursday, March 26, 2009

Cuba loosens spending rule for state companies

Thu Mar 26, 2009 12:46pm EDT
By Marc Frank
HAVANA (Reuters) - Cuban President Raul Castro has loosened controls on how state companies spend foreign currency in the first sign a recent cabinet shake-up heralds changes in the running of the economy, businessmen and economists said. The Cuban and foreign sources said authorities have ended a regulation requiring the Central Bank to approve all state company expenditures of more than $10,000. Analysts said the move would mean less bureaucracy and central control. The regulation now lifted had slowed the day-to-day operations of state businesses and hurt production, but in the end had done little to effectively control state spending on the island, the sources said. They asked not to be named due to government restrictions on talking with foreign journalists. "The Central Bank's foreign exchange commission is no longer in business," one Cuban businessman said. A foreign businessman also said the control measure was lifted. The latest move followed a major government reshuffle earlier this month that replaced eight ministers and several top officials and brought armed forces generals, former officers and middle-aged Communist Party officials into the cabinet. The shake-up by Raul Castro, who is widely viewed as a pragmatist and took over as president last year from his ailing elder brother Fidel Castro, appeared targeted at streamlining and improving Cuba's communist system and economic model.

A number of business leaders said the measure would benefit all sectors of the economy by quickening the flow of parts for factories and supplies, especially those that require the most agility, such as tourism and agriculture. Analysts said the latest regulation change ended a control that dated back to 2003-2004 when the government, then headed by Fidel Castro, reimposed rigid centralization over the economy after previously allowing more autonomy for state companies in the 1990s to cope with a deep economic crisis. "It means less bureaucracy, less central control, and more authority and responsibility in the hands of managers of state enterprises," said Phil Peters of the Lexington Institute in Virginia, who has studied Cuban state business practices. "If deeper reforms follow, then state enterprises will be more efficient and profitable -- and fewer, because losers will go out of business," Peters added. Communist authorities often do not comment on internal reforms and official decrees announcing them are often published well after they are signed.

BATTERED ECONOMY

Peters and other analysts believe that Raul Castro, by bringing trusted military officers and other allies into his cabinet team, is seeking to shake off the bureaucratic inertia and disorganization that has long afflicted the Cuban economy. The Caribbean island's economy has been badly battered by three hurricanes last year, wild spikes in commodity prices and the global financial crisis. The balance of payments that measures the flow of foreign exchange in and out of the country went from a $500 million surplus to a deficit of more than $2 billion last year, according to various estimates. This left the country with little choice but to negotiate new payment terms with foreign creditors and businesses. The latest policy move appeared aimed at removing some rigidities in the state-dominated economy. "In the future a more normal budgetary process will be followed under which the ministries will approve annual company budgets in coordination with the Economy and Planning Ministry," a Cuban economist said.
"It will be up to the cabinet to ensure there is financial backing for the budgets, then company managers will be able to purchase what they need without further regulation, unless very large sums are involved," he said.

Cuba experts see the recent cabinet appointments by Raul Castro as following a military reform model called "perfeccionamiento empresarial" -- a Spanish term which translates as "perfecting the (state) company system". The model was developed for companies supplying the armed forces when Raul Castro was defense minister. It seeks to incorporate modern management and accounting practices and grant local managers more day-to-day decision-making power, and also ties wages to individual and collective performance. Since taking office last year, Raul Castro has taken small but symbolic steps such as lifting restrictions on some consumer goods for ordinary Cubans and allowing them to enter tourist hotels previously reserved for foreign visitors. He has also decentralized decision-making in agriculture, granted producers more autonomy and land, and lifted income caps, declaring workers and farmers should earn all they can through their efforts. (Editing by Kieran Murray)

Monday, March 23, 2009

Latin American countries normalize ties with Cuba

HAVANA, March 22 (Xinhua) -- Latin America has opened a new chapter in its ties with Cuba as Costa Rica reestablished ties and El Salvador intended to resume ties with the country. Havana and San Jose agreed last week to resume diplomatic relations despite both sides have been caught by political disagreements on a number of issues in recent years. "Today the world is completely different with what it was in those days," Costa Rican President Oscar Arias said on Wednesday. San Jose and Havana suspended ties on Sept. 9, 1961. He said the diplomatic ties with Cuba were broken during the Cold War era, but the world has changed since then and the decision of restoring the ties is justifiable at this moment. Cuba's Foreign Ministry said the decision is "in accord with its call for integrity and unity with the brotherly people of Latin America and the Caribbean." In San Salvador, newly elected President Mauricio Funes said his government intended to restore ties with Cuba. The outgoing Salvadorian President Elias Antonio Saca had refused to normalize ties with Cuba despite the fact that its neighbors like Honduras, Guatemala, Nicaragua and Panama had done it. Now, Funes is expected to close an era which began in 1959, when the revolutionary army led by Fidel Castro took power and nearly all Latin American countries agreed to cut diplomatic ties with Cuba in the following year. Half a century later, Latin America lives another reality as many governments choose to step away from Washington and break U.S. isolation of Cuba. On December 2008, the Latin American and Caribbean Summit held in Brazil issued a declaration without precedent demanding an end of the embargo set by the U.S. against Cuba since 1962. It will be one of the main issues at the 5th The Americas Summit, to be held in Trinidad and Tobago from April 17 to 19, without Cuba's participation. The issue will be discussed at the Summit without the intention of cornering U.S. or anybody, Trinidad and Tobago's Prime Minister Patrick Manning said last week. Many Latin American countries also called on the U.S. President Barack Obama to lift sanctions against Cuba. Brazilian President Luiz Inacio Lula da Silva said Latin America expects Obama to lift or at least to loose its embargo against Cuba because there are not moral, political or economic justifications to keep these sanctions. Since end of 2008, Cuban Leader Raul Castro has met with leaders from many countries, signaling that Latin America is opening a new chapter in its ties with Cuba.

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Obama Administration Seen Chipping Away at Cuba Embargo

Wire reports note that the Obama Administration could be slowly opening up more trade to the island nation.

3/23/2009
Farm Futures staff

Could the Obama Administration be further weakening the trade embargo with Cuba? That's the conclusion supported by U.S. Rice Producers Association President and CEO Dwight Roberts, according to a Reuters report. Roberts told the wire service he fully expects Obama to enlarge on the small steps taken by the administration and Congress earlier this month, which softened some travel and trade restrictions. Roberts says he sees a trend in easing trade restrictions, but is also quick to add that he doesn't foresee an immediate end to the 47-year-old trade embargo with the island nation. Amendments passed in 2000 opened food sales to the island, including rice. American rice shipments to Cuba rose to 175,000 tonnes in 2004, but has slipped due to tighter rules introduced in the Bush Administration. Roberts says there will be considerable pressure from a variety of groups to ease trade restrictions with Cuba.

Thursday, March 19, 2009

Cuba says open to human rights discussion with EU

Wed Mar 18, 2009

By Jeff FranksHAVANA, March 18 (Reuters) - Cuba said on Wednesday it was willing to discuss human rights with the European Union as part of their renewed relationship, but indicated that talk about its prisons may not be any of Europe's business.The EU and Cuba, which reestablished cooperation last year after a five-year rift over Cuban political prisoners, said they would meet in Brussels in May for political dialogue in another step toward normalizing relations.The announcement was made at a joint appearance by new Cuban Foreign Minister Bruno Rodriguez and EU Development and Humanitarian Aid Commissioner Louis Michel, who is visiting the Cuban capital.The two met on the sixth anniversary of a government crackdown in which 75 dissidents and independent journalists were arrested and jailed on sentences ranging from six to 28 years.The crackdown, which came to be known as Cuba's "black spring," caused the 27-nation EU to break off some diplomatic relations with the communist-run island.Michel, speaking through an interpreter, told reporters that Cuba was willing to discuss different issues including "the penitentiary system, an aspect that may be of as much interest to Cuba as to us."Rodriguez, who replaced longtime foreign minister Felipe Perez Roque in a recent cabinet shake-up, quickly corrected Michel.NEW COOPERATION"Cuba is willing to continue the political dialogue with the EU on various topics, among them the field of human rights," he said."But we have not dealt with nor expressed any position about the penitentiary system because we consider that that belongs to the internal jurisdiction of the state," Rodriguez said. "It was possibly a misunderstanding I want to clear up."The EU lifted the sanctions last June with the proviso that it would review Cuba's human rights situation annually. In October the EU and Cuba signed an agreement pledging new cooperation.The United States, which has imposed a trade embargo against Cuba for 47 years but whose new President Barack Obama has spoken of improving U.S.-Cuba relations, marked the "black spring" anniversary by urging the Cuban government on Wednesday to free all political prisoners "and to undertake measures to improve human rights conditions in Cuba."The independent Cuban Commission on Human Rights has said Cuba has about 200 political prisoners. Cuba views dissidents as mercenaries working for the United States.Even though President Raul Castro replaced eight cabinet ministers in his government reshuffle, Rodriguez assured "there is absolutely no change" in Cuban's foreign policy.He shed no light on the reasons for the ouster of his predecessor, Perez Roque, who had been considered one of Cuba's top young leaders.He said there had already been enough information released, including a column by Fidel Castro, in which the former leader wrote without explanation that Perez Roque and cabinet chief Carlos Lage, also ousted, had succumbed to the "honey of power."Rodriguez also sidestepped a question about recent comments from a Russian general that Russia might base strategic bombers in Cuba and Venezuela.He said only that Russia and Cuba had "excellent and growing bilateral relations."( Editing by Sandra Maler)

Sunday, March 8, 2009

Obama will use spring summit to bring Cuba in from the cold

US companies are queuing up as the president moves to ease restrictions on travel and trade, raising hopes of warmer relations and an end to the embargo

Rory Carroll, Latin America correspondent
The Guardian, The Observer,
Sunday 8 March 2009

President Barack Obama is poised to offer an olive branch to Cuba in an effort to repair the US's tattered reputation in Latin America. The White House has moved to ease some travel and trade restrictions as a cautious first step towards better ties with Havana, raising hopes of an eventual lifting of the four-decade-old economic embargo. Several Bush-era controls are expected to be relaxed in the run-up to next month's Summit of the Americas in Trinidad and Tobago to gild the president's regional debut and signal a new era of "Yankee" cooperation. The administration has moved to ease draconian travel controls and lift limits on cash remittances that Cuban-Americans can send to the island, a lifeline for hundreds of thousands of families. "The effect on ordinary Cubans will be fairly significant. It will improve things and be very welcome," said a western diplomat in Havana. The changes would reverse hardline Bush policies but not fundamentally alter relations between the superpower and the island, he added. "It just takes us back to the 1990s."
The provisions are contained in a $410bn (£290bn) spending bill due to be voted on this week. The legislation would allow Americans with immediate family in Cuba to visit annually, instead of once every three years, and broaden the definition of immediate family. It would also drop a requirement that Havana pay cash in advance for US food imports. "There is a strong likelihood that Obama will announce policy changes prior to the summit," said Daniel Erikson, director of Caribbean programmes at the Inter-American Dialogue and author of The Cuba Wars. "Loosening travel restrictions would be the easy thing to do and defuse tensions at the summit."
Latin America, once considered Washington's "backyard", has become newly assertive and ended the Castro government's pariah status. The presidents of Brazil, Chile, Dominican Republic, Ecuador and Guatemala have recently visited Havana to deepen economic and political ties. Brazil's president, Luiz Inácio Lula da Silva, is expected to tell Obama on a White House visit this week that the region views the US embargo as anachronistic and vindictive. Easing it would help mend Washington's strained relations with the "pink tide" of leftist governments.
Obama's proposed Cuba measures would only partly thaw a policy frozen since John F Kennedy tried to isolate the communist state across the Florida Straits. "It would signal new pragmatism, but you would still have the embargo, which is the centrepiece of US policy," said Erikson.
Wayne Smith at the Centre for International Policy, Washington DC, said: "I think that the Obama administration will go ahead and lift restrictions on travel of Cuban Americans and remittance to their families. He may also lift restrictions on academic travel. "There are some things that could be done very easily - for example it's about time we took Cuba off the terrorist list. It's the beginning of the end of the policies we have had towards Cuba for 50 years. It's achieved nothing, it's an embarrassment." Wayne Smith, a former head of the US Interest Section in Havana, famously said Cuba had the same effect on American administrations as the full moon had on werewolves. Cuban exiles in Florida, a crucial voting bloc in a swing state, sustained a hardline US policy towards Havana even as the cold war ended and the US traded with other undemocratic nations with much worse human rights records. To Washington's chagrin, the economic stranglehold did not topple Fidel Castro. When Soviet Union subsidies evaporated, the "maximum leader" implemented savage austerity, opened the island to tourism and found a new sponsor in Venezuela's petrol-rich president, Hugo Chávez. When Fidel fell ill in 2006, power transferred seamlessly to his brother Raúl. He cemented his authority last week with a cabinet reshuffle that replaced "Fidelistas" with "Raúlistas" from the military. Recognising Castro continuity, and aghast at European and Asian competitors getting a free hand, US corporate interests are impatient to do business with Cuba. Oil companies want to drill offshore, farmers to export more rice, vegetables and meat, construction firms to build infrastructure projects. Young Cuban exiles in Florida, less radical than their parents, have advocated ending the policy of isolation. As a senator, Obama opposed the embargo, but as a presidential candidate he supported it - and simultaneously promised engagement with Havana. A handful of hardline anti-Castro Republican and Democrat members of Congress have threatened to derail the $410bn spending bill unless the Cuba provisions are removed, but most analysts think the legislation will survive. Compared to intractable challenges in Afghanistan, Pakistan and the Middle East, the opportunity for quick progress on Cuba has been called the "low-hanging fruit" of US foreign policy. That Obama has moved so cautiously has frustrated many reformers. But after decades of freeze, even a slight thaw is welcome, and there is speculation that more will follow.

Old enemies

President Kennedy imposed an economic and trade embargo on Cuba on 7 February 1962 after Fidel Castro's government expropriated US property on the island. Known by Cubans as el bloqueo, the blockade, elements have been toughened and relaxed under succeeding US presidents. Exceptions have been made for food and medicine exports. George Bush added restrictions on travel and remittances.

The sanctions regime
• No Cuban products or raw materials may enter the US
• US companies and foreign subsidiaries banned from trade with Cuba
• Cuba must pay cash up front when importing US food
• Ships which dock in Cuba may not dock in the US for six months
• US citizens banned from spending money or receiving gifts in Cuba without special permission, in effect a travel ban
• Americans with family on the island limited to one visit every three years.