Archive for the ‘Economy’ Category
Will the US Miss Out on Cuba’s Golf Course and Construction Boom?
While the US economy continues to struggle especially with construction and land development, Cuba just implemented two new reforms. One allows farmers to sell the food they grow in a free market, possibly beginning basic capitalism which could spread throughout Cuba.
The other reform allows foreign investors to lease land as long as 99 years. European Investors will be building hotels, resorts and golf courses. Of course construction workers, equipment operators, architects, building supply vendors and the like will prosper. But none of these workers or investors will be from the US or economically hard hit Florida, only 90 miles away, because we’re still in the dark ages of diplomacy.
US – Cuba Talk About BP Oil Spill
The Deepwater Horizon oil spill disaster which threatens Florida beaches is prompting the US and Cuba into “Working Level” talks. According to the Washington Post:
U.S and Cuban officials are holding “working level” talks on how to respond to the massive Deepwater Horizon oil spill that is believed to be dumping some 5,000 barrels of crude a day into the Gulf of Mexico, two State Department officials told The Associated Press on Wednesday.
The talks add to signs of concern that strong currents could carry the slick far from the site of the spill, possibly threatening the Florida Keys and the pristine white beaches along Cuba’s northern coast.
Cuba is a mere 90 miles from the Florida Keys and if the oil is picked up by the Gulf Stream, the oil affecting Florida beaches and Cuba’s shoreline will become a environmental and tourism nightmare for both countries.
Dairy Farmers Support End of Travel & Export Restrictions
Congressman Jerry Moran of Kansas is co-sponsoring legislation he to open Cuba markets for U.S. farmers and ranchers. Dairy farmers are supportive of the legislation according to the CattleNetwork:
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) applauded yesterday’s introduction of a House bill that would allow for open travel for all Americans to Cuba and further facilitate U.S. agricultural exports to that nation.
The Travel Restriction Reform and Export Enhancement Act (H.R. 4645) was offered by House Agriculture Committee Chairman, Collin Peterson, and is currently co-sponsored by 33 other Members of Congress, including Representatives Jerry Moran of Kansas, Rosa L. DeLauro of Connecticut and Jo Ann Emerson of Missouri.
The NMPF also sees the value of ending travel restrictions to Cuba:
The other critical element that H.R. 4645 would tackle is to abolish restrictions on Americans’ rights to travel to Cuba. This would facilitate U.S. exporters’ ability to conduct business with Cuba, spurring greater demand for U.S. agricultural products.
“This bill would help to address administrative and technical barriers to U.S. dairy exports to Cuba that are not in keeping with the original spirit and intent of Congress when it determined that we should be able to export agricultural products to Cuba roughly ten years ago,” said Tom Suber, President of the U.S. Dairy Export Council. “The Cuban market holds significant promise for U.S. dairy exporters but has become increasingly difficult to supply within the past few years.”
South Floridian Travel to Cuba Sees Growth
South Floridians are traveling to Cuba on a more frequent basis. According to the Miami Herald:
Between April and June, about 55,000 people traveled to Cuba, compared to 30,000 in the three previous months, before the restrictions were lifted. The number of travelers is expected to hit 200,000 by year’s end, about double the yearly figures during the Bush restrictions. And travel executives expect the numbers to spike even higher now that new rules announced by the Obama administration — which lift all restrictions on family visits to Cuba — have taken effect.
Poor Cuban Economy Forces Changes
Raul Castro today announced today that the Cuban Government would be looking at “adjustment to expenditures” as the worldwide economy continues to sputter. According to Reuters:
Raul Castro said Cuban ministers will meet on Tuesday to consider revising spending plans for the rest of the year because “of the effects of the world economic crisis on our economy.” In particular, he said there has been a “significant reduction in export income and additional restrictions to access external financing sources.”
A recent government report said imports are expected to plummet 22.2 percent, or some $3.4 billion in 2009, while exports will decline by $500 million. In response, the cash-short government has taken belt-tightening measures such as scheduled blackouts to save energy, selected factory shutdowns, public transport reductions, spending cuts and the freezing of foreign business bank accounts.
Considering Cuba has some of the most fertile agricultural land in the world and it still imports 60% of its food, Raul has made at least one-step in the right direction:
But his only major reform so far has been in agriculture, where he launched a program to let private farmers cultivate unused state land.
He said that of 110,000 applications for land, 82,000 have been granted. More needs to be done to advance the land plan so Cuba can increase food production and cut import costs, he said.
Now is the time for the Cuban government to grant human rights to its people, open the political process and bring their country into the modern era.