Reintegrating Cuba into the Global Economy

This chapter seeks to answer the question: What internal Cuban legal adjustments are necessary for Cuba to enter into a fully normalized relationship with the United States. and the rest of the world? The chapter first focuses on the adjustments Cuba might have to undertake if it is to embed itself within the structures of global trade and finance. Next, the chapter examines the extent to which Cuba is disposed to consider these possible reforms. Third, it examines what may be possible in the aftermath of the U.S. presidential election of 2016 (and its aftermath) and other global changes, including the emergence of a Chinese alternative to national embedding in global trade. These have considerably changed the terrain within with the consequences of U.S.-Cuba normalization can be considered. The examination considers the value of the European Union’s strategic initiative, the Political Dialogue and Cooperation Agreement (PDCA), as a viable basis for Cuban reintegration in the global economy.

U.S. Property Claims in Cuba

In the years since publication of the Report on the Resolution of Outstanding Property Claims between Cuba and the United States in 2007, the relationship between these two countries has undergone significant change. This chapter considers these political changes and how they impact the resolution of one of the most contentious issues in the thawing relationship between two longtime rivals, including the transition to Raul Castro and how the next political transition might impact property rights settlements. The chapter also suggests the expansion of the original model to include Cuban citizens at the time of expropriation now living in the United States, as a way to build trust in dealing with contentious property rights issues.

The Ghost of Helms-Burton

In spite of the significant policy initiatives undertaken by the Barack Obama administration to “normalize” U.S. relations with Cuba, serious barriers and impediments lie ahead. This chapter investigates the daunting policy challenges that face the United States and Cuba in their effort to advance their bilateral diplomatic and economic affairs, owing largely to the draconian conditionality codified in the Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 (Helms–Burton Act). Given the highly partisan and divided nature of executive and legislative branches of the U.S. government, it remains uncertain as to whether Congress will allow progress in the normalization process to move beyond the limits of executive action. The chapter identifies and details the concrete steps that must be undertaken by the Congress to dismantle Helms-Burton, and under what conditions that might occur.

Between the “Party Line” and the “Bottom Line”1

Most past studies of Cuban entrepreneurship (referred to by the Cuban government as trabajo por cuenta propia or “self-employment”) to date have focused either on a single industry or set of industries such as private paladar restaurants, bed and breakfasts, or shoe manufacturing. This chapter describes and analyzes one of the relatively underexplored potentialities of Cuba’s emergent private enterprise sector: “entrepreneurial solidarity” (emprendimiento solidario), also known as “social entrepreneurship” or “socially responsible enterprise.”. Specifically, this chapter investigates this topic thorough a case study approach that focuses on a single Old Havana neighborhood (Santo Ángel), tracing the efforts of Papito Valladares’s grassroots community project there (Artecorte) to marry: (1) economic development (via private entrepreneurship as a licensed cuentapropista) with (2) social responsibility (via a variety of community development initiatives) and (3) cultural preservation (through an important alliance with Office of the City Historian). Artecorte embraces an ethic of contagion over competition, combining bottom-line-oriented private enterprise with neighborhood uplift, community outreach, and collaborative synergy—alternately independent from or in sync (and occasional partnership) with the government’s “party line.”

Introduction

In this introductory chapter of The Cuba-U.S. Bilateral Relationship: New Pathways and Policy Choices, the editors create a framework for readers to digest the material in this book in a meaningful way. The chapter introduces the multilevel game of diplomacy that binds the U.S. and Cuba can be characterized by a variety of signals that each player has issued to its counterpart. The nature of those signals have varied over time, depending on the nature of political leadership, the issue at hand, and the nature of the diplomatic level approached. We explore these issues as important to understanding linkages among the chapters within their respective fields, and across those fields is an important aspect of appreciating the entire picture of America’s current relationship with Cuba Finally, the authors present a plan for the volume, which focuses on three key issue dimensions: political, legal, and economic. Further, the authors identify challenges and opportunities implicit in the diplomatic relationship and its consequences for political, economic, and legal dimensions.

Big Chills

As Cuba’s economic model evolves and market mechanisms take root, concerns over environmental degradation increase. These issues are relevant to Cuba’s long term development as well as its place in a broader international effort to implement rules and norms to improve environmental protections. This chapter explores the myriad contributions of Cuban and multinational legal structures to address these concerns. The chapter explores the current state of Cuban legislation and legal practices to address environmental protection. Through an assessment of the current legal structure and proposed reforms, the analysis addresses the potential for economic growth and environmental protection in the near future.

A Political Economy Approach to U.S. Normalization Policy Toward Cuba

In this chapter, five contributions are made to advance understanding of U.S.-Cuba relations. First, empirical evidence is provided on outcomes with respect to the flows of persons, goods and services, and capital between Cuba and the United States. While the evidence stresses the last decade, it goes back to the 1990s when feasible and relevant. Second, policies and their implementation by both the U.S. and Cuban governments are viewed as the actions of political agents that provide opportunities and challenges for these outcomes to fluctuate over time in pursuit of a variety of goals. Third, these outcomes are treated as responses of U.S. and Cuban entities and residents as economic agents to the policies and their implementations by the two governments. Fourth, throughout the chapter, interactions between different policies within each country as well as between the two countries are analyzed in terms of their impact on actual outcomes. Finally, in the last substantive section the role of political factors in the two recent U.S. administrations is highlighted to bring out interactions between political and economic dimensions and to illustrate the policies explicitly or implicitly adopted by the Donald Trump administration.

Success Characteristics of Market Entry in Cuban Tourism

The importance of tourism in Cuba is clear given the expected 3.8 million visitors in 2018. Under the Barack Obama administration these rules were relaxed, permitting “self-certifying” travel to Cuba, meaning it was not necessary to be part of a regimented, organized group. As a result, Cuba saw the potential for a significant increase in U.S. tourists to the island. This chapter conducts a qualitative case study to examine market entry strategies, challenges, opportunities, and organizational actions of eighteen tourism businesses operating in Cuba. By illustrating how successful tourism industry companies entered the Cuban market and achieved sustainability, potential investors can learn from these experiences to build and/or fine-tune their own market-entry strategy. This study may narrow the gap between Cuba as a potential location for foreign direct investment and the specific actions taken by companies to establish business operations in Cuba.

Opening Cuba—Negotiating History

This chapter introduces the reader to the opening with Cuba under the Barack Obama administration. The chapter describes how this opening came about, and the political and diplomatic negotiations that led up to it. Further, the narrative places the historic opening between Presidents Obama and Fidel Castro in a broader historical bilateral context that was not devoid of communications between the two states. The chapter reinforces the notion that the rapprochement between the United States and Cuba was a deliberative process that included a variety of actors. The result of these efforts was a complex diplomatic process that launched hopes of long term diplomatic normalization between the two states.

The China Factor and U.S.-Cuban Relations

Any discussion of the thaw in U.S.-Cuban relations must address China’s key role in Cuba’s political and economic structure. Today, China is not only a longtime supporter of the regime but also Cuba’s largest trading partner. Perhaps more importantly, the thaw in Sino-U.S. relations and subsequent shift in Chinese economic policy offers a potential model to the Cuban communist regime, a “moral inspiration” that encourages openness to the international economy, while maintaining internal control. This chapter examines the ways China’s direct economic and political interactions with the Cuban government facilitate further economic opening, while maintaining state control over key political and economic sectors. The chapter also examines the limits of the Chinese model and its implications for Cuba’s future.