The four visits today helped put a lot of things together about what we’ve seen in Cuba.
Our first stop was at the US Embassy, a concrete 1950s blockhouse reopened after Obama’s visit, with the flag raised by some of the same marines who had taken the flag down in the early 1960s when we closed the embassy. A briefing helped put the history of US-Cuban relations since the revolution in place.
I sort of remember the shock of having a communist government in the Western hemisphere at the height of the Cold War. As a later speaker pointed out, at the time, the other islands were still colonial possessions or friendly dictatorships. There apparently were efforts to recognize the new government, but confiscation of property and the CIA operatives led Eisenhower to authorize the Bay of Pigs operation. That, in turn, provoked Fidel (can you imagine another well-known global leader from another small country who occupied public and global imagination for 50 years?) to turn to the Soviet Union, which in turn led to the Cuban Missile Crisis, which in turn led to 50 years of tension that as Obama pointed out, challenged the moral leadership of the United States in the Western Hemisphere. We are likely on the cusp of changes that are being signalled by both the United States (more trade,led in part by Midwestern Republicans who want more agricultural markets; more tourists) and Cuba(the internet; joint ventures with some American companies; a big port (we’re going there tomorrow). While the change in the presidency is coming next February, Raul will still hold the reins as head of the party and the army.
The two site visits were equally interesting. At the biotech company, I learned that biopharmaceuticals constitute the biggest export of Cuba, and we’ve heard over and over that the expertise in free health care is one of the expertise Cubans have been sharing with other countries. The Ph.D./businessman who spoke to us about the resources of his pharmaceutical research company, now with 20,000 employees was one of the most passionate speakers I’ve ever experienced. His point was that we need collaboration to develop better goods for a better life, and that should be the focus, rather than developing products to make money. Cover the cost, he insisted, and showed us some of the solutions his scientists have been working on–for cancer and diabitis and arthritis.
At lunch, we had an interesting talk with our guide about the social nature of the state. And some of the consequences. For example, for the free college education, each graduate has to perform “social service.” Depending on how good of a student you are, you can be working in your chosen industry (as in tourism, which our guide chose), or, if you are at the bottom of the class, you’re likely to be a teacher. While that seems like punishment commensurate to fit the crime, it’s a measure of the high turnover of teachers, who, like many civil servants, are badly paid.
The sweet smell cited at the title occurred at the consumer goods manufacturer we visited–maker of perfumes (tobac,naturally, is one brand, that comes in a bottle with a cap that mimics a cigar pack), cosmetics, and personal hygiene goods. The company is a joint venture with a Spanish company, Comacho, and fits the pattern we’ve seen in other joint ventures. This one started in 1989, so it has a long history. The Spanish company lent expertise, capital, distribution and marketing expertise. There is one Spanish executive and 14 Cuban executives. They get the same pay, but the Spaniard gets paid in hard currency (the so-called CUC), while his staff gets pesos. I think the exchange is at least four times more for the hard currency). The Cuban state hires all the workers. The company pays the state, which pays the workers (the Embassy official says the same thing is true for his “nanny.” He added that he paid more than she received from the state, so he supplemented her income directly). The company pays bonuses in hard currency, and also provides rides and meals. The word we’ve heard is “incentivize” (as in give the factory cigar rollers extra cigars to sell on the open market).
Camacho said it controlled 99% of the hospitality industry (we have its products in our room), and does mostly point of sale promotions, not using tv, radio, or print advertising, with some use of testimonials from famous Cubans. Interestingly, of the 5% it sells overseas, Comacho’s markets are Panama, Ecuador, and Angola.
If you followed my travels last year, you’ll maybe remember in Windhoek, the North Korean built museum that had the history of the transition from Southwest Africa as part of the Union of South Africa into Namibia, with rebel help from Russia, China, North Korea, and Cuba….what a way to build a brand!
When we asked about potential expansion, he suggested of course the United States, and I wonder whether the expectations for growth in trade with the “normalization” of trade with the United States are as great here as they are on the mainland.