The long path to re-establishing Cuban/U.S. relations is permeated with obstacles and misunderstandings, some of which make it even harder to reach that objective. One of the most visible misperceptions has to do with the general impression among U.S. leaders that Cuba is the ripe fruit just waiting to fall into U.S. hands, and that what happened in January 1959 in Cuba was something akin to a temper tantrum that would eventually be resolved by the Cubans who fled to and set up shop in Miami. Continue reading “The strange U.S. perception that Havana is located in Florida”
Investment in Cuba: the US Investor’s Forbidden Fruit
When Adam shared the apple with Eve, he must have thought it a good investment, though both were expelled from paradise as a result. In the end, it’s clear that they came out the better for it, since afterwards they had access to earthly pleasures as well as difficulties. As a matter of fact, paradise was not perfect – it had plenty of restrictions.
Right now, for U.S. companies wanting to do business in Cuba, something similar is happening. Cuba exists, just not for them. Thanks to a supreme power, they are unable to invest in Cuba because this might “damage” the Made-in-USA franchise. Continue reading “Investment in Cuba: the US Investor’s Forbidden Fruit”
The Irrationality in U.S./Cuban Relations
Fifty-five years of confrontation, misunderstandings, entrenched positions and distrust have turned relations between Cuba and the United States into an irrational nightmare that leaves all logic in human relations behind.
It’s very difficult these days to take a balanced approach when it comes to relations between Cubans and Americans. This is even more evident at the highest official levels on both sides.
For some time, I’ve found myself at the center of this problem. In my work as a business consultant, I’ve always believed that the most rational approach is to refrain from identifying with either side, the better to assist both. It’s impossible to produce any kind of useful analysis if it is only performed from a one-sided perspective. It’s not that an analyst won’t have perceptions that might tend to favor or disadvantage one of the parties, but it’s a matter of being intellectually honest and understanding that both sides need support. Continue reading “The Irrationality in U.S./Cuban Relations”
Successes & Failures by Foreign Investors in Cuba: A Primer
Prior to the 1990’s, the Cuban economy was completely integrated in the world’s socialist bloc with nearly ninety percent of its trade and investment coming from the member countries in that bloc, via the Council for Mutual Economic Assistance (CMEA). The Soviet Union was the largest participant in the group and relations were based on complementary economics.
Within this context, the benchmark currency was the convertible ruble and the hallmark of the system was its extensive Economic Plan that was initially designed for a strategic 5 year period, with yearly updates thereafter.
Notwithstanding its CMEA agreements, Cuba also engaged in a small amount of trade with capitalist countries where it operated under the rules of international commerce at the time.
With the disintegration of the Soviet Union and the socialist camp, Cuba was left practically without access to the majority of the markets with which it had previously traded and found itself obliged to insert itself completely in the complicated world of commercial capitalist relations, with the aggravating factor that this sector was heavily restricted by the U.S. embargo against the island, and international trade was subordinate to the United States as a consequence of its status as world leader. Continue reading “Successes & Failures by Foreign Investors in Cuba: A Primer”
Doing Business in Cuba – Myth vs. Reality
Over the past year and a half, as American business executives, journalists, and government officials have set off for Cuba in search of future business deals, we’ve had the opportunity to meet with a good many of them in Havana, while observing the comments of others from a distance. A common denominator appears to be their mental frame of reference. Like hermit crabs shuttling their habitats on their shoulders, it’s evident that more than half a century of missing information or misinformation has taken its toll, and the American view of Cuba has come to be largely governed by social myths.
The problem for any company considering future opportunities in this market just 90 miles south of Florida, is that social myths make the worst kind of compass. Business executives wandering distractedly in the fog of social myth become easy prey for grifters looking to take advantage of their confusion. Their international competitors can rest a little easier, knowing that Americans are so far behind the curve that even a lifted embargo will not be an immediate game changer.
Here are some of the misperceptions we hear expressed most often:
Myth #1: Recent changes in U.S. regulations have freed American companies to do business in Cuba. Continue reading “Doing Business in Cuba – Myth vs. Reality”