Can Cuba endure much longer?
Dear Editor,
Cuba is facing a deepening economic crisis, the worst in decades. Tourism, one of the key economic drivers is at a standstill as the country lost 99 per cent of its visitors this year. It grapples with ageing infrastructure, US sanctions, bureaucratic inefficiencies, shortages, and chronic power outages. Modest political reforms allow micro private businesses, but mostly from homes.
Close to 90 per cent of the population of 11 million live in extreme poverty, with severe shortages of food, medicine, and fuel. Despite having been friendly to Jamaica and other countries in the region, sanctions prevent aid from going into Cuba. Trinidad’s Prime Minister Kamla Persad-Bissessar was was bold enough to denounce the Cuban regime at a Caricom meeting, where she reminded members that they were all democratically elected, and none would want to copy the Cuban model in their respective countries. A very profound statement.
Cuba is heavily indebted due to public sector expenditures, massive trade deficit, and the lack of a dynamic private sector to push economic growth. Cuba is also isolated due to politics and economic sanctions.
Although the country has oil, refineries are State-owned and not enough to meet local needs. The State, through its militia, owns most hotels and controls everything in Cuba, including its citizens. The militia also owns a wide range of businesses in banking, construction, transportation, and retail. Foreign chains are licensed to operate and lease hotels with minor interest, but most profits remain with the militia. Since the crisis, foreign operators have been exiting. Until 2008, Cubans were banned from owning cellphones, DVDs, accessing the Internet, and using hotels on the island. After bans were lifted, Cubans became more aware and exposed.
Cuba has tremendous potential, especially in tourism and trade, but this is largely dependent on politics. Cuba is the largest island in the Caribbean, 10 times the size of Jamaica. Before the fuel crisis, plans were in place to increase hotel room capacity significantly by 2030, thereby putting Cuba on par with the Dominican Republic, which currently receives the most visitors per year in the region. Any growth in tourism in Cuba could also benefit the Caribbean in terms of promotion, stopovers, cruise travel, etc, but this can only happen with change.
Cuba also has minerals, agriculture, and potential in sports. Cubans have been resilient for decades, and in recent years they have been speaking discreetly, especially on social media, about the challenges — many are fed up. How much longer can Cubans endure extreme economic hardships when power is available for a mere two hours per day, and food and supplies remain scarce?
The political ideology in Cuba is rooted in fear, force, and intimidation to exert control, but the country is now falling apart. What happens next in Cuba, only time will tell, but change appears to be inevitable.
P Chin
chin_p@yahoo.com