Connect with us

Opinion

Mariel Harbor: Road to Change in Cuba’s Communism

Published

on

Mariel Harbour Cuba Communism

Photo by flickr/Doug88888

Talking about communist countries, Cuba comes to the mind first. Compared to China and Vietnam, communist countries that have undergone big reforms, Cuba has remained a strict communist country. While strongest republics like Soviet Union did not survive, Cuba has survived even when its location is so close to the US.

Looking at the pictures or walking on a street in the island nation, still gives the sense of being in a true communist land, which has not changed much over the years. Posters of Che Guevara are still dominating the walls, mid-century American cars plying on the road and communist party governing the people and economy.

In 1991, Soviet President Mikhail Gorbachev announced in Moscow with U.S. Secretary of State James Baker that Soviet Union would eradicate its multibillion-dollar annual subsidy to Cuba. Soon there were hopes that Cuba will see a pro-western revolution, like those in East European countries in 1989, and throw the communist government for a pro capitalist system. Nothing of that sort happened, but gradually Cuba did actually choose a path of change.

“We reform, or we sink,” said Raúl Castro in a national address in 2010. In the same year, he surprised everyone and created a media buzz by telling an American journalist, “The Cuban model doesn’t even work for us anymore.” So where is Cuba heading now?

Mariel Harbour Cuba Communism street

Photo by flickr/Doug88888

Cuba and Mariel Harbor: One Country, two systems.

The model is not new, and draws its inspiration from China. Despite being a communist country, China’s successful economic model has made it world’s second largest economy. Cuba is relying on the same concept and is building a Chinese style special economic zone, 30 miles west of capital Havana, on the banks of Mariel Bay. This will include refurbishing of Mariel Harbor, with the help of Brazilian capital led by the Brazilian conglomerate Odebrecht, with support from the Brazilian National Development Bank. The work has already started and the expectations are to complete on schedule, in January 2014, when it will start acting as the major container shipping port of the region.

The port is strategically situated to handle trade on the route between US, Europe and Panama Canal. The port is designed keeping in mind the enormous traffic this region is going to see after the expansion of Panama Canal is completed in summer next year. Once US lifts the embargo, we can see some long-term benefits of this port. Apart from helping in the refurbishing of the Mariel Harbor, Brazil is also helping Cuba economically to renovate and expand operations of five airports throughout the island.

The special economic zone is itself going to be a 180 square miles big stretch that will be immune from laws of Marxism. Cuba is expecting to invite foreign companies to invest, set up manufacturing plants, research and operational centres.

Why Would Investors Risk Their Money in Communist Cuba?

Mariel Harbour Cuba Communism wall

Photo by flickr/flippinyank

When there is China, India and new favourite destinations like South East Asia and East Europe, then why would someone especially from a capitalist country risk their money by investing in a strict communist country? The reason behind the cold relations between US and Cuba is not economic and political ideology with which these countries differ, but nationalization of billion dollar worth foreign assets mainly from US after Fidel Castro’s 1959 revolution.

Cuba’s Foreign Trade and Investment Minister Rodrigo Malmierca has assured on behalf of Cuban communist leaders that this special economic zone will be free from any communist ideology and properties within this 180 square mile area cannot be expropriated. In addition to that, the communist government of Cuba is offering investors 100% ownership of their business, 50 years contract, duty free imports and no tax for the first 10 years for doing business on the island.

Cuba’s ideological allies: China and Vietnam along with Cuba’s natural friend: Latin America and Russia have expressed interest in contributing to this economic zone. Cuba has also received positive response from Spain, Japan and Germany.

China’s export dominated market is finding Cuba an exceptional place for taking its business and trade with western hemisphere to a new level.

“The Chinese companies that today produce in China and bring their goods here could produce here in Cuba, in this special zone … with many incentives,” Rodrigo Malmierca told China’s Xinhua news agency. He further added, “by setting up their operations in the special zone, Chinese companies would be well-positioned to supply the rest of Caribbean, Central America and Mexico.”

There is no doubt China can trust Cuba more than any other country in the west. While there are governments and economies in this world resisting Chinese aggression, Cuba will be delighted to gain investments from an inspirational communist partner.

With these new efforts by Raúl Castro, we need to see how far Cuba is able to make it. There are doubts that investors will see Cuba as an attractive site for establishing manufacturing plants and make it an export hub. It is because Cuba does not have that much skilled and experienced force in the field of assembly plants, electronics and computers. On the other hand, Dominican Republic offer lower labour costs and experience in manufacturing. Sophisticated industries that can change the entire scenario in Cuba like information technology, electronics and computers engineering, biotechnology and heavy machinery may not come immediately.

On the other hand, Cuba is a good source of doctors and provides doctors to Venezuela and now Brazil. Many analysts agree that the new Cuban special economic zone may be soon rolling out medical devices and pharmaceuticals that could interest foreign investors. In addition, we should not forget Cuban cigars and rum enjoys popularity all over the world, though few have tried them.

Use your ← → (arrow) keys to browse

Sanskar Shrivastava is the founder of international students' journal, The World Reporter. Passionate about dynamic occurrence in geopolitics, Sanskar has been studying and analyzing geopolitcal events from early life. At present, Sanskar is a student at the Russian Centre of Science and Culture and will be moving to Duke University.

Continue Reading
Comments

Opinion

Yes, You Should Start Caring About Politics!

Published

on

One of the most common things that you hear from people a lot of the time is something along the lines of “I just don’t really care about politics.” In fact, you might have even said something along those lines yourself. And it can be tempting to fall into this line of thinking. After all, politics are hardly the most exciting or exotic things in the world. However, the truth is that they impact your life in different ways every single day and if you choose to ignore politics, then that just meant that you’re going to end up falling victim to policies that harm you and the people around you. With that in mind, here are some ways that you can start being more politically minded right now.

Know the issues

Do you know where you stand on many of the most important issues of the modern day? Do you know what most of those issues are? The truth is that many people would rather ignore a lot of the problems that society and the world at large face simply because it can feel as though they’re too big to deal with. Things like the economy, climate change, and social justice aren’t just abstract concepts; they’re things that impact the lives of real people every single day. Being more informed about the issues will allow you to have a much better understanding of your own political views.

Know who to speak to

Do you know who your senator is? Your representative? Most people tend to only know major politicians who have held office at one point or another. Sure, you probably know the president or a senator like John Mccain. But what about all of the other senators like Doug Jones or Mike Crapo? These are the people you can actually contact if you want to start making some changes in the world. Getting to know who you can contact can help you feel much more involved in the modern political process.

Forget about personalities and focus on policies

Modern politics has become as much of a game of personalities as anything else. But the truth is that the personalities of individual politicians are far less important than the policies that they and their party want to enact. After all, the policies are the things that will actually make a difference in people’s lives. You should never vote just because you like or dislike the way that a particular politician talks or what their personality seems to be like. Always vote on policies, not personalities.

Now, this doesn’t mean that you should suddenly let politics take over every conversation that you have or that you need to be constantly thinking about it. But trying to bury your head in the sand and ignore the things that are going on around you isn’t going to do you any good. The only way that you can start to make some genuine changes in the world is if you face up to the realities of the modern world and try to do something about it.

Prev postNext post
Use your ← → (arrow) keys to browse

Continue Reading

Opinion

How Mafia-States Get Away with Criminality

Published

on

In theory, all 195 states adhere to the Charter of the United Nations and therefore pledge “to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained”. In other words, to play the game and adhere to basic governmental principles. That’s in theory: in practice, a handful of states in the world behave like mafias, and get away with it.

President George W. Bush first used the terms “failed states” or “rogue states”, during his office. Rogue states seem more adapted because, if they are failed states in the sense that they do not carry out their mission, they are not failed for everyone. Afghanistan is, still today, one of the most prominent examples of how to get personally rich by pretending to represent people. In the wake of the NATO intervention in Afghanistan, billions of dollars were poured into the country in reconstruction efforts, based on the belief that if the population was schooled and busy at work, they would be less likely to join rebel ranks. The idea was good, but most of the massive funds were sidetracked to line officials’ pockets and Afghanistan is pretty much in the same shape as it was before the program, if not worse. Business Insider covered the subject (1): “All districts receive central government budget to cover salaries of front-line forces,” reporter Jessica Purkiss wrote for the Bureau. “In many areas in Afghanistan, some of this budget disappears and the actual number of officers tasked with holding back the Taliban is much lower than the number actually allotted.”

And such rogue states also exist close to the Western sphere of Europe and the US. Almost every single State in Central and South America is at the warning level on the Fragile State Index (2) (the term was brushed up to sound less definitively damning than President Bush’s wording). Hungary was bashed this year, along with the rest of EU low-performers, for dropping sharply in the EU’s good governance ranking, as reported by Nicolaj Nielsen, for the EU observer (3): “Bulgaria scored the worst among EU states with 41, followed by Greece (44), Italy (47), Romania (48), Hungary (48), and Croatia (49). Dolan faulted the crackdown on civil society and other independent institutions in Croatia and Hungary for their worsening performance. Both governments were also embroiled in scandals last year. In one case, Hungary’s government allegedly funneled money from the Central Bank to friends and family.” Prime Minister Viktor Orbán learned from the report (4) that “Hungary loses 200 billion forints every year due to the corruption that exists in public procurement cases.”

Not to forget that States are not all mutually recognized and accepted, some of them are self-proclaimed. While some do indeed strive to carry out their stated mission and serve the people they claim to represent, some other are merely mafia groups with a political cover, which deal in various traffics and racketeering. Bordering Morocco, Algeria and Mauritania, lies Western Sahara, where a group named the Polisario Front announced to the world that it was the shield of the Sahrawi people, who originate from the arid strip of land, with the stated intent of creating a sovereign state. But that must be put into perspective with the endless list of allegations and accusations carried against it, regarding the Polisario’s management of refugee camps in Algeria for example. The self-proclaimed government of the Sahrawi – namely the SADR (Sahrawi Arab Democratic Republic) – is known for keeping the refugees captive in the camps, or keeping family members as hostage to guarantee men’s returns, maintaining a general state of violence and lawlessness within the compound. In addition, the European Anti-Fraud Office (OLAF) has serious doubts (5) as to what becomes of the humanitarian aid it sends. It suspects not only the food to be sidetracked and sold on the black market, but also to be requested in excessive numbers – the Polisario front claims it holds up to 200 000 refugees but has systematically refused census, leading humanitarian donors to believe the figures are doubtful.

Can this be avoided? Hardly, at the general level. Pablo Escobar coined the phrase which underlies the entire system : Plata o plomo (silver or lead). Officials could be paid off to keep silent and play along, or be shot. Therefore, it is in the nature of corruption systems to maintain themselves because, should a “pure” official arise, he will be removed and replaced by a more complacent one.

Mafia states use the cover of darkness or, better still, a politically activist stance. The Colombian FARCs – Polisario’s allies, incidentally… – and the Medellin Cartel, run by Pablo Escobar, had an intense PR activity with many “social and humanitarian” poses, to help improve their public image and stymie political push-backs. The Polisario Front has moved much of its assaults to the judicial level, in a new form of “civilized” piracy, including with the surprise attempt to seize a Moroccan shipload earlier this year in South Africa. “The conclusion of this case will actually tell us whether it is now conceivable, on the judiciary level, that international shipping industry – which carries 90% of global trade – become hostage to some form of unprecedented and increasingly vicious political piracy,” wrote Philippe Delebecque (6), a French judge specializing in maritime affairs.

Mafia states are here to stay, because the mafia creates the state, and not the other way around. Once the mafia has developed its tentacles and political power enough, it will make kings and topple uncooperative administrators. Other states in the world are fully aware of this fact, and that if they bust a mafia-state, another will replace it within weeks. So, in the best cases, neighboring countries let it be; in the worst cases, they get involved in the graft.

1) http://uk.businessinsider.com/afghan-national-security-forces-us-assistance-70-billion-2017-9
2) http://fundforpeace.org/fsi/
3) https://euobserver.com/political/136664
4) http://hungarianspectrum.org/2017/01/26/hungary-has-been-steadily-becoming-more-corrupt/
5) http://www.eubulletin.com/4018-exclusive-olaf-report-reveals-diversions-of-eu-aids-to-western-sahara.html
6)https://seapiracy.einnews.com/article/406654813/_j2VsuC3itgcmo3C?lcf=YCp5Ip9ztVBQmLVnDO55vXzEICMe6RFJuBE3DVQzur8%3D

Use your ← → (arrow) keys to browse

Continue Reading

Opinion

Should You Support Universal Basic Income? Who else is in favour?

Manak Suri

Published

on

In the previous article “Universal Basic Income: In Action” we explored that Universal Basic Income under different variants is already being put to trial in different provinces of a number of countries around the world. Before that, in “Universal Basic Income: The Idea” we weighed the potential of UBI in creating a monumental change in the way humanity as a society functions as of today. While there’s still quite some time required to ascertain how easily and efficiently the system can be put into effect and whether it should be put into place at all, some of the more apparent advantages, as well as flaws of the system, are repeatedly considered by experts in determining the answers to the aforementioned questions. In addition, many influential figures have also come out both in support of UBI as well as against it. Let’s take a look at the support UBI has garnered as well as the supposed benefits and criticisms of UBI.

Pros of Universal Basic Income

The first argument often cited in favour of UBI is for its potential to alleviate poverty, improve the standard of living and vastly reduce income inequality no matter which country it is implemented in. the Alaska Permanent Fund (AFP), which we’ve already discussed, was instrumental in improving the state’s income equality rank from 30 to 2. UBI trials in Namibia, Kenya, and parts of India have also yielded positive results in this regard. UBI has also resulted in the improvement of health, especially mental health, as reported by people who have been part of UBI trials in Ontario, Canada. UBI also encourages entrepreneurial behaviour since it guarantees basic subsistence thereby providing an incentive for people to take up a line of work of their liking. UBI trials in India and Namibia have also shown that it has helped promote financial decision making by women resulting in their empowerment. A guarantee of a fixed income every month also brings more power to people when it comes to deciding where they should spend money. The Roosevelt Institute research we discussed previously also suggests an overall growth in the US economy with a countrywide implementation of UBI. UBI is also expected to lead to a positive job growth and lower the dropout rates in schools since it provides more security to families.

Cons of Universal Basic Income

The critics of UBI argue that money that is essential for the poor is being redirected towards the wealthy and those citizens who have no need for it. Robert Greenstein, founder and President of Center on Budget and Policy Priorities in Washington D.C.  “if you take the dollars targeted on people in the bottom fifth or two-fifths of the population and convert them to universal payments to people all the way up the income scale, you’re redistributing income upward. That would increase poverty and inequality rather than reduce them.” In addition to that, it is often argued that UBI programs are highly ineffective when compared to welfare programs that are implemented on targeted populations. Therefore, unless UBI is implemented without the scrapping off of such welfare schemes, it is likely to find opposition from a huge number of people who currently benefit from these programs. Another argument against UBI one may repeatedly encounter is that UBI reduces the incentive to work, which leads to huge costs for the economy. This may also lead to a dearth of skilled and unskilled labour in the economy. The Swiss government have opposed the implementation of UBI for the very same reason, fearing that the current labour shortages may be exacerbated. Finally, an argument that also holds the door open for many debates is that UBI is too expensive to implement and will cost a lot to the government. As opposed to studies which show a growth in the economies through the implementation of UBI, many economists have also opposed it, claiming that UBI in the more developed nations will be very expensive to guarantee an acceptable standard of living to all the citizens.

Who Supports Universal Basic Income?

Since the idea was first proposed by Sir Thomas More in 1516, UBI has found suitors throughout recent history. Founding father of the United States Thomas Paine was in favour of it, philosopher and Nobel Laureate Bertrand Russell argued in its favour, and even Martin Luther King said: “the solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income.” American economist Milton Friedman, Bishop Desmond Tutu, and even former US President Richard Nixon came close to bringing UBI to the United States. As of today, a number of high profile names in the Silicon Valley have expressed their support for UBI. An advocate of entrepreneurship and creativity, Mark Zuckerberg sighted UBI as an worth a look in his statement at his Harvard commencement address: “We should explore ideas like universal basic income to make sure that everyone has a cushion to try new ideas.” Tesla co-founder and CEO Elon Musk believes implementation of UBI is inevitable. “There’s a pretty good chance we end up with a universal basic income, or something like that, due to automation,” Musk said in an interview in 2016. Pierre Omidyar, founder of eBay also donated towards a UBI experiment in Kenya. Coursera founder Andrew Ng expressed on Twitter: “More than ever, we need a basic income to limit everyone’s downside, and better education to give everyone an upside.” The list does not stop here.

UBI has at least gained enough attention to get people, investors, world leaders, and governments to talk about it and more importantly experiment with it. The results are not yet out and will take a considerable amount of time still to be able to present a final verdict on UBI and its effectiveness. However, as robots make humans redundant in recurring waves, is there still enough time to just be experimenting?

Use your ← → (arrow) keys to browse

Continue Reading

Trending