Showing posts with label remittances. Show all posts
Showing posts with label remittances. Show all posts

Saturday, May 2, 2009

Cuba & the U.S. (10 of 11): Why would Cuba consider closer relations with the U.S.?

If you prefer, you can read the whole Cuba report as a PDF by clicking here.

Summary:  Improved relations with the U.S. would give Cuba more hard currency and the prestige of having “forced” the U.S. to back off a long-standing policy.

Socialist policies lead to weak economies. Increased trade with the U.S. would bring Cuba much-needed hard currency. Easing the restrictions on remittances would have the same effect, except that the Cuban government would not need to produce any goods in exchange. Remittances are estimated at $600 million to $1 billion per year, even though President Bush reduced the maximum permissible amount from $3,000 to $300. The government takes 10% of the remittance amount when converting it to pesos. If the dollars are spent in “dollar stores,” the prices of goods are often at least doubled. Again, the extra money goes to the government.

On a moral level, getting concessions from the United States would give Cuba the chance to boast of having made the United States back off. The Castro brothers are certain to put this spin on any rapprochement between the U.S. and Cuba. If Cuba is reinstated as a full participant in the Organization of American States, the same spin will be applied.

Relations between Cuba and the U.S. (1 of 11)

I'll be posting here as a multi-part blog entry a report on relations between Cuba and the U.S., particularly re the raising of the embargo and Cuba's status in the Organization of American States. If you prefer, you can read the whole report as a PDF by clicking here.

Contents:

What issues are upcoming between Cuba and the U.S.? Summary: The embargo on trade with Cuba and Cuba’s status in the O.A.S. are under discussion.

Fidel Castro’s Rule, 1959-2008. Summary: Fidel Castro ruled as a totalitarian dictator for 49 years, and during the Cold War had close ties with the Soviet Union.

Raul Castro’s Rule, 2008 to present. Summary:  Raul Castro operates on the same principles as Fidel.

Cuban Ideology. Summary:  Cuba’s government today is explicitly socialist, as it has been for 50 years.

Individual Rights and Civil Liberties. Summary:  Cuba is a repressive totalitarian dictatorship in which the rights of individuals are subordinated to the needs of the state.

Economy. Summary:  The Cuban economy cannot operate without substantial foreign subsidies, and is deeply in debt.

Foreign Relations. Summary:  Cuba’s friends are other totalitarian dictatorships and other communist or socialist nations. Raul Castro and the Cuban Constitution both condemn the United States.

Philosophical principles. Summary: Cuba should be treated as an enemy because it has consistently and for decades espoused principles that are opposed to those of the United States, and has repeatedly threatened U.S. citizens and expropriated their property.

Why would Cuba even consider closer relations with the U.S.? Summary:  Improved relations with the U.S. would give Cuba more hard currency and the prestige of having “forced” the U.S. to back off its long-standing policy.

Why Cuba will probably not improve relations with the U.S. too much. Summary: Efficient dictators always make sure they have an enemy to distract their subjects.

Suggested Readings by Ayn Rand and Objectivist Scholars

Sources Consulted

Other Recommended Readings

NOTE: Most of the statistics in this report come from the U.S. Department of State’s 2008 Background Report on Cuba (dated August 2008) and the CIA World Factbook entry for Cuba (last updated 4/23/2009).