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Cuba to Legalize Small and Medium Sized Businesses
Date: 27 May 2016 11:01
One of the world’s last communist countries has finally started to embrace capitalism. On Tuesday, May 26th, Cuba announced that it will legalize Small and Medium Size Enterprises (SMEs). The move has given wings to a section of the economy that, up until now, has been prohibited and non-existent, at least legally.
The reform leaves business owners and economists optimistic that the change will permit private companies to import wholesale raw materials and export finished goods to foreign countries for the first time. Finally, removing a massive hurdle in private business sector growth.
This indicates a change in policy after decades of being hypercritical of the free market, labeling it as a ‘tool of American imperialism’. Raul Castro, once again proving that his more lenient take on reforms is benefiting the Cuban economy and, most importantly, the people. The Cuban government now realize that the economy will not progress without a private sector.
Since 2010, the government has permitted its citizens be self-employed. This has led to around a third of Cuba’s workforce, approximately 1.6 million people, moving to work in the private sector. The new modifications extend legal rights to small business owners. This goes in line with Raul Castro’s claims in 2008, where he stated that he eventually foresaw 40% of the workforce in the private sector. Cuba looks like it is evolving much the way China did, maintaining a Communist government but opening up a capitalist economy.
Ferries Lie Waiting in the Wings, as Cruise Travel to Cuba Increases
Date: 09 February 2017
Some things are destined to happen. Sometimes you can only keep things under wraps for so long. Maritime travel between the USA and Cuba has long been outlawed. However, due to developments over the previous years, cruise liners managed to get their foot in the door in 2016. Since the inaugural Fathom sailings in May 2016, the numbers of cruises to Cuba has increased.
Cuba’s Most Momentous Year Since 1962
Date: 02 January 2017
Although it concluded the year, one must start with the death of Fidel Castro, Cuba’s totalitarian leader for the last half a century. It is never good to wish harm upon anyone. But, sometimes when people become used to a way of life, only a drastic event, a shock to their system, will cause a spark that can lead to a blaze of change. Will it be out with the old and in with the new? Only time will tell. But, this has been a year of firsts. Leading to the belief that Cuba could turn the page on the 1950s once and for all and progress into the 21st Century. All else will follow.
Five More Cruise Companies Gain Approval to Sail to Cuba
Date: 14 December 2016
A new wave of cruise companies, a total of five, working under either the Royal Caribbean & Norwegian Cruise Lines holdings umbrellas are entering the South Florida – Cuba ferry market. Norwegian will become the only operator headquartered in the USA that will have the entirety of its brands sailing to the once-forbidden island. The three brands, Norwegian Cruise Line, Regent 7 Seas and Oceania Cruises, will sail to the island while acting in accordance with US Department of Treasury regulations. In addition to these three, Azamea Club Cruises and Royal Caribbean will also begin operations from Florida to Cuba. Under the regulations as classified by the Office of Foreign Assets Control (OFAC), passengers would engage in ‘people-to-people activities’.
Key West to Advance on Plan for Ferry Route to Cuba
Date: 06 December 2016
Hardly more could have changed in the US/Cuba dynamic in the last month. With the surprise election of Donald Trump, everything seemed to be reverting to the Cold War period. But after breaking campaign promise after campaign promise, the threats seem less and less viable. Compound that with the recent death of Cuban, Marxist-Leninist revolutionary, Fidel Castro and everything seems up in the air. With the more moderate Raúl Castro now pulling the strings, without any interference from his brother to moderate any advances in economic policy, the possibility for change is there.
Cuba Outstretches Hand for FDI
Date: 29 November 2016
The leader of the Cuban Revolution is dead. Now all the backlog of change, 50 years’ worth of it, can slowly start. Until he passed the baton to his brother Raul Castro (2008), Cuba had resisted change for almost half a century. After Raul took over, the country started changing slowly but surely. The automatic ‘no’ answers, to anything and everything that involved change, became ‘maybes’ and ‘under certain conditions’. This gave way to laws that permitted private businesses and private property, previously outlawed in Cuba.
Business to Trump Politics in Cuba
Date: 22 November 2016
A collection of big multi-nationals who started planning for life after the embargo will attempt to pander to president-elect Trump’s self-proclaimed superior business acumen. Dozens of companies are either planning to, or have started expanding into Cuba already. Trump threatened to shut the doors on the newly re-opened American embassy in Havana, as well as flirting with reverting to previous Cold War economic relations and travel agreements. However, the Chamber of Commerce will be pushing to maintain the current status quo after Obama’s reform created loads of promising commercial prospects. The strategy is trying to pull at strings that are key pieces to the Trump persona. If an opportunity makes good business sense, then why would a proficient businessman turn it down?
Spanish Businessmen Hurry Up their Plans for Cuba
Date: 16 November 2016
Spanish businessmen with pending plans for the island have made no attempt to hide their fear that the first mover’s advantage benefits of certain big American companies could create barriers that will make their entry into the market more difficult. Even though, stateside, the fear is that the politics will revert to the times before the Obama rapprochement two years ago.
New Presidential Directive Working Already
Date: 07 November 2016
The new Presidential Policy Directive (PPD) is working already. The PPD, which was enacted last month, is the latest in a course of events in the Cuban Thaw that, through executive action, loosened travel and trade to Cuba. It allows for the import of Cuban medicines to the USA. CIMAvax, an encouraging lung-cancer vaccine, will soon commence Food and Drug Administration (FDA) clinical trials in the USA. As of today, never before has a Cuban drug been run in clinical trials in the USA. At first glance, the shipment of delicate cargo seemed a precarious obstacle. However, after a successful test run to ensure the delicate cargo would arrive intact, shipping a box of water, it seems that the USA are ready to receive the delicate cargo.
TripAdvisor Awarded Permit Allowing Bookings to Cuba
Date: 31 October 2016
TripAdvisor has become one of the inaugural American companies given permission by the US government to sell “travel-related services” to Cuba bound travelers worldwide. The US Treasury Department’s license grants TripAdvisor permission to stimulate and support “educational and cultural engagement between global travelers and the Cuban people.”
US Abstains in UN Vote Against Embargo
Date: 27 October 2016
On Wednesday, October 26th, the United States took another massive step towards ending the Cuban Embargo. The US changed its vote from ‘in favor’ to ‘abstain’ for the UN General Assembly’s resolution for an end to the embargo. This marks the first time since the fall of the Soviet Union in 1991 the US has not voted in favor to maintaining the embargo. Normally, several smaller nations vote in line with the USA. However, this time, of the 193 UN member countries, 191 voted against the embargo with just Israel siding with the USA in abstention and nobody opposing the reform.