Democracy and Governance in Cuba
The Development Challenge: Human rights conditions remained poor in 2004, in the wake of the Government of Cuba's (GOC) jailing of 75 human rights activists and independent journalists in 2003. Even though 14 of the 75 prisoners were released for health reasons, the poor treatment and humiliating conditions of the imprisoned journalists, and the harassment of their families, has been clearly documented.
Cuba continues to received among the lowest ratings for both political rights and civil liberties. The country was once again rated among "The Worst of the Worst, The Worlds Most Repressive Societies 2004", in a special report from Freedom House. Cuba was also ranked by Freedom House as one of the five worst countries in terms of restrictions and obstacles to the free flow of information. There has also been no change in its poor status of respect for religious freedom during this period.
The report and recommendations from the President's Commission for Assistance to a Free Cuba were released in May 2004. The United States acted on the Commission's recommendations by tightening the embargo with Cuba in an attempt to further undermine the survival strategies of the Castro regime and to hasten the end of the dictatorship. The measures included capping remittances sent to the island by Cubans in the United States, as well as further restricting travel to the island. In response to these measures, the Cuban central bank announced that dollars would no longer be accepted in shops and businesses, and that tourists and Cubans exchanging dollars will have to pay a 10% commission.
Cuba's economy is expected to grow by about 3% this year, up from 2.3% last year and less than 2% the year before. Cuba's 2003-2004 sugar harvest was 2.5 million metric tons, down from the 2002-2003 harvest of 3.6 million metric tons. The 2004-2005 harvest is expected to be even worse, due to continuing drought conditions. A decade ago, it was common to harvest 6 to 7 million metric tons annually. As Cuba's sugar industry continues to undergo major restructuring, it has been replaced by tourism as the island's chief source of foreign income. Most recently, China has committed to partnerships that will ease travel to Cuba, with planned direct flights as well as investments in new hotels and resorts.
Foreign investments in Cuba dropped 15% in 2004, as a result of the GOC allowing fewer new ventures with foreign companies. This is in contrast to the early 1990's when the Cuban government was more open in order to offset the nearly $5 billion annual loss in aid as a result of the collapse of the Soviet Union. A recent example of greater state control over the economy is limiting the number of licenses for self-employed contractors. Another example is the GOC's decision to no longer accept official transactions in U.S. dollars, so they can no longer be spent on goods and services. In addition, U.S. dollars must first be exchanged for pesos which have no value outside Cuba.
Considerable economic growth is expected in some areas, due to renewed relationships with some European countries and new investments from others. China recently made commitments of $500 million for a new nickel plant, new investments in education, health, and even new agreements for Cuban production of televisions, coffee, and fruit to export to China. Partnerships have also been formed with Spanish and Canadian oil companies to drill off the coast of Cuba. A Canadian firm has expressed interest in significantly increasing nickel and cobalt projects on the island.
In 2004 there were a number of lengthy power outages due to Cuba's antiquated and problem plagued electrical grid. Factories were temporarily closed, work and school days were cut short, and street lights were dimmed or turned off to conserve electricity. Castro could only pledge to significantly boost the island's electrical output.
(Excerpted from the 2006 Congressional Budget Justification for Cuba)
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