Perspectives on U.S.-Cuba Relations Under Trump

Trump and Cuban Americans

President Trump announces his administration’s policy toward Cuba. / YouTube / Livestream TV News / Creative Commons

Reversing Obama’s Cuba Policy?

By William M. LeoGrande*

In the two years after President Barack Obama and Cuban President Raúl Castro agreed to normalize relations, Obama tried to make his policy of engagement “irreversible” by opening up travel and trade that would create constituencies with a self-interest in defending engagement. He half-way succeeded. Despite the incendiary rhetoric in which Donald Trump cloaked his new policy when he rolled it out at a rally of Cuban-American hardliners in Miami, the sanctions he announced were limited.

Obama granted general licenses for all 12 categories of legal travel and relaxed other restrictions on who could visit Cuba. Trump rolled back only individualized people-to-people educational travel, so people-to-people visitors must once again travel on organized tours. But they can still go, and bring back rum and cigars.

Obama opened the Cuban market to U.S. businesses by licensing contracts with state enterprises in the travel, telecommunications, pharmaceuticals, construction, agriculture, and consumer goods sectors. Trump prohibited only contracts with Cuban enterprises managed by the military, and even then he exempted all existing contracts, and future contracts involving ports, airports, and telecomm – the sectors in which all but a handful of current U.S. businesses operate.

Trump did not impose any restrictions on Cuban–American family travel and remittances. He did not break diplomatic relations or put Cuba back on the State Department’s terrorism list. He did not restore the wet foot/dry foot policy that gave Cuban immigrants preferential treatment after reaching the United States. He did not abrogate the bilateral agreements on issues of mutual interest negotiated by the Obama administration.

Why such a flaccid set of sanctions from a president who stood on the stage in Little Havana and demonized the Cuban regime as brutal, criminal, depraved, oppressive, murderous, and guilty of “supporting human trafficking, forced labor, and exploitation all around the globe”?

Because Obama’s strategy of creating constituencies in favor of engagement worked. In the weeks leading up to Trump’s announcement, he was deluged with appeals not to retreat from engagement. The U.S. Chamber of Commerce argued in favor of expanding business opportunities, not constricting them. Farmers argued for expanding agricultural sales. Travel providers argued for expanding travel. Fifty-five U.S. Senators cosponsored a bill to lift all travel restrictions. Seven Republican members of Congress and 16 retired senior military officers argued that disengagement would damage national security by boosting Russian and Chinese influence on the island. Polling data showed that large majorities of the public, of Republicans, and even of Cuban Americans support engagement.

Even the executive bureaucracy was won over by the successes scored by the policy of engagement. During the last two years of Obama’s presidency, Cuba and the United States signed 23 bilateral agreements. When Trump ordered an inter-agency review of Cuba policy, the consensus of the agencies involved was that engagement was working and ought to be continued. Trump rejected that conclusion because it did not fit with his political strategy of currying favor with the Cuban-American right, but the agencies fought back successfully against more extreme proposals to roll back Obama’s policies entirely.

Trump’s vicious rhetoric and his open embrace of the goal of regime change – through sanctions, support for dissidents, and “democracy promotion” – risks destroying the atmosphere of mutual respect and good faith that made the gains of Obama’s policy possible. Already, hardliners in Havana who saw engagement as a Trojan Horse for subversion are saying, “We told you so!” Cuba’s private entrepreneurs, who Trump’s policy purportedly aims to help, will be hurt the most by the prohibition on individual people-to-people travel. However, the overall economic impact of his sanctions will be limited, both on U.S. businesses and in Cuba.

Cuba’s official response has been pragmatic but firm. A statement released shortly after Trump’s Miami speech declared, “The Government of Cuba reiterates its willingness to continue respectful dialogue and cooperation on issues of mutual interest, as well as the negotiation of pending bilateral issues with the United States Government…. But it should not be expected that Cuba will make concessions inherent to its sovereignty and independence, nor will it accept any kind of conditionality.”

In all likelihood, political pressures from the constituencies Obama’s policy created will continue to constrain Trump’s impulse to beat up on Cuba, but his loyalty to the exile right and his penchant for bullying will make it impossible to realize further progress toward normalizing relations. That will have to wait until the White House has a new occupant motivated by the national interest rather than by a political IOU given to Miami’s most recalcitrant Cuban-American minority.

*William M. LeoGrande is Professor of Government at American University in Washington, DC, and co-author with Peter Kornbluh of Back Channel to Cuba: The Hidden History of Negotiations between Washington and Havana (University of North Carolina Press, 2015).

Cuba: Trump’s “New Policy”

 

By Ricardo Torres*

The “new policy” toward Cuba that President Trump announced to great fanfare in Miami last Friday features little that is new while seeking to restore oxygen to a failed approach advocated by extreme sectors of the Cuban-American community. While adopting language reflecting the worst traditions of American foreign policy, Trump’s declaration implicitly blessed much of the rapprochement between the two countries introduced by President Obama – diplomatic relations will remain intact, for example. But the new measures he announced have symbolic and practical implications. His Cuban-American backers expended great political capital to change the policy in hope of accelerating regime change on the island, but the Trump approach will instead retard change – while increasing the pain of the Cuban people. Moreover, it will undermine the activities of legitimate U.S. citizens, companies, and groups interested in contact with the island and compromise U.S. citizens’ freedom to travel. They have acted against Trump’s campaign promise to create jobs (threatening thousands of workers who depend on U.S.-Cuba interaction) and increase national security (putting U.S.-Cuba cooperation in counternarcotics, counterterrorism, and illegal migration at risk). The new approach also runs counter to Secretary of State Tillerson’s repeated assertion that U.S. policy is not to impose its values and standards on others.

U.S. national interests seem to have taken a back seat to internal U.S. political factors, particularly the opposition to Obama’s policies among certain groups of the Cuban Americans that had seen their political influence decline over the past decade.

In addition to its symbolic weight, the Trump approach is likely to be felt most strongly in several principal areas. Despite continuing differences between the two countries, both governments had decided to move ahead together. It is difficult to overstate the sense of hope created during the Obama era, with immediate and tangible benefits for both.

Cuba’s internal situation has been changing recently, due to a gradual opening internally and to other nations. A steady increase in visits by foreign businessmen and Cuban travel overseas are evidence of this change. Trump’s rhetoric and actions will only strengthen those sectors inside Cuba that exaggerate the external threat and want to reduce the space for debate in the country.

The economic impact that Trump and his backers want – to hurt the Cuban government – cannot be separated from the harm it will cause the Cuban people. The new measures will probably reduce tourism, which provides a significant flow of revenue to vast sectors of the Cuban population that, in formal or informal jobs, benefit from that industry. Indeed, the much bandied-about private sector has been one of the principal beneficiaries of tourism development.

The Cuban government will assess its options in relations with the United States as well as in domestic policies. It will naturally have to let the U.S. government know that cooperation has yielded mutual benefits to both countries and that this step backward will not be limited to areas that Washington prefers. Havana might look for more ambitious ties with alternative partners, including both allies and competitors of the United States. Internally, rather than slow down, Cuba’s transformation should accelerate. The legitimate needs of the Cuban people should not be postponed in the face of this new adversity. The pace of Cuban reform should never be tied to external threats. As for the Cuban people, they will once again tell all who will listen that they themselves – not those on the other side of the Florida Strait – represent their interests. President Trump has empowered a small group of Cuban Americans to speak for people in Cuba whom they do not know, at the cost of sacrificing U.S. prestige and an array of its national interests. The absurd has become the accepted norm in American politics.

*Ricardo Torres is a Professor at the Centro de Estudios de la Economía Cubana at the University of Havana and a former CLALS Research Fellow.

Cuba: Preparing for President Trump

By Fulton Armstrong

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Photo credit: Day Donaldson / Flickr / Creative Commons

Cubans are already calibrating their expectations for relations with the United States under President Trump – hoping the normalization process does not unravel but preparing for a return to a sanctions-based policy from Washington.  Conversations in Havana reveal deep concern that the President-elect’s tweets and statements about Cuba, Mexico, and Latinos in the United States will translate into efforts to slow, stop, or reverse normalization.  The past two years of dialogue have focused on mutual interests, without ignoring remaining differences between capitals but not allowing them to blot out hopes of mutually beneficial cooperation.  Cuba will interpret a return to bombastic rhetoric, exaggerated conditions to reach a “deal,” and the pressure tactics of the pre-Obama era as a sign of U.S. willingness to put bullying a small neighbor eager for improved ties ahead of its own national interests.

Cubans present the stiff upper lip in conversations and, not surprisingly, defiantly note that they’ve already survived decades of U.S. pressure, but their disappointment is palpable.

  • Most concerned are entrepreneurs in Cuba’s small but growing private sector, who depend on investment from U.S.-based relatives and friends. More than 100 Cuban private businessmen wrote a letter to Trump last week urging restraint.
  • Nationalism has precluded Cubans from saying that normalization would be a major driver of their long-promised economic reforms, but few deny that improving ties with the United States would eventually present Havana important opportunities. U.S. retrenchment will remove important incentives for the government to move ahead with its reform strategy.
  • Rumors about tensions between Cuban proponents of normalization and conservative opponents may have some merit, but Cubans across the spectrum will close ranks if Trump gets aggressive.

Cuba’s reactions to Trump’s election, including President Raúl Castro’s congratulatory message to him, so far suggest that it will hold its tongue and resist being provoked.  A U.S. return to full-bore Cold War tactics would not pose an existential threat to Cuba, even considering the country’s difficulties dealing with unrelated problems such as the crisis in Venezuela.  Popular reactions to the passing of Fidel Castro last month are being construed as evidence of residual political legitimacy for the government and support for it to deliver on promised improvements.  Moreover, Cuba’s progress in normalization; its effective contribution to the Colombia peace accord; its new political dialogue and cooperation agreement with the European Union; and the recent Havana visit of Japanese Prime Minister Abe have boosted the country’s international image – and blame for collapse of normalization will surely fall solely upon the United States.  However difficult it will be for the proud people of Cuba to resist rising to whatever bait the Trump Administration throws its way, showing forbearance in the bilateral relationship and moving “without hurry but without pause,” as Raúl Castro said, with its national reform plan would protect the investment that Cuba has already made in normalization.

December 19, 2016

Implications of Fidel’s Passing

By Fulton Armstrong

KODAK Digital Still Camera

As a tribute to Fidel Castro, flowers and posters adorn the gates outside the Cuban Embassy in Buenos Aires. / Gastón Cuello / Wikimedia / Creative Commons

The death of Fidel Castro last Friday night has drawn largely predictable reactions from largely predictable quarters, but the analysis of the meaning of the comandante’s passing that matters most belongs to the Cuban people.  History may ultimately absolve Fidel of his most egregious excesses and errors over the last six decades, but Cubans are the ones who will decide which parts of his revolution to keep – and which to reject or allow to fade away.  By all accounts, Cubans want to preserve some of the gains of the revolution, including their sense of national dignity and some social benefits, while seeking a vastly improved living standard.  But no one can claim to know exactly what “the people” want – and how they want to achieve it.

  • The economic reforms that President Raúl Castro launched years ago have been halting and hampered by policy contradictions and bureaucratic obstacles rooted in elites’ fears of losing political control. Processes like the 7th Party Congress’ Conceptualización have been so muted as to undermine change and breed cynicism among the population.  Raúl and his team have a roadmap that, while as unorthodox as ever, will move the economy in the right direction.  Fidel’s departure is a signal that the old-timers, perennially blamed for slowing change, represent an eventually diminished threat.  The next generation of Party leaders knows full well that their legitimacy is going to have to come from concrete results, especially improving living standards, and it needs to move ahead with the hundreds of lineamientos, laws and regulations that have already been approved.  It’s their own plan, and the excuses for non-implementation of at least the easier measures are getting thin.  Major reforms such as unifying exchange rates will be a big challenge, as for any country, but the new team at some time will have to bite the bullet.
  • On the political side, Raúl lags even farther behind. Fidel’s passing puts a lot of pressure on him to flesh out his plan to step down as President in 15 months (a commitment that so far seems solid).  Some of Raúl’s actions indicate a desire to build institutions, perhaps even the National Assembly as it moves back into the Capitolio this month; improve decision-making processes; and reduce party intervention in day-to-day matters.  But his handover of power to a new generation won’t work if his policy team stays in the shadows forever.  His vision entails them learning how to do politics among themselves and, increasingly, with the Cuban people – which implicitly entails respect for the plurality of legitimate views across Cuban society.  The Cuban people have shown they’ll not form lynch mobs the moment political space opens up.

Cubans can find support for their evolutionary change in every corner of our Americas, except perhaps one.  Reactions throughout Latin America and the Caribbean differed in tone and effusiveness, but they uniformly showed respect for the deceased comandante and support for the Cuban people.  Regional leaders called him a “giant in history” and “a leader for dignity and social justice in Cuba as well as Latin America” and the like, while one merely tweeted “condolences to the Cuban government” and had staff explain he’d miss the funeral because the logistics of flying to Cuba were “not easy.”  But the region’s best wishes for Cubans to find a stable path from a Castro-dominated past into the future that they collectively – in the Party and “the people” – wish to find were strong.

The outlier is, again, the United States.  President Obama and Secretary Kerry’s messages were statesmanlike and consistent with Washington’s sensitivity toward any country in mourning even if it has different interests and values.  President-elect Trump took a different approach.  His condolence statement focused on issues from the past and his affiliation with combatants from the Bay of Pigs invasion who tried to oust Castro in 1961 and endorsed his own candidacy last month.  He tweeted that he will “terminate the deal” of normalization if Cuba is “unwilling to make a better deal for the Cuban people, the Cuban-American people, and the U.S. as a whole.”  Obama’s staff prematurely declared normalization “irreversible,” and Trump may be equally premature in threatening to reverse it.  Cuba’s changing on its own, and Fidel’s passing will probably give change on the island, if not in Washington, a push.  Efforts to return to a Cold War posture would probably put Cuba on the defensive and slow its transition processes – but not even Fidel could stop the march of time.

November 29, 2016

Cuba: Time to Move Ahead with Reforms

By Ricardo Torres*

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Oil drums and a tobacco curing hut near Viñales, Cuba / Adams Jones / Flickr / Creative Commons

The economic challenges that Cuba currently faces probably do not signal the beginning of a new Período Especial – the profound crisis Cuba experienced in the 1990s – but they are a painful reminder of the country’s chronic structural problem: the inability to generate enough hard currency to develop the economy and the failure of efforts to overcome that obstacle so far.  The immediate predicament was caused by a combination of internal and external factors, including the Venezuelan crisis and the low prices for certain Cuban exports.  (Ironically, oil byproducts from a refinery in Cienfuegos, which Cuba jointly owns with Venezuela’s PDVSA, have become a leading export.)  Venezuela is affecting income from services that Cuba sells there (in particular that of medical doctors) as well as a drop in the supply of oil products, which has covered about a half of Cuba’s needs.  This has placed extreme stress on Cuba’s external finances and forced a significant economic adjustment.  The government has imposed restrictions on energy consumption and a reduction in imports and investments – with important recessionary effects on an economy that desperately needs growth.  The energy rationing has fueled fears that the country could repeat the deep shortages of the early 1990s and again experience one of the most powerful symbols of that period: blackouts.

The situation is serious, but a crisis on the scale of the Special Period does not appear to be on the horizon.  Cuba today has a more diversified economy and produces a significant portion of its own energy, and the majority of the population has other sources of income to cushion themselves during bad times.  Most creditors and suppliers have shown confidence in their ability to move ahead.  In July, important contracts were announced for French companies to expand and operate Havana’s airport, which has been overwhelmed by the increase of international visitors (one of the few bright spots in the economy this year) in tandem with the improvement in relations with the United States.  Early this month, Cuban officials made presentations to firms from around the world on the government’s timely interest in renewable energy.  They emphasized the great opportunities that exist, not just current problems.

Once again, a close partner’s difficulties have put Cuba in a bind – too many times in too short a period.  Moreover, these problems arise at a politically sensitive moment.  Cubans are discussing the new model and development strategy through 2030, and – while Cubans are expecting results after six years of reform – President Raúl Castro has little time remaining in office.  The current complications can further delay essential monetary and exchange reforms.  Cuba needs to fix its foreign trade to supply oxygen for dynamic activities, such as its booming private sector.  Its development potential can’t rely just on its mystique as la Perla del Caribe.  Today’s challenges are an opportunity to remove the obstacles to changes that already have been announced, such as by accelerating the heretofore slow and ineffective implementation of agreed policies on foreign investment.  Some multilateral financial institutions can help, but Havana’s recent agreement with the Corporación Andina de Fomento (CAF), while a positive signal, is not enough.  The short-term answer is clear:  Only a combination of structural measures can guarantee that this latest economic crunch will be the last.

September 12, 2016

*Ricardo Torres is a professor at the Centro de Estudios de la Economía Cubana at the University of Havana and a former CLALS Research Fellow.

Canada-Cuba Relations Poised for Progress under Prime Minister Justin Trudeau

By John M. Kirk*

Cuba Canada

Photo Credits: Wisegie/ Flickr / Creative Commons, Pixabay / Creative Commons

After a decade of ignoring Cuba under the government led by Stephen Harper, Canada is on the cusp of an era of a significant improvement in bilateral relations with the island.  Many constants supporting this longstanding relationship remain: Canada, along with Mexico, was the only country in the Western Hemisphere not to break relations with revolutionary Cuba in 1962; Pierre Trudeau was the first leader of a NATO country to visit Cuba (1976) and developed a strong friendship with Fidel Castro (who was an honorary pall-bearer at his funeral); Canadians make up the largest tourist group (1.3 million a year) there; and the largest single foreign investor in Cuba is the Canadian firm Sherritt International.

Justin Trudeau, elected prime minister in October 2015, has undertaken several significant foreign policy initiatives, mainly in Asia and Europe.  Steps to improve relations with Cuba have been taken slowly, but are noticeable.  In May Cuban Foreign Minister Bruno Rodríguez visited Ottawa and Quebec City, while Canada’s Minister of Tourism Bardish Chagger attended the International Tourist Fair in Havana, at which Canada was the “invited country of honor,” reciprocating an earlier visit by her counterpart.  In December the Canadian Senate held a special session to celebrate the 70th anniversary of diplomatic relations.  Canada has been invited as the country of honor to the International Book Fair in Havana, in March 2017, and it is rumored that Trudeau will shortly visit Cuba.  Significantly, the gradual improvement of bilateral relations is due mainly to Canadian initiatives, and not to developments in the U.S.-Cuba relationship.

  • Investment and trade, however, have not kept up with diplomatic initiatives. Annual bilateral trade remains about $1 billion, mainly because of uncertainty over Cuba’s economy.  Canadian business has yet to take advantage of its privileged relationship, concerned with existing U.S. legislation and the looming wave of U.S. investment once the embargo is lifted.

After a decade of neglect, Canada and Cuba have the potential to rediscover their deep-rooted ties.  Trudeau’s willingness to work with Cuba and his diplomatic initiatives were unthinkable under the Harper government.  A complicating factor for business has been the arrest and imprisonment of two Armenian-Canadian entrepreneurs, found guilty of corruption.  Canadian civil society ties remain strong, with Canada making up 43 percent of tourists to Cuba.  Again, however, concern exists at how Canadian tourists face skyrocketing prices when Americans are allowed to visit the island.  In sum, Canada-Cuba relations are at this point characterized by political commitment to improve ties, largely untapped commercial potential, and anxiety about the ramifications of closer U.S. ties with Cuba.  The big question is whether Canadian trade and investment will provide the energy to propel relations beyond their special past status into a new era of collaboration.

August 8, 2016

*John M. Kirk is Professor of Latin American Studies at Dalhousie University in Canada.  He is the author/co-editor of 16 books on Cuba, and also works as a consultant on investment and trade in Cuba.

Cuba: Implications of U.S. Tourism

By Emma Fawcett*

Tourists on beach in Cuba

Photo Credit: Emmanuel Huybrechts / Wikimedia / Creative Commons

U.S. regulations still technically ban tourist travel to Cuba by U.S. citizens, but the Obama Administration’s policies have already spurred significant growth in visitor arrivals to the island – with implications for Cuba and its Caribbean neighbors.  Over the last year, Cuba has experienced a 17 percent increase in total visitors, and a 75 percent increase in arrivals from the United States since Washington expanded the categories of permitted travel and, according to observers, relaxed enforcement.  An agreement to begin commercial airline operations between the two countries promises even more travel.  Other elements of the embargo continue to complicate U.S. travel: most U.S.-issued credit cards still do not work on the island; phone and internet connections are limited; and visitors often face persistent shortages of food items, consumer goods, and hotel rooms.  But the surge almost certainly will continue.

The onslaught of U.S. tourists challenges the Cuban tourism industry’s capacity.  Cuba has one the lowest rates of return visits (less than 10 percent) in the Caribbean; on the other islands, 50 percent to 80 percent of tourists make a return visit.  It has serious weaknesses:

  • While Cuba’s unique appeal may draw in millions of first-time visitors, the still relatively poor quality of service apparently discourages tourists from making the island a regular vacation spot. Sustaining arrivals requires higher marketing costs.  Average spending per visitor, moreover, has been on a fairly steady decline since 2008.
  • About 70 percent of Cuba’s tourists come for sun-and-beach tourism – a sector under state control – but private microenterprises have already demonstrated more agility in responding to demand than the state-owned hotels or joint ventures. The government reported last year that 8,000 rooms in casas particulares, or bed-and-breakfasts in Cubans’ homes, were for rent, and the number is growing steadily.
  • Cuba’s “forbidden fruit” factor may have a limited shelf life as visitors sense the imminent end to Castroism and the arrival of McDonalds, Starbucks, and their ilk. Questions remain about how long Cuba’s current environmental protections will continue when tourist arrivals increase.  Nicknamed the “Accidental Eden,” Cuba is the most biodiverse country in the Caribbean because of low population density and limited industrialization.  But rising visitor arrivals (and the effects of climate change) are likely to increase beach erosion and biodiversity loss.

Ministers of tourism in the other Caribbean countries have downplayed fears about competition from Cuba, but their optimism is sure to be tested.  A successful Cuban tourism sector could conceivably spur region-wide increases in visitor arrivals, but it could also cause other Caribbean countries to lose significant market share.  The official Communist Party newspaper, Granma, has suggested the government’s goal is to almost triple tourist arrivals to 10 million per year.  President Danilo Medina of the Dominican Republic, the most visited country in the region (at about 5.5 million tourists a year), has also set a goal of reaching 10 million arrivals by 2022 – setting that country to go in head-to-head competition with Cuba.  Jamaica, the third most visited country in the region, has instead pursued a multi-destination agreement with Cuba, designed to encourage island-hopping and capitalize on Cuba’s continued growth.  Previous attempts at regional marketing and multi-destination initiatives have had mixed success.  But as Cuba’s tourism sector continues to expand, Caribbean leaders – in what is already the most tourism-dependent region in the world – undoubtedly sense that Cuba is back in the game and could very well change rules under which this key industry has operated for the past six decades.

July 25, 2016

*Emma Fawcett is a PhD candidate in International Relations at American University.  Her doctoral thesis focuses on the political economy of tourism and development in four Caribbean case studies: Haiti, Dominican Republic, Cuba, and the Mexican Caribbean.

Trumping GOP Resistance to Strengthened Ties with Cuba

By Eric Hershberg

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Nighttime on the Malécon in Havana, Cuba. Photo credit: William Beem / Google Images / Creative Commons

One wild card on the horizon in the normalization of U.S.-Cuba ties looks unlikely to materialize.  As pointed out in several CLALS publications (such as here and here), ever since Presidents Obama and Castro announced on December 17, 2014, that they intended to improve relations, there has been a sense of uncertainty regarding whether their successors might roll back the advances they make.  This was particularly so when several Republican politicians seeking their party’s presidential nomination campaigned against President Obama’s “coddling” of the Cuban Communists and his “unilateral concessions” to Havana.  Marco Rubio (Florida) and Ted Cruz (Texas) – two of the Cuban-Americans in the U.S. Senate –made particularly aggressive statements indicating an intention to reverse all or parts of the Obama administration’s executive actions affecting Cuba policy, which, unlike legislation, can be reversed by a subsequent administration.  But they have dropped out of the race as presumptive nominee Donald Trump defeated them and former Governor Jeb Bush, whose Florida political base, family background, and public statements also indicated opposition to normalization.

Trump and the leading Democratic candidate, Hillary Clinton, have very significant policy differences on many issues, but apparently not on Cuba.  Clinton in her memoirs about her tenure as Secretary of State, like Trump in his public statements, appears inclined to sustain the current direction of Washington’s engagement with Havana (although Trump claimed last year that “we should have made a better deal”).  The two likely nominees share noteworthy characteristics, including, remarkably, that they are the least popular candidates that either major party has nominated since polling data have been collected. Advocates of full normalization cannot take either candidate’s leadership on the issue for granted. Clinton’s challenger, Senator Bernie Sanders, has pushed her to the left on some domestic issues, but recent press profiles on her indicate that she remains wedded to a hawkish approach to foreign policy.  The endorsement of several key Washington Neo-Conservatives further suggests she could swing to the right on foreign policy matters.  On the other hand, Trump’s zigzagging on Cuba – 15 years ago he was a staunch proponent of the embargo – and his impulsive decision-making style leave open the possibility that he also could reverse Obama’s executive actions and call on the Congress to keep embargo legislation unchanged.

Although mistakes can occur and various wildcards can slow, or even break, the current momentum, the twists and turns of the U.S. primary election season seem to have diminished substantially prospects that a new President sworn in next January would significantly change Obama’s winning formula on Cuba.  Clinton will have no incentives to abandon a policy that she takes some credit for promoting.  Trump has, if anything, proven that he revels in taking on GOP orthodoxy – and will presumably continue to do so on Cuba policy.  His sympathies align much more clearly with the pro-business Chamber of Commerce, an aggressive opponent of the embargo against Cuba, than with the ideologues on the right of his party, and he will give a green light to the many members of Congress who want full trade with and free travel to the island to change the law.  Concerns that a new U.S. president could reverse Obama’s executive actions on January 20, 2017, can now be assuaged, and Congressional proponents of lifting the embargo likely will have time to build momentum to pass legislation rendering the executive measures moot.  One can imagine that the Donald’s criteria of success for Cuba policy begin with the glare of a gaudy neon Trump sign on a casino along the Havana Malecón, but it’s reasonable to wager that the Cuban government will negotiate a better deal.

May 31, 2016

 

Cuba: Raúl Clarifies the Lack of Clarity on Future

By Fulton Armstrong

raul pcc congress

Photo Credit: Alexandre Seltz and Sarumo74 (modified) / Google Images / Creative Commons

The report that Cuban President Raúl Castro delivered to the 7th Party Congress last weekend walked a tightrope between pressing harder for change – embracing the importance of the small, emerging private sector – and reassuring party conservatives that the basic tenets of the revolution will not be touched.  He reiterated his commitment to step down in 2018 and promote younger cadre, but he left unclear what he proposes the Cuban system look like in the future.  He defended his decision to normalize relations with the United States, but used Washington’s continuation of the embargo and “democracy promotion” and immigration policies as a rationale for not letting down the Party’s guard.  Among key points:

On Conceptualización.  Castro said this Congress was basically to give “confirmation and continuity” to policies set five years ago to update Cuba’s economic and social model,  but it kicks off a process of consensus-building around a conceptualización, which he said “outlines the theoretical bases and essential characteristics of the economic and social model that we aim for as result of the updating process.”  Private property is a major topic, and Raúl sought to reassure the party that respect for it does not mean – “in the slightest bit” – a return to capitalism.

On reforms approved previously.  The road has been difficult, he said, held back by “an obsolete mentality that gives rise to an attitude of inertia and an absence of confidence in the future.”  He referred to the foot-draggers as “having feelings of nostalgia for other, less-complicated moments in the revolutionary process,” such as when the USSR and socialist camp existed.  But he insisted that the reforms have continued advancing at a steady pace – “without hurry but without pause.”

On upcoming reforms.  Castro talked more about what will not happen rather than any new vision.  He firmly ruled out “shock therapies,” and he said that “neoliberal formulas” to privatize state assets and health, education, and social security services “will never be applied in Cuban socialism.”  Economic policies can in no case break with the “ideals of equality and justice of the revolution.”  But he confirmed that one of the potentially most disruptive reforms – unifying currencies and exchange rates – must be done as soon as possible to resolve and many distortions.  On foreign investment, he called on the party “to leave behind archaic prejudices about foreign investment and to continue to advance resolutely in preparing, designing, and establishing new businesses.”

On Cuba’s economic model.  Castro acknowledged “the introduction of the rules of supply and demand” and claimed they didn’t contradict the principle of planning, citing the examples of China and Vietnam.  “Recognizing [the role of] the market in the functioning of our socialist economy,” Castro said, does not imply that the party, government, and mass organizations stand by and watch abuses occur.

On private and state enterprises.  He said the “non-state sector” – which includes “medium, small, and micro-enterprises” – is providing very important goods and services, and expressed hope for its success.  This sector will continue to grow, he said, “within well-defined limits and [will] constitute a complementary element of the country’s economic framework.”  Castro also called for greater reform efforts to strengthen the role of – and, simultaneously, the autonomy of – state companies, telling managers to overcome “the habit of waiting for instructions from above.”    He noted that the creation of cooperatives outside agriculture “continues in its experimental phase,” with some achievements and shortfalls.

On U.S. policies and intentions.  Castro criticized Washington’s efforts to drive political change in Cuba, which he called “a perverse strategy of political-ideological subversion against the very essence of the revolution and Cuban culture, history, and values.”  He said, “We are neither naive nor ignorant of the desires of powerful external forces that are betting on what they call the ‘empowerment’ of non-state forms of management as a way of generating agents of change in hopes of ending the revolution and socialism in Cuba by other means.” Castro said that U.S. officials recognize the failure of past policy toward Cuba but “do not hide that the goals remain the same and only the means are being modified.”

Rhetoric about forever rejecting capitalism (and multi-party democracy) is standard, especially for a Party event meant to assuage anxieties of conservative factions reluctant to give up their familiar, if failed, models.  The re-election of 85-year-old Vice President Machado Ventura is another sop to the aging right as the country inches each day to its biologically imposed transition, as Fidel Castro made explicit in his closing remarks.  The pace of change in Washington is also slow in some areas, particularly the embargo and the Administration’s “democracy promotion” strategies,  but pro-normalization voices cannot be faulted for lamenting that Cuba could more effectively influence U.S. policy through simple regulatory measures encouraging business deals that will give momentum to embargo-lifting initiatives in the U.S. Congress.  All politics is local, however, and both governments seem content holding off on changing their paradigms for now.

April 21, 2016

Spain: Too Distracted to Play in Latin America?

By An Observer*

Rajoy Latin America

Photo Credit: La Moncloa Gobierno de España and Heraldry (Modified) / Flickr & Wikimedia / Creative Commons

Spain’s political crisis and problems facing the European Union have undermined Madrid’s ability to pursue interests in Latin America at a time of new opportunities.  Amidst countless months of lameduck government and the failure of either the Partido Popular (PP) or the Partido Socialista (PSOE) to form a government, the country is also tied in knots over corruption scandals, including some touching a Cabinet member and the royal family, and Cataluña’s persistent challenges to central authority.  Even before the current mess, Prime Minister Rajoy had shown only modest interest in Latin America, and King Felipe hadn’t yet demonstrated the mettle of his father, who once famously told Venezuelan President Chávez to shut up at an Ibero-American Summit.  Adding to Spain’s distractions are a series of EU challenges, ranging from refugee crises to terrorism and the Mediterranean countries’ debt overhang.  Spanish elites, who remain committed to the EU vision, are seized with concerns about Brexit, the UK’s flirtation with withdrawal, and perplexed by the absence of a renewed integration project.

Madrid’s declining role coincides with changes in Latin America that would normally grab its attention.  President Obama and Raúl Castro’s historic normalization of diplomatic relations has opened the door to at least one major U.S. hotel firm signing contracts to refurbish and manage several Cuban hotels – an industry in which Spain previously had extraordinary advantages.  Having played “good cop” with Cuba for many years, compared to Washington’s “bad cop,” Madrid’s future role on the island is at most uncertain.  The election of market-friendly President Macri in Argentina, where the previous government nationalized a Spanish energy company and adopted other policies causing bilateral estrangement, also represents an opportunity for Spain.  The near-completion of peace talks between the Colombian government and guerrillas should be the crowning jewel of a foreign policy in which Spain made a strong political investment early on, but Madrid has receded to the role of bit player.  At a time that Latin Americans continue to espouse support for CELAC and other regional organizations that exclude Spain (and the United States), Spain-sponsored Cumbres Iberoamericanas since 1991 have – even more than the U.S.-sponsored Summit of the Americas – lacked dynamism and produced little as the beacon of the Spanish transition was dying down

By turning inward, Spain risks losing what remains of its special cachet as Latin America’s link to Europe and as a country that made a successful transition to democracy with inclusion, human rights, vibrant media, and increasing transparency.  Its political capital in the region is running low, and budgetary constraints have diminished its aid budgets (from 0.5 percent of GDP to 0.13 percent).  But opportunities remain.  Big Spanish companies – Telefónica, Banco Santander, BBVA, Repsol, and others – and numerous mid-sized firms have shown interest in Latin America.  Cuba’s reluctance to embrace U.S. ties too tightly and too fast gives Spain important space to play a role if it wants.  Moreover, Spain’s diplomatic skills, critical for Central America’s peace processes and elsewhere, could still be a positive force in that subregion.   If it weren’t for former Spanish Prime Ministers’ contradictory roles in Venezuela, where U.S. baggage undermines Washington’s approach to political, economic, and security problems, Spain could be active there too.  But the Prime Minister and his cabinet have not given the Foreign Ministry the green light to get more deeply involved.  It’s not too late for Spain to turn things around and get back into the game in Latin America.  For that to happen Spain needs more consistent governance.

April 18, 2016

* The writer is long-time non-academic observer of Spanish foreign policy in Latin America.

President Obama’s Visit to Buenos Aires: An Important Gesture

By Katherine Hite*

Parque de la memoria Argentina

Parque de la Memoria, Argentina. Photo Credit: Jennifer Yin / Flickr / Creative Commons

While most eyes are on U.S. President Obama’s historic visit to Cuba, the timing and agenda of his follow-on travel to Argentina – while controversial – also is a significant opportunity for the United States to burnish its image in Latin America.  Obama arrives in Buenos Aires on the 40th anniversary of Argentina’s military coup d’etat, marking a brutal period of systematic human rights violations in which the United States lent tacit support.  In an important attempt to ameliorate the controversy over his timing, Obama will be delivering a cache of declassified documents on both what the U.S. knew regarding the 1976-1983 repression and on the green light that Secretary of State Henry Kissinger gave the dictatorship’s dirty war against political opponents during the final year of the Ford presidency.  In addition, the President will visit the Parque de la Memoria, site of a memorial to the thousands of victims of the military regime.  He’d expressed interest in a visit to the ex-Navy Mechanics School (ESMA), notorious former clandestine detention site where an estimated 5,000 Argentines were imprisoned, 90 percent of whom were murdered, but political sensitivities in Buenos Aires precluded it.

Argentina has pioneered efforts to come to terms with the past, from prosecuting and jailing former military officers guilty of violations, to “recuperating” former clandestine detention centers, where citizens were tortured, executed, and made to “disappear.”  Human rights activists have converted several of these former centers, such as the ex-ESMA, into spaces to remember and to educate the public with a message of accountability and of “never again.”  Some memory sites also seek to connect human rights violations of the past to ongoing violations, including police brutality and the abuse of the incarcerated, as well as to present-day struggles for social justice.  Argentine school children learn about their past and study the Universal Declaration of Human Rights.

It is an important moment for the U.S. president publicly to recognize the U.S. historic role in Argentina’s tragic past – and for Argentines to show Washington, itself accused of torture and clandestine detention in recent years within its “War on Terror,” that such abuses can never be tolerated and that perpetrators must be brought to justice for a democracy to be healthy and stable.  Countries throughout the region, including Chile, Uruguay, Peru, Colombia, El Salvador, and Guatemala, have similarly created memorials and museums of memory.  Chile’s Museum of Memory and Human Rights gets over 10,000 visitors a month.  It houses a large permanent display documenting the 1973-1990 dictatorship, and like the ex-ESMA, opens its spaces to human rights organizations, artists, theater groups, and others for workshops, plays, movie series, and more.  In El Salvador, the Museum of the Word and the Image sponsors an exhibit on the roots of the country’s civil war as well as memories of the suffering and resistance.  It has also sponsored exhibits on Salvadoran migration to the United States during the war and connects past to current violence, both within El Salvador and in close relation to the United States.  Together these efforts invite acknowledgment, reflection, and dialogue.  President Obama’s activities in Argentina, like President Clinton’s apology in Guatemala for the U.S. role in past violations in that country, are an important gesture that, within a broader U.S. commitment, could help facilitate a less tarnished image for Washington in Latin America along with his historic shift in policy toward Cuba.

March 21, 2016

* Katherine Hite is professor of political science at Vassar, with special interest in Latin American politics, social movements, and the legacies of violence for governments and societies throughout the Americas.