Throughout much of its history, Cuba was wealthy and much fought over. Havana’s wealth was protected by four main fortresses and the Morro Castle, the imposing guardian at the entrance to Havana's harbor. Cuba's economy, then based on sugar, slaves, and trade between the New and Old Worlds, flourished.
Before the Spanish set foot on the island of what is now Cuba, three Indian tribes inhabited different parts of the country. The Siboneys in the east, the Guanahatabey in the west and the Tainos in the central region. The two Arawak groups—the Siboneys and Tainos—lived in relative peace before the Spanish arrived.
There is no record of the language the Indians spoke, but many of their words were introduced into the Spanish language. The word Cuba is thought to have come from the Taino word for "center of the island." Hamaca (hammock), tabaco (tobacco), cigarro (cigar), huracán (hurrican), canoa (canoe) and barbecue are all words of Indian origin.
On October 27, 1492, Columbus discovered Cuba. However, it was not until almost 20 years
The Spanish in their quest for gold and riches decimated the Indian population. Those who were not slaughtered by the Spanish or didn't die from the diseases introduced by the Europeans, were forced into slave labor and worked to death. By 1620, as a result of the Spanish conquest, nearly all of the Indians had been wiped out.
In 1514 Havana was founded. The Spanish soon realized this city’s strategic importance. The city was heavily fortified to protect against the incursions of pirates, who raided the island quite frequently and preyed on the treasure-laden ships. All the booty and gold from the New World was sent to Spain via Havana. In the meantime, sugar and tobacco were first cultivated commercially. These two crops eventually became a great source of wealth for the country.
The 17th century was a time of growth in Cuba, despite incessant attacks by pirates. Piracy continued to be a problem until the second half of the eighteenth century, when it became more difficult for pirates to make a living because gold was being depleted in Mexico, Central and South America, and convoys and cities had become well protected.
During the 18th century, Havana was briefly occupied by the English. Towards the end of the century the English introduced slaves from Africa for sugar plantation work. Cuba’s economy grew at this time because of increased sugar and tobacco production.
As a result of the wars for independence that swept Latin America, Spain lost most of its colonies during the first two decades of the 19th century. By 1824 Cuba and Puerto Rico were Spain’s only remaining colonies in the New World.
Around the middle of the century, general Narcisco López and Carlos Manuel de Céspedes both led ill-fated attempts to secure Cuba’s independence. In 1895 José Martí organized a new rebellion, but was killed. Despite having interest in Cuba, the U.S. remained neutral in the Spanish-Cuban War. However, when an American battleship, the Maine, was mysteriously sunk in Havana Bay, the U.S. government decided to intervene. This was perfect timing because during the 19th century, four U.S. presidents had tried to buy Cuba from its colonial master, Spain.
The Spanish-American War only lasted a few months. On August 2, 1898, Spain relinquished sovereignty over Cuba, and the U.S. ‘s long role of involvement in Cuba’s affairs began. Hence, the stage was set for the U.S. to basically run Cuba for the next fifty years.
It seems that the country has really never to stand on its own two feet and always maintained an uhealthy relationship and dependence on outside countries: colonial Spanish, the U.S. which virtually owned the country by the 1950s, the Soviet Union and most recently Venzuela. Ironically, the Cubans see the U.S. as a source of income again.
In 1902 a Cuban republic was established, with the U.S. reserving the right of intervention in Cuba in accordance with the terms of the Platt Amendment. This agreement also established the U.S. naval base at Guantánamo Bay.
A series of rulers followed, their regimes plagued by corruption and tumultuous politics. From 1925-1933 Gerardo Machado, who was supported by the U.S., ruled Cuba as a dictator with an iron fist. Discontent grew and Machado’s downfall was brought about by Fulgencio Batista in 1933.
Batista soon became as corrupt as his predecessors. Under his rule the wealth was concentrated in very few hands with the rich controlling all of the positions of power. The majority of the people lived in poverty. After ruling until 1944, Batista was defeated in an election and went to Florida. In 1952 he returned to stage a successful coup, suspended the constitution and established a dictatorship. During his reign, Cuba became the playground of the Americans, moral decadence was rampant and many businesses were Mafia-run. The American corporation, United Fruit Company practically ran the country at this time.
The mob first established a foothold in Cuba during the Prohibition years. During this time the country had the dubious distinction of being the prostitution capital of the Western hemisphere. Cuba also became known as the "Las Vegas" of the Caribbean. Against this background, lawlessness and corruption flourished. Soon many Cuban people became increasingly fed up with corruption and opulence on one side and poverty and injustice on the other side. People began to feel despair under Batista’s harsh dictatorship and the seeds of rebellion began to grow.
On July 26th, 1953, a band of young men led by Fidel Castro unsuccessfully attacked the Moncada barracks in Santiago. This event was considered the beginning of the Cuban Revolution. After a long fight, Castro’s guerrilla force triumphed and Batista fled the country on January 1, 1959.
The Cubans who fled Castro’s revolution for the safety of the U.S. probably assumed that they’d be able to return in a few years at the most.
It must be pointed out that before Castro took over many Cubans had money, or hope of acquiring it. Cuba's wealth before 1959 was, contrary to Communist propaganda, "not the purview of a privileged few." In 1958 Cuba had a higher per capita income than much of Europe. And Cubans were free to read and think and leave the country whenever they wanted, with their property. More Cubans vacationed in America in 1955 than Americans vacationed in Cuba. Enrique Krauze, writing in the New York Review of Books, noted that before the revolution, one in six Cubans owned a radio; one in 25, a television set. There were 120 newspapers and magazines. A poor nation could not have built Havana's grand, eclectic structures.
The Revolution and the years that followed
The revolutionary government moved towards a state-controlled system. Education was given the highest priority. Today Cuba boasts the highest literacy rate in Latin America—around 95%. Before the revolution, the U.S. virtually controlled Cuba’s economy. Castro quickly nationalized all American businesses. Medical care became free and accessible to all the people.
After 1960 Cuba became less dependent on the U.S. and established strong ties with the Soviet Union. This led to a deterioration of relations with the U.S. and the eventual embargo on trade with Cuba that is still in effect today.
The Bay of Pigs at Playa Girón was a poor ill-fated attempt by Cuban exiles to oust Castro. The defeated exiles came to dominate the U.S. policy and view of Cuba for over 50 years, defining the Cuban people as victims and Castro’s government as totalitarian. The U.S, government virtually pushed Cuba into the arms of the Soviets.
With the deterioration of relations with the U.S. Castro aligned the country with the Soviet Union. Shortly after the world was pushed to the brink of nuclear war with the Cuban missile crisis, triggered by the discovery of Russian missiles just west of Havana.
Washington plotted against Castro in the ensuing years but not too much avail.
The collapse of communism in the Soviet Union and Eastern Europe proved devastating for Cuba’s economy. The country lost most of its subsidies and main trading partners. This coupled with other economic problems led to severe shortages, disruption of the food supply and other hardships. In January 1990, Castro declared that Cuba entered a "Special Period in time of peace." Initially, the government took desperate measures like scheduling blackouts that were the rule rather than the exception and rationing fuel to conserve oil. All sectors of the economy suffered as a result. During this time bicycles replaced cars, and food rations barely kept Havana's pigeons alive.
By 1994 things began to improve which led to the legalizing dollars and promoting tourism by establishing joint ventures with Canada and such European countries as Spain.
Despite the above measures, the U.S. embargo still remained in force, economic hardships continued and, in 1994 many Cubans, los balseros as the rafters were called, tried to flee the country by raft. Out of desperation there was a reappearance of such capitalistic vices as prostitution. The government had no other choice but to introduce such economic reforms as foreign ownership of businesses and private enterprise.
In 1995 the controversial Helms Burton Act was introduced with the goal of tightening the screws on the embargo. The law stipulated that the embargo was to remain in place until a "transitional government' was established that met U.S. approval. The bill also had a Draconian measure to fine any U.S. citizen up to $50,000 for travelling to Cuba without permission.
However, disparity also began to manifest itself between the "haves and have nots" or those earning dollars and those who didn't. Defections also increased during this period as dissatisfaction grew. Many of Cuba's elite, such as pro athletes seeking lucrative contracts, musicians in search of more freedom and artistic expression, doctors and even a couple of Cuban air force pilots, left the island. Although defection was made more difficult, many Cubans continue to try to flee. One group that fled was a group of Cuban baseball stars. They were granted asylum in Costa Rica and eventually ended up playing major league baseball in the U.S.
The Pope's visit to Cuba in early 1998 would prove to be the first sign of a normalization of relations between the U.S. and Cuba. Some believed that the death of the long-time leader of Miami's Cuban exile community two month's before the Pope's visit and a new generation of younger less confrontational Cuba Americans would eventually helped to soften the U.S.'s hard-line stance against Cuba. The CIA released a report stating Cuba no longer posed any threat to the United States.
At one time it was rumored that President Clinton would seek to have Congress lift the embargo against Cuba since he was a lame duck president and really had nothing to lose. Sadly, his administration was plagued by so many scandals that he couldn't have lifted the embargo even if he had tried.
In early January of 1999 President Clinton did relax the sanctions against Cuba. Many experts interpreted this move as the first step to totally lifting the embargo. For the first time in almost 40 years since the embargo was established, Washington allowed the sale of food and agriculture supplies to non-government entities and expanded cash transfers, thus increasing the number of Americans permitted to send money to their Cuban relatives. The number of direct charter flights from the U.S. was also increased and direct mail service was re-established between the U.S. and Cuba.
In addition, there were cultural and sports exchanges between the two countries. In fact, an exhibition games was held between the Baltimore Orioles and a Cuban all-star team. Some people compared this "baseball diplomacy" to Nixon's "ping-pong diplomacy" which eventually helped normalize relations between the U.S. and China.
Unfortunately, in 2001 George W. Bush adopted hard-line tactics against Cuba. This only caused Castro to react the same way towards the U.S. by cracking down on dissidents. Bush in turn institute new measures like tying to curtail the flow of dollars to Cuba by threatening foreign banks that did business with Cuba. All of this led Cuba to align itself with Venezuela's Hugo Chavéz and caused Castro to ban the U.S. dollar.
On July 31, 2006 Castro became seriously ill and handed over power to his brother, Raúl Castro. Fidel officially retired because of failing health. Nevertheless, his presence still lingers in the background as a symbol of the Cuban Revolution and ideas.
Under Raúl the Cuban government has made some minor changes by slightly loosening its grip on political prisoners and giving its citizens a little more freedom. The case of punk rock artist Gorki Aguila—arrested for "social dangerousness but later slapped with a $30 fine for playing music too loud—was a good sign of a softening hard line against dissidents.
Cubans could now run businesses and own cell phone and personal computers. A state-run self-service department store, with products from the first world was opened for Cubans. Thus, giving the people who could afford it a little more access to new products. All state enterprises began to offer an incentive system whereby employees can earn more if they produce more. Other products made available were car alarms, bicycles, medium size screen TVs and video production equipment.
Raúl also opened tourism to Cubans on the island. Cubans could now stay at hotels that were formerly reserved for foreign tourists. Workers could obtain title to their state owned-properties after a certain number of years of service. The property could now be transferred to their heirs. However, no there was still no real estate market for selling and purchasing of these properties.
Unfortunately, the Bush administration with its failed policy towards Cuba continued playing hard ball with the country and would not normalize relationships with the island until a transition government had been established and more significant changes had been made. Cuba clearly needed to participate actively in the politics of the region but had to accept the rules of the game of the other Latin American countries. Free elections, economic reforms and more respect for human rights would be a prerequisite. If these conditions had been met the U.S. would have probably lifted its economic embargo.
Be assured that eventually this will happen and there will be a plethora of opportunities in Cuba that the author describes throughout this book. The country should also become an incredible place for expatriates to hang their hats and have an exciting life.
One encouraging sign occurred in November 2008 relations between Cuba and the European Union improved. The bloc imposed sanctions in 2003 as punishment for Cuba's imprisonment of more than 70 dissidents. After the sanctions, Cuba refused to accept any European development aid.
Officials from the European Union and Cuba re-established relations, which ended five years of diplomatic tension. Cuban Foreign Minister Felipe Pérez Roque and European development commissioner Louis Michael signed a cooperation agreement.
The talks followed the EU decision in June of 2008 to lift sanctions against Cuba. Since Raul Castro took over the presidency from his brother Fidel Castro earlier that year, the EU worked to encourage democratic reforms on the island.
Obama's victory in 2008 was the first step towards normalizing relations between these two neighbors with such a troubled and complicated past.
At that reporter Francis Robles optimistically stated that year , "Obama will move quickly' to lift Cuban American travel restrictions. On the campaign trail, Obama vowed not just to lift family travel restrictions that force Cuban-Americans to wait three years to visit immediate relatives on the island, but also said he would lift the cap on how much money Cuban-Americans can send to the island. He also indicated he would be willing to meet with Cuban leader Raúl Castro, drawing fire from critics who accused Obama of being naive and weak on foreign policy issues. Obama said he would take away restrictions and establish low-level contacts with Cuba. It would be a change from policies that have given the worst results for 50 years."
It was predicted that Obama would lift all travel restrictions, handing a victory to the Cuban regime, and boosting its government-run travel industry.
Obama’s Latin America foreign policy advisor, Frank Sanchez, said as president the candidate would move quickly within the possible and practical bounds of his authority to lift the family travel and remittances restrictions. Anything more than that, Sanchez told The Miami Herald, would have to wait.
Just like Barack Obama has said, ‘it took us 50 years to get where we are, we’re not going to undo that in five days,” Sanchez said. ``We want to see some concrete steps from the Cuban government. If we saw all the political prisoners freed, if we saw something like that, a strong sign, we could begin considering other things.’‘
“Vicki Huddleston, a former chief of the U.S. diplomatic mission in Havana, predicted Obama’s moves would lead to brisk business in Miami, creating jobs in the travel industry as more flights take off for the island and businesses pop up to handle the flow of care packages. More importantly, she said, the stream of Cuban Americans and their cash in their relatives’ pockets will boost the independence of people on the iand who are now heavily dependent on the Cuban government for their livelihood."
’‘They will be able to buy TVs, computers, medicine and food. They’ll be able to read The Miami Herald online, she said. Allowing families to travel between Miami and Cuba begins to give Cubans a voice, because the Cuban government holds all the strings.”
The University of Miami’s Andy Gomez, of the Institute for Cuban and Cuban-American Studies, said “a migration crisis could be triggered when more Cuban Americans begin to see for themselves the reality their relatives are living in, and start trying to help their families get out."
“The big questions about Cuba were, when would the embargo end and how would that change the country? Commercial ties will certainly lead to commercial development. East Germany, China and Vietnam were all transformed when they transitioned from communist to capitalist economies. But those countries were variations on a theme. Prosperous China and Vietnam are still controlled societies with human rights issues, where as East Germany has been absorbed into democratic West German. For Cubans, uncertainties loomed. Would the coming changes unshackle the island from its dire poverty? Or would those changes enrich an affluent upper class, ripping apart the we’re-in-it-together social pact forged in Cuba’s revolution over the past half century?”
The Big Change
The U.S. Shocked the world on December 17, 2014 that it was going to try and restore normal relations with Cuba after 53 years of isolating the country since the time of the Cold War in 1961. All the ineffectual political policy of the U.S. has really done is bring sadness to both people in Cuba and the U.S. The Argentine pope Francisco played a huge role in bringing Barack Obama and Raúl Castro to see eye to eye. In a personal coup for the pope, it emerged that the Vatican had played a central role in bringing together the global capitalist superpower and the tiny communist island
Diplomatic relations were restored between the two countries. The Obama praised the pope who demonstrated whose desire is to make the world a better place. The pope's influence of the world's leaders was the key factor in brining the two parties together. Obama had stated that the improvement of U.S.-Cuban relations was one of the goals and priorities of his second presidential term.
Soon after Obama took steps to improve communication with the Cuban government contingent upon the release of Alan Gross, an American contractor being held as a political prisoner in Cuba. The first step was a meeting between representatives of the two countries that took place in Ottawa, Canada in 2013. Seven other meetings took place at the same location with the key meeting between the respective delegations with the pope, really was the key step in the negotiations.
Obama stated, “I believe that we can do more to support the Cuban people and promote our values through engagement,” Obama said in remarks delivered from the Cabinet Room. “After all, these 50 years have shown that isolation has not worked. It’s time for a new approach.”
Here are the key terms of the initial agreement:
1. Establishment of diplomatic relations between both countries.
2. Embassies will be re-open in Washington and Havana.
3. More flexible travel restrictions
4. An increase of remittences to Cuba from $500 to $2000 quarterly
5. An increase in commerce and services avail to Cuba
6. Vistors to Cuba can now import up to $400 in goods of which $100 may be tobacco and alcohol
7. Permission to import certain items from Cuba
8. An opening up of the telecommunications system including Internet
What was really behind the change and Cuba U.S. relations?
he economic situation is what was behind this historic agreement. Castro brothers realized that time is running out for them, that there economy was collapsing, during the last 4 years, their economic policies were not working with nearly 20 percent unemployment rate (one of the highest in latin America) and government layoffs. All of this despite legalizing 178 types of private enterprise in which people could work.
To make matters worse Venezuela, who had been Cuba's prime benefactor, was falling apart, in a state of chaos and with little hope of improvement on the horizon. The Castros always had known that the U.S. was the best possible trading partner for them and it only took them 56 years to realize that the socialist economic system didn't work and that capitalism and a free maker based economy was the only realistic solution. Add to this that for a long time the Castro brothers wanted to add to their legacy by improving their image in the eyes world before they die.
Obama, always said that political change would not come “overnight” to Cuba, predicted that Havana would be “cautious” about opening up but that political reform would likely follow economic exchange as well as increased exposure to American culture and Western technology. “Our original theory on this was not that we were going to see immediate changes or loosening of the control of the Castro regime, but rather that over time you’d lay the predicates for substantial transformation,” Obama said.
“The more that they see the benefits of U.S. investment, the more that U.S. tourist dollars become woven into their economy, the more that telecommunications is opened up so that Cubans are getting information, unfettered by censorship, the more you’re laying the foundation for the bigger changes that are going to be coming over time,” he added.
“But Raul Castro is following the path blazed by China or Vietnam, of embracing limited market reforms “without letting go of the political reins,” Obama said.
“I think he’s going be cautious in how quickly he opens things up,” but he recognizes the need for change” driven by an awareness of the weaknesses in his country’s economic and political system,” Obama said.
Cuba will have its own version. Change could be gradual or rapid depending on how the Cuban government manages the transition. Once the embargo is lifted by congress, U.S. banks will set up relationships inside Cuba. That will mean U.S. credit cards will be accepted (one U.S. bank just issued credit cards that can be used in Cuba). American corporations as varied as McDonalds, KFC, Starbucks, the Gap, Disney, Bloomingdale's, Macy's, Hilton, Ritz-Carleton and Starwood will look to find opportunities in Cuba.
What Havana will look like in five years is anyone's guess.
Perhaps the most important development was the announcement that Master Card has removed the block on use of U.S.-issued credit cards in Cuba. The need to carry cash to cover all your expenses while in Cuba has long been one of the biggest pains about traveling there.
Change won’t come over night but as one writer said, “Obama’s efforts and change in policy have begun to nible at the edges of the embargo when will eventually be lifted.”
Cuba has always been a country that has endured centuries of oppression from countries far and near. The embargo and revolution may be slowly dying, however it is still not clear what will take their place
Internet
At the beginning of 2015 Cuba was one of the countries in the world with the lowest number of users of the Internet. ETESCA, the organization which has a monopoly of telecommunications on the island, began to sell WIFI at the end of January 2015. Prior to the announcement Internet access was restricted to some professions like lawyers, journalists or doctors only with government authorization. Prior to the change in the rules Cubans could only get on line in a type of Internet Cafes where the cost was $5.00 per hour. Considering the monthly salary was only $20-$30 dollars monthly very few people could access the Internet. One encouraging sign is that WIFI will be offered in one area of the city of Santiago de Cuba. Users will be able to use tablets, telephones and laptops to get on line at still at a cost of $4.50. As better access become available the price is bound to come down making it more available to a greater number of people.
Part of the agreement reached with the United States is so that telecommunications companies can invest in the infrastructure of the country and the acceptance and the use of credit cards in Cuba. Presently, only a small percentage of the people have access to Internet at present. This tool will eventually lead to more political and personal freedom in the world as Cubans have more contact with the outside world.
On February 9, 2015 Netflix announced its availability in Cuba. The company distributes movies and television series on the Internet. They will offer their services once Internet coverage widens to give more people access and more and more people acquire credit and debit cards to subscribe to the service. With this decision Netflix becomes the first U.S. Company to take advantage the improvement of relations between the U.S. and Cuba after a 50-year hiatus. The monthly cost of subscribing to the service will be $7.99, the same amount paid in the U.S.
What does Trump’s victory mean for Cuba?
It depends if we look at Trumph the businessman or Trump the polititian. Trump is a successful businessman first so he will probably see Cuba in that light and realize that it is not in the interest of the U.S. firms that are currently involved there to reverse Obama’s policies. In fact, in 1998 Mr. Trump researched business opportunities in Cuba despite the restrictions of the embargo. So, the question is whether Trump the businessman or Trump the politician will prevail when it comes to Cuba policy.
As one recent article pointed out, “Since the normalization process began, a Miami-based cruise line has begun to sail to Cuban ports, U.S. telecom companies have established roaming agreements with Cuba, commercial airlines are flying from U.S. cities to Cuba, Marriott has entered into a joint venture to manage some Cuban hotels, and Cuba has become Airbnb’s fastest growing market.”
“A pharmaceutical joint venture is about to begin clinical trials in the United States, other U.S. companies are in various stages of trying to close deals with Cuba and travel to the island by Americans has greatly expanded.”
These ventures and expanded travel were all made possible by executive orders and regulatory changes since President Barack Obama and Cuban leader Raúl Castro began a process of rapprochement on Dec. 17, 2014 and would be affected by any abrupt change in U.S. Cuba policy.
“Changing Cuba policy also would mean we are turning our backs on them,” said Carlos Gutierrez, who served as secretary of commerce under George W. Bush and has traveled to Cuba numerous times since the rapprochement began.
Trump would kill many deals if he reversed Obama’s policy. He won big in the Midwest farm states that want to sell agricultural products to Cuba and are pushing to have a financing prohibition lifted so their products will be more competitive.
Canceling out everything that Obama has done would not be a good thing; it wouldn’t be wise for American business as one businessman pointed out.
A History of 53 years of conflict
January 1, 1959 Fidel and Raúl Castro end the dictatorship of Fulgencio Batista and take power
1951 The Agrarian Reform Act is approved. Large landholders lose their properties and relations with the US begin to deteriorate.
1960 The United States begins a commercial embargo against Cuba
January 3, 1961 the United States and Cuba break off diplomatic relations
April 1961 the Bay of Pigs Invasion takes place to overthrow the Castro regime. It fails and Castro announces the Marixist-Lennist style Revolution
February 3, 1962 The Organization of American States (OEA) orders a total embargo against Cuba
1965 marks the beginning of the Camarioca Exodus which allows 100, 000 people to emigrate for 8 years.
1966 the United States approves a new law whereby any Cuban who reaches the US territory can stay in the country and work.
1980 130 Cubans arrive in the US and the country tightens the Cuban embargo.
1981 President Ronald Reagan increases hostilities towards Cuba
1990 The Cuban government decrees “The Special Period in times of peace” and institutes economic restrictions.
1994 Cuban Balsero (rafters) Crisis begins with 37,000 Cubans trying to reach the U.S. on rafts.
1996 The Helms-Burton Law is passed to punish anyone who doing business with Cuba.
2000 President Clinton authorizes the sale of foods and medicine to Cuba if paid for in cash
2001 President George tries to tighten the embargo against Cuba
2008 Fidel Castro announces his retirement and names his brother Raúl as his successor.
2009 Obama removes restrictions for family members to visit Cuba, for them to send money to their families there and announces a “new beginning” in relations between the two countries.
2010 President Obama makes it easier for U.S. citizens to visit Cuba
2013 Cuba and the U.S. meet to reestablish mail service between the two countries which has been suspended since 1963.
December 17, 2014 as a result to the freeing of Alan Gross and three Cubans incarcerated in the United States, diplomatic relations are restored between the two countries.
