November 2006

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Cuba and Colombia signed an economic cooperation agreement to expand bilateral trade.

Colombian officials told reporters that the agreement presents favorable opportunities to consider Cuba’s export potential, which were described as very competitive, particularly in the pharmaceutical and biotechnological fields.

“Cuba and Colombia have tremendous opportunities in the commercial arena and in the tourism sector, where each nation can complement the other,” said Colombia’s trade minister.

The accord was penned by Cuban Foreign Trade Minister Raul de la Nuez and Colombia´s Minister of Industry, Commerce and Tourism Jorge Humberto Botero, in the presence of Cuba’s Vice President Carlos Lage and in the context of Havana’s International Trade Fair.

Source: ACN

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Cuba and Belgium signed four agreements on November 2 to expand scientific and cultural cooperation relations.

Belgian officials are visiting Havana to attend the Havana International Trade Fair and are heading a delegation of business people, scientists, executives and representatives of several of that country’s institutions.

The documents signed on Thursday are part of a bilateral cooperation agreement in the fields of education and culture between the Cuban National Conservation Center (CENCREM) and the Belgian Royal Institute of Artistic Patrimony.

Source: ACN

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Cuba’s First Vice President Raul Castro appraised the readiness, living conditions and work of the Rescate de Sanguily combat unit in western Cuba Thursday, accompanied by high military chiefs. 

Raul Castro, also Chief of the Cuban Armed Forces received detailed information on the state of the unit from its chief, Brig. Gen. Eliecer Velazquez Almaguer, and reviewed preparations for the military parade for December 2.

That date commemorates the founding of FAR (Revolutionary Armed Forces) and is the 50th anniversary of the landing of the Granma, as well as the date chosen to celebrate the belated 80th birthday of Fidel Castro.

The also defense minister visited classrooms and viewed simulators used for personnel preparation as well as reviewing the effectiveness of communication media trainers.

The FAR minister recommended better utilization of equipment and raised the possibility that more young soldiers could take university courses during service.

Source: PL

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STRATFOR analyzes the situation in Cuba, key points in bold:

Summary

The increasingly fragile health of Cuban leader Fidel Castro has raised the question of how his brother and chosen successor, Raul, will run the country after Fidel’s death. With Raul supported by the economically ambitious old communist guard, which controls the military, continued liberal economic reforms in Cuba are likely. However, this faction could face challenges from an influential group of young revolutionaries with Bolivarian ideals and ties to Venezuelan President Hugo Chavez.

Analysis

In response to rumors of his death, Cuban leader Fidel Castro appeared on television Oct. 29, reading that day’s newspaper. He is clearly still alive, but his increasing frailty highlights what has been on everyone’s mind since Castro handed over power to his brother Raul on July 30: the line of succession.

Lacking Fidel’s charisma, Raul — his chosen successor — will have to give the Cuban people a reason to support him. The most probable option is for Raul, who is 75 years old, to use his military power base to maintain a secure grip on the country and continue the liberalization efforts begun under his brother’s rule. However, Raul faces internal challenges, such as the ideological struggle between the old guard of the revolution and the younger factions of potentially more leftist politicians, who might be able to woo support from unhappy military personnel unless the country’s deeply rooted economic problems are addressed.

Raul’s power rests on the support of the military. As the driving force behind reforming the military into a meritocracy, he secured the armed forces’ loyalty. However, the military is experiencing the same wealth gap as the rest of the country; upper-level officers have accumulated large amounts of wealth from the tourist economy while lower-level servicemen have been forced to survive on their rations. If this does not change, the military could begin looking for alternatives, especially once Raul is gone. One choice might be a group of young politicians with close ties to Venezuelan President Hugo Chavez — nicknamed the “Taliban” for their radically leftist views.

Chavez would be substantially weakened if his Cuban ally’s ideology drifted away from his leftist agenda and anti-U.S. stance. The Venezuelan president has ostentatiously shown his support for Cuba since Fidel fell ill, taking every photo opportunity with the ailing leader and appearing before the world as the heir to the Cuban revolution. Chavez plans to use his close ties to the younger, more radically leftist members of government to increase his influence in Cuba — which could conflict with any inclinations Raul might have to move toward a more open economic model that would include the United States, such as that of China. But Chavez might not be a safe ally; his power is tied to increasingly overspent oil revenues and his illusions of regional support are dissipating.

In the past, Raul has used his position as military leader to initiate violent crackdowns on citizen unrest. But authoritarian domination will not quell the unrest brewing just below Cuba’s surface. This discontent is a result of the economic downturn of the 1990s, during which economic subsidization from the Soviet Union disappeared, plunging the country into economic chaos. In an attempt to generate income, the government opened up the country’s tourist industry to foreign investment. Now, workers in the industry, such as taxi drivers, often make more than doctors. Military commanders are also involved in running the Tourism Ministry and are uniquely situated to make money off the industry. This situation has generated an unequal income distribution that has embittered much of the Cuban population, weakening support for a government people see as increasingly corrupt.

Under Fidel, Raul oversaw government policies that paved the way to a more liberalized economy. He also pursued a subtle detente with the United States. It was Raul, not Fidel, who led the move toward integrating low-level capitalist enterprises into the Cuban economy. Raul has also made quiet attempts to establish contact with military elites in the U.S. government, indicating through back channels that the Cuban military could help with issues of mutual interest such as counternarcotics and immigration control. In 2002, Raul even offered publicly to help the U.S. military by returning al Qaeda members should any escape from Guantanamo Bay. Despite the military insignificance of the offer, it was a notable gesture of political goodwill by a longtime U.S. adversary that shares much of the international community’s disdain for the treatment of U.S. detainees.

Raul will continue the gradual shift in economic activity in Cuba. He will likely seek outside investment in ways that will diversify the economy, moving away from relying completely on tourism as a source of income. Cuba will look to the examples of other countries transitioning from communism, such as Vietnam and China. Further, he will be eager to encourage exceptions in the U.S. trade embargo and thus expand Cuban access to U.S. goods.

Raul’s leadership will face significant challenges, but by maintaining the revolutionary rhetoric and further integrating market-based reforms, Raul will attempt to ease Cuba into this transition. Change will not come overnight, but once Fidel is gone, Raul can continue to liberalize the economy without his older brother watching over his shoulder.

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