Caveat Emptor – Buyer Beware

Business

Comments (0) / September 6, 2016

In late 2010, the Cuban government first detailed its plan to revitalize the moribund Cuban economy. One of its key proposals was to allow some private sector self-employment to absorb the newly unemployed created by the massive lay-offs of state employees.

“Almost six years later, Investors in Cuba face a maze of difficulties. These include the inability of bureaucrats to make decisions at the local level. Fearful of making mistakes, they tend to seek permission from higher authorities. Widespread corruption and cronyism make it difficult to navigate the island’s investment requirements…” says Jaime Suchlicki, Emilio Bacardi Moreau Distinguished Professor and Director, Institute for Cuban and Cuban-American Studies, University of Miami., in an article published in the International Law Quaterly Fall 2016 issue.

He goes on to say “The changes introduced by General Castro are not liberalizing foreign investment regulations, as most Cubans cannot partner with foreign investors. Investments in Cuba are only allowed with joint ventures controlled by military leaders or in partnerships with Grupo Gaesa, a large military group of state businesses directed by General Castro’s son-in-law, General Luis Alberto López Calleja.”

Therefore: same old same old; the leopard has not changed its spots.

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