Chronicle on Cuba - January 2004

Economy

January 1: Cuba closed 2003 with nearly 700 collaboration projects with foreign institutions, according to the Ministry for Foreign Investment and Economic Collaboration (MINVEC). In statements to the press, MINVEC Deputy Minister Eduardo Santos said that these programs total US $230 million and mainly benefit the sectors of education and health, and municipal governments. He added that 46 percent of the projects are being carried out in eastern Cuba. (Prensa Latina, 1/1/04)

January 5: Cuba allocated US 2 billion 159 million dollars to social security in 2004 to cover assistance to more than one million retired and pensioners. The figure represents a three percent increase over the 2003 budget, indicated Georgina Barreiro, Minister of Finance and Prices. (Prensa Latina, 5/1/03)

January 6: Oil production in Cuba increased in 2003 for the tenth consecutive year. According to Fidel Rivero Prieto, director of the Cuban petroleum company CUPET, more than 4,300,000 tons were pumped, for an increase of 3.7 percent over the previous year. (Radio Habana Cuba, 6/1/04)

January 7: Cuba is making use of Chinese experience in the cultivation of vegetables to raise the yield of its agricultural production, a senior Cuban official said. The President of the National Institute of the State Reserve of Cuba, Moises Sio Wong, praised the techniques used by Chinese farmers, saying they are useful and fit for Cuba. Sio said that cultivation of short-cycled yam vegetables would be of interest to Cuba, as shown by the nearly 100-ton-per-hectareoutput secured by Chinese agricultural producers in three consecutive years. The Chinese research institute was collaborating with the Cuban Food Research Institute, in the central province of Villa Clara, exchanging experiences and expertise in agricultural production. (The People Daily, 8/1/03)

January 7: According to a report from the National Tax Administration Office (ONAT), in the course of two months, operations involving several Ministries and departments from the Assembly of the People's Power as well as the Ministry of the Interior uncovered over 9,643 alleged violations, carried out primarily by unauthorized self-employed individuals. Among these, there were 1,764 food processors and vendors, 838 transporters, 768 produce market vendors, 95 landlords, and 658 in other independent productive and commercial sectors. Since 2002, the ONAT has not issued any new operating licenses to self-employed workers. (Cubanet, 7/1/04)

January 8: Heads are rolling in Cuba's leisure industry, from the president of the largest tourism corporation to a dishwasher at the famous Hotel Nacional. The tourism ministry announced last month that it had fired Jose Vega, the president of Cubanacan, and other company executives for "grave management errors" at the sprawling conglomerate that operates 13,000 of the island's 40,000 tourism quarters, 23 joint ventures, hundreds of restaurants and other establishments. The company has 30,000 employees and reported revenues of 330 million in 2002. "Cubanacan executives were told (Jose) Vega, vice-president Orlando Enterian and the heads of Cubanacan's reception and transportation divisions were fired for financial mismanagement and poor human resource policies," says an industry source. But according to at least one Cuban economist, "the employees at various Havana hotels said all personnel records were under review in search of those who bought their jobs instead of going through a government-organised training and placement system that is supposed to give jobs to the best qualified. It remains to be seen how many people will lose their jobs in the crackdown that western diplomats say is being orchestrated by President Fidel Castro to preserve revenues for the state and appease popular discontent at tourism industry privileges. Government insiders say that Ibrahim Ferradaz's days as tourism minister may be numbered. (The Financial Times, 8/1/03)

January 12: Cuba's rodenticide Biorat is now being marketed in several Latin American nations, China, Vietnam and Angola, according to the island's Biological and Pharmaceutical Laboratories (LABIOFAM). Deisy Lorenzo, a company representative in the central province of Matanzas, told the press that Biorat, which is harmless to other animals and has an excellent track record, is doing as good or even better than similar products sold by other firms. (Radio Habana Cuba, 13/1/04)

January 12: The Norwegian super-semi, Eirik Raude, is to drill an exploration well in Cuban waters for Repsol-YPF, with an option to drill a second. The rig is expected to spud the first well in March, which will be the first attempt at deepwater drilling off Cuba. The drilling location will be off the island's north-west coast in 1,650m. Repsol holds the licence mandate to explore six blocks under a production-sharing agreement with Union Cubapetroleo (Cupet), the Cuban national oil company. (Aberdeen Press & Journal, 12/1/04)

January 15: In its annual report for the year 2002, the Central Bank of Uruguay's declared irrecoverable credit assets owed by Cuba. (La República, 15/1/04)

January 16: According to a Venezuelan daily, last year alone, the Cuban government's debt to state-owned Petróleos de Venezuela (PDVSA) reached a total of US $891 million. Out of that figure, US $240 million --to be paid in Banco Nacional de Cuba (Cuba's National Bank) IOU's-- account for Havana's long-term debt, which became due last December. The remaining US $651 million account for the island's short-term credit. El Universal adds that, of 92 shipments made by PDVSA, with payment due between January 2003 and March 2004, Venezuela has received IOU's for only 20 of them. (Encuentro en la Red, 16/1/04)

January 17: Cuba's Telecommunications Enterprise ETECSA will install 80,000 new telephone lines this year based on conventional technology by using wire and wireless connections. In 2003, the Cuban enterprise installed 60,000 phone lines, 81% of which benefited residential areas, while the digitalization of phone service reached 80% last year. Such a program will continue to expand toward the island's eastern municipalities in coming months. (Radio Habana Cuba, 17/1/04)

January 17: European entrepreneurs are taking part in 56 percent of the more than 4,000 international economic associations currently operating on the island. According to Deputy Minister of Foreign Investment and Economic Cooperation, Ricardo Guerrero, most European businesspeople working in Cuba are from Spain. Guerrero made the observation during an evaluation of the sector's performance in western Pinar del Río province. (Radio Habana Cuba, 17/1/04)

January 17: Cuba's Central Agriculture Workshops Enterprise, located in western Pinar del Rio province, and the Argentinean FAMACON company have signed a cooperation agreement to develop windmills. The Pinar del Rio enterprise will contribute machinery and technical personnel, while the Argentinean firm will provide financing, raw material and technology. (Radio Habana Cuba, 17/1/04)

January 21: Cuba has received its first group of 20 Chinese tourists since China designated the Western Hemisphere's only communist-run nation as one of its tourism destinations last year, a Cuban tourism official said. Tourism has become the island's main source of hard currency since the loss of support from the former Soviet Union. (National Post, 22/1/04)

January 23: Cuban Sugar Minister Ulises Rosales del Toro said the sugar harvest was on track, with mills opening on time and operating at acceptable levels and cane estimates were holding firm, state-run radio reported. "Ulises Rosales del Toro said mills have opened on time unlike the previous harvest (...) he said 56 mills were operating and the remainder would open soon," Radio Reloj said. At this time last year Cuba reported 30 mills were grinding. Rosales said mills were operating at 72 percent capacity, compared with 62 percent during the previous harvest. Rosales said in December, as he opened the harvest, that sugar output would increase 19 percent to 2.6 million tonnes, with 700,000 tonnes for domestic consumption and the rest for export. (Reuters, 23/1/04)

January 24: Cuban biotechnology is now, among other things, leading the way in the development of a new generation of anti-cancer therapies expected to be available to the European market by 2008. Havana's Carlos J. Finlay Institute has entered into a deal that allows major drug multinational GlaxoSmithKline to license its discovery in order to facilitate the first entry of a Cuban medical product into the more lucrative Western market. Another centre of excellence is the Pedro Kouri Institute of Tropical Medicine (IPK) which works closely with the United Nations World Health Organisation in Geneva. It is currently working on a new cholera vaccine and seeking to match the efforts of Western countries in the race to find the first vaccine against Aids. (The Straits Time, 24/1/04)

January 24: The number of foreign companies engaged in joint ventures with Cuba fell by 15 percent last year, state-run media said, as a political squabble with Europe and increased economic regulation took their toll. The decline, the first reported by the communist nation in more than a decade, comes as the government struggles with a foreign exchange shortage that has slowed economic growth. "Currently there are 342 active economic associations (joint ventures), and the most important foreign partners in these businesses are Spain with 98, Canada with 52 and Italy with 51," the Communist Party's daily, Granma, said, reporting on the annual meeting of the Ministry of Foreign Investment and Economic Cooperation. The ministry reported 403 ventures at the close of 2002, of which Spanish companies accounted for 105, Canadian companies 70 and Italian companies 57. Minister of Foreign Investment and Economic Cooperation Marta Lomas said at the meeting that seven joint ventures were formed last year compared with 24 new joint ventures in 2002. (Reuters, 24/1/04)

January 24: The Guayaquil Paediatrics Association and the Ecuadoran Paediatrics Federation are protesting a plan for several doctors from Cuba's Centro Habana paediatric hospital to teach an international course in paediatric intensive care in Guayaquil and other Ecuadoran cities. The president of the association, Cecilia Cedeño, said that the aim is to teach intensive care to recent paediatric graduates and give them diplomas for a job so complex that only those with experience can perform it. "To be qualified for paediatric intensive care, one must have practised three years as a resident in a children's hospital and then sub-specialize by practising two years in the intensive care unit," Cedeño said. The first module of the course will last for eight months and will be taught three days a week. It costs 2,000 dollars and 15 days of practical training in Havana are also offered for an additional 850 dollars. (BBC, 24/1/04)

January 24: Negotiations with Chinese enterprises over their participation in the industrial development of nickel, rubber and oil prospecting in the Exclusive Economic Zone in the Gulf of Mexico are paving the way for that nation occupying a priority place as a trade partner in Cuba’s future. During the annual report from the Ministry for Foreign Investment and Economic Cooperation (MINVEC), Minister Marta Lomas also highlighted Cuban investment in the biotechnology and tourism sectors in China. With fewer joint ventures than in previous years, there was a 13% growth in income and exports, respectively, and profits per dollar invested were greater than in 2002.

January 28: Cuban sugar crushing mills total 56 in the current 2003/04 crop year, up from 30 units in the year-ago period, it was reported. The 56 mills work with 72 pct of their production capacity in the current season, while those working in the previous crop year used 62 pct of their capacity. Other eight units are expected to start operations in February 2004, according to the Cuban Government. The country's 2003-2004 sugar output is expected to reach some 2.6 million tonnes, an 18.2 pct increase year-on-year, according to the Sugar Ministry. (Latin American News Digest, 28/1/04)

January 30: Cuban specialist Melbridge Container Line is stopping its Europe-Cuba service after 10 years, blaming stiff competition in the Cuban market. Ending the service also means the end of the shipping line, because it only operates on this route. A company insider, who did not wish to be named, said Melbridge Container Line’s owner, believed to be a Panamanian single shareholder, had decided to call a halt to the service, and added: “It is out of our hands.” He said he did not believe the state of the Cuban economy was related to the decision: “The Cuban economy has had problems for years.” The European-Cuban market had seen increasing competition since the service was launched in 1994. (Lloyd’s List, 30/1/4)

January 31: The representative of the UN Food and Agriculture Organization to Cuba, Francisco Arias Milla, said that the island could supply itself with enough rice in the future due to successful production results on the island. Cuba imports 60 percent of the rice it consumes. (Radio Habana Cuba, 31/1/04)

January 31: Cuba's Minister of Foreign Trade Raul de la Núez said that the island still has to improve in its exporting capacity. The Cuban official made this statement during the closing of the General Assembly of the island's Chamber of Commerce, in which they discussed the institution's work during 2003. (Radio Habana Cuba, 31/1/04)