Lifting the United States Embargo on Cuba to Promote Democracy and Free Market Principles - Research Paper Example

Lifting the United s Embargo on Cuba to Promote Democracy and Free Market Principles Joshua Christopher Cahill Global Economy: Emergence and Current Issues Julius Horvath Words: 3989 Lifting the United States Embargo on Cuba to Promote Democracy and Free Market Principles The U.S embargo on Cuba has reached its fiftieth anniversary on 7 February 2012. It was in the year 1960 that the U.S imposed embargo on Cuba as a response to the overthrow of Fulgencio Batista who had the support of the U.S. However, when there was armed rebellion under the leadership of Fidel Castro, the US saw this as the growth of Communism in the Northern hemisphere, especially very close to its borders, and imposed an embargo on exports to Cuba. At present, there are six statutes dealing with the embargo; the Trading with the Enemy Act of 1917, the Foreign Assistance Act of 1961, the Cuba Assets Control Regulations of 1963, the Cuban Democracy Act of 1992, the Helms-Burton Act of 1996, and the Trade Sanctions Reform and Export Enhancement Act of 20001. When the embargo reached its fiftieth anniversary, there are arguments both in favor of and against it. While some people claim that it is the only way for the U.S to bring Cuba to respect democracy and human rights, some others think that it only hinders Cuba from converting to democracy. This paper argues that lifting the embargo would promote democracy and free trade markets in Cuba. The History of Embargo When Batista was overthrown in Cuba in the Cuban Revolution, the new revolutionary government, under the leadership of Castro, started seizing U.S properties in the island and nationalizing them. As a response, the U.S reduced the Cuban import quota of brown sugar through the Sugar Act of 1948. However, the revolutionary government of Cuba gained support from the Soviet Union, which offered to purchase sugar from Cuba2. The situation grew worse when Cuba supported the Soviet Union in the Cold War. Infuriated, the Kennedy government extended the embargo measures. During the Cuban Missile Crisis, travel restrictions to Cuba came into force in 1963 and as a response to the Cuban hosting of Soviet nuclear weapons, Cuban Assets Control Regulations came into force, freezing Cuban properties in the U.S. Though the restriction on the U.S citizens from visiting Cuba expired in 1977, it is still illegal for U.S citizens to spend money or receive gifts in Cuba without a U.S government issued license. That is, it is not possible for the U.S citizens to pay airfare ticket taxes at a Cuban airport. In essence, though the travel restriction was removed, it is not possible for U.S citizens to visit Cuba without breaking the monetary transaction rule. However, by the year 2009, a change came as the Obama administration eased the ban, allowing Cuban-Americans to travel freely to Cuba3. The Effect of Embargo The embargo had severe impact on both the U.S and Cuba. According to one report, it costs the U.S economy nearly USD 1.2 billion per year while the loss for the Cuban economy is estimated at USD 685 million4. The embargo has severe impact on almost every sphere of life in Cuba. Schwab reports that it affects food and clean water, medicine and other important needs of the Cuban people and links the shortage of medical supplies and soap with increased incidences of infectious diseases, epidemics, neurological disorders, and blindness5. Despite all these things, the Castro regime continues without serious repercussions. Thus, it is high time to change the strategy to bring Cuban population to respect human rights and democracy. Arguments Supporting the Lifting of Embargo In the opinion of Carroll, the embargo has offered Castro regime an opportunity to hide its inefficacy. To illustrate, in the year 2010, Fidel Castro admitted to a visiting US journalist, “The Cuban model doesn’t even work for us any more”6. Both Fidel and Raul openly admit that the infrastructure is crumbling and food shortages are acute. In addition, food production in the country fell by 7.5% in the first half of 2010. Thus, the fact is that the embargo only harms the Cuban people; not the Castro regime. The embargo denies the Cuban people access to technology, medicine, affordable food, and other important things, which they could get if the embargo were lifted. Footnick claims that doctors in Cuba do not have access to more than 50% of the medicines available in the world market. In addition, calorie intake in the nation fell by 33%, from 2908 calories to 1863 calories between 1989 and 1993 as a result of the food shortages. Further, treatments for children and young people with diseases like bone cancer and AIDS are not readily available because of the embargo7. This situation is giving the Cuban administration an effective tool to strengthen its grip over the population. It manages to show the people that the reason behind the crisis is not the inefficiency of the government. Thus, the first point in favor of lifting the embargo is that if the embargo is lifted, the Castro regime will be forced to address the issues within the nation. The government will no more be able to use the anti-American sentiment as a way to handle the people and continue neglecting the real issues. At present, Cuban officials are not in a hurry to address the problems in the nation because they blame the embargo for the failing health care system, poor access to medicine, failing sugar industry, poor plumbing systems, and rising water pollution. Understanding this situation Hillary Clinton said in an interview, “Sometimes I think Fidel Castro does not want the embargo lifted…because as long as he can blame the United States, then he does not have to answer to his own people for the failures of his economic policy”8. In addition, the Cuban Minister of foreign Affairs declared that the embargo has caused a damage of USD 1.66 billion to the Cuban economy9. Thus, lifting the embargo will make Castro unable to utilize the anti-American sentiment as a strategy to hide his inefficacy and a considerable proportion of the Cuban people will respect the U.S and its policies. This will act as a way for the U.S to attract Cubans towards democracy as they have already suffered a lot under Communist regime. Tourism and Free Trade will Promote Democracy through Interaction Evidently, the main intention of the U.S government in imposing the embargo is to thwart the Castro government and end the Communist regime. However, the 50 years have proved that strengthening the embargo only has a negative impact. It is opined by the Illinois Governor George Ryan, “I think we ought to treat Cuba like we do any other country in the world…our biggest commodity is democracy, and we ought to be spreading that any place we can”10. The view is supported by Lopez who believes that the embargo has a role in delaying democracy in Cuba and that spreading the message of democracy and freedom can be better done by exposing the population to American culture, which can be achieved through increased tourism and communication11. Once smitten by the charm of freedom offered by democracy, the population will start realizing the hollowness of Castro’s claims and he will lose power. In addition, when there is increased interaction among people, Castro will lose his ability to hinder the inflow of information. Utilizing Information Technology to Educate People Internet plays an important role in sharing thoughts and ideas. In Iran and Moldova and other countries, online organizing has been a useful tool enabling citizens to protest suspicious election results. An example of the role of internet in spreading messages among people is the Arab Spring that broke out in Tunisia and spread to other Arab countries. Some nations affected by Arab Spring include Yemen, Tunisia, Egypt, Yemen, Libya, Bahrain, Algeria, Iraq, Morocco, and Syria. In the Egypt Revolution, Facebook played a pivotal role when a Facebook page named We All Khaled Said publicized how an Alexandria trader was tortured to death by the Egyptian police12. Though the Arab Spring eventually failed in all places except Tunisia, it helped in realizing the power of internet. Internet in Cuba is poorly-developed. There are three reasons behind this situation. Firstly, Cuba has one of the most tightly controlled and censored internet in the world. All the materials for publication on the internet require prior approval by the government. Secondly, the domestic telecommunication infrastructure in Cuba is poorly developed, and only a quarter of the total population has access to internet13. Despite all these, there is an increased demand for free internet among the educated population in Cuba14. The third factor causing this problem is the U.S sanctions, making it impossible for companies like Google to work effectively in Cuba. Though the Cuban population has started finding ways to circumvent the government restrictions by using satellite cell phones, which are paid for by people abroad15, the American government failed to respond appropriately by allowing free operation of companies like Google in Cuba so that a Cuban Spring could be created in line with the Arab Spring. In fact, the US embargo played its role in the poor internet access by delaying an undersea cable connection and by making computers and routers expensive and unavailable. Though Facebook and Twitter are available, poor internet facilities make it impossible to use them effectively. From the role of social media in the Arab Spring, it is crystal clear that social media is the most effective platform for people to share ideas, and in nations where human rights are suppressed, social media is the most effective platform to share information and thoughts and to unite people. Thus, it is evident that if America lifts the embargo and offers better internet facilities to Cuba, at the same time igniting and sharing democratic thoughts, Cuba will not be able to give a justifiable answer to the rest of the world and its own population for not allowing free exchange of ideas. This will make Castro lose much of his credibility. In addition, once ignited with the desire for democracy, the population will manage to fight the dictatorship despite all odds, as is evident from the history of nations like the Czech Republic and Hungary. At this point, it is useful to see the role of the Google Executive Wael Ghonim in the Egyptian revolution. The long serving Egyptian dictator was overthrown when Ghonim and his people utilized the social media to show the world and his fellow-people what was happening. However, what is more important at this point is what happened once the message was spread. When it was found by the government that internet has a role in spreading anti-government uprising, the government imposed total internet blackout to prevent people from communicating, but the result was the opposite. When the government abruptly stopped internet access, people went to the streets to find out what was happening. The reason is that if people understand government is denying something, it will only get harder for the government as time passes. However, in the case of Cuba, the government is able to hide the suppression of freedom and right to information by blaming the U.S embargo for the economic misery. At this point, if the U.S lifts and embargo and allows its companies to operate freely in Cuba and offers better internet infrastructure, the Cuban government will no more be able to hide the inadequacies in its own policies. In either case, the educated people in Cuba are likely to understand the underlying message. It is a known fact that the U.S had the power and strategies to promote democracy in any nation as is evident from the history of the Czech Republic and the Arab Spring, though the latter was largely a failure. According to scholars, the Middle East destabilization was a CIA-backed event where the preparation started as early as 2008 when the State Department brought the youth to the US and gave them specialized training on using Facebook and Twitter. Another example is the Tor Project of Google, which is aimed at offering anonymous navigation on Internet in countries with strict internet censorship16. Thus, in the case of Cuba, lifting the embargo will offer the US a chance to utilize the enormous potential of internet to destabilize the regime of Castro. Lifting the Embargo to Develop Free Market Enterprises It has become almost certain that the Castro brothers have realized the problems with their economic policies. Raul Castro has admitted that the decades-long US embargo cannot be blamed for all the economic troubles in Cuba17. It is with this realization that they have started allowing very small scale private firms in retailing and other sectors along with the right to buy and sell houses. At present, the Cuban economy is growing at a rate of more than 7% a year. When the US broke its ties, Cuba managed to find partnership with nations like India, Norway, Spain, and China. In addition, so many nations have diplomatic relations with Cuba, and many American allies including Israel, Spain, and other European nations. Therefore, continuing the embargo is rather awkward in the current world18. In fact, Cuba is on its way to a more democratic society but the transition is rather slow and the beyond the understanding of the American hardliners. Raul Castro has declared that his nation is willing to have normal relations with the US but that US cannot expect more than normal influence on Cuban economy and politics but the US goes on insisting that lifting the embargo and improving the relations depend on Cuba’s active efforts to convert to a complete democracy. At present, Cuba is changing though the change is rather slow. The Castro government has started relaxing control of the economy. To illustrate, now it is possible in Cuba to start farming cooperatives and to start some private businesses. In addition, it is possible for Cubans to leave the island without an invitation from abroad or an exit visa. The history of Prague Spring and the democratization of Czech Republic proves that the transition might take a long time but involvement, not rejection, is the best strategy. At present, Czech Republic is a member of the EU and NATO and a close ally of the U.S. It is clear that America cannot expect Cuban government to change to democracy overnight or the Cuban people to revolt in their streets overnight. Seeing the hints of change and peace, what the American government should do is to reopen its diplomatic relations with Cuba so that better economic, political, and social cooperation between the nations is strengthened. Instead of focusing on the embargo, the US should introduce such policies that encompass political, economic, and diplomatic tools to make the Cuban people capable of engaging in the politics of their country. Instead of keeping away from Cuba, the US should give its companies a chance to compete with other multinational operators in Cuba. The presence of American people, products and values will make the Cuban people more open to, aware about, and willing to adopt democracy and the will stop viewing the US as an anti-Communist regime. In addition, the increasing presence of multinational companies in the nation will force the government to stop suppression of various sorts. Admittedly, one can see many changes in the Cuban economy after the year 201119. At present, it is possible for Cubans to buy foreign cars and buy and sell real estate. In addition, the government now allows permits to start private businesses along with an eased restriction on foreign business investment in Cuba. As a result of all these changes, it is estimated that there are currently more than 450,000 registered private businesses in the nation and the number is on rise. Yet another improvement is the phasing out of the two-currency system. One can see an active effort from Cuba to enter global market and attract foreign direct investment. As a part of this effort, the government has recently constructed a port in the Special Development Zone (SDZ) of Mariel. With a 10-year long tax-exemption, foreign investors and companies can open their research centers and factories and import raw materials. A perfect example of the Cuban success is the Brazilian investment of USD 957 million in the SDZ20. To take advantage of the improved situation, there is an array of nations, including China, Venezuela, Russia, the Netherlands, Mexico, Spain, and Germany. In addition, now Cuba allows majority foreign ownership in joint ventures. Evidently, the atmosphere is clearly changing and it is high time for the U.S to change its policy. The economy of Cuba will benefit primarily in three ways if the embargo is lifted; improvement in healthcare system, better energy independence, and improvement in tourism. In fact, the Cuban population faces serious health consequences as the nation does not have a bilateral trade agreement with the US. At present, the US is the largest exporter of medical supplies in the world, controlling more than one-third of the total supply. However, due to the existing embargo, US medical companies do not attempt to export to Cuba. This results in serious consequences on medical treatment as Cuban doctors do not have access to more than a half of the drugs available in the world market. Because of the embargo, Cuba is forced to import medicines from other nations. Importing from these nations costs 40% more in the form of transportation costs and product costs21. In addition, many people do not get timely and accurate treatment for their health issues because of this unavailability medicines and medical equipment. Secondly, a free trade will help Cuba reduce its dependence on Venezuela for oil. At present, Cuba meets 60% of its petroleum demand through exports, and Venezuela is the main source, offering more than 90% of the total import22. If Venezuela fails to supply oil in future, the Cuban economy will face serious consequences. Having a free trade agreement will help Cuba in this area because American companies can help Cuba explore and utilize its hydrocarbon reserves and other renewable energy sources like wind, sugarcane ethanol, and solar. Yet another area of improvement will be tourism. Lifting the embargo on visiting Cuba will raise the number of American visitors to this nation. As of 2011, American visitors constitute only 2.7% of the tourism industry in Cuba. Lifting the embargo will cause this number to grow multifold. When this happens, there will be a growth in airline and hotel industries in Cuba. Along with this increase in the number of visitors, there will be an increased demand for food, resulting in a growth in the agricultural industry. The most important point is that when this all happens, there will be renewed spread of liberal, democratic values. This can prompt the Cuban people to reform their nation and reach democracy in future. Examples from Czech Republic and Hungary A perfect example of what can be achieved through cooperation and dialogue is Hungary. The diplomatic relations between the U.S and Hungary were severed many times, especially during World War I and World War II. However, in 1973, the U.S again started its cooperation with Hungary, and gradually brought the nation to democracy and free market economy by offering assistance and expertise. Similarly, the U.S offers assistance programs in the Czech Republic and this helped in bring the nation to democracy. In both the case, what worked well was continuous and tireless communication and help. As Marybeth Ulrich points out, “for the most part, the U.S government provides technical assistance…to the nations of Central and Eastern Europe and the former Soviet Union. It is trade, not aid, which will provide the bulk of hard-currency capital that the region so badly needs”23. In fact, the U.S government was successful in bringing these nations back to democracy not by imposing embargo but by engaging in active dialogue and cooperation along with efforts to improve the economy of those nations. Therefore, treating Cuba in a totally different way does not seem the right way. In other words, hostility only breeds more hostility. Conclusion In total, it is evident that when the embargo reaches its fiftieth anniversary, being the longest in the world history, both the U.S and Cuba suffered significant losses because of the hostility. For the US, it had serious impact on the nation’s image in the international arena as many nations and the UN openly criticize US policy towards Cuba. In addition, the embargo has failed to make any serious impact on the power of Castro but the embargo mainly affected the common people in the nation, causing further damage to the image of America as the protector of human rights. The recent developments show that Raul Castro has realized how their own policies have caused serious damage to the country’s economy, and the result is the governmental effort to reform the economy through increased private participation and foreign investment. Making good use of the changed circumstances, it is necessary for the U.S government to enter into trade agreements with Cuba. This will stop the Castros from blaming the U.S embargo for their own inability to manage their economy. In addition, increased tourism, interaction, trade and communication through modern technology will make Cuban population attracted towards liberal and democratic thinking. Works Cited BBC, “Raul Castro”, BBC News, BBC. 25 Feb. 2013. Web. 24 Nov. 2014. Carroll, Rory. “Fidel Castro says his Economic System is Failing.” The Guardian. 9 Sept. 2010. Web. 24 Nov. 2014. Goodman, Amy and Denis Moynihan. The Silenced Majority: Stories of Uprisings, Occupations, Resistance and Hope. Chicago: Haymarket Books, 2012. Print. Gootnick, David. U.S Embargo on Cuba: Recent Regulatory Changes and Potential Presidential or Congressional Actions. Washington: GAO, 2009. Print. Deibert, Ronald. Access Denied: The Practice and Policy of Global Internet Filtering. London: MIT Press, 2008. Print. “Distant Neighbors”. PBS, Public Affairs Television. N.d. Web. 24 Nov. 2014 Eko, Lyombe S. New Media, Old Regimes. New York: Lexington Books, 2012. Print. Lopez, Juan J. Democracy Delayed: The Case of Castro’s Cuba. Chicago: JHU Press, 2003. Print. Peterson, Marybeth. Democratizing Communist Militaries. Michigan: University of Michigan, 1999. Print. Schwab, Peter. Cuba Confronting the U.S Embargo. New York: Palgrave Macmillan, 2000. Print. Sequin, Rob. “Does Secretary Clinton Understand that Fidel does not Want the Embargo Lifted?” Havana Journal. 23 Oct. 2010. Web. 24 Nov. 2014 Sweig, Julia E. and Michael J. Bustamante.“Cuba After Communism,” Foreign Affairs. Jul. 2013. Web. 24 Nov. 2014. Read More