Special Development Region Coming to Cuba

Special Development Region Coming to Cuba

Desperation for Trade and Employment Drives the Measure

Posted by Fergus Hodgson on September 20, 2013 at 5:38 pm



The Cuban Council of State has announced a "special development zone"

(una zona especial de desarrollo) for Mariel Harbor of Artemisa

Province. As reported by Radio Angulo, once implemented, the officials

may well replicate this first zone, and the objective is to increase

exports, facilitate imports, enable the adoption of updated technology,

and generate employment opportunities.

Those formalizing the idea, after adoption from the Cuban Communist

Party, made the details available late on Thursday. While the

announcement was scant on policy and heavy on hopes, the law will go

into force in just over a month, on November 1, and it will cover 465

square kilometers (180 square miles). This area will have distinct laws

from the rest of the island, although there appears to be the option to

remain under conventional Cuban laws, should individuals wish to do so.

Most notably, and paradoxically, the port will receive US$900 million in

state investment, including US$640 million loaned from Brazil.

"Mariel is a modern port for deep-sea vessels . . . and [with this

enlargement] Mariel aspires to be the main entry and departure point for

goods shipments of Cuban trade. It is the most important development for

investment at present in the island," the state television channel

explained.

This initiative is an acknowledgement of failure in the conventional

policy realm of Cuba, and it presumably comes in response to terrible

press associated with foreign investors and their experiences on the

island. That includes a man from the United Kingdom who had to flee

after 16 months in jail on false fraud and spying charges.

Zachary Caceres, chief information officer with the Startup Cities

Institute of Universidad Francisco Marroquín, believes that the "rule of

law and economic openness are key drivers of growth and prosperity."

However, he is concerned that the reforms will fail to bring results

because of their limited jurisdiction.

"If Cuba's new Special Development Zone can create and maintain

responsible reforms in law and governance, the people of Cuba can start

to break out of years of stagnation.

Unfortunately, the zone appears to be limited to import [and] export

concerns. Cuba should double down on their stated commitment to

'sustainable economic growth' and 'innovative technology' by creating

several more zones to compete with Mariel. Competition will make sure

that zones remain responsible to tenants.

Zones could also be used to create new schools, residencies, and

countless other benefits for the nation. Mariel may be a start, but the

prosperity of all Cubans will require a broader commitment to openness

and good governance."



Source: "Special Development Region Coming to Cuba: Desperation for

Trade and Employment Drives the Measure" -

http://blog.panampost.com/fergus-hodgson/2013/09/20/special-development-region-coming-to-cuba/