US Chamber head urges Cuba to open economy more

Posted on Friday, 05.30.14



US Chamber head urges Cuba to open economy more

BY PETER ORSI

ASSOCIATED PRESS



HAVANA -- The head of the U.S. Chamber of Commerce has a prescription

for communist-run Cuba's struggling economy: less government control and

a heavier dose of the open market.



In a speech at the University of Havana, Chamber president and CEO

Thomas J. Donohue cautiously praised what he saw during a visit to

evaluate economic reforms that have hundreds of thousands of islanders

working independently of the state.



But he added that the challenge now is to consolidate and expand the

changes.



"We at the U.S. Chamber of Commerce believe in the power of private

enterprise to help societies progress and improve," he said Thursday,

before heading back to the U.S. "And it is in that spirit that we come

to your country ... and offer these observations."



About a dozen business leaders arrived this week on the chamber's first

trade mission to Cuba since 1999. During the visit they met with

entrepreneurs and government officials to talk about the reforms, which

President Raul Castro began in earnest in late 2010.



"We have come to Cuba to assess the seriousness of this effort and to

encourage and support it in any way we can," Donohue said. "We're trying

to engage Cubans of all walks of life and explain how private enterprise

can dramatically improve the lives of your citizens."



State television reported Thursday night that Donohue met with Cuba's

president. It showed images of the encounter, but did not say how long

it lasted or what they discussed.



About 455,000 islanders are currently running or working for private

small businesses as a result of the reforms, and about 450 new

non-agricultural cooperatives are operating autonomously.



"Their efforts to start their own businesses show that the spirit of

entrepreneurship and enterprise is alive and well in the hearts of many

Cuban citizens," Donohue said. "And indeed, when that spirit is properly

encouraged and given the freedom to operate, the country as a whole can

do much better."



He cited China and Vietnam's economic overhauls as a model for improving

Cubans' lives. "It can happen here, too."



Cuba has also decentralized a number of bloated state-run businesses and

undertaken a big port project west of Havana that seeks to turn the

sleepy fishing town of Mariel into a regional shipping hub. An adjacent

special economic zone aims to lure much-needed foreign investment.



Island officials say they are not abandoning the socialist principles

that have ruled here for more than 50 years, but rather are "updating"

Cuba's model to perform better in a globalized economy.



Donohue disagreed with those back home who criticized the trade mission

by arguing it would be a mistake to strengthen commercial ties with Cuba

due to questions about its record on civil liberties and political freedoms.



He said the Chamber of Commerce takes human rights concerns seriously,

calling it an issue that should be part of a "constructive dialogue"

between the U.S. and Cuba.



He called for Washington to allow imports and exports of goods and

services involving a number of sectors in Cuba, saying it would be in

the interests of American citizens and U.S. business. He cited

telecommunications as one area with great potential.



Donohue said the chamber has lobbied for years to end the now

52-year-long U.S. economic embargo that bars most commerce between the

two countries. Some exceptions exist for food and agricultural goods,

but as Cuba turned to other partners such trade has fallen by nearly

half in recent years to about $509 million in 2012, the most recent year

for which officials figures are available.



"Changes take time, but if (President Barack Obama) wants to get it done

before the end of his term, he's got two years," Donohue said. "And it's

going to take a while to do it, so he'll have to get busy."



Peter Orsi on Twitter: www.twitter.com/Peter-Orsi



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