14ymedio

Cuba’s Central Bank’s New Regulations Are Suicidal Claim Economists

14ymedio, Madrid, 7 August 2023 — “Expanding the role of banking is essential for our economy but Resolution 111, which that the Central Bank has just announced, is suicidal,” states economist Oscar Fernandez in a reference to measures taken by the Cuban government last week. He is joined by a growing chorus of monetary experts who are strongly critical of this, the latest in a long list of economic initiatives by the Cuban regime.

In a Facebook post, Fernandez likens the new restrictions to “putting out a fire with gasoline.” He predicts, “This new regulation will deal a devastating blow to all: pensioners, workers, small-business owners, students, the unemployed, people who receive remittances, everyone.”

He does not deny that banking institutions are facing a cash shortage, nor that private businesses still have very limited access to banking services, “which makes the situation extremely complex.” He claims, however, that the island’s shortage of banknotes is the result of other issues that are not being addressed.

He points out that, just last January, “the public felt relatively confident about their digital transactions.” Then the Central Bank of Cuba (BCC) suddenly imposed a monthly limit of 120,000 pesos on transactions between individuals. The intention, Fernandez believes, was to “curtail operations on the informal hard-currency market, where each operation involved moving large sums of money.” The efforts, he points out, were counterproductive, however. “The result was that banks no longer had a role in any of these operations, which were suddenly thrust into the cash economy.” continue reading

Fernandez is critical of the BCC for not increasing the denomination of banknotes now that Cuba is experiencing runaway inflation and consumers increasingly need more money to buy the same goods. Instead, more banknotes will have to be “put into circulation to carry out the same operations with the subsequent increase in costs that this implies.”

“Responsibility for the rise of an informal currency exchange market and the ongoing devaluation of the peso — whether the result of real monetary variables or intentional manipulation — rests solely with the government, which long ago should have assumed the reins of the currency exchange market by buying and selling foreign reserves at the going rate,” he argues.

Fernandez believes the consequences of the new resolution will be “direct and immediate” and are “very easy to predict.” He foresees bank branches, which even now struggle to provide basic services, being overwhelmed by thousands of small private businesses trying to make daily deposits and withdrawals. He also believes there will be a severe reduction in private imports and a subsequent rise in prices for products whose prices “had begun to drop.”

“It is important to point out that it is not just ’solvent’ people who buy private-sector imports,” writes Fernandez. “Chicken, cooking oil and detergent are purchased by many people who are, by no means, in a high income bracket. These are people who find private-sector suppliers preferable to the black market, both in terms of price and safety. And, incidentally, they are many times cheaper than hard-currency stores. On the other hand, when the supply of private-sector supply of chicken dries up, higher income people will create a demand that will be met by the chicken of the poor. They will divert and buy chicken intended for poor people. It’s that simple.”

His bleak outlook does not stop there. He predicts that employment and many families’ stability will be impacted given that private enterprises (and not just those in the import business) will either close or be severely affected while others will cancel plans to a business.

He believes informal markets will also expand, furthering the so-called dollarization of the Cuban economy. “Prioritizing banking will slow the circulation of the Cuban peso (CUP) in its cash form but it will not shrink the cash economy. The dollar will assume that role. Financial digitalization will not restore the CUP’s monetary functions. On the contrary. We may as well dismiss the CUP as a unit of account and as a means of hoarding. And while we’re at it, we may as well welcome the new informal cash market.”

Fernandez closes with harsh words for the island’s authorities: “Given the current circumstances, whoever came up with this regulation — without thinking about these and other consequences — is making the same mistake as those who came up with currency unification.”

Along the same lines, financial expert Darien Garcia Linsuaín claims that the BCC’s measures “are currently impossible to put into practice and are clearly unrealistic given our situation.”

“You get a culture of banking,” says Garcia Linsuaín, “when the public respects and has confidence in its banks.” Rather than generating confidence, he believes measures such as these create more fear and mistrust. “Just go to any ATM or bank these days. They all have long lines, even late at night.”

The new regulations, he predicts, will have a direct impact, especially on the agricultural sector. “Our farmers will have to start following banking procedures in less than six months. It was mentioned on television on Thursday morning, August 4, that 24% of our individual farmers have bank cards. It’s taken all these years just to get to 24% and now, in six months’ time, we’re going to get the remaining 76%? How are they going to do that?” he asks.

Garcia Linsuaínalso mentions the island’s technological limitations and provides a personal example. “Last Monday I was trying to do some business at a state-owned institution with a digital payment platform but got stuck in line because the connection was very unstable that day. And we want to prioritize electronic banking? Connectivity is even worse in the countryside. So, back to the previous point, what are individual farmers supposed to do with their cards if there’s no connection?” he asks.

He also points out that one of the smartphones needed to access electronic banking “is out of the reach of many people in the country.” He asks that the president of the Central Bank, or some other official, indicate how they plan to implement this schedule in nine months.

For his part, economist Pedro Monreal speculates that one reason for the hasty rollout of the new banking program may be something that the government has not explicitly mentioned: the hope that it will serve as an emergency brake to slow the recent flurry of devaluations of the Cuban peso on the black market.

“There has been talk about banking reform for a long time but there never seemed to be any urgency to implement a program,” observes Monreal, who also recalls that in July’s parliamentary session the measure was hardly mentioned. Nor did the “zero cash” pilot test of the Electric Company and CIMEX reveal any cause for any urgency either.

The new regulations on money “can be classified as monetary policy,” writes the economist, “and therefore it is reasonable to assume that it is part of the macroeconomic stabilization program often trumpeted but never presented in detail.

What suddenly set off alarm bells for the Cuban government, he reasoned, is the devaluation of the Cuban peso in the informal market. Between June 22 and August 7, recalls Monreal, the dollar strengthened 19%. This same Monday, the newspaper El Toque, which follows the value of currencies daily, indicates that the US currency exchange rate has reached 240 pesos to the dollar.

In any case, the scenario that economists foresee is not encouraging. That officials have announced a special Monday episode of the TV interview show Mesa Redonda (Roundtable), to be devoted to this topic, is indicative of the concern and confusion on the streets.

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A Private Company Prepares Havana’s Varsovia Restaurant for Conversion to a Food Store

Few vestiges remain of the central Havana restaurant that once occupied the wide corner storefront. (14ymedio)

14ymedio, Juan Diego Rodriguez, Havana, 9 August 2023 — Despite the solid gray paint and rustic appearance, repairs to the facade of the old Varsovia (Warsaw) restaurant — located at the corner of 12th and 17th in Havana’s Vedado district – are a welcome sight. After several years of neglect, plans by a medium-sized private business to turn it into a food market are beginning to bear fruit. New equipment, shelving and furniture can already be seen through the glass windows.

The dilapidated neon sign bearing the name of the Polish capital has also been removed from the post at the corner as have the boards which the state used to shutter the windows.

The only thing missing from the interior, as far as this reporter can see, is the merchandise. Otherwise, it appears ready to open. Several wooden boxes, to be used to display bread, fruits and vegetables, have been configured into shelving. The frozen foods section looks ready and various machines have been installed.

The presence of a counter at the back of the store suggests that the owners of the converted space also plan to sell food and drinks to go. The premises also have air conditioning and are equipped with cameras.

Once known for its heavy red curtains, dim lighting and very formally dressed waiters, few vestiges remain of the central Havana establishment that once occupied the wide corner storefront. Though never of the same caliber as its neighborhood cousins — El Monseñor, El Conejito, La Roca, La Torre or the opulent Moscú — Varsovia did have its moments of splendor, offering a varied menu in the years of Soviet subsidies. continue reading

The economic crisis of the 1990s hit the business hard. Gradually, the façade lost its sheen, the menu got smaller and and potential staff lost interest in working in its increasingly dark dining room. By the time it closed to the public and was boarded up, the place was no more than a greasy spoon with the smell of burnt cooking oil and dirt everywhere.

Several wooden boxes, to be used to display bread, fruits and vegetables, have been configured into shelving.

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Cuba Paid the U.S. Ten Million Dollars More in June for Chicken Than in May

14ymedio, Madrid, 9 August 9, 2023 — The sudden increase in the price of a kilo of chicken in the U.S. makes an impact on the import expenses of the Cuban government, which in June paid 32.8 million dollars for the 27,631 tons it bought. Compared to the month of May, spending has increased by 44.7% for the acquisition of just 9.3% more meat, figures that reflect the 33.7% increase in unit value, according to the calculations of Cuban economist Pedro Monreal, who publishes these statistics on a monthly basis.

“Exports of chicken from the U.S. to Cuba oscillate,” he says, “but in the long term they show Cuba’s growing import dependency on the main meat consumed in Cuba.”

This June, the price of each kilo of chicken was $1.19, much higher than in May, when it was barely $0.89. That month, 22.69 million dollars were spent on the purchase.

Despite the high investment, Cuba continues to have its largest supplier in the U.S. market. Brazil, the second in importance, has been losing steam so far this year, which can be seen in the comparison of the first half of 2023, in which 44% less chicken was bought from that South American country, on average, than in the same period of the previous year.

Throughout 2023, Cuba has had difficulty importing the product from other markets that, although they were not the priority ones, contributed to increasing the availability of a meat that has become the most desired on the Island, in the absence of pork and, even more so, of beef. continue reading

Spain, Poland and the Netherlands have maintained an irregular flow in this type of trade, but in most of the months of the first half of the year they did not even report commercial activity with Havana.

Although Cuba is forced by the embargo to acquire U.S. food products under unusual conditions for international trade – cash payment in advance – the country continues to be one of its main sources.

Last July, the U.S.-Cuba Trade and Economic Council reported that during the last month with available data, May, there was a 3.7% increase in food exports from the U.S. to Cuba, worth $26,476,991. Among the products sent to the Island were coffee, waffles, wafers, cookies, powdered milk, beer, toilet paper, pork, preserves and chicken.

By product, chicken was the largest expense in the Island’s imports from the U.S., with an abysmal difference compared to the rest of the purchases. Compared to the $32.8 million Cuba spent on poultry meat, the second item in order of importance was dairy products, which cost $1.3 million.

Behind these are pork, with 774,000 dollars; cereals and pasta, 526,000; non-alcoholic beverages, 294,000; beef 193,000; and flour, 153,000. At the end of the list are fruit juices and chocolate products, worth 97,000 and 78,000 dollars respectively, and the list closes with a product that in Cuba is considered a basic necessity and which it is increasingly forced to bring from outside: rice.

After a disastrous harvest in 2022, which stood at 120,000 tons – when national consumption demands at least 700,000 – the Island is still forced to import rice or to get donations, most frequently from Vietnam. In the month of June, according to the available data, Cuba spent $64,000 to bring rice from the United States.

Translated by Regina Anavy

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About 3,000 Cubans Win the U.S. Visa Lottery, More Than Twice As Many as Last Year

A man poses with his immigration documents in front of the United States Embassy in Havana, Cuba. (EFE)

14ymedio, Havana, 9 August 2023 — No fewer than 3,081 Cubans were selected by the United States in the Visa Lottery for 2024, the draw that takes place every year in that country for immigrants “with low representation.” The number is more than double that of the Cubans awarded in 2022 (1,358), when the Island was also the country that contributed the most winners in Latin America.

In total, the State Department will deliver permanent residency to 143,000 people, including the 55,000 selected, their spouses and their children, as detailed in the latest visa bulletin, published last Friday.

The winners were randomly chosen from more than 22.18 million applications from six regions in Africa, Asia, Europe, North America, Oceania and Latin America.

After Cuba, the countries that contribute the most citizens to the winning list are Ecuador, with 814, and Peru, with 742. In total, the State Department approved petitions from 20 countries in Latin America and the Caribbean, a list that excludes Venezuela, El Salvador, Honduras, Mexico and Haiti given the high rate of migration.

Those chosen must attend an interview where they will have to present evidence of secondary education or its equivalent, as well as documentation that verifies that they have work experience in an occupation that requires at least two years of training. continue reading

The State Department urges those selected to “act quickly,” since they have to complete the entire process before September 30, 2024.

The economic crisis, aggravated in the last two years, has pushed hundreds of Cubans to migrate, mainly to the United States or Spain. The Customs and Border Patrol Office (CBP) records that since the beginning of the fiscal year, in October 2022, 164,475 Cubans with irregular immigration status have been arrested, of which 10,885 were apprehended last June alone.

Of those arrested, 113,044 were adults, 49,973 were family groups, 1,231 unaccompanied minors and 227 accompanied minors.

The United States has several programs for the entry of Cubans into its territory through legal channels, as well as an agreement with the Government in Havana to deport migrants who enter without documents.

The Biden Administration launched the humanitarian parole program last January, and last June announced that it will expand asylum requests for citizens from the Island who are in Mexico. Both projects also cover migrants from Haiti, Nicaragua and Venezuela.

Translated by Regina Anavy

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Cuba Loses More Than 30,000 Health Care Workers in One Year, Including 12,000 Doctors

Both the total number of consultations and the number of consultations per inhabitant also dropped slightly. (EFE/Ernesto Mastrascusa)

14ymedio, Madrid, August 10, 2023 — The crisis of the healthcare system in Cuba, palpable in hospitals and polyclinics, now has its correlation in official figures. According to the most recent Statistical Yearbook on Health and Social Assistance published by the National Office of Statistics and Information (Onei), the Island lost 12,065 doctors in one year, in addition to 3,246 dentists and 7,414 nurses.

The country went from having a total of 312,406 healthcare personnel in 2021 to 281,098 in 2022, a loss of 31,308. This category includes senior, medium and basic technicians, technologists and other Health sciences graduates.

According to the same document, both the number of consultations (from 112,496 in 2021 to 108,586 in 2022) and the number of consultations per inhabitant (from 10.1 to 9.8) decreased slightly. Deaths also decreased in one year, from 44,780 to 32,872.

All these numbers indicate a considerable demographic loss and are consistent with the unstoppable migration figures of recent years.

One illness increased, however, and it is striking: acute diarrheal diseases, which went from 104,797 in 2021 to 140,269 the following year.

The debacle of the health system is something that Cubans have been experiencing firsthand for months. “I’ve been planned to have gallbladder surgery for months, but they don’t give me an appointment because they say there’s a lack of personnel,” a resident from Centro Habana laments to this newspaper. Now, a few days ago, at the Calixto García hospital, which is the one that serves this patient, and where 14ymedio has registered numerous irregularities, the surgeon suggested that she go “to the emergency department” whenever she wanted, and that he would operate on her. The woman was surprised: “That has to be paid from outside, because if not, I don’t understand it, but I don’t have money.” continue reading

Last June, this newspaper also reported a flagrant loss of specialists in the country, to which not only the massive exodus, a meager salary and mistreatment by superiors and patients all contributed.

According to a doctor from the William Soler hospital, in the Havana municipality of Boyeros, speaking at the time, “nobody wants to be a clinician, a pediatrician, and even less a gynecologist.” And he recounted, by way of example, how around April, eight of the 12 young people who had started as pediatric residents abandoned their positions all at once.

Data of health personnel in Cuba corresponding to the year 2022. (Onei) [Line 1 – Doctors. Line 2 – Of them, family doctors in the community. Line 3 – Dentists. Line 4 – Nurses. Line 5 – Technicians, senior, midlevel and basic. Line 6 – Technicians and other licensed healthcare workers.]

The most serious thing in his story, however, was the shortage of personnel in intensive care services, some of which have had to be closed, and in operating rooms. As an alternative, the doctor denounced, they were using undergraduate surgical residents.

Last February, the AFP agency published a report that also attributed the labor debacle on the Island to the continuous exodus of professionals via emigration. The conclusion of the report was devastating: theoretically in Cuba there is plenty of employment, but nobody wants to work in the deplorable conditions established by the regime’s economy. According to the data provided to the international press, the majority of Cuban emigrants are between 19 and 49 years old and, in addition, are highly educated.

The internal lack of health personnel is also compounded by the drop in contingents sent to international missions, the marketing of which is the regime’s main source of income after tourism and remittances. At the beginning of January, the Ministry of Foreign Affairs announced that in 2022, 23,792 Cuban “collaborators” were working in 56 countries.

The figure, presented with the usual hullabaloo by the authorities, actually reflected a pronounced drop compared to the 30,407 health workers it had in 66 countries in 2021, as well as compared to the number even a year earlier, during the outbreak of the pandemic: 28,000 doctors in 58 nations.

The “sending of health professionals to different countries of the world to offer comprehensive medical care to the most disadvantaged population” is something that the ONEI report itself highlights as part of the Comprehensive Health Program.

In the same document it is extolled that the National Health System “is based on the principles of socialist public health, through which the right of the population to receive, free of charge, the services provided by institutions dedicated to both medical assistance and and social assistance,” which “constitutes one of the greatest achievements of the Cuban social model. However, the Island does not appear in the in the top twenty ranking of countries with the best public health coverage of the World Health Organization, all of which are countries with free market economies.

It is a fact that the recently published numbers support the progressive discredit both of the export of healthcare workers – considered by the United States and various international organizations as forced labor – and of the Cuban health system itself. The official propaganda about the Island as a “medical power” is increasingly unsustainable.

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Bottled Water in Cuba, Only Available in Private Shops and at Prohibitive Prices

A small bottled water can cost up to 150 pesos. (14ymedio)

14ymedio, Juan Diego Rodríguez, Havana, 8 August 2023 — Of all the basic products that are scarce in Cuba, the most dramatic in these days of extreme heat is water. It’s not only that you cannot get a free glass of water in any shop, state or private business, but that the bottled ones have disappeared from state businesses, which nevertheless do sell alcoholic beverages and soft drinks. Bottled water remains, as a last resort, in the private businesses, at impossible prices for most of the population.

Doris says that until recently in state shops, such as the El Mercurio cafeteria, located on the ground floor of the Lonja de Comercio in Old Havana, she could buy a bottle of water “at a reasonable price” before going for a walk to the port. “Last month they didn’t have any in El Mercurio, and I had to buy it at the Café de Oriente, also state-run, but at 70 pesos.”

This Monday, there wasn’t any water in either of the two places, and she had to walk almost ten blocks, to Obispo Street, sweating through every pore, before finding a store that sold it. “Of course, it was in a private shop and cost 150 pesos,” complained this 30-year-old woman of El Vedado. “That, a small bottle, which is a cup and a half of water. They never go below 100 pesos.” The one and a half liters usually costs 300. continue reading

Bottled water “is in the hands of private individuals at exorbitant prices, and of course no one gives you a glass of water, no one gives you anything.” (14ymedio)

“How is it possible that with this terrible sun that makes you faint the State doesn’t have water?” asked Doris, indignant, unable to understand how something nationally produced could be missing. It’s true that “everything is in the hands of the private stores at exorbitant prices, and of course no one gives you a glass of water, no one gives you anything. I can only assume that they divert it to the private businesses so that they can resell it.”

The woman is grateful for at least having money and being able to spend it on a bottle of water, “but a poor old woman who walks down the street, thirsty, begging for alms? What water does she drink?” Her questions remain unanswered.

Translated by Regina Anavy

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Two Cuban Players Escape to the Dominican Republic and Are Now Aiming for the Major Leagues

Cuban baseball players Emmanuel Chapman and Julio César Pérez. (Collage/Twitter/@francysromeroFR)

14ymedio, Havana, 8 August 2023 — Two other promising young men have joined the long list of players who have left Cuba. Emmanuel Chapman and Julio César Pérez are now in the Dominican Republic,according to sports journalist Francys Romero.

Romero reported last Saturday that 24-year-old pitcher Emmanuel Chapman Ayón left Cuba in April of this year. He had participated in three National Series with the Holguín Cubs before leaving the country.

“Several Major League (U.S.) organizations have confirmed interest in Chapman. He has been training in the Dominican Republic for a couple of months, increasing his power and muscle mass,” Romero emphasized.

Chapman now has a demonstration scheduled before Major League coaches for August 25 in the Dominican capital. His exhibition will be at the Villa Mella stadium, located on the Hacienda Estrella road. The young man seeks to shine before the evaluators with a pitch that is over 90 miles per hour.

For his part, the catcher Julio César Pérez Dávila, only 19 years old, has been in the same Caribbean country since last week, Romero said last Sunday. continue reading

The reporter included Pérez at number 11 as the best catcher in his class in his list of 25 best U-18 prospects in Cuba, for the year 2022. He also recalled that the athlete finished the National Championship as the most valuable player in the category.

Romero explained that during that event, the promising Havana player achieved a record of 14 hits in four turns at bat, which is equivalent to a batting average of .286. In addition, he contributed with a double and participated in four games as catcher and one as designated hitter.

“In the 2022 U-18 National Championship he led the batters with .438/.579/.604, 8 doubles, a triple and 2 home runs. His average was the highest among the qualified batters. At defense he’s an excellent fielder,” Romero wrote about the catcher’s abilities.

Romero added that “if he has to improve anything, it’s his arm.” However, he said, “Pérez’s definitely has potential.”

In this regard, he said that although coaches have traditionally preferred Venezuelans and Dominicans as catchers over Cubans, “in recent times that reality has changed,” with the signing of catchers like Edgar Quero (top prospect of the Chicago White Sox).

As the specialist recalled, the emigration of Cuban baseball players “has maintained constant numbers in 2023.” In 2022, “more than 100 players left through different routes.” Recently Romero reported on the departure from Cuba of pitchers Alexander Valiente, Renyi Norbel Membrives, Javier Mirabal, Yulian Quintana, Daivel Álvarez de la Torre, Roger Bolaños and Marlon Vega.

Translated by Regina Anavy

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Cuban Baseball Player Yasiel Puig Returns to the Dominican Professional League

The baseball player Yasiel Puig, in the image he has disseminated on his networks. (Twitter/@YasielPuig)

14ymedio, Miami, 7 August 2023 — Cuban outfielder Yasiel Puig will join the Eastern Stars of the Professional Baseball League of the Dominican Republic for the 2023-2024 season, which begins on October 19. The athlete himself announced the news on Saturday via his social networks.

“I was born to play baseball,” wrote the athlete, adding: “The best is yet to come.” In the same message, he thanked the Eastern Stars for giving him “the opportunity to play on the best baseball team in the Caribbean this winter,” and concluded: “Mentally, physically and spiritually I am ready to raise its name high with my teammates.”

He also said that, at his own request, it will be the first time he will leave his number 66 to use the number 33, the age that Christ was when he died: “God has given me another chance. I dedicate this number to Him.”

Puig, who was born in Cienfuegos in 1990 and left the Island in 2012 after several attempts has had a profitable career in Major League baseball. In 2019, he became a naturalized American citizen.

With a trajectory that includes participation with teams like the Los Angeles Dodgers, the Cincinnati Reds and the Cleveland Indians (now the Cleveland Guardians), Puig has demonstrated his ability on the mound, his power at bat and his versatility in the field.

This will not be the first time that the 32-year-old player has participated in the Dominican league. The right fielder has had two successful seasons with the Toros del Este, accumulating a total of 16 regular series and 7 postseason (playoff) games in the 2020-2021 and 2021-2022 campaigns. continue reading

As reported on the official website of the Dominican league, “in 7 seasons in Las Mayores, Puig hit for an average of .277, with 132 home runs and an on-base average of .348. He had three consecutive seasons of 20 or more home runs (28,23, 24) from 2017 to 2019.”

The arrival of the athlete to the Eastern Stars for the Dominican baseball championship has been received with enthusiasm by the organization. The general manager of the team, Manny García, stressed that “his experience will be of great help to the many young players we have who will play an important role on our team.”

Yasiel Puig has also left his mark on other baseball leagues, including those of Mexico, South Korea and Puerto Rico.

Translated by Regina Anavy

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Cuban Authorities Promise That It Will Be Possible To Pay in Cash, Except at Hotels

The authorities admit that not all the population has access to electronic payment but say that they should be given the option. (14ymedio)

14ymedio, Madrid, 8 August 2023 — “An hour and a half of more talking about the same thing, pondering a decree that in itself is good but in the general context is useless.” This is the assessment of a reader of the official Cubadebate about the appearance of the president and the vice president of the Central Bank of Cuba (BCC), Joaquín Alonso and Alberto Quiñones, in the television program Mesa Redonda (Roundtable), to explain the process of “bankification,” collecting in a few words the perception of most viewers, judging by the reproaches launched in the parallel forum that the media had foreseen and announced.

The directors of the BCC insisted on what is perhaps the biggest news of this Monday: there will be no “zero cash” operation except in one sector: tourism. At least, for the time being. Both stressed that there will always be exchanges with physical money, among other things, because “not all the population has access to digital media or knows how to use it.”

Quiñones reiterated that what the rule dictates is that all establishments must guarantee the access and use of electronic payment channels, but it does not require their use. “The most important thing is that it is the population and not the seller who chooses the payment channel,” he clarified. That will happen, they vehemently insisted, in ration stores, markets and all kinds of shops, with one exception. “The Tourism sector has decided that all payments in hotels will be electronic. As we move forward, we will empower the population to benefit,” Alonso said.

The directors repeated for the umpteenth time the measures announced last Wednesday and later explained them in the press through interviews – such as the one carried out with the Minister of Internal Trade, Betsy Díaz Velázquez – and question and answer sessions. The greatest space was dedicated to the reasons for the approval of the “bankification” program, the main one being to redirect the economy along a legal path. continue reading

“The transactions in our economy have to be lawful activities, according to the Constitution,” said the president of the BCC. “Therefore, to the extent that operations and transactions are transparent with the bankification process, there will be less room for illegal transactions.”

The theory is good, but the users of the parallel forum did not give credence to the reality, also parallel, in which the authorities seem to live. “When will they realize that all the cash is being dominated by people in the large black and illicit market, who have no relationship with State companies, much less with the MSMEs [micro, small and medium-sized enterprises]?” asked a reader.

Another user directly accused the authorities of not understanding how the economy works. “The MSMEs are not the ones that move the foreign exchange market in cash, no. They develop their exchange rate dynamics through digital channels. (…) You have to know how that market works to understand and propose solutions. You have to understand the measures.”

The population, which has seen double-digit inflation for more than a year, was beginning to notice how some MSMEs managed to lower prices thanks to the increase in supply. The concern about how they are going to import – when buying in foreign currency and selling in pesos, in the absence of an official foreign exchange market – has been revealed in a multitude of comments. “Currently more than 90% of the products that can be purchased is thanks to the MSMEs that have proliferated and are everywhere. State stores are depressed; they do not offer what the population demands. If this measure results in the closure of the MSMEs or a decrease in what they can offer, the people will suffer the consequences, and who knows how great the damage will be,” said one user.

Supported by some graphs that the Cuban economist Pedro Monreal has described as hieroglyphs – the unit of measurement of the economic magnitudes is not shown – the bank directors explained that starting with the Ordering Task* there was an increase in money in circulation, injected by the BCC itself to respond to the higher prices, which was followed by the logical withdrawal because of the higher prices. Then, “the effect of cash outflow and reduction that is not logical in the functioning of the economy began to be distorted.”

With the arrival of the MSMEs, there also has been a setback in the use of banks, and there is a large amount of cash outside the banking system, especially so far this year. Therefore, the State intends to recover it by promoting technology – which must be strengthened – encouraging electronic payments with discounts and benefits, and reminding people that these methods work seven days a week, 24 hours a day.

Cubans seem to know that the idea is desirable but difficult to realize on the Island. “The measure is implemented at a bad time. We are not prepared, and we are not a normal country. Let a few months pass and you will see the consequences,” said another forum member.

Alonso and Quiñones also tried to establish the idea that “bankification is a gradual process.” They repeated this on several occasions and even added that the population demanded the measures, as was seen “in the debates of the recent ordinary session of the National Assembly of People’s Power.” Just a few hours ago, the economist Pedro Monreal, who exposed on his X account (formerly Twitter) his reflections on the measures, defended a completely different idea.

“There has been talk of ’bankification’ for a long time, but a program to implement it did not seem to be urgent. However, the sudden announcement of Central Bank resolution 111/2023 has caused public concern,” he wrote. “The unexpected resolution seems to denote an urgency not observed before. In the July parliamentary session, ’banking’ was barely mentioned, nor did the ’zero cash’ pilot test of the Electric Company, and Cimex did not reveal urgency,” he continued.

The specialist said that the emergency means they are trying to devalue the dollar. “The recent price of the dollar has had an almost vertical trajectory. Between June 22 and August 7, it rose by 19%.”

For Monreal, delaying the situation is vital due to the inflationary effect of transferring the devaluation to the prices of the formal and informal markets and for something less tangible: the general perception of the failure of the Government’s economic recipes. But in this there is no turning back, and the users of the forum organized by the ruling party made it very clear. In the words of one of them: “The Ordering Task was just as optimistic and look at the good it did.”

*Translator’s note: The Ordering Task is a collection of measures that include eliminating the Cuban Convertible Peso (CUC), leaving the Cuban peso as the only national currency, raising prices, raising salaries (but not as much as prices), opening stores that take payment only in hard currency, which must be in the form of specially issued pre-paid debit cards, and a broad range of other measures targeted to different elements of the Cuban economy.

Translated by Regina Anavy

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Suchel Promises Products in Pesos and Demands More Funding From the Cuban Government

The production of Bamboo, which began last April with just four of the seven products that the batch should include, has already been criticized by some customers. (Cubadebate)

14ymedio, Havana, 31 July 2023 — The directors of the joint venture Suchel Camacho will once again put products on the Cuban market in national currency, after almost four years of selling in freely convertible currency (MLC) and through virtual stores. At least the company promised this in an interview published this Monday by Cubadebate, in which it promoted Bamboo, a new line of hygiene products.

According to the managers of this company, after the COVID-19 pandemic and with the implementation of the Ordering Task* in 2021, which brought with it the closure of the peso stores, the industry had to focus on the almost exclusive sale in MLC and through virtual platforms to survive. From that process, Habanabell was born, Suchel’s own electronics store that has generated 15 million dollars in profits so far.

Yaney Cisneros, general director of Suchel Camacho, told the official media that these gains have been used to improve the factory’s equipment and to acquire quality raw materials. In addition, Cisneros predicts that with the Government’s plan to allow State companies to buy foreign currency at an exchange rate of 1 MLC for 120 pesos, Suchel will be able to increase its production, destined for sale in pesos, and fulfill its objective of being “in the home of every Cuban.”

The production manager, Jorge Seoane, explained to Cubadebate how the acquisition of foreign currency works. “The country gives us the currency and with the approved figure we buy it, but at an exchange rate of 120 pesos per dollar,” he said. He also pointed out that the first exchange operations that the society tried to carry out presented problems due to the banking bureaucracy.

Despite the inconveniences, the company has already announced the return of its products to the national showcases. Its new Bamboo line, created specifically to be produced using the new exchange method, includes seven hygiene products – cologne, toothpaste, deodorant, body lotion, shampoo, conditioner and soap – of which four are already available in the stores of the Caribbean chain and through the Cimex Tu Envío platform.

However, Cisneros recognized that the quantities being produced are not enough to meet the demand of the population and do not reach all the provinces. In fact, it’s a brand that, at least for most habaneros, people have not seen anywhere. continue reading

The lack of funding seems to be a key factor that involves the cooperation of the State, judging by the statements of the managers.

“We are struck by how the country sometimes imports finished products of this type instead of allocating that money to national productions. We have presented studies of how much we could do if the same money that is used today to buy toilet and cosmetic products went to our industry,” Cisneros lamented. The official also explained that with the reintroduction of the products the company needs “stability” to recover its former rhythm.

The production of Bamboo, which began last April with just four of the seven products that the batch should include, has already been criticized by some of the readers of Cubadebate.

“Hopefully before the momentum runs out, I will be able to find and buy these much-needed products in Cuban pesos in the east of the country,” said user Ojeda, referring to the commercialization of these products that until now could only be purchased in Pinar del Río, Havana, Mayabeque, Matanzas, Cienfuegos, Villa Clara and Sancti Espíritus, according to the newspaper.

Another Internet user, identified as Truth, was more incredulous. “When I see the sale of products in Cuban pesos, I’ll believe it,” he said. Others spoke out more desperately. “Good statistical work, but what I need is for them to tell me the month and year when I’ll be able to go to a store and buy the toiletries I need in national currency. I can’t stand one more long explanation. Right now the foreign exchange market is history, and nothing has been solved,” said Collin.

The user Sabelotodo complained about the poor distribution of the products and said that he has only been able to find them in Tu Envío La Habana. “So, where does that leave us? Cuba is not just Havana; we all need those personal hygiene products.”

The official newspaper Granma announced last Friday that Suchel had created a “strategic alliance” with Quota, a private professional services company for business development and the creation of alliances. The purpose of this type of society, which has been created between different forms of State and non-State management, is that, while the State company remains at the center of the economy, the micro, small and medium-sized enterprises (SMEs) and other private businesses act as support, occupying a secondary role.

Economist Elías Amor Bravo published on his blog Cubaeconomía an analysis in which he foresees, based on economic criteria, the failure of these associations. “With this type of hindrance and forcing the private sector to pull the ballast of communist inefficiency, it will not make the economy more prosperous. They should rectify this before it’s too late. This path of the socialist State enterprise as the center of the economy is a dead one,” Amor wrote.

For the economist, the rigid and centralized control methods with which State companies operate cause disorganization and lead, ultimately, to an “every man for himself” mentality that cannot compete with private forms of management. “Private actors in Cuba are on a path, by the way, that is increasingly prosperous, and the regime is falling behind,” he concluded.

Translated by Regina Anavy

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‘Bankification’ is Economic Repression in Cuba

Elías Amor Bravo, Economist, August 4, 2023 — Who benefits from the ’bankification’ of the Cuban economy? This question has been going around since the Regime, using an entity at its service, the Central Bank of Cuba, has announced measures that aim to reduce the circulation of cash and get economic actors to use electronic banking services more.

To do this, published in the Official Gazette No. 55 Extraordinary of August 2, 2023, is a resolution that establishes the banking rules relating to limits for collections and cash payments in national currency, their deposit, extraction and possession, and other issues that should not go unnoticed. One of them is the possible threat of confiscation to those who do not comply with the provisions of the rule. The other is the authorization to withdraw cash from ATMs, but only for certain very specific needs, such as salaries, savings accounts, pensions and other personal expenses.

The rest of the resolution is pure heavy artillery from the Central Bank of Cuba, it says, to favor the process of bankification in the country. And even though it is emphasized that the objective is, in principle, to “maintain equality for all the actors of the national economy,” the truth is that the measures adopted have clear asymmetric effects depending on the size or sector of specialization of the economic actors, among others. So it can be expected that problems will appear in applying the new rules, and that the eventual rearrangement of banking flows will not be achieved either.

The Regime points out in the preamble to the resolution that the increase in the use of cash in economic and financial transactions since 2021 has caused a decline in the levels of banking and financial inclusion in the country. Some reflection should lead to an initial conclusion: the entity responsible for that monetary expansion is the Regime itself, with its unbridled public spending, and not the economic actors to whom it is unfairly going to apply the adjustment. continue reading

Therefore, it should be the Regime that sets an example and acts to correct the high costs associated with the issuance, transport, processing and storage of money. In fact, the growing demand for money in a number of ATMs for cash extraction is the direct result of the rampant inflation that exists in the economy and that forces those multiple cash withdrawals in order to face spiraling prices.

The communist Regime creates the problems but applies the adjustment measures to others. Just like that. The increase in the bankification of financial operations, through electronic payment channels, is not intended to improve the service for economic actors nor to meet their growing cash needs. It only makes the adjustment of monetary control fall on the weakest part and conveys a message: here you obey, always, and at any price.

The resolution puts pressure on all economic actors, from State enterprises; senior business management organizations; budgeted units; non-agricultural cooperatives; agricultural cooperatives; agricultural producers; individual small farmers; commercial fishermen; micro, small and medium-sized enterprises [MSMEs]; local development projects; self-employed workers; artists and creators; the modalities of foreign investment and the associative forms created under the protection of the Law of Associations. No one escapes.

Likewise, it is applicable to natural or legal persons not covered by the above, if they carry out legally authorized commercial and service activities. That is, MSMEs are also a target of the measures, in case anyone had any doubts about the coercive action.

The Regime has been in a rush to boost electronic banking operations. Despite the low or no degree of development of these, because Cubans use cash for most transactions in the formal and informal economy, the Central Bank wants this process to be based, as soon as possible, on the digitization of the operations of the banking system within its process of technological modernization.

The communist leaders are convinced that the provision published in the Gazette will accelerate the process of bankification of operations, among them, all the collection and payment relationships of the economic actors that are based on the bank’s payment methods and should be the basis of electronic transactions. They are wrong. It is the eternal obsessive mania of Castroism that an economy can function through the publication of rules in an official gazette. A misconception. The normal thing is to observe what happens in reality, and if it has to be regulated, do it by interfering in the least possible way in those processes. Just the opposite of Castroism, which has been believing for 64 years that an economy can be controlled and directed.

In the face of the disaster of the country’s ATM network, a service that the leaders recognize is not efficient, it is established that the teams will only dispense cash for the debit cards of natural persons associated with salary, savings accounts, pensions and other personal assets. That is, the same exceptional assumptions. The control will be maximum. They warn that if a card of another type is detected, it will be returned and the customer must go to a bank branch.

Shops that offer the sale of goods and services must incorporate the possibility of electronic payment channels, either through the Transfermóvil, EnZona gateways or the Sales Terminal Points. Let’s see how many warehouses in the standard basket incorporate these digital processes for payment. In the face of the growing alarm of the population, the authorities have been forced to declare that cash will not cease to exist, but that the use of electronic payment is promoted, and the “revolutionary principle” insists that no one will be left helpless in the knowledge that not everyone can access these mechanisms.

In the market economy, this type of initiative is usually accompanied by incentives or gifts to users to mobilize and reward their behavior change. Not in Castroism. It insists only that, since they are safer and faster operations, “they must also be a benefit for the population, so they are being studied to continue advancing in the levels of profits, which are issued by banks, a work that is also in conjunction with businesses.” Profits for whom and for what?

In fact, plastic money in Cuba is far behind other countries. The average is 1.4 cards per inhabitant, and in other countries, such as the Dominican Republic, the average is 4.5. This indicates that operations with electronic means do not exceed 200 million per year, a level that is considered low for the level of transactions of the economy as a whole. Behind this deficient result is the low confidence of Cubans in the banking system, where they have had terrible experiences, and its limited attractiveness for the promotion of savings and the sale of investment services, such as mortgages or pension plans, which are prohibited by the communist Regime.

And the truth is that, although the leaders declare that Cuba is governed in its banking practices by international standards and participates in all agreements and conventions, the reality is that there is a long way from saying it to the facts. For example, banking is all state-owned, and the banks are at the service of the Regime, in compliance with an alleged principle of legality, which tends to be blurred in certain contexts and operations. There is no competition between the banks, and they all follow similar procedures. Customer service leaves a lot to be desired. For example, the reading of the ruling of the London court denounced the strange Cuban banking operation. The judge’s ruling made it known that Cuba’s responsibility in the efforts made in the investment of international debt leaves much to be desired.

On the other hand, it is surprising that the deadlines for applying the rule are unnecessarily shortened. It is true that when the conditions are not created, the rule recognizes a period of up to 6 months for cash withdrawals to continue to be made in Cuban pesos to make payments to workers for salaries, premiums, gratuities and other remunerations, as long as you do not have a resident employee payroll. This very short period will lead some actors to prefer other informal channels. The same goes for the maximum limit of 5,000 Cuban pesos per operation for cash collections and payments, a figure that seems to be pulled out of a hat without too much analysis. In fact, it is pointed out that if these operations exceed the figure of 5,000 Cuban pesos, they must be carried out through payment instruments and credit securities other than cash, especially through electronic payment channels.

In addition, the cash income in Cuban pesos received by the subjects of the resolution, as a rule, is deposited in their current accounts no later than the next bank business day from the date of receipt. In the case of non-State forms of management, the deposit made in the account is recognized for tax purposes, while cash withdrawals for the payment of salaries, subsidies and other social security benefits and student loans are made, at the most, three working days before the date established for payment. These deadlines are not understood and do nothing but increase the logical distrust of Cubans in the banks.

Some economic actors have felt trapped in a crude financial “corral” at the wrong time. The financial situation of the Regime must be bad, very bad so that, overnight, under darkness and with treachery, the authorities gave an unexpected turn to their banking system, and the consequences can be dire for the economy.

And to make it clear that this issue is being taken seriously, the communist rule warns the presidents of banks, or the persons to whom they delegate authority in writing, not to suspend banking services or close customers’ accounts, “and to comply with the provisions of the Third and Fourth sections of this Resolution.” These exceptional measures go too far and create a logical alarm, concern and uncertainty among economic actors. Once again, arbitrariness is at the center of decisions in Castroism: the concept of “a repeated rule,” which is not adequately defined and raises many doubts about what it means, how many times and in what way.

Which means it’s not a joke. The resolution launches a full-blown threat. You must necessarily comply with what it establishes, no matter how irrational and inefficient it may be. Otherwise, be willing to lose all the money you have in the bank. It should be noted here that this is a case of confiscation of property outside the provisions of the 2019 communist constitution and the 2022 expropriations law. Where is the public utility or the social interest in these maneuvers of suspension or closure of banking services by the authorities? Castroism is showing its worst face once again. Bankification ends up being economic repression.

Translated by Regina Anavy

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The Lack of Fuel Forces Cars To Be Pushed to Service Stations in Havana

Several drivers push their cars to be able to reach the service station at San Rafael and Infanta on August 5, 2023, in Havana. (14ymedio)

14ymedio, Juan Diego Rodríguez, Havana, 6 August 2023 — It’s noon in Havana and the sun sparkles on the hood of the cars waiting next to the service center of San Rafael and Infanta. The line is already as suffocating as the one last May, when the fuel crisis reached its zenith and the authorities invited drivers to “take advantage” of the wait to “make friends” or “play dominoes” until their turn came.

Now there is no room to even joke about about the situation. The lack of fuel is such that many drivers are forced to endure an ordeal through the streets of Havana: with the help of one or two buddies, they push their cars from their garages to the station.

“Everyone is ’dry’,” lamented a taxi driver who hoped to beat the line, which now crosses San Rafael, turns at Zanja and winds around the block. “We need rationing according to the municipality, which hasn’t been done,” he added, recalling the disastrous measure of the Government that, in the worst of the shortage, prevented fuel from being bought in any establishment in the city.

The endless wait for a turn and the impossible lines — of several hours and in full sun — seemed to have been relieved, but with the arrival of August the situation again reaches a stalemate.

A rickety Kia with broken lights, a Renault with cracked sheet metal and the usual Ladas wait next to cocotaxis and motorcycles. The line makes all vehicles equal and imposes its misery on Havana, a city that – like the cars – no one has the strength to push anymore.

Translated by Regina Anavy

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Hope and Suspicion in Southern Mexico Over the New Migration Center Accord With the United States

Migrants remain hopeful of regularizing their documentation in the municipality of Tapachula, in the state of Chiapas (Mexico). (EFE)

EFE (via 14ymedio), Juan Manuel Blanco, Tapachula, 6 August 2023 — Restlessness and hope grow on Mexico’s border with Central America a week after Washington’s announcement about a new space in southern Mexico to process applications for asylum and employment of migrants seeking to go to the United States.

While some migrants hope to achieve the goal of reaching the United States, activists reject the next “multipurpose international space” of the Mexican Government in Tapachula, on the southern border, because it “denigrates” migrants with new bureaucratic burdens.

The Cuban Dadier Hernández Morfin told EFE that he hopes this center will help migrants reach the United States through legal channels and put an end to the risks and drama that they go through in their exodus.

“Through that we could fulfill our goals and dreams and know that all the sacrifice is not in vain, because it will help us a lot to easily reach the United States,” he said.

“Likewise, it would reduce the risks of migrants losing their lives, being kidnapped, being killed, having their money taken on the way and being tortured,” he added. continue reading

Mexican President Andrés Manuel López Obrador confirmed on Tuesday an agreement with the United States for that government to accept asylum applications from migrants who are already in Mexico, which in turn will install a “multipurpose international space” in the south of the country to serve migrants.

The United States announced last week that it will accept asylum requests from citizens of Cuba, Haiti, Nicaragua and Venezuela who are already in Mexico waiting to cross into the United States, according to an agreement after a meeting in Mexico City between an American delegation and López Obrador.

Despite the novelty, activist Luis Rey García Villagrán, director of the Center for Human Dignity (CDH), argued that the shelters are “denigrating,” and he questioned the usefulness of the new center, which he considered an imposition by the United States.

“The federal (Mexican) government has not yet defined whether this is true or not. We believe that the immigration policy of the United States is domineering. They always want to impose, and the only thing the federal government can do is give work to those who want to work,” he said.

Meanwhile, Rafael Alegría López, defender of the rights of migrants, remarked that a center of this magnitude must be a priority because Tapachula has become “an immigration prison” of corruption and violation of human rights suffered by migrants.

“The migratory flow that the city is experiencing is growing day by day. Three hundred, 400, 800, 2000, 3,000 or 4,000 of various nationalities arrive, so there should be a control when they enter the country,” he added.

The activist asked López Obrador’s government to fulfill its promise to employ migrants, as the president reiterated this week.

“This shelter could show good intention by the Government, but on the other hand it is worrying that, as the greater migratory flow is concentrated, services may become more expensive,” he considered.

The Secretary of Foreign Affairs, Alicia Bárcena, visited Tapachula on Thursday and warned that there are still no definitive details about the site, and she also awaits the collaboration of the UN and other international organizations to treat migrants in a dignified manner.

But García Villagrán commented that, with the new center, they put “let the foxes in the chicken coop,” in reference to the fact that human traffickers [polleros] and organized crime will use it to take advantage of migrants.

The Guatemalan Douglas Brayan Velázquez, whom the United States has deported four times, said that he will try to cross again, despite the risks.

“I would ask the United States Government to behave better with us because they treat us like criminals when we turn ourselves in to Migration. For them we are not emigrants, but criminals, and it’s really hard for us to take,” he complained.

Translated by Regina Anavy

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The UN Donates Materials To Rebuild 20 Poultry Houses Damaged After Hurricane Ian’s Passage Through Cuba

The FAO assured that at least 2,000 Cubans are recovering their livelihoods in Pinar del Río. (FAO)

14ymedio, Havana, 1 August 2023 — The Food and Agriculture Organization of the United Nations (FAO) donated the necessary materials for the rehabilitation of 20 poultry houses in Pinar del Río, whose completion is scheduled for the end of August. The initiative seeks to alleviate the situation of more than 2,000 victims, who were left without “livelihoods” after the scourge of Hurricane Ian in the province, almost a year ago.

In a statement published on Monday, the organization said that the project had the financial support of the Government of Belgium for the purchase of 24 coils of steel wire and their respective hooks. With these inputs, 24,455 metal tiles were manufactured, which were delivered to the Pinar del Río Poultry Company to rebuild eight base business units (UEB) in the municipalities of Pinar del Río, Viñales, Consolación del Sur and Guanes.

The FAO confirmed, together with delegates from the Ministry of Agriculture, that the donation has already benefited 33 workers of the Desa I Unit — of which 17 are women — with the delivery of 7,000 square meters of tiles and 11,041 metal hooks.

The company has nine warehouses for the potential breeding of 140,000 birds, although the FAO pointed out that only four are in the process of rehabilitation and did not clarify whether, in addition, it will provide the animals.

The project is part of the United Nations program in Cuba for the rehabilitation of production for the farmers affected by Hurricane Ian. At the national level, the program added in its statement that it helps about one million people in vulnerable conditions, including children under five years of age and pregnant and lactating women. continue reading

Hurricane Ian, which reached western Cuba in September 2022, devastated much of the Pinar del Río territory, with winds that exceeded 120 miles per hour. In its wake, it left considerable economic losses in infrastructure and agricultural production that, to date, as recognized by the Government, have not been recovered. The damage was particularly significant with regard to tobacco, whose harvest suffered “the biggest blow in its history,” according to the official press.

Recently, Prime Minister Manuel Marrero Cruz acknowledged that the Cuban Government has not been able to recover a third of the housing infrastructure damaged by the hurricane, despite the fact that it’s been almost a year since its passage through the Island. In a meeting with provincial authorities, the official questioned the feeble results “if the resources are in place.”

The official press also reported that in Pinar del Río, only 32% of the 90,394 buildings affected by the climate emergency have been rehabilitated. In Granma province, meanwhile, 103 of the 415 that were damaged have been rebuilt.

Translated by Regina Anavy

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When Havana Was Taken by the ‘Red Coats’

English sailors enter the bay of Havana after its capitulation. (Engraving by Dominique Serres based on the drawings of Lieutenant Philip Orsbridge, in 1762)

14ymedio, Yunior García Aguilera, Madrid, 1 August 2023 — On June 6, 1762, Captain General Juan del Prado Portocarrero saw an impressive English fleet approaching Havana from El Morro. At first he did not believe that it was an attempt at conquest; he assumed it was a mercantile convoy and even sent the soldiers back to their barracks. The mail that came with the news had been intercepted and gripped the partying habaneros. The clumsy Juan del Prado would show that the defense of the Great Antille was, in fact, too great for him.

It was foreseeable that the English would try to take Havana after declaring war on Spain. They had already occupied Martinique, and the Cuban capital constituted a geographical point of great strategic importance. Twenty years earlier, they had unsuccessfully sought to establish a colony in Guantánamo. To top it off, in 1756 the governor of Jamaica had been invited to go for a walk in Havana, as a gesture of goodwill, and returned to London offering detailed plans of the city and its fortifications.

Much has been discussed about whether Havana at that time was uncivilized, impoverished and miserable. Some have maintained that the capture by the English brought, at last, a little progress. Historian Ramiro Guerra dedicated several articles to Francisco José Ponte trying to deny those statements. Guerra strives to show us a French Havana, much more gallant than other capitals of rich viceroyalties, such as Lima and Mexico. The aforementioned sources showed that both wealthy and poor, white, black or mulatto, they were able to ruin their haciendas and their economies in order to show off the latest fashion. As for its population, Guerra tells us that Havana was more populous than any of the thirteen colonies of North America, even doubling New York.

In any case, Havana was a valuable possession for the Spanish crown. And the battle to try to defend it would highlight the mediocrity of some and the heroism of others. Among Juan del Prado’s blunders was that of disabling three ships of his squadron, seeking to block the entrance to the bay. The operation was disastrous. Not only did some men drown during its execution, but they lost their best warships and prevented other ships from going out to fight from the sea. continue reading

However, there is still talk in Cuba of a Creole like Pepe Antonio. The fifty-year-old Cuban, mayor of Guanabacoa, became legendary by carrying out reckless actions, which could be considered machete charges, long before Gómez and Maceo. In a month and a half he inflicted several casualties on the enemy and captured a good number of prisoners. His natural leadership and his unorthodox maneuvers aroused the envy of the inept Spanish colonel Francisco Caro, who dismissed him in a humiliating way. And the legend has it that Pepe died of disgust, a few days later.

Unfortunately, the chauvinism of our historical memory has made us ignore or relegate other brave defenders of Havana to the background. The most notorious case is that of Luis Vicente Velasco de Isla, who died defending El Morro. When the Spanish monarch learned of his feat, he had a statue of him made in Cantabria and minted several medals with his bust. He also ordered that in his royal Navy there should always be a ship with the name of Velasco and created a new noble title: the marquisate of Velasco del Morro, granted to his brother.

But the greatness of a soldier is more noticeable when it is his own enemies who show their admiration. The English were so impressed by his determination and expertise that, after his death, a 24-hour ceasefire was decreed, to bury him with the dignity he deserved. In addition, a monument was erected in his honor in Westminster Abbey itself. And they say that every time the British Navy passed in front of his hometown, salvos were fired in his honor.

Today there is a very small street in Havana that bears his name, parallel to San Isidro. I remember that, in my school texts, Pepe Antonio and his men were highlighted as “the true heroes of the defense,” while they limited themselves to recognizing Velasco as “one of the few Spanish officers who showed courage.” I think that, without minimizing in any way the heroism of the Creole, it is fair to recognize the indisputable prominence of Velasco in that episode of our history.

Translated by Regina Anavy

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