How Bacardi Fought Predatory Taxation in Pre-Castro Cuba

BacardiAndTheLongFightForCubaBK2011-02-05.jpg

Source of book image: http://www.nytimes.com/2008/09/21/business/21shelf.html?_r=1

(p. W6) When it comes to chronicling the Bacardi rum dynasty, the best model may be “Buddenbrooks” or some other novelistic attempt to capture the experience of a family business trying to survive across generations. Tom Gjelten’s “Bacardi and the Long Fight for Cuba” — though fact-driven history and far more upbeat that Thomas Mann’s tale of dynastic decline — feels very much in this literary tradition.
. . .
Perhaps the most fascinating figure in the Bacardi tale is José Bosch, called Pepín, a young businessman who also married into the Bacardi family and was an early opponent of Gerardo Machado’s corrupt rule in the 1920s. Machado made Bacardi, one of Cuba’s most successful companies, a target of predatory taxation, but a proposed rum tax was more than the distiller could stand. Bacardi opened new facilities in Mexico and threatened to move its operations there if the tax was enacted. The Cuban legislature dropped the idea — and Bacardi soon found itself with a Mexican distillery it didn’t need, trying to sell a liquor to tequila- quaffing public that didn’t want it.
Bosch was dispatched in 1933 to shut down the Mexican facility, but instead he saved it. “Noticing that Mexicans drank a lot of Coca-Cola,” Mr. Gjelten writes, Bosch urged the company to promote Bacardi-and-Coke cocktails. Observing the rich tradition of Mexican handicrafts, he also suggested that the locals would be more inclined to drink rum if it was sold in the sort of wicker-covered jugs often used for it in Cuba. Sales in 1934 doubled.

For the full review, see:
ALVARO VARGAS LLOSA. “The Family Spirit.” The Wall Street Journal (Fri., September 12, 2008): W6.
(Note: ellipsis added.)

The book being reviewed, is:
Gjelten, Tom. Bacardi and the Long Fight for Cuba: The Biography of a Cause. New York: Viking Penguin, 2008.

Cuban Government Gets Billions by “Exporting” Doctors; Some Defect

RamirezFelixCubanDoctor2011-01-21.jpg “Dr. Felix Ramírez in Gambia in 2008.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A1) Felix Ramírez slipped into an Internet cafe in the West African nation of The Gambia, scoured the Web for contact information for U.S. diplomats, then phoned the U.S. embassy in Banjul, the capital.

He told the receptionist he was an American tourist who had lost his passport, and asked to speak to the visa section. As he waited to be connected, he practiced his script: “I am a Cuban doctor looking to go to America. When can we meet?”
Dr. Ramírez says he was told to go to a crowded Banjul supermarket and to look for a blond woman in a green dress–an American consular official. They circled one another a few times, then began to talk.
That furtive meeting in September 2008 began a journey for the 37-year-old surgeon that ended in May 2009 in Miami, where he became a legal refugee with a shot at citizenship.
Dr. Ramírez is part of a wave of Cubans who have defected to the U.S. since 2006 under the little-known Cuban Medical Professional Parole immigration program, which allows Cuban doctors and some other health workers who are serving their government overseas to enter the U.S. immediately as refugees. Data released to The Wall Street Journal under the Freedom of Information Act shows that, through Dec. 16, 1,574 CMPP visas have been issued by U.S. consulates in 65 countries.
Cuba has been sending medical “brigades” to foreign countries since 1973, helping it to win friends abroad, to back “revolutionary” regimes in places like Ethiopia, Angola and Nicaragua, and perhaps most importantly, to earn hard currency. Communist Party newspaper Granma reported in June that Cuba had 37,041 doctors and other health workers in (p. A12) 77 countries. Estimates of what Cuba earns from its medical teams–revenue that Cuba’s central bank counts as “exports of services”–vary widely, running to as much as $8 billion a year. Many Cubans complain that the brigades have undermined Cuba’s ability to maintain a high standard of health care at home.

For the full story, see:
JOEL MILLMAN. “New Prize in Cold War: Cuban Doctors.” The Wall Street Journal (Sat., JANUARY 15, 2011): A1 & A12.

CubanDefectingDoctorsGraph2011-01-21.jpg

Source of graph: online version of the WSJ article quoted and cited above.

Castro’s Reform: Private Restaurants May Now Have Up to 20 Seats

CubanRestaurant2010-11-14.jpg “Restaurants, . . . , offer limited menus.” Source of caption: print version of the WSJ article quoted and cited below. Source of photo: online version of the WSJ article quoted and cited below.

(p. A18) HAVANA–A package of capitalist reforms from President Raúl Castro is creating something new for many Cubans: uncertainty.

Since 1959, when Fidel Castro rode into Havana atop a tank, the Cuban state has promised its people the certainty of a job, food, education and health care. No one expected to get rich under the arrangement; the old joke here is that people pretend to work, and the government pretends to pay them.
. . .
On the island, where many Cubans have taken to using the word “changes,” rather than “reforms,” to refer to the restructuring, people remain cautious. Some suspect that once the economy recovers and small businesses begin to grow, the Cuban government will tighten the noose on entrepreneurs with stricter regulation and steep taxes.
A restaurant on Calle Animas offers an example of such frustrations. Opened in 1996 after an effort by Fidel Castro to jump-start the domestic economy after the collapse of the Soviet Union, it has never expanded, because of a law that limits privately owned restaurants to only 12 seats. “It’s the rules, you live by them,” the owner says.
Prices are high–about $20 for a lunch with fish from the fixed menu–largely, the owner says, because she can’t find ingredients anywhere except in underground markets, where prices are steep. Under the new rules, private restaurants will be permitted to have up to 20 seats. Still, the owner complains that state-run restaurants in the tourist district, which don’t face such restrictions, have many more than 20 seats.

For the full story, see:
A WSJ Staff Reporter. “Cubans Dip a Toe in Capitalist Waters; As State Cuts Half a Million Jobs, Future Looks Murky to Some; ‘We’re Being Left to Fend for Ourselves’.” The Wall Street Journal (Weds., October 6, 2010): A18.
(Note: ellipses added.)

What Cuba Must Do to Welcome Entrepreneurs

BlancoSerafinCuban2010-0.jpg“Serafin Blanco is the owner of Ñooo! ¡Que Barato!, a huge discount store in Hialeah, Fla., where recent arrivals stock up on $1.99 flip-flops and other items for relatives to resell in Cuba.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A6) “Things move very slowly in Cuba be-(p. A9)cause they are very, very concerned about breaking the balance of power with economic reforms,” said Jorge Sanguinetty, president of the Association for the Study of the Cuban Economy, a research group. “This is the reality. They don’t want to emulate Gorbachev when he started making reforms in Russia and the whole thing came down.”

Mr. Sanguinetty, who served as a senior economic official with the Cuban government until he resigned in June 1966, said that Cuba might be just beginning the long, painstaking process of rebuilding the most basic economic relationships. He noted that Cuba even eliminated accounting schools in the first decade after the 1959 revolution because officials thought money would be unnecessary, and that many Cubans had no experience with credit cards, banks or checks. Now, he said, the government must move forward — with import-export licenses, with clearer communication about rules — if it hopes to make entrepreneurs a vital element of the economy.

For the full story, see:

DAMIEN CAVE. “Near to Cuba, Wary Kin Wait for Proof of a New Path.” The New York Times (Weds., September 22, 2010): A6 & A9.

(Note: the online version of the article is dated September 21, 2010 and has the slightly different title “Near Cuba, Wary Kin Wait for Proof of a New Path.”)

Cuban Communists to Fire Half a Million Workers, But Will Allow Them to Become Piñata Salesmen

CubanStateStreetSweeperInHavana2010-10-01.jpg“A Cuban State worker (center) sweeps the streets in Havana.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A1) Cuba will lay off more than half a million state workers and try to create hundreds of thousands of private-sector jobs, a dramatic attempt by the hemisphere’s only Communist country to shift its nearly bankrupt economy toward a more market-oriented system.

The mass layoffs will take place between now and the end of March, according to a statement issued Monday by the Cuban Workers Federation, the island nation’s only official labor union. Workers will be encouraged to find jobs in Cuba’s tiny private sector instead.
“Our state can’t keep maintaining…bloated payrolls,” the union’s statement said. More than 85% of Cuba’s 5.5 million workers are employed by the state.
. . .
(p. A15) Cubans who decide to go into business for themselves will find a series of obstacles, including very high taxes, lack of access to credit and foreign exchange, bans on advertising, limits on the number of people they can hire, and a litany of small-print government regulations, experts say.
Cuba’s government has a list of 124 “authorized” activities for people who want to employ themselves. Among them: Toy repairman, music teacher, piñata salesman and carpenter. Carpenters are allowed only to “repair existing furniture or make new furniture upon the direct request of a customer.” They cannot make “furniture to sell to the general public.”

For the full story, see:
José de Córdoba and Nicholas Casey. “Cuba Unveils Huge Layoffs in Tilt Toward Free Market.” The Wall Street Journal (Tues., SEPTEMBER 14, 2010): A1 & A15.
(Note: ellipsis added between paragraphs; ellipsis internal to paragraph was in original.)
(Note: the online version of the article has the title “Cuba to Cut State Jobs in Tilt Toward Free Market.”)

CastroPinata2010-10-01.jpg

This particular piñata model is expected to be a hot seller for the new piñata salesmen. Source of photo: http://cdn.smosh.com/smosh-pit/4/pinata-7.jpg

First Castro on “The Simpsons” Repudiated Communism; Now the Real Castro Does the Same

The clip is from the “embed” option of YouTube, and is apparently from The Simpsons episode “The Trouble with Trillions” which Wikipedia says “. . . is the twentieth episode of the ninth season of the animated television series The Simpsons, which originally aired April 5, 1998.”

After viewing the above clip from YouTube, and reading the quote below from the NYT, you may be excused for concluding that the best way to learn what Castro is really thinking is to watch the Simpsons:

(p. A6) Jeffrey Goldberg wrote in his blog for Atlantic magazine that he asked Mr. Castro, . . . , last week if Cuba’s model of Soviet-style Communism was still worth exporting to other countries. “The Cuban model doesn’t even work for us anymore,” Mr. Castro said, according to the report. Mr. Goldberg said that Julia Sweig, a Cuba expert at the Council on Foreign Relations, thought Mr. Castro’s answer was an acknowledgment that the state played too big a role in the economy. The comment appeared to reflect Mr. Castro’s support for the economic reforms instituted by his younger brother, President Raúl Castro.

For the full story, see:
REUTERS. “Cuba: Communist Economic Model Loses a Stalwart Defender.” The New York Times (Thurs., September 9, 2010): A6.
(Note: ellipsis added.)
(Note: the online version of the article has the date September 8, 2010.)

I ran across the Simpson Castro clip on (“The Lede; Blogging the News With Robert Mackey.”)

Cuban Health Care Checkup

(p. A17) . . . it’s a good time to check in on the state of the Cuban health-care system. That’s just what Laurie Garrett, a senior fellow at the Council on Foreign Relations, does in the current issue of Foreign Affairs magazine.
. . .
Slightly more than half of all Cuban physicians work overseas; taxed by the Cuban state at a 66% rate, many of them wind up defecting. Doctors who remain in the country earn about $25 a month. As a result, Ms. Garrett writes, they often take “jobs as taxi drivers or in hotels,” where they can make better money. As for the quality of the doctors, she notes that very few of those who manage to reach the U.S. can gain accreditation here, partly because of the language barrier, partly because of the “stark differences” in medical training. Typically, they wind up working as nurses.
As for the quality of medical treatment in Cuba, Ms. Garrett reports that hospital patients must arrive with their own syringes, towels and bed sheets. Women avoid gynecological exams “because they fear infection from unhygienic equipment and practices.” Rates of cervical cancer have doubled in the past 25 years as the use of Pap tests has fallen by 30%.
And while Cuba’s admirers love to advertise the country’s low infant mortality rate (at least according to the Castro regime’s dubious self-reporting) the flip-side has been a high rate of maternal mortality. “Most deaths,” Ms. Garrett writes, “occur during delivery or within the next 48 hours and are caused by uterine hemorrhage or postpartum sepsis.”

For the full commentary, see:
BRET STEPHENS. “Dr. Berwick and That Fabulous Cuban Health Care; The death march of progressive medicine.” The Wall Street Journal (Sat., JULY 13, 2010): A17.
(Note: ellipses added.)

Reference to the Garrett article:
Garrett, Laurie A. “Castrocare in Crisis; Will Lifting the Embargo Make Things Worse?” Foreign Affairs 89, no. 4 (July/August 2010): 61-73.

April 22nd Was Tenth Anniversary of Democrats’ Infamous Betrayal of Elian Gonzalez

GonzalezElianSeizedOn2000-04-22.jpg“In this April 22, 2000 file photo, Elian Gonzalez is held in a closet by Donato Dalrymple, one of the two men who rescued the boy from the ocean, right, as government officials search the home of Lazaro Gonzalez, early Saturday morning, April 22, 2000, in Miami. Armed federal agents seized Elian Gonzalez from the home of his Miami relatives before dawn Saturday, firing tear gas into an angry crowd as they left the scene with the weeping 6-year-old boy.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.

Yesterday (April 22, 2010) was the tenth anniversary of one of the darkest days in American history—when the Clinton Administration seized a six year old child in order to force him back into the slavery that his mother had died trying to escape.

(p. 7A) MIAMI (AP) – When federal agents stormed a home in the Little Havana community, snatched Elian Gonzalez from his father’s relatives and put him on a path back to his father in Cuba, thousands of Cuban-Americans took to Miami’s streets. Their anger helped give George W. Bush the White House months later and simmered long after that.

. . .
Elian was just shy of his sixth birthday when a fisherman found him floating in an inner tube in the waters off Fort Lauderdale on Thanksgiving 1999. His mother and others drowned trying to reach the U.S.
Elian’s father, who was separated from his mother, remained in Cuba, where he and Fidel Castro’s communist government demanded the boy’s return.
Elian was placed in the home of his great-uncle, Lazaro Gonzalez, while the Miami relatives and other Cuban exiles went to court to fight an order by U.S. immigration officials to return him to Cuba. Janet Reno, President Bill Clinton’s attorney general and a Miami native, insisted the boy belonged with his father.
When talks broke down, she ordered the raid carried out April 22, 2000, the day before Easter. Her then-deputy, current U.S. Attorney General Eric Holder, has said she wept after giving the order.
Associated Press photographer Alan Diaz captured Donato Dalrymple, the fisherman who had found the boy, backing into a bedroom closet with a terrified Elian in his arms as an immigration agent in tactical gear inches away aimed his gun toward them. The image won the Pulitzer Prize and brought criticism of the Justice Department to a frenzy.
. . .
The Cuban government, which tightly controls media access to Elian and his father, said neither is willing to give an interview. A government representative agreed to forward written questions from the AP to Elian, but there has been no response.
Pepe Hernandez, president of the Cuban American National Foundation, said his group predicted in 2000 that Elian would become a prop for the Castro government if he were returned. It was one reason, he said, the group fought for him to be kept in the U.S. and would do it again today, although behind the scenes to avoid negative publicity for the Cuban-American community.
“We knew what this kid was going to be subjected to,” Hernandez said. “And time has proven us right.”

For the full story, see:
JENNIFER KAY and MATT SEDENSKY. “10 years later, few stirred by Elian Gonzalez saga.” Omaha World-Herald (Thurs., April 22, 2010): 7A.
(Note: ellipses added.)
(Note: the online version of the article is dated April 21, 2010 and has the title “10 years after Elian, US players mum or moving on.”)

“The Bus — La Guagua — Always Comes for Those Who Wait”

HerreraCarmen2010-01-24.JPG “Carmen Herrera in her Manhattan loft, surrounded by her art. She sold her first work in 2004.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 1) Under a skylight in her tin-ceilinged loft near Union Square in Manhattan, the abstract painter Carmen Herrera, 94, nursed a flute of Champagne last week, sitting regally in the wheelchair she resents.

After six decades of very private painting, Ms. Herrera sold her first artwork five years ago, at 89. Now, at a small ceremony in her honor, she was basking in the realization that her career had finally, undeniably, taken off. As cameras flashed, she extended long, Giacomettiesque fingers to accept an art foundation’s lifetime achievement award from the director of the Walker Art Center in Minneapolis.
Her good friend, the painter Tony Bechara, raised a glass. “We have a saying in Puerto Rico,” he said. “The bus — la guagua — always comes for those who wait.”
And the Cuban-born Ms. Herrera, laughing gustily, responded, “Well, Tony, I’ve been at the bus stop for 94 years!”
Since that first sale in 2004, collectors have avidly pursued Ms. Herrera, and her radiantly ascetic paintings have entered the permanent collections of institutions like the Museum of Modern Art, the Hirshhorn Museum and the Tate Modern. Last year, MoMA included her in a pantheon of Latin American artists on exhibition. And this summer, during a retro-(p. 29)spective show in England, The Observer of London called Ms. Herrera the discovery of the decade, asking, “How can we have missed these beautiful compositions?”
In a word, Ms. Herrera, a nonagenarian homebound painter with arthritis, is hot. In an era when the art world idolizes, and often richly rewards, the young and the new, she embodies a different, much rarer kind of success, that of the artist long overlooked by the market, and by history, who persevered because she had no choice.
“I do it because I have to do it; it’s a compulsion that also gives me pleasure,” she said of painting. “I never in my life had any idea of money and I thought fame was a very vulgar thing. So I just worked and waited. And at the end of my life, I’m getting a lot of recognition, to my amazement and my pleasure, actually.”
. . .
But Ms. Herrera is less expansive about her own art, discussing it with a minimalism redolent of the work. “Paintings speak for themselves,” she said. Geometry and color have been the head and the heart of her work, she added, describing a lifelong quest to pare down her paintings to their essence, like visual haiku.
Asked how she would describe to a student a painting like “Blanco y Verde” (1966) — a canvas of white interrupted by an inverted green triangle — she said, “I wouldn’t have a student.” To a sweet, inquiring child, then? “I’d give him some candy so he’d rot his teeth.”
When pressed about what looks to some like a sensual female shape in the painting, she said: “Look, to me it was white, beautiful white, and then the white was shrieking for the green, and the little triangle created a force field. People see very sexy things — dirty minds! — but to me sex is sex, and triangles are triangles.”
. . .
Ms. Herrera’s late-in-life success has stunned her in many ways. Her larger works now sell for $30,000, and one painting commanded $44,000 — sums unimaginable when she was, say, in her 80s. “I have more money now than I ever had in my life,” she said.
Not that she is succumbing to a life of leisure. At a long table where she peers out over East 19th Street “like a French concierge,” Ms. Herrera, because she must, continues to draw and paint. “Only my love of the straight line keeps me going,” she said.

For the full story, see:
DEBORAH SONTAG. “At 94, She’s the Hot New Thing in Painting, and Enjoying It.” The New York Times, First Section (Sun., January 20, 2010): 1 & 29.
(Note: the online version of the article has the title “At 94, She’s the Hot New Thing in Painting” and is dated January 19, 2010.)

HerreraCarmenBlancoYVerde2010-01-24.JPG
HerreraCarmenRedStar2010-01-24.JPG

Ms. Herrara’s “”Blanco y Verde” (1966-7).”

“Ms. Herrera’s “Red Star” from 1949.”

Source of captions and photos: online version of the NYT article quoted and cited above.

Castro Agents Beat Up Cuban Blogger

SanchezYoaniCubanBlogger2009-12-19.jpg“Blogger Yoani Sánchez speaks at home in Havana on Monday, days after she says she was beaten by Cuban agents.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A14) Yoani Sánchez, Cuba’s most prominent dissident blogger, was walking along a Havana street last Friday along with two other bloggers and a friend when two men she says were Cuban agents in civilian clothes forced her inside an unmarked black car and beat her, telling her to stop criticizing the government.

The assault, believed to be the first against the growing blogger movement on the island, has cast a spotlight on the country’s record of repression, highlighting how little change there has been in political freedoms during the nearly three years since Raúl Castro took over as president from retired dictator Fidel Castro.
A decline in tourism revenues from the global recession and damage from several hurricanes last year have prompted the island’s government to clamp down even harder on dissent and freedom of speech, according to a recent report by the Inter American Press Association, a watchdog group.
The group said Cuba currently has 26 journalists in jail, and it cited 102 incidents against Cuban journalists in the past year, including beatings, arbitrary arrests and death threats.

For the full story, see:
DAVID LUHNOW. “Beating Rattles Cuban Bloggers.” The Wall Street Journal (Weds., NOVEMBER 11, 2009): A14.
(Note: the online version of the article is dated NOVEMBER 12, 2009.)