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Cuba Facts is an ongoing
series of succinct fact sheets on various topics, including, but
not limited to, political structure, health, economy, education,
nutrition, labor, business, foreign investment, and demographics,
published and updated on a regular basis by the Cuba Transition
Project staff.
MILITARY INVOLVEMENT IN THE
CUBAN ECONOMY
During the
past few years, the Cuban military has taken an unprecedented role
in running the economy on the island. The loss of Soviet subsidies,
the need to bring order to a crumbling economy and to provide a
role for a military hitherto involved in international activities
has accelerated this trend.
Significant
components of the economy are now directly under military control
or run by present or former military officers. Even the most dynamic,
typically civilian-dominated sectors of the economy are managed
by and directly benefit the armed forces: tourism, agricultural
products, tobacco, import-export services, technology and telecommunications,
construction, free trade zones and manufacturing all have significant
military presence.
- 322 of Cuba’s largest enterprises,
a group with strong associations with the military, accounted for
89% of exports, 59% of tourism earnings, 24% of service revenues,
60% of hard currency wholesale transactions, 66% of hard currency
retail sales, and employed 20% of state workers.(1)
The principal economic entities and sectors
under military control include:
- GAESA (Grupo de Administración
Empresarial, S.A.) is the main holding company of the Ministry of
the Revolutionary Armed Forces (MINFAR) and includes:
o Gaviota S.A. (Tourism): Brig.
Gen. Luis Pérez Róspide
o Aero Gaviota (Air Carrier/Tourism): Col. José
Manuel Borges Vivó
o Cubanacán (Tourism): Manuel Vila
o Tecnotex (Import/Export): Lt. Col. Rene Rojas Rodríguez
o Almacenes Universal (Free Zones in Wajay, Mariel, Cienfuegos,
Santiago): Miguel Angel Hernández Armas
o Almest (Tourism Real Estate): David Pereira Pérez
o Antex (Technical Assistance): Carlos Santiago Martínez
Rodríguez
o Agrotex (Agriculture and Cattle)
o Sasa S.A. (Automobile Repair, Auto Parts): Antonio Luis
Choong Estupiñan
o División Financiera (Tiendas para la Recuperación
de Divisas (TRDs) or “Dollar Stores”): Alexis Mejías
Zamarión
o Sermar (Exploration of Cuban Territorial Waters, Naval
Repairs): Capt. Luis Beltrán Fraga Artileso
o GeoCuba (Cartography, Real Estate, Mining Interests):
Col. Eladio Fernández Cívico
o Complejo Histórico-Militar Morro Cabaña
(Military museums, monuments): Col. Hermán Washington
- Union of Military Industry (UIM):
Col. Luis Bernal León
The UIM encompasses 230 factories and companies. It is estimated
that 32 percent of its production is for civilian sectors of the
economy, while over 75 percent of all repairs and spare parts for
civilian use came from military enterprises. (2)
- Habanos, S.A.: Col. Oscar Basulto
Torres
The exclusive distributor of Cuba’s famed cigars is run by
Col. Oscar Basulto Torres. Habanos, S.A. controls approximately
30% of the worldwide premium market with an average growth in sales
of 22% from 1995-1999. Sales in 2004 were reported at approximately
$300 million dollars. (3)
- Comercio Interior, Mercado Exterior
(CIMEX): Dr. Eduardo Bencomo Zurdo, President; Enrique Sentmanat,
Vice-President (Military affiliated and staffed)
Holding company dealing originally in import/export, which has expanded
to dollar retail establishments (including supermarkets, fast food,
photo developing, car washes, service stations), credit processing,
rental car service, travel agency, real estate, and cable and satellite
television provision services. Annual revenues have been reported
in 2003 at $700 million dollars. (4)
- Citrus Industry: Gen. Rigoberto
García Fernández (Chief of Youth Labor Army)
The largest agricultural crop behind sugar and tobacco and a large
source of revenues. A joint venture between the Cuban government,
largely organized by the Youth Labor Army (EJT), a militarized reserve
workforce, and Israeli BM.
- Instituto Nacional de la Reserva
Estatal (INRE): Brig. Gen. Moisés Sio Wong
Oversees the national strategic reserves (material, financial, military)
in case of emergency as stipulated in Article 128 of the Law of
National Defense, 1994.
- Grupo de la Electrónica:
Comandante de la Revolución Ramiro Valdés Menéndez
Supervises numerous enterprises, the most notable being Copextel,
S.A., a technology holding company comprised of over forty commercial
ventures involved in anything from computer software, Internet service,
small appliances, cellular telephones, restaurants, catering, and
entertainment management.
- Ministry of Tourism (MINTUR): Col. Manuel
Marrero Cruz
Tourism has become the most important sector of the Cuban economy.
2004 revenues estimated at $2.4 billion dollars. (5)
- Ministry of Civil Aviation: Gen. Rogelio
Acevedo González
- Ministry of Sugar (MINAZ): Gen. Ulises
Rosales del Toro
- Ministry of Construction (MINCONS): Fidel
Fernando Figueroa (FAR-trained engineer)
___________________________________________________________________
Notes
1. Espinosa, Juan Carlos and Harding II,
Robert C., “Olive Green Parachutes and Slow Motion Piñatas:
The Cuban Armed Forces in the Economy and in Transition,”
unpublished manuscript.
2. Mora, Frank, “A Comparative Study
of Civil-Military Relations in China and Cuba: The Effects of Bingshang,”
Armed Forces and Society, Winter 2002.
3. Frank, Marc, “A feast for smokers
at Cuba’s social event of year,” Financial Times,
February 24, 2005.
4. Johns, Melissa, “Foreign Investment
in Cuba: Assessing the Legal Landscape,” Boletín
Mexicano de Derecho Comparado, no. 106, 2003.
5. Frank, Marc, “Cuba hits target
of 2 million tourists,” Reuters, December 26, 2004.
The CTP can be contacted at
P.O. Box 248174, Coral Gables, Florida 33124-3010, Tel: 305-284-CUBA
(2822), Fax: 305-284-4875, and by email at ctp.iccas@miami.edu.
The CTP Website is accessible at http://ctp.iccas.miami.edu. |
