the information revolution in the caribbean - stanford university

The Information Revolution in Cuba

Although our team was officially listed as the "Caribbean" group, Cuba has been the focus of ourresearch.

Findings:

The development of the Internet in Cuba is a fascinating topic because the setting is unique.The combination of government and economic forces in Cuba is truly unlike any other nation in theworld. Although Cuba is in many ways similar to other Latin American countries (on an economic andtechnological scale, for example), the political system and foreign policy separate Cuba from the rest ofLatin America.

There are many obstacles to the development of the Internet in Cuba.By far, the greatest obstacle is the restriction imposed by the government. In addition, economic realitylimits the extent to which the Internet can penetrate Cuban society. The weak telecommunicationsinfrastructure also prevents full realization of the potential of the Internet. Cuba also faces uniqueobstacles, such as the efforts of angry exiled "hackers" who attack Cuba's computer systems.

Despite these obstacles, the Internet in Cuba will continue to grow and may someday flourish.The political climate in Cuba has changed noticeably in the recent past, and we anticipate further openingin the future. Certainly, the efforts of non-governmental organizations to advance the rights of freedomand expression will have an impact on Cuban society. Our final presentation includes a discussion ofwhy, beyond the political ramifications, the future of the Internet in Cuba may be bright.

First Presentation

Slides

Educational Opportunities and Technical Capacity❍

Access and Labor Markets❍

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Links to data●

The Information Revolution in the Caribbean

http://www.stanford.edu/~mlo/carib/caribmain.html (1 of 3) [12/13/1999 4:34:27 PM]

Second Presentation

Slides●

Links to data●

Final Presentation

Slides

Overview, NGOs, Obstacles & Opportunities❍

Commercial Venture Case Study; Conclusion❍

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Links to data●

Links

Course-related:

For general information about the class, and to find links for other countries, visit the coursehomepage for CS377C/CLAS194.

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The Caribbean & the Internet:

The Network Startup Resource Center (NSRC), a non-profit organization, has been involved forthe past decade with the deployment and integration of appropriate networking technology invarious projects throughout Asia, Africa, Latin America and the Caribbean, the Middle East, andOceania. Visit NSRC's Cuba page for some information about internet access in Cuba.

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The Caribbean University Network was launched in 1991 with the goal of helping Caribbeaneducational and scientific institutions access the internet. CUNet recently gained support from theOAS for implementation of its Phase II plan.

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The Internet in Cuba:

Steve Kettmann's article in Wired News (4/30/99) discusses the use of e-mail at the University ofHavana.

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Vito Echevarria's article in Wired News (9/7/99) discusses internet infrastructure and the future ofWebTV in Cuba.

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Cuba in general:

The CIA Factbook provides basic geopraphic and statistical information about Cuba.●

Cubaweb covers all major issues in Cuba today. Topics include news, business, politics, culture,tourism, and technology.

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CubaNet is a non-profit organization that supports freedom of the press and attempts to inform theworld about Cuba.

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Visit Latinworld's Cuba page for some information and directories.●



http://www.stanford.edu/class/las194/

http://www.stanford.edu/class/las194/

http://www.nsrc.org/db/lookup/ISO=CU

http://www.redhucyt.oas.org/webing/cunet.htm

http://www.wired.com/news/culture/0,1284,19402,00.html

http://www.wired.com/news/culture/0,1284,19402,00.html

http://www.wired.com/news/business/0,1367,21596,00.html

http://www.wired.com/news/business/0,1367,21596,00.html

http://www.odci.gov/cia/publications/factbook/cu.html

http://www.cubaweb.cu/index.shtml

http://www.cubanet.org/

http://www.latinworld.com/caribe/cuba/internet/

The University of Texas offers a wealth of information about Latin America online throughLANIC - Latin American Network Information Center. Check out LANIC's Cuba page

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The Caribbean in general:

Visit The Georgetown University Caribbean Project for information a variety of policy issues inthe Caribbean.

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We would like to extend special thanks to Taylor C. Boas for the guidance of his thesis,"www.cubalibre.cu? - Transnational Networking and the Impact of the Internet on Non-DemocraticRule" (1999).

Brought to you by Matt Light-Oglander and Martin Gavrilov. Please send us your questions, comments,and suggestions for improving our site.



http://info.lanic.utexas.edu/la/cb/cuba/

http://sfswww.georgetown.edu/sfs/programs/clas/Caribe/main.htm

mailto:[email protected]


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Opportunities

http://www.stanford.edu/~mlo/carib/slides/onoo/sld007.htm [12/13/1999 4:34:41 PM]

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Overview - Cuba


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NGOs - Conflict of Ideas


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NGOs - CubaNet


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NGOs - Hermanos al Rescate


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NGOs - Directorio


Overview - Cuba12/4/99

Click here to start

Table of Contents

Overview - Cuba


NGOs - CubaNet


NGOs - Directorio

Obstacles

Opportunities

Author: Matt Oglander

Email: [email protected]

Home Page:www.stanford.edu/~mlo/carib/caribmain.html

Overview - Cuba

http://www.stanford.edu/~mlo/carib/slides/onoo/index.htm [12/13/1999 4:35:28 PM]



Hermanos Al Rescate -- www.hermanos.org●

Organization devoted torescue those who flee Cuba❍

advocate human rights and national solidarity; support dissidents within the island❍

promote nonviolent National Civic Defiance to bring democracy and sovereignty to Cuba.❍

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Famous for the February 24, 1996 incident inwhich two of their planes were shot down byCuban planes, killing 4.

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According to their "Plan For National CivicDefiance"

success depends on communication networks❍

assistance in communication most likely to come from exiles❍

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Previous slide Next slide Back to first slide View graphic version


http://www.stanford.edu/~mlo/carib/slides/onoo/tsld004.htm [12/13/1999 4:35:32 PM]

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Obstacles


Opportunities

Unique level of ControlLack of US presence in market leaves Cuba uniquely able to control how the Internet will beused.

❍

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Goals other than moneyLack of market competition allows the Internet to serve social rather than financial interests.❍

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Cuba as an IslandDesire for connection to other societies❍

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Education keyCuban government strongly promotes computer-education.❍

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State control over workersmakes the "seed corn" problem less harmful.❍

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Previous slide Back to first slide View graphic version

Opportunities


NGOs - CubaNet

Cubanet -- http://www.cubanet.org/●

Uses the internet to transmit news about Cubaaround the world.

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Stated goals are to:foster free press in Cuba❍

assists its independent sector to develop a civil society❍

inform the world about Cuba's reality❍

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Typical of the approach of US-based NGOstoward Cuba

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Receives funding from the United States Agencyfor International Development (USAID)

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NGOs - CubaNet



Cuba's government restricts NGO operation●

U.S. Policy regarding NGOs --1992 Cuban Democracy Act (Torricelli Act)❍

to "provide assistance, through appropriate NGOs, for the support of individuals andorganization to promote nonviolent democratic change in Cuba."

❍

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Concepts of "civil society"ìbottom-upî (grassroots)❍

ìtop-downî (state control)❍

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Overview - Cuba

Island nation 90 mi. south of Florida in theCaribbean Sea.

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Total population is approximately 11 million.●

Since 1959, Cuba's government has beendominated by Fidel Castro's Communist regime,which has exercised strict control over theeconomy as well as the media.

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The U.S. has maintained a trade embargoagainst Cuba Since the 1960s.

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Despite efforts to modernize the telecominfrastructure, it remains a weak point.

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Roughly 20,000 Cubans have an email address.(less than 0.2%)

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Monthly charges range from $15 for six hours oflow-speed connection to as much as $560 forunlimited high-speed access

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Average wage is approximately $20 a month.●

Tourism industry leading the way for internetdevelopment and economic growth in general.

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Overview - Cuba

http://www.stanford.edu/~mlo/carib/slides/onoo/tsld001.htm (1 of 2) [12/13/1999 4:36:34 PM]

Next slide Back to first slide View graphic version

Overview - Cuba

http://www.stanford.edu/~mlo/carib/slides/onoo/tsld001.htm (2 of 2) [12/13/1999 4:36:34 PM]

Obstacles

- Poor Infrastructure:especially weak telephone system❍

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- Income:most Cubans simply cannot afford internet access❍

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- Government policiesrestrict internet access and use❍

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- Unique Opposition: anti-Castro exilesExiles hack CubaWeb (1996)❍

Targeted Virii❍

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Obstacles


NGOs - Directorio

Directorio Revolucionario Democratico Cubano-- www.directorio.org

believes that the fight against dictatorship to restore democracy must come from inside ofCuba.

❍

has supported the dissident and opposition movement inside of Cuba❍

has acted as a vehicle for reporting human rights violations and denouncing the Cubangovernment from within.

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DRDC has 3 main goals:To rescue the Cuban national culture❍

To promote freedom and democracy in Cuba in the face of the current dictatorship.❍

To get the Cuban youth, both inside and outside of Cuba, actively involved in the process ofeliminating the dictatorship and establishing a new system of government in Cuba.

❍

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NGOs - Directorio


Technical Capacity, I10/26/99

Click here to start

Table of Contents

Technical Capacity, I

Technical Capacity, II

Technical Capacity, III

Educational Opportunities, I

Educational Opportunities, II

Educational Opportunities, III

Author: Academic Computing


Download presentation source


http://www.stanford.edu/~mlo/carib/slides/ed-tech/index.htm [12/13/1999 4:36:44 PM]


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http://www.stanford.edu/~mlo/carib/slides/ed-tech/sld001.htm [12/13/1999 4:37:32 PM]

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Traditional emphasis on education at all levels●

General educationcompulsory education through the 9th grade❍

illiteracy rate of 3-6%❍

7% of the population has graduated from college and 11% from technical schools❍

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http://www.stanford.edu/~mlo/carib/slides/ed-tech/tsld004.htm [12/13/1999 4:38:34 PM]


Training the Support PersonnelClasses provided by some of the ISPs❍

Most is learned on the job❍

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Training the UsersNatio nwide organization of Youth Computer Clubs in 164 municipalities (out of 169 total)providing free and unstructured Net access. Email access available to everyone, everywhere

❍

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http://www.stanford.edu/~mlo/carib/slides/ed-tech/ole

http://www.stanford.edu/~mlo/carib/slides/ed-tech/ole (1 of 46) [12/13/1999 4:38:47 PM]

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Four network providers (ISPs):CENIAI❍

RENACYT❍

Teledatos❍

Infomed❍

●

Small IP connectivity -- around 100 users●

UUCP-email relatively common and accessible:health sector, government, YCC

●





The only IP link to the Internet is 64kb/sconnection to Sprint in the US

●

Traffic has outgrown the connectionÌs capacity.Hoping for an upgrade the Sprint link to 256kb/s.

●

Partnership with US companies impeded by theUS embargo

●





Arguably the worst telecommunicationinfrastructure in Latin America and theCaribbean

●

Concentrated on internal development ratherthan international connectivity

●

Connectivity based on the UUCP and X.25protocols -- outdated and poorly suited to IPtraffic

●





Strong technical education1.8 scientists and engineers per 1,000 population❍

40 universities and other centers of higher education❍

over 200 research and development centers❍

1.17% of GDP devoted to technological research and development.❍

●




Cuba and the Information Revolution10/30/99

Click here to start

Table of Contents

Cuba and the Information Revolution

Access

Access

Censorship vs. Restricted Access

Access: Political control vs. economicbenefit

Access: Dictatorís dilemma

Labor Markets



Home Page:http://www.stanford.edu/~mlo/carib/caribmain.html



http://www.stanford.edu/~mlo/carib/slides/acc-lab/index.htm [12/13/1999 4:39:02 PM]


of 7


http://www.stanford.edu/~mlo/carib/slides/acc-lab/sld001.htm [12/13/1999 4:39:28 PM]

of 7

Access


of 7



of 7

Access: Political control vs. economic benefit


of 7

Labor Markets



Cubaís strategy is constrainedResistance to political reform via strict control of all media❍

●

Concerns over subversive potential of internet are strengthened by goals of US policy❍

❍

View of globalization drawn from Marxist/Leninist philosophy❍

❍

Technological limitations prevent Cuba from implementing censorship on a scale similar toChina

❍

●



http://www.stanford.edu/~mlo/carib/slides/acc-lab/tsld004.htm [12/13/1999 4:41:11 PM]

of 7



Labor Markets

Brain Drain●

ìEl Duqueî●

Absence of information/service sector●

Govít control: possible advantage?●


Labor Markets


ÐÏà¡±á>þÿ )þÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿýÿÿÿ(

http://www.stanford.edu/~mlo/carib/slides/acc-lab/Cuba slides

http://www.stanford.edu/~mlo/carib/slides/acc-lab/Cuba slides (1 of 47) [12/13/1999 4:41:36 PM]

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¡þªóŸ¨Access¡*þþŸ¨çUsual pattern of access growth is:



1. early research/experimentation in networking among academic/scientific communities

2. emergence of commercial ISPs

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example: China has a huge emerging market, Cuba's is small, unsteady, highly restricted¡v$‚#þþ*þþPþ



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Concerns over subversive potential of internet are strengthened by goals of US policy

View of globalization drawn from Marxist/Leninist philosophy

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UsedDesign TemplateSlide Titles˜ 6>_PID_GUID'AN{F1DA9980-8A23-11D3-AC45-972D74891AA4}CurrentUserÿÿÿÿÿÿÿÿÿÿÿÿ-ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿþÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿö%_À‘ã](ôMatt Oglander



Access

Steps 2 and 3 can't occur in Cuba!●

process depends on existence of a market❍

❍

example: China has a huge emerging market, Cuba's is small, unsteady, highly restricted❍

●


Access


Access

Usual pattern of access growth is:●

1. early research/experimentation in networking among academic/scientific communities❍

●

2. emergence of commercial ISPs❍

●

3. explosive growth of infrastructure guided by "invisible hand" of market❍

●


Access


Cuba and the Information RevolutionObstacles and Opportunities





Conflict of interest:Exploit internet for economic gain, risk political effects

or■

❍

Clamp down while foregoing economic gain❍

❍

●

3 choicesLaissez-faire❍

Regulation (content)❍

Regulation (access)❍

●




Access: Political control vs. economicbenefit

China●

Encourage widespread access❍

❍

Let market direct pattern of growth❍

●

Cuba●

Shouldnít be expected to promote widespread access❍

❍

Wonít let market direct growth❍

●


Access: Political control vs. economic benefit


Sources for first presentation:http://som.csudh.edu/cis/lpress/devnat/nations/cuba/index.htm●

http://som.csudh.edu/cis/lpress/ieee.htm●

http://www.link.no/IPS/eng/cat/ED.html (full text athttp://burn.ucsd.edu/archives/chiapas-l/1998.12/msg00412.html)

●

http://www.latinolink.com/news/news98/0403ncub.htm●

http://library.advanced.org/18355/education_in_cuba.html●

http://www.worldwide.edu/ci/cuba/●

http://www.unesco.org/iau/educcu.html●

http://www.georgetown.edu/sfs/programs/clas/Caribe/bp13.htm●

http://www.hotwired.com/collections/censorship/6.02_cuba_internet1.html●

http://www.ciponline.org/articles.htm●

http://www.stanford.edu/~mlo/carib/datalinks.html [12/13/1999 4:41:52 PM]

http://som.csudh.edu/cis/lpress/devnat/nations/cuba/index.htm

http://som.csudh.edu/cis/lpress/ieee.htm

http://www.link.no/IPS/eng/cat/ED.html

http://burn.ucsd.edu/archives/chiapas-l/1998.12/msg00412.html

http://www.latinolink.com/news/news98/0403ncub.htm

http://library.advanced.org/18355/education_in_cuba.html

http://www.worldwide.edu/ci/cuba/

http://www.unesco.org/iau/educcu.html

http://www.georgetown.edu/sfs/programs/clas/Caribe/bp13.htm

http://www.hotwired.com/collections/censorship/6.02_cuba_internet1.html

http://www.ciponline.org/articles.htm

Presentation #211/10/99

Click here to start

Table of Contents

Cuban Legislature

Cuban Politics

Cuban Labor and Environment Regulations

Effect of Government Policies: US

Sources of Financing

Investment Infrastructure

Private Sector




Presentation #2

http://www.stanford.edu/~mlo/carib/slides/secondpres/index.htm [12/13/1999 4:41:53 PM]


of 7

Cuban Legislature

http://www.stanford.edu/~mlo/carib/slides/secondpres/sld001.htm [12/13/1999 4:42:02 PM]

of 7

Cuban Politics


of 7



of 7

Private Sector



Embargo since early 1960s●

Cuban Democracy Act of 1992●

Helms-Burton Act (ìCuban Liberty andDemocratic Solidarity Actî of 1996)

Title III suspension -- to "expedite a transition to democracy in Cuba"❍

Title IV enforcement -- based on ìthe principle of respect for the property rights of U.S.citizens.î

❍

●



http://www.stanford.edu/~mlo/carib/slides/secondpres/tsld004.htm [12/13/1999 4:42:22 PM]

of 7



Private Sector

Havana in 1993 legalized self-employment forsome 150 occupations, in order to:

provide jobs for workers laid off due to the economic crisis❍

furnish services the government was having difficulty providing❍

try to bring some forms of black market activity into legal--and thereforecontrollable--channels

❍

●

The government tightly controls the privatesector by regulating and taxing it

Monthly fees (regardless of income)❍

Service restrictions❍

Strict inspections (stiff fines)❍

●


Private Sector


ÐÏà¡±á>þÿ .þÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿýÿÿÿ-

http://www.stanford.edu/~mlo/carib/slides/secondpres/slides

http://www.stanford.edu/~mlo/carib/slides/secondpres/slides (1 of 46) [12/13/1999 4:42:26 PM]

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Cuban Labor and EnvironmentRegulations

Typically, investments in Third World countriesare sought because of fewer environmentalrestrictions and labor protection

●

This is not the case in Cuba:Investors required to provide for waste disposal and sound land use❍

Workers are hired through the state. They can challenge a dismissal as unfair ordiscriminatory.

❍

Discrimination on basis of race, sex or ethnicity is prohibited in Cuban and foreigncompanies

❍

●




Cuban Politics

Cubaís emphasis remains on internaldevelopment

●

Curbing the network access of NGOs (fear ofsubversion)

●

Imposing control over Internet content likeFrance, China, Germany (through regulatoryagencies) and Vietnam and Singapore (throughcentralizing traffic)

●

Imposing control over Internet access andcontent by setting up a local copy of the Net

●

In 1996 Decree-Law 209 issued creating aInter-Ministerial Commission to regulate accessand manage networking (compare with bigcapital in rest of Latin America)

●


Cuban Politics


Cuban Legislature

Joint ventures permitted since 1982 (max 49%share)

●

1992 Cuban constitution modified, to recognizenew forms of property

●

1992 foreign corporations allowed to repatriateprofits

●

1993 telecommunications privatized throughjoint venture (29.9% owned by the Italian STET)

●

1995 investment permitted up to 100%●

Investors guaranteed full protection, allowed toremove profits in hard currency

●

1996 law passed reducing tariffs on importedgoods

●

1996 law established free trade zones, industrialparks, with associated tax breaks

●


Cuban Legislature



Cuba's internet investment infrastructure isweak, but growing. Two promising groups haveyet to establish a web presence:

ìSilicon Calleî

coming soon: "www.siliconcalle.com"■

❍

ìCUBA Investments Securities Corp.î : New Web Site in 2000❍

●

●

Cuba Economic Newsreports on Cuba's economy❍

investment information for potential investors.❍

●





GovernmentNo access to credit from intíl financial institutions like the World Bank.❍

Because of its poor credit rating, an $11 billion hard currency debt, and the risks associatedwith Cuban investment, interest rates are high.

❍

●

Foreign InvestmentBig foreign investors are Canada, Mexico, Spain, UK, Italy, France❍

Many major trading partners -- Canada is a prime example -- reject US attempts to regulatetheir business and ignore Helms-Burton.

❍

telecommunications is the #1 industry❍

●

NGOsForeign NGOs providing basis for funding networks❍

CIDA provides funding❍

USAID could help fund NGOs!❍

❍

●




Sources for second presentation:Internet CUBA - http://www.cybercuba.com/InternetCUBA.html●

US State Department Cuba Site - http://www.state.gov/www/regions/wha/cuba/index.html●

Text of Helms-Burton Act - http://www.state.gov/www/regions/wha/cuba/helms-burton-act.html●

Foreign Investment in Cuba by Country - http://www.cubatrade.org/foreign.html●

Compilation of news and info relating to Cuban business - http://www.cubabiz.com/●

US and international trade policy toward Cuba -http://www.dfait-maeci.gc.ca/english/foreignp/dfait/policy_papers/1993/93_04_e/s8.html

●

Cuban Trade and Economic Overview -http://www.dfait-maeci.gc.ca/geo/html_documents/cubatrad-e.htm

●

One example of an NGO active in Cuba - http://www.canurb.com/ipo/cuba_5.htm●

Press, Larry. “Cuban Telecommunication Infrastructure and Investment.”, presented at theConference of the Association for the Study of the Cuban Economy, Miami, FL, August, 1996.http://som.csudh.edu/cis/lpress/devnat/nations/cuba/asce.htm

●

Press, Larry, "Cuba," in The MOSAIC Group, The Global Diffusion of the Internet Project, AnInitial Inductive Study, March 1998.http://som.csudh.edu/cis/lpress/devnat/nations/cuba/cubasy.htm

●

Valdés, Nelson P. “Cuba, the Internet, and U.S. Policy”, The Cuba Briefing Paper Series, Number13, March 1997http://www.georgetown.edu/sfs/programs/clas/Caribe/bp13.htm

●

"Cuba in Transition" Proceedings of the Annual Meetings of the Association for the Study of theCuban Economy (ASCE)http://www.lanic.utexas.edu/la/cb/cuba/asce/

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Gordon, Joy. "Cuba's Entrepreneurial Socialism" The Atlantic Monthly, Jan 1997.http://www.theatlantic.com//issues/97jan/cuba/cuba.htm

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Cuba Reference Desk. Economy section.http://lanic.utexas.edu/la/cb/cuba/

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http://www.stanford.edu/~mlo/carib/datalinks2.html [12/13/1999 4:42:35 PM]

http://www.cybercuba.com/InternetCUBA.html

http://www.state.gov/www/regions/wha/cuba/index.html

http://www.state.gov/www/regions/wha/cuba/helms-burton-act.html

http://www.cubatrade.org/foreign.html

http://www.cubabiz.com/

http://www.dfait-maeci.gc.ca/english/foreignp/dfait/policy_papers/1993/93_04_e/s8.html

http://www.dfait-maeci.gc.ca/english/foreignp/dfait/policy_papers/1993/93_04_e/s8.html

http://www.dfait-maeci.gc.ca/geo/html_documents/cubatrad-e.htm

http://www.dfait-maeci.gc.ca/geo/html_documents/cubatrad-e.htm

http://www.canurb.com/ipo/cuba_5.htm

http://som.csudh.edu/cis/lpress/devnat/nations/cuba/asce.htm

http://som.csudh.edu/cis/lpress/devnat/nations/cuba/cubasy.htm

http://www.georgetown.edu/sfs/programs/clas/Caribe/bp13.htm

http://www.lanic.utexas.edu/la/cb/cuba/asce/

http://www.theatlantic.com//issues/97jan/cuba/cuba.htm

http://lanic.utexas.edu/la/cb/cuba/

Cuba specifics, Internal12/2/99

Click here to start

Table of Contents

Cuba specifics, Internal

Cuba specifics, External

Telecom Industry Background, I

Telecom Industry Background, II

Telecom Industry History, I

Telecom Industry History, II

Telecom Industry History, III

Cuba Today

Conclusion

Author: Academic Computing




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http://www.stanford.edu/~mlo/carib/slides/comc/sld001.htm [12/13/1999 4:42:39 PM]

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http://www.stanford.edu/~mlo/carib/slides/comc/sld002.htm [12/13/1999 4:42:42 PM]

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http://www.stanford.edu/~mlo/carib/slides/comc/sld003.htm [12/16/1999 11:38:29 AM]

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Conclusion



Current demand for calls is around $250 millionper year. Dramatic increase expected if the UStrade embargo is revoked.

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Potential that Cuba becomes a center for cablecommunications between the U.S. and theCaribbean, and later the hub of aU.S./Caribbean/Central America/South Americaloop.

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The Cuban national phone company Empresade Telecomunicaciones del Cuba, S. A.(ETECSA) has inherited assets of thenationalized Cuban Telephone Company, an ITTsubsidiary. The US-based ITT has anoutstanding claim for $131 million against theCuban Government.

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http://www.stanford.edu/~mlo/carib/slides/comc/tsld004.htm [12/16/1999 11:38:34 AM]

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Cuba Today


Conclusion

Cuba is one of the most promising countries inLatin America

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CubaÌs networking is not that different frommuch of Latin America, where networking hasbeen centralized by private capital (due theNetÌs commercialization and the presence offoreign capital).

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Market globalization makes possible theemergence of few big players which will controlthe future of Latin America.

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Conclusion


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http://www.stanford.edu/~mlo/carib/slides/comc/present3

http://www.stanford.edu/~mlo/carib/slides/comc/present3 (1 of 63) [12/16/1999 11:39:18 AM]

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well as political levels: concentration on internal development, rather than external connectionsThe best educational system in Latin America Strong technical education (40 universities, over 200 R&D centers)Good labor and environmental protectionTelecommunications seen as national priority. The beneficiaries are the hard-currency generating industries (tourismand biotechnology).°Rîí…x•œ•œÛü®Cuba specifics, External°üÝjLost economic partners in the Socialist Block and the USSRPolitical tensions between Cuba and the U.S.The Cuban Democracy Act of 1992 calls for improving info exchanges. Authorizes US-based communications companies toshare revenues with Cuba s national phone company ETECSA.The Cuban Liberty and Democratic Solidarity Act of 1996 amends the Cuban Democracy Act in restricting communicationinvestment.The Helms-Burton Act of 1996. EU brings an action against U.S. before the WTO and introduces retaliatorylegislation. Canada and Mexico passed retaliatory legislation as well. The effect of the embargo for Cuba is devastating while the U.S. looses an estimated $1-$2 billion in export.°Lhí…Ní…h%•œ!Ûü®Telecom Industry Background, I°ü®Considered the worst telecom infrastructure in Latin America (nodata backbone, telephone infrastructure obsolete and deteriorating)Info revolution constrained more by the internal infrastructure than the not-fully adequate internationalconnectivity. Almost all of the national data traffic is using UUCP and X.25 marking a difficult transition to TCP/IP.Unmanageable mixture of different equipment base (France, U.S., Canada, Scandinavia, East Germany, Hungary).Interruption of supplies of spare parts from Eastern Europe.°<Öí…åí…ÖãÛü®Telecom Industry Background, II° ü®+Current demand for calls is around $250 million per year. Dramatic increase expected if the US trade embargo isrevoked.Potential that Cuba becomes a center for cable communications between the U.S. and the Caribbean, and later the hubof a U.S./Caribbean/Central America/South America loop. The Cuban national phone company Empresa de Telecomunicaciones del Cuba, S. A. (ETECSA) has inherited assets of thenationalized Cuban Telephone Company, an ITT subsidiary. The US-based ITT has an outstanding claim for $131 millionagainst the Cuban Government.°$&í…,•,FŸÛü®Telecom Industry History, I°ü® In 1993, Cuba decides to privatize itstelecom industry (after the 1992 constitution changes).6/94, Mexico holding company Grupo Domos Internacional (Domos), agrees to purchase a 49% of ETECSA for $1.5 billion.As a joint venture, ETECSA has a concession for 25 years with two possible 12-year extensions to provide:Basic national, domestic long distance, and international telecom servicesData transmissionTelexPublic telephonesTrunked radio communicationSubscription TVPagingOther value-added services (except for cellular telephony)°4>í…“í…>“•>{gÛ ü®Telecom Industry History,II°ü®5/95, Domos sells 25% of their interest to STET International Netherlands, N. V., a subsidiary of the ItalianState Telecommunication Company Telecom Italia for $291.2 million.STET, the world's fifth largest telecom company in terms of revenues, owns significant equity interests in thenational telecom companies of the Republic of Cuba, Argentina, Bolivia, Chile, Venezuela. 2/97, Domos defaults on the required investment and looses their equity. STET now controls 29.29%, the Cubangovernment 49%, and a coalition of banks the remainder.°,{í…€•>ä”öÛü®Telecom Industry History, III°ü®Þ7/97, STET and AT&T form a joint venture to develop the Latin American telecommarket, expected to increase 70% during the next 4 years (Cuba excluded of the deal). 7/97, STET and ITT reach agreement where STET will pay US$25 million to ITT Corporation for a ten-year right to useassets within the Republic of Cuba.6/98, EXCITE establishes a partnership with Telecom Italia (whose subsidiary is STET) to develop enhanced search,E-mail, and online communication capabilities.°0þí…À•qgÛü®Cuba Today °2



($•ü®[Cuba plans to invest US$900 millions through 2004 for telecom upgrades (digitalization, phone lines increase,public phones)Two national telecom systemsU.S. Dollar-only-use digitized system and analog cellular telephone system which used mainly by foreigners. Peso-only-use system for Cuban nationals. Investments of over US$100 millions which move toward digitizing ofexisting lines and improved serviceEuropean technology used to produce fiber-optic cables for internal use and exportPlans to eliminate subsidies to government-operated companies by 2003 in compliance with the rules of the WTO.°Höí…•í…ˆö•ˆÛü®



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Considered the worst telecom infrastructure inLatin America (no data backbone, telephoneinfrastructure obsolete and deteriorating)

Info revolution constrained more by the internal infrastructure than the not-fully adequateinternational connectivity.

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Almost all of the national data traffic is using UUCP and X.25 marking a difficult transitionto TCP/IP.

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Unmanageable mixture of different equipment base (France, U.S., Canada, Scandinavia,East Germany, Hungary). Interruption of supplies of spare parts from Eastern Europe.

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Lost economic partners in the Socialist Blockand the USSR

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Political tensions between Cuba and the U.S.The Cuban Democracy Act of 1992 calls for improving info exchanges. AuthorizesUS-based communications companies to share revenues with CubaÌs national phonecompany ETECSA.

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The Cuban Liberty and Democratic Solidarity Act of 1996 amends the Cuban DemocracyAct in restricting communication investment.

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The Helms-Burton Act of 1996. EU brings an action against U.S. before the WTO andintroduces retaliatory legislation. Canada and Mexico passed retaliatory legislation as well.

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The effect of the embargo for Cuba is devastating while the U.S. looses an estimated $1-$2billion in export.

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On technical as well as political levels:concentration on internal development, ratherthan external connections

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The best educational system in Latin America●

Strong technical education (40 universities, over200 R&D centers)

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Good labor and environmental protection●

Telecommunications seen as national priority.The beneficiaries are the hard-currencygenerating industries (tourism andbiotechnology).

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5/95, Domos sells 25% of their interest to STETInternational Netherlands, N. V., a subsidiary ofthe Italian State Telecommunication CompanyTelecom Italia for $291.2 million.

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STET, the world's fifth largest telecom companyin terms of revenues, owns significant equityinterests in the national telecom companies ofthe Republic of Cuba, Argentina, Bolivia, Chile,Venezuela.

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2/97, Domos defaults on the required investmentand looses their equity. STET now controls29.29%, the Cuban government 49%, and acoalition of banks the remainder.

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In 1993, Cuba decides to privatize its telecomindustry (after the 1992 constitution changes).

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6/94, Mexico holding company Grupo DomosInternacional (Domos), agrees to purchase a49% of ETECSA for $1.5 billion. As a jointventure, ETECSA has a concession for 25 yearswith two possible 12-year extensions to provide:

Basic national, domestic long distance, and international telecom services❍

Data transmission❍

Telex❍

Public telephones❍

Trunked radio communication❍

Subscription TV❍

Paging❍

Other value-added services (except for cellular telephony)❍

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Cuba Today

Cuba plans to invest US$900 millions through2004 for telecom upgrades (digitalization, phonelines increase, public phones)

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Two national telecom systemsU.S. Dollar-only-use digitized system and analog cellular telephone system which usedmainly by foreigners.

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Peso-only-use system for Cuban nationals. Investments of over US$100 millions whichmove toward digitizing of existing lines and improved service

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European technology used to producefiber-optic cables for internal use and export

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Plans to eliminate subsidies togovernment-operated companies by 2003 incompliance with the rules of the WTO.

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Cuba Today



7/97, STET and AT&T form a joint venture todevelop the Latin American telecom market,expected to increase 70% during the next 4years (Cuba excluded of the deal).

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7/97, STET and ITT reach agreement whereSTET will pay US$25 million to ITT Corporationfor a ten-year right to use assets within theRepublic of Cuba.

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6/98, EXCITE establishes a partnership withTelecom Italia (whose subsidiary is STET) todevelop enhanced search, E-mail, and onlinecommunication capabilities.

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Additional sources for final presentation:CIA World Factbook, Cuba - http://www.odci.gov/cia/publications/factbook/cu.html●

CubaNet - http://www.cubanet.org/●

Hermanos al Rescate (Brothers to the Rescue) - http://www.hermanos.org/●

Directorio Revolucionario Democratico Cubano - http://www.directorio.org●

Another example of an NGO active in Cuba - http://www.canurb.com/ipo/cuba_5.htm●

http://www.stanford.edu/~mlo/carib/datalinks3.html [12/16/1999 11:39:29 AM]

http://www.odci.gov/cia/publications/factbook/cu.html

http://www.cubanet.org/

http://www.hermanos.org/

http://www.directorio.org/

http://www.canurb.com/ipo/cuba_5.htm

the information revolution in the caribbean - stanford university

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