CUBA NEWS
October 1, 2004

CUBA NEWS
The Miami Herald

Power shortages force new blackouts in Cuba

Cuba announced a new round of scheduled blackouts because of problems at a thermoelectrical plant.

By Andrea Rodriguez, Associated Press. Posted on Fri, Oct. 01, 2004.

HAVANA - Faced with severe problems in the island's electrical system, the government says it will schedule energy-saving blackouts and shut 118 power-consuming factories for the month of October.

The measures were announced Wednesday night on a television program in which President Fidel Castro acknowledged Cubans' growing irritation with the island's faltering electrical system.

Castro has appeared three successive nights on a regular round-table discussion on state television, dealing this week with the problems in Cuba's electrical grid that have grown in recent months.

But no measures were announced until Wednesday when Vice President Carlos Lage said on the show that a schedule for energy-saving blackouts would soon be published to inform Cubans when their provinces and neighborhoods would be affected.

Castro recognized ''the problems created for the population'' by recent blackouts linked to a severe mechanical problem in a turbine in Cuba's most important thermoelectrical plant, the Antonio Guiteras plant in the Matanzas province west of Havana.

Although there are several other thermoelectrical plants across the island of 11 million, they are linked nationwide and a major failure in one can affect regular power supplies for the entire country.

Castro also blamed himself for not earlier realizing the severity of the problem.

''An electrical system that has all these problems is a weak system,'' he said.

The blackouts have created havoc in Cubans' daily lives, affecting the flow of water for drinking and bathing in households, causing frozen food to thaw, refrigerated food to spoil, and silencing fans and air conditioners.

Lage said other measures aimed at saving energy would include cutting the average government workday from eight to 7 ½ hours and starting school classes a half-hour later.

The dilemma: Confiscated properties

By Marifeli Perez-Stable, marifeli18@hotmail.com. Posted on Thu, Sep. 30, 2004.

It won't be easy going forward. Transitions impose steep costs, and Cuba's will likely be steeper still: The future has been too long postponed. Yet, the present will not last forever, and all of us who care about the island need to think outside the proverbial box so that hope is then sown where despair has flourished. The issue of confiscated properties is certain to be among the thorniest.

Though useful, the experiences of Central and Eastern Europe have not yielded a model law that Cuba could follow. Hungary chose to compensate, while the rest of the region opted for restitution. Each policy has financial, legal and political pros and cons. Evictions, which occurred often enough everywhere, are the most politically charged cost of restitution. Compensation can be a financial drain on a nascent market economy.

Either policy is complex and time-consuming. Proof of ownership is sometimes impossible to establish. Defining eligible claimants can be problematic. If the original owners have died, how distant can a relation be to qualify as an heir? The Czech Republic and Bulgaria required claimants to be citizens in residence. Throughout the region, bureaucratic mazes often frustrated the pursuit of claims. Largely due to West Germany's financial resources and administrative expertise, unified Germany's policy of restitution was the most comprehensive and successful.

To invest, acquire assets

One thing is patently clear: Guaranteeing private property is intrinsic to a market transition. Redressing wrongful confiscations is requisite for the rule of law. New democracies should create a secure environment for nationals and foreigners to invest and acquire assets. The Central and Eastern European countries that rapidly privatized and best guaranteed property rights are now more prosperous and democratic.

In a way, it's that simple. At the same time, the reason why there is no model law is that each country has its own history and culture. It would be folly not to frame the issue of confiscated properties politically as well as legally and financially.

Two central observations come to mind regarding Cuban political culture.

o Nationalism: Even after the communist turn, millions still felt the revolution as Cuban as the royal palm trees.

o The U.S.-Cuba relationship: The pending transition should be the moment to finally set it right.

These are axial coordinates on Cuba's jagged political terrain.

In the early 1960s, the revolutionary government confiscated U.S. and major Cuban enterprises to the thunderous applause of most citizens. In their hearts, millions believed that the revolution would finally deliver on the promise that the republic (founded in 1902) had not fully met. What had been unthinkable a few years earlier -- the elimination of private property -- was hailed.

Today, the opposite is the case. Whatever good intentions the revolution once had have long dissipated. The current government offers nothing but more of the same: a dead end. Ordinary Cubans fully understand that only the comandante's capriciousness has prevented an economic restructuring such as China's and Vietnam's. A thoughtful message in favor of private property, thus, would likely find receptive ears in Cuba.

It should, however, cast a wide net beyond the early confiscations. In 1968, for example, the government closed down 58,000 small businesses. Even after enacting modest economic reforms in the early 1990s, the regime has routinely violated the right to self-employment, seizing citizens' assets or closing their paladares (home-based restaurants). The claims of all owners should be duly recognized.

Under current U.S. law, Cuban claimants who are now U.S. citizens are included with other U.S. claims. Though we can legally be represented by the United States, I suggest that we decline and, instead, deal directly with a duly elected government in Havana to reach an agreement on our confiscated properties. If we did, we would be loosening the U.S.-Cuban Gordian knot and prodding the relationship onto the right track. What was at the start a Cuban conflict would thus be settled among Cubans.

In a market transition, there is no escaping the matter of U.S. and Cuban confiscated properties. How amends are made will mark Cuba, the diaspora and the U.S.-Cuban relationship for better or for worse.

I'm rooting for a new national discourse of Cuban entrepreneurship that bridges the Florida Straits while Washington looks on from afar.

Marifeli Pérez-Stable is vice president for democratic governance at the Inter-American Dialogue in Washington, D.C.

 


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