Corrupción – Cuba – Corruption
We run various sites in defense of human rights and need support in paying for servers. Thank you.
Calendar
October 2015
M T W T F S S
« Sep   Nov »
 1234
567891011
12131415161718
19202122232425
262728293031  
Translate (from Es)
Archives

The Fraud of Cuban Business Consultants

The Fraud of Cuban Business Consultants / Juan Juan Almeida
Posted on October 14, 2015

Juan Juan Almeida, 5 October 2015 — Why deceive US businessmen by
assuring them they can come to Havana and, just like that, set up shop
in Cuba?

The Cuban government is cautious and equates the word freedom with a
certain brashness. For a foreign business to establish itself and do
business in Cuba, it must fulfill requirements so complicated that most
businessmen ultimately tire of the process or end up feeling cheated.

Any country that formally announces it is open to foreign investment
knows it must face the challenge of improving its quality of education
and legal infrastructure.

In contrast to what the revolutionary government proclaims, bureaucracy,
corruption, poor teacher training, disorganization and certain practices
such as fraud have become the norm and are reasons for the decline of
the educational system.

South Korea, by contrast, was a country that for fifty years was as poor
as Haiti. Without resources other than its human capital, it was forced
to invest in its own people, achieving a transformation based
principally on primary and secondary school education.

Cuba did just the opposite, investing most of its educational resources
at the university level. It was a misguided emphasis that demonstrated
an excessive preoccupation with the future of the country. For the most
part, it favored college students, who ended up being instructed but not
well educated. The result was discouragement among graduates and a
significant reduction in their numbers.

In terms of the legal system things are no better. The Cuban government
has a well designed plan to snare investors through an advertising
campaign that highlights business opportunities in a wide-range of
economic sectors. But despite an alarming spread of optimism that seems
to have infected American businesses, the country does not have credible
institutions, clear regulations or a legal code that would protect
foreigners who invest in the island. What it does have are hundreds of
“hucksters” who take advantage of ignorance, exaggerate their own
expertise and have the nerve to call themselves “Cuban business
consultants.”

As an old friend often says, “The danger is not in the lie; it’s in the
credibility it creates.”

In fact, these clowns — with their freedom of expression, impertinent
blather and corporate pretensions — should be jailed for selling the
idea to American businesses and businesspeople that in two or three
years they can come to Cuba and set up shop.

It is true that the executive branch of the US government recently
approved regulations relaxing the sanctions on the island by, among
other things, allowing people under the American jurisdiction to
establish and maintain a physical presence on the island such as an
office, retail outlet or warehouse, and to employ people in Cuba. But
none of this is easy.

The Cuban government is cautious and equates the word freedom with a
certain brashness. As a result, for a foreign company to establish
itself and do business in Cuba, it must first be approved, endorsed and
registered by the Chamber of Commerce of the Republic of Cuba.

Only approved companies are allowed to rent space in commercial office
buildings, buy vehicles on the domestic market or import them from
overseas for business purposes, open commercial banking accounts, do
business in Cuba and hire Cubans, which they must do through official
employment agencies such as Acorex, Palco and Habanaguex.

I should clarify that, according to government regulations, any Cuban
represented by an employment agency must not be unemployed and must also
meet the questionable, controversial but essential requirement of
“suitability.” In other words, foreign companies, including those from
the United States, may not hire their own employees and must accept
those hired and previously approved by the Cuban government.

While there are freelance workers, they are illegal by government decree
and barred from engaging in business meetings with buyers, sellers,
managers or any other official from the business world.

In order for a foreign company, no matter the country, to be listed on
the official registry of the Chamber of Commerce, it must first have
been doing business in Cuba for three years and have generated a
shocking amount of business during that time period.

Fulfilling this requirement does not guarantee getting the desired
approval from “the great beyond.” It is mystery comparable to the
legendary enigma about which came first, the chicken or the egg.

All this explains why most serious businesspeople who visit the island
ultimately tire of the process or end up feeling cheated. Reason enough
to ask the “so-called” consultants: Why deceive US businessmen by
assuring them they can come to Havana and, just like that, set up shop
in Cuba?

Source: The Fraud of Cuban Business Consultants / Juan Juan Almeida |
Translating Cuba –
translatingcuba.com/the-fraud-of-cuban-business-consultants-juan-juan-almeida/

Tags: , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *