I recently won a contest called ideas for Cuba. I decided to post what I send to users of the blog. The publication will be divided into 5 parts. Hope you like.
3-Open the Cuban economy to the international arena through the expansion of trade relations, investment and financial
Since the beginning of human history, the first great civilizations like the Egyptian, Mesopotamian and Chinese to large rivers to settle, is welcomed because that had greater access to water, but also because they spread their trading opportunities through pathways river. During the Renaissance, the city of Venice experienced a period of splendor given its commercial nature, serving as a point of commercial distribution from the Mediterranean coast into Italy. In more recent times is unquestionable development that China has achieved through its business.
Indeed, trade has always been a core component in the development of all economies. Through export countries manage to achieve financial resources for development, while imports provide more material properties allow the population, strengthening internal trade and providing new capacity in the case of importing raw materials and machinery.
But our country does not use the value of its geographical position, because trade is not seen as a central axis of development. This is evident when analyzing the small private sector does not have the ability to directly import the resources that could be used for the creation of productive activities, taking into account that can only acquire a higher retail market where they are sold at prices and with fewer guarantees (you can not access directly to the production of domestic industry through a wholesale market, in fact). With exports something similar happens.
It is important that there is a direct possibility that these businesses have a consistent relationship with the rest of the world. This would bring improvements in every way since those businesses that have international reach generate more jobs and pay better Cuba, given its Caribbean geographical position and many of its cities are coastal, could be the embrace of North America South America.
There is an extremely interesting in global trade relations track and this is precisely the Free Trade Agreements. These allow exempt from trade tariffs on products exported and imported between the two countries agree, in order to seal a higher integration link.
Many Latin American countries such as Panama, Colombia and Costa Rica have a high calling for the signing of such agreements. Negotiations to achieve more reliable solid regional integration efforts cimentarían.
Another interesting way to open the Cuban economy is the benefits of foreign investment. Today it is possible that companies from other countries to invest in our nation, but the business will always belong to the government, which now controls about 51% of the property despite not provide any capital base. This scares away potential investors who obviously did not want to risk their financial resources in a company that can not manage. The Special Area Development Mariel improve this situation, but its geographic space is very limited and that is why it is necessary that its guarantees to expand to the rest of the island, if we want the capital of international investment to take us seriously .
The formation of foreign subsidiaries take the competitiveness of the national economy to a new level and consumers would have access to diverse offers. Also foreign companies would be a new source of employment that workers would not rule out taking into account that often pay better.
One thing to mention is the private sector access to international banks that grant credits to import resources to expand their production capacities.
Overall trade relations, investment and financing would allow the national economy finally open the concert of nations so that the private sector can make use of the development of technology and science without having to reinvent the wheel. Finally would bring knowledge, creativity and initiative of the Cuban people to the international level.
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