Cubapreneurship

I just got back from an incredible 5 days in Havana. I went with my brother-in-law for a "boys" weekend to celebrate my upcoming 50th birthday.

I had never been to Cuba before and didn't know what to expect. I had previously wondered about whether it was appropriate to go, thereby supporting a repressive regime. My love of Cuban cigars (and a rationalization of helping the Cuban people with my meagre tourist pesos) enabled me to get on a plane.

I was struck first by the fact that Havana is stuck in a time warp. Little has changed from January 1, 1959, the date of the revolution. The cars and the buildings seemed to have been stopped in time. There was a certain charm about it, however, it indicated the lack of money available to the people to buy basic things and to the government to improve infrastructure.

There is tremendous potential for Havana to become a world class city. All of the components are there - wide boulevards, a mix of beautiful architecture (especially in Old Havana), history and a young and vibrant population. They just need a little freedom and some much needed capital for investment.

I understand that things are starting to change. Since Fidel's illness, his brother Raoul has taken over the reins of leadership. Once considered the heavy, Raoul is now much loved by the people for the few small freedoms that have been instituted in the past month or so. Cubans can now go into hotels and restaurants that were previously the sole domain of foreigners. They can also legally buy computers and DVDs.

Just as the country has 2 currencies - one for the locals and one for foreigners, Cuba also has 2 economies. The vast majority of the Cuban people live on $20 per month and have little available to them other than some basic necessities. On the other hand, there is a vibrant capitalist economy working, mostly serving foreigners and Cuban entrepreneurs who serve foreigners. You can find privately owned and operated restaurants as good as any in the world. There are entrepreneurs selling cigars out of their homes and on the street. There are cab drivers and of course sex workers.

With more freedom, I predict that money will flow into Cuba. For example, if foreigners are allowed to own real estate, other than as a vacation home, capital will flood into the country and the wonderfully beautiful Spanish colonial buildings that are currently in such a state of disrepair will be restored to their former glory.

If the recent changes by Raoul are a sign of things to come, even if democracy is slower to come, capitalism can come to this beautiful island and unleash the pent up Cuban entrepreneurship. Look what's happening in China.