GUIDE TO FUTURE PRIVATIZATION AND INVESTMENT IN CUBA

Report No. SP-02-99

PRICE $180.00

The 90-plus page report evaluates the strong and weak points of eleven different potential privatization sectors, and analyzes the economic and social policies needed to make Cuba an attractive market for international investors.  More than 40 maps pinpoint the location of many of the targeted investment projects.

 

The study targets sixteen different business sectors representing about 1,500 potential investment projects.  In addition to more than 120 sugar mills, the authors identify 170 state-owned factories with 500 or more workers scattered throughout the island.

CONDENSED
TABLE OF CONTENTS

 

I.                    Introduction                                                                                                    

 

II.                 Critical Pre-Market Economy Issues                                                                       

A.     Aid and Assistance                                          

B.     Participating in International Organizations                                

C.     Claims and Foreign Assets                                     

D.     Trade                                                  

E.      Finance and Investment                                      

 

III.               Some Ideas on a National Privatization Strategy                                                         

A.     Claims Against the State                                       

1.      General  Considerations

2.      U.S. Claims

3.      Restitution

4.      Compensation

B.     Small-Scale Privatization                                       

1.      Selling Leasing Rights

2.      Liabilities

C.     Treuhandanstalt (a case-study of successful privatization)              

1.      Treuhand Policies

2.      Treuhand Criteria

3.      Clear Title Issue

4.      Purchase Price

5.      Labor Issues

6.      Encouragement to Foreign Investors

7.      Summary

 

IV.              Economic and Social Policies Necessary for an “Investor-Attractive”,

Free Market Economy.                                                                                            

A.     Significant Reduction of the Public Sector                         

B.     Reform of the Currency                                      

C.     Establishment of an Open Foreign Trade Policy                    

D.     Management of Monetary and Credit Policies                       

E.      Price, Wages and Social Security Policies                             

F.      Foreign Debt Renegotiations                                    

G.     Settlement of Claims                                     

H.     Private External Resources                                    

I.        Contribution and Cooperation from Multilateral Institutions            

J.       Institutional, Legal and Regulatory Reforms                            

K.     Comprehensive Privatization Drive                                

   

V.                 Possible Projects Available for Privatization.                                                   

A.     Mining                                                 

B.     Power Industry                                             

C.     Transportation Industry                                       

D.     Construction & Construction Materials                           

E.      Other Utilities                                          

F.      Other Light Industry                                       

G.     Food Processing, Fisheries & Beverages                        

H.     Other Specialized Industries                                     

I.        High Technology and Communications Industry                     

J.       Wholesale & Retail Facilities                                  

K.     Sugar and Sugar Related Industry                                 

L.      Banking and Insurance                                    

M.    Tourism, Tourism Related & Entertainment                         

N.     Military Enterprises                                          

O.     Telecommunications & Media                               

P.      Miscellaneous Enterprises                                    

 

VI.              Privatization of Cuba’s Basic Industry Sector. Strong and Weak Points.             

A.     Chemical and fertilizers Industry Trust                           

B.     Metal Processing Trust                                       

C.     Union de Papel                                             

D.     Rubber and Tire Trust                                       

E.      ACINOX, S.A.                                              

F.      Cement Industry Trust                                       

G.     Construction Aggregates Trust                                 

H.     Electric Industry Trust                                       

I.        Geology and Mining Trust                                       

J.       Nickel Industry Trust                                       

K.     Oil Refining and Distribution Trust                                 

L.      Oil and Gas Extraction Trust                                 

 

Annexes:

 

A. Some Cuban Trade Names and Patents                                                                  

B. Factories of 500 or More Workers Built or Enlarged After 1959                               

C.     Large Industrial Facilities of More Than 500 Workers Existing in 1959,

 (not including Sugar Mills)                                                                                       

D.     Other Potential Privatization Targets of Selected Cuban State-Owned

Enterprises                                                                                                             

Possible U.S. Economic Assistance Programs