A Cuban-American Perspective

1. A Cuban-American Perspective for Change in Cuba

2. Perception is Reality • Centrally Planned Economy: Cuba – North Korea – Iran • Cuba's past dealings with foreign investors suggest caution • "Use the foreigners where it suits you. Spit them out as soon as their usefulness is over,“ • Cuba has closed more joint ventures than it has opened since adopted wide-ranging economic reforms in 2011 • Government partners defrauded him by keeping two sets of books, then offered a ridiculously low sum for his stake • "Starting a joint venture in Cuba for a small or medium-sized foreign business is the same as putting a noose • around your neck,"

3. The Uncertainty Principle • The communist government sometimes lets investment proposals die on the shelf without explanation • Experts say Cuba's approach to foreign business has been arbitrary • Who is in charge of what • Who is or will be your competition • Existence/reliability of infrastructure

4. “The World is Flat” • Economies are Global • Countries compete for investments • Investors follow Risk/Reward, Certainty -Stability, State of the art Infrastructure, favorable Labor Pool • Logistics/Technology/Comms. • He credits the creation of complementary software and the internet, and political factors that caused • several developing countries, including China, Russia, India and Latin America, • to open their borders at this time with the creation of the perfect storm that led to the rapid-fire pace of globalization. • Collapse of Berlin Wall--11/89: The event not only symbolized the end of the Cold war, it allowed people from • other side of the wall to join the economic mainstream. (11/09/1989)

5. Who is in Charge here • Freedom to operate within the regulations • Foreign companies will be barred from hiring their own workers, and instead must go through Cuban employment • agencies as they do now. • "The problem with the new law is that except for taxes, little has changed, which means their attitude hasn't changed,“ • said one European diplomat who declined to be identified. "In the end, the entire law remains discretionary." • Experts say Cuba's approach to foreign business has been arbitrary. If a venture is successful, the government often • wants a bigger stake. It welcomes foreign financing, once a project is operational it wants to take charge, they say. • A history that includes jailing foreign executives and attempting to seize greater control of businesses once they prove • successful. • But Murillo's remarks suggested the government intends to continue in at least a watchdog role "so that there is • no concentration of property." "What the new law establishes is that the state must always be there," he said.

6. Success Breeds Success • Use the most efficient way to create examples of Successful Ventures • "Cuba will not go looking for foreign investment in Miami. The law doesn't prohibit it, the policy does not promote it" • Foreign Trade and Foreign Investment Minister Rodrigo Malmierca said Friday

7. Necessary but not Sufficient • Differentiate Policy from politics • Tax & Regulate – Do not compete/participate • Consistency & Fairness • Business ethics- Work Ethics – Culture of commitment - Trust • Corruption - Crony Capitalism • Incentivizm – Allow Growth • Infrastructure / Logistics / Technology/Comms. • Management People - Training - outside expertise • The indispensable action………………………..