An economic dream turned into a failure?
Hello, friends. I want to talk to you about a topic that sometimes goes somewhat unnoticed, I am referring to the Mariel Special Development Zone (ZED Mariel) in Cuba. In November 2013 the Cuban government created a visionary project designed to attract foreign and domestic investment in the production of goods and services, in the southwestern part of Cuba, inaugurated by the then president, Raul Castro who promised that the first zone of its kind in Cuba would be a first class logistics platform at the regional level.
The construction project was financed with Brazilian public funds, which Cuba still owes to Brazil. It was in charge of the Brazilian company Odebrecht, which later became embroiled in a corruption scandal that even shook the president of Brazil.
I must clarify that the Special Development Zone from the outside could be seen as a positive and profitable business, for any country. Even more so, for Cuba, taking into account its geographical position. But there are always several economic, political and commercial factors to keep in mind.
But the harsh reality is different. More than 10 years after its inception, the ZED Mariel is not taking off or even taking its first steps in a stable manner. But should we be surprised in a country where the military has a history of defrauding investors and lenders?
The Cuban government updated foreign investment regulations, offering favorable tax and labor conditions, financing, streamlined procedures and access to sectors previously off-limits to nationals. However, these measures seem more of a mirage than a reality. As a result, Cubans could not invest and create their own companies, since the state did not allow it, leaving the field open only for state companies, controlled by the military.
Despite having attracted some money and generated some jobs, the lack of transparency and restrictions imposed by Cuban institutions, along with U.S. sanctions on Cuban military companies, have turned the ZED Mariel into a dream that is increasingly far from reality.
But by far the biggest obstacle for a project like this to prosper is the state, which blocks and selects at its convenience who invests or not. Not even the recent flexibilization that allows Cubans living abroad to invest does not seem to be the solution. This measure has been taken, not for good reasons, but because the economy is suffocated and they need to take the money from investors.
The ZED Mariel is far from fulfilling its objective of being the economic engine that Cuba desperately needs. The foreign debt, the imbalance in the state accounts and internal inflation are just some of the stones on the road to economic success. In the meantime, the population continues to see no tangible results, while shortages and the economic and social crisis persist.
It seems that the ZED Mariel remains more of an unfulfilled promise than a transforming economic reality. Only time will tell if this project ever gets off the ground or if it becomes just another chapter of unfulfilled projects and promises of the Cuban state. But what is certain is that without Cuba's economic opening and stability, it will never be successful.
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Original text in Spanish: Translated and formatted with Hive Translator by @noakmilo.
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oh that's tragic. I'm sure there are projects like this all over the world that were meant to boost the economy but for whatever reasons they just don't work out.
That's right, there always are. But here in Cuba practically nothing works. Communism is a total failure. Thank you for your support and have a nice day.