Transcript Cuba - School of Business Administration

Cuba
Maria Enea
Jacob Klein
Kirk Lauterbach
Jon Machak
Cuba
Geography
Located between
Caribbean Sea and North
Atlantic Ocean
150 km south of Florida
110,860 km² total
Equivalent to
Pennsylvania
3,735 km of coastline
Largest country
Caribbean
Cobalt, nickel, iron ore,
copper, manganese, salt,
timber, and petroleum
33% Arable land (U.S. =
19%)
Droughts and hurricanes
Tropical climate with both
rainy and dry seasons
Guantanamo Bay U.S.
Naval Base
Demographics
Population = 11,263,429
Life Expectancy

Male = 74.4, Female = 79.3
Nationality = Cuban
Ethnic Groups

Mulatto 51%, White 37%,
Black 11%, Chinese 1%
Religions

85% Roman Catholic, 15%
Protestant, Jehovah’s
Witness, Jews, Santeria
Languages = Spanish
Illegal Migration is
Problem
2500 in 2002
Cubans attempt to enter
the US via rafts
Alien smugglers
Direct flights
Falsified Visas
Culture
Modernism replaced
Romanticism in the 20th
Century
Cultural blend of African and
Spanish visual expressions
Many famous Cuban Romantic
writers left for exile
Urban-Afro images and Cuban
Revolution paintings
Architecture ranges from
Castles to modern economical
housing
Caribbean Music and Salsa
Large National library and
Museum
Design influenced by the US flag.
Economics
GDP = 25.9 billion
Economic Turmoil



Depression during 1990’s
Hurricane Isidore / Lili
Damage
Tourism slump after 9/11
Labor Force = 4.3 million

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24% Agriculture
25% Industry
51% Service
12.3 billion in Debt; 15-20
billion owed to Russia
INDUSTRY = Sugar,
petroleum, tobacco,
chemicals, construction,
nickel, steel, cement,
machinery, biotechnology
Cuban peso (CUP)
1 USD = 27 CUP
Politics
Communist State
Fidel Castro president
since 1959
Cuban Communist Party
or PCC
Capital city = Havana
14 Provinces
Obtained independence
from Spain in 1902
Legislative Branch =
National Assembly of
People’s Power
People’s Supreme Court

Judges elected by National
Assembly
Legal System

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Based on Spanish and
American Law
Large Elements of
Communist legal theory
Education
Government controls educational system; provides education for all
children
Literacy Rate = 97%
Castro established literacy brigades during the 1960’s
Primary and Secondary Education consist or Marxist Principles

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Capitalism is an opposing world organization
Public health, elementary education, cooking, moral standards,
revolutionary loyalty
3 major Universities / dozens of polytechnic schools

U of Havana, U of Santa Clara, U of Santiago
High-Level (Grad Classes) offered in business, medicine,
nursing, engineering
Characteristics
Cuba plays the primary role in the
economy
Cuba controls nearly all foreign trade as
well as internal development
The Cuban government does not have
substantial economic resources with
which to fund IT investments.
Vision
Telemedicine, Biotechnology, and
Multimedia will guide the Cuban IT future
Outsourcing of software professionals will
provide money for the government
The expansion of the high-tech industry
will be encouraged, primarily through the
continued development of university
programs.
Program for the Information Society in Cuba
Outlined in 1997. It aims for the massive use of the Information and
Communication Technologies (ICT) with the following general
objectives:
To increase the efficiency and competitiveness of production and
services, improving their quality and decreasing their material and
energy consumption.
To increase the effectiveness and to ease the decision making process of
government and the administration through the availability of
reliable and updated information at all the levels.
To generate a source of revenue for Cuba through the export of products
and services of the national software industry.
Program for the Information Society in Cuba
General objectives (cont.):
To raise the quality of the public services, especially in
the education, health and social security sectors.
To improve the quality of the services that the Popular Administration
Councils offers by diminishing the average time and the steps that
the citizen must carry out.
To offer to the world, by means of Internet, trustworthy information about
Cuba, its political, social and economic reality.
To offer to researchers, educators, students, functionaries and any
interested person, access to information that exist in the Internet
and in other electronic formats.
Ministry of Informatics and Communications
Lines of action:
• Computer science
• Telecommunications
• Information Networks
• Value Added Services
• Broadcasting
• Radio electrical
spectrum
• Postal communications
• Automation
• Electronic industry
Created in January 2000
Cuba’s Economy and IT
State plays primary role in Cuban
economy and controls all internal
development including IT
No substantial economic resources to fund
IT investments
Struggling economically
Cuba’s Economy and IT – Cont.
Most IT is funded by foreign investment
Actively solicit foreign direct investment
Relied heavily on Soviet Union for
financial aid before 1991
After collapse of Soviet Union, economy
faltered
Many short term loans, a lot of debt
Cuba’s Economy and IT – Cont.
Cuba does not allow free flow of
information from, to, or within the nation
Fear that Internet will lead to greater
freedom of expression
Recognized that internet can be a source
of economic productivity
Conflicting interests
Cuba’s Economy and IT – Cont.
Communication technology important for
economic growth
Government fears that this could lead to
freedom of internal and external
expression which could threaten the
regime
Cuba is positive towards the growth of IT,
but want to keep political information away
from the people
Cuba’s Economy and IT – Cont.
Few resources for developing IT, must
depend on attracting foreign companies
Expansion is difficult
Have no hard currency, use currency not
accepted in the global market
In spite of political risks, government
realizes that IT is necessary for the
economy
Investment Pro’s
Prime location in
Caribbean
Highly educated
population capable of
operating in a global
sales venture
Biotech leader
Skilled IS workforce
with which to support
distribution and
manufacturing
operations
Lower labor costs
Investment Con’s
Political sanctions limit
potential trade
opportunities
Cuban government's
discouragement of
capitalism
Sales and promotional
efforts restricted by
government
Lack of skilled IS
workforce
Interministerial
Commission has
restricted all Internet
access almost all private
endeavors
Economic difficulties
make Cuban expansion
difficult.
The country lacks hard
currency and operates in
a currency that is not
accepted on the global
markets
Strengths
The Cuban population
is one of the most
educated amongst
developing nations
Labor costs are lower
than for most
software developing
countries
Cuba is already
recognized as a
leader in
biotechnology
The Cuban
government is
fostering FDI
Weaknesses
Inadequate domestic
IT/telecommunication
s infrastructure
Price and availability
of Internet technology
and services
Government control
of all Cuban
marketplaces, ecommerce, and trade
Lack of IT growth in
the domestic
marketplace
Training/IT
infrastructure based
on obsolete
technology
Opportunities
Poor IT infrastructure
provides growth
opportunities for
wireless technologies
Market penetration of
PCs in the home and
businesses is very
low
Internet access is
provided by one
provider
Threats
High piracy rates/lack
of value ascribed to
software development
Low financial support
for the IT industry
Cuba's inability to
attract foreign aid and
FDI
International political
sanctions
The Bottom Line
Do not waste time and money investing IT
in Cuba
IT will not be successful in Cuba until the
political, economic, and technological
environments are improved