Tag: economic reform

Cuba Lifts De Facto Travel Ban … Maybe

In a move expected for over a year, the Cuban government announced today that, starting January 13th, it will lift the travel ban it imposed on its citizens since 1961. This is certainly not an official travel ban. Cubans are allowed to leave the island as long as they get an exit visa and have a letter of invitation from the country they want to visit. But in practice, only few Cubans get the exit visa—and most of them, if not all, are sympathetic to the regime. Well known dissents like Yoani Sánchez are repeatedly denied their exit visas despite having invitation letters from abroad. So in practice, it is a travel ban on the Cuban people.

What lies behind the decision is up for debate. Perhaps it has to do with the fact that the economic “reforms” implemented by the regime in recent years aren’t working. The Economist recently reported that the timid changes announced shortly after Raúl Castro came to power “have indeed paused.” Exactly a year ago, I wrote about how the U.S. government registered the first rise in illegal Cuban immigration by sea in 3 years. Given the increasingly tough economic conditions, La Havana might be resorting to the “escape valve” of emigration to ease social discontent.

Or maybe little will change in practice, as has been the case with the much heralded economic reforms. Cubans are required to apply for a passport and, as the official newspaper Granma announced today, the issuance of passports will be denied for several reasons such as:

  1. Defense and national security reasons.
  2. Having a security measure pending.
  3. Having “obligations” with the Cuban government.
  4. Preserving a “qualified” labor force for the development and security of the country.
  5. “Public interest” reasons determined by the authorities.

As we can see, the new restrictions to get a passport are so nebulous and discretionary that in practice it’s very likely that the Cuban government will continue to prohibit most of its people from traveling. Thus, it’s better to wait and see if the restrictions are actually lifted and Cubans are allowed to travel abroad more or less freely. If that happens, a new dynamic will enter into play that might accelerate (or delay) the implementation of further political reforms.

Palestine To Adopt Chilean Private Pension Model

Hashim Shawa, the head of the Bank of Palestine, says that in 2012 Palestine will adopt the private pension system that Chile pioneered 30 years ago and has exported throughout the world. As you can see from the map below, it will become the second Arab territory after Egypt to do so. Of course, the devil is in the details, and for the reform to be as successful as it has been in Chile, Palestine should introduce a whole set of complimentary economic reforms. But if done right, at least in this regard Palestinians will be ahead of almost all of their neighbors, including Israel.

Thursday Links

HRW: “New Castro, Same Cuba”

Human Rights Watch has just released a lengthy report detailing the constant and blatant abuses of human rights and basic individual freedoms in Cuba under the rule of Raul Castro.

Some hoped that the timid economic reforms announced by the “younger” Castro brother, when he assumed the official leadership of the geriatric regime, would constitute the opening salvos toward a more open and freer Cuba. However, a few of us spotted cracks in that fairy tale early on.

The recent beatings of Yoani Sánchez and other independent bloggers (described here by my colleague Ian Vásquez) are a clear reminder that, in Cuba, it’s business as usual under the Castro brothers’ rule.

A Georgian Constitution of Economic Liberty

The former Soviet Republic of Georgia is a late economic reformer, having started such liberalization after the Rose Revolution in 2004. But it is one of the most successful post-Soviet reformers, and it may be the country that has implemented the largest range of serious market reforms in the shortest period of time. Its growth rate from 2004 through 2008 averaged 7.6 percent per year (which includes the comparatively low 2.1 percent rate of 2008 that resulted from the global financial crisis and the war with Russia).

Last month, the government submitted a draft act to Parliament that calls for amending the country’s constitution so that it would safeguard various elements of economic freedom. The amendments would put caps on public debt, spending and deficits; and ban any kind of price controls, state ownership of banks and financial institutions and restrictions on currency convertibility, and any kind of control over the movement of capital. New taxes or increases in tax rates would require approval through a national referendum.

With the possible partial exception of Hong Kong’s Basic Law, I’m not aware of any other constitution that explicitly enshrines economic freedom. I’m told by Georgian colleagues that prospects for passage of the law looks good, with the constitution being amended as early as next month.

Weekend Links

  • Cato v. Heritage on the Patriot Act, Round II. Today’s topic: “Where are the demonstrated examples of abuses of liberties because of the Patriot Act? Are there any provisions of the law that civil libertarians would find acceptable?”
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