World Travel Guide

City Guide  - Havana  - Business
Business

Until recently, all business was controlled centrally by the state with everybody working for the Government and guaranteed employment for all. Throughout the 1980s, foreign companies were allowed to set up joint ventures with the Government and, in 1995, international organisations were invited to establish 100% foreign-owned businesses there. However, there has only been a handful of takers and this will probably not change until the American blockade is lifted. The collapse of the Soviet Union hit Cuba hard and austerity measures were brought in for five years from 1990 under the Periodo Especial. The State was forced to lay off workers to avoid financial collapse and had to allow its citizens to become self-employed. Fearful of encouraging capitalism, the Government imposed high taxes on these budding entrepreneurs and forbade them to take on employees. As unemployment does not officially exist there are no figures available.
Cuba's main exports are sugar, nickel, tobacco, shellfish, medical products and coffee, all industries are mainly controlled by the State. Canadian mining companies have set up joint ventures to develop the potential of a country rich in mineral ores, in particular nickel. Sugar, one of Cuba's largest exports, suffered severe problems in the early 1990s when production sharply declined because it was unable to obtain fertiliser and herbicides or the fuel to run the machinery. More areas have now been planted to try to increase the output of production.
Tourism is rapidly becoming Cuba's biggest success story, bringing in millions of Dollars each year. Since the early 1990s, the tourist industry has seen an increase of about 17% a year, with even greater increases towards the end of the decade. The industry is totally controlled by the Government and the hotels in Havana and elsewhere that appear to be international hotels, are in fact managed by State-run chains such as Sol Melia and Tryp. The worst year for Cuba in recent times was when the GDP declined to 0.7% in 1994 but successive years have seen a steady increase and there is now an atmosphere of quiet optimism.


Business Etiquette: Business Etiquette The international business community is beginning to explore Cuba's potential and recent years have seen a steady stream of foreign businesspeople visiting Havana. Isolationist in the past, the Cuban Government is now receptive to new opportunities. However, work practices remain unchanged and there is rarely anybody prepared to take the initiative or to make decisions. This is a problem typical of Communist countries and further aggravated by the Cuban attitude of leaving everything to manana (tomorrow). Initial approaches from international businesses are usually met with great optimism and indications that anything is possible, but this is followed by total inactivity once the visitors have returned to their home country. Another problem is the notoriously lax timekeeping - Cubans can turn up hours late for a meeting without a hint of an apology. Dress is rarely formal and most Cuban businessmen wear the traditional guayabera shirt to meetings. On the other hand, businesswomen can be very smart. Visitors tend not to be invited to lunch or dinner but rum often flows at a meeting. Offices are generally open 0830-1230 and 1330-1630 with some Saturday opening.



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