CubaCubaMaria EneaMaria EneaJacob KleinJacob Klein

Kirk LauterbachKirk LauterbachJon MachakJon Machak

CubaCuba

GeographyGeography

Located between Located between Caribbean Sea and North Caribbean Sea and North Atlantic OceanAtlantic Ocean

150 km south of Florida150 km south of Florida

110,860 km110,860 km² total² total

Equivalent to Equivalent to PennsylvaniaPennsylvania

3,735 km of coastline3,735 km of coastline

Largest country Largest country CaribbeanCaribbean

Cobalt, nickel, iron ore, Cobalt, nickel, iron ore, copper, manganese, salt, copper, manganese, salt, timber, and petroleumtimber, and petroleum

33% Arable land (U.S. = 33% Arable land (U.S. = 19%)19%)

Droughts and hurricanesDroughts and hurricanes

Tropical climate with both Tropical climate with both rainy and dry seasonsrainy and dry seasons

Guantanamo Bay U.S. Guantanamo Bay U.S. Naval BaseNaval Base

DemographicsDemographics

Population = 11,263,429Population = 11,263,429Life ExpectancyLife Expectancy

Male = 74.4, Female = 79.3Male = 74.4, Female = 79.3

Nationality = CubanNationality = CubanEthnic GroupsEthnic Groups

Mulatto 51%, White 37%, Mulatto 51%, White 37%, Black 11%, Chinese 1%Black 11%, Chinese 1%

ReligionsReligions 85% Roman Catholic, 15% 85% Roman Catholic, 15%

Protestant, Jehovah’s Protestant, Jehovah’s Witness, Jews, SanteriaWitness, Jews, Santeria

Languages = SpanishLanguages = Spanish

Illegal Migration is Illegal Migration is ProblemProblem2500 in 20022500 in 2002Cubans attempt to enter Cubans attempt to enter the US via raftsthe US via raftsAlien smugglersAlien smugglersDirect flightsDirect flightsFalsified VisasFalsified Visas

CultureCulture

Modernism replaced Modernism replaced Romanticism in the 20Romanticism in the 20thth Century CenturyCultural blend of African and Cultural blend of African and Spanish visual expressionsSpanish visual expressionsMany famous Cuban Romantic Many famous Cuban Romantic writers left for exilewriters left for exileUrban-Afro images and Cuban Urban-Afro images and Cuban Revolution paintingsRevolution paintingsArchitecture ranges from Architecture ranges from Castles to modern economical Castles to modern economical housinghousingCaribbean Music and SalsaCaribbean Music and SalsaLarge National library and Large National library and MuseumMuseum

Design influenced by the US flag.

EconomicsEconomics

GDP = 25.9 billionGDP = 25.9 billion

Economic TurmoilEconomic Turmoil Depression during 1990’sDepression during 1990’s Hurricane Isidore / Lili Hurricane Isidore / Lili

DamageDamage Tourism slump after 9/11Tourism slump after 9/11

Labor Force = 4.3 millionLabor Force = 4.3 million 24% Agriculture24% Agriculture 25% Industry25% Industry 51% Service51% Service

12.3 billion in Debt; 15-20 12.3 billion in Debt; 15-20 billion owed to Russiabillion owed to Russia

INDUSTRY = Sugar, INDUSTRY = Sugar, petroleum, tobacco, petroleum, tobacco, chemicals, construction, chemicals, construction, nickel, steel, cement, nickel, steel, cement, machinery, biotechnologymachinery, biotechnology

Cuban peso (CUP)Cuban peso (CUP)

1 USD = 27 CUP1 USD = 27 CUP

PoliticsPolitics

Communist StateCommunist State

Fidel Castro president Fidel Castro president since 1959since 1959

Cuban Communist Party Cuban Communist Party or PCCor PCC

Capital city = HavanaCapital city = Havana

14 Provinces14 Provinces

Obtained independence Obtained independence from Spain in 1902from Spain in 1902

Legislative Branch = Legislative Branch = National Assembly of National Assembly of People’s PowerPeople’s Power

People’s Supreme CourtPeople’s Supreme Court Judges elected by National Judges elected by National

AssemblyAssembly

Legal SystemLegal System Based on Spanish and Based on Spanish and

American LawAmerican Law Large Elements of Large Elements of

Communist legal theoryCommunist legal theory

EducationEducation

Government controls educational system; provides education for all Government controls educational system; provides education for all childrenchildren

Literacy Rate = 97%Literacy Rate = 97%

Castro established literacy brigades during the 1960’sCastro established literacy brigades during the 1960’s

Primary and Secondary Education consist or Marxist PrinciplesPrimary and Secondary Education consist or Marxist Principles Capitalism is an opposing world organizationCapitalism is an opposing world organization Public health, elementary education, cooking, moral standards, Public health, elementary education, cooking, moral standards,

revolutionary loyaltyrevolutionary loyalty

3 major Universities / dozens of polytechnic schools3 major Universities / dozens of polytechnic schools U of Havana, U of Santa Clara, U of SantiagoU of Havana, U of Santa Clara, U of Santiago

High-Level (Grad Classes) offered in business, medicine, High-Level (Grad Classes) offered in business, medicine, nursing, engineeringnursing, engineering

CharacteristicsCharacteristics

Cuba plays the primary role in the Cuba plays the primary role in the economy economy

Cuba controls nearly all foreign trade as Cuba controls nearly all foreign trade as well as internal developmentwell as internal development

The Cuban government does not have The Cuban government does not have substantial economic resources with substantial economic resources with which to fund IT investments. which to fund IT investments.

VisionVision

Telemedicine, Biotechnology, and Telemedicine, Biotechnology, and Multimedia will guide the Cuban IT futureMultimedia will guide the Cuban IT future Outsourcing of software professionals will Outsourcing of software professionals will provide money for the government provide money for the government The expansion of the high-tech industry The expansion of the high-tech industry will be encouraged, primarily through the will be encouraged, primarily through the continued development of university continued development of university programs. programs.

Program for the Information Society in CubaProgram for the Information Society in Cuba

Outlined in 1997. It aims for the massive use of the Information and Outlined in 1997. It aims for the massive use of the Information and Communication Technologies (ICT) with the following general Communication Technologies (ICT) with the following general objectives:objectives:

To increase the efficiency and competitiveness of production and To increase the efficiency and competitiveness of production and services, improving their quality and decreasing their material and services, improving their quality and decreasing their material and energy consumption.energy consumption.

To increase the effectiveness and to ease the decision making process of To increase the effectiveness and to ease the decision making process of government and the administration through the availability of government and the administration through the availability of reliable and updated information at all the levels.reliable and updated information at all the levels.

To generate a source of revenue for Cuba through the export of products To generate a source of revenue for Cuba through the export of products and services of the national software industry.and services of the national software industry.

Program for the Information Society in CubaProgram for the Information Society in Cuba

General objectives (cont.):General objectives (cont.):

To raise the quality of the public services, especially in To raise the quality of the public services, especially in the education, health and social security sectors.the education, health and social security sectors.

To improve the quality of the services that the Popular Administration To improve the quality of the services that the Popular Administration Councils offers by diminishing the average time and the steps that Councils offers by diminishing the average time and the steps that the citizen must carry out.the citizen must carry out.

To offer to the world, by means of Internet, trustworthy information about To offer to the world, by means of Internet, trustworthy information about Cuba, its political, social and economic reality.Cuba, its political, social and economic reality.

To offer to researchers, educators, students, functionaries and any To offer to researchers, educators, students, functionaries and any interested person, access to information that exist in the Internet interested person, access to information that exist in the Internet and in other electronic formats.and in other electronic formats.

Ministry of Informatics and CommunicationsMinistry of Informatics and Communications

Lines of action:Lines of action:

• Computer science Computer science

• Telecommunications Telecommunications

• Information Networks Information Networks

• Value Added ServicesValue Added Services

• Broadcasting Broadcasting

• Radio electrical Radio electrical spectrum spectrum

• Postal communications Postal communications

• Automation Automation

• Electronic industryElectronic industry

Created in January 2000Created in January 2000

Cuba’s Economy and ITCuba’s Economy and IT

State plays primary role in Cuban State plays primary role in Cuban economy and controls all internal economy and controls all internal development including ITdevelopment including IT

No substantial economic resources to fund No substantial economic resources to fund IT investmentsIT investments

Struggling economicallyStruggling economically

Cuba’s Economy and IT – Cont.Cuba’s Economy and IT – Cont.

Most IT is funded by foreign investmentMost IT is funded by foreign investment

Actively solicit foreign direct investmentActively solicit foreign direct investment

Relied heavily on Soviet Union for Relied heavily on Soviet Union for financial aid before 1991financial aid before 1991

After collapse of Soviet Union, economy After collapse of Soviet Union, economy falteredfaltered

Many short term loans, a lot of debtMany short term loans, a lot of debt

Cuba’s Economy and IT – Cont.Cuba’s Economy and IT – Cont.

Cuba does not allow free flow of Cuba does not allow free flow of information from, to, or within the nationinformation from, to, or within the nation

Fear that Internet will lead to greater Fear that Internet will lead to greater freedom of expressionfreedom of expression

Recognized that internet can be a source Recognized that internet can be a source of economic productivityof economic productivity

Conflicting interestsConflicting interests

Cuba’s Economy and IT – Cont.Cuba’s Economy and IT – Cont.

Communication technology important for Communication technology important for economic growtheconomic growthGovernment fears that this could lead to Government fears that this could lead to freedom of internal and external freedom of internal and external expression which could threaten the expression which could threaten the regimeregime Cuba is positive towards the growth of IT, Cuba is positive towards the growth of IT, but want to keep political information away but want to keep political information away from the peoplefrom the people

Cuba’s Economy and IT – Cont.Cuba’s Economy and IT – Cont.

Few resources for developing IT, must Few resources for developing IT, must depend on attracting foreign companiesdepend on attracting foreign companiesExpansion is difficultExpansion is difficultHave no hard currency, use currency not Have no hard currency, use currency not accepted in the global marketaccepted in the global marketIn spite of political risks, government In spite of political risks, government realizes that IT is necessary for the realizes that IT is necessary for the economyeconomy

Investment Pro’sInvestment Pro’s

Prime location in Prime location in Caribbean Caribbean

Highly educated Highly educated population capable of population capable of operating in a global operating in a global sales venturesales venture

Biotech leaderBiotech leader

Skilled IS workforce Skilled IS workforce with which to support with which to support distribution and distribution and manufacturing manufacturing operations operations

Lower labor costsLower labor costs

Investment Con’sInvestment Con’s

Political sanctions limit Political sanctions limit potential trade potential trade opportunities opportunities Cuban government's Cuban government's discouragement of discouragement of capitalism capitalism Sales and promotional Sales and promotional efforts restricted by efforts restricted by governmentgovernmentLack of skilled IS Lack of skilled IS workforce workforce

Interministerial Interministerial Commission has Commission has restricted all Internet restricted all Internet access almost all private access almost all private endeavorsendeavorsEconomic difficulties Economic difficulties make Cuban expansion make Cuban expansion difficult. difficult. The country lacks hard The country lacks hard currency and operates in currency and operates in a currency that is not a currency that is not accepted on the global accepted on the global markets markets

Strengths Strengths

The Cuban population The Cuban population is one of the most is one of the most educated amongst educated amongst developing nationsdeveloping nations

Labor costs are lower Labor costs are lower than for most than for most software developing software developing countriescountries

Cuba is already Cuba is already recognized as a recognized as a leader in leader in biotechnology biotechnology

The Cuban The Cuban government is government is fostering FDIfostering FDI

WeaknessesWeaknesses

Inadequate domestic Inadequate domestic IT/telecommunicationIT/telecommunications infrastructure s infrastructure Price and availability Price and availability of Internet technology of Internet technology and servicesand servicesGovernment control Government control of all Cuban of all Cuban marketplaces, e-marketplaces, e-commerce, and trade commerce, and trade

Lack of IT growth in Lack of IT growth in the domestic the domestic marketplacemarketplaceTraining/IT Training/IT infrastructure based infrastructure based on obsolete on obsolete technologytechnology

OpportunitiesOpportunities

Poor IT infrastructure Poor IT infrastructure provides growth provides growth opportunities for opportunities for wireless technologies wireless technologies

Market penetration of Market penetration of PCs in the home and PCs in the home and businesses is very businesses is very lowlow

Internet access is Internet access is provided by one provided by one providerprovider

ThreatsThreats

High piracy rates/lack High piracy rates/lack of value ascribed to of value ascribed to software development software development

Low financial support Low financial support for the IT industry for the IT industry

Cuba's inability to Cuba's inability to attract foreign aid and attract foreign aid and FDIFDI

International political International political sanctionssanctions

The Bottom LineThe Bottom Line

Do not waste time and money investing IT Do not waste time and money investing IT in Cubain Cuba

IT will not be successful in Cuba until the IT will not be successful in Cuba until the political, economic, and technological political, economic, and technological environments are improvedenvironments are improved