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Caribbean-Latin America
The Real Reason for Obama’s Cuba Breakthrough
2016-07-24
BLUF: Money.
With economic power will come political power, and the veterans of the Castro regime will have nothing left to show for sixty years of poverty and sacrifice. The ‘reform’ faction in Cuba hopes that an interim twilight period between total socialism and total capitalism will allow them to do what other ex-communists have done, and shift their political control in a socialist context into political control and economic power as Cuba changes. They hope for the kind of privatizations and investments that leave the current elite holding the sources of wealth.

The problem with that theory is that Cuba isn’t a China or a Vietnam, where there is enough wealth-creating power to unleash so that a process of economic reform can be managed in such a way that it shores up rather than undercuts the power of the current rulers. Cuba is too small and too poor.

That the Obama White House thinks that a deal with Castro under the circumstances is a diplomatic victory and a trophy to go in the trophy case is not a mark of wisdom—though one can hope that the people who arranged it are smart enough to know that, and are only making a big deal out of it because of all the aging hippies and Sandernistas out there who will hail this as a glorious victory for working people everywhere.

But it remains the case that under the current circumstances it is in America’s interest to do what we can to offer a soft landing to a failed regime and a failed polity in a neighboring state. We don’t want Cuba to collapse in poverty, anarchy and ruin. We don’t want the Cuban people to starve—and to build rafts. We don’t want order to break down. Transition will clearly come; something that is unsustainable won’t last forever. And though we may have to hold our noses to do it, when the time comes it will be better for U.S. interests to work with the heirs of the Castros to arrange a transition that they can live with. We may need to acquiesce in the creation of some new Red Tycoons in Cuba as the price of a peaceful transition.
Why not let the people stand the Red Tycoons against the wall, as was done in Romania, and have some less-tainted folks step up?
The same, by the way, is true in Venezuela. In that horror of a failing state, the idiots who have created this disaster may deserve a terrible fate at the hands of the people they have done so much to ruin, but it is in everyone’s interest to organize as smooth a transition as possible when the time comes. Anarchy, chaos, urban street fights among armed gangs, or in the worst case, episodes of civil war—none of this is good for the Venezuelan people, Venezuela’s neighbors, or the United States.

Two important countries in our neighborhood are melting down; dealing with that is likely to take much more of the next President’s time than most people now think. Pragmatic and levelheaded policy is what we are going to need, and getting to a good place isn’t going to be easy.
Posted by:Pappy

#14  It [Cuba] gets more oil than it needs [from Venezuela], and sells the surplus.

The arrangement is coming unglued because Venezuela is running out of other people's money? Cuba ran out of other people's money long ago. Socialism and communism has a built-in self-destruct button that has made it unworkable wherever it's been tried.
Posted by: JohnQC   2016-07-24 17:49  

#13  Chavista streetlight decorations are in order
Posted by: Frank G   2016-07-24 16:32  

#12  MUD the opposition commando, is barely unified, overly cautious and nearly as incompetent politically as the PSUV is economically. There will be no recall election this year, the CNE (election board) along with TSJ (high court) can, does and will override any initiative by the MUD controlled Nationally Assembly. There is still guiso to be had, and heck maybe the Wiley Chinee will come thru at the last minute and keep the game rolling along until oil hits $100 again. Of course there is the off chance of famine... Which is bad politics. If the regime somehow pays the upcoming October Vene Bonds there will be famine in February. If the regime balks and defaults maybe something can be worked out with the IMF, which would likely mean a change in government.

All of the state oil companies (PDVSA) bonds lack collective action classes has does some of Venezuela's sovereign debt, so it could be vulture city.
Posted by: Shipman   2016-07-24 16:17  

#11  heh
Posted by: Frank G   2016-07-24 12:14  

#10  Grom moves in mysterious ways.
Posted by: g(r)omgoru   2016-07-24 11:59  

#9  that was for #6. Grom snuck in ahead of the "submit" button
Posted by: Frank G   2016-07-24 11:58  

#8  ^Absolutely. The populace has to be so totally against the regime's policies, ideals, and status that they rise up themselves to Ceausescu the regime before we intervene. By feeding, aiding, and extending their submission we aren't doing them any favors in the Macro sense
Posted by: Frank G   2016-07-24 11:50  

#7  My impression is that there is a well developed, intelligent and very capable opposition in Venezuela, which actually won the recent election.

A preview of the coming USA November elections.
Posted by: g(r)omgoru   2016-07-24 11:49  

#6  My impression is that there is a well developed, intelligent and very capable opposition in Venezuela, which actually won the recent election.
Also it is said that the daughter of the ex dictator is now a billionaire.
Is it really necessary to support the old guard in Venezuela and make them all rich?
Posted by: Grins Snese4215   2016-07-24 11:02  

#5  It was all about Legacyâ„¢ and screwing American safety and principles, like the Iran deal
Posted by: Frank G   2016-07-24 10:39  

#4  After everything implodes, where else will he be able to erect his Presidential Library? Baltimore? Ferguson?
Posted by: Procopius2k   2016-07-24 08:06  

#3  Appears to be something of a pattern, or is it just me ?
Posted by: Besoeker   2016-07-24 05:19  

#2  The editors of the Economist would have the American middle class bail out another corrupt leftist government(s).
Posted by: jvalentour   2016-07-24 00:38  

#1  Pipe dream. In other words, they just need to hang out a sign for a little while that says, "Pardon the mess but we are remodeling."
Posted by: Percy McCoy7690   2016-07-24 00:19  

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