NARRATOR: Cuba today is a land of startling contrasts: decaying buildings, yet luxury
hotels. Long lines for food, yet bountiful markets. An uncompromising commitment to
socialism, yet the Armed Forces of the Revolution practicing capitalist economics? You bet. In
fact, they're so good at it, they're teaching free market principles to civilian businesses.
JIM WOODS: As the process unfolds, if it gathers steam, it could precipitate I think not a
security crisis, but an ideological crisis because I think it gets somewhat to the soul of the
socialist revolution.
["America's Defense Monitor" program introduction.]
NARRATOR: In October 1999, a group of retired American military officers and other
defense experts traveled to Cuba. They went to learn more about the Cuban military's surprising
role in the economy, as well as to discuss security issues with the Cuban leadership.
Because the US and Cuban governments do not have diplomatic relations, most
communication between the two countries takes place through private, unofficial channels such
as this.
MG EDWARD ATKESON: What's in it for us is the future relationship I think between
Cuba and the United States.
NARRATOR: Ted Atkeson is a retired Army major general who has traveled to Cuba three
times.
MG ATKESON: The connections that we're developing are going to be there -- perhaps not
on our side, but certainly on theirs -- in the future. And those are the officials that the United
States is going to have to deal with when they do come to the point of official recognition and
development of a relationship.
NARRATOR: General Atkeson comes from a long line of military officers with a connection
to Cuba.
MG ATKESON: During the Spanish American War, my grandfather was aboard ship right
off Havana, taking part in the maneuvers there. And then when Fidel took his movement into the
mountains there, my father happened to be the commander in Guantanamo Bay. So, I felt a
certain amount of personal interest in the country and then I found myself as a guest of the
"Maximum Leader," as they often refer to Fidel Castro.
NARRATOR: For one member of the group, Dr. Alberto Coll, it was more than just a
research trip.
Dr. ALBERTO COLL: Well, I was born and raised in Cuba and my family has long roots
going back many generations in Cuba.
NARRATOR: Alberto Coll left Cuba at the tender age of twelve, the son of a political
activist who opposed the Castro regime that came to power following the 1959 revolution. A
former principal deputy assistant secretary of defense, he is now Dean of Naval Warfare Studies
at the Naval War College in Newport, Rhode Island.
Dr. COLL: One of my most vivid memories as a six-year-old boy was seeing my father taken
away by the Cuban secret police. And my father spent nine years in prison as a political prisoner
under Castro.
NARRATOR: Not so long ago, it would have been unthinkable for Coll to return to the
country where his father was held prisoner -- a nation that has been subjected to a 38-year trade
embargo by the United States, known to the Cubans as "the Blockade." But a changing political
climate, and the invitation of the Cuban government, made his trip possible.
Dr. COLL: There were very powerful emotions when I thought about going back to Cuba
after being away for 31 years. First of all, there was a great sense of fear. How would I relate to
them? How would they relate to me coming back after having been away so long and given my
political views?
There was also a great sense of sadness and I literally would feel like my heart would
break and that I would not be able to take it. So, I put off my return as long as I possibly could,
but finally, this year I felt I was ready to go.
NARRATOR: Yet despite the end of the Cold War a decade ago, relations between the
United States and Cuba remain decidedly chilly. Zealous anti-Castro exiles in Florida still
pressure Congress to further tighten the screws on Cuba in the hope that it will eventually bring
Castro down. And the Cubans, proud and independent, are ever eager to play David to the
United States' Goliath.
Newsreel Narrator (1959):
"It was a momentous year for the New World,
beginning with the rise to power of Fidel Castro in
Cuba. Castro and his bearded troops were joyously
acclaimed following his incredible victory over
Batista. But through the months that followed, the
leftist course of his social reforms roused new
opposition."
NARRATOR: Since the Cuban Revolution in 1959, the relationship between the two
countries has been punctuated by events that have generated hostility and mistrust:
...The Bay of Pigs invasion of 1961, when a CIA-backed
exile army attempted to invade Cuba, but was quickly defeated
...The Missile Crisis of 1962, when a Soviet attempt to
place nuclear missiles in Cuba, just 90 miles from US shores,
led to the brink of nuclear war
...The Mariel boatlift of 1980, when 120,000 Cubans,
including many criminals and undesirables, were permitted to
flee to Florida
...The 1996 Cuban shoot-down of two small planes piloted
by exiles who had sought to violate Cuban airspace
...The custody battle over a six-year-old Cuban boy
rescued from a sinking boat off the Florida coast.
The US-Cuban relationship has long been "one step forward, two steps back," largely
because the two countries do not communicate with each other and misunderstandings are
allowed to fester. We haven't had formal diplomatic relations since John Kennedy was in the
White House. And to this day, US law prohibits most Americans from traveling to Cuba.
Despite his family's history, Alberto Coll wanted to go back to demonstrate his belief in
the benefits of dialogue.
Dr. COLL: I don't see any legitimate purpose that these travel restrictions serve today. I
think they only serve to isolate the Cuban people.
NARRATOR: The Havana Coll left behind three decades ago has frayed around the edges.
Most every way you turn, crumbling buildings and faded grandeur greet you. But there are also
signs of renewal. The government is making a concerted effort to restore the city's magnificent
historical legacy.
Dr. COLL: My first day in Havana was very, very exciting. It was just a day of walking all
over the city and reliving boyhood memories. Visiting the churches, and the squares, and the
public buildings, and just breathing in the great city and relating to the people, it was a wonderful
experience. And gradually, that fear that I had disappeared and gave way to a great sense of joy,
a great sense of gladness that I was back, and that I was finally back again to reengage myself
with Cuba and with my roots, and with people who had been part of my life.
NARRATOR: The trip coincided with a visit to Havana by Illinois Governor George Ryan,
the highest-ranking US official to travel to Cuba since Castro came to power. Governor Ryan
led a large delegation of Americans on a humanitarian mission that also sought to encourage a
dialogue between the two countries. In the Cathedral of San Cristobol, built by the Spaniards
before the American Revolution, Alberto Coll took part in a Mass along with Governor Ryan and
many other Americans.
Dr. COLL: I remembered as a boy going there. And we began what turned out to be a very
joyful, a very moving service, and we could sense that a lot of the Cubans in that church were
very moved that Americans had come.
NARRATOR: Despite years of official hostility, most Cubans greet visiting Americans with
a combination of curiosity and warmth.
ADM DAVID CHANDLER: When I started out on the trip, I really wasn't sure what to
expect.
NARRATOR: David Chandler is a retired rear admiral with extensive experience in Latin
America. Like Alberto Coll, he now teaches as the Naval War College.
ADM CHANDLER: Once they knew we were from the States, rather than being any sort of
antipathy or grinding an ax about the blockade or anything, it was instead an obviously sincere
and visceral positive reaction about the States.
NARRATOR: The strict US economic embargo, which includes food and medicine, has
certainly contributed to Cuba's difficulties. But to fully understand the situation today, we need
only look back a few years.
Newsreel Narrator (1963):
"An IL-18 airliner with MIG fighter escort arrives
over Moscow with Cuban Premier Fidel Castro, in Russia
for a visit with 'big brother.' The Cuban flag flies
in his honor as Castro is greeted by Chairman
Khrushchev."
NARRATOR: For three decades, Cuba's socialist revolution was a darling of the Soviet
Union, which provided billions in aid each year. In 1991, when Soviet aid disappeared along
with the Soviet Union, Cuba suffered a wrenching economic collapse. Shortages of food, fuel,
and basic commodities forced Cuba to institute rationing systems to ensure that everyone got
something. Castro declared "A Special Period in Time of Peace," comparing Cuba's plight to
wartime conditions. Many opponents thought it was his final hour.
Senator JESSE HELMS (R-NC) (press conference):
"Whether Mr. Castro leaves Cuba in a vertical
position or a horizontal position doesn't matter to me.
That's up to him and that's up to the Cuban people.
But he must -- he will leave Cuba."
NARRATOR: But instead, Cuba has battled back, instituting a series of cautious economic
reforms that have led to a modest recovery. US dollars were legalized. A few private businesses
were allowed, such as in-home restaurants, repair shops, and farmers' markets. Foreign
investment was encouraged and a decision was made to vigorously develop the tourist trade.
WOODS: The dollar is everywhere and almighty.
NARRATOR: Jim Woods worked for the Defense Department for 30 years and helped
negotiate the Cuban military's withdrawal from Africa in the late 1980's.
WOODS: This infusion of mainly tourist capital, not much of it American, has been
fundamental and I think it is beginning to trickle down.
NARRATOR: Cuba has also weathered the hard times thanks to traits Cubans are
well-known for: resilience, ingenuity, national pride, and a healthy sense of humor. Times are
still tough for the average Cuban. Most live in housing that is cramped and crumbling. Getting
from here to there is a daily ordeal. And meager rations are still the order of the day.
Yet many have adapted well to the new economic reality, especially those with access to
dollars -- mainly workers in the tourist sector or those who receive money from relatives in the
US. But perhaps the most intriguing adaptation to life without Soviet aid has been that of the
armed forces.
Dr. PHYLLIS GREENE WALKER: Essentially, the Cuban military has had to reinvent
itself.
NARRATOR: Dr. Phyllis Greene Walker has studied the Cuban military for 15 years and
authored a report called "Challenges Facing the Cuban Military."
Dr. WALKER: Instead of internationalism, its activity is now focussed primarily in terms of
domestic activities. The military has had to essentially develop the means to fund itself, in order
to reduce the drain from the civilian economy.
NARRATOR: During the years it received Soviet aid, the Cuban military was a large,
capable force that sought to promote socialism abroad by contributing troops to conflicts in
Africa and Latin America. But when the Soviet Union collapsed in 1991, the Cubans lost $5
billion a year in subsidies. This triggered profound economic problems that forced dramatic
cutbacks in every sector, including the military.
Troop strength has now been cut by more than half, down to 50,000. Heavy weapons have
been mothballed in order to reduce maintenance costs. Fuel shortages have led to radically
reduced training time. A recent Pentagon study concluded that the Cuban military poses no
threat to the United States.
As these exercises reflect, Cuba has reaffirmed its commitment to a low-tech, purely
defensive military strategy should the country be attacked, an attack they see as most likely
coming from the United States.
General URBELINO BETANCOURT CRUCES, Cuban Army (Translated): "During the last
years, we have had to rationalize our army, mainly downsize the army. This has been done to
accommodate ourselves to the new economic needs of the country. And therefore, we
increasingly sustain every day our defense doctrines, not so much in the new technology, but
mainly in the popular participation of the people in the defense of the country."
NARRATOR: As its budget and size have decreased, the Cuban military has taken on an
increasingly active role in the economy through its involvement in a variety of enterprises such
as manufacturing and tourism. Today, the Cuban military self-finances more than 60 percent of
its budget.
General REINALDO MUNOZ LOPEZ, Cuban Army (Translated): "We do everything
necessary to support the economy when the economy requires it."
NARRATOR: The Cuban military has long been involved in economic tasks. It has run
farms in an effort to feed the troops and operated factories to produce weapons and supplies.
GEN BETANCOURT (Translated): "We have done many activities in construction,
agriculture, in transportation."
NARRATOR: But in the mid-1980's, before the socialist economies of Eastern Europe began
to crumble, the Cuban military took a daring step. At the direction of Raul Castro, Fidel's
brother, who is in charge of the military, Cuban officers traveled to Western Europe to study new
business practices in an effort to make their own enterprises more efficient.
GEN MUNOZ (Translated): "Because having that, having a healthy economy, we can have a
healthy society."
NARRATOR: The Cuban officers brought back ideas developed by American business gurus
Peter Drucker and W. Edwards Deming, such as "Total Quality Management," which had helped
countless manufacturers in the US and Japan become more competitive. The Cubans came up
with their own term, "perfeccionamiento empresarial," or "business improvement," and began
applying it to the military-run industries.
GEN MUNOZ (Translated): "We have trained our officials with a broader profile, with a
much greater understanding of the role of the economy in the defense."
NARRATOR: The Ernesto Che Guevara Military Industrial Enterprise is just one of 20
factory complexes around the country managed by the military. It served as the laboratory for
the new business practices. It makes ammunition -- not just for military purposes, but for
sporting uses as well. Shotgun shells made here are exported around the world. And while it
makes a variety of military weapons, it also produces plastic food containers and other
commercial items.
The Che Guevara facility employs 3000 civilians, overseen by 30 military officers. Much
of the workforce community is housed on the base. While these apartments may be stark by
American standards, the Che Guevara Enterprise has become profitable enough to build new
housing, a rarity in Cuba.
GEN MUNOZ (Translated): "Those enterprises are among the best enterprises of the
country."
NARRATOR: Tourism has become Cuba's answer to the critical need for foreign capital,
drawing 20 percent more tourists every year. Two million foreign visitors are expected to arrive
in the year 2000, attracted by Cuba's rich cultural history, as well as its spectacular beaches.
Foreign companies are invited to invest in joint ventures with the Cuban government to keep up
with the growing demand for luxury tourist accommodations.
Gaviota, one of Cuba's largest and most profitable tourism agencies, is a joint venture
operated by the military. Gaviota oversees the construction of new hotels, runs restaurants, and
manages subsidiary businesses.
Dr. WALKER: They are involved in building hotels. They're involved in the transport of
tourists by air through the republic, maritime excursions with tourists. It's amazing how they've
been able to build that organization.
NARRATOR: The Cuban military used to play host to huge Soviet submarines that once
docked at this former navy base. Now the only kind of subs docking in Cuba are for the benefit
of tourists, such as this yellow submarine named "Magic World" at the Varadero beach resort.
Varadero now boasts 38 luxury hotels, and counting. Gaviota is expanding this marina to
accommodate visiting yachts. A mansion once owned by the DuPont family now serves as a
clubhouse for a new 18-hole golf course, a sport which despite its bourgeois image, once
attracted at last one hero of the Revolution -- Che Guevara himself.
Perhaps the most significant contribution the Cuban military has made to the economy is
in the form of the know-how and expertise of its officer corps. Many officers are tapped to work
in civilian enterprises to take advantage of their managerial skills, and also to provide them with
employment outside the shrinking military.
WOODS: They're providing mid- and top-level management and they're providing
technical expertise. So, I think that's hard to quantify, but it's certainly an important contribution
to the development of the national economy.
NARRATOR: Sugar is Cuba's top export and critical to the economy, though bad weather,
fuel scarcity and poor management had led to sharply declining harvests. But in 1997, General
Ulises Rosales del Toro, then Cuba's top general, was put in charge of the vast sugar industry in
an effort to turn it around. Since then, the sugar harvest has begun to improve.
ADM CHANDLER: It makes sense that the Cuban military would be tapped in this manner.
Those sorts of fundamental principles that a successful military officer obviously masters and
lives by, I think are directly applicable to private industry... principles such as "the unity of
effort" and the "principle of the objective," keeping your eye on the target.
NARRATOR: Despite drastic downsizing and its forays into business, the Cuban military
remains one of the most respected in Latin America.
Colonel GUILLERMO FRANK YANES, Cuban Army (Translated): "The main mission of
the armed forces in our society is the defense."
WOODS: This is a professional, well-motivated force with a sense of honor.
ADM CHANDLER: At a time when morale could be very low, I never sensed that it was.
On the contrary, I sensed they were highly professional and showed tremendous loyalty up the
chain of command.
NARRATOR: Based on the success of its own enterprises, the military has been
commissioned to spread its business acumen to the civilian sector.
Dr. WALKER: Last year the Cubans decided to extend the business improvement system to a
select number of civilian-run state enterprises. And the rationale for doing so was because the
experiments which had initially been conducted in a select few of the military's enterprises, the
experiments proved successful.
GEN MUNOZ (Translated): "We not only produce efficiently what we need, but we also
maintain a very high economic and financial discipline. The other sectors of the economy see
the systems used by the armed forces as an example."
NARRATOR: The process of applying "business improvement" to civilian enterprises is still
underway and it remains to be seen whether the success the military has had with its own
businesses will translate to the civilian sector. But the very fact that communist Cuba is
implementing capitalist economic strategies, however cautiously, suggests there is a new
pragmatism afoot.
WOODS: What they're accomplishing, whether it's their intent or not, is introducing, if
you will, free market -- gradually introducing many of the techniques which underlie free market
economics and private practice. They're viewing it as economic change, but I think, inevitably, it
will transform itself in various ways into social and political change, as well.
NARRATOR: Yet even as Cuba has permitted a few economic reforms, it has refused to
accompany them with political reforms that would change the one-party system or allow dissent.
FIDEL CASTRO (from a speech): "Socialism or Death!"
NARRATOR: As a result, many Cubans have conflicting emotions about their country.
IVAN CASTRO (at work):
"I like my people, I like my country, but I don't
like my system. I like a democratic system, a free
system."
NARRATOR: A symbol of Cuba's new dollar economy, former doctor Ivan Castro now
peddles tourists around in his bicycle taxi to earn much-coveted US dollars. On a good day, he
can make $20, about a month's salary for a doctor.
Dr. WALKER: The cautious steps that have been taken in Cuba are steps that have been
necessary for the survival of the revolution. Cuba has maintained itself firm that it will not
tolerate political reforms going hand in hand with economic change. And the question is,
because there aren't good models out there, is whether this is possible.
NARRATOR: Fearing a loss of control, the government has slowed down or even reversed
some reforms. Meanwhile, the country is a long way from economic stability.
Dr. COLL: I think the current Cuban economic reforms will not suffice to solve Cuba's
problems. Cuba's basic economic problem is generating more economic growth. The current
reforms are a helpful step in that direction, but there is still much that needs to be done to provide
further incentive to people to become more productive.
NARRATOR: But even as Cuba negotiates the uncharted terrain of post-Cold War socialist
economics, the United States remains on the sidelines, opting out on opportunities to shape
Cuba's future. What if the US chose to engage Cuba instead?
MG ATKESON: I think it would be very beneficial and beneficial on a worldwide macro
scale. I think that if the United States were to essentially lift most of its embargo, that you would
rapidly find a running down of the socialist edge there.
Dr. COLL: It is in our interests as a great country to be talking with Cuba, to be engaging
Cuba at the people-to-people level, and also at the government-to-government level. And that
only good things from the viewpoint of American interests will come from a policy in which we
talk with the Cubans, we meet with them, we engage them even in the midst of whatever
disagreements we will have with them.
NARRATOR: In 1996, President Clinton signed the controversial Helms-Burton Act
designed to further tighten the embargo. With the stroke of a pen, he essentially turned over
control of US-Cuba policy to Congress.
As more Americans become interested in this fascinating Caribbean neighbor, the more
Congress may feel liberated to open the door to Cuba. In the meantime, a growing number of
Americans are opening that door themselves.
NARRATOR: Special funding for this program was provided by the Christopher Reynolds
Foundation.
