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Chapter 26

Development of Economic Systems

Male Reporter: For nearly a half century, corporate America has looked upon Cuba as forbidden fruit. An island just 90 miles away that remains basically off limits to US business, but this week Fortune 500 companies started thinking about what life would be like after Fidel.

Male Speaker: And what we were telling our friends and our clients is take the business plan out of your shelf and dust it off.

Male Reporter: The conventional wisdom from Washington and Wall Street is that Castro is likely successor and Brother Raul will bring Chinese style capitalism to Havana.

Male Speaker #2: That is maintaining tight political control while experimenting more then his older brother has with capitalistic type, initiatives in Cuba.

Male Reporter: When it comes to doing business in Cuba American companies are missing the boat. Despite the US trade embargo on Cuba each year more then two million people from across the world vacation on the island and they aren’t arriving in US airlines or sleeping in US owned hotels.

Male Speaker #3: They are definitely being left out I mean, Cuba is not waiting for the United States.

Male Reporter: Instead Havana has turned to allies like Venezuela Hugo Chavez who is pumping oil and cash into the Cuban economy. Meanwhile foreign energy companies are vying to tap into the islands potentially huge petroleum reserves. Embargo opponents wary Americans can't compete where they can’t play.

Male Speaker #3: There are dozens of foreign companies with investments in virtually every fabric of Cuban life.

Male Reporter: But just as American companies are dusting off their plans for the island Cuba business consultant Tao Baboon says Havana has also prepared for an American invasion of fast food restaurants and big box retailers.

Tao Baboon: This may be a surprise to a lot of people, but we have seen plans conducted by the Cuban government that in effect anticipated that kind of development.

Male Reporter: Cuba still needs a big economic boost. Much of its housing is crumbling, shopping for rationed goods remains a way of life and street vendors still eek out a living refilling disposable lighters.

But back in South Florida the idea of lifting the embargo without real democracy in Cuba is considered blasphemy. Until the politics are sorted out, business in Cuba could stay a dream it’s so close, but still so far away.

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