When I first mentioned that I was traveling to Cuba, people’s eyes lit up. It’s as though I had just announced my voyage into deep space or my trek to find the lost city of Atlantis; there existed the same sort of wonder, wistfulness, and curiosity. People from my mother to my professors to the guy who sells me my bagels mentioned old cars and communism, the Castros and the new U.S. Embassy. I usually shrugged and I promised that I would take photos.
However, upon my return, the questions began, and I was shocked at how little the people around me actually knew. Because of travel regulations, an education system that only focuses on the Cold War, and infrequent reports in the media, few people know what the Cuba of today really looks like. From the Cubans that I’ve talked to and the things that I’ve learned on the ground, here’s my list of the most important facts about our neighbor to the south:
1. The Embargo Doesn't Work Quite Like You Think It Does
In the U.S., the word "embargo" is synonymous with “ban.” When we learn about embargoes in our high-school level U.S. or World History classes, we learn that it is an agreement by one government not to trade with another. It’s one-sided, and often unfair, but ultimately, it works between only two countries. In Cuba, this couldn’t be further than the truth.
The word that they use in Cuba isn’t “embargo,” but “blockade.” This is because el bloqueo not only prevents U.S. businesses from operating in Cuba, but also limits the interactions that other countries can have with Cuba. This conflict has many effects on the Cuban economy, but it’s easiest to understand some of them through example. Written into one of the six government actions that maintain the embargo is a law stating that if a product contains more than a certain percentage of Cuban raw materials, it cannot be sold in the United States. If a cellphone company in Japan uses Cuban nickel for their cellphones, and that amount of nickel is over the U.S. standard, then those phones may not be sold in the U.S. For most countries, the choice is simple; when choosing to trade between a relatively small island with a faltering economy and a country with one of the largest consumer markets in the world, they’re going to choose the second one. As such, this leaves the Cuban economy fairly isolated in the world market, with experts predicting losses of over $685 million dollars a year.
2. They Have Two Currencies
It’s interesting, and it’s also imperative for travelers to know: Cuba has two currencies. One is the Cuban peso, called Moneda Nacional. The other is the Convertible Cuban Peso, also known as the CUC.
The Cuban peso is the State currency, or the currency of the people. It is the money that the Cuban Government uses to pay its’ employees. At almost any state-operated job (this could be anything from a doctor to a lawyer to a restaurant owner to a teacher), the salary is 480 Cuban pesos a month. This is around 20 U.S. dollars. It is most often used in bread shops or outdoor markets.
After the collapse of the Soviet Union in 1990, Cuba was thrown into economic turmoil. Here, we see the invention of a new currency, designed to have more weight in foreign markets and attract tourism. This new currency, the CUC, would function as foreign exchange certificate, allowing people to pay for touristic services and luxury items. Its exchange rate is about equal to the dollar.
The tourist currency, along with the recent legalization of private hotels and restaurants, has done much to stabilize Cuba’s economy since 1990. However, since the introduction of the CUC, economic inequality in Cuba has increased. Additionally, because of the recent influx of tourists, jobs in the tourism industry make more than surgeons, architects, and teachers. I had two tour guides on my trip there; one was trained as an economist, and the other as a doctor. By working as tour guides, they have the potential to make more in a few days than a doctor would in a month. The existence of two separate currencies is one of Cuba’s biggest problems, and is expected to be a topic of great interest in the next few years as the country’s elections approach in 2018.
3. We Have Diplomatic Relations...Sort Of
On December 17th, 2014, President Obama announced that the countries would begin to take steps towards normalizing relations with Cuba. He announced the swap prisoners: of three of the Cuban Five for USAID sub-contractor Alan Gross. He announced the establishment of embassies in both countries, the cooperation of Cuban and American banks and telecommunications companies, and that the U.S. government would ease travel restrictions to Cuba. The majority of these announcements are not yet completed, but still in progress.
The embassy exists. It looks a bit like a prison but it exists. While on a walking tour, our tour guide joked that if we wanted to take pictures, we should do so quickly, because the area is under heavy surveillance by both the U.S. and Cuban governments.
In terms of relations between U.S. and Cuban banks, they’re still negotiating a course of action with the U.S. government. The embargo is still in place, which means that it is still effectively illegal for Americans to spend money in Cuba; the Treasury Department can still legally impose huge sanctions for Cuban banks that attempt to deposit American dollars. Additionally, it’s difficult to know how many businesses in Cuba are able to get ahold of a machine to process credit cards. As of right now, it’s no issue to change your American currency at the airport and at major hotels, but even though President Obama promised that Americans would be able to use credit and debit cards abroad, this is still a country where cash is king.
Finally, there’s constant talk in the United States about Cuba’s “opening up.” Cuba is already quite open. It has a tourism industry that very happily caters to French, German, Spanish, Canadian, and many other tourists. What we need to understand is that it is the U.S. that needs to open. As such, it is still illegal to travel to Cuba for tourism purposes. However, the U.S. government has now given 12 reasons for which a person can apply for a general license to travel to Cuba, which include family visitations, public performances, and educational activities. So unfortunately, you can’t hit the beach and try Hemingway’s daiquiri of your own free will just yet. However, many American businesses, including Carnival Cruise Lines, are trying to find ways to incorporate educational travel into their itineraries, which will make travel more accessible to the general public.
4. The Revolution is Alive
Many people in the U.S. believe that once the Castros are out of power, Cuba will return to “normal,” with “normal” being defined as a American-like, capitalist, perhaps pre-revolution government. This is definitely not the case.
Even through the country’s economic difficulties, the vast majority of people in Cuba support the ideals of the Cuban Revolution. Socially, it did some incredible things for the country. Cuba has an incredible health care system which is accessible to all of its citizens. They feel comfortable visiting doctors, policlinics, hospitals, psychologists, and psychiatrists; they are able to get the medication they need for free or for very little cost. Additionally, education is a priority, and university is free for all students. Perhaps my favorite fact about the Revolution has to do with the Literacy Campaigns of 1961. Thousands of volunteers left the cities in droves to educate the people of the countryside; over the course of a year, they increased the country’s literacy rate to 99%. That ideal is still held today, with schools being funded with 10% of the country’s annual budget.
Cuba takes pride in both of these systems that the Revolution helped to create and strengthen. There are frequent posters and murals around the city that encourage the spirit of brotherhood and of equality. If people are expecting a complete change of government when Raul Castro steps down from the presidency, they’ll be in for a surprise. The country has set on a course for change, that much is certain. However, this change will still hold many of the ideals of the Cuban Revolution at its core.
5. The Cuban People Want Us to be Friends
One of my most poignant moments in Cuba was a conversation I had with a high-school student named Silvia. I asked her what she thought about the U.S., and additionally, what she had learned about my country in her school. Her answer was truly incredible.
She explained that in high-school, students are required to take a course called the Contemporary History of the Americas. In it, they learn the history of both North and South America between the 20th and 21st centuries, and of course, how all of those historical events relate to Cuba. However, when it came to the U.S., the same idea was taught again and again. The students were taught that there is a great difference between the American government and the American people.
As an American in Cuba, I received a lot of attention, but none of it was negative. People were always eager to tell me who they knew that lives in the United States, be it Miami, New York, Texas, or Arizona. And the first words out of their mouths are something along the lines of this: “America and Cuba. Great friends.”
When I heard Silvia explain what she had learned in school, suddenly all of my interactions on the street made sense. Cubans have learned that the American people mean them no harm. They have learned that we would would like to be friends, and that it would be incredibly beneficial for both countries to re-establish complete diplomatic relations.
And this final fact is perhaps the most important on this list. If we can educate ourselves about their people, and see past the decades of mistrust that our governments have construed, not only will both countries benefit economically, but the world very well may be a better place.
As of January 26th, the U.S. Treasury Department has once again amended the sanctions against financial transactions and travel to Cuba, in order to comply with Obama's plans to normalize relations. You can read about them here.
