46 Chapter 2
- The free import and sale of motor vehicles, subject to taxes and fulfilment of envi-
ronmental regulations.
To overcome the current stagnation in the growth of the GDP and
the crisis of liquidity through these economic measures and to incor-
porate the sale of professional services and the incomes that stem
from it into the economy as a whole, a sustainable level of economic
growth is indispensable. To achieve this, it is necessary to develop an
internal market that can be articulated with the international one and
with the various branches of the Cuban economy.
The scenarios that would favor the consolidation of this model
might be, among others, the following: (1) The U.S. blockade evolves
gradually toward diminishing negative regulations, and in Obama's
second term full diplomatic relations are established. (2) The availabil-
ity of oil on the island is increased as a result of increasing domestic
oil extraction and agreements with Venezuela already in place. (3)
Cuba significantly increases foreign investment and the establishment
of mixed companies. (4) New credits of public and private foreign
capital are obtained. (5) The foreign debt is renegotiated on a new
flexible basis. (6) The prices of the traditional products—sugar, nickel,
tobacco—increase on the international market, and profitable new
associations are achieved for the sale of new products of biotechnol-
ogy and the pharmaceutical industry. (7) There is an increase in the
production of new and traditional products, and tourism continues to
grow. (8) The production of food for local consumption reaches ideal
levels. (9) There are no natural catastrophes and epidemics.
As policy alternatives that would foster the development of the
new model, I would suggest the following: (1) continuing the develop-
ment of the economic reform, giving it a more productive and less
financial dimension; (2) adopting measures that favor the solution of
the debt problem and relations with financial international organiza-
tions; (3) further improving the conditions for foreign investment; (4)
- While one may own a house in the city and a second house at the beach, renting
either of them or simply a room in one of them is prohibited. Acquiring a license to do
so is difficult and costly. The issuing of such licenses was halted in 2008, but since Octo-
ber 2010 licenses have once again become available.