Wire & Cable ASIA – March/April 2011
38
From the
americas
WikiLeaks
The unspectacular ‘document dump’
yields a nugget: Cuba’s perennially
weak economy is feared on the verge
of collapse
For all the embarrassment felt in American and other military
and diplomatic circles, the great bulk of themore than quarter-
million confidential diplomatic cables released to mainline
media by the website WikiLeaks beginning 28
th
November
may be described as inconsequential. One cable, however,
squarely in the commercial sphere, is very pertinent to those
American companies that have been lobbying Washington
for greater liberalisation of the rules governing US trade
with Cuba.
The cable, sent by the US Interests Section in the Cuban
capital of Havana, which Washington maintains lieu of
an embassy, was released 10
th
December by WikiLeaks.
It apparently was written, in February 2010, by America’s
chief of mission in Cuba. The cable details a breakfast
meeting held by the Interests Section’s chief economic officer
with diplomats from some of Cuba’s main trading partners,
including China, Spain, Canada, Brazil and Italy as well as
France and Japan, both among the island’s big creditors.
Warning that Cuba’s economic situation could become
“fatal” within two to three years, the cable incorporated
the concerns of diplomats – including China’s – that the
communist-run country has been slow to adopt reforms.
The cable described the Chinese diplomat as expressing
“visible exasperation” with Cuba. It said the Chinese were
particularly annoyed by the island nation’s insistence on
retaining majority control of any joint venture.
“No matter whether a foreign business invests $10 million or
$100 million, the GOC’s (Government of Cuba’s) investment
will always add up to 51%,” the cable quoted the unidentified
Chinese commercial counsellor as saying. The Chinese also
complained about problems with the repayment of loans, and
in particular about a Cuban request to extend the repayment
period on one loan from a year to four years.
The cable also referred to the Italian diplomats, who cited
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government sources in Cuba to the effect that the country
“would become insolvent as early as 2011.” More recently,
Paul Haven of the Associated Press, citing President
Raúl Castro’s warning that the state can no longer afford
to subsidise nearly all forms of Cuban life, noted that
“it is no secret that Cuba’s financial situation is increasingly
dire.” (“US Cable: Cuba to be Insolvent within 2-3 Years,”
10
th
December)
Yet, Mr Haven wrote, “[Cuba] has survived the collapse of the
Soviet Union, which caused the near-failure of its economy,
as well as a 48-year US trade embargo, the retirement of
revolutionary leader Fidel Castro in 2006, and countless
other bumps along the way.”
No doubt the many American companies chafing to do
business in Cuba will take encouragement from this
resiliency. But they have been cautioned.
Education
‘Stunning’ results for Shanghai
show American high-school
students, among many others,
at a competitive disadvantage
The United States has received disturbing news after a
decade of intensive effort to improve its schools. In a new
global survey of the scholastic proficiency of 15-year-olds,
the results from more than a dozen countries were signifi-
cantly better than the statistical average in their areas.
United States scores were not. American students were
found to be average in reading, average in science, and
slightly below average in maths. They are, not to put too fine
a point on it, ‘C’ students.
This mediocre showing has occasioned deep chagrin, not
only in academic circles. US officials said it shows that the
nation is slipping further behind its competitors despite years
spent seeking to raise performance in reading and maths.
Along with a number of other educational reforms, the 2002
“No Child Left Behind” law so dear to the heart of former
President George W Bush clearly has fallen short of its aims.
Apparently incontrovertible evidence of the unimpressive
quality of the American students, who significantly lag
their counterparts in several countries in Asia and Europe,
was presented in a 7
th
December report from the 34-nation
Organisation for Economic Cooperation and Development.
The Paris-based OECD defines its mission as helping
governments tackle the economic, social and governance
challenges of a globalised economy.
Nick Anderson summed up the OECD findings in the
Washington Post
. He wrote: “South Korea is an emerging
academic powerhouse. Finland and Singapore continue
to flex their muscles. And the Chinese city of Shanghai,
participating for the first time in the Programme for
International Student Assessment [PISA], topped the 2009
rankings of dozens of countries and a handful of sub-national
regions.” (“International Test Score Data Show US Firmly
Mid-Pack,” 7
th
December)
‘A Sputnik moment’
The OECD testing programme tracks the knowledge and
problem-solving abilities of 15-year-olds, and grades the
results of its respected PISA test on a 1,000-point scale. The
most recent test was conducted in the US from September
to November 2009, among 5,233 students from 165 public
and private schools, randomly selected. The keenest interest
in the report indeed centred on a finding that took the
education experts by surprise. Students in the Chinese city
of Shanghai handily outscored their counterparts across the
world, in reading as well as in maths and science. Strong
marks were also reported for Hong Kong.
On the maths test, students in Shanghai scored 600; in
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Singapore, 562; in Germany, 513; in the United States, 487
In reading, Shanghai students scored 556, ahead of
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second-place Korea with 539. United States students
Statue of Liberty Image from BigStockPhoto.com
Photographer: Marty