Military and family remittances, well kept secret

money to Cuba from the cell, Western Union launches application

On July 8, the then Minister of Economy and Marine Planning Murillo Jorge exhibited at the National Assembly of People 'sPower the state of the Cuban economy in the first half, when there was a poor growth of 1% of gross domestic product (GDP ), half of what was proposed by the Government.

Murillo attributed to him since December last year financial constraints caused by falling export revenues and limitations on fuel assurances were presented. But in his long speech it does not appear any reference to the amount of foreign exchange proceeds from exports of specialized services, mainly of doctors and paramedics to Venezuela, Brazil and Ecuador; there is no talk of the proceeds of the 3.6 million tourists who visited Cuba in 2015; nor family remittances, mainly from USA are mentioned.

The dramatic financial situation in which the government says the Cuban economy is contradicted information The Havana Consulting Group (THCG) last June that remittances to Cuba reached a record high of 3354.12 million in 2015.

THGC president, Emilio Morales, said that from 2008 to 2015, remittances grew at 1907.06 million, with an annual average of 238.3 million dollars, which said, is "unprecedented".

THCG explains the increased flow of money to Cuba by increasing emigration, the lifting of restrictions on the amount of remittances sent to Cuba, travel by Cuban Americans to the island and opening up the sector of the private economy and non -agricultural cooperative.

Military and remittances

Western Union has offices in many of the Recaudadora currency stores (TRD) in the 15 provinces and the special municipality Isla de la Juventud, which are led by the Administration Grupo Empresarial SA (GAESA) of the Revolutionary Armed Forces (FAR).Therefore, the military has control of the largest amounts of money coming to Cuba in remittances.

FINCIMEX, financial institution of the CIMEX Corporation directed by GAESA, issuing magnetic cards to Cuban users free as Caribbean Transfers, Ocean Card, Trascard and American International Service, SA Holders of these cards, after signing thecontract, can receive money from Europe, United States, Portugal, Angola and other parts of the world and charge no problem at banks and ATMs throughout Cuba.

In addition, the Postal has established offices in major cities in Cuba dedicated to the collection of money sent mainly from Europe. Many people turn to this service, which actively compete with Western Union.

With the exception of --personas "mules" money dedicated to enter the country without declaring it , to deliver it , I upon payment of a fee, its destinatarios-- the Cuban government has control of most of the money sent Cubans living abroad to relatives in Cuba.

But the government never informed on remittances or gains that accrue to them travel by Cuban Americans to the island, despite having the money properly accounted for .

The report "Tourism, international visitor arrivals, January to December, 2015, edition January 2016" issued by the National Bureau of Statistics and Information (ONEI) in the section "International visitor arrivals by country, from January to December" in "Other" are referred to Cuban Americans and Americans who visited the island: 943,157 visitors, who mostly stayed in hotels and houses of private entrepreneurs engaged in room rent. Both the Ministry of Tourism, as the National Tax Administration Office (ONAT) led a rigorous control of expenses of these people during their stay in Cuba.

About figure of 3,354 million dollars that went to Cuba in 2015 in remittances in 2015, THCG not identify the sources who provided such information, which lacks credibility.

Who does know the exact amount is the Cuban government, but kept secret by its policy of not considering those entries of money as part of GDP.

What is certain is that the amount of remittances that came to Cuba in 2015 was higher than the entries for the export of nickel, sugar and snuff whose prices are very depressed in the international market, as well as gross receipts tourism, which were 2.800 million, and the sale of drugs.

More than 60% of the Cuban population receives remittances sent by their relatives living abroad, mainly in the US. For the multiplier effect of these remittances, the rest of the population, by multiple economic gadgets, take advantage of them.

But who spends the rake and pick handles most of dollars entering Cuba are more than 2,000 TRD established throughout the country, which have a monopoly on retail sales in dollars. In them, Cubans are forced to spend much of the dollars they receive food, toiletries and household appliances. Recall that last year the TRD had a turnover of 5,000 million dollars.

Remittances have also been decisive in the creation, growth and expansion of micro and small private enterprises. Last year, 510,558 Cubans, covered in Resolution 42 of the Ministry of Labour and Social Security (MLSS), were engaged in authorized private activities.

Only in Havana, 2,000 homeowners, licensed, have enabled 4,700 rooms for rent to tourists, and there are 400 small private restaurants, many of which have signed contracts with travel agencies for sending packets of tourists to its establishments. But still the Cuban government does not recognize these small entrepreneurs as legal persons and, therefore, not exact figures of how much they have represented remittances in the flowering of these SMEs (small and medium enterprises): what is said about it it is purely speculative.