1. Visions of a High Tech U.S. -Cuban Economic Relationship
Kenneth Flamm
Lyndon B. Johnson School of Public Affairs
University of Texas at Austin

2. High Tech Means an Outward Looking Development Strategy
High tech is global markets and an international business model
Key elements
High tech/services niches:
Leverage strength in education/literacy
“Official” biotech strategy can only work if fully plugged into global trading system, foreign partners/markets
Competition with Asia, Rest of Latin America
E.g., take some of Spanish language software localization business from Argentina

3. Cuba Already Participates in Global Open Source Community

4. Cuban Internet Infrastructure a Critical Issue for Economic Growth
Very poor connections to rest of the Net
Good connections a distant and expensive dream on current trajectory
Tangled history in first years of new century

5. Cuba Joined the Online World in the 1990s
Year of introduction of international connectivity for (BITNET/UUCP) and IP networks

6. Latin American NRENs, ~ 2002

7. Latin American/European Networking Overtures
2002– EU-funded CAESAR feasibility study of Latin America-EU network links
– CLARA (Cooperación Latino Americana de Redes Avanzadas, Uruguay-based nonprofit consortium of Latin American NRENs) and EU undertake EU-funded ALICE (America Latina Interconectada Con Europa) networking project
Cuba is member of CLARA
Links to ALICE 80% subsidized by EU
Cuba offered subsidy for proposed connection
Existing fiber runs under Caribbean very close to Havana
Cuba declines

8. Integración a Redes Académicas Internacionales Red CLARA

9. Central America & Caribean Submarine Cables, ~2003
Arcos
Plan Puebla-Panamá in Planning Process

10. The Current Game Plan

11. But existing Cuban backbone supports shorter, cheaper, shallower links

12. Red Nacional de Fibra Óptica Desarrollo futuro
Stgo de Cuba
Holguín
Bayamo
Camagüey
Nueva Gerona
Matanzas
V. Clara
Cárdenas
Colón
Sagua la Grande
Puerto Padre
Manzanillo
Palma Soriano
Mayari
San Cristóbal
Moa
Sandino
Trinidad
Nuevitas
Pinar del Río
Guantánamo
Las Tunas
C. de Avila
S.Spíritus
Artemisa
San José
Placetas
Florida
Varadero
Jovellanos
Cienfuegos
Morón

13. Cancun, Caymans, Jamaica, Bahamas Turks…and FL… all short and cheap
(~2006)

14. A lot of investment needed
A lot of investment needed! -Estimated K individuals with access to Internet in Cuba -Official data on University computers/Net show poor access

15. US & Cuban Strategic Interests
For US, migration and drug interdiction are primary
Economic gains from trade & investment likely to be relatively small
For Cuba, economic gains and security guarantees primary
Rapprochment will require package that addresses all of above
“Looser” political system in Cuba may well have less ability to deliver US objectives