The U.S. Secretary of State, Marco Rubio, stated during the 81st United Nations General Assembly that the current political and economic model of Cuba constitutes one of the main obstacles to attracting foreign capital and asserted that, as long as there are no guarantees for the private sector, investors will continue to stay away from the island.
No one is going to invest in Cuba under its current government model. They simply will not do it, Rubio stated during remarks released this Wednesday by the U.S. Department of State.
Rubio stated that the problem goes beyond the restrictions imposed by U.S. legislation and specifically pointed out the lack of certainty for investors regarding the stability of economic rules in Cuba.
To illustrate his argument, he cited the example of a hypothetical Spanish entrepreneur willing to invest 10 million dollars in the island.
“Why would I invest 10 million dollars in Cuba if in two years they can unilaterally decide to change the rules, take my investment, keep the money, and not give me anything back?” he questioned.
The Secretary of State stated that situations like this have occurred before and assured that this trajectory affects the confidence of foreign companies.
«There is simply no legitimacy or credibility sufficient to believe that this regime will meet those conditions, because it has never done so before,» said Rubio, using the term by which he referred to the Cuban Government.
Rubio also referred to the Helms-Burton Act, which is part of the legal framework of U.S. policy towards Cuba and imposes restrictions that affect certain commercial relationships and U.S. investments on the island.
He explained that these legal limitations affect what U.S. companies can currently do, but he maintained that the difficulties in attracting investment are not limited to American firms.
"Cuba can trade with any country in the world except the United States. Why do many companies not invest?" posed the head of U.S. diplomacy.
Rubio believed that, in order to attract capital in the future, Cuba would need a model that offers the private sector security for its investments, opportunities for profit, and guarantees against potential confiscations.
"It is about establishing a governance model on the island that instills confidence in the private sector, allowing investors to know that they will recoup their money, earn profits, and that their investments will not be seized without compensation," he explained.
The Secretary of State, however, left open the possibility that U.S. companies could play a role in a future Cuba under different political and economic conditions.
He also emphasized the potential of the Cuban diaspora, both in the United States and in other countries, to participate in a possible economic transformation of the island.
The statements are part of a broader intervention in which Rubio stated that “the Cuban Revolution has failed” and suggested that the country has the opportunity to initiate changes that could lead to what he described as a path of progress.
"They have an opportunity to start placing their country on an irreversible path toward progress and a better future. And that involves both political freedom and economic freedom," he noted.
Rubio warned, however, that any transformation would be gradual. "You cannot reverse more than 60 years of mismanagement, corruption, and incompetence in six months," he stated.
In the context of the 81st UN General Assembly, Rubio also pointed out that the Cuban authorities have "an opportunity" to change the course of the country and stated that Washington will remain engaged and open to measures that could promote that process.
Moreover, regarding the future of Cuba, the Secretary of State stated that any transformation will be a lengthy process and warned that "more than 60 years of mismanagement, corruption, and incompetence cannot be reversed in six months."
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