Despite No Entrepreneurial Experience, Florida Governor Ron DeSantis Excoriates Government Of Cuba For Further Creating Space For The Re-Emerging Private Sector, For Entrepreneurs.
/Florida Governor Ron DeSantis Excoriates Government Of Cuba For Further Creating Space For The Re-Emerging Private Sector, For Entrepreneurs.
Owners Of Restaurants, Airbnb Properties, Vehicle Repair, Internet Application Developers, Confection Makers, Fashion Designers… All Vessels Of Government. None Are Real Entrepreneurs.
The government of the Republic of Cuba (population approximately 11.3 million) reported as of 30 June 2022 there were 3,991 “private and fifty-one state MSME’s [micro, small, medium-size enterprises], as well as fifty-five non-agricultural cooperatives (CNA), which have generated more than 70,514 new jobs.” 20 September 2022 is the deadline for the “transition process of self-employed workers, with more than three contracted employees, towards a legal form, either Mipyme [Micro Peque as Y Medianas Empresas] or CNA.” The creation of the Limited Liability Company (LLC) was authorized in 2021 for privately-owned companies.
On 10 May 2022, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, issued the first license authorizing a direct equity investment in and direct financing to a privately-owned company located in the Republic of Cuba and owned by a Republic of Cuba national.
Ron DeSantis, the 46th Governor of the State of Florida (population approximately 22 million) has no private-sector experience. No entrepreneurial experience- nothing in the public domain about his trying to start a business, succeeding, failing, etc. His livelihood has been provided by taxpayers (United States Department of Defense, United States Department of Justice, State of Florida).
Disappointing then for him to opine on 22 July 2022 in a media release as to what is an entrepreneur, how an entrepreneur operates, and how an entrepreneur in the Republic of Cuba might use (or be prevented from using) and benefit (or not) from direct equity investment and direct provision of financing that originates from the United States- quite likely by individuals of Cuban descent residing in the State of Florida, particularly in and surrounding the cities of Coral Gables, Miami, and Tampa, and less so from the State of New Jersey. Governor DeSantis knows:
The majority of remittances to the Republic of Cuba originate in the State of Florida (approximately 1.5 million residents of Cuban descent according to 2020 Census);
The majority of regularly-scheduled and charter flights to the Republic of Cuba originate in the State of Florida;
The majority, though not all, of inputs used by MSMEs in the Republic of Cuba originate in the State of Florida;
The majority of letters and packages to the Republic of Cuba originate in the State of Florida;
The majority (overwhelmingly so) of unauthorized direct equity investment and direct financing for MSMEs in the Republic of Cuba originate in the State of Florida and do so from individuals of Cuban descent.
Particularly odd that Governor DeSantis is embracing a position that would require disinvestment by individuals who are certainly registered voters (and perhaps support the governor) in the State of Florida. These individuals have since 1993 (first self-employed re-authorized in the Republic of Cuba; restaurants, etc.) and then again since 2015 (first Airbnb operating in the Republic of Cuba) been the source of substantial, and unauthorized investment to MSMEs located in the Republic of Cuba.
Far more useful from Governor DeSantis, rather than parroting the writer(s) of editorials published by The Wall Street Journal (19 May 2022) and The Washington Times (25 May 2022), would have been to publish recommendations for the government of the Republic of Cuba.
His advice could have been constructive- “My message to the Diaz-Canel-Valdes Mesa Administration in Havana is if Cuba wants a private sector, and I am not convinced they do, its more of a prop for them, but if they do, then the process for receiving direct equity investment and direct financing from the private sector in the United States- individuals and companies, must be transparent, must be simple to understand, must be equal for everyone, and taxes and fees must be fair so as to permit profits to be reinvested, to be repatriated, and to benefit first MSME owners and their employees rather than further support misguided decisions of the government. The State of Florida is a magnet for entrepreneurs- Cuba should follow our example.”
These “best practices” recommendations could have focused process, regulations that the government of the Republic of Cuba will publish as to how MSMEs will receive direct equity investments and direct financing. He could have advocated that:
The government of the Republic of Cuba to publish quickly transparent and workable regulations for the delivery of direct equity investment in and direct financing to privately-owned companies owned by Republic of Cuba nationals and located in the Republic of Cuba.
There must be one regulation, one process for all privately-owned companies.
There must be no discrimination by the government of the Republic of Cuba in terms of restricting/prohibiting the receipt by a MSME of direct equity investment and direct financing because the MSME is or may compete with a Republic of Cuba government-operated company.
There must be no limitation as to the amount of a direct equity investment and direct financing.
There must be no number of employee requirement for a privately-owned company to receive direct equity investment and direct financing.
There must be no discrimination by the government of the Republic of Cuba in terms of fees, taxes, and other payments towards MSMEs versus Republic of Cuba government-operated companies.
There must be transparency- all transactions must be delivered through financial institutions with a preference for the Biden-Harris Administration (2021- ) to direct the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to authorize direct correspondent banking so that funds may move directly, efficiently, and transparently from the United States to the Republic of Cuba (delivery of direct equity investment and direct financing) and from the Republic of Cuba to the United States (receipt of dividends, profit-sharing, loan payments).
The OFAC should continue to require licenses for the delivery of direct equity investment into a privately-owned company.
“22 July 2022: TALLAHASSEE, Fla. — Today, Governor Ron DeSantis directed the Florida Department of Economic Opportunity and Enterprise Florida to issue an alert warning Floridians not to let the communist Cuban regime steal their money through a recent scheme seeking to attract foreign investment for the “non-state sector.” Over the past year and a half, the Biden administration has rolled back American sanctions on Cuba and has failed to assist the Cuban people in their fight for freedom. This has emboldened the racketeers who run the Cuban regime to launch a kleptocratic scheme claiming that they will welcome American investment in the island’s supposed private sector, but foreign investment is meaningless when there are no property rights for Cuban citizens and when the Cuban government will limit which ostensibly private businesses will be allowed to receive foreign funds.
Cuban citizens have no means to leverage investments to elevate their circumstances, and all Floridians who might be considering “investing” in Cuba’s “private sector” should be aware that their money will inevitably end up in the pockets of Raúl Castro, Miguel Díaz-Canel, and the rest of the Cuban mafia who will use that cash to continue to enrich themselves, impoverish their people, and further destabilize the Western Hemisphere.
“One year ago we witnessed the largest demonstrations in decades against the Cuban regime in cities and towns across the island. With some additional pressure from our federal government, those protests may well have marked the downfall of the communist regime,” said Governor Ron DeSantis. “Unfortunately, the Biden administration stood idly by as the people of Cuba cried out for freedom, refusing even to authorize the provision of satellite internet by American companies. The weak policies of this administration have led the regime to attempt to perpetrate a financial fraud against the American people under the guise of private investment opportunities. Only when Cuba allows free elections, stops jailing people in the middle of the night for simply saying they want human rights, and ensures private property rights for its citizens should the American people feel confident that money sent across the straits will truly benefit the Cuban people and not the racketeers who run their regime like a mafia.”
“The same regime that robbed Cubans, like my parents, of their livelihoods is now desperately begging Americans to ‘invest’ in the island,” said Lieutenant Governor Jeanette Nuñez. “This scheme is nothing more than a scam that fools only the sympathizers in the Biden administration.”
It has been over one year since the people of Cuba began their demonstrations for libertad last summer. Governor DeSantis has been steadfast in his support of those who sought and continue to seek the downfall of the communist regime. In an effort to fill the vacuum left by the Biden administration’s tacit support for the Cuban government, Governor DeSantis held a roundtable at the American Museum of the Cuban Diaspora where he spoke about the importance of ensuring continued internet access for the people of Cuba; sent a letter to President Joe Biden urging the federal government to provide internet access into Cuba remotely to support those demanding freedom from the repressive communist government; spoke at a press conference at Congresswoman Maria Salazar’s Miami district office; met with Federal Communications Commissioner Brendan Carr; and held a townhall event at the Versailles restaurant where he and Senator Marco Rubio discussed their efforts to get the Biden administration, whose Cuba policy team is staffed with regime sympathizers, out of the way of the Floridian and American innovators and entrepreneurs who wanted to further the cause of freedom for Cuba.
Governor DeSantis has also met repeatedly with Floridians from Venezuela, Colombia, and Nicaragua to discuss the destabilizing effects of the Cuban regime’s efforts to propagate its cruel ideology and despotic form of government in those countries and throughout the region. Most recently, Governor DeSantis condemned the spread of left-wing totalitarian ideology in the Western Hemisphere following the results of the Colombian election, lambasted the Biden administration’s recent attempts to legitimize the brutal Maduro regime in Venezuela, and called out the Iranian regime’s nefarious activities in South America.
Governor DeSantis understands that almost all instability in the Western Hemisphere can be traced back to the Cuban regime and has previously said, “If you want to have a good Western Hemisphere and not have all of these problems in places like Venezuela and Nicaragua, then you should want to see a change in the regime in Havana because Havana has for decades spawned all kinds of disruptions and oppressions throughout the Western Hemisphere.”
The Governor has also spoken about the broader geopolitical implications of having a hostile regime ninety miles off of Florida’s coast, saying, “A free Cuba would be in the interests of the United States of America. If you want influence of the Communist Party of China and Russia in the Western Hemisphere, then support the regime in Havana because every nefarious influence around the world comes through there. If you don’t want Chinese influence and you don’t want Russian influence, then you should want a free Cuba.”
Governor DeSantis will continue to support the cause of freedom in Cuba, Venezuela, Nicaragua, Colombia, and throughout Latin America. Florida is proud to be an oasis of freedom and welcomes those who come here legally to escape oppression, but just as Americans shouldn’t have to flee lockdown states to enjoy their God-given liberties in the Sunshine State, so too should the people of Latin American not have to flee their homelands to escape the Cuban government or the instability it foments in our hemisphere. Floridians should not be tricked into funding the regime in Havana under the guise of foreign investment.”
Florida Department of Economic Opportunity and Enterprise Florida Issue Joint Advisory
“22 July 2022: TALLAHASSEE, Fla. – Today, the Florida Department of Economic Opportunity and Enterprise Florida issued an advisory warning Floridians and potential foreign investors against the Cuban regime’s recent deceptive authorization allowing foreign investments in private businesses in Cuba to boost the country’s economic recovery.
“Failed policies of the Biden administration have opened the door to this attempted scam, but in Florida, we are all too familiar with these communist antics,” said Florida Department of Economic Opportunity Secretary Dane Eagle. “Floridians and potential investors need to be warned that any investments with Cuba will go straight into the pockets of Cuba’s mafia dictators. Cuban citizens have no means to leverage private business investments to elevate their circumstances and there are no property rights for Cuban citizens. Under the leadership of Governor DeSantis, we will not enable Cuban racketeers getting richer while further oppressing the Cuban people yearning for freedom.”
"There is no such thing as foreign investment in Cuba as bringing cash into the country only lines the pockets of corrupt regime officials,” said TJ Villamil, Senior Vice President of International Trade & Development at Enterprise Florida. “Florida businesses seeking to 'invest' in Cuba should know that their money will be stolen and used to support an authoritarian regime notorious for abusing human rights. We strongly discourage any firm conducting business in Cuba."
The regime in Cuba is responsible for the destruction of one of the most prosperous countries in Latin America and destabilizing other states including Venezuela and Colombia. All data facts and figures coming out of Cuba should be questioned as the regime hides real information and real insights, hiding how poorly the economy is performing.
As of the 2020 5-year American Community Survey estimates from the U.S. census bureau, over 1.5 million people of Cuban origin live in Florida, more than half of the total Cuban population in the United States. Approximately 1,022,706 Floridians were born in Cuba, out of 1,345,690 nationwide.
About DEO
The Florida Department of Economic Opportunity combines the state’s economic, workforce and community development efforts, expediting economic development projects to fuel job creation in competitive communities and promote economic resiliency. For more information, including valuable resources for employers and job seekers, please visit www.FloridaJobs.org.”
LINK TO COMPLETE ANALYSIS IN PDF FORMAT
LINKS To Related Posts
Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022
Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022
Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022
Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022
Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022
