China Beats US In Early Cuban Internet Infrastructure Investment

lpress writes: The US would like to sell Cuba Internet service and equipment, but we have had little success so far. China has won the first round — they financed and installed Cuba's undersea cable, supplied backbone equipment and public WiFi access centers and will provide equipment for the forthcoming home DSL rollout. That being said, Cuba has very little connectivity today and most of what they have and plan to install is already obsolete by today's standards, so they will be buying a lot of equipment in the future.

Comments

China learned the foreign aid lesson from the US

[Anonymous Coward]

In the Cold War era (and still applies now), the US gave a lot of "Foreign Aid" money to many countries around the world. "Foreign Aid" in quotes because, often, the money just went the pocket of corrupt government officials, and the people in the country got what's left, if any. The result is a lot of money spent, a lot of corrupt officials made rich but very little goodwill generated among the common people.

China obviously did their homework. Instead of just giving out money, they are building visible infrastructure projects around the less-developed countries in world, either as foreign aid if the host country accepts, or by "bidding" for infrastructure projects. "Bidding" in quotes because when you don't even try to make a profit and bundle in free financing package to boot, others can't really compete with you at all. Then the common people will see Chinese companies and workers building infrastructure for their benefit, generating goodwill.

I wouldn't be surprised to learn the details of this successful "bid" may include 100% financing by China, probably at low interest, so Cuba don't have to pay a dime upfront. The money used for this would be a much better investment for China than buying US Bonds.

Re:O Rly?

[dj245]

an embarrassing counter-example to American and western democracy's political claims against communism

I really can't argue anything else in your post, but I can't help but wonder how Cuba was supposed to be an embarrassment vis a vis political systems. Sure, it's easy to make the point that "America can't dislodge this thorn in their side that sits less than 200km from their own shore" but I'm hard pressed to come up with any positive connotations to "our dictatorship is better than your democracy."

There are many positive impacts of being in a society that is not focused on capitalism. I have not been to Cuba, but in a general sense:

1. Most communist countries have more public recreation space. Parks, squares, plazas, etc. are often more numerous and larger because the allocation of land is usually not based on "profit".

2. In communist countries, citizens only have 1 entity to worry about spying on them, collecting personal information, and controlling their life. Cubans worry about the government. Americans worry about the government, Google, Apple, Amazon, Microsoft, etc etc.

3. Culture and the arts often have a higher importance and more public funding. In most capitalist countries, art and culture has to pay for itself, or have the potential to pay for itself, or it doesn't get made. Many communist countries dedicate funding to this. Is it often self-serving? Sure. But art and culture have important roles in society and is often overlooked in capitalist countries.

4. Stronger, smarter, and more comprehensive city planning (not sure if Cuba does this well or not). In capitalist countries, city planning seems to be a lot more organic and chaotic compared to communist ones. Companies and people build where they want to build, and are motivated by cost. This can have serious problems with regards to "tragedy of the commons" where everyone is looking out only for themselves and the entire population suffers as a result. Many communist countries do a better job managing this and make choices that are better for society as a whole. Cities are often more dense, inefficient suburbs are frowned upon, things are built where they are needed and not where it is cheapest to do so, etc. See also point #1.

There are probably a lot more but this is just a few I could think of.