
The New York Times never disappoints.
As Cuba Shifts Toward Capitalism, Inequality Grows More Visible – NY Times
…As Cuba opens the door wider to private enterprise, the gap between the haves and have-nots — and between whites and blacks — that the revolution sought to diminish is growing more evident.
That divide is expected to increase now that the United States is raising the amount of money that Cuban-Americans can send to the island to $8,000 a year, up from $2,000, as part of President Obama’s historic thaw with Cuba.
Remittances, estimated at $1 billion to nearly $3 billion a year, are already a big source of the capital behind the new small businesses. The cash infusion has been one of the top drivers of the Cuban economy in recent years, rivaling tourism revenues and mineral, pharmaceutical and sugar exports.
Raising the remittance cap, along with allowing more Americans to visit Cuba and other steps toward normal diplomatic relations, will help “support the Cuban people,” the Obama administration contends.
But some will enjoy that support more than others. Cuban economists say that whites are 2.5 times more likely than blacks to receive remittances, leaving many in crumbling neighborhoods like Little Swamp nearly invisible in the rise of commerce, especially the restaurants and bed-and-breakfasts that tourists tend to favor.
“Remittances have produced new forms of inequality, particularly racial inequality,” said Alejandro de la Fuente, director of the Afro-Latin American Research Institute at Harvard University. “Now the remittances are being used to fund or establish private companies, that is, not just to fund consumption, as in the past.”
