Castro has repeatedly stated since 1961 that Cuba’s future must be one of
scientists, and that Cuba must not only take advantage of the scientific-
technical revolution, but also be a part of it.
H avana’s Center for Genetic Engineering and Biology
(CIGB) is perhaps the most
technologically sophisticated sci-
entific research facility in the Third
World. Ironically, a young couple,
both biotechnology scientists
employed there, must travel 10
miles to work by bicycle from their
home in Regla on the far eastern
side of the city. The lack of energy
supplies in Cuba has simply halted
most forms of gas-powered vehicu-
lar transportation.
This young couple’s daily rou-
tine represents the contradictions
prevalent in Cuba today. They
make this rather arduous trip in a
tropical climate that contrasts
sharply with the air-conditioned
laboratories in which they work.
That they pass through the main
arteries of the capital without
encountering many vehicles is a
stark reminder of Cuba’s recent
and rapid deindustrialization. The
biotechnology and medical-phar-
maceutical sector is an island of
scientific and technological com-
plexity in a sea of increasingly
primitive work processes.
When Fidel Castro proclaimed “a special period in time of peace”
Julie Feinsilver teaches politics at Oberlin College. She is the author of Healing the Masses: Cuban Health Politics at Home and Abroad (University of California Press, 1993).
in 1990 after the fall of the Berlin
Wall and just prior to the disinte-
gration of the Soviet Union, he put
the Cuban economy on a war foot-
ing without having the country
actually go to war. Previously,
84% of Cuban trade was with the
socialist-bloc Community for
Mutual Economic Assistance
(CMEA). The Cuban economy was
integrated into CMEA’s five-year
production allocation plans.
Because of the loss of this trade
and aid, and the tightening of the
U.S. economic embargo begun in
1961, Cuba’s national income
dropped approximately 45%
between 1989 and 1992.
Foreseeing this loss, Castro
chose three economic sectors for
priority investment to keep the
Cuban economy and the revolution
afloat: biotechnology and medical
exports, tourism, and food produc-
tion. Clearly, biotechnology alone
cannot replace Cuba’s traditional
exports of sugar, nickel, tobacco,
citrus and seafood, but does it form
part of a coherent strategy to
replace this lost trade? Can
biotechnology help save the revo-
lution?
Before answering these ques-
tions, one must ask why and how a
small developing nation like Cuba
could even contemplate the use of
biotechnology as part of a national
economic survival strategy. Even
among Western industrialized
countries, only Japan has made
biotechnology part of its national
development strategy. Moreover,
few biotechnology companies in
the United States are successful,
and all are seeking alliances with
transnational pharmaceutical com-
panies in order to gain access to
capital and marketing networks.
Developing nations with socialist
ideologies have turned to science as
an instrument of societal transfor-
mation in part because of social-
ism’s “scientific” analysis of the
movement of history, but also
because science provides rational
means to achieve development
goals which then legitimate the
regime. In that context, it is not sur-
prising that Castro has repeatedly
stated since 1961 that Cuba’s future
must be one of scientists, and that
Cuba must not only take advantage
of the scientific-technical revolu-
tion, but also be a part of it.
C uban biotechnology and
genetic engineering evolved
k from clinical medicine,
which was a key area of develop-
ment from the outset of the revolu-
tion. By 1980, when the govern-
ment decided to invest heavily in
biotechnology, Cuba already had a
national network of health-care
delivery facilities, medical schools,
research institutes, and pharmaceu-
Vol XXVI, No 5 May 1993 7
ANALYSIS / CUBA
tical and medical products facto-
ries, all of which could be put at
the service of this incipient scien-
tific sector.
Cuba initially focused on inter-
feron because it was thought at the
time to be a poten-
tial wonder drug,
particularly as a
cancer treatment
and an anti-viral
medicine, and
because it served
as a model for the
development of
advanced molecu-
lar-biology skills,
such as DNA
splicing, gene and
protein sequenc-
ing, synthesizing,
cloning, and vector
construction. Since
their development
of interferons in
1982, Cuban sci- An exhibitof m
entists have gone
on to work on interleukins,
colony-stimulating factors, mono-
clonal antibodies, and vaccines,
most of which are at the forefront
of pharmaceutical biotechnology
research. Agricultural biotechnolo-
gy, primarily cross-breeding, has
been a focus of study since the
1960s, but it really took off in the
late 1980s with advances in genet-
ic engineering and the establish-
ment of biofactories to clone in
vitro plantain and other seedlings
from tissue cultures.
Cuban researchers have devel-
oped over 160 medical-pharmaceu-
tical biotechnology products and a
number of agricultural and indus-
trial biotechnology products, some
of which are innovative and others
merely derivative. These products
fall into four broad categories:
human medical-pharmaceutical
products (including diagnostics
and therapeutics), industrial
enzymes and bioremediation (such
as microorganisms to clean up oil
spills), agricultural applications
(such as plant and animal genet-
ie
ics), and research-laboratory
equipment and supplies.
The Cuban government’s ability
to formulate and execute a coher-
ent scientific-development strategy
is one of the few benefits of a com-
dical equipment – a major export – in f
mand economy and central plan-
ning. Others include the ability to
channel human, fiscal and physical
resources into priority sectors.
Educational possibilities, for
example, are primarily a function
of national needs. If the central
government determines that it
needs biochemists rather than
philosophers, then it simply allo-
cates most of the places in higher
education to the former, severely
restricts entry into the latter, and
alters secondary-school curricu-
lums to feed into the biochemistry
track. A student who would like to
become a philosopher must decide
instead on another career for which
there is societal demand.
Scientific tracking in education
has gone on since the establish-
ment in 1981 of elite secondary
schools for the sciences where
entrance for both students and fac-
ulty is highly competitive, and
where performance standards are
rigorous. During and after univer-
sity training, the best students are
recruited for internships at research
institutes, some of which offer doc-
toral training. This government’s
ability to centrally plan human-
resources development has led to
growth in the scientific-research
sector from 12 scientists in 1965 to
almost 20,000 in
1989. Long-term
central planning of
this sort is simply
not an option for
almost all of the
world’s economies
today.
Cuban biotech-
nology enterprises
have an edge over
their U.S. counter-
parts in another
way as well. They
can move more
quickly to clinical
field trials and
applications be-
cause of a less
lavana. complex regulato-
ry environment
and a national health-care system
that provides the patient popula-
tion necessary for testing and a
ready outlet for products. U.S.
biotechnology companies, by con-
trast, face a 10- to 12-year lag
between initial product develop-
ment and government approval,
and a cost of between $50 million
and $150 million to bring the
product to market.
espite such factors favor-
ing Cuba’s success in the
biotechnology field, many
obstacles still loom large. The real
test is if Cuba can find sufficient
markets for its products which,
according to one expert, could be
worth $1 billion a year. In all cate-
gories, import substitution has
been the primary goal, but export
has become increasingly critical as
the government tries desperately
to replace lost aid and trade. Most
of the world market is, however,
already controlled by transnational
pharmaceutical companies that
have patents, well-organized mar-
NACLA REPORT ON THE AMERICAS 8
keting and distribution netw
slick sales and packaging m
als, and considerable capil
finance their enterpr
Moreover, the U.S. trade em
precludes Cuba’s entrance in
United States, its most lucr
and natural market. And
when it comes to buying
equipment, the Cuban
Democracy Act of 1992
(Torricelli bill) specifically
prohibits the export to
Cuba of anything that
might aid the development
of biotechnology (an indi-
cation, perhaps, that the
United States takes the
Cuban biotechnology strat-
egy seriously).
Cuba is trying to get
around some of these diffi-
culties by concentrating on
the Third World market
where intellectual property
rights in the pharmaceutical
are frequently not recogniz
has agreed to barter trade, cot
trade, or clearing accounts
than insist upon hard curry
payable in cash. Cuba is also
ing new ways of making pro
that are already patented, beca
significant change in the pr
allows it to seek a new patent.
Because it produces a varii
good-quality products at a
cost than the competition,
should be able to carve out a
for itself in the world ma
Unfortunately, there are no
rate or specific figures on th
ume of trade or on Cuba’s
partners in the biotechnology
Trade with Russia and some
other former Soviet republic
resumed, but biotechnology
ucts are not yet a part of that
Trade with China, howeve
included biotechnology pro
since 1991, but again no spe
are available. Non-specific
indicate sales to some Eur(
and Latin American countr
recombinant hepatitis-b va
interferons, reagents, and S
iorks,
ateri-
tal to
ises.
bargo
to the
native
(Cuba’s micro-analytic enzyme-
linked immunosorbent assay).
Lack of credibility in the world
market due partially to ignorance
and partially to misinformation
campaigns has led the Cuban gov-
ernment to establish rigorous
Cuban biotechnology
has be
guarar
for al
country
ate un
(cost-
scious
enterprises have an edge over their
U.S. counterparts. They can move
more quickly to clinical field trials and
applications because of a
less complex regulatory environment
and a national health-care system
that provides the patient population
necessary for testing.
field norms. The government has recent- may c
ed. It ly made large investments in quali- econoi
unter- ty control, has demanded adher- mainta
rather ence to U.S. and international stan- a sea c
ency dards, and has selected a very qual- Cub
seek- ified group of people to work in anteed
)ducts this area. ing w
ause a While Cuba has built a major ating
ocess biotechnology industrial complex produce
and created marketable products vince
ety of (unlike many U.S. biotechnology the pr
lower companies), experts contend that choice
Cuba Cuban scientists do little of the ogy a
niche basic scientific research which is produ
market. necessary to make real break- rudim
accu- throughs in the field. Like the the pa
e vol- Japanese industrial -development sented
trade strategy, the Cuban biotechnology all), ai
field. strategy is based on copying exist- primi
of the ing technology and products. much
:s has Nevertheless, now that Cuba has attent
prod- the scientific infrastructure, human pract
trade. resources, and experience in prod- Natio
r, has uct development, it is beginning to course
ducts promote scientific innovation not, h
cifics where possible. Cuba, however, marke
data may not have the luxury, nor per- comp
opean haps the ability, to do basic pharm
ies of research. Final
ccine, Another related problem is Cubai
UMA Cuba’s inefficient economy, which demise
en geared to production for
iteed and protected markets
most three decades. The
y is only beginning to oper-
der the norms of capitalist
efficient and quality-con-
😉 production. Previously,
goods were produced
whether they were needed
or not, whether of mar-
ketable quality or not, and
in the case of clothing, in
styles, sizes, and colors
that were often not desired
by the consumer.
Overstaffing of work cen-
ters commonly led to inef-
ficient work habits and
low productivity. For
example, employees in the
service sector frequently
chatted among themselves
rather than serve cus-
tomers in a timely fashion.
The biotechnology sector
differ from the rest of the
my, but it seems difficult to
in an island of efficiency in
,f inefficiency.
a’s past production for guar-
markets meant that market-
is merely a matter of negoti-
the price and quantity of a
ct, rather than trying to con-
a potential customer to buy
oduct in a market of infinite
s. Cuba’s initial biotechnol-
nd medical-pharmaceutical
cts catalogs were, therefore,
entary at best. The quality of
per, design, information pre-
, color graphics (if used at
nd translation were all quite
tive. Recent catalogs are
improved, the result of new
ion to capitalist marketing
ices and recent United
n-sponsored marketing
es and advice. They still do
owever, compete with the
ting techniques of Cuba’s
etitors, the transnational
aceutical corporations.
Llly, the near collapse of the
n economy because of the
e of trade with the country’s
Vol XXVI, No 5 May 1993 9 9 Vol XXVI, No 5 May 1993ANALYSIS / CUBA
former allies makes daily exis- tence difficult. Although many of the researchers at CIGB live in
good housing across the street
from work and have better work-
ing conditions and better access to
food than others, the overall
demoralization of the population
and the hardships of some of their
colleagues, families
and friends must
affect their produc-
tivity. Beyond that,
the stress of being
singled out as a
group that is
charged with find-
ing scientific solu-
tions to extremely
complex economic
problems must
weigh heavily on
this rather young
scientific workforce.
It is questionable
whether Cuba can
continue to main-
tain a privileged sci-
entific sector in a People riding
country that in halted most f
many areas is rapid-
ly returning to the preindustrial
era. Tensions are bound to arise
between this sector and the non-
privileged sectors of society, par-
ticularly those who have become
marginally employed or unem-
ployed, or who must now work in
agriculture. Social stratification by
whether or not one produces
exportable goods, particularly in
the high-priority biotechnology
and medical-pharmaceutical area,
is becoming increasingly awkward
in an egalitarian society. Contra-
dictions between the socialist
ideals of the revolution and the
harsh realities of economic neces-
sity may mean that market-orient-
ed production practices and
increasing inequality will destroy
the revolution in order to save it.
Castro is faced with a seemingly
hopeless dilemma. His investment
strategy is designed to lay a solid
foundation for future development,
but it curtails current consumption,
which is already sharply reduced.
This, in turn, has led much of the
population to eschew revolutionary
practices and ideals. While Castro
was prescient in pursuing biotech-
nology, the current economic and
political circumstances make suc-
cess difficult, but not impossible.
bikes to work in Havana. The lack of energy orms of gas-powered transportation.
The real breakthroughs in biotech-
nology are yet to come, but with-
out its biotechnology complex,
Cuba would be left on the wrong
side of the rapidly widening tech-
nological gap between the rich and
poor countries. Without import-
substitution and export-oriented
biotechnology, the revolution
might not have survived as long as
it has.
However, can biotechnology–
along with tourism and the food
program-save the revolution?
The investment of scarce resources
to implement these new policies
has diverted funds from consumer
goods. With living standards
sharply reduced to mere subsis-
tence at best, Cubans of all walks
of life are finding themselves
forced to acquire many of the
necessities of life through the black
market rather than the egalitarian
rationing system. The black market
is not new, but its increased impor-
tance and vast expansion are.
fter the victory of the revo-
lution, Castro “liberated”
exclusive properties for the
enjoyment of the masses. Hotels,
restaurants, beach resorts, and
housing in the best neighborhoods
became accessible
to all. Today, 34
years later, those
previously liberated
areas are no longer
open to the very
people who fought
the revolution and
in whose name it
triumphed. Apar-
theid tourism -the
complete segreg-
ation of facilities for
tourists from those
for the general pop-
ulation-has made
Cubans into second-
class citizens in
their own country.
gy supplies has The local currency
has become useless
as more and more
goods and services are only avail-
able with dollars, which ordinary
Cubans are forbidden to have. The
same Fidel Castro who railed
against foreign investment over
three decades ago is inviting for-
eign investors into Cuba, allowing
them to repatriate their profits and
to disregard Cuban labor legislation
in establishments in which they
have a financial stake.
Revolutionary values of equality
and human dignity, and revolution-
ary rights of employment, educa-
tion, and health care are under
siege as Cuba squirms under the
stranglehold of the U.S. trade
embargo. For the many Cubans
who have seen their factories close
because of the lack of raw materi-
als and/or energy supplies, the sac-
rifices they have made to save what
is left of the Cuban social welfare
state seem to outweigh the remain-
ing benefits.
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