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Networked Economy
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ICT Employment Opportunities
Cuba is still widely considered to be a developing country despite its economic resurgence. The country still has a relatively low GDP figure forcing it to concentrate on the common growing industries such as agriculture, machinery, and petroleum. However, the people of Cuba are among the most educated in global developing nations. Since universal education is available at no cost to its residents, Cuba is becoming a leader in the information technology and biotechnology industries.
The fact that Cuba discourages capitalism prevents the country from advancing to the front of the information and communication technologies industry. Because of the centrally planned economy, prices are very high for Internet and communication services making these technologies very inaccessible for the local residents. The government is still focusing on providing for its less-wealthy residents who are struggling with basic jobs and food acquisitions. As a result, technology and communication services do not receive enough funding for development and enhancements. The IT economy of Cuba will not be able to reach its potential status because of the lack of investment and resources.
Jobs in information and communication technologies remain modest at best as the healthcare and agricultural stay prominent. The state of the Cuban economy isn't able to encourage the development of technology. The government recently hosted the International Telecommunication Union as a move forward in this direction. But IT firms have not looked at the country as a location of investment and will move on to other countries in Latin America. In order to generate more jobs in the technology industry, the Cuban government must attract software development companies and IT consulting firms abroad. The focus on the technology education and workforce will boost the industry as a world competitor.
Business to Consumer Electronic Commerce
Recently, the Cuban government lifted a ban on the purchase of household technology components such as personal computers, DVD players and microwaves. Air conditioners and electronic toasters will soon be available to the consumer market in Cuba. The country has been able to widen their access to consumer electronics and technologies because of the overhaul to their electricity grid.
Basic consumer technologies will still remain unaffordable to the general public. Month wages are averaging about $17 a month per each resident. Currently only the extreme wealthy is able to afford common electronic appliances and technology gadgets in their household. The lack of bandwidth as limited the number of Internet accounts. But a lifted ban on these technologies is a step in the right direction for the development of IT in the country. The government has set up a Cuban intranet making it available to schools and universities. "Cuba's only mobile phone network, ETECSA, says that its subscriber base has surged by 60% to reach nearly half a million customers after the government relaxed the conditions for private citizens to buy mobile phones." Opening the door to technology will allow the Cuban public consumers to get exposed to the various technologies and communication services around the world.
Business to Business Electronic Commerce
Cuba's economy is working towards the development of strong electronic commerce. Several projects and initiatives have been pushed for advancement such as the ability to make electronic payments. This project would allow small businesses to electronically pay and manage its overhead and utility costs like electricity, phone capabilities, and water availability. Other electronic commerce advancements include the development of Internet portals where businesses can buy products and pay in real time with credit cards. Cuban businesses are working to overcome the electronic commerce obstacles presented by the economic, financial, and commercial restrictions. Companies are trying to attract technology investments and electronic commerce ventures to the country, but by restricting foreign investment Cuba is limiting its capability to capitalize on the global electronic commerce market.
E-Government
The Cuban government doesn't possess the financial resources to pedal IT expenditures and investments. As one of the last Communist states, Cuba has a very limited financial aid for maintaining its economy and expanding projects in the technology industry. The government has resorted to relying on foreign direct investments to stimulate the industry. They believe that soliciting foreign direct investments will create a solid foundation and IT infrastructure in the Cuba.
Despite the push and need for foreign investors, Cuba's relations with the U.S. has inhibited the growth of its market. Foreign companies that have agreements with the U.S. have been excluded in conducting business with Cuba because of violations of international trade and commerce sanctions. "These foreign entities must be aware that conducting business within Cuba may prevent any future business dealings with the U.S." This forces companies to rethink investing in the IT infrastructure of Cuba.
The Cuban government formed the Ministry of Informatics and Communications in May of 2000. With the new organization, information technology was removed from the Ministry of Steel, Mechanics, and Electronics. The government also created an electronic commerce commission to develop a basis for a promising electronic commerce market. The country's lone mobile phone network, ETECSA, is regulated by the Ministry of Communications and is trying to get involved with Internet services. The government is planning on sponsoring programs to provide Internet access to post offices across the nation. The government is also trying to promote the Linux environment because of the U.S. dependency on the Windows-based computer system. They believe this will eliminate the country's dependence on software from the U.S.
The government has also been investing in the creation of information technology programs and departments at the local universities. "The Cuban government spends 1.17% of its GDP to technological research and development." More students are graduating with degrees in a technical background and will lead the movement in developing the Cuban information and communication technology backbone.
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