HAVANA (Reuters) – Cuba registered a slight increase in the number of foreign investment projects last year, the first rise since authorities began winnowing out foreign ventures they deemed ineffective or corrupt in 2003, according to a government report seen by Reuters yesterday.
The report by the Foreign Trade and Investment Ministry said the country was involved in 218 joint ventures, compared with 211 in 2008, and had 69 hotels under foreign management, up from 63 the previous year.
The increase was the first reported since 2002. After that Communist authorities began closing many of the 404 ventures and 313 cooperative production agreements then in existence, mainly with Western partners, alleging they did little for the economy and were often corrupt.
The report said there were currently just 14 cooperative production agreements, where an investor receives part of the profit or product produced, but holds no shares.
The increase in foreign investments came despite a severe financial crisis and just a year after President Raul Castro formally took over from his ailing brother Fidel Castro in 2008. But local economists said it was too early to say if the change was the result of a change in government policy.
Hurricanes, the international financial crisis, US sanctions and a sluggish state-dominated economy left Cuba short billions of dollars in 2009.
Foreign Trade and Investment Minister Rodrigo Malmierca told the National Assembly in December that 46 of the investment agreements with foreign companies were abroad, many of them in Venezuela, China and Angola.
