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.
