Biotechnology in Cuba

Cuba

• Largest Caribbean island.• In 1902 gained formal independence.• American trade dominated Cuba till 1959.• Spanish settlers first established the raising of cattle,

sugarcane and tobacco as Cuba’s primary economic pursuits.

• Cuba was the last major colony to gain independence.

Cuba and US Relationship

•Relation between US and Cuba deteriorated.

•US imposed an embargo on Cuba in October in 1960 and it is still in effect as of 2008.

•US pressure made other nation to restrict trade with Cuba.

FIDEL CASTRO’S VISION

• Independent Cuba with a strong scientific foundation.

• Free heath to all Cuban citizen• Strong development of social services

particularly in rural area.

Cuba before and after the Soviet union

• In 1961, govt. geared up to increase the income &employment level.

• In 1964, USSR lent a helping hand.• In 1972, Cuba became a member of EECMEA.

• Soviet union break up in late 1991, a major boost to Cuban economy was lost

• Cuba choose biotechnology, tourism, and sugar as the major sector for investment

Economy of Cuba

• GDP ( based on purchasing power parity) $46.22 billion.

• Real annual growth rate: 3.0% (2001). Expected to grow upto 12.5%.

• Agriculture Products-- sugar, citrus and tobacco.• Industry Types-- sugar and food processing, and

pharmaceutical and biotech products.

Collapse of Cuban Economy

• Cuban economy history was broken into three periods delineated by two events :

- 1959 Communist revolution and Collapse of the centrally planned economy - The Soviet union in 1991

Economic recovery

• Allowing foreign investment and promoting diversified export• In 1990 Cuba announced a “SPECIAL

PERIOD IN PEACE TIME”• In 1994, Government established “farmer

market”

Factors Contributing To The Economy

1. Tourism

YEARS1990 1999

Tourism income as % of total income in the balance of payments

4% 43%

Tourism purchase in local market as percent of all purchases

17% 61%

Direct employment (000) 48 100

Indirect employment (000) 30 200

2. Sugar

3.Emergence of biotechnology

• In 1964, the CENIC was established.• In the 1980s, Cuba went through a phase of

profound and rapid development of modern biotechnology.

• 1982, CIB was founded. It was replaced by CIGB in 1986.

………….Role

• Vaccine production» Hepatitis B vaccine » Recombinant streptokinase.» Anti-cancer drug (erg3mab)» Meningitis vaccine VAMENGOCBC.

• Sugarcane production through techniques.• Earn $100 M from exporting products.

Strength Weakness

• Strong R&D in biotechnology

• 30 patented vaccines• Effectiveness of new

product.• World’s only vaccine

against Meningitis.

• Deficiency of centrally planned economy.

• Dependence on other countries.

• Lack of experience , economy of scale , world wide marketing.

Threats Opportunities

• Tourism (largest island).• Export of by products of

sugar.• Geographical dispersion • Relaxing government

policies.• World wide recognition of

products like Hepatitis B by WHO.

• USA .• US Cuban democratic act.• Competitive marketing by

transitional company of other country.

• Accused of offensive biological warfare research and development .

CONCLUSION

• Recovering from a decline in GDP of at least 35% between 1989 and 1993 as the loss of Soviet subsidies laid bare the economy's fundamental weaknesses.

• Government has introduced few market oriented reforms. Liberalization of economy.

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