Weekend Economists Escape to Cuba March 15-17, 2013

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35. Cuba Libre!

Ten Years' War

Carlos Manuel de Céspedes is known as Father of the Homeland in Cuba, having declared the nation's independence from Spain in 1868...Independence from Spain was the motive for a rebellion in 1868 led by Carlos Manuel de Céspedes. De Céspedes, a sugar planter, freed his slaves to fight with him for a free Cuba. On 27 December 1868, he issued a decree condemning slavery in theory but accepting it in practice and declaring free any slaves whose masters present them for military service. The 1868 rebellion resulted in a prolonged conflict known as the Ten Years' War.

Two thousand Cuban Chinese joined the rebels. There is a monument in Havana that honours the Cuban Chinese who fell in the war, on which is inscribed: There was not one Cuban Chinese deserter, not one Cuban Chinese traitor.

The United States declined to recognize the new Cuban government, although many European and Latin American nations did so. In 1878, the Pact of Zanjón ended the conflict, with Spain promising greater autonomy to Cuba. In 1879–1880, Cuban patriot Calixto García attempted to start another war known as the Little War but received little support.

Period between wars

In Cuba, a sophisticated and prosperous sugar industry had employed chattel slavery until the final third of the 19th century. Cuba produced 720,250 metric tons of sugar in 1868, more than forty percent of cane sugar reaching the world market that year. Slavery had been maintained in Cuba, however, while abolition was underway elsewhere. Abolition in Cuba began the final third of the 19th century, and was completed in the 1880s.

War of 1895

An exiled dissident named José Martí founded the Cuban Revolutionary Party in New York in 1892. The aim of the party was to achieve Cuban independence from Spain. In January 1895 Martí traveled to Montecristi and Santo Domingo to join the efforts of Máximo Gómez. Martí recorded his political views in the Manifesto of Montecristi. Fighting against the Spanish army began in Cuba on 24 February 1895, but Martí was unable to reach Cuba until 11 April 1895. Martí was killed in the battle of Dos Rios on 19 May 1895. His death immortalized him as Cuba's national hero.

Around 200,000 Spanish troops outnumbered the much smaller rebel army which relied mostly on guerrilla and sabotage tactics. The Spaniards began a campaign of suppression. General Valeriano Weyler, military governor of Cuba, herded the rural population into what he called reconcentrados, described by international observers as "fortified towns". These are often considered the prototype for 20th-century concentration camps. Between 200,000 and 400,000 Cuban civilians died from starvation and disease in the camps, numbers verified by the Red Cross and United States Senator and former Secretary of War Redfield Proctor. American and European protests against Spanish conduct on the island followed.

Spanish–American War

USS Maine

The U.S. battleship Maine arrived in Havana on 25 January 1898 to offer protection to the 8,000 American residents on the island, but the Spanish saw this as intimidation. On the evening of 15 February 1898, the Maine blew up in the harbor, killing 252 crew. Another eight crew members died of their wounds in hospital over the next few days. A Naval Board of Inquiry headed by Captain William T. Sampson was appointed to investigate the cause of the explosion on the Maine. Having examined the wreck and taken testimony from eyewitnesses and experts, the board reported on 21 March 1898 that the Maine had been destroyed by "a double magazine set off from the exterior of the ship, which could only have been produced by a mine."

The facts remain disputed today, although an investigation by Admiral Hyman G. Rickover published in 1976 established that the blast was most likely a large internal explosion. Rickover believes the explosion was caused by a spontaneous combustion in inadequately ventilated bituminous coal which ignited gunpowder in an adjacent magazine. The original 1898 board was unable to fix the responsibility for the disaster, but a furious American populace, fueled by an active press— notably the newspapers of William Randolph Hearst— concluded that the Spanish were to blame and demanded action. The U.S. Congress passed a resolution calling for intervention, and President William McKinley complied. Spain and the United States declared war on each other in late April.

Early 20th century

After the Spanish-American War, Spain and the United States signed the Treaty of Paris (1898), by which Spain ceded Puerto Rico, the Philippines, and Guam to the United States for the sum of $20 million. Under the same treaty, Spain relinquished all claim of sovereignty over Cuba. Theodore Roosevelt, who had fought in the Spanish-American War and had some sympathies with the independence movement, succeeded McKinley as U.S. President in 1901 and abandoned the treaty. Cuba gained formal independence from the U.S. on May 20, 1902, as the Republic of Cuba. Under Cuba's new constitution, the U.S. retained the right to intervene in Cuban affairs and to supervise its finances and foreign relations. Under the Platt Amendment, the U.S. leased the Guantánamo Bay naval base from Cuba.

Following disputed elections in 1906, the first president, Tomás Estrada Palma, faced an armed revolt by independence war veterans who defeated the meager government forces. The U.S. intervened by occupying Cuba and named Charles Edward Magoon as Governor for three years. Cuban historians have attributed Magoon's governorship as having introduced political and social corruption. In 1908, self-government was restored when José Miguel Gómez was elected President, but the U.S. continued intervening in Cuban affairs. In 1912, the Partido Independiente de Color attempted to establish a separate black republic in Oriente Province, but was suppressed by General Monteagudo with considerable bloodshed.

During World War I, Cuba exported considerable quantities of sugar to Britain. Cuba was able to avoid U-boat attacks by the subterfuge of shipping the sugar to Sweden. The Menocal government declared war on Germany very soon after the United States.

A constitutional government was maintained until 1930 when Gerardo Machado y Morales suspended the constitution. During Machado's tenure, a nationalistic economic program was pursued with several major national development projects which included the Carretera Central and El Capitolio. Machado's hold on power was weakened following a decline in demand for exported agricultural produce due to the Great Depression, attacks by independence war veterans, and attacks by covert terrorist organizations, principally the ABC.

During a general strike in which the Communist Party sided with Machado, the senior elements of the Cuban army forced Machado into exile. The Party then installed Carlos Manuel de Céspedes y Quesada, son of Cuba's founding father (Carlos Manuel de Céspedes), as President. During 4–5 September 1933, a second coup overthrew Céspedes which led to the formation of the first Ramón Grau government. Notable events in this violent period include the separate sieges of Hotel Nacional de Cuba and Atares Castle. This government lasted 100 days but engineered radical socialist changes in Cuban society, including the abolishment of the Platt Amendment and instating of womens' suffrage in Cuba. In 1934, Grau was ousted in favor of Carlos Mendieta, the first in a series of puppet presidents subordinate to the army and its young chief of staff, Fulgencio Batista.

Fulgencio Batista was democratically elected President in the elections of 1940, so far the only non-white Cuban endorsed for the nation's highest office. His government carried out major social reforms. Several members of the Communist Party held office under his administration and established numerous economic regulations and pro-union policies, as well as the Cuban Constitution of 1940, which engineered radical progressive ideas, including the right to labour and health care. Batista's administration formally took Cuba to the Allies of World War II camp in World War II. Cuba declared war on Japan on December 9, 1941, then on Germany and Italy on December 11, 1941. Cuban armed forces were not greatly involved in combat during World War II, although president Batista suggested a joint U.S.-Latin American assault on Francoist Spain in order to overthrow its authoritarian regime.

Ramón Grau, who lost in 1940 to Batista, finally returned in the 1944 elections by defeating Batista's preferred successor, Carlos Saladrigas Zayas. In 1948, his Revolutionary Authentic Party won again when Carlos Prío Socarrás won, the last person elected to the presidency by free and fair elections. The two terms of the Auténtico Party saw an influx of investment fueled a boom which raised living standards for all segments of society and created a prosperous middle class in most urban areas.

The 1952 election was a three-way race. Roberto Agramonte of the Ortodoxos party led in all the polls, followed by Dr. Aurelio Hevia of the Auténtico party, and Fulgencio Batista, seeking a return to office, as a distant third. Both Agramonte and Hevia had decided to name Col. Ramón Barquín to head the Cuban armed forces after the elections. Barquín, then a diplomat in Washington, DC, was a top officer. He was respected by the professional army and had promised to eliminate corruption in the ranks. Batista feared that Barquín would oust him and his followers. When it became apparent that Batista had little chance of winning, he staged a coup on 10 March 1952. Batista held on to power with the backing of a nationalist section of the army as a "provisional president" for the next two years.

In March 1952 Justo Carrillo informed Barquín in Washington that the inner circles knew that Batista had plotted the coup. They immediately began to conspire to oust Batista and restore democracy and civilian government in what was later dubbed La Conspiracion de los Puros de 1956 (Agrupacion Montecristi). In 1954, Batista agreed to elections. The Partido Auténtico put forward ex-President Grau as their candidate, but he withdrew amid allegations that Batista was rigging the elections in advance.

In April 1956 Batista ordered Barquín to become General and chief of the army, but Barquín decided to move forward with his coup to secure total power. On 4 April 1956, a coup by hundreds of career officers led by Barquín was frustrated by Rios Morejon. The coup broke the back of the Cuban armed forces. The officers were sentenced to the maximum terms allowed by Cuban Martial Law. Barquín was sentenced to solitary confinement for eight years. La Conspiración de los Puros resulted in the imprisonment of the commanders of the armed forces and the closing of the military academies.

Cuba had Latin America's highest per capita consumption rates of meat, vegetables, cereals, automobiles, telephones and radios, though about one third of the population was considered poor and enjoyed relatively little of this consumption. In 1958, Cuba was a relatively well-advanced country by Latin American standards, and in some cases by world standards. Cuba attracted more immigrants, primarily from Europe, as a percentage of population than the U.S. The United Nations noted Cuba for its large middle class. On the other hand, Cuba was affected by perhaps the largest labor union privileges in Latin America, including bans on dismissals and mechanization. They were obtained in large measure "at the cost of the unemployed and the peasants", leading to disparities.

Between 1933 and 1958, Cuba extended economic regulations enormously, causing economic problems. Unemployment became a problem as graduates entering the workforce could not find jobs. The middle class, which was comparable to the United States, became increasingly dissatisfied with unemployment and political persecution. The labor unions supported Batista until the very end.