One of the more unusual visitors to Havana in the last week was perhaps Eric Schmidt, the Chair of Google. His visit coincided with the news that the Cuban economy is growing more slowly than hoped – at only 0.6% in the first six months of 2014, the coming into effect of the new foreign investment law and the knock-out phase of the World Cup. The missing link between all of these and Mr Schmidt’s visit? The need for better access to the internet in Cuba.
Lots has been written about how the internet helps drive economic growth. A Mckinsey Global Institute report from 2011* showed that the internet accounted for 3.4% of GDP of the world’s biggest economies, had contributed more than 10% of total GDP growth over the previous five years in China, India and Brazil and that its total contribution to global GDP was bigger than the whole Canadian economy. As internet access, infrastructure and usage increase, businesses benefit by being able to operate more efficiently, public services are delivered more effectively and customers can buy goods and services at cheaper prices.
This may all seem a long way off in Cuba but the benefits would be tangible for state enterprises, cuentapropistas (self-employed entrepreneurs), cooperatives and everyone else. Imagine a scenario where a farmer’s cooperative in Mayabeque wants to sell its pineapples and can’t easily find a buyer but a couple of hours down the road in Varadero, there’s a hotel that needs some. What’s the best way for them to ‘meet up’? Online of course. Today the internet provides the best marketplace for buyers and sellers. That’s been proved by the incredible success of websites like ebay and Revolico where people sell and buy new and used items. Imagine too being able to pay your ETECSA bill online and not having to queue or having your weekly groceries delivered to your door. In countries with good internet, both are normal practice; I’ve been using electronic banking for about 12 years and pay all my bills online. It’s easier for me and for the companies receiving my money.
If, sitting in your rocking chair on your porch in Viñales, that still seems unreal, what about being able to send money via SMS on your mobile phone to a cousin in Santiago? Many millions of Kenyans have been doing that for years, although presumably their cousins live somewhere else. An astonishing $24 million a day (yes, a day) is transferred across Kenya via the M-pesa system. That’s a lot of happy cousins.
But it’s not just Cubans who would benefit from better access to internet. Foreign investors would too. The new Cuban foreign investment law is bound to attract more foreign companies setting up in Cuba. But they’ll all need good, fast internet connections to be able to transfer documents and data to their head offices or clients outside and within Cuba. And their foreign employees, used to easily accessing Facebook, Twitter and YouTube back home will be frustrated if they can’t get online easily here.
And finally the World Cup. More I think than any event since I’ve been here, the World Cup has lit up Cuba. Everyone’s talking about, everyone’s got an opinion, everyone’s got a favourite team (rarely England I’m sorry to say, despite my best efforts). In the past few weeks the thirst here for knowledge, facts and understanding about football and the World Cup – its history and its stories – has been striking. That’s where the internet comes in. With a tablet, cellphone, laptop or desktop anyone can get online and learn more, exchange views with friends overseas, comment on online forums, share their opinions, send tweets to their favourite players. This sharing deepens the experience and enhances your knowledge. It enriches those conversations in the barber’s or at the dominoes table.
I don’t know exactly what Mr Schmidt said when he was here last week. Unfortunately I didn’t get a chance to meet him. He probably didn’t talk about pineapples, dominoes or cousins in Kenya. But I’m pretty sure he made a very good case for more internet in Cuba. As I hope I have. Your comments welcome below.
* ‘The Great Transformer: The Impact of the Internet on Economic Growth and Prosperity’ by James Manyika + Charles Roxburgh, October 2011