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Don Tennant's picture
Don Tennant

Stirring IT Up

Our obstinance on Cuba is unfair to U.S. companies

A couple of weeks ago at Microsoft's Worldwide Partner Conference in Houston, I interviewed Allison Watson, Microsoft's corporate vice president in charge of the worldwide partner group. I asked her whether she was aware of any Microsoft partners who have done business with Cuba, Iran or North Korea, and if so, what actions she had taken to curtail that activity. I found her response to be very interesting.

This was the first part of her response: "I'm not aware whether there are or aren't. We do have local subsidiaries that operate in markets around the world. For example, I have a team that operates in Latin America - they would probably know if there is anything going on."

Now, one could probably argue that the head of Microsoft's global partner operations should be more up-to-speed on the status of gray market activity involving Microsoft's products, at least with respect to the company's business partners. But you have to give Watson credit for straightforwardly acknowledging that she didn't know.

In any case, it was the second part of Watson's response that really intrigued me.

"Frankly, from a Cuba perspective, Cuba's not a bad word to anyone outside of the United States," she said. "I don't know, outside the United States, if [doing business with Cuba] is a good or bad thing, per se."

She's right, of course. The U.S. pretty much stands alone in its obstinate refusal to engage Cuba and enable the citizens of both countries to benefit from investment there.

That lack of engagement is hurting no one more than U.S. companies, including Microsoft.

No doubt, Microsoft products have been widely used in Cuba for years. And, no doubt, the great majority of those products are pirated. Microsoft has been able to effectively address the piracy problem in countries like China, where our government allows it to operate even though we may not be all that enthused about their politics. As a result, software piracy in China is at least less outrageous than it used to be, and Microsoft has reaped the financial benefit of that.

But when you're not allowed to engage a country in commercial enterprise, you lose.

At a technology conference in Havana in February of last year, the Cuban government declared its intention to rid itself of Microsoft software in favor of Linux. Other countries, including China, have taken similar measures. But at least Microsoft is able to compete in those countries. It, like every U.S company, needs to be allowed to compete in Cuba as well.

What People Are Saying

Economic impact on Microsoft?

According to economist.com, Cuba has a population of 11,200,000,
GDP of 45,582,000,000 USD,
GDP per capita (purchasing power per person) of 11,162 USD.

This does not look like a missed opportunity for Microsoft, considering the lack of personal wealth of individual Cubans.

I know your main point was the principle of free enterprise and what constitutes appropriate goevernmental restraint of trade; but the notion that US high tech companies such as Microsoft are somehow suffering from denial to the Cuban market seems unlikely.

US Obstinance re Cuba

Mr Tennant

Greetings from the heartland of said obstinance, Miami FL. But fret not, this will be an outrage-free response.

Your article quotes Allison Watson of Microsoft as follows: "Frankly, from a Cuba perspective, Cuba's not a bad word to anyone outside of the United States," she said. "I don't know, outside the United States, if [doing business with Cuba] is a good or bad thing, per se."

First I am going to assume that when she notes 'Cuba,' she is in effect referring to the Cuban government. That said, if the first sentence were true, why the ambivalence in the second?

Leaving aside the fact that you conveniently blew past said ambivalence in your subsequent comments, the reason is elementary, while perhaps not to someone in the dear Ms. Watson's position. Her position being one of devising corporate strategy for Microsoft, not someone whose job it is to take responsible positions on foreign regimes which routinely violate their citizens human rights.

The elementary reason I refer to is that it is palpably untrue that the Cuban government is not criticized outside of the US. The list would include, but not limited to, the UN, the EU, Mexico, Spain and France.

Perhaps the problem is geographical. No one ever washes up on a raft [dead or alive] in the glorious northwest region with a connection to Cuba, aside from those sporting Che t-shirts.

The Cuban blockade is essential!

Cuba is a repressive Communist regime! We must punish them until they have the same democratic government and defense of human rights that China has!!!!!

Huh?

I think it doesn't matter if a repressive regime is communist or not. Any type of dictatorship or puppet regime is bad.
China does not have a democratic government and the current state of human rights is quite bad in China. Even during the Olympic Games full censorship of all media outlets is in place. And how democratic and human rights oriented China's government operates in Tibet and other regions was shown during the past months.
Regardless of that, the US government itself violates the ban on trade with Cuba by dutifully paying the rent for Guantanamo Bay and in all the decades the US government never defaulted on the rent once. Furthermore, look at MLB. Several top players are from Cuba and I heavily doubt that they came over in a makeshift boat as many of the other refugees.
The ban against Cuba is pointless. While the Castro family (the largest land owners in the Caribbean - so much for communists and 'revolucion'!) has a stronghold on power on the island I don't think that Cuba is of any threat. So doing business there and making some cash is more than OK. After all, US companies have a long tradition of engaging in gainful trade with even worse regimes, such as Rockefeller's Standard Oil and Prescott Bush's Union Banking Corp that made millions in deals with Nazi-Germany despite official bans. Furthermore, while the Soviets occupied Afghanistan it was apparently quite OK to provide the underground militias of the Taliban with weapons and funds. I take much bigger exception to that than someone on Cuba buying Microsoft Word.

Ron, for you two wrongs

Ron, for you two wrongs would be a 'wright'? Right?

This couldn't be any more spot on.

This reminds me of all the times lawmakers and leaders chime in that policies and/or laws must be changed because "the world is a different place." Yes, the world IS a different place. When we left Vietnam, we thought it was lost forever. Now it is an ally. Later, Libya was a threat and with the same leader as back then, they are now considered our ally. Yet after four and a half decades, our obstinacy has prevented us from
opening the doors with one of our closest neighbors and has prevented our companies from benefiting from the changes that have occurred there. We are truly the last bastion that has failed to recognize that the ghost of Kruschev is gone. And in doing so, we've done more harm than good.

Thanks, Don, for reminding us of our lone failure to engage. If we fail to recognize it, we can't change it.