BY: LARRY WILLMORE
United Nations
Department of Economic and Social Affairs
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=231245
Paper ID: United Nations DESA Working Paper No. 12
Date: May 2000
Contact: LARRY WILLMORE
Email: Mailto:willmore at un.org
Postal: United Nations
Department of Economic and Social Affairs
Division for Public Economics and Public Administration
Room DC1-922
New York, NY 10017 USA
Phone: 212-963-4758
Fax: 212-963-9681
ABSTRACT:
In a radical shift of policy, Cuba inaugurated in 1997 a number
of export processing zones (EPZs). Despite generous tax
incentives and an abundant supply of educated labour, investors
have not rushed to the EPZs, except for one firm which has its
eye on national rather than export markets. This paper argues
that Cuba's EPZs have failed not because they face a United
States trade embargo, but rather because employers must pay US
$1.50 an hour for labour that receives take-home wages
equivalent to only 4 US cents an hour.