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

1990 1999
YEARS
Tourism income as % of total income in 4% 43%
the balance of payments

Tourism purchase in local market as 17% 61%

percent of all purchases

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 • Deficiency of centrally

biotechnology planned economy.
• 30 patented vaccines • Dependence on other
• Effectiveness of new countries.
product. • Lack of experience ,
• World’s only vaccine economy of scale ,
against Meningitis. world wide marketing.
 Threats Opportunities
• USA .
• US Cuban democratic act.
• Competitive marketing by
transitional company of
other country.
• Accused of offensive
biological warfare research
and development .
• Tourism (largest island).
• Export of by products of
sugar.
• Geographical dispersion
• Relaxing government
policies.
• World wide recognition of
products like Hepatitis B by
WHO.
 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.
THANK YOU