Castro Feeds on Cubans’ U.S. Cash Support as Obama Eases Limits

By Jerry Hart

April 17 (Bloomberg) -- The Cuban state pension that Juan Gonzalez-Corzo receives since he retired from a government job in 2003 makes life easier after more than 50 years of work.

So does the cash that comes regularly by wire from his son in West New York, New Jersey.

It’s part of an estimated $1.1 billion sent to Cubans last year by relatives and friends around the world, an amount equal to about 1.8 percent of the communist country’s 2007 gross domestic product.
“Most of the remittances end up used for consumption,” said Gonzalez-Corzo’s son Mario, 39, a Cuban-born assistant economics professor at Lehman College in New York City who has studied remittances and provided the estimates. “It helps.”

The money also helps the island’s $58 billion economy, as the Cuban government charges fees that take about 20 percent of exchange-wired dollars, Gonzalez-Corzo said.

That troubles U.S. politicians who say the transfers support the totalitarian state created by Fidel Castro in 1959 and now run by his brother Raul. President Barack Obama this week eased restrictions that had limited money transfers by Cuban-Americans, most of whom live in southern Florida.

“The Castro government will confiscate a high percentage of those dollars, further propping up a regime that suppresses human rights,” said Representative Kendrick B. Meek, a Democrat who represents parts of Florida’s Miami-Dade and Broward counties.

About 735,000 people around the world -- more than half from the U.S. -- sent an average of $150 to friends or relatives in Cuba last year, according to a study by Inter-American Dialogue, a Washington-based research organization. The cash sent in 2007 was equal to 42 percent of the island’s tourism income and 4.7 times more than its sugar exports, Gonzalez-Corzo said.

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