With it come huge risks. In his book titled "Rulers and Ruled in the US Empire," James Petras exposed six myths of direct foreign investment (FI).
(1) It doesn't create new enterprises and market opportunities. It buys privatized and other enterprises. It crowds out local capital and public initiative.
(2) It doesn't enhance export effectiveness. It buys minerals and other resources for export. It doesn't create jobs or stimulate national economies.
(3) It doesn't provide tax revenue and hard currency. It creates more indebtedness and net loss than gain.
(4) Indebtedness to foreign lenders is economically destructive.
(5) It doesn't provide developing countries with needed capital. FI exploits. It doesn't benefit recipient countries.
(6) It doesn't attract further amounts. Capital flows where returns are highest. It's anchored nowhere. It has no national allegiance.
Developing countries benefit most by relying on national ownership and internal investment. FI is predatory. Internally generated growth works best.
FI favors capital over labor. Political, economic and social inequalities result. From 1980 - 2000, Latin American FI proved socially disastrous.
Living standards plunged. Unemployment and poverty soared. Cuba knows what happened. Why adopt policies sure to fail.
Hopefully Raul Castro and other ruling officials will choose ways beneficial for all Cubans. Doing so without ALBA won't be easy. Hopefully it won't come to that, with or without Chavez.
ALBA is mutually beneficial. As long as Venezuela is progressively governed, it won't sacrifice what worked effectively for years. Losing it is likely only if dark forces regain power.
Nothing suggests it's possible any time soon. Hopefully they're banished forever.
Cuba faces other economic challenges. It suffered Gulf of Mexico oil exploration setbacks. US sanctions create hardships.
Nicaragua also voiced concerns about Chavez's illness. Since 2007, it got billions of dollars of aid.
Former Sandinista Renovation Movement (MRS) foreign minister and current National Assembly deputy Victor Hugo Tinoco said: