South China Morning Post

Cuba’s time-honoured black market takes a leap into the digital age

Surge in internet usage allows people to beat chronic shortages of daily necessitie­s

- Associated Press

In a Telegram group chat in Cuba, the messages roll in like waves.

“I need liquid ibuprofen and paracetamo­l, please,” one user wrote. “It’s urgent, it’s for my 10-month-old baby.”

Others offer medicine brought from outside the country, adding: “Write to me in a direct message.” Emoji-speckled lists offer antibiotic­s, pregnancy tests, vitamins, rash creams and more.

The group message, which goes to 170,000 people, is just one of many that have flourished in recent years in Cuba alongside an exponentia­l increase in internet usage on the communistg­overned island.

The informal sale of everything from eggs to car parts – the country’s so-called black market – is a timehonour­ed practice in crisis-stricken Cuba, where access to the most basic items such as milk, chicken, medicine and cleaning products has always been limited.

The market is technicall­y illegal, but the extent of illegality, in official eyes, can vary by the sort of items sold and how they were obtained.

Before the internet, such exchanges took place “through your contacts, your neighbours, your local community”, said Ricardo Torres, a Cuban and an economics fellow at the American University in Washington.

“But now, through the internet, you get to reach out to an entire province.”

With shortages and economic turmoil at the worst they had been in years, the online marketplac­e “has exploded”, Torres said.

Bustling WhatsApp groups discuss the informal exchange rate, which provides more pesos per US dollar or euro than the official bank rate. Meanwhile, sites such as Revolico, the island’s first digital buying-andselling tool, advertise everything from electric bicycles brought in from other countries to “capitalist apartments” in Havana’s wealthy districts.

Many products are sold in pesos, but higher-priced items are often listed in dollars, with payments either handled in cash or through bank transfers outside the country.

While wealthier Cubans – or those with families sending money from abroad – can afford more lavish items, many basic items remain unaffordab­le for people like Leonardo, a stateemplo­yed engineer who asked his real name not be used because he feared retributio­n from the government.

Three months ago, Leonardo began buying items such as inhalers, antibiotic­s and rash creams from friends arriving from other countries, then reselling them for a small profit online.

Government authoritie­s are harshly critical of such revendedor­es, or resellers, especially those who buy products in Cuban stores then sell them at a higher price.

In late October, President Miguel Diaz-Canel called for a crackdown on the practice, referring to revendedor­es as “criminals, swindlers, riffraff, the lazy and the corrupt”.

“What we can’t allow is that those who don’t work, don’t contribute and break the law earn more and have more opportunit­ies to live well than those who actually contribute,” he said at a meeting with government officials. “If we did that … we’d be breaking the concepts of socialism.”

But Leonardo said he and others like him were just trying to get by.

“This medicine goes to the people who need it, people who have respirator­y issues,” he said. “Those who use them are people who really need them … More than anything else, we sell antibiotic­s.”

With the money he has earned from his sales, Leonardo has been able to buy soap and food, as well as antibiotic­s and vitamins for his elderly parents.

The rise of the digital marketplac­es speaks to a specific brand of creative resilience that Cubans have developed during decades of economic turmoil. Much of the crisis is a result of the US government’s six-decade trade embargo on the island, but critics say it is also due to government mismanagem­ent of the economy and a reluctance to embrace the private sector.

So people on the island tend to be highly resourcefu­l, working with whatever they have available – think old cars from the 1950s that still roll along the streets, thanks to mechanics using ingenuity and spare parts.

Entreprene­urs have used the same creativity to deal with what was initially very limited internet access. Carlos Javier Peña and Hiram Centelles, Cuban expatriate­s who live in Spain, created Revolico in 2007 to help “alleviate the hardships of life in Cuba”.

They kept the site design simple, similar to Craigslist, to match the island’s sluggish internet. But in 2008, the same year the government lifted a ban on sales of personal computers, it blocked access to Revolico. The ban remained in place until 2016. In the meantime, Peña and Centelles used digital tools and different host sites to jump the firewall.

Using the site was still a challenge for many, however, given the lack of cellphone internet.

Heriberto, a university student in 2008, was able to access it through a small monthly internet package given to him by the school. Others asked friends and family to buy items for them while at work, where they sometimes had internet access.

“Here, the markets more often than not don’t have the things you’re looking for,” said Heriberto, now 33, who asked only his first name be used because he also feared repercussi­ons from the government. “So you develop this custom of looking first in the store. Then when they don’t have it, you look on Revolico.”

Sales on WhatsApp, Facebook and Telegram really took off in 2018 when Cubans gained access to the internet on their phones, something American University fellow Torres described as a “game changer”.

Between 2000 and 2021, the number of Cubans using the internet rose from less than 1 per cent of the population to 71 per cent, Internatio­nal Telecommun­ications Union data shows. The internet also became a lifeline for Heriberto and many others during the Covid-19 pandemic.

Now, with the island’s main economic sector, tourism, still recovering, many have built entire enterprise­s on the online sale of goods – both basic necessitie­s such as medicine, as well as many higherpric­ed speciality items. Heriberto recently used the site to sell a mountain bike he priced in dollars.

Revolico co-founder Centelles said the site and similar tools had evolved to adapt to a constantly changing

Cuba. For example, as the island suffered crippling blackouts, sales of power generators and rechargeab­le batteries had skyrockete­d, he said.

Government officials have said the internet is important for the country’s economic growth – but have treated it with a “grudging acceptance”, according to Valerie Wirtschaft­er, a senior data analyst at the Brookings Institutio­n who tracks internet usage in Cuba.

“They have never really been able to control the internet in many ways,” Wirtschaft­er said.

Perhaps the most visible example came when mass protests erupted in 2021, largely thanks to rapidly spreading communicat­ions on social media sites including Facebook, WhatsApp, Instagram and Telegram. The government blocked many key social media and messaging sites for days to stop protests from spreading.

While Leonardo said he considered it risky to sell on Telegram, “in the end, you need medicine … so you assume that risk”.

Heriberto still uses Revolico, but he said he now preferred sites such as Facebook that offered a level of anonymity. On those sites, he could sell using a fake profile, he said, as opposed to Revolico, which requires you to post your phone number.

“It’s a basic necessity now,” Heriberto said. “The internet has arrived in Cuba, and now it’s fundamenta­l.”

It’s a basic necessity now. The internet has arrived in Cuba, and now it’s fundamenta­l

HERIBERTO, ONLINE TRADER

 ?? ?? The Revolico site has a simple design to cope with Cuba’s slow internet speeds.
The Revolico site has a simple design to cope with Cuba’s slow internet speeds.
 ?? Photo: AP ?? The arrival of mobile internet has helped Cuban online commerce take off.
Photo: AP The arrival of mobile internet has helped Cuban online commerce take off.

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