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After 50 years, the U.S. and Cuba will finally have embassies to call home


Today’s announcement of the restoration of diplomatic relations between Washington and Havana replaces over five decades of mutual hostility and aggressive name-calling with a new atmosphere of diplomatic civility. The re-opening of embassies in both capitals establishes platforms upon which to build more normal working relations. Now, the hard work begins, as the two nations gradually dismantle the comprehensive wall of restrictions separating them for two generations.

Expectations are running high, especially in Cuba, that diplomatic engagement will catalyze economic betterment on the island. To stimulate more travel and trade, the U.S. government needs to clarify rules for engaging with the emerging Cuban private sector, and make it clear to U.S. banks that they are permitted to support the use of credit cards by U.S. visitors in Cuba. The administration should also begin to consider another round of liberalizing initiatives, some under consideration in the U.S. Congress, to further relax travel restrictions, and to enable more U.S. firms—beyond agriculture and medicines—to assist the Cuban people.

For its part, the Cuban government should open efficient channels to facilitate the commercial exchanges now authorized by the Obama administration. Cuban entrepreneurs should be permitted ready access to U.S. firms wishing to sell building equipment for construction cooperatives, restaurant supplies for private-owned restaurants, and automotive spare parts for private taxis. Micro-enterprise lending should be authorized to support these emerging non-state enterprises.

If both nations build upon today’s welcome announcement by further opening these channels to travel and commerce, Presidents Barack Obama and Raúl Castro can help to safeguard their joint legacy. By fortifying and expanding constituencies on both sides of the Florida Straits, immersed in daily exchanges to mutual benefit, the two governments can render their diplomatic accomplishment politically irreversible in both capitals.

      
 
 




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Reconciling U.S. property claims in Cuba


As the United States and Cuba rebuild formal relations, certain challenging topics remain to be addressed. Among these are outstanding U.S. property claims in Cuba. In this report, Richard E. Feinberg argues that it is in both countries’ interests to tackle this thorny issue expeditiously, and that the trauma of property seizures in the twentieth century could be transformed into an economic opportunity now.

The report looks closely at the nearly 6,000 certified U.S. claims, disaggregating them by corporate and individual, large and small. To settle the U.S. claims, Feinberg suggests a hybrid formula, whereby smaller claimants receive financial compensation while larger corporate claimants can select an “opt-out” option whereby they pursue their claims directly with Cuban authorities, perhaps facilitated by an umbrella bilateral claims resolution committee. In this scenario, the larger corporate claimants (which account for nearly $1.7 billion of the $1.9 billion in total U.S. claims, excluding interest) could select from a menu of business development rights, including vouchers applicable to tax liabilities or equity investments, and preferred acquisition rights. Participating U.S. firms could also agree to inject additional capital and modern technology, to ensure benefits to the Cuban economy.

Though it is often argued that Cuba is too poor to pay some $2 billion of claims, the paper finds that Cuba can in fact manage payments if they are stretched out over a reasonable period of time and exclude interest. The paper also suggests a number of mechanisms whereby the Cuban government could secure funds to pay compensation, including revenues on normalization-related activities.

The Cuban government does not dispute the principle of compensation for properties nationalized in the public interest; the two governments agree on this. Cuba also asserts a set of counter-claim that allege damages from the embargo and other punitive actions against it. But a grand bargain with claims settlement as the centerpiece would require important changes in U.S. sanctions laws and regulations that restrict U.S. investments in Cuba. The United States could also offer to work with Cuba and other creditors to renegotiate Cuba’s outstanding official and commercial debts, taking into account Cuba’s capacity to pay, and allow Cuba to enter the international financial institutions.

Feinberg ultimately argues that both nations should make claims resolution the centerpiece of a grand bargain that would advance the resolution of a number of other remaining points of tension between the two nations. This paves the way for Cuba to embrace an ambitious-forward-looking development strategy and for real, notable progress in normalizing relations with the United States.

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Image Source: © Kevin Lamarque / Reuters
      
 
 




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The U.S.-Cuba thaw


Richard Feinberg, a nonresident senior fellow in the Latin America Initiative and author of the forthcoming book, “Open for Business: Building a New Cuban Economy” (Brookings, 2016), discusses current U.S. and Cuba relations after President Obama's visit and looks ahead to Cuba's increasing engagement with the global economy.

“The younger generation does have a respect for Fidel Castro and what the older generation accomplished,” Feinberg says. “They want to see a fresh generation of leadership, they want to see a more relaxed political atmosphere, they want more opportunities economically to exercise their own profession and exercise their own talents. They want and fully expect normal relations between Cuba and the United States.”  In this podcast, Feinberg explains how Cuba can reintegrate itself into global economy while encouraging a gradual opening of economic relations with the U.S.

Also in this podcast, meet new scholar Susan Hennessey, fellow in National Security in Governance Studies; and stay tuned for our presidential election update with John Hudak.

Show Notes

Open for Business: Building the New Cuban Economy

Obama scores a triple in Havana

In Cuba, Obama looks to the post-Castro era

Subscribe to the Brookings Cafeteria on iTunes, listen in all the usual places, and send feedback email to BCP@Brookings.edu.

Also, check our our new podcast, Intersections, where two experts discuss angles on policy issues, hosted by Adrianna Pita.

Thanks to audio engineer and producer Zack Kulzer, with editing help from Mark Hoelscher, plus thanks to Carissa Nietsche, Bill Finan, Jessica Pavone, Eric Abalahin, Rebecca Viser, and our intern Sarah AbdelRahim.

Authors

Image Source: © Ueslei Marcelino / Reuters
      
 
 




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The U.S.-Russian Relationship: Transcending Mutual Deterrence

Presidents Barack Obama and Vladimir Putin meet later this month for the first of two meetings this summer on the margins of the G-8 and G-20 summits. Nuclear weapons issues will figure prominently on the agenda. Although the U.S.-Russia relationship is no longer characterized by the hostility of the Cold War years, mutual nuclear deterrence…

       




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Transcending Mutual Deterrence in the U.S.-Russian Relationship

       




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The U.S.-Russia Relationship: Transcending Mutual Deterrence

Nuclear weapons issues continue to figure prominently on the bilateral agenda between the United States and Russia. Although the U.S.-Russia relationship is no longer characterized by the hostility of the Cold War years, mutual nuclear deterrence continues to underpin the relationship between the two countries. Is mutual deterrence a permanent fixture of the relationship between…

       




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The U.S.-Turkey-Israel Triangle


The confrontation between Israel and Hamas during the summer of 2014 deepened tensions between Israel and Turkey. Now, in the fall of 2014, U.S.-Turkish relations are strained over Turkey’s role in the fight against ISIS, while gaps between the United States and Israel over policies on Iran and Palestine serve as points of friction in the relationship. Clearly the U.S.-Turkey-Israel triangle has suffered many setbacks in recent years on all sides, but the Turkish-Israeli relationship has suffered the most, as it has been in a state of semi-paralysis for the last four years.

The watershed moment in this gradual process of deterioration between Ankara and Jerusalem is the Mavi Marmara incident of May 31, 2010, when Israeli commandos boarded a Turkish flotilla consisting of six vessels, among them the MV Mavi Marmara, headed from Turkish ports to Gaza to break the Israeli naval blockade. When activists resisted, using knives and metal bars, the commandos opened fire. Eight Turks and one Turkish-American were killed. 

Relations between Israel and Turkey were already sorely strained, but bilateral relations mostly collapsed following the incident, with a total disconnect and absence of a dialogue at the very senior levels.

This new paper, "The U.S.-Turkey-Israel Triangle," looks at the diplomatic ties among all three countries before, during and after this period. Dan Arbell suggests two closely intertwined conclusions: first, that good Turkish-Israeli relations are essential to the security and stability of the Middle East; and second, that U.S. leadership has come to play a central role in shaping–and often mediating–the Turkish-Israeli relationship. 

Other highlights from this paper include:

• The history of the relations between Turkey and Israel, developing gradually during the “early years” (1948-1992) and moving towards the “golden years” (1992-2008), during which a strategic partnership was forged between Turkey and Israel.
• The lessons learned and policy implications for the United States. 
• What diplomatic steps by the United States led to an apology from Prime Minister Netanyahu to Prime Minister (recently elected President) Erdoğan for the incident. 
• The key drivers in the Turkish-Israeli relationship, focusing on domestic and regional interests that inform geostrategic alliances in the region, including the Islamic Justice and Development Party’s (AKP) and the Israeli-Palestinian conflict.
• How the two countries’ economic ties held together the Turkish-Israeli relationship, when political and diplomatic ties came practically to a standstill.
• Why it is important to consider a set of regional challenges, on which the two countries almost see eye to eye, that may provide the necessary glue for a future Israeli-Turkish normalization process.

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Authors

Image Source: © Stringer Turkey / Reuters
      
 
 




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Can Washington D.C. become the greenest city in the U.S.?

The Sustainable D.C. Act of 2012 lists 32 goals, 31 targets, and more than 140 actions aimed to make Washington D.C. the "greenest city in the U.S."




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A major U.S. utility company just pledged to go carbon-free for the first time in American history

Are the tables finally starting to turn?




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U.S. Food Waste Challenge honors World Environment Day

In keeping with this year's theme, the USDA and EPA are launching a challenge to reduce food waste at each step from farm to fork.




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There's not enough land for everyone in the world to follow U.S. dietary guidelines

We'd need another Canada-sized chunk of fertile land, scientists say, in order to meet those requirements.




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Immigrants get a new microbiome when they come to the U.S.

Unfortunately it's not an improvement.




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U.S. and China pledge their commitments to fighting climate change at UN Summit in New York

Secretary General Ban Ki-Moon called upon heads of state to make “bold” announcements at today’s Climate Summit.




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Feds Grant Ocean Power Technologies Permit to Build First Commercial Wave Farm in U.S.

Wave power is a promising source of clean energy, but it is usually overlooked because wind and solar power are farther along.




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Surprise! UT First To Electrify Bike Sharing in the U.S.

The obvious goodness of pairing pedal assist electric bikes with a bike sharing infrastructure is one of these great ideas whose time has come. In Tokyo, Sanyo recently installed 100 of their eneloop battery powered e-bikes at a "community" bike share




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The Top 10 Worst Cities in the U.S. for Asthma in 2012

Having trouble breathing? It may be because of where you live. The 2012 Asthma Capitals list is out. Is your city on the list?




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Maine passes second GMO label law in the U.S.

The road to mandatory labels is still long, with a 5-state trigger before the requirement goes into effect.




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U.S. House of Representatives passes national GMO bill

This afternoon, the U.S. House of Representatives voted in favor of a controversial bill that seeks to set a unified standard for the labeling of foods containing genetically modified organisms.




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'Modified' asks why Canada and U.S. refuse to label genetically modified foods

But more than that, the film is a love story about cooking and gardening -- and the importance of regaining control over where our food comes from.




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Toyota to Recall the 2010 Prius in U.S. and Japan for Braking Problems

Photo: Toyota Update: Kaizen Fail: Toyota Recalls 437,000 Hybrids Worldwide, Mostly 2010 Prius Models 311,000 Third Generation Prius Hybrids to be Recalled by Toyota It seems like Toyota has yet to hit rock bottom. Last week the NHTSA announced that it




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U.S. added 147 megawatts of geothermal energy in 2012

Geothermal power has a promising future, but so far it has lagged behind most of its other renewable energy cousins, especially wind and solar.




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U.S. House approves Keystone XL pipeline

House of Representatives voted in favor of the XL Keystone pipeline project, in an attempt to bypass executive authority.




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U.S. Senate votes down Keystone XL pipeline

After the House of Representatives approved legislation pushing the Keystone XL forward, the Senate has rejected it.




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3 Things About Recycling the U.S. Can Learn from the Galapagos

The ballooning rates of people coming to the Galapagos, as residents or tourists, over the past few years has created a variety of environmental concerns for the islands. Not least of these is waste management, as the




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More Protests in Peru Against U.S.-Owned Gold Mine

The Conga mine, which is majority owned by Newmont Mining Corp, would produce gold as well as copper and silver. Protesters are concerned the mine will contaminate their water and affect a major aquifer.




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U.S. Nuclear Power in Decline

Nuclear power generation in the United States is falling. It plateaued between 2007 and 2010—before falling more than 4 percent over the last two years. Projections for 2013 show a further 1 percent drop.




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How much energy is used to heat, cool, and light our homes in different U.S. climate regions?

Michael Sivak shows us the numbers.




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U.S., Iran Agree on Need for Increased Environmental Education

Despite the fact that representitives from Iran and the U.S. agree on virtually nothing else in the world, representatives from both countries at the U.N. Conference on Climate Change in Bali are among those pointing out the need for increased




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Now that China won't take plastic waste, what's the U.S. doing?

A new investigation by Greenpeace delves into the ongoing environmental devastation caused by our recycling habits.




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12 Innovative Ways to Rethink Our Cities From the U.S. Pavilion at the Venice Architecture Biennale

The U.S. Pavilion is spotlighting grassroots efforts to make cities and neighborhoods greener, safer, and happier places to live.




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Female pigs in U.S. are dying in record numbers

The premature deaths are linked to excessive breeding.




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U.S. Feeds One Quarter Of Its Grain To Cars While Hunger Is On The Rise

The 107 million tons of grain that went to U.S. ethanol distilleries in 2009 was enough to feed 330 million people for one year at average world consumption levels. More than a quarter of the total U.S. grain crop was turned into ethanol to fuel cars




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U.S. Doctors Say Biofuels Could Kill 192,000+ Per Year in Developing Countries

Photo: Stephanie Says, Flickr, CC Turning Food into Fuel is Not the Solution The Association of American Physicians and Surgeons (AAPS) has released a warning that U.S. and European policy to increase the production of biofuels could lead to almost




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Lighting facts: Did you know that 70% of lightbulbs in the U.S. are still inefficient models?

If every home in the U.S. switched just one inefficient light for an Energy Star one, that would be equivalent to taking 800,000 vehicles off the road in term of greenhouse gas emissions




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Energy Star now rates clothes dryers. This could reduce U.S. CO2 emissions by 22bn lbs per year!

Drying clothes uses an incredible amount of energy, it's clearly a low-hanging fruit for conservation and energy efficiency efforts.




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The biggest energy-saving regulation the U.S. has ever seen was released today

The new rule is expected to save Americans $167 billion in energy costs.




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U.S. and WWF Push for Ban on Tuna Fishing

In a belated attempt to (finally) stem the growing tide of aggressive overfishing, the U.S. is calling on the International Commission for the Conservation of Atlantic Tunas (ICCAT) to enact a 3-5 year ban on bluefin tuna




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Children take U.S. government to court over climate change

The health of young people is disproportionately harmed by climate change, and the government has failed to keep them safe.




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U.S. birth rate has dropped to lowest in 30 years

Demographers are complaining, but Americans have many good reasons for not wanting so many kids.




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U.S. Asian Carp Czar Says Poison, Genetic Engineering Among Solutions

The Obama administration loves its czars almost as much as the media loves using the title. So here goes: The U.S. Asian Carp Czar, also known as John Goss, says he has a multi-pronged strategy to help keep Asian carp from




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Asian Carp Almost Migrate from U.S. to Canada, in a Big Truck

How will invasive Asian carp enter the Great Lakes? Via the Chicago Sanitary and Ship Canal, maybe another flood? They almost made it via a semi-tractor trailer crossing the Ambassador Bridge from the U.S. to Canada. The




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U.S. consumers are baffled by how to shop more sustainably

A study shows that many want to make better decisions, but don't know how.




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It's Not Just Asian Carp: U.S. Identifies 40 High-Risk Species

Concerned about Asian carp? Meet the invasive cousins, you might say, of the monster fish. The U.S. Army Corps of Engineers has released a white paper on 40 high-risk species to watch out for,




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U.S. is trying to boost British appetite for chlorinated chicken

The problem is, it's not just about the presence of chlorine, but rather why the chlorine is needed in the first place.




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Patagonia urges U.S. government to protect Arctic Refuge from oil drilling

The Gwich'in people have been fighting this battle for decades, and now they need broader public support. Learn how you can help.




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U.S. national parks waive entry fees to help people get outside

Social distancing doesn't mean you can't go for a solitary hike in the wilderness.




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U.S. dietary guidelines may include environmental concerns for the first time

The U.S.’s top nutritional panel has recommended that Americans eat less meat, both for their health and to help protect the planet.




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Calling all birders: A new study is seeking participants in the Southeast U.S. this summer

Though it sounds like a technical term more suited for computer programming, avicaching is actually a growing practice that encourages birders to collect and share their data from bird-watching through an internationally known phone app.




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KitTea could be the first cat cafe in the U.S.

Courtney Hatt and David Braginsky are working to crowd-fund a cafe and cat rescue in San Francisco.




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Hybrid rooftop wind and solar generator now available in U.S. for early adopters

The SolarMill, a 1.2 kW combination wind and solar energy system, will be sold in the U.S. for about $3000.