March 7, 2003
Talking Market Economics With Fidel: Texas Professor Magee Visits Cuba
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AUSTIN, Texas—Ever thought you wanted to give Fidel Castro some tips on running Cuba? Be prepared to listen—that what's finance professor Stephen Magee learned on a recent trip to Havana.
Magee was one of two professors from The University of Texas at Austin who presented papers in Havana at an academic conference on globalization Feb. 15, 2003. Known as a conservative economist, Magee was accompanied by one of the country's best known liberal economists, James Galbraith of the LBJ School of Public Affairs.
The pair talked with Castro for about an hour and a half after sessions in
which they presented their works to 800 Latin American economists.
Magee focused his presentation on the importance of the information revolution
for developing countries. Citing the economic success stories of Singapore and
Hong Kong, he argued that developing countries needed to make crucial
investments—and philosophical commitments—to the underlying principles of
the information revolution if they expected to advance their economies into the
21st century.
The professor had heard beforehand that Castro was interested in his paper.
The dictator confirmed the point when he and an entourage entered during the
presentation and took seats in the front row. Afterwards, the world’s longest ruling head of government motioned for
Magee to come speak with him.
“Castro didn’t like my market focus,” said Magee. The two exchanged heated
but friendly arguments, until Castro noted that
“‘we just have a difference of perspective here.’”
Recounting the episode upon his return to the U.S., Magee could not resist
finding some irony in the dictator’s perspective, given the glamour of new hotels and conference facilities
he saw sprouting up around Havana due to a recent infusion of foreign capital. Since the early 1990s, European and Canadian interests have funded a booming tourism industry
on the island. “Tourism from partnerships with European capitalists,” said Magee, “is now the main generator of foreign currency for Cuba.”
Apart from discussing market economics, Castro was interested in talking with the professor’s family. Magee’s wife Fran donates proceeds from her art sales
at Gallery 106 and Casa Cubana
for humanitarian aid to Cuba’s poor. Magee’s stepson, Chet Hornung
(McCombs MBA ’96),
founded the non-profit organization Medaid.org, which has delivered more than $4 million in donated medicines to
Cuba and has facilitated hundreds of humanitarian trips to the country for those willing to donate and carry medical supplies.
Castro also discussed economic theory with Galbraith. The meeting between the socialist leader and the son of one of the world’s most famous economists ended on an interesting note.
When Galbraith introduced Castro to his 17-year-old daughter Maggie, Castro asked her if she planned to study economics like her famous father and grandfather. “Oh no,” said Maggie Galbraith, “I don’t want to do that when I grow up.” Castro leaned forward and lowered his voice: “I understand. I didn’t want to do what my father did either—he was a landowner.”
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