Cuba marks the end of decades of centrally planned economy. The government announces more autonomy for state-owned enterprises. But so right, at Least, want to trust the Roast but.
There were only a few sentences in a long speech, but the sit up and take notice let. On the retreat of the Congress of the Association of Economists and accountants of Cuba (Asociación de Economistas y Contadores de Cuba, ANEC) in the past weekend, in Havana Cuba, Cuba’s President, Miguel Díaz-Canel, what was stated by economy Minister Alejandro Gil already previously confirmed. Starting next year, the production “are given plans in the state-owned companies from the top”, but by the workers themselves made. The state enterprises enjoy more autonomy.
Thus, the government ended the decades-long centralization of the economy. “It requires a bold and revolutionary measure, the objectivity, realism, and consciousness,” praised be Díaz-Canel quasi self. They should help to revive the ailing economy of the Caribbean island. The government had last repeatedly emphasized that because of the chronic shortage of foreign Exchange reduced imports and more in the country produces itself should be. But the state-owned enterprises need to be more effective. The measure should also be seen against this Background.
Cuba’s President Miguel Diaz-Canel
“Caution is advised”
“More autonomy for the state enterprises is urgently needed, but whether the announcement Díaz-Canel actually means a ‘end of the planned economy’, because a great deal of caution seems warranted,” says Bert Hoffmann, a Cuba expert at the GIGA (German Institute of Global and Area Studies), compared to the DW. “The inertia forces are strong, and announcements is still far from being consistent implementation.”
The Cuban President knows. “This for years, demanded action to implement effectively, is a change of mentality is necessary,” says Díaz-Canel, in his speech. Also interviewed Cubans show more sceptical about an end to the planned economy. The talk always comes back to a culture in the companies and also authorities, in the “orders from above” are not in question. To change the is likely to be the biggest challenge. More autonomy had been promised for a long time.
In fact, it was already in the Congress of the Communist party of Cuba (PCC) in April 2011 adopted social and economic guidelines have been announced, more autonomy for state-owned enterprises. The renewal of the state sector, considered the core of the then President Raúl Castro’s reforms. Around 70 percent of Cubans are still employed in state authorities and enterprises.
Havana’s morbid charm
The law on the Reform of state-owned companies in December 2014 were state-owned companies more leeway in financial planning and the development of own-wage and incentive systems, but previous legislative initiatives were rather reserved with regard to the decentralization of decisions.
“Cuba before hard times”
“Given the dramatic deterioration in the external Situation – Venezuela, Mais Medicos, Trump has Cuba to mobilize with little other Alternatives than the use of domestic resources,” said Hoffmann. In fact, it has worsened the geopolitical situation for Cuba noticeably. The economic and political crisis in Cuba, the tightest of allies, Venezuela is increasingly also on the island is noticeable. The oil deliveries by Caracas have fallen by more than half. And by the end of the medical programme, Mais Médicos (More Doctors) with Brazil around 400 million US dollars away annually in foreign exchange. The United States, in turn, have aggravated under President Donald Trump, the blockade policy. Foreign companies seized after the Revolution and nationalized the possession can be sued in may in U.S. courts for damages. The aims, in particular, to bring in potential investors with uncertainty. In addition, Washington has adopted new restrictions on visits and money transfers to Cuba.
“Looking for you in these difficult times for ways to improve the investment climate and facilitate trade and investment,” said the EU Ambassador in Havana, Alberto Navarro, at the end of may on a work of European businessmen and foreign diplomats, the press was allowed to meet the present Cuban government representatives. He had never seen a country that would have done it with development aid alone, needed foreign investment.
Bad supply situation: Empty shelves in a supermarket in Havana
For Hoffmann, the Problem goes beyond greater autonomy for state enterprises, and more foreign capital. “Also for the private sector and cooperatives, it would need more space and more legal security.” The program of the government was actually been a slow, gradual Reform, he suspects. “Well, it looks like you don’t need to have the time and faster reform than wanted. But even then, rapid improvements in the supply situation are hardly to be expected. Cuba, hard times are imminent.”