New Cuba Constitution Draft Recognizes Right to Private Property

Since Cuba’s election of a new president this past April, an official commission has been drafting a new constitution for the island nation. Recently, the commission presented the draft to the 7th Plenum of the Central Committee of the Party and the Council of State, in which each of its precepts was “deeply analyzed.” On July 21-23 the draft will be presented for approval to Cuba’s national assembly (the National Assembly of the People’s Power), and later this year to the people in a national referendum.[1]

On July 14, an official website of the Communist Party of  Cuba, published a summary of the current draft of the new constitution that said it recognized both a free market and private property. More specifically, it said the draft “ratifies constitutionally the importance of foreign investment for the economic development of the country, with due guarantees. Regarding private property on the land, a special regime is maintained, with limitations on its transmission and the preferential right of the State to its acquisition through its fair price.”

On the other hand, this summary reaffirmed that state enterprise and central planning are the pillars of the economy and that the Communist Party would remain as the dominant political force.

Cuba expert Luis Carlos Battista at the Washington-based Center for Democracy in the Americas cautioned that the acknowledgement of private property did not mean the government wanted to give private enterprise a greater role. Last week, he noted, the government published a set of regulations tightening control on the self-employed and hiking possible fines to include property confiscation.[2]

Other changes in the draft are the creation of the position of prime minister as the head of government, making the president the head of the national assembly with a limit of two consecutive five-year terms and creating a new presumption of innocence in the criminal justice system. It will maintain religious freedom.

In addition, the draft expressly calls for “the promotion of respect for international law and multipolarity among States; the repudiation of all forms of terrorism, particularly State terrorism; the rejection of the proliferation and use of nuclear weapons, of mass extermination or others with similar effects; the protection and conservation of the environment and the fight against climate change, as well as defends the democratization of cyberspace and condemns its use for subversive and destabilizing purposes of sovereign nations.”

The proposed new constitution, according to Cubadebate, was made necessary by “the experience of the years of the revolution [since 1959], the new directions drawn from the implementation of the guidelines for Economic and Social Policy approved by the Sixth Party Congress [in 2011], the objectives emanating from the First National Conference [of the Party in 2012], as well as the decisions adopted in the Seventh Party Congress [in 2016].”[3]

The commission is headed by Raúl Castro while one of its members is the new president, Miguel Diaz-Canel.

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[1]  Know the main aspects of the Draft of the new Constitution, Cubadebate (July 14, 2018); Reuters, Communist-Run Cuba to Recognize Private Property in New Constitution, N. Y. Times (July 14, 2018); Assoc. Press, Cuba to Reshape Government With New Constitution, N.Y. Times (July 14, 2018).

[2]  See these posts and comments on dwkcommentaries.com: Cuba announces New Regulations for Private Business (July 10, 2018); More Details on New Cuban Regulations on Private Business (July 11, 2018);  Comment: Yet More Details on New Cuban Regulations on Private Business, (July 13, 2018).

[3] See these posts to dwkcommentaries.com: Raúl Castro Discusses Cuba-U.S. Relations in Report to Seventh Congress of the Communist Party of Cuba (April 18, 2016); Raúl Castro Discusses Scio-Economic Issues in Report to Seventh Congress of the Communist Party of Cuba (April 19, 2016); Conclusion of Seventh Congress of Communist Party of Cuba (April 20, 2016).

A Pessimistic Assessment of Cuba’s Economic Future

Jorge G. Castañeda, the Foreign Minister of Mexico from 2000 to 2003,[1] has rendered a pessimistic assessment of Latin American socialism, especially in Venezuela and Cuba.[2]

He starts with the assertion that the recent “Cubana de Aviación airliner’s crash in Havana . . . [was an] illustration of the utter bankruptcy of the 21st century socialism.” Later in the article he says, like “the Cuban economy, the plane was old, poorly maintained, leased by the national airline because it was the only one it could afford, and the rest of Cubana de Aviación’s domestic fleet had already been grounded.” (A subsequent article reported that Cubana de Aviación has suspended all domestic flights until September.[3])

Cuba, he says, “paid a heavy price for the initial, and perhaps enduring, successes of its revolution: education, health and dignity. But from the very beginning — with the exception of a few years between the collapse of the Soviet Union and the end of its subsidies to Cuba in 1992 and the advent of Venezuelan support in 1999 — it always found someone to pay the bills. The next option was meant to be the United States. That no longer seems possible.”

Now, with a new president, Cuba “again faces enormous economic and social challenges. They stem from three problems with no solutions.”

“First, says Castañeda, is the fall of tourism from the United States and the new tough line on Cuba adopted by the Trump administration. Through March of this year, the number of visitors from the United States is down more than 40 percent compared with 2017. This is partly because of travel warnings over safety issued by Washington, partly because of new travel restrictions put in place by President Trump [[4]] and because after the initial boom of nostalgic tourism, Cuba is now competing for normal travelers with the rest of the Caribbean. Its beauty and charm do not easily outweigh other destinations’ far superior services and infrastructure, and lower prices. Today myriad start-up businesses — always thought to be too small and numerous to survive — that sprang up for United States visitors are failing as a result of falling tourism.” [5]

Second, according to Castańeda, “American sanctions and Cuban fear of economic reforms have rendered the push for greater foreign investment somewhat futile. After an initial rush of highly publicized announcements, some United States companies have proved reluctant to run risks, particularly given Mr. Trump’s hostility toward all things Obama, and his dependence on Florida for re-election.”

As a result, he continues, the Cuban “economy has stopped growing, scarcities have re-emerged and new opportunities for employment and hard-currency earnings are not appearing. If one adds to this the government’s decision to suspend new cuentapropista or private self-employment permits, it is no surprise to discover that economic prospects are dim.”

Third, “Venezuela is no longer able to subsidize Cuba’s transition to a Vietnam-style socialist economy the way it did before.” In short, Venezuela cannot now provide oil to Cuba at below-market prices and on credit and cannot pay for Cuban doctors, teachers and intelligence personnel, which has been a major source of Cuban export earnings.

Nevertheless, Venezuela is “Cuba’s only unconditional ally in the world.” Hence, the first foreign leader to visit Cuba’s new president, Miguel Diaz-Canel, was Venezuela’s president, Nicolás Maduro, and Diaz-Canel returned the favor by making his first foreign visit to Venezuela.[6]

Now the U.S. is pressing for increased hemispheric sanctions against Venezuela with U.S. Secretary of State Mike Pompeo on June 4 being expected to drop the next shoe in an address to the  General Assembly of the Organization of American States.[7] If any of those anticipated U.S. requests are met, this will increase the pressures on Cuba.

Conclusion

 In partial response to these issues, on June 2 Cuba started the process for revising its constitution with the agenda for an extraordinary session of its national legislature (the National Assembly of People’s Power) including approval of “the process to be followed in carrying out Constitutional Reform and the commission of deputies responsible for drafting and presenting the proposed Constitution of the Republic.”  This first step was the approval of a commission to prepare a draft of a revised constitution that will be headed by Raúl Castro, the former president, Diaz-Canel, the current president, and 31 others. Once the constitutional draft is ready, it is slated to be discussed first by the national legislature and then by the broader population, before being submitted to a referendum.[8]

One of the major anticipated challenges for drafting the new constitution will be validating private ownership of property and businesses while simultaneously upholding the “irrevocable nature of socialism.” Perhaps the selection of Castro as the chair of this constitutional commission is not as anti-economic reform as might appear to outsiders. After all Raúl first announced the need for a new constitution in 2011 after embarking on a series of reforms cautiously opening up the economy to foreign investment and the private sector in order to make Cuban socialism sustainable. And at the Communist Party’s Congress in 2016, Castro praised the innovations of the private sector and criticized the “outdated mentalities” and “inertia” of state-owned enterprises.[9]

Such a change will have to delete or modify a current constitutional clause forbidding Cubans from “obtaining income that comes from exploiting the work of others.” “According to Julio Perez, a political analyst and former news editor at state-run Radio Habana, said “Cuba has to make substantial changes to the constitution that endorse private property, self-employment and cooperatives as part of the Cuban economy.”

Simultaneously there are reports that the government is preparing decrees regarding norms for 2,386 Cooperatives of Credit and Services (CCS), 650 Cooperatives of Agricultural Production (CPA) and 1,084 Basic Units of Cooperative Production (UBPC) operating in the agricultural sector and producing 92% of the island’s food.[10]

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[1] Castañeda now is Associated Professor of Public Service, New York University (NYU) Wagner; Global Distinguished Professor of Politics and Latin American and Caribbean Studies, NYU Faculty of Arts and Science. He also is a former member of the  board of Human Rights Watch and a noted author.

[2] Castañeda, The Bankruptcy of 21st Century Socialism, N.Y. Times (June 2, 2018).

[3] Cubano de Aviación will maintain the suspension of domestic flights at least until September, Diario de Cuba (June 2, 2018).

[4] This blog has criticized the 2017 State Department’s urging Americans to reconsider traveling to Cuba because of the still unresolved medical problems experienced by some U.S. (and Canadian) diplomats in Havana and the U.S. cancellation of individual person-to-person travel to Cuba. (E.g., A New Travel Warning for Americans Traveling to Cuba, dwkcommentaries.com (Sept. 19, 2017); New U.S. Regulations Regarding U.S. Travel to Cuba and Transactions with Cuban Entitles, dwkcommentaries.com (Nov. 8, 2017).)

[5]  As this blog has reported, Cuba’s private sector was flourishing in 2015-2016, but has fallen into hard times as a result of new Cuban restrictions on such enterprises and the decline of American visitors, a result that should be contrary to the normal Republican promotion of entrepreneurship and of a potential challenge to Cuba’s socialism. (See., e.g., Why Is the Cuban Government Trying To Slow Down the Private Sector? dwkcommentaries.com (Aug. 3, 2017).)

[6] E.g., Cuba’s New Leader Praises Maduro in ‘Solidarity’ Visit to Venezuela, N.Y. Times (May 30, 2018); Why did Díaz-Canel make his first state visit as President to Venezuela?, Granma (June 1, 2018).

[7] U.S. State Dep’t, Secretary of State Pompeo to Lead U.S. Delegation to the Organization of American States General Assembly (June 1, 2018).

[8] Reuters, Cuba Set to Launch Constitutional Rewrite to Reflect Reforms, N.Y. Times (June 2, 2018); Raúl will lead the Commission in charge of the project of Constitution of the Republic (+ Video), Granma (June 2, 2018); Díaz-Canel: The new Constitution will take into account the principles of our political system, Granma (June 2, 2018); Deputies will continue meeting following extraordinary session, Granma (June 1, 2018); Romero, Constitutional Reform in Cuba: Priority for ANPP commissions, Cubadebate (June 2, 2018); Assoc. Press, Cuba Forms Commission to Update Soviet-Era Constitution, N.Y. Times (June 2, 2018); Reuters, Raul Castro Appointed to Head Rewrite of Cuba Constitution, N.Y. Times (June 2, 2018).

[9] Raúl Castro Discusses Socio-Economic Issues in Report to Seventh Congress of the Communist Party of Cuba, dwkcommentaries.com (April 19, 2016); President Raúl Castro Affirms Importance of Cuba’s Private Sector, dwkcommentaries.com (July 18, 2017).

[10] The government prepares laws for Cuban agricultural cooperatives, producers of 92% of food, Diario de Cuba (June 2, 2018).

U.S. Current Assessment of Cuban Human Rights

As discussed in a prior post, on April 20, the U.S. State Department released its annual report on the status of human rights in nearly 200 countries around the world. Here is the Executive  Summary of its report on human rights in Cuba in 2017.

Executive Summary

“Cuba is an authoritarian state led by Raul Castro, who is president of the Council of State and Council of Ministers, Communist Party (CP) first secretary, and commander in chief of security forces. The constitution recognizes the CP as the only legal party and the leading force of society and of the state. The government postponed October municipal elections due to recovery efforts related to Hurricane Irma but conducted them in November, although they were neither free nor fair. A CP candidacy commission prescreened all candidates, and the government actively worked to block non-CP approved candidates.”

“The national leadership, including members of the military, maintained effective control over the security forces.”

“The most significant human rights issues included torture of perceived political opponents; harsh and life-threatening prison conditions; politically motivated, sometimes violent, detentions and arrests; a complete absence of judicial independence; arbitrary arrest and detention that was politically motivated and sometimes violent; trial processes that effectively put the burden on the defendant to prove innocence; and political prisoners.”

“ There was arbitrary interference with privacy, including search-and-seizure operations in homes and monitoring and censoring private communications.”

“Freedom of expression was limited to expression that ‘conforms to the goals of socialist society’ with strict censorship punishing even distribution of the Universal Declaration of Human Rights. There were bans on importation of informational materials; strict control of all forms of media; restrictions on the internet, including severely limiting availability and site blocking; restrictions on academic freedom, including punishment for any deviation from the government line; criminalization of criticism of government leaders; and severe limitations on academic and cultural freedom, including on library access.”

“There were restrictions on rights of assembly to those that the government deemed to be “’against the existence and objectives of the socialist state;’ criminalization of gatherings of three or more not authorized by the government, and use of government-organized acts of repudiation in the form of mobs organized to assault and disperse those who assembled peacefully; denial of freedom of association, including refusal to recognize independent associations; restrictions on internal and external freedom of movement; restriction of participation in the political process to those approved by the government; official corruption; outlawing of independent trade unions; compulsory labor; and trafficking in persons.”

“Government officials, at the direction of their superiors, committed most human rights abuses. Impunity for the perpetrators remained widespread.”

Conclusion

I believe that a lot of what this Report says about Cuba is true. But it reflects a common failure of Americans to recognize and appreciate Cuba’s situation. As a relatively poor, small nation, Cuba has faced over the last 59 years a vastly larger, wealthier, stronger United States which has overtly and secretly attempted to impose or encourage regime change on the island. Under those circumstances, it should be easy for Americans to understand why Cuba has sought to control opposition.

 

 

 

 

 

 

The Inauguration of Cuba’s New President, Miguel Díaz-Canel

On April 19, Miguel Diaz-Canel officially became Cuba’s new President of the Councils of State and Ministers. Born after the Revolution in 1960, he grew up in the central province of Villa Clara, about three hours from Havana, the son of a schoolteacher and a factory worker. He studied electrical engineering at the Central University of Las Villas, where he was active in political life. After service in the Cuban military and a civilian mission to Nicaragua, he started work for the Communist Party of Cuba in 1993, and has advanced within the Party and the government to the position of First Vice President of the Councils of State and Ministers before his inauguration as President.[1]

President Díaz-Canel’s Inaugural Address

Granma, the official newspaper of the Communist Party of Cuba, had the following introduction to the inaugural address: “On the morning of April 19, a historic date . . .  [which saw] the first defeat of Yankee imperialism [at the Bay of Pigs in 1961] . . . [and which now] . . . sees the inauguration of a new [Cuban] government that makes evident the continuity of the new generations with the legacy of the historic generation that founded the Cuban Revolution in the highest leadership positions of the country, compañero Miguel Mario Díaz-Canel Bermúdez,.”[2]

Below is a photograph of Díaz-Canel giving his speech.

Díaz-Canel began by recognizing the leadership of Army General Raúl Castro, the candidate for deputy to have received the most votes in the recent general elections; as well as the Comandante of the Revolution, “who on being in this room offers us the opportunity to embrace history.”

Díaz-Canel “also referred to the ‘dark attempts to destroy us’ of those who have not been able to destroy ‘our faith.’” (Emphasis added.)

With the inauguration of this new legislature, he emphasized, the electoral process comes to its conclusion. “The Cuban people, who have massively participated throughout, are conscious of its historic importance. They have elected their representatives based on their capacity to represent their localities, without media campaigns, corruption or demagoguery. Citizens have elected humble, hard-working people as their genuine representatives, who will participate in the approval and implementation of the country’s policies. This process has contributed to the consolidation of unity in Cuba.”

On the people’s expectations about this government, he stressed that the new Council of State must continue “acting, creating and working tirelessly, in a permanent bond with its dignified people.”

He also added that if anyone wanted to see Cuba in all its composition, it would be enough to look to its National Assembly, with women occupying decisive positions in the state and the government. However, he warned, it does not matter how much we resemble the country we are, if the commitment to the present and the future of Cuba is lacking. The raison d’être of the Councils of State and Ministers is the permanent link with the population.

Díaz-Canel pointed out that during the closing of the last Party Congress [in 2016], Army General Raúl Castro Ruz made it clear that his generation would hand over the flags of the Revolution and Socialism to the younger generations. This emphasizes the importance of the crucial mandate given by the people to this legislature, and as such its work in all areas of the nation’s life must be perfected.

“I assume this responsibility with the conviction that all we revolutionaries, from any trench, will be faithful to Fidel and Raúl, the current leader of the revolutionary process,” the new President of Cuba stated. (Emphasis added.)

He then stressed that the men and women who forged the revolution “give us the keys to a new fraternity that transforms us into compañeros and compañeras,” and highlighted, as another inherited achievement, the unity that has become indestructible within the Cuban Party, that was not born from the fragmentation of others, but from those who intended to build a better country.

For that reason, he said, “Raúl remains at the forefront of the political vanguard. He remains our First Secretary, as the reference that he is for the revolutionary cause, teaching and always ready to confront imperialism, like at the start, with his rifle at the ready in the moment of combat.” (Emphasis added.)

Regarding the revolutionary and political work of the Army General, he highlighted his legacy of resistance and in the search for the continued advancement of the nation. “He put his sense of duty ahead of human pain,” he said in reference to the loss of Comandante en Jefe Fidel Castro on November 25, 2016.

Likewise, he highlighted Raúl’s grandeur as a statesman, forming a national consensus, and the manner in which he led the implementation process of the country’s social and economic guidelines. He also highlighted how he had made the return of the Five Cuban Heroes [in December 2014] a reality, so longed-for by Fidel.

Raúl has marked Cuba’s international relations with his own spirit: he directed diplomatic relations with the United States; he led the rotating presidency of CELAC; Cuba’s hosting of the Colombian peace talks; and he has been present in all regional and hemispheric summits, always defending Our America. That is the Raúl we know, Díaz-Canel stressed.

The new Cuban President also recalled how the Army General, still very young, participated in the Granma expedition, undertook the struggle in the Sierra Maestra, was promoted to Comandante, and developed government experiences that would be applied in the country after the revolutionary triumph.

I am aware of the concerns and expectations at a moment like this, but I know the strength and wisdom of the people, the leadership of the Party, the ideas of Fidel, the presence of Raúl and Machado, and knowing the popular sentiment, I state before this Assembly that compañero Raúl will head the decisions for the present and future of the nation.” (Emphasis added.)

I confirm that Cuban foreign policy will remain unchanged. Cuba will not accept conditions. The changes that are necessary will continue to be made by the Cuban people.” (Emphasis added.)

He also called for the support of all those who occupy leadership responsibilities at different levels in the nation, but, above all, of the people. “We will have to exercise an increasingly collective leadership. Strengthening the participation of the people.”

“I do not come to promise anything, as the Revolution never has in all these years. I come to fulfill the program that we have implemented with the guidelines of Socialism and the Revolution.” (Emphasis added.)

And as for the enemies of the revolutionary process, he said: “Here there is no space for a transition that ignores or destroys the work of the Revolution. We will continue moving forward without fear and without retreat; without renouncing our sovereignty, independence and development programs.”

“To those who through ignorance or bad faith doubt our commitment, we must tell them that the Revolution continues and will continue. The world has received the wrong message that the Revolution ends with its guerrillas.” (Emphasis added.)

Former President Raúl Castro’s Response

 Immediately after the inaugural address, Raúl Castro, the former President and still the General Secretary of the Communist Party of Cuba, closed the second plenary session of the National Assembly of Popular Power [Cuba’s national legislature], with the following remarks:[3] Below is a photograph of Castro during his speech.

Castro recalled the victory of Cuba during the mercenary invasion of Playa Girón [Bay of Pigs]. “That moment was of great importance, especially when Fidel declared the socialist nature of the Revolution, he said.”

“He also pointed out the opportunity of recognizing the work carried out by the electoral commissions and of candidates to all the instances, as well as of the set of institutions that collaborated for the good performance of the elections. He also congratulated the elections of the National Assembly to the State Council of the country.”

Castro  “said that Miguel Mario Díaz-Canel Bermúdez had worked as an engineer, and his work as an officer of the FAR. Then he was proposed as a professional cadre of the Union of Young Communists, from where he gradually rose to achieve his promotion as a Professional Party cadre.”

He pointed out that Díaz-Canel, during the [most acute phase of the] Special Period “was a member of the Provincial Party Committee in Villa Clara, where he spent nine years. Then he spent six years in Holguín. “He was born in Villa Clara, where he was quiet, because it was a territory he knew well; and it was after that that he was sent to one of the great provinces of the east, Holguin, as we did with more than a dozen young people, most of whom came to the Political Bureau, but who failed to be promoted. He was the only survivor.

Castro also stressed that Díaz-Canel had been a member of the Central Committee since 1991 and was promoted to the Political Bureau 15 years ago. He fulfilled a mission in Nicaragua and graduated from the National Defense College. In 2009 he was appointed Minister of Education. Five years ago he was elected First Vice President of the Councils of State and Ministers; and since then “a group of members of the Political Bureau had the feeling that we had hit the nail on the head,” referring to Díaz’s ability to assume the presidency. He was responsible in the ideological sphere of the Central Committee of the Party.

Raul pointed out that the election of Diaz-Canel is not a coincidence “because of his preparation he is the best and we know that because of his dedication he will have absolute success in the task entrusted to him by our supreme body of ‘Popular Power.” (Emphasis added.)

Comrade Díaz-Canel over the years he has demonstrated work capacity, ideological solidity and commitment to the Revolution.

The National Assembly of Popular Power has 42% new members and a female representation of 48.4%. Castro emphasized that women, young people and people of color occupy decision-making positions in the life of the nation.

“It is up to the Party, the State and the Government to fulfill and enforce, with due intentionality, the promotion of young people, women and mestizos, to posts that guarantee the renewal of the revolution.

He welcomed the ratification of the presidency of the National Assembly, and the proposal of Diaz-Canel, as allowed by the Constitution, so that the Council of Ministers will be made known at the next session of the Assembly, which will take place in July, because that it will allow for a prudent time for the movements of paintings to be made.

I will continue to serve as Second Secretary of the Central Committee of the PCC, in what is my second and last mandate, which ends in 2021, when we will complete the transfer to the new generations. From then on, I will be one more soldier with the people defending this Revolution. So that there is not the slightest doubt, I want to emphasize that the PCC, in the figure of its First Secretary, will continue supporting the [new] president.” (Emphases added.)

Regarding the new generations, he warned that one of the permanent bets of the enemy is to penetrate, confuse and alienate youth from the ideals of the work and the revolutionary culture leading them instead towards disengagement towards ethics, solidarity and the sense of duty.

Castro said that in the next constitution there will be no changes in the strategic objective of the Party, which our people will support as in 1976, when Cubans voted in favor of the current constitution with 98% support.

He pointed out that in the Plenary Session of the Central Committee held in March of this year, the economic and social status of the nation was analyzed. The new constitution has lagged behind us, he clarified, because the country’s main problems are not resolved, because the participation of the organisms from the base was not achieved for the adequate implementation of the adopted policies.

We never had any illusions that it would be a short and easy process, because its dimensions reached all sectors of society, and we had to overcome egalitarianism and its negative consequences in the national economy, he added.

In the case of the socioeconomic context of the nation, Castro assured that the experiment of the non-agricultural cooperatives will continue and with respect to the monetary duality he said that he continues to give serious headaches, as well as the need for wage reform. He also emphasized the need for a coherent communication policy. (Emphasis added.)

He also recalled the difficult circumstances in which the country’s economy had to develop, and the considerable damages caused by the intense drought of the last 3 years and the recent hurricanes that affected most of the country. (Emphasis added.)

With regard to foreign debt, he stressed that a renegotiation has been carried out, which has helped to free the new generations of a sword of Damocles and the consequent restitution of the credit prestige of the country. The Army General congratulated the Minister of Economy, Ricardo Cabrisas, on his performance in that process.

He also made a call to save resources, claiming that we usually ask for too much, so we have to plan better.

“Defend unity, resist and resist, that is the duty of revolutionaries,” he said.

Regarding foreign policy issues, said the recent Summit of the Americas  was marked by the neo-hegemonic attitude of the United States, whose commitment to the Monroe Doctrine was ratified, especially with the exclusion of Venezuela from that international event. (Emphasis added.)

It was known that they would set up a show, and Cuba went to Lima with its own right and its head high, which confirms the determination of the Cubans to defend their principles and their values. The Cuban delegation, together with that of Bolivia and other countries, prevented a single front against Venezuela. The interventions of our foreign minister, on behalf of the government and Cuban people, constituted a worthy response against the contents of the interventionist speech of the Vice President of the United States, Raul said. (Emphasis added.)

“The members of civil society defended the voice of Cuba and the peoples of America with vigor. I take this opportunity to congratulate all the members of the Cuban delegation that participated in this event, “he said.

The Army General stressed Cuba’s commitment to ALBA because we are the world’s region of greatest inequality in the distribution of wealth, and the gap between rich and poor is huge and growing despite the efforts made in the past decades, when Progressive governments pushed for policies to mitigate this evil, he said.

He rejected accusations of human rights violations in Cuba. He highlighted diplomatic relations with the European Union and the progress of ties with China. (Emphasis added.)

“In just 11 days our people will march together united by our streets and squares commemorating the International Labor Day and showing the majority support of the Cubans to the Party and its Revolution.

Conclusion

As anticipated, these comments by Díaz-Canel and Castro demonstrate a collective intention to continue Cuba’s current direction, domestically and internationally. Their mutual admiration is shown in the photograph below.

In another post we will look at U.S. reaction to the change in Cuba leadership. Some of that reaction was recorded before the actual inaugural of Díaz-Canel.

 

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[1] Ahmed & Robles, Who Is Miguel Díaz-Canel, Cuba’s New President? N.Y. Times (April 19, 2018); Cordoba, After 59 Years, a Castro Is No Longer Official Leader of Cuba, W.S.J. (April 19, 2018).

[2] Miguel Díaz-Canel: I assume this responsibility with the conviction that all the revolutionaries will be faithful to Fidel and Raúl (+Video), Granma (April 19, 2018).

[3] Raúl Castro: The Communist Party will continue to support the new President, Granma (April 19, 2018).

 

Vietnam Communist Official Advocates Economic Reforms for Cuba

                                                                                                                                      Vietnamese Communist Party General Secretary Nguyen Phu Trong, who is visited Cuba this week,  said in a lecture at Havana University,  “The market economy of its own cannot destroy socialism. But to build socialism with success it is necessary to develop a market economy in an adequate and correct way.” He added, “ With the clear vision of the [Communist Party of Cuba the island] . . .  will surely reach great achievements and successfully reach a prosperous and sustainable socialism.”[1]

Vietnam in the 1980s started to open up its centralized economy and as a result has lifted around 30 million Vietnamese out of poverty.

Interestingly Cuban media had many reports about Mr. Trong’s visit, but this blogger has not found any coverage of the above speech and its implicit criticism of Cuba’s failure to fully embrace market economic reforms.[2]

The closest it came was the report that Mr. Trong “expressed his full conviction that, guided by the decisions adopted in the VI and VII PCC Congresses, Cuba will continue to successfully implement the updating of the social and economic model of socialist development” and the statement that the two countries had an “Intergovernmental Commission for Economic and Scientific-Technical Cooperation” and exchanges on “the socio-economic models of the respective countries.”[3]

This soft pedaling of Mr. Trong’s comments contrasts with the Cuban Communist Party’s own recent admissions of mistakes in its liberalizing of the Cuban economy as discussed in a prior post.

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[1]  Reuters, In Cuba, Vietnam Communist Party Chief Advocates Economic Reforms, N.Y. Times (Mar. 29, 2018). A more complete report of Mr. Trong’s speech is contained in a Vietnamese source: General Secretary Nguyen Phu Trong received an honorary doctorate in Cuba, Zing (Mar. 30, 2018).

[2] The General Secretary of the Communist Party of Vietnam to arrive in Cuba today, Granma (Mar. 28, 2018); Ten landmarks in Cuba-Vietnam relations, Granma (Mar. 28, 2018); Peraza, Vietnam and Cjuba: Examples of what socialism can achieve, Granma (Mar. 29, 2018); Peraza, Cuba and Vietnam have the common goal of advancing in the construction of socialism, Granma (Mar. 29, 2018); Univ. Havana, He receives honorary title “Doctor Honoris Causa” in Political Science Mr. Nguyen Phu Trong (Mar. 29, 2018); Peraza, The youth of Cuba and Vietnam have the mission to keep alive the flame of brotherhood, Granma (Mar. 30, 2018); Castro, To the people, to the communist Party and to the Government of the Socialist Republic of Vietnam, our eternal gratitude, Granma (Mar. 30, 3018); Cuba and Vietnam: a brotherhood that takes hold (+ Photos), Granma (Mar. 31, 2018); Gómez, A path of success, Granma (Mar. 31, 2018). New stage of development in its historical links, Granma (Mar. 31, 2018).

[3]  New stage of development in its historical links, Granma (Mar. 31, 2018).

 

Cuba’s Communist Party Admits Errors in Liberalization of Economy 

On March 25-26 the 142-member Central Committee of the Communist Party of Cuba met to discuss the status of economic reforms during President Raúl Castro’s 10-year mandate to open up the economy with greater roles for the private sector and foreign investment.[1] Below is a photograph of the Party’s First Secretary, Raúl Castro, and to his left Miguel Diaz-Canel, the expected next President of the Cuba Council of State.

From 2012 through 2015 the reforms were implemented swiftly with the number of self-employed worked more than tripling to 580,000.

But since then implementation has slowed in the due to the complexity of the process, mistakes in oversight and low engagement of the bureaucracy. Further reforms also were hampered by economic and financial limitations. The Central Committee recognized Cuba lacked a fiscal culture and accountancy tools to make a serious economic analysis as well as difficulties communicating the complex process. This included the absence of a culture of paying taxes.

Now the Party and the Government are reviewing studies on unification of Cuba’s dual currencies and different exchange rates and the National Economic and Social Development Plan through 2030. There will be the implementation of the country’s  self-employment policy after a training process that will include some 580,000 self-employed workers and more than 30,000 public officials.

Raúl Castro said that all Communists needed to confront problems without hesitation, right away; planning more carefully to direct resources to where they are truly needed; and not waiting for solutions from above, but rather contributing creative, rational ideas.

Related to these problems of implementing economic reforms, only this year did Cuba open its first wholesale market for beans, beer, sugar, cigars and other staples for 20 to 30 percent less than the retail prices in the country. It will be open to 35 worker-owned cooperatives in Havana.

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[1]  The Party Central Committee, meeting in its Fifth Plenum, analyzed important issues related to the updating of Cuba’s socio-economic model, Granma (Mar. 27, 2018); Reuters, Cuba’s Communist Party Admits Errors, Slowdown in Reforms, N.Y. Times (Mar. 27, 2018); Assoc. Press, Cuba opens wholesale market to sell basic staples, Wash. Post (Mar. 19, 2018);  Pėrez,  Cuba expanding wholesale markets? (Granma (Feb. 6, 2018). Issues about Cuba’s economy have been addressed in the posts listed in the “Cuban Economy” section of List of Posts to dwkcommentaries–Topical: CUBA.

Raúl Castro To Remain Cuba’s President for At Least Two More Months  

On December 21, 2017, Cuba’s National Assembly determined that Raúl Castro’s term as President would be extended from February 24 to April 19. The stated reason for the extension was the delay in the start of the electoral cycle caused by Hurricane Irma.[1]

Some, however, speculate that the real reason for the extension is trying to cope with Cuba’s many economic and political problems—slower economic growth (if not decline), declining support from struggling Venezuela and increased U.S. hostility. Perhaps a clearer indication of what is happening will be provided by the March meeting of the Central Committee of Cuba’s Communist Party to discuss the results of the economic guidelines, or reforms, introduced under Castro and talk about a strategy for the coming years.[2]

Indeed, during this session of the National Assembly President Castro said, “Next year will also be complicated for the external finances of the nation, however, we will continue credibility of our economy and reiterate to the creditors the fulfillment of the agreed commitments, and we thank support and understanding for the transitory difficulties that we face.” However, Castro did say, “when the National Assembly is constituted, my second and last term [as] . . . the head of the State and the Government [will end] and Cuba will have a new president.”

Simultaneously the Cuban Government announced new regulations on the emerging private and cooperative sectors of the nation’s economy to more closely regulate the income distribution by cooperatives so that no one may earn more than three times of others in the cooperative.  This resulted from investigations revealing that in some non-agricultural cooperatives the president earned fourteen times more than the workers, that this is not a cooperative, but rather a private company and cannot be allowed.

In addition, a cooperative may operate in only one province where it has a legal domicile,  and business licenses will be limited to one per person.

Cuba’s Vice President Marino Murillo, who is also the government’s economy czar, said there will be no new approvals for the time being for non-agricultural cooperatives, while their maximum and minimum earnings will be limited to avoid the existence of de-facto private businesses.

According to Michael Bustamante, an assistant professor of Latin American history at Florida International University, these new regulations “suggest a continued slowing down, if not an undoing, of the economic reforms implemented between 2010 and 2016.”

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[1] Deputies approve extension of the mandate of the provincial assemblies and the National Assembly, Granma (Dec. 21, 2017); Raúl Castro: “Here we are and we will be; free, sovereign and independent, CubaDebate (Dec. 21, 2017); Morales, Evaluates the march of the implementation of the Guidelines, Granma (Dec. 21, 2017); Murillo, The problems we have faced in the Update are more complex and deeper than we had thought, Granma (Dec. 22, 2017); Reuters, Cuba Delays Historic Handover from Castro to New President, N.Y. times (Dec. 21, 2017); Assoc. Press, Castro Confirms He Will Stay Cuba’s President to April, N.Y. Times (Dec. 21, 2017); Londońo, Cuba Delays End of Raúl Castro’s Presidency by Two Months, N.Y. Times (Dec. 21, 2017); Whitefield & Torres, Cuban Leader Raúl Castro will stay in power past February, Miami Herald (Dec. 21, 2107).

[2] As reported in a December 1 comment to a post about Cuba’s elections, Domingo Amuchastegui, a former Cuban intelligence analyst who now lives in Miami, said, “The fatherland is in danger; it is facing very difficult economic circumstances plus the threat of aggression from a historical enemy. Facing difficult circumstances, revolutionary leaders don’t back down. These are not times to enjoy life in Varadero and spend time with the grandchildren.”