DDC FORUM: ‘It is the political system model that is hindering Cuba’s development and the beginning of its recovery.’  

In this panel for the DDC Forum, the participants were Edel Gonzalez Jimenez (Diario de Cuba lawyer). Mauricio de Miranda (economist, Pontifical University of Cali), Hilda Landrove (researcher, Cuba Debate), Vidal Romero (Political scientist, Autonomos Technological Institute of Mexico) and Ricardo Torres Perez (American University, U.S.).[1]

Edel Gonzalez: Law is an instrument of domination in Cuba.

On the island, “the exercise of law is framed within the defense of the Castro model and is aimed at restricting the participation of citizens. Law is an instrument of domination in Cuba. The law in Cuba is inconsistent with international standards, and a false façade of a socialist state of law remains on the island. International human rights standards are not harmonized with domestic laws.”

“Under current laws, no fundamental transformation can be considered in Cuba. All legal avenues are closed, which is why constituent power, which lies with the people, is essential.”

“There is an urgent need to fundamentally change Articles 4, 5 and 129 of the Constitution, which are the ones that legally prevent the development of a democratic system in Cuba.”

Mauricio de Miranda: Prosperity will only be possible with the democratization of the country.”

“If the crisis were an opportunity, the Cuban economy has been in crisis for 33 years, 33 years of opportunities, and it has not changed.” This crisis “has brought with it a migratory hemorrhage, as well as a significant increase in poverty.”

“The government is unable to guarantee basic means of living and the crisis affects the most vulnerable groups, particularly the elderly, who suffer the harshest consequences.”

“Cuba depends on its external sector and this shows a clear sign of deterioration.”

“Cuban institutions can be clearly classified as extractivist, but the orange can only be squeezed so much. Cuba has destroyed its productive sector, the industry is stagnant and this is a direct consequence of the above. If it is true that without sugar there is no country, then today we have no country, because there is no sugar. In addition, tourism in Cuba is in sharp decline.”

“There is a predominance of dogmatic conceptions regarding socialism among a significant part of decision-makers, in addition to the inefficiency and immobility of the institutional system.”

“Why are the necessary measures not being adopted? Because they imply a transfer of power. It is the model of the political system that is holding back Cuba’s development and the beginning of the country’s recovery.”

“Prosperity will only be possible with the democratization of the country.”

Hilda Landrove: “Organizational and participatory capacity can also circulate through solidarity networks.”

“We are in a situation in Cuba where the near collapse of the economic system is combined with a reinforced repressive system.”

“The closure of political opportunities is accompanied by an economy that has nothing to offer to improve people’s lives.”

“Food insecurity, health problems and gender violence are some of the main problems facing women in Cuba today, and they are particularly marked among women who openly express their political activism.”

Since 11J, demonstrations in Cuba have not stopped occurring, even if they are of a minor scale, and women are protagonists in supporting them.”

“Mothers and relatives of political prisoners are facing constant repression.”

“That is why creating support networks is essential, because through these same solidarity networks also circulate the organizational and participatory capacity in Cuba.”

The politicization of the social struggle, which is not about ideologization, is what can allow us to create something that is fundamental, which is the feeling of possibility. Therefore, we are faced with the need and urgency of creating possible routes to move towards a better country.”

Vidal Romero,”The Cuban economy has generated too many black markets, which create criminal networks.”

“Normal countries report homicide rates every year, Cuba does not. It is a regime that is sustained by a lot of mechanisms and also by masking reality, especially citizen insecurity and drugs, which have increased in recent years.”

“The Cuban economy has generated too many black markets, which create criminal networks, which are used to traffic anything.”

“Corruption is very important in the government, and in a country like Cuba, criminal networks cannot be explained without the fact that figures in power are linked to them.”

“In the toughest autocracies there is a lot of order, just as there is order in the best democracies, but Cuba is neither one thing nor the other and that is where the disorder comes from.”

Ricardo Torres, “No stagnant economy can generate resources to recapitalize the energy system.”

“Electricity generation in Cuba depends on fossil fuels, more than half of which are imported, but Cuba does not have the capacity to pay for them on a stable basis.”

“With regard to renewable energy sources, it is significant that we are raising this issue now, when Cuba has lost one of its main sectors, the sugar industry, which would also be useful for energy generation.”

“Most of the equipment used to generate electricity in Cuba has been in operation for many years, and this, combined with the poor quality of the oil they use, creates a complex situation.”

“Energy infrastructure is expensive and no stagnant economy can generate the resources to recapitalize the system. Such recapitalization would require at least between eight and ten billion dollars spread over ten years. But Cuba does not generate such resources nor is it attractive to foreign investors.”

“Without energy there is no country, there is no point in investing in other sectors if there is no energy infrastructure to support it, but the entire energy issue is linked to the change in the Cuban economic system.===========================

[1] DDC FORUM: ‘It is the political system model that is hindering Cuba’s development and the beginning of its recovery,’ Diario de Cuba (Oct. 24, 2024).

Cuba Imposes New Restrictions on the Private Sector

On August 30, Cuba announced, effective November 1, new regulations on non-agricultural cooperatives (CNAs), which the government still regards as “experimental” seven years after their first authorization. A Cuban economist, Oscar Fernández, says it cannot be an experimental if, as here, there are no stated objectives and indicators to measure compliance.[1]

According to official data, there are more than 400 CNAs functioning across the island with over 17,000 members, mostly in the sectors of gastronomy (151), trade (81), construction (59) and industry (34). This total compares with the initial 126 in 2012. However, approval rates have declined since 2015, and only two new ones were authorized in 2018.

The changes freeze the creation of new CNAs, the government says, in order to concentrate on consolidation of existing ones. In addition, although the government states that, going forward, prices charged by CNAs will be determined by the market (supply and demand), the government is given control mechanisms over the prices that such  cooperatives can charge for some goods and services and pay their directors, and it establishes limits to the number of partners they can have.

The new regulations also limit construction cooperatives to the provincial level but allow other types of service to be offered nationally, such as the repairing and restoration of machines for textile production, technology equipment, weighing equipment, equipment for refrigeration and climate control, and aluminum carpentry equipment.

The new regulations are intended to cutdown on “irregularities,” such as hiring excess employees and conducting activities outside a cooperative’s mandate. Some economists suggest that through these changes indicates the government’s intent to assert more control over the island’s growing private sector. Other economists criticized the government for ignoring the context in which these cooperatives have developed — with limited legal frameworks and an unsteady economy — that has caused some of the “irregularities” cited by the new regulations. Others suggest  this could be an experiment to establish alternatives to small and mid-size enterprises in Cuba, which are not yet legal in Cuba.

According to Professor Ricardo Torres, the full development of CNAs will happen only “when the great imbalances of the Cuban model are noticeably reduced, there is a transparent legal framework, the playing field is leveled for all productive actors and the absurd restrictions are eliminated.”

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[1] Reuters, Cuba Unveils Tighter Rules on Cooperatives in Clampdown on Non-State Sector, N.Y. Times (Aug. 30, 2019); The Government suspends the creation of new non-agricultural cooperatives, Diario de Cuba (Aug. 31, 2019); Control over non-agricultural cooperatives increases, Diario de Cuba (Sept. 2, 2019); Rojas, Economies designed for control do not produce development, Progreso Semanal (Sept. 5, 2019); Castro Morales, Legislation governing non-agricultural cooperatives updated, Granma (Sept. 10, 2019).