Summary
-500 000 Cubans will be dismissed from state jobs in 2011
-this is to allow small, privately owned businesses to exist
-most of the year is to be spent creating a new tax structure
-one question remains; whether this is a less expensive way for government to reduce poverty or if it is meant to improve the economy over the long term
-contrary ideas between the Castro brothers
Raul may move towards State Capitalism
Fidel will likely oppose this
-This could segue into new leadership and a post-Castro era
-USA’s travel ban may be lifted for cultural, educational and academic voyages
-Brazil is a major aid-contributor for Cuba’s new co-ops and businesses
-Many possibilities and questions exist in Cuba’s future
Article Analysis
Complex
Interrelated
Economic | Social | Political |
-May cause initial job insecurity -subset of people are moving towards capitalism -Privatization means an incentive for individual success | -Potential and motivation to succeed could boost education and entrepreneurship -Reduced poverty levels will mean greater overall quality of life | -Political structure changes from socialism to state capitalism -Changes could spark relations with USA government -Differing opinions between Raul and Fidel could cause disturbance in political growth |
Controversial
How did this start? | How should it be resolved? |
High levels of poverty in Cuba have existed for years. The socialist structure of the country has sadly done little to help improve this. But it has employed hundreds of thousands of state workers for a miniscule amount of money each month. | Good things are already happening! -economic support from Venezuela -Licenses for thousands of private businesses -talk of USA allowing travel to Cuba What more could be done? -Establish a starting point for businesses: microloans for new business-owners -work for trade options with America |
My Opinion
The picture in the original article is captioned, “What would Che think?”
Before learning anything in depth about the economic state of Cuba, Che’s idea of a fair and equal Socialist Cuba seemed like a dream. ‘Vive la revolucion,’ and all that. But the whole point of his ‘revolucion’ wasn’t to create a country living in extreme poverty. It is hard to believe he envisioned an economy based on tips from tourists.
The government seems to be moving towards a model of state capitalism; a hybrid economic/political system that will allow for private businesses to succeed but will also focus strongly on social programs. This system may seem like something of a dismantling of all the ‘progress’ achieved in Cuba as of yet. But I see it as a wonderful opportunity to maintain the social priorities that make Cuba unique, but allow for the economy to grow from a one-sided government-run project into a self-sufficient and diverse system. If this reform succeeds , I believe we could see huge amounts of growth in Cuba. That is not to say I think it is any kind of miracle solution. Real, extreme poverty exists in Cuba. I think if the government is, as predicted, loosening up on its socialist principles it will attract more investment and aid from countries that previously shunned its communist regime.
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