Monday, July 7, Havana Cuba
Trip Start
Jun 24, 2008
1
7
14
Trip End
Jul 14, 2008
Havana, Cuba,
Cuba
Tuesday, July 8, 2008
After that, we went to the Casa de la Amistad, (Friendship Center) and had our choice of attending one of three lectures-- economic development of the country, the Cuban electoral system and the recent elections and their impact on the population, and religion and the Revolution (homage to Reverend Martin Luther King). I went to one about the economic development of Cuba. It was quite informative. It was presented by Nilia Conso. She began with a brief history of its economic development beginning with the later half of the 19th century, and continuing through the 20th century until today. My notes from it follow today's entry.
After lunch there was a meeting of solidarity about the Cuban Five for both the Caravanistas and people who came with the Venceremos Brigade at the José Martí National Library. Roberto Gonzalez, brother of René Gonzalez, one of the Cuban Five, was part of the panel. It too was quite informative, especially for those who are unfamiliar with the case of the Five.
Notes from lecture about the economic development of Cuba presented by Nilia Conso
7-7-08, 10 a.m., Casa de las Américas
Cuban economy today
during the 2nd half of the 19th century, the 40s and 50s, it was still a colony
imperialist domination is already seen
War of Independence from Spain, the Cuban economy was destroyed
bear in mind it had only one product-sugar
Cuba was a destroyed agricultural country
sugar production continued into the 20th century and remains
1902 opens up to foreign investment
and in presence of capital from US consolidated ?
Cuba only sold sugar, tobacco and nickel. Many products from the U.S. were sold in Cuba.
When the Revolution comes in 1959, the economy depended on products from the US, dependent on old sugar plantations and nickel
in 1959 all rules and laws changed
1959-1961-great nationalization takes place, people were paid
the owners from other countries took the payments, but not the US
owners started leaving with their knowledge
Cuba not only had to face the situation but train people
doesn't have a main economic partner
US punished Cuba for taking this action
took more sugar production from other countries
Cuba had to reorganize land, became big state enterprises
agricultural reform laws took place, workers were given land; still mainly agricultural country, mainly sugar, tobacco, and citrus
looked for new economic partner, Soviet Union
it set the trend for development
Soviet Union, main supplier for machinery, training, etc.
have also to set context for 1960-61 Literacy Campaign, did not solve lack of technicians and professional expertise
1970-80 extensive industrialization requires high levels of energy
same time industrialization took place
1976 new system of government took place, more provinces, organization
subdivided into small provinces allowed a more efficient form of government.
Also remember, 1980s signs of difficulties in the economy
to ensure everybody had a good form of life
Productivity diminished, people lost incentive to produce, caused projects to develop taking 5-10 years longer
1985-CP made an assessment of the economy.
Entire series of measures were taken to improve the negative systems
1989 changes hadn't been made, and when the USSR collapsed Cuba had a bad situation
Cuba couldn't produce enough food
technology could not produce enough oil and had to import it
1989 sees GDP fall 35%. 11 million people, didn't have enough resources
workers sent home with 60% of salaries
means lot of currency couldn't buy anything
State began to access what to do without limiting social attainments, health, education, culture, and sports, all free
factories closed, not schools or hospitals
what to do?
after 1990 Cuba has good human capital, going to be used in different way
tourism and technology seen as steps
tourism because of climate
technology because we had developed professional capacity
development of health system had allowed biotechnology
1994-95, entire series of important measures take place allowing foreign investment
allowing foreign exchange by population
expanding private work
reorganizing banking system
reorganize state apparatus, merge of some ministries had great impact
increase source of employment for state
stopped fall of GDP
1996-97 saw increase of raw materials
we have system with two currencies
taxes arrived
all this allowed Cuban economy
2005-economy grew
growth in 2006
construct fishing education trade and began professional services, these were in health and sports
this means countries start contracting with these services
maintains solidarity in those areas in other countries
intellectual capital is also used as a sample of what they can do
an area of biotechnology is gaining prestige
Cuba needs more
in social indicators we are in line with developed countries
but we are still an underdeveloped country, due to amounts of imports, including oil
most important challenges is inserting ourselves into the international economy and satisfying the population without setting aside socialist development
questions
2006-46% of the GDP were for professional services
how to change to one currency?
very difficult, increase not related to salary, many remittances, doesn't stimulate person to work for salary
Recent Reforms
doesn't perceive these as reforms
an economist does not radically solve an problems
Cuba has never produced sufficient food, had to import
would have to give technology to farmer's and reduce workers
work is a right, not obligatory
many unemployed contribute to undisciplined and illegal activities
