Cuba Undergoing Silent Transition Toward A Free Market Economy
By Sherwood Ross
Cuba is undergoing a “silent transition” from socialism to a mixed economy but the U.S. hasn’t responded with diplomatic initiatives, an authority on Latin American affairs writes.
“A series of economic reforms are shrinking the size of the state-run economy and making room for a greatly expanded private sector,” says Michelle Chase, professor of Latin American history at Bloomfield (N.J.) College.
The reforms are being instituted slowly, however. Roberto Veiga Gonzalez, a progressive Catholic editor of a journal published by the Archdiocese of Havana calls the gradual transition “responsible,” but adds Cubans needs the reforms now because they can’t take the hardship any longer. Cubans are enduring hard times. Many families are already spending 80% of their income just on food.
Writing in the November 7th issue of The Nation magazine, Chase says some in the government want economic reforms modeled after China and Vietnam but others “want Cuba’s reforms to be tailored in a way that would give priority to small, worker-owned cooperatives” that are a kind of “decentralized socialism.”
Whatever the shape of the future, Raul Castro, who promised Cuba would never return to capitalism, appears to be doing just that. A year ago, Chase writes, he directed mass layoffs of government workers to trim a bloated bureaucracy and designated new areas for entrepreneurial expansion.
Since last April, Havana has granted some 330,000 licenses and the newly self-employed, known as cuentapropistas, are now allowed to hire Cubans outside of their own families. “The government’s stated goal,” Chase writes, “is to have nearly half the populace working in the private sector by 2015. For a country where nearly 90 percent of the economy was once in state hands, that will be a major about-face.”
Whereas in 1990, liberal reforms in Cuba were viewed as “a necessary evil” today, Chase explains, “the leadership actually embraces the notion of a robust private sector.” Adds Omar Everleny, a professor at the Center for the Study of the Cuban Economy at the University of Havana, “When you read the Guidelines and Raul’s speeches, you realize he’s determined to change things….he’s made the decision not to turn back.”
A key factor slowing Havana’s reforms “is undoubtedly the U.S. embargo,” Chase writes, as it has “a toxic, distorting effect on internal Cuban politics.” She explains, “Washington’s openly stated goal of destabilization and regime change creates a sense of permanent crisis, a siege mentality, in the leadership. This has long had the effect of limiting internal debate and bolstering hardliners who view any critique as a dangerous prelude to subversion.”
What’s more, by blocking American tourism, for example, “the U.S. government is in effect slowing the growth of Cuba’s private sector” where the government has opened the doors for Cuban businesses to operate.
Reviewing the past few years, Chase writes, it is apparent “a transition of sorts has already happened in Cuba. Raul Castro…and his cohort now openly embrace market reforms and have implemented measures to foster a large private sector….In addition, with the Catholic church serving as intermediary, the government recently released most political prisoners….If there has ever been a time for the US government to acknowledge internal reforms and reciprocate with increased diplomacy, that time is now.”
Americans, however, may have a long wait before Washington turns to diplomacy. The U.S. attitude has long been “do it our way (economically) or else.” Countries, including Cuba, whose rulers tried non-capitalist economic approaches, have been attacked militarily by the U.S. or its surrogates and/or destabilized by the Central Intelligence Agency. At times, the leaders of those countries were assassinated by the CIA.
America’s Founders established a policy of realism in matters of diplomacy. They held governments in power were governments the U.S. would recognize because we needed to treat with them, whether we liked them or not. Modern presidents trampled this common-sense approach for years by not recognizing Soviet Russia and Communist China. And they are still withholding it from Cuba. The authors of the Constitution might well be appalled if they knew the CIA backed the Bay of Pigs invasion in 1961, tried to poison the Cuban sugar crop and wreak other calamities on the country, and made at least eight attempts on the life of Fidel Castro.
With Fidel out of power and his more rational brother in charge, now is the time for the U.S. to open talks leading to improved U.S. relations with Cuba, as well as full liberties and economic opportunities for the Cuban people.
Sherwood Ross, who formerly reported for major dailies and wire services, is director of the Anti-War News Service. Reach him at sherwood10@gmail.com.
Short URL: http://www.veteranstoday.com/?p=156289
Posted by Sherwood Ross on Oct 30 2011, Filed under Of Interest. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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Sherwood Ross, This is interesting and looks like a plus for the Cuban People.
I don’t disagree or dispute any part of your article or its accuracy.
Over the last 30-40 years the interpretation & use of numerous terms like
“Free Trade” , “Free Markets” , “Free Market Economy” , “Free Market Economics” ,
“Removing Barriers to trade” etc. , etc. have been frequently mis-used ,
misconstrued often purposely.
The use of the word ‘Free’ is a word I associate as a positive for Individuals,Famillies,Neighborhoods,Communities,etc.
Not the same as Multi-National Corporations being ‘Free’ to impose their will & agenda
on to,at any or all possible Geographical Locations with the local populations/Communities
considered as simply an obstacle to be handled by P.R./Lobby Corporate Mercs by
purchasing/threatening/terrorizing/eliminating any Competent Organic Political Leadership.
For the benefit of Americans & Cubans it would be best if the Scenario did not follow along with
what went on with USA/Mexico & NAFTA. Multi-National Corporations exporting manufacturing etc.
to Northern Mexico & trashing/dumping waste (for more profits!!) , etc.
Then shifting a very large chunk of New Industry to China,etc. leaving behind a huge mess &
poisoned water/fields/valleys, etc. , The inferior conditions that were left behind helped to increase
‘profit’ for the Multi-National Corporations BY SHIFTING THAT EXPENSE/DEPRECIATION ONTO EVERYBODY ELSE!!!!!!
MONSANTO imposing its WILL on the Mexican People(s)
(THEY BRIBED/PAYED/PURCHASED/BLACKMAILED/TERRORIZED/THREATENED/ELIMINATED
enough Political Opposition/any Opposition
The Whole Circus of Heroin/Cocaine/Hemp Price Support with numerous/abundant
factions in Mexico/USA/etc. Some Gov,Some Corp, Some Both, just tearing a buzz Saw
thru large areas of Mexico/USA.
Looking at the whole ‘War On Drugs’, one of the greatest examples of destructive social engineering
WITH SO MANY PROFITS to be made thru the whole Economic/business cycle of the Artificial
Totalitarian Babylonian Bureaucracy with the carefully applied social engineering as the greatest but longer term ‘Profit’ I would hope CUBA could escape that or render it powerless.
If some stranger tries to give your kid poison, how do you respond??
No,we don’t need a $150 BIllion a year plus to deal with that.
Same with Cocaine or Heroin or the Gardasil vaccine
Don’t mess with other Families Children or else
That is a lot easier than locking down the ENTIRE NATION IN A CONTROL FREAK POLICE STATE
TAVISTOCK FANTASY ON CRYSTAL-METH!!!!!!!!!
CUBA might consider allowing free windshield & tire check with every Plane that lands
and can prove they have at least one gram of heroin,cocaine,hemp,etc.
With bleachers & a spotlight & web cams galore!!!!!!!!!!
If you drive/steer something powered while on anything stronger than caffeine & hurt somebody
then you are responsible for that,etc.
There, we can save $150 Billion the first Year,
YES WE KNOW THE CORPORATIONS & JUDICIAL BANANA PEEL CHIMPANZEE FASCIST JACKASS ATTORNEYS/LEGAL INDUSTRY WILL FIGHT IT ALL THE WAY,
GARDASIL VACCINES ARE MANDATORY & INDUSTRIAL HEMP IS ILLEGAL
“FAST & FURIOUS” DHS/ATF JUST TRYING TO GET A LITTLE MORE OF THE ACTION
MUST SEE!!! The Henry Jackson Society: Project for democratic Geopolitics and the Brittish-Israel World Domination Project http://thenakedfacts.blogspot.com/2011/10/vianavid-nasr-what-is-henry-jackson.html (1940 CONGRESSIONAL RECORD)
http://americanmarijuana.org/pot.shrinks.tumors.html
Something we are going to need thanks to GE & the rest of the
whole Fukushima /Cargo switch Gang
TO CUBANS EVERYWHERE,

YOU KNOW THAT YOU KNOW YOU WERE BORN WITH CERTAIN INALIENABLE RIGHTS,
KEEP OUT THE CORPORATE CARTELS,
AND CUBANS DID IT THERE WAY!!!!!!!!!!
REFORMS FOR EASIEST CLASSICAL PROSPERITY
A CUBAN NATIONAL BANK OWNED/RUN/CONTROLLED/STAFFED/
BY CUBANS
Dear Cubans:
Interest on loans should remain punishable by death. The experiment to allow it room to breathe has failed several times. Make sure your politicians stay civil servants and never become celebrities.
The people must always have the power to call for an absolution of the government by vote. The military is to be ruled by the people.
Form 5 State TV channels and allow the rest to be private. Force your journalists to get accreditation. Enforce a system that punishes those who refuse to uphold and preserve the sanctity of accountability. No speech must be censored. The people should be educated to question what they read.
Experiment with a system that preserves your independence and sovereignty professionally, such that there are no willing dissenters to have to thwart. Make the principles of the state larger than the people in it and transcend boundaries.
~PA
QUOTE
A key factor slowing Havana’s reforms “is undoubtedly the U.S. embargo,” Chase writes, as it has “a toxic, distorting effect on internal Cuban politics.” She explains, “Washington’s openly stated goal of destabilization and regime change creates a sense of permanent crisis, a siege mentality, in the leadership. This has long had the effect of limiting internal debate and bolstering hardliners who view any critique as a dangerous prelude to subversion.”
What’s more, by blocking American tourism, for example, “the U.S. government is in effect slowing the growth of Cuba’s private sector” where the government has opened the doors for Cuban businesses to operate.
/ENDQUOTE
This is the biggest boatload of crap I’ve ever heard. Cuba gets TONS of tourism from Europe and even Mexico and Central America as well as oil from Chavez in Venezuela. The singlehandedly most TOXIC effect on the Cuban economy is the government’s oppression of its own people coupled with their own failed economic policies. Families are spending 80% of their income on food alone and now they want an easy influx of US dollars to bail them out of the sh!t policy that they’ve created for themselves. Utter tripe…
Havana will have to fix more than just its economic policy before Washington decides to do business with them. Give the people free press and free elections, set political prisoners free, quit blaming their failures on the embargo and maybe then they can have the precious US dollars they so eagerly covet (weren’t they the ones who said they didn’t need the US for anything?). This is not about opening up the country to mega-corporations so we can set up a McDonald’s on every corner in Cuba. It’s about denying resources to a government that continues to oppress its own people. The only reason reforms are in place now is that the population is nearing starvation, not because they have “seen the error of their ways.” It’s a last resort at preventing an uprising the likes of which have been sweeping the rest of the world. Cubans may be isolated, but sooner or later word of global protests against oppressive regimes will reach and inspire them if they haven’t already. Wake up and smell what you’re shoveling…