cuba: challenges and changes

7/29/2019 Cuba: Challenges and changes

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The Cuban Revolution:challenges & changes


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Cuba and its neighbours


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Cuba: an inspiring revolution

Authentic, deepgoingsocialist revolution.

Has resisted US empire.

Continually inspiring:internationalist anddemocratic.

Has shown that Stalinistdegeneration is notinevitable. Timemagazine,

January 26, 1959.


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Revolution facesbiggest challenge

Severe economic problems.

Far-reaching reforms projected.

Bureaucracy, corruption, black market.

Leadership transition.

May Day, Havana, 2010.


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US blockade

An economic, commercial and financial siege

that has lasted half a century

Cuban foreign minister Rodriguez Parrilla.


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Collapse of USSR

1991 collapse ofSoviet Union.

Cuba lost bulk of

trade and aid. Faced starvation

and collapse:Special period.

Living standardsstill not recovered.

Fidel in USSR with Sovietleader Nikita Krushchev,

June 1963.


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Natural disasters

2008: Cuba hit byhammer blows ofclimate change.

Hurricanes Ike,

Gustav and manymore.

Few lives lost but

enormouseconomic cost.

Severe ongoingdrought .

Surveying wreckage after

Hurricane Gustav.


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Nickel price collapses

Cuba has onethird of worldsproven nickelreserves.

Cubas biggest

export earner.

Crash of worldnickel price.

World nickel price: from

$52,000 per tonne in 2007 to$9000 in 2008; now back to

around $20,000.


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Development of tourism

Tourism hasdevelopedmassively in last

two decades. 2001: 1.7m visitors.

2009: 2.4m visitors.

Big earner but alsobig social costs. Havana: Cuba is a prime

tourist destination.


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Venezuela

Rise of Venezuelanrevolution crucial.

Main trade partner.

Cheap oil in return formedical and other aid.

Fibre optic cable: will

enable Cuba to breakUS internet throttle.


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Cuba-China relations growing

After Venezuela,China is maintrade partner.

Vital relationship:nickel, transport,consumer goods.

Assistance withhunt for offshoreoil.

Italian-owned, Chinese-builtoil rig will do offshore test

drilling.


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Economic situation

GDP growth ratehas fallen sharply.

Key export earnershit, imports costly.

Medical services toVenezuela vital.

Drive for food self-sufficiency (70%imported).

GDP growth has fallen

steadily from 12.3% peakin 2006 to 1.9% in 2009.


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Two-tier currency Ordinary peso and

convertible peso(CUC).

Dollars (tourists andremittances) must beexchanged for CUCs.Fees and taxes of20% levied.

Dollar shops withmuch higher prices.

Most Cuban workersare paid in pesos.

Dollar shop in Holguin.


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Daily struggle to get by

Wages and pensionsare inadequate.

The libretarationsystem is inadequate.

People are driven toextra jobs, the blackeconomy, pilferingand corruption.

Social inequality isgrowing as some arebetter placed.

Cubans queuing for rice.


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Black economy

Numerous activities, from thefairly harmless to the seriouslycriminal:

Selling homemade goodsunofficially.

Selling goods stolen fromwork.

Using work facilities forprivate gain (eg, using car

as taxi for tourists).

Bribery and corruption (eg,sale of lucrative touristsector jobs).

Black economy: a vendor

sells home-made sweetsalong Havana street.


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Raul Castro at UJC congress

to continuespending beyond ourincome is tantamount

to eating up our futureand jeopardizing thevery survival of the

revolution.

Raul at UJC congress, April 4, 2010.


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Reform plan: main points

State payrolls to be slashed:

1 million workers to be laidoff over 5 years (half by nextMarch).

Smaller state enterprises to beconverted to cooperatives.

178 occupations now open toprivate enterprise; in 83 ofthese, the owners will be able tohire non-relatives.

Agriculture: Land to those whowant it; controls loosened andsupplies more readily available.

Tax system will be revamped.

Young Cubans helpon farm.


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Reforms: aims and risks

To trim state payroll and increase productivity of statesector.

To increase economic efficiency by stimulatingpeoples self-interest.

To draw people out of black economy into open legal

sector, regulate and tax. To increase food production and reduce huge import

bill.

To make daily life less stressful by making things

easier: having services that work, food available. Need to significantly raise wages and pensions.

Risks: market will create inequality and a strongerpetty-bourgeois layer. Need to keep strong boundaries.


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Shakeup: top leaders dismissed

In March 2009, Carlos Lage Davila and FelipePerez Roque and a number of other centralleaders were dismissed from their party andstate posts for serious errors.


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Head of civil aviation sacked

In April this yearGeneral RogelioAcevedo wassacked.

Officials in civilaviation did secretdeals and pocketedthe proceeds.

Many people underinvestigation. Former Sierra Maestra

fighter and Angola veteran

Rogelio Acevedo disgraced.


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Inspection department set up

A Comptroller General's Office wascreated in August 2009 to monitor thestate apparatus and crack down oncorruption.

One of its tasks is to follow up onreports by the public.

The comptroller urged workers to

press for their right to discuss the useof public resources.


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CP expels revolutionary

Earlier this yearEsteban Moraleswas expelled from

CP after he warnedof danger ofcorruption and saidthat some Cuban

bureaucrats weregetting ready forreturn of capitalism.

Academic Esteban Morales,expert on US-Cuba relations,

50-year revolutionary.


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Dissidents a US creation

In March 2003, 75Cubans were jailedas paid US agents.

Hailed by Westernmedia as prisonersof conscience.

Most since

released.Ladies in White, relatives and

supporters of jailed Cubandissidents, demonstrate in

Havana, March 2010.


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Criminal hailed as dissident

Zapata Tamayo diedin prison in Februaryafter 83-day hunger

strike. Doctors fought to

save his life.

Western media hailedas political prisoner.

In jail for real crimes.


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CP congress put off

Last party congressheld in 1997.

Sixth congress set

for late 2009, thenpostponed. No newdate has been set.

This congress willbe last one led byhistoric leadershipof revolution.


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Transition of leadership

Revolutionarygeneration isslowly passingfrom the scene.

Process ofgenerationalchange critical.

Central leadershipteam absolutelykey.

May Day, Havana, 2007.


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Imperialists howling International capitalism will never

be reconciled to CubanRevolution.

Bush set up a transition office toplan for re-establishing

capitalism in Cuba. Imperialists think forced turn to

market will weaken therevolution and provide opening.

Always howling about humanrights never mind theabsolutely mind-blowinghypocrisy involved.

Bush set uptransition office

for Cuba.


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Revolution still fighting Tremendous

example, greatsocial gains.

Imperialists thinkthey smell blood.

The struggle willdecide, within

Cuba and abroad.

Solidarity vital.

Women inducted into armedforces, June 2008.

cuba: challenges and changes

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