Cuba has undergone a gradual process of change since Raúl Castro assumed the presidency of the country in 2008. Only three years after this fact, pcc held a Congress to discuss paths that the island should follow to boost its economy. It is worth remembering that in the 1990s the Caribbean nation had gone through The Special Period, shortly after the end of real socialism in Eastern Europe and the disintegration of the Soviet Union (let us not forget that 85% of imports and 80% of exports were linked to those countries). The reconfiguration of its international market and the enduring struggle against the United States embargo directly impacted the Gross Domestic Product of the island, which suffered a 35% decrease between 1989 and 1993âyear in which the fiscal deficit reached 33% of gdpâwhen imports dropped 75%. In 1992, a series of measures were taken as attempts to solve the complicated financial situation, restructuring state bodies (with parallel recognition of mixed ownership); however, even so, it was not enough for the country to overcome its economic fragility. Legalizing possession and use of foreign currency, accessing remittance from abroad, opening to foreign investment, and creating tariffs for non-essential goods and services as well as a new tax system were some of the elements that distinguish this moment. With the need to expand food production, many of the state farms were transformed into the so-called ubpc (Unidad Básica de Producción Cooperativa or Basic Units of Cooperative Production). Positions in the state-related sector declined and self-employment emerged. Then the cuc (Peso Cubano Convertible or Cuban Convertible Peso) was launched, and a greater decentralization of companies then set the tone for the momentâthe Corporate Improvement System (Sistema de Perfeccionamento Empresarial), developed by the Armed Forces, for example, appeared at the end of that decade
The fact is, until 2009 gdp increased 4.7%. In the first decade of the 21st century, bilateral diplomatic and economic agreements (such as those with Venezuela, for example) helped strengthen the domestic scenario (in 2006, gdp increased 12.2%). Several investment programs focused on energy production and consumption, modernization of transportation, an attempt to increase agricultural production while also aiming to reduce imports, and development of the housing sector (in spite of that, growth rate decreased to 7.3% in 2007 and to 4.1% in 2008).
Although several mechanisms were tried, more needed to be done. Adjustments had to be implemented to avoid underutilization and poor management of the productive sector (only half of the arable land on the island was used and housing shortage was significant; in addition, 70% of the food
Cuba currently has trade relations with 75 nations (in 2013, trade between Brazil and Cuba added up to US$ 642.8 million, being Brazilian exports equivalent to US$ 528.2 million; Brazilian investments in Mariel Special Development Zone, on the other hand, is a clear example of mutual interest between the two governments). gdp in Cuba grew on average nearly 5% in the last five years. The island imports around US$ 6.5 billion of products per year; and foreign investment amounts to US$ 500 million (this number could potentially rise significantly in the next decade). Most food, however, is still imported, while internet, telecommunications and service infrastructure certainly needs improvement.
Industrial productivity on the island, in turn, is 50% lower than in the 1980s. Decentralization in management, therefore, remains one of Cubansâ preferred initiatives in this new phase. And it conveys greater overall efficiency. That means, therefore, giving companies greater decision-making autonomy, increasing their competitiveness, expanding the power of municipalities, establishing cooperatives and improving the environment for the cuentapropistas, who are currently nearly half a million individuals, 26% of the total amount in the country. In agriculture, the plan is for the state to be responsible for only 20% of the land, while the rest belongs to the private sector. A tax system that places greater emphasis on tax collection should also be gradually implemented.
The United Statesâ recent rapprochement with Cuba marks a new moment, reestablishing diplomatic ties and bilateral negotiations in different areas. Americans are certainly eyeing this market.
While the Cuban process has often been analyzed from a journalistic or theoretical political perspective, Vasconcelos carries out a study focused primarily on addressing the agrarian issue after the revolution, an essential topic to understand the history of Cuba and which significantly contributes to elucidating the paths of Cuban agriculture today. In this sense, she follows in the footsteps of scholars such as Sergio Aranda, David Barkin, Jacques Chonchol, René Dumont, Michel Gutelman, Oscar Zanetti Lecuona, Fernando Charadán López, and Juan Valdés Paz, among others. In this book (originally her masterâs thesis at Unicamp), she depicts the agrarian structure in Cuba before and after the revolution and transformations taken place between 1958 and 1970, as well as possible contradictions in the development project of the revolution over the years. Property and labor regime, international economic order, technological and financial dependency, and development strategy are subjects discussed by the author, who skillfully reconstructs the trajectory of the relationship between the sugar and agricultural industries, along with the social situation in the countryside. According to Vasconcelos, âthe sugar paradox lies precisely in the fact that Cuba sought to build a new society (with new purposes for the use of surplus) through means inherited from underdevelopment (basically sugar economy).â From the First Agrarian Reform to the mobilization of all productive forces to reach the production goal of ten million tonnes of sugar in 1970, the author details the vicissitudes and characteristics of the Cuban development model. This is, therefore, a fundamental book for understanding the trajectory of Cuban agrarian economy yesterday and today.
Luiz Bernardo Pericás
Professor of Contemporary History
Universidade de São Paulo (usp), BrazilJanuary 2016