Cuban Economy Stagnates, Prompting Calls for Further Reforms

Some of the well-respected economists in Cuba have begun to question the core of the command economy that is being run with Soviet-style formation. Are they not about 50 years too late on this one?

Some of the well-respected economists in Cuba have begun to question the core of the command economy that is being run with Soviet-style formation. Are they not about 50 years too late on this one?

Currently, experts believe that the market reforms planned for Cuba are not enough to boost their significantly weak growth rates. Since freer debate has begun to take place within the country, economists have become increasingly vocal about their concerns regarding the rigid instructions being sent down from the government top, as well as the way those policies are being managed across the country.

In an attempt to build a sustainable and more prosperous country for Cuba, the president, Raul Castro, helped to push a 311-point reform agenda through to be adopted by the communist party in the year 2011. Since then, this reform has prompted Cuba to liberalize retail and farming services by turning the majority of them over to cooperatives, as well as allowing for small private businesses to even exist.

Castro took the mantel from his older brother in 2008, and has announced that he encourages debate within the system. The economists that are currently speaking out are mainly members of the communist party, and the evidence suggests that they have been calling for reforms for years.

The Future for the Cuban Economy

Although the reforms of Castro have helped to raise the expectations within many local Cuban households, they have generally left the country feeling disappointed. Public frustration has mounted over the years due to a lack of well-paid jobs, which has increased the amount of Cubans willing to risk illegal and dangerous journeys on home-made boats in search for opportunities within the United States. But since America’s economy has stagnated for years, even America is not as bright as it used to be.

With that said, America’s worst days have never been as horrendous as any day in Cuba. Well, when FDR significantly raised taxes on Americans in the early 30s, that was probably the worst Americans ever saw.

Some experts have compared the process of Cuba to the initial years of reform that existed within Vietnam and China, where partial measures were quickly proven to be ineffective, prompting the search for more aggressive reforms.

Sanchez Speaks Out

At this point, the Cuban government has been forced to once again revise its forecast for economic growth downwards to 1.4%. This marks the second year in a row of slowed growth within the country, a worrying result when combined with the fact that food prices continue to rise by 10% every year. Meanwhile, over 70% of the economy remains firmly within the hands of bureaucrats akin to America’s Harry Reid, usually in the form of various monopolies. Recently, an economist named Jorge Mario Sanchez launched harsh criticism against state monopolies as a way of slowing the growth of international competition and a mixed economy.

However, some experts continue to argue that the harsh economic sanctions the US have placed against Cuba are somewhat to blame for the lack of state financing they have experienced, as well as the delays in receiving parts and supplies. These issues have led to production shortages and disruptions over the years, significantly reducing the potential of Cuba to make a stand for sustainable growth.

Cuba has only Themselves to Blame

This argument is though only made by people who do not care about the political dissidents in Cuba who have been imprisoned and tortured. Cuba does not take freedom and rights for its citizens serious. Cuba could easily have those sanctions lifted when they decide to become a real country and not a government run disgrace. By even making this argument it is conceding the fact that America’s system is superior.