Cuba's Economic Reforms

Summary:

Relevant Facts:Nuevos Lineamientos
  • First draft written and approved in November 2010
  • Sixth Communist Party Congress convened in April 2011 to discuss and debate the Lineamientos.
  • Second draft written and approved in May 2011
  • 2/3 of the linemaientos were modified, integrated or eliminated in the second draft, and 36 new lineamientos were added.
  • Majority of new lineamientos were in the Macro Economics and the Agricultural Industry sections.
  • Total lineamientos in Draft I: 291
  • Total lineamientos in Draft II: 311
General Themes of the Lineamientos:
  • Increase unproductive land by 50%
  • Regain lost capital available to industry
  • Cut excessively high payrolls and restructure payroll and employment policies
  • Raise labor productivity with a combination of harsher discipline and more salary bonuses.
  • Increase exports in a wider array of products.
  • Reduce dependence on imports.
Various Initiatives:
I. Economic Management Model
  • 1: The socialist planning system will remain as the dominant strategy in Cuba.
  • 9: The creation of supply markets selling at wholesale prices, without subsidies for cooperatives, lessors, farmers and self-employed workers.
  • 22: The number of employees will be determined by the private enterprise.
II. Macroeconomic Policies
  • 56: Change taxation system in favor of a more progressive structure.
  • 62: The central authority will remain in control of price levels and structure.
VI. Social Policy
  • 162: The rations book will no longer be used as the method of distribution.
VII. Agricultural Policies
  • 172: Modify the production system to allow a more streamlined and efficient collection process.
  • 183: Develop a training program to provide education in the fields of vetinary, industrial technology, economics, administration and others.
X. Transport Policy
  • 286: Allow the sales of privately owned automobiles between individuals.
XI. Construction, Housing and Hydraulic Resource Policy
  • Allow the sales of private homes between individuals.
January 2015
Date Title
1/22/15 A Better Cuba is More Possible Than Ever
Pedro Campos, 14yMedio
1/15/15 Cuba plans higher-denomination bills as currency unification nears
Reuters
1/14/15 Miami entrepreneurs to host Cuban counterparts as part of cultural exchange
Tomas Bilbao, Knight Blog
1/13/15 Cuba moves to expand WiFi service slightly
AP, Bloomberg
1/8/15 A View From Havana on Cuban-U.S. Relations
Miriam Lieva, The Huffington Post
1/4/15 Economic reforms changing life - and dreams - for Cubans
Alan Gomez, USA Today
1/2/15 Reforming Cuba: Building the new economy
Mimi Whitefield, The Miami Herald
1/2/15 Brascuba Ready for ‘Imminent’ Cuba Currency Unification
Sabrina Valle and Anatoly Kurmanaev, Bloomberg
December 2014
Date Title
12/31/14 Cuba’s Frustrated Engineers Hold Key to Fast-Track GDP Growth
Anatoly Kurmanaev, Eric Martin and Sabrina Valle, Bloomberg News
12/30/14 Cuba’s Young Cheer Investors as the Rest Greet ‘Hero’ Spies
Anatoly Kurmanaev and Eric Martin, Washington Post-Bloomberg