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.
August 2015
Date Title
8/21/15 A Breakout Year for Cuban Entrepreneurs
Indira Lakshmanan, Bloomberg
8/13/15 Challenges Posed by Cuba’s Labyrinthian System of Imports
Omar Everleny Perez Villanueva, From the Island
8/11/15 Cuba’s tourism boom leaves some worrying they’ll be left out
Andrea Rodriguez, AP
8/10/15 Under the radar, advertising returns to Cuba
Nora Gamez Torres, El Nuevo Herald
8/9/15 In Cuba, a challenge for people running their own businesses
Mimi Whitefield, The Miami Herald
July 2015
Date Title
7/28/15 Kellogg-CSG Study Analyzes Purchasing Challenges and Opportunities for Cuban Entrepreneurs Files
Cuba Study Group
7/19/15 Hope takes over Havana
James Williams and Ricardo Herrero, The Miami Herald
7/6/15 Cuban entrepreneur builds a business on classic American cars
Mimi Whitefield, The Miami Herald
7/3/15 Cuba opens WiFi hotspots across country
Adam Justice, International Business Times
June 2015