Cuba's Economic Reforms
Summary:
Relevant Facts:
- 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.
February 2012
| Date | Title |
|---|---|
| 2/16/12 | Cuba Unleashes the Pent-Up Energy of Real Estate Dreams Victoria Burnett, The New York Times |
| 2/6/12 | Key political risks to watch in Cuba Jeff Franks, Reuters |
January 2012
| Date | Title |
|---|---|
| 1/30/12 | Cuban communists OK term limits for party and government officials Juan Tamayo, El Nuevo Herald |
| 1/30/12 | Lessons for Cuban business John Paul Rathbone, Financial Times |
| 1/30/12 | As Raul Castro's Communists hold conference to promote reforms, Cubans fear it is all too slow Georgia Birch, The Telegraph |
| 1/12/12 | Cuba moving some state-run cafes into private hands Marc Frank, Reuters |
| 1/10/12 | Cubans Expect Little or Nothing From Upcoming Communist Party Conference Yoani Sanchez, The Huffington Post |
| 1/9/12 | Housing market blooms in Cuban provinces Marc Frank, Reuters |
| 1/4/12 | Cuba to give citizens money to fix up, build homes AP, The Washington Post |
| 1/2/12 | Cuba stacks up the building blocks of a new economy Mimi Whitfield, The Miami Herald |
- Change Comes to Cuba: Citizen's Views on Reform after the Sixth Party Congress An October 2011 publication by Freedom House based on research conducted in June 2011, several months after the Sixth Communist Party Congress. Researchers conducted 190 in-depth interviews in six provinces in Cuba. (768.3 KBs)
- The Cuban Economy: Recent Trends A special report by the Wilson Center's Latin American program authored by Rafael Romeu, Jorge Perez-Lopez and Carmelo Mesa-Lago and edited by Jose Raul Perales. (3.6 MBs)