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.
April 2015
Date Title
4/23/15 Cuba’s Financial System: evolution and challenges given the expansion of the private sector Files
Jessica León Mundul, From the Island
4/20/15 Cuba slowly begins to rejoin the global financial system
Mimi Whitefield, The Miami Herald
4/8/15 Cubans Eager for More Clarity on Doing Business With U.S.
Randal Archibold, The New York Times
4/6/15 Is Cuba ready for the business boom?
Georgia Birch, Telegraph
4/1/15 Cuba: Foreign Investment and Salaries Files
Julio A. Diaz Vazquez, From the Island
March 2015