Over the last 10 years Cuba has undergone transcendental changes which have impacted the socio-economic life of the country. Although these transformations have not occurred at the pace hoped for – nor have the results expected over the short term been obtained – what has been achieved thus far has irrevocably placed Cuba on a complex path of restructuring.
In the midst of a turbulent international context, marked by a tightening of the blockade, the reestablishment of relations followed by a reversal of this process, ongoing financial tensions and even natural disasters, Cuba has continued the irreversible process of updating its economic model and redesigning its development strategies, from within and with the participation of all.
Under the firm leadership of Army General Raúl Castro Ruz, policies and legal regulations have been gradually developed to improve structures and mechanisms, effectively implementing the Guidelines approved during the Sixth and Seventh Party Congresses, to make the national project sovereignly chosen by the people of Cuba more prosperous and sustainable.
Rául himself stated, now is the time to undertake the most complex changes within this process. For example, theelimination of the dual currency and exchange rate, work on which began in 2013, “constitutes the most decisive step to advance in the updating of the economic model, due to the impact that it will have in all spheres of the economic and social endeavors of the nation.Without solving this, it is difficult to advance correctly.”
However, the pace of change cannot be determined by the urgency of the situation. The updating process, in regards to legislation and courses of action already underway, remains a challenge.
2008
THE AWARDING OF IDLE LAND IN USUFRUCT
In order to guarantee the sustainability of agriculture on the island, Decree-Law No. 259 for the awarding of lands in usufruct was issued to ensure that the greatest amount of idle land was being cultivated, as well as prevent unproductive use of the land and damage to its agricultural productivity.
In 2012, this legislation was replaced by Decree-Law No. 300 which was then amended to Decree-Law No. 311 in 2014, in order to make certain procedures more flexible.
In 2017, the Council of Ministers approved further modifications to the policy for the awarding of idle state land in usufruct.
From 2008 through September 2016, 1,917,000 hectares – or 31% of the country’s arable land – have been parceled out.
2009
CREATION OF A COMPTROLLER GENERAL’S OFFICE
This year was marked by the creation of the Comptroller General of the Republic of Cuba, a state body to replace the Ministry of Auditing and Control and support the National Assembly and Council of State fulfill their constitutional responsibility to audit all state and government organizations.
The institution plays a vital role in improving order, economic discipline, internal control, and tackling all forms of corruption, as well as the causes and conditions which lead to negligence and criminal behavior by managers or employees.
2010
EXPANSION OF SELF-EMPLOYED SECTOR
Approved is Resolution No. 32 of the Executive Committee of the Council of Ministers to expand self-employment and make related processes more flexible. Today, more than half a million workers on the island are linked to this activity which, among its achievements and imperfections, has revitalized certain forms of employment and increased availability of satisfactory goods and services.
2011
CREATION OF ARTEMISA & MAYABEQUE
In January 2011, the provinces of Artemisa and Mayabeque were created with profound transformations to government structures.
By mid-2012 the process to separate the leadership of administration councils from that of Provincial and Municipal Assemblies of People’s Power was already underway.
POLICY GUIDELINES APPROVED
The Sixth Party Congress also took place that year, during which the Economic and Social Policy Guidelines were approved, following a broad process of popular consultation. Since then, efforts have been focused on effectively implementing the guidelines.
THE TRANSFER OF HOMES AND VEHICLES BETWEEN INDIVIDUALS
The issuing of Decree-Law No. 288, an amendment to the Housing Law, relaxed regulations linked to the transfer of dwellings between individuals; either via donation, sale-purchase, or exchange.
Other regulations emitted in 2017 established a complementary price guide to determine tax-rates.
Meanwhile Decree 292 of the Council of Ministers authorized the transfer of vehicle ownership between individuals in the form of sale-purchase or donation.
CREDIT & LOAN POLICY
In order to provide the non-state sector with banking support, as part of the updating of the Cuban economic model, Decree-Law No. 289 related to credits and other baking services available to individuals, as well as other complementary regulations, was approved.
2012
NON-AGRICULTURAL COOPERATIVES
With the aim of freeing the state of responsibility for economic activities that are not essential to the country’s development, Decree-Law No. 305 relating to non-agricultural cooperatives was introduced. The legislation established – on an experimental basis –norms regulating the establishment, functioning, and liquidation of such forms of management. There are currently over 400 non-agricultural cooperatives in Cuba.
SUBSIDIES
The approval of the policy granting subsides to low-income persons to help with construction and repair of their homes, is a reflection of the humanist essence of the Revolution.
In 2013 other regulations broadening the scope of benefits were issued, while new norms were approved in 2017 intended to perfect the policy.
MIGRATION POLICY UPDATED
Cuba updated its migration policy and law to be more in line with current circumstances, while maintaining measures to safeguard human capital created by the Revolution from the so-called “brain drain.”
Other regulations providing continuity to this updating process entered into effect in early 2018.
2013
IMPROVING SOCIALIST SATE ENTERPRISES
The socialist state enterprise underwent important changes designed to strengthen its role within the country’s economic model by separating state functions from those of entities.
Modifications were made to the relation of enterprises to the central budget, allowing entities to keep up to 50% of earnings after tax, while the social objectives and definition of state responsibilities were also made more flexible.
In 2017 further regulations were approved in order to give state enterprises greater autonomy.
CREATION OF THE MARIEL SPECIAL DEVELOPMENT ZONE
The Council of State approved the creation of the Mariel Special Development Zone which, as it approaches its fifth anniversary, continues to be consolidated as a burgeoning platform and regional reference for foreign and national investment.
NEW WAGE POLICY FOR ATHLETES, COACHES, & SPORTS SPECIALISTS
This policy is aimed at improving sports, generating revenue, increasing the quality and rigor of athletes in competitions, gradually raising wages and ensuring that salaries reflect work done. This will be seen most acutely when it comes to obtaining competitive results.
TIMEFRAME FOR THE ELIMINATION OF DUAL CURRENCY AND EXCHANGE SYSTEM APPROVED
The Council of Ministers agreed to establish a timeframe during which measures leading the eventual elimination of the dual currency and exchange system would be implemented. This process is vital to restoring the value of the Cuban Peso (CUP) and its monetary functions.
In order to establish the necessary conditions to increase efficiency, better measure economic activity and stimulate sectors which produce goods and services to replace imports or for export, the main changes to the dual currency and exchange system, in the first stage, will affect corporate entities.
Intense work continues to date to eliminate this distortionary system once and for all.
2014
NEW FORMS OF MANAGEMENT FOR PASSENGER TRANSPORTATION
New forms of management for passenger transportation begin to be implemented nationwide, following an experiment which was conducted across three taxi agencies starting in 2010.
Since then other measures geared toward improving transport services for the population have been adopted.
PAY RAISE FOR HEALTH SECTOR WORKERS
The Council of Ministers approved a pay raise for over 440,000 healthcare workers, in order to improve the stability and quality of medical services for the population.
WAGES LINKED TO RESULTS
Resolution 17 of the Ministry of Labor and Social Security, linking wages to results in the state enterprise sector, eliminated administrative limits on wages, in a sense reaffirming the Marxist concept: “From each according to his ability, to each according to his work.” In 2016 Resolution 6 was applied in order to rectify issues that had arisen following the implementation of Resolution 17.
RENEWABLE ENERGY DEVELOPMENT POLICY
The policy for the long-term development of renewable energy sources and efficient use of energy was approved. Its main objective is to transform the country’s profile by increasing the use of renewable energy, which currently accounts for only 4.65% of power production.
Renewable energy is also a priority sector for foreign investment.
UNIVERSITY MERGER EXPERIMENT IMPLEMENTED NATIONWIDE
A policy merging higher education institutions was approved by the Council of Ministers. The plan was first implemented on an experimental basis in the provinces of Artemisa, Mayabeque and Isle of Youth Special Municipality starting in the 2012-2013 academic year. The initiative is aimed at improving the teaching process and management of higher learning centers by ensuring more rational and efficient use of available resources.
DEMOGRAPHICS POLICY
Given its impact on the social, economic and daily life of the population, addressing the country’s demographic trends is one of Cuba’s greatest challenges.
The key aims of the policy include raising birth rates, attending to the needs of the country’s ever growing elderly population, as well as promoting employment for those who are able to work.
RESTRUCTURING ENTITIES DEDICATED TO SCIENCE TECHNOLOGY, AND INNOVATION
The policy focuses on increasing the impact of science on the economy, society and the environment for national development by increasingly linking scientific potential to entities dedicated to the production of goods and services.
2015
AGREEMENT REACHED WITH PARIS CLUB AD-HOC GROUP
From an economic point of view, the agreement reached in the French capital between Cuba and the group of 14 creditor nations which make up the Paris Club Ad-Hoc Group, was highly significant for the island.
Fulfilling our commitments and not taking on new debt that we are unable to pay within the established timeframe, has been a top priority for the country.
REORDERING OF PUBLIC CIVIL REGISTRIES, NATIONAL LAND USE RECORDS, AND SPECIAL REGULATIONS
With the goal of restructuring various sectors and avoiding legislative dispersion affecting specific activities, developed were Decree-Law No. 335, to govern the functioning of the country’s system of public registries; Decree-Law No. 332, on the organization and functioning of the National Land Use Record; and Decree-Law No. 331, on special regulations for identified zones.
2016
GUIDING DOCUMENTS
The Seventh Party Congress was held, during which presented were the Conceptualization of the Cuban Economic and Social Model of Socialist Development, fundamental elements of the national economic and social development plan through 2030, and the updating of the Guidelines for the period 2016-2021; guiding documents later approved by the Cuban parliament which are essential to achieving a prosperous and sustainable socialism.
STRENGTHENING THE CUBAN PESO
The political will of the Party and government leadership to do everything possible to improve the population’s economic situation despite existing limitations and a drop in commodities prices in the global market, resulted in the adoption of a series of measures designed to gradually increase the purchasing power of the Cuban Peso over the short-term.
These included price cuts of up to 20% on certain goods – above all foodstuffs – sold in retail stores and other such Mincin outlets. However a definitive solution to this complex reality depends on greater productivity and efficiency within the national economy.
Meanwhile measures affecting the sale of agricultural products were also adopted, with price limits established for certain goods.
2017
THE COMPUTERIZATION OF SOCIETY
The comprehensive policy to perfect the computerization of society is designed to contribute to the defense of the Revolution, guarantee cyber-security against all kinds of risks and threats; ensure technological sustainability and sovereignty; improve the population’s access to information technologies; develop and modernize all sectors of society to support the country’s development; and combine research, development, and innovation with the production and sale of products and services.
PROJECT LIFE
One of the key actions undertaken this year was the implementation of the state plan to combat climate change: Project Life (Tarea Vida), designed to mitigate the long-term impact of climate change on the island through 2020, 2050, and 2100.
Rapidly rising sea levels pose a significant threat to Cuba, such as the loss of land due to continual flooding, above all affecting coastal areas and agricultural activities.
2018
SPECIAL SOCIAL SECURITY PROGRAMS
Decree-Law No.351, of the Special Social Security System for cooperatives and basic units of cooperative production, was passed as part of the policy designed to improve productive bases in the agricultural sector, and work toward decreasing the relative participation of the state budget in the financing of social security by applying special taxes to the non-state sector.
These regulations expand on existing legislation related to self-employed workers; agricultural and non-agricultural cooperatives; land in usufruct; and the arts sector.
FIRST WHOLESALE FOOD MARKET OPENED
As part of the process of restructuring commerce and in response to repeated demands by the non-state sector, the first wholesale food market (Mercabal) was opened in Havana. The market will initially cater to non-agricultural cooperatives, and to the extent that conditions allow, will be extended to self-employed workers renting state owned restaurant facilities, before gradually being expanded nationwide.
(Granma)