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	<title>Cubadebate (English) &#187; Update of the economic model</title>
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		<title>Liquidity of liquid</title>
<link>http://en.cubadebate.cu/news/2021/01/17/liquidity-liquid/</link>
		<comments>http://en.cubadebate.cu/news/2021/01/17/liquidity-liquid/#comments</comments>
		<pubDate>Mon, 18 Jan 2021 00:13:21 +0000</pubDate>
<dc:creator>Cubadebate</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Central Bank of Cuba]]></category>
		<category><![CDATA[Cuba]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Monetary and exchange unification]]></category>
		<category><![CDATA[National Institute of Hydraulic Resources (INRH)]]></category>
		<category><![CDATA[Prices]]></category>
		<category><![CDATA[Update of the economic model]]></category>
		<category><![CDATA[Water]]></category>

		<guid isPermaLink="false">http://en.cubadebate.cu/?p=16517</guid>
		<description><![CDATA[In the midst of a tidal wave of rate increases in Cuba, the Higher Organization for Business Management (OSDE) for Water and Sanitation announces new rates for hydraulic and sewerage services.  Although it exceeds the multiplication table used for other products, an increase of 700 percent for drinking liquid, historically almost given away the service, continues to be laughable: the bills will reach between just 1.75 and 21 pesos per month per inhabitant, no more . ]]></description>
				<content:encoded><![CDATA[<p><img class="alignleft size-full wp-image-16518" alt="ACUEDUCTO" src="/files/2021/01/ACUEDUCTO.jpg" width="300" height="250" />In the midst of a tidal wave of rate increases in Cuba, the Higher Organization for Business Management (OSDE) for Water and Sanitation announces new rates for hydraulic and sewerage services .</p>
<p>Although it exceeds the multiplication table used for other products, an increase of 700 percent for drinking liquid, historically almost given away the service, continues to be laughable: the bills will reach between just 1.75 and 21 pesos per month per inhabitant, no more .</p>
<p>This only applies to houses connected to aqueducts, but the rest of the residential prices also oscillate by these figures, while the amount for wastewater treatment is, as usual, lower (precisely 30 percent of the amount per The consumption of water). Compared with the increase in the Unión Nacional Eléctrica, or with the new price of any pizza in Old Havana, this increase respects the preschool philosophy that no one is denied water.</p>
<p>In any case, these prices are not yet final &#8211; Yunior González, vice president of OSDE, puts the patch on it -; there will be a period of up to a year to study and decide how much they will eventually amount to .</p>
<p>Now &#8230; Will this increase in prices guarantee a better quality of services?</p>
<p>“From a purely economic analysis, our companies will continue in a similar situation”, confesses González, a hydraulic engineer by training. “Rates were increased, but also expenses; then we will continue the same. However, our workers, who previously earned 300 pesos on average (of the lowest wages in the country), today receive a higher amount and that will inevitably lead to better service ”.</p>
<p>According to calculations by OSDE, producing a cubic meter of water, from the reservoir to the tap, costs 1.48 pesos . From there, expenses such as electricity, chemicals, salaries and maintenance of the infrastructure are deducted.</p>
<p>However, for that same liquid volume barely 99 cents are recovered. This occurs, to a large extent, due to &#8220;losses due to leaks, a group of people who do not pay for the service or the inefficiencies of the company in managing the collection.&#8221;</p>
<p>Close the tap of waste</p>
<p>To improve the taxation process, the OSDE has considered solving the last of these problems by installing new meters in family and work centers.</p>
<p>The goal for 2021 is to manufacture 120,000 meter meters . Firstly, existing and obsolete ones that are on the brink of their useful life will be replaced, also those that suffer some kind of breakage. This task will have to use about 62,000 teams. The rest will be used to cover the demand of state centers, those in the self-employed sector linked to production and those in the residential area, in this order of priority.</p>
<p>Everything will be with the policy of &#8220;getting in&#8221; where there is a stable flow of water, with good service in terms of time, volume and quality; and then move on to other less advantaged places, such as those that have, say, water every three days, ”explains González, clarifying that only 47 percent of the population receives this liquid daily or on alternate days.</p>
<p>The vice president of the OSDE assures that installing more meters not only helps to obtain more income, but also promotes savings, since it is proven that in the localities where it begins to “meter”, water consumption decreases by a quarter .</p>
<p>The project can achieve that more than 99 cents are entered per cubic meter. If n however, will not change much the picture of the company, for 1.48 pesos is not the &#8220;real&#8221; cost of production . The true one, the net according to international prices of oil that feeds a kilowatt in Cuban thermoelectric plants, or of imported chemical products and spare parts equipment, is much higher.</p>
<p>“I have a lot of subsidies behind me that I am still not able to account for my expenses. The sum of 1.48 pesos is the expense of the OSDE, but when I extrapolate that to the highest office of the State, the expenses are higher, because I am accounting for the electricity with the value that they charge me, for example. There, in itself, there is already a subsidy that I cannot see ”, argues González. &#8220;The truth is that the water supply service is one of the most expensive in the world.&#8221;</p>
<p>The OSDE of Water and Sanitation and the Cuban business system of aqueducts and drains should not &#8211; and for now cannot &#8211; raise their rates excessively as long as &#8220;water is not denied&#8221; and remain socialist state companies that provide a vital service to the population . They are entities that, plainly, were not conceived to profit, which does not mean that a night of waste comes to which the hand will go, as Ana Belén sang.</p>
<p>Under this logic, more is gained by promoting savings, modernizing the hydraulic infrastructure to improve efficiency, or simply reducing water losses. Any of these three routes is more feasible for the profitability of the company, than the hackneyed &#8211; and apparently in danger of becoming fashionable &#8211; solution of raising prices.</p>
<p>In fact, González acknowledges, the heart of the matter lies in water losses; The same occurs in the conductors of wells, as in the distribution of urban networks or, even, in indoor spaces from common leaks.</p>
<p>The profitability of the service will continue to depend on the saving capacity and the reduction of water losses that the country achieves. (Photo: Radio Rebelde)</p>
<p>“Every cubic meter that is saved or not lost will reach a user from whom you can charge it. In addition, the service will improve and our effort will be socially recognized by the population. Or, simply, we will not have to pump that cubic meter, which represents less water and electricity costs, ”says González.</p>
<p>Excited, the engineer ponders the aqueducts of Japan and Germany &#8211; the best in the world, he maintains &#8211; which, after millionaire investments and advanced technology, have managed to waste only about five percent of the water.</p>
<p>The reality of Cuba is very different. In 2020, almost half of every cubic meter of water pumped was lost. In more exact figures, about 43 percent. However , the trend has been to reduce this waste little by little, year after year, since 2019 closed with 47 percentage points and for 2021 it is planned to drop to 39.</p>
<p>Over the years, the government has invested millions in the search for optimal efficiency through the Cuban Hydraulic Rehabilitation Program. But this has been delayed by the ups and downs of the budgetary bets: There is still too much to do, and while the scarce and intermittent water resources of a salinized island continue to be wasted.</p>
<p>The aquifer issue is so complex that it is necessary to go beyond the wallet to perceive that this rise in rates is now a secondary topic. After all, the new price per inhabitant per month, as the vice president of OSDE sentenced, &#8220;is almost symbolic.&#8221;</p>
<p><strong>(Taken from Bohemia )</strong></p>
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		<title>Monetary and exchange rate regulation in Cuba begins on January 1: The exchange rate will be 24 Cuban pesos to one dollar</title>
<link>http://en.cubadebate.cu/news/2020/12/10/monetary-and-exchange-rate-regulation-cuba-begins-on-january-1-exchange-rate-will-be-24-cuban-pesos-one-dollar/</link>
		<comments>http://en.cubadebate.cu/news/2020/12/10/monetary-and-exchange-rate-regulation-cuba-begins-on-january-1-exchange-rate-will-be-24-cuban-pesos-one-dollar/#comments</comments>
		<pubDate>Thu, 10 Dec 2020 19:53:28 +0000</pubDate>
<dc:creator>Cubadebate</dc:creator>
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		<category><![CDATA[Cuban Government]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Miguel Díaz-Canel Bermúdez]]></category>
		<category><![CDATA[Monetary and exchange unification]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Salary]]></category>
		<category><![CDATA[society]]></category>
		<category><![CDATA[Update of the economic model]]></category>

		<guid isPermaLink="false">http://en.cubadebate.cu/?p=16255</guid>
		<description><![CDATA[With the presence of Army General Raúl Castro Ruz, first secretary of the Central Committee of the Communist Party of Cuba; The President of Republic of Cuba, Miguel Díaz-Canel Bermúdez reported that the monetary and exchange rate regulation process will begin on January 1, with a rate  exchange of 24 Cuban pesos for one dollar. "The corresponding elaborations and analysis have been concluded, as well as all the necessary legal norms, so it is considered that the conditions are created to announce the start of the regulation process as of January 1,"]]></description>
				<content:encoded><![CDATA[<p><img class="alignleft size-full wp-image-16256" alt="ordenamiento-monetario-cuba-portada-940-768x425" src="/files/2020/12/ordenamiento-monetario-cuba-portada-940-768x425.jpg" width="300" height="247" />With the presence of Army General Raúl Castro Ruz, first secretary of the Central Committee of the Communist Party of Cuba; The President of Republic of Cuba, Miguel Díaz-Canel Bermúdez reported that the monetary and exchange rate regulation process will begin on January 1, with a rate  exchange of 24 Cuban pesos for one dollar.</p>
<p>&#8220;The corresponding elaborations and analysis have been concluded, as well as all the necessary legal norms, so it is considered that the conditions are created to announce the start of the regulation process as of January 1,&#8221; said the president in a radio and television appearance.</p>
<p>As announced, this process of monetary and exchange regulation implies a new exchange rate, the cessation of the circulation of the CUC currency, the elimination of excessive subsidies and undue gratuities, and a modification in the distribution of income.</p>
<p>Díaz-Canel recalled that in the last two Party congresses the fundamental concepts that should guide the work in this regard were specified, in particular in the VII Congress.</p>
<p>&#8220;In the Conceptualization of the Cuban Economic and Social Model of Socialist Development in its chapter I establishes, among other aspects, the redesign of the monetary, exchange, tax, price, salary and other income system of citizens,&#8221; he said. .</p>
<p>For its part, Guideline number 40 of the Economic and Social Policy Guidelines of the Party and the Revolution for the period 2016-2021, proposes: Concluding the monetary and exchange unification, as a decisive process in the monetary order of the country.</p>
<p>The president argued that in the new economic and social strategy to boost the economy approved this year, &#8220;the monetary order is ratified as one of the fundamental components that is of transcendental importance and has a transversal impact on the entire economy.&#8221;</p>
<p>Since last October, information on aspects of the so-called ordering task has been offered at the Round Table and at the last session of the National Assembly of People&#8217;s Power. At the same time, there has been a wide dissemination on the subject in the press.</p>
<p>In turn, he added, extensive training has been carried out for those who must participate in this task, &#8220;which has been very useful as a feedback element in its final phase of preparation.&#8221;</p>
<p>Díaz-Canel reiterated the significance and importance of this task, &#8220;which will put the country in better conditions to carry out the transformations required by updating our economic and social model on the basis of guaranteeing all Cubans greater equal opportunities, rights and social justice, which will be possible not through egalitarianism, but by promoting interest and motivation for work ”.</p>
<p>“It has already been stated that the ordering task does not by itself constitute the magic solution to all the problems present in our economy. However, it will favor the creation of the necessary conditions to advance in a more solid way, ”he stressed.</p>
<p><strong></strong>Due to its comprehensive characteristics, he continued, it is one of the most complex tasks that the country has faced in the economic order, complexity that is increased by the effects of the intensified blockade, the situation of the COVID-19 pandemic, the international economic crisis and the impacts they have caused to the national economy.</p>
<p>&#8220;The task is not without risks, one of the main ones is if there is an inflation higher than designed, exacerbated by the current supply deficit,&#8221; said the president and assured that abusive and speculative prices will not be allowed, since they will face socially with containment measures and severe penalties for noncompliants.</p>
<p>For the successful development of this task, the president said that everyone&#8217;s effort and cooperation is required in order to achieve the expected results. &#8220;As always, we will be receptive to the criteria of the population to attend to any problem that may arise in its execution.&#8221;</p>
<p>He reiterated that the conditions are created to ensure that no one will be left helpless. &#8220;In socialist Cuba, shock therapies will never be used against the people and that the transformations that we must undertake in the economic and social model will be carried out by previously forging a consensus in favor of the unity of the nation.&#8221;</p>
<p>Díaz-Canel stressed that the monetary system also creates the conditions so that the business system can make the appropriate decisions and fully exercise the powers that have been granted to it, which allows so that the business system can make the right decisions and fully exercise the powers that have been granted, which will allow it to react positively by increasing benefits for its workers and for the whole of society.</p>
<p><strong>(Cubadebate)</strong></p>
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