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7/29/2019 Cuba: Challenges and changes
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The Cuban Revolution:challenges & changes
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Cuba and its neighbours
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Cuba: an inspiring revolution
Authentic, deepgoingsocialist revolution.
Has resisted US empire.
Continually inspiring:internationalist anddemocratic.
Has shown that Stalinistdegeneration is notinevitable. Timemagazine,
January 26, 1959.
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Revolution facesbiggest challenge
Severe economic problems.
Far-reaching reforms projected.
Bureaucracy, corruption, black market.
Leadership transition.
May Day, Havana, 2010.
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US blockade
An economic, commercial and financial siege
that has lasted half a century
Cuban foreign minister Rodriguez Parrilla.
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Collapse of USSR
1991 collapse ofSoviet Union.
Cuba lost bulk of
trade and aid. Faced starvation
and collapse:Special period.
Living standardsstill not recovered.
Fidel in USSR with Sovietleader Nikita Krushchev,
June 1963.
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Natural disasters
2008: Cuba hit byhammer blows ofclimate change.
Hurricanes Ike,
Gustav and manymore.
Few lives lost but
enormouseconomic cost.
Severe ongoingdrought .
Surveying wreckage after
Hurricane Gustav.
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Nickel price collapses
Cuba has onethird of worldsproven nickelreserves.
Cubas biggest
export earner.
Crash of worldnickel price.
World nickel price: from
$52,000 per tonne in 2007 to$9000 in 2008; now back to
around $20,000.
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Development of tourism
Tourism hasdevelopedmassively in last
two decades. 2001: 1.7m visitors.
2009: 2.4m visitors.
Big earner but alsobig social costs. Havana: Cuba is a prime
tourist destination.
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Venezuela
Rise of Venezuelanrevolution crucial.
Main trade partner.
Cheap oil in return formedical and other aid.
Fibre optic cable: will
enable Cuba to breakUS internet throttle.
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Cuba-China relations growing
After Venezuela,China is maintrade partner.
Vital relationship:nickel, transport,consumer goods.
Assistance withhunt for offshoreoil.
Italian-owned, Chinese-builtoil rig will do offshore test
drilling.
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Economic situation
GDP growth ratehas fallen sharply.
Key export earnershit, imports costly.
Medical services toVenezuela vital.
Drive for food self-sufficiency (70%imported).
GDP growth has fallen
steadily from 12.3% peakin 2006 to 1.9% in 2009.
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Two-tier currency Ordinary peso and
convertible peso(CUC).
Dollars (tourists andremittances) must beexchanged for CUCs.Fees and taxes of20% levied.
Dollar shops withmuch higher prices.
Most Cuban workersare paid in pesos.
Dollar shop in Holguin.
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Daily struggle to get by
Wages and pensionsare inadequate.
The libretarationsystem is inadequate.
People are driven toextra jobs, the blackeconomy, pilferingand corruption.
Social inequality isgrowing as some arebetter placed.
Cubans queuing for rice.
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Black economy
Numerous activities, from thefairly harmless to the seriouslycriminal:
Selling homemade goodsunofficially.
Selling goods stolen fromwork.
Using work facilities forprivate gain (eg, using car
as taxi for tourists).
Bribery and corruption (eg,sale of lucrative touristsector jobs).
Black economy: a vendor
sells home-made sweetsalong Havana street.
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Raul Castro at UJC congress
to continuespending beyond ourincome is tantamount
to eating up our futureand jeopardizing thevery survival of the
revolution.
Raul at UJC congress, April 4, 2010.
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Reform plan: main points
State payrolls to be slashed:
1 million workers to be laidoff over 5 years (half by nextMarch).
Smaller state enterprises to beconverted to cooperatives.
178 occupations now open toprivate enterprise; in 83 ofthese, the owners will be able tohire non-relatives.
Agriculture: Land to those whowant it; controls loosened andsupplies more readily available.
Tax system will be revamped.
Young Cubans helpon farm.
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Reforms: aims and risks
To trim state payroll and increase productivity of statesector.
To increase economic efficiency by stimulatingpeoples self-interest.
To draw people out of black economy into open legal
sector, regulate and tax. To increase food production and reduce huge import
bill.
To make daily life less stressful by making things
easier: having services that work, food available. Need to significantly raise wages and pensions.
Risks: market will create inequality and a strongerpetty-bourgeois layer. Need to keep strong boundaries.
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Shakeup: top leaders dismissed
In March 2009, Carlos Lage Davila and FelipePerez Roque and a number of other centralleaders were dismissed from their party andstate posts for serious errors.
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Head of civil aviation sacked
In April this yearGeneral RogelioAcevedo wassacked.
Officials in civilaviation did secretdeals and pocketedthe proceeds.
Many people underinvestigation. Former Sierra Maestra
fighter and Angola veteran
Rogelio Acevedo disgraced.
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Inspection department set up
A Comptroller General's Office wascreated in August 2009 to monitor thestate apparatus and crack down oncorruption.
One of its tasks is to follow up onreports by the public.
The comptroller urged workers to
press for their right to discuss the useof public resources.
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CP expels revolutionary
Earlier this yearEsteban Moraleswas expelled from
CP after he warnedof danger ofcorruption and saidthat some Cuban
bureaucrats weregetting ready forreturn of capitalism.
Academic Esteban Morales,expert on US-Cuba relations,
50-year revolutionary.
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Dissidents a US creation
In March 2003, 75Cubans were jailedas paid US agents.
Hailed by Westernmedia as prisonersof conscience.
Most since
released.Ladies in White, relatives and
supporters of jailed Cubandissidents, demonstrate in
Havana, March 2010.
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Criminal hailed as dissident
Zapata Tamayo diedin prison in Februaryafter 83-day hunger
strike. Doctors fought to
save his life.
Western media hailedas political prisoner.
In jail for real crimes.
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CP congress put off
Last party congressheld in 1997.
Sixth congress set
for late 2009, thenpostponed. No newdate has been set.
This congress willbe last one led byhistoric leadershipof revolution.
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Transition of leadership
Revolutionarygeneration isslowly passingfrom the scene.
Process ofgenerationalchange critical.
Central leadershipteam absolutelykey.
May Day, Havana, 2007.
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Imperialists howling International capitalism will never
be reconciled to CubanRevolution.
Bush set up a transition office toplan for re-establishing
capitalism in Cuba. Imperialists think forced turn to
market will weaken therevolution and provide opening.
Always howling about humanrights never mind theabsolutely mind-blowinghypocrisy involved.
Bush set uptransition office
for Cuba.
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Revolution still fighting Tremendous
example, greatsocial gains.
Imperialists thinkthey smell blood.
The struggle willdecide, within
Cuba and abroad.
Solidarity vital.
Women inducted into armedforces, June 2008.