(THIS ARTICLE IS MACHINE TRANSLATED by Google from Norwegian)
With the fall of the Soviet Union, Cuba lost 80 percent of its export earnings. The outside world was clear in its judgment – such a financial strain no country can survive. The government of Cuba responded by launching the concept the special period in peacetime, and called for unity and sacrifice.
If poverty in Cuba is high today, it was catastrophic in 1995. Admittedly, someone died of starvation, thanks to the state rationing system. Nevertheless, the food shortage, and the lack of almost everything else, created an extremely tough and demoralizing situation.
Since then, the country's economic situation has gradually improved, past the point where one stopped measuring progress in average calorie intake per capita. The economic progress was largely due to the legalization of the dollar as a parallel currency, the opening up of some foreign investment and, not least, the investment in tourism. US retaliation against countries, companies and individuals dealing with Cuba has delayed, but not stopped, the economic recovery process.
Some shadow sites
It is no secret that economic reforms have had their downsides. The presence of two parallel currencies has made it virtually impossible to ensure a fair distribution of goods, and differences in society have increased dramatically over the last ten years. New social problems have emerged, and dissatisfaction has grown. For those who have no income other than the state's salaries, it is still very difficult to manage financially. Admittedly, many goods and services are free or available at heavily subsidized prices – housing, education, health, transport, cultural offerings and a small amount of basic food every month. But if you need a new pair of shoes, for example, a monthly salary or more quickly disappears.
Not unexpected, then, that it attracted much attention when President Fidel Castro on December 27 last year could tell that the country is nearing an end to the economic crisis. He substantiated his claim well. There are, in particular, six elements that will contribute to further progress in the Cuban economy:
The first step is increased economic cooperation with China. Leadership in the world's most populous countries seems to have seen Latin America as a new area of focus. For Cuba, this entails, among other things, a lucrative agreement that allows for doubling of the country's nickel production.
The second moment is the peaceful revolution in neighboring Venezuela. Cuba today has a total of 25.000 doctors, dentists, sports instructors and other personnel stationed among Venezuela's poor – and there will be more. Venezuela has said it is willing to pay reasonable financial compensation for these services – in addition to supplying oil under favorable conditions. On 29 April this year, co-operation between the two countries took another step forward, when 49 agreements were signed announcing comprehensive economic integration.
The third factor is the discovery of a small oil field off Havana. The oil here is of higher quality than other deposits in Cuban territory. In recent months, the country has increased its degree of self-sufficiency from approx. 33 percent to approx. 50 percent, a number that is expected to increase. This reduces a large expenditure item in the national budget – the purchase of oil at sky-high prices on the world market.
The fourth element is the steady increase in the number of tourists visiting Cuba. In 2004, the country had over two million tourists for the first time. The target for 2005 is 2.3 million tourists.
The fifth step is agricultural reform and the transition to organic production where not everything is done. Production seems to remain fairly stable, but organic products can be sold for 30-40 percent higher prices in the European market.
The sixth part is a series of economic reforms that have as stated goals to help increase the country's earnings, ensure a more equitable distribution and streamline the state apparatus. By decentralizing a number of economic transactions, the country is expected to save between $ 500 million and $ 1 billion annually.
Doubling of pensions
There is no doubt that the country's improved economy will benefit the average Cuban. In April, the authorities announced a doubling of both pensions and the minimum wage in the country, which directly benefits over three million people. This makes the situation easier for a large proportion of those who have had the most difficulty during the special period, even though wages are still small and for many insufficient. It helps then that the selection of rationed goods has also increased recently, and that a number of white goods are now offered at subsidized prices directly from the state. One goal that will benefit many is the plans to build 100.000 new homes during 2005. Restoration of public buildings, improvements to electricity and telephone networks, upgrading of the country's railway offerings and the purchase of more buses are other measures that are being noticed. to. It must also be mentioned that the country has adjusted both its currencies upwards in recent months – Cuban Pesos og convertible peso. This process is expected to continue, with the consequence that people's purchasing power is gradually increasing. The long-term goal seems to be to switch to one strong currency.
The Cuban model of society is not static, but has shown the ability to renew itself under difficult conditions. In a global context, Cuba is a pioneer in fulfilling the most basic human rights – the right to food, housing, education, health care and the absence of fear of violence. An improved economic situation internally, while many countries in Latin America are moving to the left, provides opportunities for improvement in other areas as well. In this connection, many hope that Cuba will implement further reforms in the direction of political transparency. The United States' aggressive policy is the biggest obstacle here. As long as national security is seriously threatened, the demand for political unity will easily be given political priority over the desire for a pluralistic, socialist-oriented society.
