Cubans Discuss Updating Economic Model

On December 18, Cuban President Raul Castro delivered an historic speech during the closing ceremony of the Sixth Session of the Seventh Legislature of the National People’s Power Assembly. The speech comes at a critical period in the life of the Cuban Revolution, a period during which there is enormous pressure, both internal and external, to destroy the revolution and return Cuba to the fold of capitalism and imperialism. The Sixth Session discussed Draft Guidelines for the Economic and Social Policy which will provide the framework for building socialism over the coming period.

Several main themes emerge from Raul Castro’s speech and some of the reports of the discussions, many of them reflecting the assessment that the struggle against bureaucratism is a key struggle in defence of socialism. Castro discussed plans to decentralize government and shift some of the decision-making powers from the federal to the provincial and municipal levels. This would provide more initiative to those directly affected by the decisions to ensure that the decisions are actually implemented.

The plan to decentralize governance is coupled with measures to decentralize the economy, particularly in terms of non-essential services. These measures would allow an expansion of the self-employment sector and place more initiative in the hands of individuals and collectives to make investment decisions at their level. At the same time, Castro made it clear that this does not mean abandoning socialist planning, as the state will retain control of the key areas of the economy and will take measures to prevent the concentration of wealth in the hands of individuals and collectives.

Castro discussed the problems in the arena of socialist planning at some length, pointing out that false optimism often lead to misleading and outright false reports on the fulfillment of plans. He emphasized that whether intentional or not such falsifications undermine the economy and of the socialist system itself. He stressed that those occupying positions of leadership will be held accountable and those who do not fulfill their duties with competence will be removed, regardless of their position in the party or state and despite their past revolutionary credentials.

Closely coupled to these proposals is a measure that would see greater delineation between the party and the state. Castro stated that the elected representatives must be allowed to carry out their responsibilities without interference from the party. For its part, the party will be able to concentrate on its primary role as a political organization and organizer of the people, with its cadres being expected to use logic, argument and persuasion to convince the people to support its goals.

Castro also dealt with the false equation of socialism with the welfare state. He announced plans to end universal state subsidies on goods and services and replace them with subsidies for those individuals and families who actually need them. This would not only reduce unnecessary expenditures of the state, but would actually reduce inequalities within the society based on vocation, area of residence, number of dependencies, etc. At the same time Castro announced that ultra-equality, which in the past has seen individuals performing extremely important jobs remunerated at lower rate than those performing less important jobs, will also be addressed and individuals will begin to be paid salaries more commensurate with their skills and merit.

Castro emphasized that the concept of socialism as a system which provides people with something for nothing must be done away with and a culture of hard work must replace it. In this respect, he announced that over the next five years 500,000 unnecessary state employees will be transferred into non-state sectors as those sectors are opened up. At the same time, he stressed that those who are unable to work for one reason or another will continue to be guaranteed a basic livelihood.

Castro also discussed the issue of Cuba’s debt and various proposals to reduce it. He pointed out that Cuba imports many commodities which it then sells to individuals at subsidized prices. He said that those subsidies will be eliminated entirely on non-essential items, while other measures will be taken to reduce Cuba’s dependency on imports for various essential items. He gave the example of coffee which Cuban experts had taught the Vietnamese to cultivate with great success, but which Cuba does not produce itself. He stated that if Cubans want access to good quality coffee they will either have to pay the market price or begin producing it themselves. Those items which Cuba cannot produce will have to be paid for with exports in order to eliminate the existing balance of trade deficit.

Underlying all of these measures are new guarantees of the right to conscience. Castro said that not only must Cuba’s leaders accept debate and criticism, they must embrace it. He said that it was hoped that criticism would take place in the right way, at the right time and in the right place, but they know that will not always be the case, but they are not afraid of the challenges that will emerge.

With this open debate on a new economic model it would appear that Cuba has now entered a stage in its revolution very similar to that in the Soviet Union after the Second World War, a stage in which the extension of democracy and defeat of bureaucratism became crucial to the success of the revolution. There should be no illusions about the viciousness of the class struggle in such a stage; this is stage which, in many respects, marks the final battle between the forces of revolution and the forces of counter-revolution and, to date, the forces of counter-revolution have prevailed at this stage in other countries. With Raul Castro’s speech and the economic measures being discussed for adoption, the main leaders of the Cuban revolution have declared their intention to carry the revolution through to the end, to ensure that socialism is irrevocable and will survive beyond their own passing.

In these days as the world is just beginning to emerge from two decades of profound retreat of revolution, these developments in Cuba are deeply inspirational and cause for great optimism amongst the revolutionary peoples of the world. Modern Communism will be following the discussions and developments in Cuba with great interest over the coming months and will attempt to keep its readers updated on important trends that emerge there.