Cuba To Eliminate Ration Cards Introduced In 1962

[El Presidente]

Cuba To Eliminate Ration Cards Introduced In 1962

HAVANA, Nov 10 (BERNAMA-NNN-MERCOPRESS)

http://www.bernama.com.my/bernama/v5/newsindex.php?id=542169

- Cuba is proposing the orderly elimination of the ration card according to a document prepared for the ruling party Communist Congress scheduled for April next year.

The social policy document under the heading of "Guidelines' project for economic and social policy" went on sale yesterday here and is expected to be approved in the coming congress.

The document anticipates "implementing the orderly elimination of the ration card, a regulated and fair distribution system at subsidised prices".

The ration card favours both the needy as the non needy "promotes bartering and resale practices and encourages an underground market".

Effective since 1962, the ration card is supposed to deliver at symbolic prices cereals, sugar, chicken, fish, eggs, rice, coffee, cooking oil, pasta and bread among other staples (when they are available) to the 11.2 million residents of the island.

In recent months the Cuban government decided to end with the supply of potatoes and tobacco, which triggered the debate over whether the ration card should subsist or be eliminated.

"It is also important to improve ways to protect the vulnerable population because of food supply", points out the document.

In other words this means keeping the "social food distribution system in social services, health centres and education establishments that need it" as well as in the workers mess rooms which are "essential", but charging subsidised prices.

The closure of subsidised workers mess rooms begun in Sept last year in several ministries on a trial basis and with the purpose of cutting government expenses.

The programme also includes leaving redundant half a million government employees that will be encouraged to become small entrepreneurs or self employed.

Another half million will follow taking advantage of the experience collected with the first batch hoping to promote a dynamic private sector of small shop keepers and tradesmen.

These latest announcements are in the framework of other measures on economic policy undertaken by President Raul Castro since taking office and with the purpose of "up-dating" and making more transparent and realistic the Cuban economy.

Castro will convene the April congress, the first since 1997, with the specific task of addressing economic policy.

-- BERNAMA-NNN-MERCOPRESS

[mazolaman]

An interesting read.

It's fascinating to see the gradual transition Cuba is making.

Thanks for posting.

[Dbone]

An interesting read.

It's fascinating to see the gradual transition Cuba is making.

Thanks for posting.

I don't know about gradual, some of this stuff is pretty dramatic social changes. Not meaning to be a pessimist or come off condescending, but I'm not sure Cuba can make this transfer alone. Trade with the US could mean the difference between success or failure and I would want to believe the US would step up to the plate and be part of the solution. Half of Cuba's neighboring islands could completely collapse if the US travel $$ where to disappear.

Speaking for myself, if travel / trade where to open... probably my next vacation would be to the (forbidden) island. Advertise that to the other 300 million Americans and greenbacks would be in the hands of every street vendor & tour guide.

[mazolaman]

I say gradual,as Cuba has recently taken a few decisions like this.

Surely the worst thing that could happen would be the US jumping in with both feet,as this was a major cause of the revolution.

The other problem is,over relliance on the US tourist dollar will turn Cuba into a resort,dependant on the US.

I hope Cuba retains the aspects that makes us love it!

[Dbone]

I hope Cuba retains the aspects that makes us love it!

Couldn't agree more, well said.

[JohnnyO]

Since the departure of the Soviets in the 90's the ration card has been reduced bit by bit. Most agree that the card is good for 12 days of food for the month. The products on the ration card were subsidised and had a different price than the market price (if available). For years some of the product was being sold by the "bodegueros" or mini-mart administrators from what they were skimming. If the consumer had no use for the product (cigars, cigarettes, sugar etc) they would sell their allotment on the open market at a price slightly lower than its true value. This is Raul's reasoning why they want to eliminate the system, to stop the middle-man. The reality is they want the profits to themselves as farmers markets and bodegas are all government owned. The big picture is that the communist house of cards is collapsing and they need a little magic trick to keep everyone entertained. People in general can't survive on their earnings ($15 month), that is if you have a job. All the press releases about allowing people to run their own businesses is window dressing for the rest of the world. They want 39% from your earnings, gee I wonder where they got that number? Besides, the paperwork required to accomplish these sort of permits make the Encyclopedia Britanica look like a mini-bible. According to Raul the 20% devaluation on the US dollar was to "support those that did not have remittances from Miami." No mister President, it's to fill up you pockets faster. The law supposedly will be signed April, 2011 enacting it might take 90-180 days. My guess is you will have plenty civil unrest at that point. John

[MPS]

Thanks John for telling it like it is.

[El Presidente]

Nice analysis John. Spot on.

They are buying time. There is no fundamental reform going on, simply the normal "smoke and mirrors" they enter into every time they are in a hole. Well...they are always in a hole...this one is just so deep they can't see their way out of it.

[mazolaman]

That's enlightening John.

I had thought the changes they were making was a an easy road into a more capitalist system.

I felt this would happen due to the dire state of their economy,ie no other option.

Seems I've been fooled by smoke and mirrors.

If it all comes to civil unrest,it could be horrible.

[Leopolis Semper Fidelis]

John and Rob: your posts are the best analyses I've seen. The tiger doesn't change its spots.

[JohnnyO]

They printed a 32 page tabloid style newspaper discusing some of their plans for April 2011. Charged the folks 1 Cuban peso for it (5 cents), that magic trick will keep the folks entertained and confused for a while. Raul also has stated that they will have an economy with a capitalist base but will be centrally planned. What he meant to say was: "let's mix some good with a little bit of evil and see if we can screw this up any further." Black market prices will rise as the stream of goods that were once available are going to be dammed up. They will continue policeing and cracking down on small vendors until it reaches a boiling point. John

[ajgagnon]

You know, Canada used to have an economic system that blended the social support and market forces... in fact, Canada's economy in the post-war period could be one of the most compelling illustrations of the path forward for Cuba, notwithstanding it's hard to accomplish anything with a complete embargo.

I think they would be well served by allowing greater freedoms for small businesses, but retain control over key industries. With a gradual transition in an orderly plan, Cuba could attract investment for its key infrastructure and other basic needs while maintaining a good degree of control over how it happens... after all, they have hundreds of years of national ethos around Cuban sovereignty and independence, going back long before Castro.

The challenge, I think, is to help everyday Cubans amass some capital, as their current system essentially makes it impossible to do so. And if the transition weren't done conscientiously, I think many Cubans could be out on the street, even as others made great amounts of money (think of the impact of having to pay rent for the first time without a stable job economy-- this has to happen gradually and carefully). What gets me is that under any of the scenarios I can think of, cash coming in from Miami will likely skew internal dynamics in favour of people with a certain kind of political affiliation... and this kind of philosophy hasn't shown itself to be as open to 'balanced development' as others (like, say Canada's social democracy leading up to the 1980s).

If done well, I think Cuba could benefit from the kind of development seen in Asia, where economies developed (in the modern phase) later than in North America and Europe, and were able to skip over copper telephone wires in favour of cellular technology, for example. Cuba could represent an incredible opportunity for sewer infrastructure, water treatment, bioenergy, telecommunications networks, and a range of other industries. I think it may be best if this development were to happen with the participation of Cubans as much as possible, though, and not from outside actors (even if that means the Cuban state).

What do you think?

[mazolaman]

I agree,they could essentially learn from our mistakes,and create a modern system,which has aspects of both philosophies.

This was what I hoped they would do.

It's no use saying"comunism bad,capitalism good"as both have their pros and cons.

I guess the problem with their form of comunism,and most others currently out there,is someone is at the top feathering their nest and playing it for themselves.

It would be difficult to do anything much with the embargo on