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Mauricio De Miranda Parrondo

Mauricio De Miranda Parrondo

Ph.D., Profesor Titular. Director del Centro de Estudios sobre la Cuenca del Pacífico del Departamento de Economía de la Facultad de Ciencias Económicas y Administrativas de la Universidad Javeriana, Cali, Colombia.

Photo: Otmaro Rodríguez.

Necessary reforms in Cuba: from a centrally directed economy to a regulated market

In 2012, a group of Cuban economists (Omar Everleny Pérez Villanueva, Ricardo Torres Pérez, Pavel Vidal Alejandro, Armando Nova González, Juan Triana Cordoví and the author of this text), published a collective book entitled Cuba. Hacia una estrategia de desarrollo para los inicios del siglo XXI (Cuba. Towards a development strategy for the early 21st century). In that book, I wrote the last chapter entitled “Los problemas actuales de la economía cubana y las reformas necesarias” (The current problems of the Cuban economy and the necessary reforms). In seven years, little has changed in Cuba and, in fact, economic growth has slowed down and many of the problems analyzed in that text have worsened. That is why I think it appropriate to again address the issue of the necessary reforms, updating the analysis and addressing new issues from a different perspective. The inefficiency of centralization The inefficiency of excessive centralization can be verified in practice in the economic history of all countries that adopted the model of centrally directed economies. The adoption of directive figures without taking into account market conditions has led to distortions in prices and, consequently, in the allocation of resources. On the other hand, enterprises’ lack...

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