When at the start of the process of transformation of the Cuban economy President Ra\u00fal Castro presented the need to have a more rational state apparatus he mentioned that some 500,000 workers would have to be taken out of their job posts to other sectors. The non-state sector appeared as one of the possible means to resolve that new problem.
\nIn the interval there was a debate about the necessary\/wished-for size of the non-state sector in terms of employment and contribution to the GDP.
\nToday we don\u2019t have the figures for its contribution to the GDP, it is true. It is part of the information we are still missing and which at some time we must, and let\u2019s hope it is sooner than later, systematize. But we do have the number of persons who are working in that sector.
\nAccording to the 2016 Statistical Yearbook of Cuba they represent close to 40 percent of all the country\u2019s working persons. In terms of employment it isn\u2019t marginal at all. Those who don\u2019t have an official permit are not considered in that figure.
\nAs in other Latin American countries, that sector, the one of small and medium enterprise about which there has been so much talk and that unfortunately seems to be taking long in reaching Cuba – and which is not informal on the island \u2013 makes a great contribution to employment and a very modest contribution to the GDP.
\nIt is a typical asymmetry, almost with a legal character. In Latin America a great many of those who make up that sector are persons with little education, a population segment frequently forgotten by the State itself in their countries.
\nThis is not the case in Cuba, based on the inclusive character of the social policies adopted in Cuba since the start of the Revolution; it should be in our favor and that sector which we have today should be better included in the current policies and in those others that are in the process of being drawn up to make up the development strategy until 2030.
\nI don\u2019t know, however, that there exists someone or some persons taking care of this segment that today generates 40 percent of the country\u2019s employment.
\nFollowing I will tell a real story:
\nIn a Cuban province which I won\u2019t mention, there is a private worker who has been able to innovate and produce a group of food products with special qualities that serve as a supplement for the treatment of some food-related diseases.
\nI met him some years ago, when he was struggling to not have his business, which in addition benefitted children with certain dietary disorders, shut down. In the end he achieved it and his business is still alive.
\nLast year, he and his work team were able to process and sell more than 40 tons of food consisting in the paste or puree of some vegetables (it\u2019s the figure he gave me). It is a considerable amount.
\nHowever, as a private worker, he continues in the same condition of legal limbo, depending on circumstantial interpretations or states of mind.
\nWhile the country spends dozens and hundreds of thousands of dollars importing those same products, he, however, doesn\u2019t have the facilities to purchase the appropriate containers, label his products in a modern way, etc.
\nHe can even less import or contract new machinery. His small business is not included in the program of import substitution! And of course, he does not benefit from that program\u2019s incentives, if there were any.
\nHe has no facilities to grow, qualitatively or quantitatively. He is not part of the state program for the development of the mini-industry!
\nIn short, he gets a marginal treatment; he works in a legal limbo and has to be careful to not raise suspicions associated to his success as a private entrepreneur.
\nMy friend is highly qualified in the activity he carries out. He was, in his time, around the 1980s, a student who benefitted from higher studies in a country of the socialist camp. He studied his specialty there.
\nToday he is applying what he learned, contributes to his province\u2019s economy, produces the necessary products for a healthy diet, pays taxes and employs his compatriots. I don\u2019t know how much wealth he has amassed, but I do know that he contributes to his province\u2019s economy.
\nWhat is distorted here? Self-employment and the new cooperatives, or the regulations that marginalize him and continue distant from the basic idea of integrating him to the general dynamics of the national economy and to the process of the construction of a socialist, prosperous and sustainable society?
\nIs it that fear that persons accumulate wealth through their work and aptitudes to develop a business \u2013 and to make a business grow and improve in another way \u2013 will lead us to renounce one of the probable influences for growth?
\nCuba already went through the experience of the marginalization of what was private and as part of that process, the marginalization and demonizing of self-employment.
\nDuring all these years, since the 1960s, we have lived a love\/hate relationship, of negation and acceptance, which began when after the \u201cRevolutionary Offensive\u201d – just a few years later -, it was recognized in the official documents of the Communist Party that mistakes of economic romanticism had been made.
\nHowever, we have never been totally consistent with the recognition of that mistake and the policies have always stayed halfway in the attempt to right it.
\nNo one has calculated the cost of the indecision, but we could make an approximate estimate.
\nLet\u2019s look at how much the State pays in wages in the \u201cCommerce and repair of personal effects\u201d sector; a weakened sector, absolutely not strategic, which doesn\u2019t decide anything about the future of national development or security.
\nLet\u2019s see how much that sector costs us, a sector that today employs 457,200 persons, almost as many as the education and health sectors and 16 times more than the science and technology sector.
\nAccording to the 2016 Statistical Yearbook of Cuba (chapter 7, chart 7.4), the monthly average wage in the \u201cCommerce and repair of personal effects\u201d sector that year was 717 Cuban pesos (CUP), a 27 percent increase in relation to 2014 (when it was 566 CUP) while the monthly average wage in the education sector was 533 CUP, 184 CUP less than the Commerce sector, and its increase in relation to 2014 was 1.1 percent.
\nEstimated by the author by multiplying the monthly average wage per amount of total workers in each sector. (Statistical Yearbook of Cuba, chapter 7, charts 7.3 and 7.4)
\nEstimated by the author by multiplying the monthly average wage per amount of total workers in each sector. (Statistical Yearbook of Cuba, chapter 7, charts 7.3 and 7.4)<\/p>\n
MONTHLY AVERAGE WAGE
\nTOTAL PAID TO THE SECTOR OF:
\nCOMMERCE AND REPAIR OF PERSONAL EFFECTS: 327 MILLION CUBAN PESOS.
\nEDUCATION: 269 MILLION CUBAN PESOS.
\nSCIENCE AND TECHNOLOGY: 28 MILLION CUBAN PESOS.
\n———-
\nAT PRESENT, 19 FOREIGN CHAINS OPERATE IN CUBA IN TOURISM THROUGH 85 HOTEL MANAGEMENT AND MARKETING CONTRACTS
\nAND THEY ARE RESPONSIBLE FOR 42,275 ROOMS (62.2%)<\/p><\/blockquote>\nOn the other hand, 317.2 million CUP were spent on Social Assistance in 2016 (2016 Statistical Yearbook of Cuba, chapter 7, chart 7.15), while the annual wage paid in the Commerce Sector was 3.924 billion Cuban pesos.
\nIf the priority means among other things the assignment of resources, if among those resources are the monetary resources, then one would have to say that the \u201cCommerce and repair of personal effects\u201d sector has more priority than Education, than Health, and the benefits of Social Assistance.
\nIf it\u2019s a question of employing those persons, or of not leaving them unemployed, then think that the sane employees could become cooperative members or private workers.
\nIf it\u2019s a question that from the income the State gets \u2013 70 percent of the Cuban family\u2019s consumption spending is carried out in the state-run commerce sector \u2013 there are sufficient fiscal instruments to achieve it, in addition to the fact that the cost of obtaining those incomes (wages for employees, state investments in the sector, spending on electricity, water, etc., plus the cost of the systematic theft of products) would be substantially reduced.
\nOn what is it more adequate to spend that money to achieve our vision of country? Isn\u2019t it perhaps better to use it on schools and hospitals, pay better wages to the primary education teachers, the doctors, our scientists, or continue paying wages and investing in sectors that are not decisive for the nation\u2019s development, strength and security?
\nHow is it possible than in such a decisive sector as tourism forms or types of businesses where the public and the private coexist have been adopted and that they add to the country\u2019s aims and in this other sector, which we all recognize as non-fundamental and with low productivity it is not possible?
\nIn tourism, there are more than 64,000 rooms in three-, four- and five-star hotels. Out of those rooms, thousands are under foreign management contracts, which is a formula in which the \u201cpublic or state-run\u201d \u2013 in this case the ownership of the hotel and the investment made in its construction \u2013 is in the hands of the State and the management is in private hands (Meli\u00e1, Iberostar, etc.).
\nWhy can\u2019t that same type of associations be made in other \u201cnon-fundamental\u201d sectors and the Cuban non-state sector?
\nSource: Cubadebate, \u201cNational Assembly: \u00bfC\u00f3mo se ha comportado el turismo en Cuba?\u201d December 20, 2017.
\nIn the same way, in transportation, non-state forms together with state means, assume today an important part of passenger transportation.
\nThe economy only exists if the adequate institutions exist. It depends on those institutions, that is to say, on the rules of the game, which must create above all incentives, confidence and guarantees for the future.
\nWithout them there will be no economy, neither state-run, nor private, nor joint or better said there will be some type of economy that will be barely able to meet its task or that will divide the country into circuits or stagnant compartments with high costs in effectiveness and efficiency and will distance it from the goals it has set for itself.
\nThe economy is, as we all know, an essentially political matter.
\nFinding the coherence between both types of institutions (the political rules of the game and the economic rules of the game), achieving that the intersection between both be evermore bigger and point to the purpose of wellbeing and prosperity, of equity and social justice, of productivity and efficiency, with the participation of all the economic agents, is one of the most difficult exercises than can be attempted, but the attempt must be made and the sooner the better.
\nOnly this way will the private worker from that province be able to at last become a small entrepreneur, will have the appropriate relations with suppliers, will be able to invest in improving the technology, will innovate in new formulations and perhaps, why not, export his products to some of the Caribbean islands. His contribution to prosperity, growth and development of his province and his country would be greater. Am I too much of a dreamer?<\/p>\n","protected":false},"excerpt":{"rendered":"When at the start of the process of transformation of the Cuban economy President Ra\u00fal Castro presented the need to have a more rational state apparatus he mentioned that some 500,000 workers would have to be taken out of their job posts to other sectors. The non-state sector appeared as one of the possible means […]<\/p>\n","protected":false},"author":2445,"featured_media":111104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"ppma_author":[33669],"class_list":["post-122541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n
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