{"id":197082,"date":"2019-04-18T09:45:21","date_gmt":"2019-04-18T13:45:21","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=197082"},"modified":"2019-04-18T09:45:21","modified_gmt":"2019-04-18T13:45:21","slug":"opportunity-to-export-vs-export-capacity","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/opinion\/columns\/counterbalance\/opportunity-to-export-vs-export-capacity\/","title":{"rendered":"Opportunity to export vs export capacity"},"content":{"rendered":"

In a previous work I tried to expose how complex it was to achieve good economic policy designs, with the necessary coherence and consistency, capable of opening the paths of growth and development. Exports are one of those issues that require these policies and urgently need them.<\/span><\/p>\n

An article on <\/span>the export of coconut in Baracoa<\/span><\/a> and another, a few months ago, on the <\/span>exports of the Ceballos enterprise<\/span><\/a> have moved me to write about one of the biggest problems the national economy is facing today, the increase in exports.<\/span><\/p>\n

Let’s go first to the numbers. Cuba\u2019s exports in 2017 were barely 2.402 billion dollars, half of what was exported in 2014, imports reached 10.172 billion dollars, while the trade balance of goods was negative in 7.770 billion dollars.<\/span><\/p>\n

The Cuban export of services has made it possible to compensate for this situation, but each time in a more restricted way. In 2018, this situation did not change to positive and in 2019, achieving a better balance between exports and imports will rest on the cut in imports.<\/span><\/p>\n

In addition, the “quality” of these exports of goods, in terms of their structure due to technological complexity, is concentrated in exports of primary goods, in products from natural resources and in low-tech goods, all of which together add up to 91 percent of all our exports, while exports of medium- and high-technology goods barely reach 9 percent.<\/span><\/p>\n

President D\u00edaz-Canel has repeatedly urged to increase exports. Today a demand has fallen on all the municipalities of the country and also over all the Ministries, OSDEs and companies to increase exports, to look for and find what can be exported.<\/span><\/p>\n

It is somewhat paradoxical that a country with an open economy, with a small market, where exports should almost be the very reason for the existence of any enterprise, vocal cords must be damaged demanding more exports.<\/span><\/p>\n

First of all, exporting requires identifying a market opportunity. For Cuban enterprises, trapped between the plan and a great many regulations that don\u2019t favor autonomy, it is a difficult exercise to identify those opportunities.<\/span><\/p>\n

With the exception of some well-known exceptions, Habanos S.A., Internacional Cubana del Tabaco, Havana Club Internacional, Sherritt International, Biocubafarma, etc., Cuban enterprises have a greater tradition of waiting for an opportunity to appear than building an offensive strategy looking for those opportunities, although it is true they don\u2019t have much autonomy to do it either.<\/span><\/p>\n

Let\u2019s suppose, then, that they are able to identify that opportunity, let us even suppose that the technology of that enterprise, even without being cutting edge, allows for that production. Let us suppose more: that the quality of that demanded product can be reached by that enterprise. Then, they must seize the opportunity.<\/span><\/p>\n

This means, above all, producing what the market demands, when the market demands it and at the prices that market is willing to pay. To achieve that virtuous trinity, an institutional framework is needed that “helps,” “supports,” “facilitates” that purpose.<\/span><\/p>\n

Here we could make a small list of questions:<\/span><\/p>\n