
{"id":213687,"date":"2020-02-13T08:54:10","date_gmt":"2020-02-13T13:54:10","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=213687"},"modified":"2020-02-13T08:54:10","modified_gmt":"2020-02-13T13:54:10","slug":"questions-about-most-recent-economic-measures-in-cuba","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/echoes\/questions-about-most-recent-economic-measures-in-cuba\/","title":{"rendered":"Questions about most recent economic measures in Cuba"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The process of updating the economic model in Cuba has been in force since 2011. However, despite having implemented an important group of measures, the economy is significantly lagging:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It has a <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/economia\/cuba-incumple-su-meta-de-crecimiento-economico-en-2019\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">lower growth<\/span><\/a><span style=\"font-weight: 400;\"> rate than expected.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/cuba-priorizara-las-exportaciones-e-incrementara-el-ahorro-en-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">exports of goods<\/span><\/a><span style=\"font-weight: 400;\"> fail to expand all that is required.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Service exports have contracted primarily due to adverse conditions in the international arena.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tourism <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/turismo-a-cuba-cae-mas-de-un-9-en-2019\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">decreased in 2019<\/span><\/a><span style=\"font-weight: 400;\"> by nine percent (from 4.7 to 4.3 million), partly due to the <\/span><a href=\"https:\/\/oncubanews.com\/en\/cuba-usa\/2019-the-annus-horribilis-for-cuba-u-s-relations\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">intensification of the U.S. blockade<\/span><\/a><span style=\"font-weight: 400;\"> that has imposed new restrictive measures such as the prohibition of cruise trips to Cuba, but also due to the drop in the arrival of visitors from several countries in Europe (Germany, United Kingdom, Spain, Italy and France).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Professional services fell due to the emergence of right-wing governments in Latin America that have affected Cuban medical services. The main example is the <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/cuba-se-retira-de-programa-mas-medicos-tras-amenazas-de-bolsonaro\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">return to Cuba<\/span><\/a><span style=\"font-weight: 400;\"> of around 8,000 Cuban doctors from the More Doctors Mission in Brazil with the new government of Jair Bolsonaro. To this is added the difficult political situation faced by Venezuela, which is the first destination of Cuban medical exports.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In the search for multiple solutions that will finally boost the Cuban economy and, above all, to attract foreign exchange so necessary for this purpose, in October 2019 the Cuban government made the decision to inaugurate a network of stores for the sale of items in foreign currency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beyond opinions in favor or against such measure, the results are encouraging when verified:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An increase in establishments and an expansion of their location. There are 80 stores, distributed throughout the national territory, not only in the municipal capitals, but also in other places appropriate for this type of commerce.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The demand for the products sold in these stores is higher than planned, the most commercialized equipment being small format refrigerators, air conditioning consoles and electric motorcycles.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The insertion of national productions in this scheme.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">On February 6, <\/span><a href=\"https:\/\/oncubanews.com\/en\/cuba\/cuba-authorizes-sale-of-automobiles-with-10-percent-discount\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">the expansion of the products<\/span><\/a><span style=\"font-weight: 400;\"> to be sold on this network was announced.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Minister of Economy Alejandro Gil, this new measure arises from the exchange with the buyers who have demanded the presence of other goods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They will include, among others, security systems, electric generators, water heaters, cold stores, minibars, extraction hoods, lawn mowers, sewing machines, computer equipment such as laptops, desktop computers and computer parts and pieces.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The list confirms that this market is designed for a specific segment of demand for medium and high income, largely from remittances from abroad.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is correct to differentiate the market, only that the majority segment of the population that perceives an expansion of the social differentiation and only benefits through redistribution policies that are not so obvious should be kept in mind.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Likewise, it was announced that the possibility that individuals import through specialized state-owned enterprises, a highly anticipated modality, is being realized.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another relevant announcement is that the sale of vehicles in CUC, approved <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/se-libera-la-venta-de-autos-para-cubanos-y-extranjeros-residentes-en-cuba\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">since 2014<\/span><\/a><span style=\"font-weight: 400;\">, will now be in foreign currencies with a 10 percent discount on its current price. 85 percent of sales revenue will be used to improve public transportation.<\/span><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"rDt1IKZSdy\"><p><a href=\"https:\/\/oncubanews.com\/en\/cuba\/cuba-authorizes-sale-of-automobiles-with-10-percent-discount\/\">Cuba authorizes sale of automobiles with 10 percent discount<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Cuba authorizes sale of automobiles with 10 percent discount&#8221; &#8212; OnCubaNews English\" src=\"https:\/\/oncubanews.com\/en\/cuba\/cuba-authorizes-sale-of-automobiles-with-10-percent-discount\/embed\/#?secret=D7eNL9jwuc#?secret=rDt1IKZSdy\" data-secret=\"rDt1IKZSdy\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">This is, perhaps, the announcement that generates the most questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What real impact has the sale of cars in Cuba from 2014 to 2019 had in terms of revenue, taking into account that prices in the Cuban market far exceed those of the international market?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can an increase in demand be expected with the new measure if it is announced that such prices will only decrease by 10 percent?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What significance can the reinvestment of 85 percent of sales revenue have in improving the country&#8217;s public transportation? How many of those buses, vans or others that are needed today can be purchased based on this source of income?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is only new means of transportation needed in Cuba or is the problem certainly much greater if one considers the real state of the roads?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What temporary horizon is expected to see the results of this measure in the improvement of public transportation?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the event that there is an expansion in demand, is Cuba prepared for a greater circulation of cars, in the midst of a deep crisis with fuel supply and insufficient road infrastructure?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are just <\/span><a href=\"https:\/\/oncubanews.com\/opinion\/venta-de-carros-en-cuba-nuevas-medidas-economicas-o-mas-de-lo-mismo\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">some of the questions<\/span><\/a><span style=\"font-weight: 400;\"> that the new measures announced by the authorities generate in a public prepared to interpret them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">* This text was originally published by <\/span><\/i><a href=\"https:\/\/www.ipscuba.net\/espacios\/por-su-propio-peso\/despues-del-cero\/algunas-preguntas-para-la-economia-cubana\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Inter Press Service<\/span><\/a><i><span style=\"font-weight: 400;\">. It is reproduced with the permission of its publishers.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The process of updating the economic model in Cuba has been in force since 2011. However, despite having implemented an important group of measures, the economy is significantly lagging: It has a lower growth rate than expected. The exports of goods fail to expand all that is required. Service exports have contracted primarily due to [&hellip;]<\/p>\n","protected":false},"author":3793,"featured_media":213688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14201],"tags":[14816],"ppma_author":[34056,28932],"class_list":["post-213687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-echoes","tag-cuban-economy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Questions about most recent economic measures in Cuba | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"What real impact has the sale of cars in Cuba from 2014 to 2019 had in terms of revenue, taking into account that prices in the Cuban market far exceed those of the international market?\" \/>\n<meta name=\"robots\" content=\"index, follow, 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