{"id":242662,"date":"2021-08-18T14:43:02","date_gmt":"2021-08-18T18:43:02","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=242662"},"modified":"2021-08-18T14:43:02","modified_gmt":"2021-08-18T18:43:02","slug":"the-ghost-of-the-socialist-state-enterprise","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/the-ghost-of-the-socialist-state-enterprise\/","title":{"rendered":"The ghost of the Socialist State Enterprise"},"content":{"rendered":"

The Cuban government recently ratified the Socialist State Enterprise as the main actor in the Cuban economy. This was endorsed in <\/span>Decree Law 34\/2021<\/span><\/a> published in the <\/span>Gaceta Oficial<\/span><\/i> of May 7 on the Cuban State Business System.<\/span><\/p>\n

After more than 60 years without finding the path for Cuban business efficiency, the island\u2019s government insists on perpetuating an obsolete economic structure that has been excluded or even reduced in the economies of the few countries that declare themselves socialist in the world: China and Vietnam specifically.<\/span><\/p>\n

For several years, especially after the fall of the socialist camp in Europe, the managers of the Cuban government have been trying to find the way without having resolved the fundamental problems, in my opinion, of the Cuban economy, apart from the U.S. <\/span>blockade<\/span><\/a>. Some of these problems are: the technological obsolescence of the Cuban industry; the eminently agricultural base of the economy that has not even solved the problem of basic food for the population; the lack of access to financing sources and markets; the divorce from international standards for Cuban products and services; the little knowledge of the demands of the domestic and international market; the commercial imbalance of the country; the growing public debt; inflation and the increase in social spending, among others.<\/span><\/p>\n

These factors depend only in part on the real and objective impact of the U.S. economic and financial <\/span>blockade<\/span><\/a> on the island. To a large extent, they are the result of the inefficiency and lack of definition of an economic model for which efforts have made to adapt it to the conditions of Cuba, but which has not taken into account the functioning of the world economy for its design and implementation.<\/span><\/p>\n

With the implementation of the so-called <\/span>Task of Reorganization<\/span><\/a> in January 2021, these and other shortcomings and weaknesses of the Cuban economic and business system were exposed. In this framework, some technocrats and officials of the island\u2019s state sector have begun to enunciate new pretexts to justify the economic inefficiency that is added to the impact of the blockade. The prolongation of the <\/span>COVID-19<\/span><\/a> pandemic for more than a year and a half and the elimination of important sources of income for the country\u2019s economy, such as tourism, have been framed by the official Cuban discourse as the responsibility of the crisis, and brought to bear, in fact, the vulnerabilities of the Cuban economic machinery.<\/span><\/p>\n

Task of Reorganization in Cuba: beyond the survey<\/a><\/p><\/blockquote>\n