{"id":245428,"date":"2021-11-04T00:32:59","date_gmt":"2021-11-04T04:32:59","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=245428"},"modified":"2021-11-04T00:32:59","modified_gmt":"2021-11-04T04:32:59","slug":"better-not-make-an-effort-how-much-does-welfare-affect-individual-initiative-in-cuba","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/opinion\/better-not-make-an-effort-how-much-does-welfare-affect-individual-initiative-in-cuba\/","title":{"rendered":"Better not make an effort: how much does welfare affect individual initiative in Cuba?"},"content":{"rendered":"

During the first eight months of 2021, more than 3,400 workers <\/span>requested<\/span><\/a> to be dismissed from the National Electro-Energy System (SEN). Their departure took place at the worst possible moment, when the lack of resources for maintenance and new investments had made specialists and workers the last line of defense against blackouts.<\/span><\/p>\n

The breakdowns of the old power generation plants were the fundamental reason for the power cuts that marked the national daily life throughout the summer. The irregularity of the electricity service was among the triggers of the <\/span>July 11 protests<\/span><\/a>, and has remained hanging since then as a kind of sword of Damocles. To the point of forcing the government to embark on an elaborate exercise of \u201c<\/span>energy juggling<\/span><\/a>\u201d whose premise is as simple as it is unappealable: not to affect the areas of greatest social conflict (particularly, Havana) with blackouts.<\/span><\/p>\n

In the meantime, thousands of workers were leaving the thermal power plants and other SEN units. In September, when visiting the Diez de Octubre thermoelectric plant in Nuevitas, F\u00e9lix Duarte Ortega, the head of the Department of Industries of the Central Committee of the Communist Party of Cuba (PCC), acknowledged that the matter was a cause for concern at the highest levels. \u201cFrom the Secretariat, together with the Electricity Conglomerate and the Ministry [of Energy and Mines], we have decided to seek a solution for this very complex issue. The salary cannot be only for the current concepts.\u201d<\/span><\/p>\n

Living from work, or from aid<\/b><\/p>\n

The <\/span>Task of Reorganization<\/span><\/a> altered the entire Cuban business network, which overnight faced the radical devaluation of the Cuban peso (CUP) and the need to obtain freely convertible currency to acquire equipment and raw materials. As detailed a couple of weeks ago by Cuba\u2019s Deputy Prime Minister and Minister of Economy and Planning Alejandro Gil Fern\u00e1ndez, <\/span>541 state-owned enterprises throughout the country are operating at a loss<\/span><\/a>; more than a quarter of these entities, if we stick to the <\/span>national registry of 2018<\/span><\/a>, the last year with definitive statistics on the matter.<\/span><\/p>\n

Officially, the enterprise where David (not his real name) works is not in this negative condition, but the value of his salary is not the same as a year ago. \u201cBefore, earning 2,000 pesos, I was even building; now, with more than 3,000, I can\u2019t even afford food,\u201d he laments as he dispatches the small cylinders of liquefied gas at a point of sale in the city of Camag\u00fcey. Behind him, the half-empty warehouse gives an account of the present times. Regardless of the demand, the Camag\u00fcey subsidiary of CUPET must adjust its domestic fuel deliveries to the allocations that the country can make. \u201cAnd since our salary depends on what we sell, we\u2019re in a vicious circle. Many people \u2018have asked to leave\u2019 annoyed by the situation.\u201d<\/span><\/p>\n

The fall in real wages has been the corollary of the policy of <\/span>eliminating \u201cundue gratuities\u201d<\/span><\/a> that Ra\u00fal Castro promoted at the beginning of the previous decade. At that time, David was starting his job with the incentive of a \u201csalary that was not bad,\u201d the possibility of acquiring the food and toiletry modules that the company occasionally sold, and above all to benefit from a state housing construction program. But the disappearance of the so-called \u201cCTC plans\u201d left him as the only alternative building his house through his own effort or through subsidies.<\/span><\/p>\n

The fact of having a stable income and not being included in \u201csocial vulnerability\u201d groups prevented him from qualifying for the second of those options, and forced him to undertake the project with his own resources. Meanwhile, a neighbor of his \u201cwas having more and more children\u201d and ended up receiving a new house and other public aid. \u201cI don\u2019t think we are on the right track when workers are charged with the cost of the crisis and a woman is \u2018rewarded\u2019 for letting herself get pregnant by whichever husband she has had and not even taking care of her children,\u201d he questions.<\/span><\/p>\n

The \u201c<\/span>demographic policy<\/span><\/a>\u201d was one of the few assistance programs that did not lose momentum even at the most difficult moment of the <\/span>pandemic<\/span><\/a>. In particular, regarding the delivery of real estate to large families, checkbooks of the National Institute of Social Assistance and Security, and miscellaneous articles. \u201cIn Camag\u00fcey we have around 1,700 mothers with three or more children. We must reach out to all of them and clarify when and how their housing problems will be solved,\u201d summoned the first secretary of the Party in the province, Ariel Santana Santiesteban, during <\/span>a tour of an informal community<\/span><\/a> in the capital city.<\/span><\/p>\n

\u201cI did tell everyone that, if they came to get me out, I would immediately post the eviction on Facebook,\u201d I was told by one of the neighbors of the community, built on land uprooted from the undergrowth, on the side of the Central Railroad and the El Mamb\u00ed canning factory. After the upheavals of July 11, which motivated the authorities to legalize the settlement, her goal became to obtain a subsidy and a salary as a caregiver. Many residents of the new neighborhood, among whom immigrants from eastern provinces predominate, claim to also deserve different types of help.<\/span><\/p>\n

Since the summer, President D\u00edaz-Canel and other top Cuban leaders have made regular <\/span>visits to underprivileged neighborhoods in Havana<\/span><\/a>. In all of them, they have called to listen to the population and attend to their needs. But the same practice has not become commonplace for state and private workers, or the communities in the interior of the island.<\/span><\/p>\n

If he were invited to one of those meetings, Omar, a rice farmer from the Camag\u00fcey municipality of Esmeralda, would know what to ask: \u201cHow do you expect agriculture to develop by poorly paying in Cuban pesos and selling most of the inputs in freely convertible currency?\u201d Forced by his contracts with the local rice enterprise, he sold his entire cold season harvest to the State, but that of the spring harvest \u2014 reduced due to increased costs \u2014 ended up being partially marketed \u201cunder the counter.\u201d \u201cIn the street, a pound of rice is being paid at four or five times the price of the State. If you want to cover your expenses, you have no choice but to take a risk and make use of that option.\u201d The new winter season is still a mystery to him; he will probably end up sowing just for the consumption of his family, he confesses.<\/span><\/p>\n

\u201cWelfare…is also a problem of fiscal deficit, since the State is spending its resources on programs that do not end up rewarding the economic cycle, nor signifying an increase in wealth, much less in production processes,\u201d social scientists Juan Jacobo Ospina and Catalina Palacios Escobar warned <\/span>in an investigation<\/span><\/a> for the Pontificia Universidad Javeriana de Bogot\u00e1. Based on studies by the United Nations Development Program, which relate low labor productivity to the existence of \u201cexcessive\u201d welfare policies, they come to the conclusion that \u201csupport should be given to those who need it, but at the same time it has to be done through programs that train, qualify, make them \u2018employable\u2019 and offer microcredits.\u201d<\/span><\/p>\n

Recent Latin American history is full of examples of political projects of various kinds that privileged welfare and ended up losing despite their efforts. The archetypal case is a <\/span>post-Lula Brazil<\/span><\/a>, where the Workers\u2019 Party (PT) became the target of attacks from the new middle class and some of the popular sectors that had been privileged with the aid. At the other end of the region, in Mexico, between 2008 and 2018, the 86.7% increase in <\/span>resources allocated to social programs<\/span><\/a> barely translated into a 2.5% reduction in the population below the poverty line.<\/span><\/p>\n

Cuba has its own experiences in this regard. At the beginning of the century, the Battle of Ideas consumed considerable resources without reporting a fundamental change in the dynamics of the country\u2019s development. More than twelve years after Ra\u00fal Castro put an effective end to that campaign of social intervention, dishonorably dismissing its then coordinator, Otto Rivero Torres, welfare seems to once again be the mark of identity of the Cuban government.<\/span><\/p>\n

Between economics and politics, the priorities are clear; not so much the results.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Between economics and politics, the priorities are clear; not so much the results.<\/p>\n","protected":false},"author":3882,"featured_media":245430,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14135],"tags":[14816,29161,34383],"ppma_author":[34368],"class_list":["post-245428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","tag-cuban-economy","tag-energy-crisis-in-cuba","tag-july-11"],"acf":[],"yoast_head":"\nBetter not make an effort: how much does welfare affect individual initiative in Cuba? | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"Between economics and politics, the priorities are clear; not so much the results.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/oncubanews.com\/en\/opinion\/better-not-make-an-effort-how-much-does-welfare-affect-individual-initiative-in-cuba\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Better not make an effort: how much does welfare affect individual initiative in Cuba? 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