{"id":299556,"date":"2024-04-08T19:42:14","date_gmt":"2024-04-08T23:42:14","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=299556"},"modified":"2024-04-08T19:42:14","modified_gmt":"2024-04-08T23:42:14","slug":"cuba-at-war-with-the-economy","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/opinion\/columns\/counterbalance\/cuba-at-war-with-the-economy\/","title":{"rendered":"Cuba: at war with the economy"},"content":{"rendered":"

\u201cEverything for the front\u201d is the phrase that perhaps best symbolizes what a \u201cwar economy\u201d is. It became famous when it appeared on a poster back in 1942 during the Great Patriotic War. The phrase actually has two parts: \u201ceverything for the front\u201d and \u201ceverything for victory.\u201d In short, it meant aligning all efforts and putting all resources towards the supreme objective of defeating the Nazi army, which by that date was dangerously close to Moscow.<\/span><\/p>\n

It also meant subordinating all decisions, and the process of making them, to that objective. It also involved the variable time which, under these conditions, that of a war economy, has an incalculable marginal value.<\/span><\/p>\n

By the way, it must be said that the Nazi army could not take Moscow and the contribution of the Soviet Union to the defeat of fascism in Europe, the same that resurfaces today with various nuances, was decisive, despite the fact that the new history written from the West insists on ignoring it.<\/span><\/p>\n

It was a <\/span>magnificent article by my colleague Joaqu\u00edn Benavides<\/span><\/a>, \u201c\u00bfEconom\u00eda de guerra o mercado en la econom\u00eda?\u201d (War economy or market in the economy?), published on the blog <\/span>Segunda cita<\/span><\/i><\/a>\u00a0by Silvio Rodr\u00edguez, which prompted me to return to that concept and try to understand it in our current context.<\/span><\/p>\n

A quick Google search leads us to several definitions. This is <\/span>one of them<\/span><\/a>: \u201cThe term war economy refers to the way in which a country\u2019s economy is organized during an armed conflict. It is understood that it consists of maximizing its production and distribution capacity, which involves substantial adjustments to production that allow it to accommodate the needs of the country.\u201d<\/span><\/p>\n

\"\"<\/a>
Photo: Kaloian.<\/figcaption><\/figure>\n

Another definition, in the <\/span>Economipedia,<\/span><\/a> states that:<\/span><\/p>\n

The war economy is a war or catastrophe situation in which the government takes control of the management of economic resources. All of this implies measures such as population mobilization, rationing, production control and self-sufficiency. In line with the supply of food, the State also establishes tight control over the primary sector. Therefore, it will direct and supervise food production, paying special attention to agriculture and the food industry.<\/span><\/i><\/p>\n

If food is rationed, energy resources must still be taken advantage of. Measures are therefore taken to make the most of scarce energy resources. There have been numerous experiences in which, for example, fuel and electricity have been rationed.<\/span><\/i><\/p>\n

It is precisely, in a war, that a State must be strong enough to have the necessary resources without depending on third countries. All this leads to self-sufficiency. In other words, a country at war usually heads towards autarky.<\/span><\/i><\/p>\n

Hyperinflation is one of the great evils caused by the war economy and the intervention of monetary policy seems to be the most used resource in that situation. This story definitely has to do with our reality and not only with the current one, but with several other previous realities.<\/span><\/p>\n

An excursion through Wikipedia gives us a <\/span>synthetic description<\/span><\/a> of what a war economy can be, I quote it in extenso:<\/span><\/p>\n

The war economy is what is called when applied in historical moments of strong violent upheavals, whether or not they are armed conflicts, or in periods of extreme autarky and whose objective is to maintain the functioning of the economic activities essential for a country, to ensure self-sufficiency, discourage private consumption, guarantee food production and control the national economy from the State. Each country approaches reconfiguring its economy in a different way. Among the fundamental actions are:<\/span><\/i><\/p>\n