{"id":323623,"date":"2025-05-30T18:56:42","date_gmt":"2025-05-30T22:56:42","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=323623"},"modified":"2025-05-30T18:56:42","modified_gmt":"2025-05-30T22:56:42","slug":"cuba-the-greatest-distortion-of-all-distortions","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/opinion\/columns\/counterbalance\/cuba-the-greatest-distortion-of-all-distortions\/","title":{"rendered":"Cuba: The greatest distortion of all distortions"},"content":{"rendered":"

And we\u2019ve reached the sixth month of this year. Something that was already expected has been confirmed: we still don\u2019t know how this government program to combat distortions and boost the economy is structured.<\/p>\n

At the same time, we now have the good news that Russia is preparing a multi-million-dollar financing program to stimulate investment in its companies and help them navigate the difficult task of navigating within the Cuban monetary system.<\/p>\n

The dollarization of the economy is advancing, accompanied by the expansion of stores handed over to foreign companies with permission to sell in physical dollars and with \u201creal money\u201d cards.<\/p>\n

Meanwhile, retirees and pensioners are struggling with monthly incomes that barely cover the cost of buying some 15 eggs a month.<\/p>\n

In the end, it\u2019s worth asking again: what is the program? What distortions are being talked about? What are the goals to be achieved, and in what timeframe?<\/p>\n

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

The \u201cour own problems\u201d<\/h3>\n

For now, we already know that, even with the photovoltaic parks being installed, we won\u2019t have enough energy to grow sustainably and simultaneously meet the population\u2019s demand, even though we\u2019ve lost almost two million people in just a few years.<\/p>\n

We also know that tourism doesn\u2019t seem able to take on the task of boosting the economy, of pulling those other wagons that are supposed to be harnessed to the \u201cdynamics of a sector without dynamics.\u201d<\/p>\n

A great deal of this is due to the U.S. blockade and its faithful companion: the \u201cour own problems,\u201d some regulatory, others management related, and others conception related.<\/p>\n

We also know that recovering the sugarcane industry will not be possible in the next three years, not only because the resources that this sector needs are lacking, but also because it has been depleted of people. That industry currently works with obsolete technology, and on the other hand, there are no incentives for sugarcane producers: a price that encourages them to produce.<\/p>\n

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

Agriculture, bad<\/h3>\n

There is little to add to the agricultural sector that is public knowledge, to what the results show, and what seems unlikely to change in the first six months.<\/p>\n

The technological backwardness in our agricultural sector goes hand in hand with a state-run business system that doesn\u2019t seem capable of responding to the needs of the sector and the country.<\/p>\n

And while it is true that a specific effort in short-cycle crops is possible, sectors such as cattle and pig farming will take years to recover, even if technologies such as insemination and embryo transplantation are used.<\/p>\n

What is still difficult to understand is the reluctance of decision-makers to encourage national capital investment and investment from SMEs in this sector, even more so when SMEs are asked, and sometimes required, to produce almost daily.<\/p>\n

\"\"<\/a>
Agricultural productivity dynamics and average of Cuban economy (2018 indices = 1.0).
Authors: DSc. Anicia Garc\u00eda and DSc. Betsy Anaya, \u201cSector agropecuario en Cuba: reformas pendientes,\u201d CEEC, Annual Seminar 2024.<\/figcaption><\/figure>\n

Industry, bad<\/h3>\n

In the non-sugar manufacturing sector, the situation is very difficult, affected by power outages, fuel shortages, minimal investment levels, a shortage of qualified personnel, difficulties in accessing external financing for various reasons, and technological obsolescence in many industries that are not even 1.0 in a world rapidly advancing toward Industry 4.0.<\/p>\n

In this sector, domestic efforts will not be enough; however, there are no clear signs of an industrial policy that would shed light on the future of national industry, with the exception perhaps of the biotechnology sector and the nickel industry.<\/p>\n

\"\"<\/a>
Evolution of macroeconomic indicators (2018 = 1). Authors: DScr. Carlos Lage Codorn\u00edu and MSc. Karina Cruz Sim\u00f3n, \u201cApuntes para un Programa de Estabilizaci\u00f3n Macroecon\u00f3mica,\u201d CEEC, 2024 Annual Seminar.<\/figcaption><\/figure>\n

Exhausted business system<\/h3>\n

Today, more than ever, we know that the national business system is practically exhausted, both in the state and non-state business sectors. The pressure generated by the Trump administration\u2019s persecution is compounded by the inertia of unlearned cultures, the resistance to implementing regulations that allow state-owned enterprises to \u201cbe enterprises,\u201d and the prejudices that make the non-state sector a target of ideological attacks that seek to make it the primary culprit of inequality and poverty.<\/p>\n

This evades the State\u2019s own responsibility for this due to the inadequacy of the policies adopted.<\/p>\n

All of this has a direct negative impact on our society, something that is unfortunately confirmed by this migratory flow that has deprived us of almost two million Cubans in just a few years and is also reflected in our country\u2019s decline in the Human Development Index, from 51st in 2011 to 85th in 2024.<\/p>\n

Cuba: Evolution of the Human Development Index<\/strong><\/p>\n

\"\"<\/p>\n

Facts and results<\/h3>\n

And if all this is happening and all this is known, then how is it possible that we continue to delay a profound and sufficiently critical reconsideration of this reality, which, while discrediting those responsible, questions the viability of the chosen path \u2014 the same path that must be defended with facts and results?<\/p>\n

I emphasize again that I do not doubt the tremendous effort that the people responsible for making these decisions have made and continue to make, nor the pressure to which they are subjected. They are not sitting idly by; they are working hard. But unfortunately, the results obtained do not match the effort.<\/p>\n

A few days ago, the newspaper Juventud Rebelde published an article, later reproduced in Cubadebate, in which the author makes a short list of the reasons why the Cuban State is losing.<\/p>\n

I reproduce it below:<\/p>\n

\u2014When it makes decisions without sufficient consensus that miss the mark in solving the problems.<\/em><\/p>\n

\u2014When it establishes provisions, without considering all their scope and conditions, that must later be reversed.<\/em><\/p>\n

\u2014When regulations are adopted that are subsequently violated without sufficient control.<\/em><\/p>\n

\u2014When, in a scenario that favors and requires the coexistence and coordination of various economic actors, the capacity for consensus is lost.<\/em><\/p>\n

\u2014When tax evasion, an important mechanism for wealth redistribution, occurs.<\/em><\/p>\n

\u2014When there is a failure to provide differentiated attention to those most impacted by the crisis.<\/em><\/p>\n

\u2014When its regulatory capacity is blurred.<\/em><\/p>\n

\u2014When it adopts measures to protect the purchasing power of lower-income families that end up harming them.<\/em><\/p>\n

\u2014When it announces circumstantial measures that are extended over time and remain unexplained.<\/em><\/p>\n

\u2014When serious problems are delayed in their solution and the way they are communicated does not contribute to public understanding.<\/em><\/p>\n

Furthermore…<\/h3>\n

I could add that the Cuban State also loses when:<\/p>\n

    \n
  • It delays making decisions.<\/li>\n
  • It fails to face its own mistakes and avoids self-criticism.<\/li>\n
  • It settles for reports that clearly do not reflect reality.<\/li>\n
  • Practices triumphalist communication.<\/li>\n
  • Does not transparently account to the people.<\/li>\n
  • Allows the government team to fail time and again and does not take appropriate measures.<\/li>\n
  • Constantly repeats worn-out formulas and pretends to achieve different results.<\/li>\n
  • Confuses life on social media with the social media of reality.<\/li>\n<\/ul>\n

    And if the urgent needs are so pressing, if we have been listing obstacles for years and now pursuing distortions, then is it necessary to wait for a Communist Party congress to steer the economy, society, politics, and ideology toward the growth and development of our country?<\/p>\n

    Isn\u2019t that the distortion of all distortions?<\/p>\n","protected":false},"excerpt":{"rendered":"

    As June approaches, the Cuban crisis is deepening and the details of the government program \u201cto combat distortions and boost the economy\u201d remain unknown. Who is responsible?<\/p>\n","protected":false},"author":3304,"featured_media":323632,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13075],"tags":[14816,19256],"ppma_author":[33885],"class_list":["post-323623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-counterbalance","tag-cuban-economy","tag-featured"],"acf":[],"yoast_head":"\nCuba: The greatest distortion of all distortions | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"As June approaches, the Cuban crisis is deepening and the details of the government program \u201cto combat distortions and boost the economy\u201d remain unknown. 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