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1. Fifty Years of Revolution in the Cuban Economy: A Brief Overview
- University Press of Florida
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1 Fifty Years of Revolution in the Cuban Economy A Brief Overview José Luis Rodríguez The triumph of the Cuban Revolution initiated a profound process of social and economic development. Achieving this growth from the starting conditions in 1959 was, however, a particularly difficult and complex process. All three of the essential characteristics of underdevelopment were highly salient in the Cuban economy: a structurally unbalanced economy, serious social problems, and absolute political subordination to the interests of American monopolies. Initial Conditions: The Cuban Economy in 1958 Immediately prior to the Revolution, Cuba’s overall economic situation can be characterized as fundamentally agrarian with a very backward agricultural system that was subordinate to the interests of American corporate capital.1 The defining activity was the production and export of sugar, based in a landownership system of large plantations (latifundios). Industry was only marginally present and was largely restricted to sugar processing. Workers suffered extremely high rates of unemployment, underemployment, and seasonally limited employment. The social dimension of Cuba’s underdevelopment was manifested in a number of socioeconomic indexes: a high rate of infant mortality , low life expectancy, poor sanitary conditions, a lack of health-care facilities , high rates of illiteracy, extremely unequal distribution of income, and very inadequate social assistance and pension systems.2 Although Cuba was not among the least developed Latin American countries, it was arguably the most dependent on and subordinate to foreign interests. These were, of course, opposed to any attempts at endogenous national development, even within a capitalist framework.3 All of these considerations together necessitated basic structural transformations in the Cuban economy, not only for any attempt 26 José Luis Rodríguez to pursue social justice, but even for any attempt to promote true economic development. Postrevolution Economic Development Strategies, 1959–1975 Even before it triumphed, the Cuban Revolution adopted the position that economic and social development are intrinsically connected. Not only is the purpose of economic growth to promote social development and human wellbeing , but also social development promotes economic growth. Furthermore, any process of authentic social and economic transformation requires active participation by the population. Changing the conditions that prevailed pre-1959 in order to enable true development demanded fundamental economic and social transformations. Because of its economic and political subordination to U.S. corporations, Cuba had no endogenous capitalism or national business class that could conceivably promote such changes. Hence only the state, guided by a socialist orientation to economic and social development, could be in the position and have the authority to direct the necessary material and financial resources to facilitate economic growth and social well-being. However, it would need to accomplish this in the face of continual active opposition from foreign capital and its internal agents and allies. The first steps in establishing a state-directed socialist development strategy that promoted the interests of the majority were to improve the distribution of income and to expand state ownership of property tied to the major means of production.4 The most important structural transformations in property ownership took place between 1959 and 1963. The Agrarian Reform Law approved in May 1959 changed the nature of Cuba’s economy. It gave about 40 percent of the arable land to the state and to small farmers. A second Agrarian Reform Law in 1963 eliminated capitalism in Cuban agriculture. Another decision with major consequences was the nationalization of all properties belonging to U.S. companies in the summer of 1960. This move was a response to the Eisenhower administration’s attempt in July of that year to bring down the revolutionary government by cutting off Cuban sugar exports to the United States. Between September and October 1960, the process of nationalization was then extended to industries and property owned by major Cuban capitalists, who were actively opposing all the ongoing changes.5 The result of these changes in property ownership was that by the end of 1960, foreign trade, banking, and wholesale trade were 100 percent state-owned, while construction and industry were each 85 percent, transportation was 80 percent , retail trade was 52 percent, and agriculture was 37 percent nationalized. [44.202.198.173] Project MUSE (2024-03-29 12:42 GMT) Fifty Years of Revolution in the Cuban Economy 27 By 1968 all of these branches were entirely state property, except for agriculture , which was about 70 percent state-owned.6 By October 1960, these fundamental reductions in private ownership of the means of production, plus many of the commitments...