• Submitted by: manso
• Politics and Government
• 12 / 16 / 2010

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The benefits of Cuba’s economic reforms will begin to show in 2013, but Cubans should brace for two years of “affectations,” a veteran economist said in an interview with official newspaper Juventud Rebelde.

“We Communists must prepare ourselves to explain with sincerity to the people the situation that lays ahead,” said Joaquín Infante, an 84-year old economist who won the national economy award in 2000. “Yes, there will be affectations in 2011 and art of 2012,” he said, adding that the benefits of economic reform will begin to show in 2013.

The government announced it will lay off 500,000 state workers by March as a first phase of 1 million layoffs, while reducing subsidized food available through the ration booklet. At the same time, it plans to grant 250,000 licenses for private businesses.

“But we have no alternative,” Infante added. “If we don’t do it, socialism will be gone.”

He criticized the “extreme centralization” of planning and said that state companies must “change completely.” They “must be allowed to walk by themselves. Workers must march seeing that their income is linked to results. And the company, after complying with its commitment for the country, must be allowed to use a part of its profits for development and stimulus.”

The flipside, he said, was that state companies will also be allowed to fail.

He added that the separation of the state and company functions was crucial.  ”If you are the government, you don’t administer. The company is the company. The government regulates, sets norms, and supervises; but it cannot be managing the economy.”

Asked what he thought was the most difficult part of the reform, he said it was the actual instrumentation and getting rid of the dual monetary system.

Infante Photo: Juventud Rebelde

Source: www.cubastandard.com/2010/12/14/economist-two-tough-years-ahead/