He has done it again. Union leader Ulises Guilarte de Nacimiento spoke before the Economy Commission of the National Assembly of People's Power in Cuba, reiterating the need to "keep calling" the Cuban people to an "exercise of resistance" that goes beyond mere passivity. He emphasized the importance of mobilizing economic resources to gather everything that "contributes reserves to transform the problem," referring to the economic crisis plaguing the island, though he avoided naming it directly.
Guilarte de Nacimiento, a member of the Political Bureau of the Communist Party (PCC) and the general secretary of the Central Workers' Union of Cuba (CTC), is the same leader who, last May, assured that if people saw the country's leadership debating the issues, they would believe them, despite acknowledging that they neither had then nor have now a solution to the "distortions" affecting the population.
In his address to the National Assembly, covered by Canal Caribe, Guilarte de Nacimiento admitted that when he talks to people on the streets, "the tension is palpable." He acknowledged that the PCC leadership "has almost become accustomed to not being able to fulfill the rationed basket." He pointed out significant delays in several provinces but once again failed to offer any solutions to the problem he highlighted.
The union leader, who has not called for a general strike against the PCC despite knowing that the 5,900 pesos average national salary is insufficient to live on and that the "double-digit" inflation (which closed May at 31%) represents a "loss of purchasing power" for Cuba's one million pensioners, admits that the big dilemma is "how to find solutions to the problems, because everyone understands the what."
However, instead of demanding explanations from the Government, the union leader turned the other cheek, asserting that, in his view, the situation can be reversed by "mobilizing worker collectives" and drawing inspiration from the example set by the "first secretary of the party," Miguel Díaz-Canel. The president was seen deeply engrossed in his tablet, paying no attention to the CTC general secretary's speech.
Cuban Economy in Freefall
The Cuban crisis is severe, as evidenced by figures released by Economy Minister Joaquín Alonso. He explained that the economy had contracted by 1.9% in 2023 and spoke of a 10% decrease in GDP compared to 2019, the pre-pandemic year. The figures are even more alarming when discussing a 43% drop in the primary sector (agriculture and livestock), a 21% fall in the secondary sector, and a 5% decline in the tertiary sector.
According to Cuban television, the causes must be sought outside the island: "An environment marked by economic warfare; high international inflation, and external financial frictions." They made no mention of the Cuban government's mismanagement, although it is implied when they refer to "internal imbalances; high deficit, currency limitations, fuel and energy shortages, and high and persistent inflation." In other words, there's no money, prices are skyrocketing, and there's no fuel, so there's no solution for the blackouts.
Things are so dire that the economy minister has openly stated that all non-essential investments must be "postponed" and current spending contained because "everything that will not yield results this year or next" must be "reconsidered." Essentially, they are giving themselves a year and a half margin.
Despite this, the triumphant rhetoric of Cuban communism continues to claim that priorities for the second half of this year will focus on "increasing national food production and generating new exportable goods," without providing specifics.
As usual in these sessions of the National Assembly of People's Power, a PCC member took the floor to boast about the excellent work being done in his province. This time it was Holguín Governor Manuel Francisco Fernández Aguilera, who bragged about freeing four of the province's 14 municipalities from powdered milk consumption because they are now consuming liquid milk, without specifying its origin. They have solved the problem for 28.5% of the population; 71.5% remains, but they are satisfied. "This is an expression of what we can continue to do," he emphasized, as if the Communist Party had not been in power for 65 years without even solving the issue of a simple glass of milk.
This is not the first time that amid Cuba's inflation crisis, a communist leader dares to call for resistance from those who have been enduring hardships for six decades with the promise of a better future. Last March, Miguel Díaz-Canel himself expressed "confidence that better times will come," despite acknowledging the current situation as "critical and negative."
At the end of April this year, he urged the people to fill the squares on May 1st because, from his vantage point, he does not see the advance of hunger and poverty in Cuba. He sees "a people rising above the blockade and moving forward with their own efforts."
Díaz-Canel also missed the mark when he congratulated Father's Day by using a thermoelectric plant worker as an example, stating that in his opinion, he inspires his children to "overcome the nation's greatest challenges."
Understanding Cuba's Economic Challenges
To provide a deeper understanding of the economic challenges faced by Cuba, here are some frequently asked questions and their answers.
What are the main reasons for Cuba's economic crisis?
According to Cuban television, external factors such as economic warfare, high international inflation, and external financial frictions are significant contributors. However, internal imbalances, high deficits, currency limitations, fuel and energy shortages, and persistent inflation also play crucial roles.
How has the Cuban government responded to the economic downturn?
The Cuban government has announced that all non-essential investments must be postponed and current spending contained. They are focusing on increasing national food production and generating new exportable goods, although specifics are lacking.
What impact has inflation had on the Cuban population?
Inflation, which closed May at 31%, has led to a loss of purchasing power for the population, including Cuba's one million pensioners. The average national salary of 5,900 pesos is insufficient to live on, exacerbating the economic struggles of many Cubans.