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Cuban Government Claims Progress with Economic Measures Amid Ongoing Struggles

Wednesday, September 18, 2024 by Isabella Rojas

Cuban Government Claims Progress with Economic Measures Amid Ongoing Struggles
Manuel Marrero Cruz - Image of © X / @GobiernoCuba

"When you're lost, go with the flow," says a Spanish proverb, suggesting that once an action has begun, one must see it through despite its risks and consequences. This expression aptly reflects the Cuban government's latest measures to "correct distortions and boost the economy."

According to the Instituto Cervantes, the proverb is used to indicate that, in a very difficult situation, one opts for the most desperate solution—akin to jumping into a river to escape an advancing enemy or a fire. The leadership of the Cuban regime must be familiar with this expression, given the messages emanating from the so-called "revolution" headquarters, which reveal the desperation of Miguel Díaz-Canel's government and its futile efforts to demonstrate that its economic measures are working and that the country is "progressing."

This past Monday, the Council of State "analyzed the progress of the implementation schedule of the government's measures to correct distortions and boost the economy in 2024." According to Granma, Prime Minister Manuel Marrero Cruz presented a report from the government's economic group on the implementation of actions approved to "correct distortions and boost the economy."

Economic Measures Under Scrutiny

What are the conclusions of this group regarding the measures approved after the failure of the so-called "economic reordering"? Despite all empirical evidence, Díaz-Canel's experts and advisors concluded that "progress has continued in the projections aimed at reactivating national production."

Not only that, but according to Marrero Cruz, there has also been progress in "generating foreign currency income for the country, the macroeconomic stabilization program, budgetary discipline, and reducing the fiscal deficit." Additionally, advances have been made in "promoting exports and reducing imports, strengthening the socialist state enterprise as the primary actor in the Cuban economy, and the process of banking reform, among other issues affecting the population and the country's economy."

However, if all these measures are advancing, why did Energy and Mines Minister Vicente de la O Levy acknowledge in early September the failure of the government's strategy to avoid summer blackouts? And why did Marrero Cruz himself admit in mid-July that there were insufficient resources to maintain the regulated family basket? "Almost all the products in the family basket have to be imported, and this is the priority when allocating foreign currency for investment," he said.

If progress is being made, why did the regime present a new package of measures in early July to correct distortions and boost the economy during 2024, focusing on adjusting the 2024 Plan and Budget to "wartime economy" conditions? Additionally, the regime itself acknowledged in June that it was not progressing in tackling crime. Marrero Cruz admitted that crimes and illegalities were increasing because "we are not advancing in identifying and eliminating the causes and conditions that favor these phenomena."

In late May, the regime also recognized its inability to meet the basic needs of the population, including health, food, energy, and transportation. This was expressed by Johana Tablada de la Torre, Deputy Director-General of the U.S. Directorate at the Ministry of Foreign Affairs (MINREX). She stated, "[We are] in an almost unprecedented situation of being unable to meet the basic needs of our population. In all areas, transportation, food, wages," and blamed the "blockade."

What was Díaz-Canel doing in mid-April acknowledging the transportation disaster in Cuba? And what was Marrero Cruz doing days earlier, recognizing the failure of the banking reform process and the fiasco of the official exchange rate set for foreign currencies as part of the "economic and monetary reorganization"? But isn't progress being made in banking reform?

Who can understand this "progress" when Díaz-Canel himself acknowledged in early April that the country's situation is critical and asked the people to trust the future? He said in his podcast Desde la Presidencia that the public opinion of Cubans about the country's situation, shortages of food, and the basic basket is "critical and negative." Who can understand this?

Nevertheless, he assured that better times would come, as long as the people know how to offer alternatives, work hard, strive, and make use of what he calls "creative resistance."

What was the Secretary-General of the Central Union of Cuban Workers, Ulises Guilarte de Nacimiento, doing around the same time, admitting that the Cuban regime also fails to pay wages to workers and pensions to retirees due to the lack of cash? And what was the First Deputy Minister of Economy and Planning, Mildrey Granadillo de la Torre, doing acknowledging that "the expected effect has not been achieved" after the fuel price hike?

And what was De la O Levy doing in mid-March, accepting that Cuba was experiencing a "complex energy scenario," and assuring that the situation would improve in April? Around the same time, Marrero Cruz referred to the public opinion about the uncontrolled price increase and called for effective solutions to stop the inflationary spiral. Is that progress?

"With these measures, little by little, we will reorder the economy. With these measures, little by little, we will move towards a better situation, and we will open the definitive path to the prosperity and development that this heroic people deserve," said the leader in January after approving the "package."

In mid-January, he also said, "You can make proposals. If anyone thinks there are other things we can do to improve the country, we will do them. We need the situation to change in 2024 from what we have experienced in the last three years, for reasons you know." Around that time, he also said that the "economy does not function to the measure of everyone's needs and desires."

Given everything, it seems that Cuba is also not "progressing" to the measure of everyone's needs and desires. The proverb "When you're lost, go with the flow," according to the Instituto Cervantes, is the option left to the desperate, leading to indifference or the most absurd idea representing the only solution.

Understanding the Cuban Government's Economic Measures

In light of the Cuban government's claims of progress and the ongoing struggles faced by the country, it is important to delve deeper into the implications and effectiveness of the measures being implemented. Here are some frequently asked questions and their answers to provide further clarity.

What measures has the Cuban government implemented to boost the economy?

The Cuban government has implemented measures aimed at correcting economic distortions, promoting exports, reducing imports, strengthening socialist state enterprises, and improving banking reform, among other initiatives.

Why did the Cuban government acknowledge failures in energy and transportation sectors?

Despite claiming progress, the Cuban government admitted failures in the energy and transportation sectors due to insufficient resources and the complex energy scenario, as well as the inadequacy of their strategies to prevent blackouts and maintain essential services.

How has the public responded to the Cuban government's economic measures?

The public opinion in Cuba has been critical and negative, particularly regarding the shortages of food and basic necessities, indicating a lack of trust in the government's measures and their effectiveness.

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