The bustling commercial area of 3rd and 70th in Playa, Havana, epitomizes the stark economic and social tensions gripping Cuba today. While the store operating in Moneda Libremente Convertible (MLC) is increasingly barren, a newly opened store accepting U.S. dollars, located beneath the Gran Muthu Habana Hotel, boasts fully stocked shelves and a steady stream of customers.
A video from La Kinkalla TV highlights the decline of the MLC store, which was once a crucial option for many Cubans receiving remittances. Now, it offers a sparse selection of basic goods and appliances. Refrigerators stand empty, and those available contain few unappealing items, as the video reveals. The beverage section is particularly barren, showcasing only a few Parranda beers. The juice section is somewhat stocked, albeit lacking variety. Canned goods, pasta, and other items appear, failing to meet the comprehensive needs of the average Cuban household.
Launched in 2019, MLC stores were part of the Cuban government's strategy to attract foreign currency amidst an escalating economic crisis and shortage of essential products. These stores allow purchases using foreign currencies like the U.S. dollar or euro through magnetic cards linked to accounts in these denominations.
Rise of Dollar Stores Amid Economic Challenges
Meanwhile, the newly inaugurated dollar store, just days old, is well-stocked with both local and international products, such as processed meats, beers, soft drinks, meats, and appliances. However, the high prices exceed the average monthly salary in Cuban pesos, making accessibility difficult for most of the population. This has sparked dissatisfaction among consumers without access to U.S. currency, who criticize the growing market segmentation in Cuba.
Reports indicate some state-run stores have begun refusing payments in MLC, only accepting cash in dollars or international cards, prompting public outcry. "It's a mockery. You can't find what you need in MLC or Cuban pesos, but if you have dollars, everything seems easier," many Cubans voice on social media.
Government Justifications and Public Concerns
Cuban authorities defend the introduction of dollar stores as a necessary step to acquire foreign currency and stabilize the economy during the crisis. However, this approach has heightened inequalities in access to consumer goods, creating a parallel market that excludes many citizens.
Analysts argue that the coexistence of MLC and dollar stores highlights the dual nature of an economy increasingly reliant on foreign currencies. At 3rd and 70th, the visible disparities in queues and shopping bags reflect the underlying tensions in a country striving to navigate an uncertain economic landscape.
Economic Tensions in Cuba: Key Questions and Answers
Why are MLC stores in Cuba facing shortages?
MLC stores in Cuba are experiencing shortages due to the country's ongoing economic crisis and reliance on foreign currency, which limits the supply of goods available for purchase.
What is the impact of dollar-only stores on Cuban society?
Dollar-only stores contribute to market segmentation, increasing inequality by providing access to goods primarily to those with U.S. currency, while excluding many Cubans who lack such resources.
How are consumers reacting to the presence of dollar stores?
Consumers express dissatisfaction and frustration with dollar stores, criticizing their high prices and the exclusion of those without access to U.S. dollars, highlighting growing economic divisions.