Attached is a Power Point Presentation delivered at Kennesaw State University on October 24, 2019. Kennesaw Presentation on Cuban Economy, October 24, 2019
Attached is a Power Point Presentation delivered at Kennesaw State University on October 24, 2019. Kennesaw Presentation on Cuban Economy, October 24, 2019
Boulder, CO: First Forum Press, 2015. 373 pp.
By Archibald R. M. Ritter and Ted A. Henken
Review by Sergio Díaz-Briquets,
Cuban Studies, Volume 46, 2018, pp. 375-377, University of Pittsburgh Press
The small business sector, under many different guises, often has been, since the 1960s, at the center of Cuban economic policy. In some ways, it has been the canary in the mine. As ideological winds have shifted and economic conditions changed, it has been repressed or encouraged, morphed and gone underground, surviving, if not thriving, as part of the second or underground economy. Along the way, it has helped satisfy consumer needs not fulfilled by the inefficient state economy. This intricate, at times even colorful, trajectory has seen the 1968 Revolutionary Offensive that did away with even the smallest private businesses, modest efforts to legalize self-employment in the 1979s, the Mercados Libres Campesinos experiment of the 1980s, and the late 1980s ideological retrenchment associated with the late 1980s Rectification Process.
Of much consequence—ideologically and increasingly economically—are the policy decisions implemented since the 1990s by the regime, under the leadership of both Castro brothers. Initially as part of Special Period, various emergency measures were introduced to allow Cuba to cope with the economic crisis precipitated by the collapse of the communist bloc and the end of Soviet subsidies. These early, modest entrepreneurial openings were eventually expanded as part of the deeper institutional reforms implemented by Raúl upon assuming power in 2006, at first temporarily, and then permanently upon the resignation of his brother as head of the Cuban government.
In keeping with the historical zigzag policy pattern surrounding small businesses activities—euphemistically labeled these days as the “non-state sector”—while increasingly liberal, they have not been immune to temporary reversals. Among the more significant reforms were the approval of an increasing number of self-employment occupations, gradual expansion of the number of patrons restaurants could serve (as dictated by the allowed number of chairs in privately owned paladares), and the gradual, if uneven, relaxation of regulatory, taxing, and employment regulations. Absent has been the authorization for professionals (with minor exceptions, such as student tutoring) to privately engage in their crafts and the inability to provide wholesale markets where self-employed workers could purchase inputs for their small enterprises.
The authors of this volume, an economist and a sociologist, have combined their talents and carefully documented this ever-changing policy landscape, including the cooperative sector. They have centered their attention on post–Special Period policies and their implications, specifically to “evaluate the effects of these policy changes in terms of the generation of productive employment in the non-state sector, the efficient provision of goods and services by this emergent sector, and the reduction in the size and scope of the underground economy” (297).
While assessing post-1990 changes, Entrepreneurial Cuba also generated a systematic examination of the evolution of the self-employment sector in the early decades of the revolution in light of shifting ideological, political, and economic motivations. Likewise, the contextual setting is enhanced by placing Cuban self-employment within the broader global informal economy framework, particularly in Latin America, and by assessing the overall features of the second economy in socialist economies “neither regulated by the state nor included in its central plan” (41). These historical and contextual factors are of prime importance in assessing the promise and potential pitfalls the small enterprise sector confronts in a changing Cuba.
Rich in its analysis, the book is balanced and comprehensive. It is wide ranging in that it carefully evaluates the many factors impinging on the performance of the small business sector, including their legal and regulatory underpinnings. The authors also evaluate challenges in the Cuban economic model and how they have shaped the proclivity for Cuban entrepreneurs to bend the rules. Present is a treatment of the informal social and trading networks that have sustained the second economy, including the ever-present pilfering of state property and the regulatory and transactional corruption so prevalent in Cuba’s centralized economy.
While none of the above is new to students of the Cuban economy—as documented in previous studies and in countless anecdotal reports—Ritter and Henken make two major contributions. First, they summarize and analyze in a single source a vast amount of historical and contemporary information. The value of the multidisciplinary approach is most evident in the authors’ assessment of how the evolving policy environment has influenced the growth of paladares, the most important and visible segment of the nonstate sector. By focusing on this segment, the authors validate and strengthen their conclusions by drawing from experiences documented in longitudinal, qualitative case studies. The latter provide insights not readily gleaned from documentary and statistical sources by grounding the analysis in realistic appreciations of the challenges and opportunities faced by entrepreneurial Cubans. Most impressive is the capacity of Cuban entrepreneurs to adapt to a policy regime constantly shifting between encouraging and constraining their activities.
Commendable, too, is the authors’ balanced approach regarding the Cuban political environment and how it relates to the non-state sector. Without being bombastic, they are critical of the government when they need to be. One of their analytical premises is that the “growth of private employment and income represents a latent political threat to state power since it erodes the ideals of state ownership of the means of production, the central plan, and especially universal state employment” (275).
This dilemma dominates the concluding discussion of future policy options. Three scenarios are considered possible. The first entails a policy reversal with a return to Fidel’s orthodoxy. This scenario is regarded as unlikely, as Raúl’s policy discourse has discredited this option. A second scenario consists of maintaining the current course while allowing for the gradual but managed growth of the non-state sector. While this might be a viable alternative, it will have limited economic and employment generation effects unless the reform process is deepened by, for example, further liberalizing the tax and regulatory regimes and allowing for the provision of professional services.
The final scenario would be one in which reforms are accelerated, not only allowing for small business growth but also capable of accommodating the emergence of medium and large enterprises in a context where public, private, and cooperative sectors coexist (311). As Ritter and Henken recognize, this scenario is unlikely to come to fruition under the historical revolutionary leadership, it would have to entail the resolution of political antagonisms between Washington and Havana, and a reappraisal by the Cuban government of its relationship with the émigré population. Not mentioned by Ritter and Henken is that eventual political developments—not foreseen today—may facilitate the changes they anticipate under their third scenario.
In short, Entrepreneurial Cuba is a must-read for those interested in the country’s current situation. Its publication is timely not only for what it reveals regarding the country’s economic, social, and political situation but also for its insights regarding the country’s future evolution.
Table of Contents,
List of Charts and Figures
Chapter I Introduction
Chapter II Cuba’s Small Enterprise Sector in International and Theoretical Perspective
Chapter III Revolutionary Trajectories, Strategic Shifts, and Small Enterprise, 1959-1989
Chapter IV Emergence and Containment During the “Special Period”, 1990-2006
Chapter V The 2006-2011 Policy Framework for Small Enterprise under the Presidency of Raul Castro
Chapter VI The Movement towards Non-Agricultural Cooperatives
Chapter VII The Underground Economy and Economic Illegalities
Chapter VIII Ethnographic Case Studies of Microenterprise, 2001 vs. 2011
Chapter IX Summary and Conclusions
EFE, 17 de marzo de 2018 01:15 PM
Original Article: MERCADO MAYORISTA
Mercabal, el primer mercado mayorista de Cuba, abrió el sábado sus puertas en La Habana destinado inicialmente solo a cooperativas privadas no agropecuarias y con la promesa de extenderlo a los demás trabajadores autónomos de la isla, informa el diario oficial Granma en portada.
El mercado cuenta ya con 35 clientes, que tienen acceso a un descuento del 20 por ciento del precio de venta minorista en productos como frijoles, cigarros, refrescos, cervezas, azúcar, sal, confituras, hamburguesas y salchichas, muy demandados en los restaurantes, cafeterías y bares del sector privado.
El pollo, uno de los alimentos más consumidos, se rebajará hasta un 30 por ciento respecto a su precio en la red minorista, indica Granma, que reconoce que el gobierno cubano responde así a “uno de los reclamos más reiterados de quienes ejercen las nuevas formas no estatales de gestión en el país”.
Localizado por ahora solo en la capital del país, los próximos mercados mayoristas abrirán “de forma paulatina” en el resto de la isla, “una vez que esta propuesta inicial esté en óptimo funcionamiento y en dependencia de los lugares donde más trabajadores por cuenta propia existan”, señaló la ministra.
En Cuba existen hoy más de medio millón de trabajadores privados o “cuentapropistas”, acogidos a las categorías de trabajo permitidas por el gobierno cubano.
Más de 12,000 son socios de cooperativas no agropecuarias, que ya suman unas 420 en todo el país, en su gran mayoría dedicadas a la gastronomía, el comercio, los servicios, la construcción y la industria.
Ubicado en el municipio habanero de Plaza de la Revolución, Mercabal abrirá de lunes a sábado con productos de diez proveedores directos, que reabastecerán el mercado según los pedidos mensuales de los clientes.
Para poder contratar los servicios de la nueva instalación los autónomos deben tener actualizada su ficha de cliente y poseer una cuenta con tarjeta magnética, emitida por el estatal Banco Metropolitano.
La ampliación del trabajo privado -donde se incluyen las cooperativas no agropecuarias- en el 2010 ha sido una de las reformas clave del gobierno del saliente mandatario cubano Raúl Castro para actualizar el modelo socialista y reducir las abultadas plantillas del sector estatal.
Desde agosto, la isla comenzó un proceso de reordenamiento del “cuentapropismo”, dentro del que paralizó temporalmente la entrega de licencias a restaurantes privados y casas de renta turísticas, entre otras actividades, para frenar ilegalidades, “desviaciones” y “corregir deficiencias”.
Las licencias congeladas son, precisamente, las más demandadas del sector.
A pesar de que prometió que no mantendría “por un período de tiempo muy largo” esta medida, el Gobierno cubano aún no ha retomado la entrega de autorizaciones a los autónomos cubanos, que ya representan el 12 por ciento de la fuerza laboral del país.
William LeoGrande, Guest Co-editor; Arien Mack, Journal Editor
William M. Leogrande, Introduction: Cuba Looks to the Future 235
PART I: UPDATING THE ECONOMY
Ricardo Torres Pérez, Updating the Cuban Economy: The First 10 Years 255
Archibald R.M. Ritter, Private and Cooperative Enterprise in Cuba’s Economic Future 277
Richard E. Feinberg, Bienvenida—Maybe: Cuba’s Gradual Opening to World Markets 305
Katrin Hansing, Race and Inequality in the New Cuba: Reasons, Dynamics, and Manifestations 331
PART II: FACING POLITICAL CHALLENGES
William M. Leogrande, Updating Cuban Socialism: The Politics of Economic Renovation 353
Margaret E. Crahan, Cuba: Religion and Civil Society 383
Rafael Hernández, Intellectuals, Civil Society, and Political Power in Cuban Socialism 407
Ted A. Henken, Cuba’s Digital Millennials: Independent Digital Media and Civil Society on the Island of the Disconnected 429
PART III: ENGAGING THE WORLD
Philip Brenner And Teresa Garcia Castro, A Long Legacy of Distrust and the Future of Cuban-US Relations 459
Carlos Oliva Campos And Gary Prevost, Cuba’s Relations with Latin America 487
Mervyn J. Bain, Havana, Moscow, and Beijing: Looking to the Future in the Shadow of the Past 507
Presented at Florida International University, Cuban Research Institute Conference: “Beyond Perpetual Antagonism: Re-imagining U.S. – Cuba Relations.”
February 24, 2017
February 1, 2016
Since 2010, Cuba has been implementing a redesigned institutional structure of its economy. At this time it is unclear what Cuba’s future mixed economy will look like. However, we can be sure that it will continue to evolve in the near, medium and longer term. A variety of institutional structures are possible in the future and there are a number of types of private sector that Cuba could adopt. Indeed it seems as though Cuba were moving towards a number of possibilities simultaneously.
The objective of this note is to examine a number of key institutional alternatives and weigh the relative advantages and disadvantages for each arrangement. All alternatives include some mixture of domestic or indigenous private enterprises, cooperative and “not-for-profit” activities. foreign enterprise on a joint venture or stand-alone basis, some state enterprises (in natural monopolies for example) and a public sector. However, the emphasis on each of these components will vary depending on the policy choices of future Cuban governments.
The possible institutional structures to be examined here include:
1. Institutional status-quo as of 2016;
2. A mixed economy with intensified “cooperativization”;
3. A mixed economy, with private foreign and domestic oligopolies replacing the state oligopolies;
4. A mixed economy with an emphasis on indigenous small and medium enterprise.
Option 1. Institutional Status-Quo as of 2016
The institutional “status quo” is defined by the volumes of employment in the registered and unregistered segments of the small enterprise sector, the small farmer sector, the cooperative areas, the public sector, and the joint venture sector, plus independent arts and crafts and religious personnel. The employment numbers are mainly from the Anuario Estadístico de Cuba together with a number of guesstimates, some inspired by Richard Feinberg (2013). The guesstimate for unregistered employment in the small enterprise sector may seem exaggerated. However, a large proportion of the “cuentapropistas” utilize unregistered workers and a proportion of the underground economy does not seem to have surfaced into formally registered activities. These employment estimates by institutional area are presented in Table 1 and illustrated in Chart 1, which also serve as a “base case” for sketching the other institutional alternatives.
The current institutional status quo has a number of advantages but also some disadvantages. On the plus side, adhering to the status quo would avoid all the uncertainties and risks of a transition. It would maintain the possibility of “macro-flexibility,” that is the ability for the central government to reallocate resources by command in a rapid and large scale fashion. However, in view of the numerous “macro errors” made possible by a centralized command economy (the 10 million ton sugar harvest of 1970, the “New Man” endeavor, shutting down half the sugar mills), “macro-flexibility” may be a disadvantage. There are major advantages for the Communist Party in maintaining the institutional status quo in the economy, namely enabling political control of the citizenry (a disadvantage from other perspectives) and continuing state control over most of the distribution of income (also a disadvantage from other perspectives). The approach also helps foster good relations with North Korea (I am running out of advantages).
There are also major disadvantages. The centralized planned economy and public enterprise system generates continuing bureaucratization of production; continuing politicization of state-sector economic management and functioning; continuing lack of an effective price mechanism in the state sector and continuing perversity and dysfunctional of the incentive structure. The result of this is damage to efficiency, productivity and innovation.
OPTION 2. Mixed Economy with Intensified “Cooperativization”
A second alternative might be to promote the authentic “cooperativization” of the economy in a major way. This would involve permitting cooperatives in all areas, including professional activities; opening up the current approval processes; encouraging grass-roots bottom-up ventures; providing import & export rights; and improving credit and wholesaling systems for coops.
This approach has a number of advantages. First, it would strengthen the incentive structure and elicit serious work effort and creativity on the part of those in the coops. This is because worker ownership and management provides powerful motivation to work hard and profit-sharing ensures an alignment of worker and owner interests. This approach would generate a more egalitarian distribution of income than privately-owned enterprises. Cooperatives may possess a greater degree of flexibility than state and even private firms because their income and profits payments to members can reflect market conditions. Perhaps most important, democracy in the work-place through effective and genuine coops is valuable in itself and constitutes an advantage over both state- and privately-owned enterprise. [Workers’ ownership and control proposed in Cuba’s cooperative legislation is ironic and perhaps impossible since Cuba’s political system is characterized by a one-party monopoly. On the other hand it may help propel political democratization.]
The “second degree cooperatives” or “cooperative coalition of cooperatives” called for in the cooperative legislation is particularly interesting as it may permit reaping organizational economies of scale (a la Starbucks, McDonalds, etc. ) for small Cuban coops in these areas.
An emphasis on cooperatives would help to maintain ownership and diffused control and profit-sharing among local citizens, thereby promoting greater equity in income distribution.
But cooperatives also face difficulties and disadvantages. First, are they really more efficient than state and private enterprises? Generally speaking, cooperatives have passed the “survival test” but have not made huge inroads against private enterprise in other countries over the years. Perhaps this is because the “transactions costs” of participatory management may be significant. Personal animosities, ideological or political differences, participatory failures and/or managerial mistakes may occur. And for larger coops, complex governance structures may impair flexibility.
Second, Cuba’s actual complex co-op approval process is problematic and creates the possibility of political controls and biases. Certification of professional cooperatives is unclear. Also, the hiring of contractual workers is problematic
Finally, what will be the role of the Communist Party in the cooperatives? Will it keep out of cooperative management? Will Party control subvert workers’ democracy and deform incentives structures?
OPTION 3. Wide Open Foreign Investment Approach A third possibility would be to open up completely to foreign investment. This would involve a rapid sell-off of state oligopolistic enterprises to deep-pocket foreign buyers such as China, the United States (in due course), Europe, Brazil, or elsewhere. The buyers might be the Walmart’s, Lowes, Subways, or Starbucks of this world, wanting to acquire major access to the Cuban market. This is a strong possibility if existing state oligopolies (e.g., CIMEX and Gaviota) were to be privatized in big chunks. The policy requirements for this approach to occur would be rapid privatization plus indiscriminate direct foreign investment and takeovers by large foreign firms.
This approach does have some advantages.
However, there would also be disadvantages such as:
OPTION 4: Pro-Indigenous Private Sector in a Mixed Economy
A liberalization of micro-, small and medium enterprise would also be necessary to release the creativity, energy and intelligence of Cuban citizens. This would involve open and automatic licensing for professional enterprises; an opening up for all areas for enterprise – not only the “201”; permission for firms to expand to 50 + employees in all areas; creation of wholesale markets for inputs; open access to foreign exchange and imported inputs; full legalization of “intermediaries” ; and permission for advertising.
This approach has some major advantages:
Oligopoly power would be more curtailed compared to Option 3;
There would be some disadvantages with this approach.
Most likely, Cuban policy-makers in the government of Raúl Castro, the government of his immediate successor, and future governments of a politically pluralistic character will design policies that ultimately will lead to some hybrid mixture of the above four possibilities. I of course will have little or no say in the process. However, my personal preference would be for an economy resembling the structure in the accompanying chart, with a large “indigenous” private sector, a significant cooperative sector, of course a large public sector for the provision of public goods, a small sector of government-owned enterprises, and a significant private foreign and joint venture sector. So my bottom-line recommendations for current and future governments of Cuba would be:
Feinberg, Richard E., Cuba’s Economic Change in Comparative Perspective, Brookings Institution, 2013
Oficina Nacional de Estadísticas, Anuario Estadístico de Cuba, 2014
Ritter, Archibald and Ted Henken, Entrepreneurial Cuba, The Changing Policy landscape, Boulder Colorado: Lynn Rienner, 2015
This interesting proposal was brought to my attention thanks to Jose Luis Rodriguez.
Ensayo original: http://www.perfiles.cult.cu/article.php?article_id=291#sdendnote2sym
Seida Barrera Rodríguez
Un debate que comenzó con el maltrato a la propiedad social en las empresas cubanas inspiró este proyecto. Fenómeno observado desde la cercanía con las entidades visitadas como fiscal del 2005 al 2008, la búsqueda de responsables y debilidades formó parte de la cotidianidad, pero faltó la perspectiva científica. El profesor que luego se convertiría en cotutor, insistió en profundizar cada vez más en la idea inicial de la autora de mezclar otras formas de propiedad con la estatal, y sugirió la cooperativa como una de las alternativas principales.
Habiendo presentado resultados parciales en un evento, con el ánimo de encontrar una organización que reuniera los requisitos adecuados para implementarlos, una colega mencionó que en su lugar de trabajo se advertían muchas de las características de una cooperativa, por el modo en que colaboraban los distintos establecimientos y la camaradería mutua entre sus empleados. Inmediatamente fueron solicitados contactos y entrevistas, y así se arribó a la Empresa de Producciones Industriales Cabildo, en lo adelante Cabildo. Su máximo dirigente, una persona de pensamiento flexible y vanguardista, enseguida se entusiasmó con la posible conversión de uno de sus talleres hacia una empresa mixta, donde el Estado cubano sería copropietario y cogestor con una cooperativa formada por trabajadores de la propia entidad. Para lograrlo, sería imprescindible el registro del proyecto como piloto para su seguimiento durante al menos un año.
Cabildo es una de las nueve empresas que gestiona la Oficina del Historiador de la ciudad de La Habana y no se encuentra en perfeccionamiento empresarial. Está conformada por quince talleres y una oficina central; su objeto social es muy variado: abarca desde el diseño de interiores hasta la costura, pasando por la fundición de las bellas farolas que iluminan esa parte de la ciudad, o la elaboración de banderas. En pocas palabras, sus empleados toman los inmuebles recién reparados o acabados de construir, y los proveen de todo lo necesario: muebles, lencería o pintura, intentando mantener el espíritu del casco histórico.
Los motivos para enfocar los esfuerzos en este frente pueden explicarse con la ayuda de las estadísticas: el 77% de los ocupados en la economía son trabajadores estatales, 3 millones 873 mil, por lo que constituye la mayor fuerza de trabajo a nivel nacional, y se encuentra tan necesitada de incentivos como los sectores cooperativo y privado, que solo representan el 23%.1 Además, en sus manos se encuentran la mayoría de los medios de producción que, conjuntamente con el capital humano, son las claves para incrementar los indicadores de productividad. Por último, existe carencia o debate sobre propuestas concretas en el sector, lo cual se confirma por el silencio de los legisladores, y la creciente flexibilización de las formas de gestión no estatales.
Esta brevísima introducción resume dos años de búsqueda de fundamentos teórico-metodológicos. Perseguimos el diseño, puesta en funcionamiento, legalización y seguimiento de cooperativas de producción y servicios a nivel local; con ello pretendemos seguir el Lineamiento 25 de la política económica y social, que promueve la creación de cooperativas en diferentes sectores de la economía.2
Leer mas: EMPRESA MIXTA ESTADO-COOPERATIVA
Cooperativa de Omnibus Aliados, cerca 1952
POR Mirta VUOTTO Revista de Estudios Cooperativos (REVESCO), Universidad Complutense de Madrid El link al ensayo es REVESCO Mirta VUOTTO, COOPERATIVAS CUBA RESUMEN
La contribución de las cooperativas se ha puesto en evidencia desde la década del 70 como principal línea de desarrollo en la producción agropecuaria de Cuba. En contraste, el reconocimiento de las cooperativas urbanas ha sido tardío, aun cuando fuese percibida la necesidad de transformaciones basadas en la realización de la propiedad en diversos escenarios territoriales.
El artículo analiza los procesos de reforma impulsados en Cuba desde la primera década de 2000 centrándose en las iniciativas tendientes a la promoción, constitución y desempeño de las cooperativas no agropecuarias (CNA). Se examina el potencial y limitaciones propias de las experiencias recientes para reflexionar sobre los procesos y transformaciones organizacionales desde la perspectiva de sus miembros.
A modo de conclusión el análisis plantea interrogantes ace ca de la aptitud de estas cooperativas para sustraerse del impacto de circunstancias anteriores y sobre su capacidad para consolidar estrategias diseñadas por los cooperadores que tiendan a fortalecer los principios de adhesión voluntaria y autonomía en que se fundan estas organizaciones.
Contribution of co-operatives has been demonstrated since the 1970s as the main development line in agricultural production in Cuba. In contrast, there has been a late recognition of urban co-operatives, even if the need of transformations based on the realization of property in different territorial scenarios had been identified. The article analyses the reform processes launched since the first decade of the 21st century focusing on the nature of the initiatives fostering formation and promotion of nonagricultural co-operatives including follow up of their performance.
The potential and limitations of the recent experiences are examined in order to reflect on the organizational processes and transformations from the point of view of their members.
To conclude, some questions are posed about whether these co-operatives are capable of avoiding the impact of earlier employment circumstances and of developing strategies aimed at reinforcing voluntary membership and autonomy on which they are founded.
By Mimi Whitefield, Miami Herald, September 2, 2015
Complete Article Here: The Purita Cooperative
Carlos Fernandez, Founder of the Purita Cooperative
Original Essay Here: Cuba Study Group, http://www.cubastudygroup.org/File_id=9ce1d57b-2598-4c7c-91bf-4a9b135a718a
Full Article Here: Yailenis Mulet Non-Agricultural Cooperatives in Cuba
Dr. C. Yailenis Mulet Concepcion
November 7, 2013:
Starting in 1959, when Fidel Castro came to power, countryside cooperatives were established as a way of increasing and developing Cuban agriculture. There are currently more than 5,000 such cooperatives, but for the first time in half a century, urban cooperatives have been authorized as part of the economic plan initiated by the adoption of the economic and social guidelines of April 2011.
The upgrading of cooperativism, which is part of a larger effort to update the Cuban economic model, seeks to enhance efficiency and productivity in the country. With this goal—of achieving greater efficiency in economic activity—the Cuban state has been forced to decentralize the operation of state enterprises and to allow new forms of non-state management. In that environment, urban cooperatives are an alternative with certain noteworthy advantages, but also unquestionable weaknesses since experiences with agricultural cooperatives have so far been mixed.
Urban cooperativism is part of a government program aimed at bringing the non-state sector to “contribute” close to 45% of Gross Domestic Product (GDP) by the end of a five-year period, something that is somewhat doubtful in light of the enormous sluggishness of the program. Approvals for private activity and cooperatives across the country need to be accelerated.
The first non-agricultural cooperatives launched operations just a few months ago. It would be premature to speculate on this new form of management and its role within the updating of the Cuban economic model. Nevertheless, some important aspects can be underlined:
Urban cooperativism is part of a government program aimed at bringing the non-State sector to “contribute” close to 45% of Gross Domestic Product (GDP) by the end of a five-year period.
The establishment of urban cooperatives is a special response to the following guidelines for economic and social policy adopted by the Sixth Congress of the Cuban Communist Party:
Guideline 02: “The management model recognizes and encourages socialist state-owned enterprises, which are the primary structure of the national economy, but also the foreign investment entities stipulated by law (e.g., joint ventures and international association contracts), cooperatives, small farming, usufruct, franchising, self-employment and other economic entities that may altogether contribute to increased efficiency.”
Guideline 25:“Grade 1 cooperatives shall be established as a socialist form of joint ownership in various sectors. A cooperative is a business organization that owns its estate and represents a distinct legal entity. Its members are individuals who contribute assets or labor, and its purpose is to supply useful goods and services to society, and its costs are covered with its own income.”
Cooperatives may be established by natural persons, self-employed or salaried workers, and state-run organizations which decide to change the management structure of their entity to that of a cooperative.
The aim is to improve management structures in sectors that directly impact the population and that have been inefficient for years. At the same time, the State can gradually shed activities that are non-essential to economic development or that have been plagued by productive inefficiency been inefficient for years. At the same time, the State can gradually shed activities that are non-essential to economic development or that have been plagued by productive inefficiencies.
Continue Reading: Yailenis Mulet Cooperatives Cuba
Yailenis Mulet is Doctor of Economic Studies at the Center of the Cuban Economy of the University of Havana. She is also Assistant Professor at the University of Havana and holds a Bachelors in Economics from the University of Holguin (2004). She has given several lectures at various institutions, both in Cuba and abroad, including the United States, Spain, Brazil and Norway.
She has completed approximately 32 professional projects related to assessments, consulting and applications in the business sector, with an emphasis on business intelligence services.Ms. Mulet has served as an advisor for 41 theses and seven master’s theses. Currently she advises five PhD theses related to the topics of Decentralization and Territorial Development. She has published over 25 articles in renowned sources in both Cuba and abroad. She has also taught graduate courses in the business sector, which emphasize managerial training on issues related to business intelligence.
Ms. Mulet has directed several business projects related to the implementation and development of business intelligence surveillance systems and management of cooperatives. Since 2010, she has focused her research on “Decentralization and Territorial Policies” and is currently involved in several research projects related to this topic.
The 2015 Taxi Rutero Cooperative