Cuba Eases Restrictions on Consumer Buying
by
findingDulcinea Staff
Cubans now have access to products once reserved for foreigners. But few can afford them, and observers wonder if the reforms mark progress or just window-dressing.
30-Second Summary
Calling the former restrictions “excessive,” Raul Castro has lifted legal bans on Cubans buying or owning items like DVD players and computers, or staying in tourist hotels.
However, most workers can't take advantage of their new buying power. Microwaves are now legally available, but as one teacher said, "I can't [even] afford to buy food to cook in pots."
The average monthly wage in Cuba is about $17, according to Reuters. Wages are usually paid in pesos, but most merchandise is priced in convertible pesos, worth approximately 24 times more. Only 60 percent of the country's population has access to the convertible peso.
"Computers and hotels are not the top economic concern to most Cubans,” Cuba expert Philip Peters told the Christian Science Monitor. “Their salaries don't give them purchasing power to buy basic necessities."
Raul Castro, who became Cuba’s leader when his brother Fidel stepped down in early 2008, says he is considering additional steps to address financial inequalities. Plans include a new labor code that does not limit wages for people who receive state salaries, such as teachers and doctors, Reuters reported.
"The reforms introduced seem designed to make ordinary daily life easier," according to William LeoGrande, another Cuba expert at American University. "It also shows a degree of political confidence, that they can open up information flows and that it won't threaten them."
But some critics say such changes simply polish Raul Castro’s image without any real benefit to Cubans, calling instead for human rights reforms such as the release of jailed political prisoners.
"Just because they changed the government does not mean anything [else] will really change," Havana activist Georgina Noa Montes says. "It is a dog with a different collar."
However, most workers can't take advantage of their new buying power. Microwaves are now legally available, but as one teacher said, "I can't [even] afford to buy food to cook in pots."
The average monthly wage in Cuba is about $17, according to Reuters. Wages are usually paid in pesos, but most merchandise is priced in convertible pesos, worth approximately 24 times more. Only 60 percent of the country's population has access to the convertible peso.
"Computers and hotels are not the top economic concern to most Cubans,” Cuba expert Philip Peters told the Christian Science Monitor. “Their salaries don't give them purchasing power to buy basic necessities."
Raul Castro, who became Cuba’s leader when his brother Fidel stepped down in early 2008, says he is considering additional steps to address financial inequalities. Plans include a new labor code that does not limit wages for people who receive state salaries, such as teachers and doctors, Reuters reported.
"The reforms introduced seem designed to make ordinary daily life easier," according to William LeoGrande, another Cuba expert at American University. "It also shows a degree of political confidence, that they can open up information flows and that it won't threaten them."
But some critics say such changes simply polish Raul Castro’s image without any real benefit to Cubans, calling instead for human rights reforms such as the release of jailed political prisoners.
"Just because they changed the government does not mean anything [else] will really change," Havana activist Georgina Noa Montes says. "It is a dog with a different collar."
Headline Links: Financial reforms highlight Cuba’s inequalities
Even though it is no longer illegal to buy or own items like DVD players and computers, or stay in tourist hotels, many Cubans can't take advantage of their new buying power. The hotel ban was enacted to ensure social equality and restrict contact with foreigners, but the restriction came to be called a form of "tourist apartheid." According to Reuters, those who can enjoy the new privileges receive money from overseas relatives, obtain tips from tourists, run businesses or have other financial help.
Source: Reuters
Some Cubans already have DVDs, TVs and other items allowed by the new rules, since “Cuba is, in many ways, one giant black market.” But for many Cubans, survival still depends on financial assistance from overseas relatives. One woman said conditions are improving, "but we have to be able to live off of what we make. If we don't, what is the point?" Cuban human rights activists also charge that the changes are merely cosmetic, and call for deeper political reforms.
Source: The Christian Science Monitor
Reuters offers a summary of many of the reforms Raul Castro has implemented since becoming Cuba's new leader.
Source: Reuters
Opinions & Analysis: Many Cubans skeptical of changes
Some Cubans are still skeptical of the financial reforms. One Cuban worker says, "These aren't changes to our system. They are indications the government recognizes it was losing money to the black markets."
Source: Los Angeles Times
On April 2, 2008, a group of 15 Cuban immigrants washed up on Florida's shores. They left before hearing about Raul Castro's financial reforms, but claim they would have departed Cuba anyway. "You have to have money, and you can't access such things with an honorable job on the island," one refugee stated.
Source: FOX News
Background: Fidel Castro ends 49 years in power
Illness forced Cuban President Fidel Castro into semiretirement several months ago. In February 2008, he declared he would not seek another presidential term.
Source: findingDulcinea
Back in July 2007, Fidel failed to appear at Cuba's Revolution Day celebrations, touching off speculation that a return to power was unlikely. Analysts at the time anticipated that Fidel's chosen successor, Raul, would introduce market reforms despite his leftist reputation.
Source: findingDulcinea
Key Player: Raul Castro
Raul Castro converted to communism earlier than his brother Fidel, and generally has been thought to be more extreme in his political convictions. According to a BBC profile, however, Raul might facilitate a transition to a more market-oriented form of communism.
Source: The BBC
Historical Context: The Cuban Revolution
On Jan. 1, 1959, Fidel Castro's guerrillas drove out Cuba's President Fulgencio Batista. Castro’s was the longest reign of any Cold War leader. Today, a two-thirds majority of Cubans have known no other head of state. FindingDulcinea looks back on the day Castro won the revolutionary war.
Source: findingDulcinea
Reference: Cuba’s recent past and the Soviet collapse
A concise BBC overview of Cuba looks at how this nation of 11.3 million survived the loss of its major sponsor in 1990 with the collapse of the Soviet Union.








