A rapidly deteriorating situation for Cuba’s elderly

Cuba’s elderly population, comprising over a quarter of the country’s inhabitants, is facing a severe and rapidly deteriorating economic crisis. Pension amounts are woefully inadequate, rendering them insufficient for basic necessities and forcing many seniors into informal street vending or reliance on soup kitchens. 

This dire situation is exacerbated by rampant inflation, a mass exodus of younger family members, and cuts in welfare spending. The economic hardship has led to widespread disillusionment, with many elderly Cubans feeling that the country offers “no future.” 

The crisis highlights the profound impact of long-standing economic mismanagement, U.S. sanctions, and recent events like the COVID-19 pandemic on the most vulnerable segments of Cuban society.

Important Ideas/Facts

Extreme Poverty and Inadequate Pensions:

• Cuba’s elderly live “hand to mouth,” with monthly pensions barely covering essential needs.
• The state pension, starting at 1,528 Cuban pesos per month (less than $13 at the official exchange rate, or a mere $4 on the informal market), is described as “barely sufficient to buy 15 eggs or a small bag of rice.”
• Isidro Manuet, 73, a vendor, told AFP, “I manage to live, survive, nothing more,” reflecting the widespread struggle.
• Lucy Perez, a 72-year-old economist, retired with 1,600 pesos (about $13) a month after a 36-year career, underscoring the dismally low value of pensions relative to the cost of living.

Informal Economy and Desperate Measures for Survival:

• Due to insufficient income and lack of affordable goods, many elderly Cubans resort to informal street vending, selling “fruit, coffee, cigarettes, candy, used clothes and other second-hand goods.”
• Antonia Diez, 70, sells clothing and makeup, lamenting, “Things are bad, really bad.”
• A distressing sign of the crisis is the increased visibility of beggars and “an elderly person can be spotted rummaging through garbage bins for something to eat, or sell.”

Causes of the Economic Crisis:

• The crisis is Cuba’s “deepest economic crisis in three decades.”
• Government Economic Mismanagement: Analysts attribute the crisis, in part, to “government economic mismanagement.”
• US Sanctions: Havana blames “decades of US sanctions.”
• COVID-19 Pandemic: Tourism “tanking under the Covid-19 pandemic” also contributed.
• Rampant Inflation: Inflation rose by “190 percent between 2018 and 2023,” while pensions have not kept pace, drastically eroding purchasing power.
• Cuts in Welfare Spending: The public purse has been affected, leading to “cuts in welfare spending,” further reducing support for the elderly.

Breakdown of Social Support Systems:

• Mass Migratory Exodus: Since 2022, according to the AFP, “the biggest migratory exodus in the country’s history began,” leading to many elderly Cubans being “without family support.”
• Failing Libreta System: The government struggles to provide staples through the “libreta” ration book system, which was once “the only way many people have to access affordable staples such as rice, sugar and beans — when there is any.”
• Reduced State Aid: Antonia Diez told AFP that she “used to receive an occasional state-sponsored food package, ‘but it’s been a while since they’ve sent anything.'”
• Over-reliance on Soup Kitchens: According to the AFP, “68,000 Cubans over 60 rely on soup kitchens run by the state Family Assistance System for one warm meal per day.” Eva Suarez, 78, has been attending “Las Margaritas” daily for 18 months, stating, “The country is in such need. There’s no food, there’s nothing.”

Exacerbated Inequality and Dollarization:

• Essential products are increasingly found only at “dollar stores” like Casalinda or private markets, which are inaccessible to “most Cubans” who lack US dollars.
• The “official exchange rate” and the “informal street market” rate for the Cuban peso highlight a significant disparity, with the informal rate being considerably lower, further devaluing local currency earnings.
• The partial dollarization of the economy announced in January has “angered many unable to lay their hands on greenbacks,” suggesting a deepening divide.

Widespread Disillusionment and Loss of Faith:

• The severe hardship has led some to lose “faith in communism, brought to the island by Fidel Castro’s revolution, and its unfulfilled promises.”
• Lucy Perez, the retired economist, expresses a profound sense of hopelessness: “The situation is dire. The nation has no future.”
• The suffering is not confined to the elderly; broader discontent is evidenced by “unprecedented anti-government protests in 2021” and recent student rebellions over mobile internet costs.

Information for this article gathered from Agence France-Presse (AFP).