Beneficial measures or propaganda cosmetics?
Without
any noise or announcements in the Cuban press, the government several
days ago lifted the regulation that prohibited nationals to stay in
hotels. This restriction, which was much criticized by Cubans, was
instituted in the late 1980s, when Cuba opened itself to foreign
tourism, a source of hard currency. Because of the shortage of
accommodations, Cuban citizens were barred from hotel rooms.
According to the official stance, hoteliers had to give priority to
the foreign visitor who brought hard currency into the country, hard
currency that was indispensable for Cuba’s development.
Later
came the big crisis of the 1990s, known as The Special Period,
created by the collapse of the socialist camp. To deal with the
crisis, the government implemented discreet measures of aperture in
the economy, such as limited decentralization,…
From
Havana Read Spanish Version
Beneficial
measures or propaganda cosmetics?
By
Manuel Alberto Ramy
maprogre@gmail.com
Without
any noise or announcements in the Cuban press, the government several
days ago lifted the regulation that prohibited nationals to stay in
hotels. This restriction, which was much criticized by Cubans, was
instituted in the late 1980s, when Cuba opened itself to foreign
tourism, a source of hard currency. Because of the shortage of
accommodations, Cuban citizens were barred from hotel rooms.
According to the official stance, hoteliers had to give priority to
the foreign visitor who brought hard currency into the country, hard
currency that was indispensable for Cuba’s development.
Later
came the big crisis of the 1990s, known as The Special Period,
created by the collapse of the socialist camp. To deal with the
crisis, the government implemented discreet measures of aperture in
the economy, such as limited decentralization, decriminalization of
the possession of foreign currency and opportunities for small
private initiatives. During that period, tourism became the engine of
the economy and the principal source of hard currency. The sector
grew at a spectacular rate, including the construction of hotels. But
this situation reduced the possibility of Cubans to stay in tourist
hotels. This time, the explanation was that the government did not
want to encourage inequalities.
Other
modalities were created for the Cubans, such as the so-called
"Popular Camping." As camping facilities have expanded and
improved, the demand for them has been greater (but their quality
lesser) than that of the facilities reserved for foreign tourism.
The
hotel ban — which displeased people because they considered it
discriminatory, even if they could pay for it in hard currency — is
over. It was one of the decisions President Raúl Castro
announced would be made in the weeks following his inauguration. And
so it was.
To
confirm the news, which (I repeat) was not reported in the press, I
phoned the Hotel Nacional de Cuba. I was told that any Cuban who can
pay in convertible pesos (CUC) can stay there. I got the same answer
from other hotels managed by foreign chains. A source at the Ministry
of Tourism assured me that all hotel facilities in the country,
without exception, will admit any Cuban who can pay in CUC. The
permission extends to car rentals, which until this week were
available to foreigners only.
Before
this measure was taken, it became known that Cubans could buy and
operate cellular phones, another prohibition. Nationals can also
purchase computers and mopeds, as well as assorted home appliances,
such as DVDs and microwave ovens.
Some
foreign media speculate that the measures are only cosmetic, lacking
in depth. However, they are measures that are clearing the air and
setting the tone for a fresher policy that, in economic terms, will
bring a large volume of convertible pesos to the national treasury (1
dollar is equal to 0.82 CUC.)
We
mustn’t forget that some productive sectors receive part of their
payments in CUC, such as the tobacco growers, some of whom have
earned between 18,000 and 25,000 CUC per harvest. Nickel producers,
numerous musicians and artists, and dairy farmers also are paid in
convertible pesos. The strategic objective is not to bury the money
but to shift it within a market of useful goods, thus spurring
production and productivity.
Those
readers who wish greater detail should go to the fields and check
what is happening in the agro sector. Milk producers are receiving
more than twice what they used to get for each liter of milk. It used
to be 95 cents of a national peso; now it is 2.45 or 2.48 pesos per
liter, plus a few CUC cents as an incentive. If the farmers are good
producers, they are granted additional stretches of land for
cultivation.
An
item in the daily Granma on March 31 announces that greater authority
will be given to municipal agricultural delegations. The objective is
to increase autonomy in the decision-making process, so that
decisions will correspond to the characteristics of each region. That
autonomy implies commercialization, which means that the state-run
monopoly (the collection and distribution enterprise known as Acopio)
will have to coexist with other commercializers.
A
careful look at the national panorama indicates that reality is
beginning to move, gradually and combining more simple and feasible
measures with steps like those being taken in the agro sector.
As
to the "cosmetics," the international media and some
"Cubanologists" abroad have minimized the importance of the
sale of electronic goods and the opening of hotels to nationals. They
say few Cubans will have an opportunity to take advantage of the
situation, because they lack hard currency. They complained before,
when Cubans couldn’t, and they complain now, when Cubans can.
I
have no way to tell how many Cubans will buy plasma-TV sets or stay
in hotels, but a source connected to academic circles (which Progreso
Weekly has contacted on other occasions) told me that the population
is believed to hold about 200 million CUC and 21 billion national
pesos, the currency in greatest circulation (1 CUC equals 24 pesos).
The same source told me he personally knows farmers who hold between
1 million and 4 million pesos in bank accounts. Figure it out: a
total of US$1.1 billion not being used.
That
money will soon begin to circulate, to be used for tourist
relaxation, for the purchase of goods and, in the case of farmers and
cattlemen, for reinvestment. If, in addition, the farmers and
cattlemen begin to receive more money for their products, there will
be more money in circulation. And more products. And, in Cuban
society, the money collected will not go into private pockets or bank
accounts in fiscal havens but will be recirculated for the people’s
benefit.
More
food, more products, better social services. That’s precisely what
the people 90 miles to the north do not want to see. So, are the
measures cosmetic or must they be discredited?
Manuel
Alberto Ramy is Havana bureau chief for Radio Progreso Alternativa
and editor of Progreso Semanal, the Spanish-language version of
Progreso Weekly.
**
Germán Piniella contributed to this report.
