Poverty in Cuba

By Raúl A. Sandoval González

HAVANA – In Cuba, no statistics are published about poverty.

That causes many people, both inside and outside the country, to wonder: is there no poverty? Do the statisticians consider that there are no poor people in Cuba?

This preliminary look at the issue is made through the response provided by the Cubans themselves, when they’re asked to list the three most important problems they face in their daily lives. The answer invariably includes food, housing and transportation, though not necessarily in that order.

The truth is that no country, despite its proposals and implemented policies, has solved the problem entirely. Poverty is a complex issue that has economic, social, political and ideological connotations.

Any project that attempts to study poverty should start from an analysis of people’s income. Thus, the average monthly wage in 2011 amounted to 460 pesos, with the peculiarity that the average wage of just over 43 percent of the people with jobs was lower than the abovementioned average. This average wage is equivalent to 18.42 CUC (convertible pesos) or US$21.03 if one wishes to express income in those two currencies.

The products that make the 17.40-peso monthly basket – regulated or rationed – contribute only 41.2 percent of the calories recommended as minimum nutritional requirements (2,500 per day). To achieve the appropriate level, the consumer will have to spend an additional 403 pesos (breads, pizzas, patties, eggs, farm products, etc.)

With the almost 40 pesos left from his salary, an individual must pay for his utilities (water, electricity, gas and, if available, telephone), transportation, personal and  home care products and ALL the expenses of the people who depend on him.

In its research, the Economic Commission for Latin America (ECLAC) has uniformly adopted a ratio of 0.5 between the food expenditure and the total consumption expenditure. If this proportion were valid for Cuba, then, in a first approximation, the poverty line or threshold would be around 841.40 pesos a month per person.

On the other hand, the average annual pension is 244.86 pesos. Hence, it can be assumed that all retirees and pensioners are potentially poor, except those who earn another income, either by way of remittances from abroad or by their return to work.

With respect to housing, for years the population has suffered shortages of the materials with which to minimally repair and maintain their homes, which has meant an increasing deterioration of housing. Some estimates indicate that between 60 percent and 70 percent of all houses in Cuba can be considered to be in fair or poor condition. This means that a considerable number of families, nuclei or individuals have not met that basic need.

Transportation is another problem that plagues the Cubans. After the improvement experienced by the urban public transport, especially in the capital, in mid-2010 the service began again to deteriorate severely, causing residents to spend more that 2 hours traveling from one point of the city to another in packed buses.

So, are there poor people in Cuba or not? The answer is yes, but some reflection is required.

Some surveys showed that, at the beginning of the century, poverty averaged 20 percent of the urban population and went as high as 40 percent. This author is not able to prove or disprove such figures, but can only say that a large segment of the population suffers from some form of poverty.

What happens is that poverty in Cuba has some specific connotations and differs from the better known and most extreme forms in which it manifests itself. So, there are no beggars in Cuba, or children rummaging through garbage cans for food. Education at all levels is free, as well as medical and hospital care. Social security is assured.

Poverty is experienced or suffered when the food is inadequate and does not cover nutritional requirements; when housing conditions do not meet people’s needs and they live in shelters or in other folks’ homes; when the household goods, the toiletries, clothing and footwear are unattainable because their prices are notoriously high and people’s income is not sufficient and does not correspond with the amount and quality of the work they perform; when people cannot access certain goods and services imposed by modernity; when recreation and leisure, or even buying a good book, constitute a luxury for many. All who find themselves in such conditions are, to some extent, poor.

Raúl A. Sandoval is an economist and professor at the School of Economics of the University of Havana.

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