CUBA: Inklings of Economic Reform

By Patricia Grogg

HAVANA, Mar 20 (IPS) - Farmers in Cuba can now buy their own supplies -- a departure from a
decades-old system clogged with red tape in which the state assigned them inputs, and an
important first step towards bolstering food production, say experts.

Academic sources consulted by IPS see the measure as more far-reaching than a lifting of the
restrictions that keep Cubans from purchasing computers, microwave ovens and other electrical
appliances, a move that is apparently imminent but has not yet been confirmed by the government.

"The free sale of farm supplies implies a structural change in the countryside," said one expert, who
noted that the new procedure has already been put in practice in some towns and that stores are
being opened for the purpose around the country.

Initially, the farmers will buy their tools, irrigation equipment, fertiliser, fencing, work clothing like boots
and other supplies in the government’s hard currency or former dollar stores, where they can only pay
in "convertible pesos", known as CUCs or "chavitos".

Nevertheless, the measure is a first step away from "the concept of centralised distribution of
supplies, and links farmers more directly to the production levels that they achieve," said the expert,
who asked to remain anonymous.

In the government exchange bureaus, one CUC is traded for 25 Cuban pesos or 1.25 U.S. dollars.

"I can now only buy what I am assigned by the Cooperative (of Credit and Services), which does not
always receive all of the supplies that we need. But in these stores that are going to open, we’re
supposed to be able to directly look for what we need, without worrying about red tape," said a farmer
who sells his produce in a Havana farmers market.

Rubén Torres, a small farmer from Villa Clara, 268 km from the capital, told IPS by phone that he had
not yet heard about the new measure, although Agriculture Ministry officials in that province had said
that they would eliminate the bureaucratic mechanisms standing in the way of increasing production.

"The fields can’t wait till tomorrow when an input is needed," said Torres. "That’s why it is important to
be able to obtain supplies without being blocked by red tape."

The expert said he knew the measure would be expanded throughout the entire country.

"This measure and others will be put into practice gradually and discreetly, without public
announcements or coverage in the local press," he said. "Agriculture is one of the sectors in most dire
need of change, which is the only way to boost food production."

According to official figures, Cuba spends one billion dollars a year on imports of basic food items,
which are sold to the public at subsidised prices by means of the "ration book" system that guarantees
all Cubans access to a basket of staple food products at extremely low cost.

As interim president, Raúl Castro stated in a now famous July 2007 speech that it was absolutely
essential to strengthen agricultural productivity in Cuba and give farmers incentives to boost the low
production rates, and he said that all of the necessary changes would have to be introduced to
achieve those goals.
When he permanently succeeded his ailing brother Fidel on Feb. 24, Castro announced that some
bans and legal restrictions that "do more harm than good" would begin to be eliminated "in the next
few weeks."

His words prompted a flurry of speculation about the changes that might be adopted to alleviate the
difficulties plaguing Cubans in their daily lives.

In response to questions, the secretary of culture in the ruling Communist Party’s Central Committee,
Eliadas Acosta, admitted Wednesday to journalists that the government is studying a number of
measures "that the people expect and need," although he did not specify what they were.

"They are being analysed and will be put into effect as soon as possible," said Acosta.

An employee at a state-run CIMEX store confirmed to IPS that at an as-yet unspecified date,
computers and a number of other electronic appliances currently off-limits to Cubans would begin to
be sold freely.

"We know it’s coming, but we don't know when, maybe in a few months," said the employee, who
preferred not to be named.

A memorandum circulating among the foreign press and people with access to email in Cuba states
that "based on the improved availability of electricity," the government "has approved the sale of some
equipment that was prohibited."

The dismantling of the restrictions will take place in three stages, from now to 2010, adds the
document, described by the foreign press as an internal government document.

In the first stage, sales will be permitted of computers, 19-24 inch TV sets, VCRs, pressure cookers,
microwave ovens, electric bicycles and car alarms.

According to the memo, the ban will first be lifted in the capital, in three CIMEX shops, where goods
are sold in CUCs.

CUCs are basically available to Cubans who receive remittances from relatives abroad or who work in
tourist-related areas or for foreign companies operating in Cuba in joint ventures with the Cuban state.

Earlier this year, Cuba’s dairy farmers began to receive two cents of a CUC per litre of milk sold to the
state, to go towards purchases of supplies.

"Facilitating access by farmers to other goods and services would also be recommendable," said the
expert who talked to IPS.

Many believe that sales of electronic and home appliances will have a more psychological than
practical impact.

"I don't have ‘chavitos’, to be able to buy things like that, but I’m glad to know that I could do so
someday," said university student Maribel Cuesta.

Another academic pointed to different aspects of the measure. "We will see a more diverse choice of
products, shifts in spending by Cuban families, new work incentives, a greater inflow of revenues into
the state coffers through increased sales, and, above all, more options for Cubans," Juan Triana, a
researcher at the Centre for Studies on the Cuban Economy, told IPS. (END/2008)
Cuba emprende nueva reforma agraria
La entrega masiva de tierras ociosas, mejores precios para los productores y la
descentralización de la toma de decisiones en la materia serán los ejes de la nueva política.

AFP
Publicado: 01/04/2008 14:47

La Habana. Entrega masiva de tierras ociosas, mejores precios a productores y

descentralización de decisiones es el trípode de la nueva reforma agraria emprendida por
Raúl Castro en Cuba para aumentar la producción de alimentos. Las Delegaciones de
Agricultura, que se están constituyendo hasta el 10 de abril en los 169 municipios del país,
son la pieza clave en el proceso de descentralización de decisiones.

A partir de "un nuevo concepto" esas delegaciones "tendrán facultad para tomar decisiones y
asumir responsabilidades" y deben poner en explotación "toda la tierra" y "perfeccionar la
comercialización", dijo el diario oficial Granma.

Por boca de Fidel y Raúl Castro "los problemas actuales de la sociedad cubana requieren más
variantes de respuestas para cada problema concreto que las contenidas en un tablero de
ajedrez", lo que explica la "municipalización" de las soluciones.

De las 3.5 millones de hectáreas cultivables de la isla, el 32.6 por ciento pertenece a pequeños
propietarios o a las Cooperativas de Producción Agropecuarias (CPA), 42 por ciento son
Unidades Básicas de Producción Cooperativa (UBPC, cooperativas en tierras estatales en
usufructo) y el resto empresas estatales.

Pero de esa superficie, "el 51 por ciento está ociosa o deficiente explotada", según fuentes
oficiales, un grave problema en momentos de alza de precios internacionales de los
alimentos, en cuya importación la isla invierte mil 500 millones de dólares anuales.

"Ya comenzó la entrega masiva de tierras ociosas" dijo a la televisión Orlando Lugo Fonte,
miembro del Consejo de Estado y presidente de los agricultores pequeños (ANAP), quien
anunció incrementos de precios vigentes en la compra a los productores de papa y otros
tubérculos, leche, raíces, hortalizas, café y coco.

El precio de compra de la leche subió 150 por ciento en moneda nacional y dos centavos de
dólar por litro. "Estamos estimulados", dijo el vaquero Ángel Valdés, del Mariel, 50 km al
oeste de La Habana. Interrogado sobre cómo repercuten en su vida estas novedades, dijo que
"eso es lentamente, pero ya irá cambiando".

Silvino Valdés, de cooperativista de Güira de Melena, 45 km al sur de La Habana, comentó

que "con este sistema de beneficio a los precios de los cultivos la fuerza de trabajo se
estabiliza".

Las tierras ociosas son estatales y muchas veces cubiertas por marabú, un árbol de madera
muy dura que se reproduce con facilidad, creando bosques impenetrables. Estas tierras se
entregan en usufructo a particulares, cooperativas e incluso a algunas UPBC, "toda la que
soliciten, eso ya está" en marcha, dijo Lugo Fonte. "A todo el que quiera producir tabaco, se
le presta tierra para producir tabaco, en el caso de café igual", agregó.

El caso más difícil parece estar en las UBPC. Creadas en 1993 como parte de las reformas,
existen mil 300 que ocupan el 42 por ciento de la tierra.

El viceministro de la Agricultura, Alcides López, anunció que las UBPC "recibirán un crédito
específico que les permitirá elevar la capacidad técnica, cumplir normas productivas más
altas y crear futuras potencialidades para la compra de los insumos necesarios".

Se autorizó a las administraciones a "crear mecanismos internos de pago más atractivos a

especialistas y técnicos, quienes actualmente emigran a las ciudades", dijo. Significó que las
UBPC comercializarán directamente sus productos en las comunidades cercanas y reducirán
la participación de empresas intermediarias, las cuales se convertirán en prestadoras de
servicios a las cooperativas.