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To cite this article: Rainer Schultz (2012): Food Sovereignty and Cooperatives in Cuba's
Socialism, Socialism and Democracy, 26:3, 117-138
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Food Sovereignty and Cooperatives in
Cuba’s Socialism
Rainer Schultz
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– by increasing productivity “at all costs” – the state gave new con-
sideration not only to different forms of ownership but also to ecologi-
cal and environmental concerns.
Twenty years after the collapse of the twentieth century state-
centered socialist models, Cuba is searching for a viable and sustain-
able model that overcomes its own errors from the past while learning
from experiences elsewhere, in both socialist and capitalist contexts.
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Like all processes in real life, this one is highly contradictory and
with uncertain results. Private farmers, cooperatives, state farms and
foreign companies are all competing ‘in the field,’ as are small-scale
ecological practices, large-scale high-input modes of production as
well as genetically modified food projects.1
The goal of this article is to enrich and historicize the current debate
on cooperatives and the future of Cuban socialism. I will examine the
antecedents of current reforms in the agricultural sector, analyze the
context in which they evolved, and provide an overview of the most
recent developments. In my view, small-scale, agro-ecological farming
in a cooperative environment seems to be the most promising way to
increase productivity on a sustainable basis while also meeting local
demands and empowering the involved actors.
The problem
In the summer of 2009 Cuba’s newly inaugurated president Raúl
Castro declared food security an issue of national security
(26.7.2009). The year before, three hurricanes had devastated the
island, causing losses tantamount to 20 percent of GDP, much of it in
agriculture. That year, Cuba imported food items worth $2.2 billion
(ONE 2010).2 Since that time, the country has been striving to replace
1. For an overview of the development of GM production in Cuba and the debate on it,
see Funes and Freyre 2009 and Delgado 2012.
2. The largest share of these food imports ($0.7 billion) came from the United States,
turning it that year into the principal provider of food for the socialist state. But
partly because these exceptional and highly regulated imports from the US
(imports from Cuba are still illegal) face several obstacles (among others, payment
in cash and in advance, no previous inspection of quality, etc.) and are permitted
only since 2000 on a fragile political basis (the Trade Sanctions Reform and Export
Enhancement Act) and thus subject to political change, the Cuban government sub-
sequently decided to diversify its trading partners. Ironically, as Jorge Mario Sánchez
has pointed out and contrary to what the Cuban government expected, those US agri-
businesses that obtained an OFAC-license to trade with Cuba on a non-competitive
and guaranteed basis have less incentive to lobby for a lifting of the embargo sanc-
tions (Sánchez 2010: 97).
Rainer Schultz 119
for inputs. Since then and until May 2012, 1.5 million hectares have
been given to some 163,000 farmers (Cuba Debate 17.5.2012). To put
this number into context, 2.8 million Cubans or one fourth of the popu-
lation live in rural areas. This ratio may now increase, reversing the
prior trend of rural emigration to urban centers (ONE 2012).
Cuba’s socialist agriculture is often ridiculed by outside critics.
This does not always take the extreme form of Dennis Avery’s article
“Cubans starve on diet of lies” (Hudson Institute, April 9, 2009),4
which could easily be dismissed as the ideological rant of a Cold
Warrior had it not had such an impact. The author, a former State
Department employee, cites the American agricultural attaché in
Havana to present a figure according to which Cuba imports 84
percent of its food, thereby supposedly belying all Cuban efforts.
This figure has since made it into most mainstream media as a standard
and mostly unquestioned truth, and has even been echoed in some
Cuban media. In reality, this “official Cuban figure” was a statement
by then Vice-Minister of the Economy and Planning Ministry,
Magalys Calvo, for a specific year only, and referred to items in the
basic food basket and on the ration card (the part that the Cuban gov-
ernment heavily subsidizes), some of which cannot be produced in
Cuba (certain cereals, oil crops, etc.) but which is believed to cover
no more than 30 percent of actual current food consumption (Funes
Monzote 2012: 2). Based on available FAO statistics, the percentage
of imports for all food consumed in Cuba has steadily decreased
from a high of 70 percent in 1980 to some 40 percent in 1997 (the last
year for which those statistics are available), although obviously still
more is desired. In a comparative perspective, among 23 Latin Amer-
ican nations that are net food-importers, Cuba is not exceptional. In
3. Law 259 of July 2008 allows for individuals (personas naturales) a usufruct of 10 years
and 25 years for cooperatives (personas jurı́dicas), both with the option to be extended
by the same time (art. 2).
4. It argued “[Cubans] bragged about their peasant cooperatives, their biopesticides
and organic fertilizers. . .. The organic success was a lie, a great, gaudy, Commu-
nist-style Big Lie of the type that dictators behind the Iron Curtain routinely used
throughout the Cold War to hornswoggle the Free World.”
120 Socialism and Democracy
2010, the island imported food items worth ca.$1.5 billion out of a total
of $10.6 billion of imports, that is ca. 14 percent (ONE 2010), only
slightly above the continental average. What makes the Cuban case
special however is that the state has very little liquid foreign currency
to purchase these items.5 The question then arises whether these pro-
blems are all caused by socialist policies (as claimed by many foreign
critics), and what have been the government’s responses? Before exam-
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Historical background
After colonial conquest and destruction of the prevailing indigen-
ous agriculture, Cuba has never again been self-sufficient in its food
production, nor was it expected to be. In the sixteenth century large
estates were given by the Spanish Crown to its colonists in usufruct,
mostly for cattle-raising. Only as indigenous providers of vegetables
and fruits died out, and along with them their productive forms of
intensive local gardening, known as conuco, did the Crown lease
smaller amounts of land to European and creole agricultural
workers. Sugar, timber and tobacco production soon influenced the
original land-structure, and the pre-Hispanic forest cover began to dis-
appear (some 80– 90 percent), leading to the onset of soil erosion.6 The
massive introduction of African slaves as agricultural laborers – in the
mid-nineteenth century they represented the majority of the island’s
inhabitants (Maluquer 1992: 15) – shaped Cuba’s ethnic and cultural
composition and contributed decisively to the wealth accumulated
by the sugar aristocracy. When the demand for sugar started to
increase (and possibilities for processing and transporting improved
through technical innovation) in the late eighteenth century there
was an interest to break up the big haciendas. In Marxist terms, the
revolutionizing of the mode of production required also a change in
the relations of production. Land started to become private property
5. This number is to be distinguished from the share of the value of food items as a per-
centage of total imports which is even lower. But these numbers are often conflated to
prove the unviability of the Cuban agricultural model.
6. Plants and weeds introduced by Spaniards that were exogenous to the island also led
to certain plagues and unintended negative consequences. For an excellent study of
Cuba’s environmental history, see Funes 2008.
Rainer Schultz 121
and a commodity. In the 1820s Spain had lost most of its colonies in the
hemisphere during the wave of independence and it was then that it
allowed for a reform that converted the usufruct into private property
as a concession to creole elites, mostly however excluding the small-
scale agricultural workers thus making them landless, dependent
and precarious.7
In the aftermath of the Haitian Revolution sugar had become the
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7. This is one of the important differences from the two other scenarios of socialist tran-
sition to which that of Cuba is often compared: China and Vietnam both share rich
endogenous and millennia-long farming traditions. In different waves of emigration
from Spain, however, tens of thousands of Spaniards settled on the island, many of
them to become agricultural workers, with or without their own parcels of land.
122 Socialism and Democracy
(1868 – 98), the share of food imports in total imports almost halved
between 1919 (37 percent) and 1958 (21 percent), and then dropped
further to 10 percent in 1987 (Funes 2012: 30f). Some attempts at agri-
cultural diversification were made, but because of high sugar
demand and thus profitability most of it was of little significance.
The expansion of the large sugar estates was met with some resistance
by the rural workers, mostly peaceful but between 1932 – 34 also mili-
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tant action occurred that included land occupations (Grote 2004: 62).
After the Great Depression the tariff agreements with the United
States made food production in Cuba less profitable, and the country
continued to rely on imports.8 During World War II, a law was
enacted that made it mandatory for farms larger than 5 hectares to ded-
icate parts of their land to food production (Grote 2004). Cuba’s 1940
Constitution proscribed latifundios (large estates) in its article 75 but
never enacted any legislation that would make this effective.
After World War II, the economic thinking of state-led develop-
ment policies and import-substituting industrialization (ISI) within
the UN bodies, and Raúl Prebisch as head of the CEPAL (the UN’s
Economic Commission for Latin America) in particular, gained influ-
ence in Cuba as well. In the 1940s and 50s, long-time minister of agri-
culture Rodolfo Arango and his chief economist, Walter Frielingsdorf,
pointed out the necessity of agrarian reform, modernization of agricul-
ture, and state-led initiatives to develop Cuban agriculture (Grote 2004:
66f). Some legislation such as agrarian schools, and credits for coopera-
tives through an agrarian bank, was enacted under Batista’s influence
but in times of high corruption remained without much effect.9 In 1951,
a World Bank report found that 47 percent of Cuban land was owned
by 1.5 percent of the population (IBRD 1951: 88), most of it dedicated to
sugar, followed by cattle pasture. In terms of diversification to meet
local food demands, the report stated: “While some progress has
been achieved, the situation is still acute” (IBRD 1951: 94). Another
major problem was that fewer than half of all farms were owned by
those who worked on them; one third of Cuban agricultural land
8. The “Reciprocity Treaty” of 1934 that granted tariff reductions on 426 items (on the
US side 45 products), along with the “Jones-Castigan Sugar Act” “institutionalized
Cuba’s economic openness to the United States and its dependent position” (Domı́n-
guez 1978: 60).
9. In 1953 for example, the Plan for the Mechanization of Agriculture (Plan de Mecani-
zación Agrı́cola General Batista) was launched and delivered ca.1000 tractors to each
of the 126 Cuban counties (municipios). Three years later an “Agrarian Rehabilitation”
plan was announced to give 20,000 young people education and employment in rural
communities, but very little of it was put into practice (Grote 2004: 69).
Rainer Schultz 123
was owned by US-Americans. This is one of the reasons why the rather
moderate first Agrarian Reform in May of 1959 became a major source
of conflict with US interests. Cuba’s 1940 Constitution (article 75)
foresaw the creation of and support for rural cooperatives, even the
founding of a cooperative to distribute un- or underused land in
each county – but as with many other aspects of social development,
the subsequent legislation was weak or nonexistent (Grote 2004: 226).10
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Revolutionary changes
It was these conditions that the revolution sought to change with
its first agrarian reform in 1959. One of its major objectives was to
“facilitate the. . .extension of new products. . .that satisfy the nutritional
needs of the population” (1959, paragraph 3). The land reform was one
of the major political demands of the revolutionary movement and
along with the rural development became an important pillar of
revolutionary hegemony thereafter. Whereas before the revolution
basically all land was in private hands, by 1961 this portion had
been reduced to 58 percent.11 Thus, with the first agrarian reform
law some 40 percent passed into state hands, whereas the second
and more radical reform of 1963 limited private landholding to 67
hectares and thus put another 30 percent into the state’s hands.
In addition to the important goal of meeting food requirements of
the population, other tasks were to eradicate poverty in the countryside
(through educational, cultural and economic programs), to generate
hard currency income through the export of agricultural products,
and to obtain raw materials for industry. Despite the explicit goal of
diversifying and becoming more autonomous, the dependence in
many other matters (energy, defense, industrial development) led the
government to a continued emphasis on large-scale mono-cultural pro-
duction of a few but highly lucrative export-crops as part of what
beginning in 1976 would become internationally coordinated five-
year plans through the Soviet-led Council for Mutual Economic
Assistance. Together, sugar, tobacco and citrus covered 50 percent of
10. The bank for agrarian development (BANFAIC) did issue credits to some 5000
small-scale agricultural producers by 1954, but because of nonexistent legal titles,
rivalries, and corruption, the impact often remained limited. By the late 1950s
there were about 650 cooperatives registered in accordance with the commercial
association law (Grote 2004: 241).
11. Depending on the definition of cooperatives into which much of the expropriated
land was converted, the percentage of land that was privately owned could be as
high as 72% (Alvarez 2004a: 35).
124 Socialism and Democracy
agricultural land (Funes 2012: 7). Although the government did encou-
rage the creation of cooperatives and especially the pooling of land
and labor through the Institute of Agrarian Reform (INRA) this was
often carried out with a top-down approach where former landless
workers were encouraged to form a cooperative.12
Cuba faced two other major problems in its food production. The
first was a labor shortage, which in pre-revolutionary times had led
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12. This approach is also reflected in article 43 of the 1959 Agrarian Reform Law: “The
agrarian cooperatives that the INRA organizes on the lands that it disposes of by
virtue of his law will be under its direction. It reserves the right to assign adminis-
trators to those lands. . .until they are given more autonomy by law.”
13. The “Agrarian Thesis” of the first Communist Party Congress in 1975 proclaimed
proudly: “The ample use of chemicals. . .is another expression of technical progress
in agriculture.. . . The application of fertilizers has increased six-fold in relation to
the capitalist era” (PCC 1976).
Rainer Schultz 125
14. As a result, in the 1990s, three fourths of agricultural land was declared to be of low
or very low productivity (Soil Institute 2001, cited in Machı́n et al. 2010: 43). Cuban
agriculture also suffered from chemical and biological warfare waged by the US. For
extensive documentation on this, see Blum 1995: 188f.
15. Only in 1980, with the opening of Free Farmers’ Markets, was there a legal alternative
for items produced in excess of the contracted quantities. Six years later, 332 such
markets had been established countrywide (Alvarez 2004a: 144). At that point
however they were abandoned again as part of the beginning “rectification process,”
citing increased corruption, lack of transparent and functioning supply-channels,
and unmet goals of state delivery as reasons. They would be reopened in 1994.
126 Socialism and Democracy
16. For a good summary, see Pérez et al. 1994. To counter oil scarcity and the lack of
tractors, for example, a program for using oxen was launched that included
100,000 of them in 1991 alone (Pérez et al. 1994: 214).
17. In a survey of more than 700 cooperative-members in the central province of Las
Villas, only 36 percent felt that they were part of important decision-making and
one third considered that this was the cause of lost opportunities to increase pro-
duction (Figueroa and Santana 2005: 243).
128 Socialism and Democracy
consumption. This was the beginning of the end of the directly state-
administered agricultural model. Whereas in 1990 the state still directly
administered 78 percent of all agricultural land in use, 10 years later
this was reduced to one third (ONE 2010). This process of change is
thus also called the “Silent Third Agrarian Reform,” because without
being named or declared as such, it fundamentally reversed the own-
ership-structure (Funes 2012: 10). It is interesting to observe that the
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18. In practice, the former administrator of the state farms from which they had
emerged would usually be proposed for this post by the Ministry of Agriculture,
but in many cases this proposal was rejected by the cooperative constituency,
taking advantage of their new participatory rights (Pérez et al. 1994: 208).
Rainer Schultz 129
In 2000, towards the end of the first cycle of reforms of the 1990s,
economist Omar Everleny Pérez Villanueva concluded that the results
of the transformations could be evaluated “as positive” (2000: 101),
despite slow evolution and remaining problems especially in the duality
of operating systems (state and market). He mentions among some of
the positive changes: reduction of loss-subsidies, growth of an important
part of agricultural production (vegetables +42 percent, tobacco +22
percent, beans +16 percent. [Pérez Villanueva 2000: 96]), better usage of
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19. For a well informed and detailed discussion of the lawmaking process, in which
there are long consultative phases, see Roman 2005.
130 Socialism and Democracy
been given, Ileana Estévez, president of the Cuban Bank for Credit
and Commerce (BANDEC) with 203 branches in the country, con-
firmed that “several million pesos” have been distributed since the
renewal of the program in 2009. During the same period, more than
15,000 loans have been given, and the number of loans solicited has
increased by more than 80 percent (Juventud Rebelde, 10.11.2011). Inter-
est rates are fixed between 3 –5 percent depending on the duration and
purpose of the credit. According to Estévez, most applications were
given after a visit to the farm and fulfillment of legal requirements.
Usually the expected harvest serves as a security and only less than
1 percent did not fulfill their legal obligations (Juventud Rebelde,
10.11.2011).20
Since the beginning of land reforms in the 1990s, there are now
three sectors of agricultural production, according to their forms of
property and administration: (1) the state sector; (2) the non-state
sector (including both collective and individual production); and (3)
the mixed sector with joint ventures between the Cuban state and
foreign capital. The state sector includes21 the traditional state farms,
farms run by state institutions such as the armed forces, the ministry
of interior etc., and the self-provisioning farms of public institutions
such as schools. Collective production comprises the aforementioned
UBPC and the CPA. Individual production can be in the form of
CCS cooperatives, individual farmers with private property (from
20. Interesting details of this practice and its challenges can now also be read in the
Cuban press. In its amplified Friday edition, the party’s official daily, Granma, pub-
lishes letters, often complaints, by readers and the responses by the affected state
institutions. In one recent case, a very critical new peasant from the Province of
Matanzas complained about not being able to obtain a credit and blamed Cuban
bureaucracy. The bank’s reply however detailed that the initial complaint had
been submitted even before the paperwork was given to the bank. In addition,
after an onsite visit to his new pig farm, officials discovered several unauthorized
constructions. But most importantly, the farmer wanted to use his own house as
security for the loan – something the Cuban Constitution does not allow so that
no one may be evicted for credit default (Granma, 13.07.2012).
21. For a useful overview, see Alvarez 2004a.
Rainer Schultz 131
22. The problem is that available Cuban statistics are not fine-tuned enough to make
more significant observations. The national statistics distinguish only between
state and non-state forms of production even though there are huge differences
between a large-scale input-dependent cooperative and a small-scale organic
farm. The other distinction made is according to different kinds of produce, but
without distinguishing between different forms of production.
132 Socialism and Democracy
23. Raúl Castro, in his Parliamentary Speech in July 2012, announced that “based on
accumulated experiences” the maximum size of land in usufruct “for those who
are linked to state farms, UPBC or CPA” would be extended to 67 hectares
(Granma 24.7.2012: 4).
Rainer Schultz 133
24. Vice-President of the Council of Ministers Marino Murillo confirmed in March 2012
that the new law for cooperatives is close to being made public (IPS, 27.3.2012). But
as in other spheres of anticipated change, this involves a complex juridical reform
that, according to José Garea Alonso, Vice-President of the Cuban Society of Agrar-
ian Law, would require a reform of the Cuban Constitution, which does not cur-
rently recognize cooperatives other than agriculture-based and does not allow for
collective ownership of major means of production other than land.
25. For example the presentation of Lic. Juan Suárez, legal advisor of Mixed Crop Firm,
“Urge perfeccionar el procedimiento de negociación en las entdidades económicas
cubanas del sector agricola.”
134 Socialism and Democracy
26. Congreso Internacional de Derecho Agrario, Havana, 24– 26 April 2012 (notes by the
author).
27. Other analysts of Cuban cooperative development share similar impressions:
Marcelo Vieta states, based on recent interviews with analysts and actors in Cuba:
“many Cubans do indeed have experience with agricultural co-ops or urban
agricultural co-ops,” but “most of these experiences, I was told, have been, up till
now, top-down or party-led” (Vieta 2012).
28. See Piñeiro 2011 on cooperativism in Cuba and Latin America; also the same
author’s recent contribution on the role of cooperatives in the new Cuban economic
model, published in the journal Temas, http://www.temas.cult.cu/catalejo/
economia/Camila_Pineiro.pdf, and the reports and analysis by Canadian agrono-
mist Wendy Holm at http://www.wendyholm.com/cuba.coop.path.
Rainer Schultz 135
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