Much has been made of Raul Castro’s interpretation of socialism. Earlier this summer before the national assembly, Castro stated: “Socialism means social justice and equality; but equality of rights, of opportunities -- not of income.” The steps that the “practical Castro,” as he’s been called, has taken alongside these statements, while symbolic, have yet to move the nation in any tangible way. And they’re unlikely to. Nimble openings of the past may not draw the same headlines, but they may offer a better avenue forward….
Cuba has made much more serious openings in the past, specifically in the post- Soviet period when the island’s economy nearly ground to a stand still. In 2005, though, Fidel -- bolsterered by support from Venezuela and China -- recanted on liberalizations. He shut down a broad swath of small, private enterprise that had developed, eliminating 2,000 of the “shack” operations that had sprung up selling pizzas, sodas, sandwiches, milkshakes, and other sweets.
That was just the tip of the iceberg. The Economist reported that 240,000 licensed entrepreneurs and small business owners were whittled down to below 140,000. Along with the opening in the early nineties came legality of possession and use of U.S. currency -- a practice that fueled the flow of remittances from expatriate Cubans, but, along with other openings, was brought to a halt in the early years of the new millennium.
But the reforms that have garnered the boldest headlines since the transition, those allowing the ownership personal computers and cell phones, are symbolic -- Cubans live on an average salary of $17 per month can hardly afford a cell phone, let alone the $700 necessary to buy a computer.
It’s likely that the most meaningful of Raul’s are not about consumer goods but about property and small business. His willingness to increase limits on land that private farms can own by 200% (99 acres up from 33), might help to offset an estimated $1 billion increase in imported food costs the nation will face this year alone. The legalization of private taxis is another good move.
Allowing other existing private enterprise, in the form of hair salons, cafes, and restaurants, to move out of people’s homes and into other locations -- even if property remains owned state, rather than privately owned -- could allow for modest, controlled expansion for already permitted industry.
Ultimately, Cubans are responsible for their own country. Since support for the ideals of the Revolution runs deep, a revolution that has delivered results in terms of universal, quality health care and literacy and that ended the corrupt rule of Battista and his friends in the American mafia, mining, and sugar worlds, the way forward must also be in line with those ideals.
That may mean a nation of small, modern, efficient farms, mom-and-pop shopkeepers, of 99-year leases (like in London) on property and a measured relationship with Chinese, American, and other sources of foreign direct investment. Clearly, however, something has to change.