News

Cuba: “Cuba’s Elite and the Centralized Economy”

HAVANA TIMES – At the end of 2017, over 600 Cuban lawmakers in the National Assembly of People’s Power, the one chamber legislative power, unanimously approved the State Budget for 2018, like they normally do.

The budget gathers the times and stages in which the State will distribute investments and disbursements for the following year in a centralized and planned manner, as well as how much they expect to receive in revenue for these expenditures and investments.

The following is their outline:

Before January 10, 2018, the Ministry of Finances and Prices distributes and notifies every Body, Higher Business Management Organizations (OSDE) and the Governing Bodies of the People’s Power Local Assemblies of their projected revenue and budget.

Before January 30th, these higher organizations notify their subordinate bodies about the “Economy and Budget Plan”, who then manage them.

Before February 15th, every subordinate body makes a breakdown of the Budget and plans it for revenue, expenditures and monthly execution for the rest of the year. This schedule is based on estimated activity levels both in production of goods as well as rendering services for the next 12 months.

You don’t have to be a genius to understand how impossible it is to foresee how a country’s extremely complex economy is going to behave throughout an entire year. That would be the case if the country was completely autonomous and not an economy like Cuba’s, whose only trace of modernity is being greatly interwoven in the global market’s ebbing and flowing.

This absolutely obsolete and proven-to-be dysfunctional centralism is the last thing that the Party-Government is clinging onto in order to withhold some kind of grounds to continue saying that Cuba is a socialist country led by a Communist Party.

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