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Economic growth at 12.5%
• If social services and trade are
excluded from the GDP its growth would stand at 9.5%
• State budget for 2007 shows increased financial
backing for social development
ON
presenting its report to deputies, the Economic
Affairs Commission of the National Assembly of
People's Power ratified that the economy grew by
12.5% during 2006, the largest growth achieved in
the years of the Revolution and the highest in Latin
America.
According to Osvaldo Martínez, president of that
commission, the increase in the GDP has been a
constant since the year 2004.
The
year 2006 has been a period for the maturing of
diverse economic policy principles, such as
establishing control over the exchange rate, the
elimination from monetary circulation of the dollar
and its devaluation, the functioning of a sole state
income account, centralization of decisions on the
use of hard currency in a strategic context, and the
strict meeting of financial obligations in order to
obtain additional funding.
The
Energy Revolution signified an important advance in
strengthening that sector of the economy, and
investments to improve the production and
distribution capacity of electricity are ongoing.
The
principal actions include the installation of
generators that operate on diesel and fuel oil, as
well as the greater weight attained in the
generating structure by these generators and gas.
Generation grew by 7.2% while consumption similarly
increased.
Improvements in production have considerably reduced
power cuts.
Toward the end of the year, Cuba’s economic
operations abroad were heavily affected due to the
application of the U.S. blockade. The theft of the
Havana Club rum trademark and the withdrawal of two
Swiss banks from operations with Cuba demonstrate
the persecution of national trade.
The
elevated growth of the Cuban GDP is based on the
assignation of resources to improve alimentation and
sustain the family food basket, which represents a
cost of $948 million, and the completion of 110,000
homes.
In
2006 the program for repairing and upgrading
hospitals and polytechnics was maintained, albeit
with delays in certain areas. Also ongoing was
Operation Miracle, the training of Latin American
doctors and internationalist missions in various
Latin American countries.
Similarly, advances in education, with the addition
of 600,000 university students during the period,
are continuing, as are the notable scientific
achievements contributed in the biotechnological
sector. Various Cuban biotechnological products are
currently being marketed in 50-plus countries.
Agriculture is showing unsatisfactory results,
Parliament was informed, with decreases in the
production of root and fresh vegetables, beans,
citrus fruits, corn and other produce. That is
principally due to the effects of the severe
climatic conditions the country has experienced in
recent years, in addition to the Special Period –
the economic crisis that began in the 1990s – and
labor indiscipline. Cuba is still highly dependent
on food imports, given that in the last two years
imports in that sector have increased to 35%.
A
breakdown in labor discipline has been the ideal
environment for lack of productivity, corruption and
waste. Hence the vital importance of the process of
restoring and strengthening discipline planned to go
into operation in 2007.
In
2006, the average regional growth of Latin America
was 5.3%, boosted by a favorable external juncture
for its exports of food and basic products and by
the high growth rate (10%) of the Bolivarian
Republic of Venezuela, and Argentina (8.5%).
Cuba
is currently the country of highest equity in terms
of the distribution of income in Latin America,
stated Osvaldo Martínez, president of the
parliamentary Economic Affairs Commission. He
explained: “it is the one with the highest quality
services in elementary and secondary education, as
well as those of health; the first in favorable
indicators of infant mortality from birth to one
year and under fives; that of lowest unemployment;
the one that offers subsidized foodstuffs that cover
no less than 50% of nutritional needs; the one that
offers constant primary medical attention and
referral to free high-tech services; the one to
offer guaranteed and free attention to pregnant
women and babies in the first year of life; the one
that offers guaranteed educational training to
beyond ninth grade and access to higher education in
any part of the country to all those wishing it.”
During his speech in Parliament, José Luis Rodríguez,
Cuban minister of economy and planning, reaffirmed
that the Cuban GDP can be perfectly compared to that
of any other in the world, based on the fact that
value has been assigned to the basic social services
of health and education, so that it can be
accurately measured and compared to those capitalist
economies in which those service are sold as
merchandise.
“We
can inform you that if services and trade are
excluded from the GDP calculation, the Cuban economy
would have grown by 9.5% in 2006,” he announced.
During the year that has just ended, the state
budget fulfilled its function in terms of budgetary
activity and supported the programs of the Battle of
Ideas. The 3.2% deficit in relation to the GDP
improved by one percentage point over that achieved
in 2005 and attests to responsible budget
management.
Georgina Barreiro, the Cuban minister of finance and
prices, announced that a GDP growth of around 9.8%
is anticipated for the next period.
22.6% OF GDP FOR EDUCATION AND HEALTH
In
order to guarantee education and health free of
charge for the entire population resources
representing 22.6% of the GDP have been assigned to
these services, a figure that is fourfold the
average directed to such activities by Latin
American countries, the minister noted.
Some
3.9 billion pesos have been set aside to cover
retirement and social security pensions.
“Social Assistance is to receive 1.203 billion pesos
to assure attention to 588,097 beneficiaries, as
well as maintaining 382 centers such as Senior
Citizens Homes, social centers for the elderly and
homes for people with physical or mental
disabilities.”
For
2007, more than 4.8 billion pesos has been set aside
to support investments in the construction of homes,
hospitals and polyclinics and the development of the
transportation, hydraulics and energy
infrastructures.
During the National Assembly session, special
emphasis was placed on the need to improve
efficiency in the business sector in order to
generate the income to support the state’s budgetary
Activities.
A
more efficient use of resources and the
strengthening of labor discipline, as well as the
adjustment and improvement of productive plans will
guarantee the continuance of the country’s social
achievements and economic development. |
