Concrete measures to support a
prosperous, sustainable socialism
Livia Rodríguez Delis
AS a step toward strengthening economic management
in Cuba, the government has decided to introduce a
new conception of the state’s responsibility, which
should, among other aspects, stimulate commerce with
the gradual expansion of the wholesale market.
The new measure consists of granting enterprise
directors the authority to offer selected lines of
surplus production and services on the wholesale
market to incorporated Cuban entities, when all
contracts have been fulfilled. Market demand, costs,
expenses and tax obligations must also be taken into
consideration.
Guided by Resolutions 641 and 471, from the
Ministries of Economy and Planning, and Finance and
Prices, respectively, this new measure will allow
state enterprises to increase sales and generate
greater earnings, to support recapitalization and
higher wages for workers.
In an experimental fashion, selected were a group of
products from several enterprises attached to three
ministries - Industry, Construction, and Energy and
Mining. Included are the Aluminum Production
Enterprise, the José Martí Antilles Steelworks,
Suchel Fragrances, Tannery and Leather, the Siguaney
Cement factory and the national Salt Enterprise.
Executive directors of these enterprises will have
the authority to establish wholesale prices in
accordance with supply and demand (in either CUC,
CUP or both), as well as institute discounts related
to quality, set conditions for delivery and sales,
determine volumes and make other commercial
decisions.
The launching of this experiment represents progress
in the modification of Cuba’s state enterprise
system which will gradually continue into 2014,
based on the Economic and Social Policy Guidelines
approved by the 6th Congress of the Communist Party
of Cuba.
The measure is one among many being implemented to
perfect the country’s economic model, the success of
which clearly depends on stronger and more efficient
state enterprises, fundamental to Cuba’s social
system.
It represents another step meant to remove obstacles
facing productive forces and eliminate deficiencies
which continue to hamper the enterprise system, such
as the generation of surplus inventory when clients
fail to purchase contracted products.
While expanding the wholesale market supports the
development of non-state forms of economic
management – self-employment and cooperative
ventures – the measure implies a higher level of
responsibility on the part of state enterprises. The
expanded decision-making authority granted directors
will require more careful control of the financial
and material resources they manage.
At the same time, the change should generate income
and contribute to better balancing the distribution
of wealth created by workers at state enterprises,
currently directed toward three basic goals:
maintenance and growth of the enterprise; society’s
well-being and the preservation of social justice,
via a contribution to the state budget; and workers’
compensation, which must increase to allow families
to better meet material and spiritual needs.
This is one step in that direction. As
Vice-President Marino Murillo has said, work is
underway in the construction of a prosperous and
sustainable socialism, which generates wealth and
promotes development, a model of ecologically
justifiable consumption which recognizes diversity
and is based on a balance between the desired and
the possible.
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