Political Prisoners of the Empire  MIAMI 5     

     

C U B A

Havana.  November 28, 2013

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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