“If Communists deliberately examine the question of the New Economic Policy there cannot be the slightest doubt in their minds that we have sustained a very severe defeat on the economic front. In the circumstances it is inevitable, of course, for some people to become very despondent, almost panic-stricken, and because of the retreat, these people will begin to give way to panic. That is inevitable. When the Red Army retreated, was its flight from the enemy not the prelude to its victory? Every retreat on every front, however, caused some people to give way to panic for a time. But on each occasion—on the Kolchak front, on the Denikin front, on the Yudenich front, on the Polish front and on the Wrangel front—once we had been badly battered (and sometimes more than once) we proved the truth of the proverb: “A man who has been beaten is worth two who haven’t.” After being beaten we began to advance slowly, systematically and cautiously.”
~Vladimir Lenin
by BJ Murphy
Due to recent events taking place in Cuba, along with various media distortions coming in from a now famous Goldberg report, I would like to help clear up known fallacies about Cuba that’s going on, where many are claiming that Cuba is now Capitalist, or is embracing capitalism, or, like many anarchists and ISO’s (International Socialist Organization), claim that Cuba has been Capitalist. This is, of course, basing itself out of the latest speech by President Raul Castro where he announced new economical rulings to take place, along with statements that’s been said by former President Fidel Castro.
During an interview with Goldberg, Fidel did state that “the Cuban model no longer works for us,” but not as to saying that Cuban socialism isn’t working. Rather how it’s being developed isn’t working any longer due to the international economic crisis.1
Raul Castro recently did a speech to his fellow Cubans, in which he’s stated that there’ll be an expansion to the self-employment sector, which right now is around 15% of the economy.2 Now, originally, the self-employment sector was largely regulated where those self-employed could not hire any other workers except for himself and those of his own family, to ensure no exploitation of man on man was to take place. Now, with this expansion in the self-employment sector, those self-employed will be allowed to hire workers that are outside of the family – meaning there will now be a real capitalist sector in the economy, while Socialism remains as the predominant economic factor in Cuba.3
Though, we must point out how little of the economy this’ll effect. Let’s put in the facts here:
- Cuba’s population is close to around 11 million;
- Cuba’s reported that around 500,000 will be transferred from the State-sector to the new self-employed sector.4
If we add all these facts up, we’re looking at almost 10% of Cuba’s economy, and more than likely a lot less due to the fact that most of those won’t be employees or employers, but self-employed, especially in farming.
Of course, one of the main misleading statements coming out of this is the claim that Cuba wanted these new economic changes to happen. Though, clearly, this is not true at all. This was obviously forced on them as a result due to the economic crisis. In Cuba, the foreign debt has vastly increased as a result from nickel prices declining.5 And so, these new rulings more than likely be used to try and encourage fellow Cubans who have money from remittances to invest it domestically.
Obviously, as we can see clearly, the State-owned sector is the predominant force, where workers are managing the means of production. Hell, even the main sectors of the economy – nickel, tourism, and medical technology – will remain in State hands.
So, although there’ll be a real capitalist sector now, this does not mean that Socialism is being betrayed whatsoever. Again, this Cuban NEP (New Economic Policy) is a result due to the crisis, and so to keep the Socialist economy alive in Cuba, these rulings are an absolute must. I truly do think Raul has a handle on this and knows what he’s doing. As Marxist-Leninists, we must also realize that Russia was going through a similar fate when Lenin had to implement the first NEP.6 This is what we’re witnessing here in Cuba today.
Of course, this 10% (or less) will be added on to the 15% (non-exploitive sector on self-employment). So, this’ll make Cuba’s economy be privately owned by 25%, at most. Though, we must take in the facts here, that 10% is an estimate as being the most in percentage. It’ll more than likely be a lot less than 10% like I’ve already shown. And with 15% of that 25% will be non-exploitative. So, again, there’ll only be 10% or less on exploitation. With the State-own sector being at least 75%, if not more. Making Cuba’s means of production vastly – and collectively – owned by the working class still.
In fact, for an analysis far more detailed on Cuba’s current economic rulings and where it stands today, I highly recommend reading a great report by the PSL (Party for Socialism and Liberation), called “A Marxist analysis of Cuba’s new economic reforms”.7
Red Love & Salutes!
1. “Castro ‘misinterpreted’ on Cuba economic model quote”, BBC News, September 10, 2010.
2. “Cuba’s Economy”, Global Security.
3. Leticia Hernández, “Much more than an alternative”, Granma, September 27, 2010.
4. Shasta Darlington, “Cuba to lay off 500,000 in 6 months, allow private jobs”, CNN, September 13, 2010.
5. Melissa Lockhart, “Nickel: Top export falling in value”, Cuba Foreign Policy, April 10, 2009.
6. “New Economic Policy”, Wikipedia.
http://en.wikipedia.org/wiki/New_Economic_Policy
7. Brian Becker, “A Marxist analysis of Cuba’s new economic reforms”, PSL Web, September 21, 2010.
The prison gates are open... 