Thursday, October 24, 2013

Cuba Strengthens Military Monopoly over Domestic Markets

Cuba Strengthens Military Monopoly over Domestic Markets
October 23, 2013
Cuba's "reform process" was designed, not to solve the people's
problems, but those of the State and its bureaucracy.
Pedro Campos

HAVANA TIMES — Recently, the government of the new Cuban Right set down
regulations that barred private businesses from selling items of
clothing and industrial articles brought from abroad, a practice that
had gained ground over the last two years owing to the scant impetus
given the self-employed sector by the measures of the so-called "reform

Many are curious about this "step back", which the officialdom seeks to
portray as part of the need to impose order and discipline in the
market, to prevent the misappropriation of resources and other similar

The explanation is far simpler than that: the hard-currency stores
operated by the State, particularly the TRD branch which is part of the
commercial monopoly maintained by Cuba's Revolutionary Armed Forces
(FAR), have been facing the growing competition from the thousands of
private businesses that sell clothing and other industrially-produced
items on sidewalks, hallways, doorways and living rooms across the country.

These items, what's more, are generally of a higher quality and cheaper
than those offered by the island's military domestic hard-currency trade

It is not true that most of the products sold by these businesses are
misappropriated State resources. If that were the case, it would be very
easy to accuse these businesses of theft. We cannot of course say that
no products are procured this way. Everyone in Cuba knows, however, that
most of the clothing sold by this new class of business-owners comes
from Ecuador, Panama, the United States and Mexico, and, in lesser
volumes, from Italy. This holds for other industrially-produced articles.

More frequent trips to Cuba by members of the Cuban-American community
in the United States and the granting of multiple-entry visas to Cubans
by the US have given an unexpected impetus to commercial activities that
are beyond State control.

In a way, this is reminiscent of the trade pirates practiced during
colonial times, which the Spanish throne tried to prevent in order to
protect its commercial monopoly.

The new migratory policies that have allowed many Cubans to travel
abroad have not resulted in a massive exodus, as some bureaucrats who
had hoped to see dissidents and unemployed persons go had expected.
Rather, it has served to establish a broad commercial bridge between
Cuba and other countries, relations which feed the island's incipient
self-employed sector and allows it to successfully compete with the
stagnated, expensive, obsolete and corrupt State clothing and industrial
items market.

Once again, many Cubans are feeling profound disappointment with the
policies of the new Cuban Right which, in truth, only seeks to
strengthen its State monopoly capitalism and to avail itself of the
nascent private capital of Cubans residing on the island, the money of
the Miami market and international Capital.

That is how State monopoly capitalism works: when the system is gasping
for air, it loosens the monopoly reins. When it begins to breath
normally again, it tightens them once more. It happened in the 1990s,
following the liberalizing measures that brought about a massive protest
on Havana's ocean drive on August 5, 1994, measures that were gradually
"rectified and adjusted."

We do not have any exact statistics on the number of people who would be
left without work as a result of these new, arbitrary State measures,
but, judging from the number of people who sell clothing and
industrially-manufactured articles around Havana's neighborhoods, we
could be looking at thousands of people who would suddenly swell the
ranks of the unemployed. And, let it be clear: their jobs were generated
outside the domain of the State, with non-State resources.

The main proponents of the so-called "reform process" are calling for a
liberalization of the country's productive forces, but, in practice,
they implement measures that prevent this and that continue to privilege
the commercial activity of State monopolies.

Thus, the reform process evinces one of its many contradictions,
expressing an interest in State decentralization on the one hand and
dictating regulations that restrict individual commercial initiative on
the other.

The State understands, but its interests make it impossible for it to
accept, that the country's economy will not develop without a broader,
more dynamic domestic market.

The question therefore arises: how sincere is the government when it
announces that one of the interests behind the "reform process" is to
generate non-State employment?

It is said that, in some places in Cuba's interior, all items of
clothing that haven't been produced by those who sell them are being
confiscated by authorities. Thanks to the "smarts" that Cuba's State
economic monopoly has given rise to, we will soon likely see these new
sellers replace the original label on the garment with local brands that
read "Juan Perez – Made in Cuba."

An old saying goes: "whatever the law, there's always a loophole." Since
Cubans have no say in the making of the law, we have been left with no
other choice but to invent the loopholes.

We're already hearing rumors that new measures to regulate the sale of
fuel oil to private cab drivers will be in place by the end of this year
and that the government is assessing the possibility of restricting the
sale of records and films, out of "copyright considerations."

It is clear, as many of us have been suggesting since the first measures
were implemented, that the "reform process", plagued as it is by
inconsistencies and contradictions, was never designed to solve the
problems faced by common Cubans, but to solve the State's problems. When
its actions (as is the case here) affect the interests of the
bureaucratic elite and its monopolies, counter-measures are implemented.

Let those who are unaware of the State's true intentions buy into this
business of the "reform process." Let them continue tightening the
screws on the people, that's their problem. When the people decide to
strike back, don't blame imperialism or "counterrevolutionaries." We've
warned you of this many times before: you have to look for the causes of
the people's growing discontent in your own, "revolutionary" actions.
Pedro Campos:

Source: "Cuba Strengthens Military Monopoly over Domestic Markets -
Havana" -

No comments:

Post a Comment