Wednesday, 16 April 2014

​Cuba’s economic reforms: Socialism with neoliberal characteristics?

Havana has prioritized foreign investment and private enterprise, slashed state-sector jobs, while seeking closer cooperation with the European Union. Will Cuba’s latest market-based reforms undermine the social gains of the 1959 Revolution?

Times are complicated in revolutionary Cuba. President Raúl Castro is well into his second term and plans to officially step down in 2018; he is now laying the groundwork for a new generation of leaders to take the reins of the island nation.

In an effort to address the stagnating economic conditions that have burdened the country since the collapse of the Soviet Union, President Raúl unveiled reforms in 2010 aimed at moving the island’s outdated command economy toward a mixed economy with greater emphasis on market mechanisms and self-employment.

Cuban authorities have acknowledged the difficulties posed by maintaining massive subsidies across various sectors, and plan to transfer up to 40 percent of the workforce into the private sector by 2015, where workers will be expected to pay taxes on their income for the first time.

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Nile Bowie is a Malaysia-based political analyst and a columnist with Russia Today. He can be reached at