07-15-2018, 11:05 PM
*** 16-Jul-18 World View -- Socialist Cuba moves to Capitalism, while Socialist Venezuela moves to self-destruction
This morning's key headlines from GenerationalDynamics.com
****
**** Cuba's new constitution builds on ending of socialism in 2011
****
![[Image: g180715b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g180715b.jpg)
Homes and cars in Cuba are stuck in the 1950s, thanks to Socialism (Getty)
Cuba's new constitution will recognize private property for the first
time since the fanatical Fidel Castro abolished private property after
the Cuban Communist Revolution of 1959. Cuba's current constitution,
adopted in 1976, recognizes four forms of property: state,
cooperative, farmer, personal and joint-venture property.
The new category of private property will permit Cubans to own
business-related property.
Despite the insistence that Cuba is still a full-fledged, glorious
Socialist state, ever since Fidel Castro stepped down in 2008, the two
new leaders that replaced him have been moving Cuba in the direction
of capitalism. This is in contrast to Venezuela and North Korea,
whose Socialist leaders continue to move their countries toward
self-destruction.
In 2010, when Cuba's economy was in shambles, and president Raúl
Castro announced the end of the Socialist economy.
The government would lay off 500,000 government
workers (Socialist bureaucrats) and privatize many businesses.
In particular, Marx's Socialist Principle Of Distribution ("From each
according to abilities, to each according to needs") was abandoned at
the time, with the announcement: We must reinvigorate the socialist
principle of distribution, to pay to each according to the quantity
and quality of work provided."
Within two years of the 2010 announcement, the size of the state
payroll had been reduced by 20%, and more than 200,000 people had
moved into private enterprise. For the first time, Havana was
population with street stalls selling everything from pirate DVDs to
kitchen implements. The problem, however, was these self-employed
small business owners were not permitted to own the street stalls that
they had set up. The same was true of other entrepreneurs as well.
Guardian (London, 6-Nov-2011) and Granma (Cuba, 20-Apr)
****
**** Private property ownership allowed under Cuba's new constitution
****
Since 2010, the number of self-employed people in areas like tourism
and transport has nearly quadrupled to more than 591,000, around 13%
of Cuba’s overall workforce.
In April of this year, Raúl Castro stepped down, and Miguel Mario
Díaz-Canel Bermúdez became president. In a speech in April, Castro
previewed the changes that Díaz-Canel was about to implement:
<QUOTE>"We will continue to expand self-employed work – as I
have mentioned in different speeches before this parliament –
which represents an alternative source of employment within the
framework of current law, and far from signifying a process of
neoliberal privatization of social property, will allow the state
to free itself of managing activities of a non-strategic nature to
the country’s development. The experiment with non-agricultural
cooperatives will also continue.
Significant results have been achieved in both areas, but also
revealed are mistakes in management, control and monitoring, which
have led to the emergence of various forms of indiscipline such as
tax evasion, in a country where, before these measures were
applied, hardly anyone paid taxes; criminal acts and regulatory
violations, with the aim of getting rich quick, a problem which
was not addressed in a timely manner and resulted in the need to
modify various regulations linked to this sector."<END QUOTE>
This was a preview of the new constitution that was announced by
president Mario Díaz-Canel on Saturday. Here is part of
the announcement:
<QUOTE>"The economic system that it reflects maintains as
essential principles the socialist property of all the people on
the fundamental means of production and planning as the main
component of management, to which is added the recognition of the
role of the market and of new forms of ownership, between they are
private, in correspondence with the Conceptualization of the Cuban
Economic and Social Socialist Development Model and the Guidelines
of the Economic and Social Policy of the Party and the Revolution,
as a result of the consultation with broad sectors of society. ...
Regarding private property on the land, a special regime is
maintained, with limitations on its transmission and the
preferential right of the State to its acquisition through its
fair price."<END QUOTE>
So the new constitution allows entrepreneurs to keep their commercial
property, but the last clause means that the dictators in the
government can still confiscate property at any time. The Conversation (18-Apr) and Granma (Cuba) (Trans) and TelesurTV
****
**** Mario Díaz-Canel imposes harsh regulations on the private sector
****
Castro's speech in April referred to "mistakes in management, control
and monitoring." The fear of a quickly growing private marketplace
that might threaten the power of the dictatorship has motivated harsh
restrictions and regulations. The government froze issuing licenses
for some popular business categories last year, and new regulations
forbid a single person from holding more than one business license.
This has already discouraged badly needed investment in businesses,
and has even forced some business owners to close businesses because
business licenses had to be returned.
Investment is the reason why the economic changes are being made in
the first place. Cuba has decaying road infrastructure, a national
housing deficit, food shortages, and public transport problems.
Under the fanatical Fidel Castro, Cuba's economy was a continuing
disaster, first propped up by the Soviet Union, and later by
Venezuela. Now that Venezuela is an economic disaster, the payments
are getting smaller, and Cuba needs money.
Cuban officials want international investors, but no one is willing to
invest money in Cuba unless they believe that they can make a profit
and take the money out. So really, Cuba's new regulations restricting
business may may actually cancel out the advantages of owning private
property.
It's also good to remember that returning Cuba to capitalism does not
make it a democracy. I've written about many countries that
illustrate this. Nazi Germany was a capitalist dictatorship. China
today resembles a capitalist dictatorship. For example, Cameroon has
a capitalist economy, but the Francophone government still commits daily atrocities
on the
Anglophone community, including extrajudicial jailings, mass
slaughter, rape, torture, and burning down entire villages. Syria has
a capitalist economy, but the government of Shia/Alawite president
Bashar al-Assad continues full-scale genocide and ethnic cleaning
of hated Sunni populations.
Still, Cuba and Venezuela are a study in contrasts. Venezuela is
pushing forward with full-scale Socialism, destroying the country,
turning it into a military fascist state, starving the population, and
driving millions of families into neighboring countries as refugees.
Venezuela has become a worldwide poster child for what a disaster
Socialism always is, 100% of the time.
Perhaps because Venezuela is such a disaster, Cuba is taking a
different path, looking for a way to maintain the dictatorship, but at
the same time opening up the economy by abandoning Socialism in order
to encourage foreign investments. A dictatorship without Socialism,
as in the case of Cuba, isn't as disastrous as a dictatorship with
Socialism, as in the case of Venezuela, so at least Cuba is choosing
the lesser of two evils. Reuters and Havana Times and AFP
Related Articles:
KEYS: Generational Dynamics, Cuba, Fidel Castro, Raúl Castro,
Miguel Mario Díaz-Canel Bermúdez,
Venezuela, North Korea, Socialist Principle Of Distribution,
Cameroon, Syria, Bashar al-Assad
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Cuba's new constitution builds on ending of socialism in 2011
- Private property ownership allowed under Cuba's new constitution
- Mario Díaz-Canel imposes harsh regulations on the private sector
****
**** Cuba's new constitution builds on ending of socialism in 2011
****
Homes and cars in Cuba are stuck in the 1950s, thanks to Socialism (Getty)
Cuba's new constitution will recognize private property for the first
time since the fanatical Fidel Castro abolished private property after
the Cuban Communist Revolution of 1959. Cuba's current constitution,
adopted in 1976, recognizes four forms of property: state,
cooperative, farmer, personal and joint-venture property.
The new category of private property will permit Cubans to own
business-related property.
Despite the insistence that Cuba is still a full-fledged, glorious
Socialist state, ever since Fidel Castro stepped down in 2008, the two
new leaders that replaced him have been moving Cuba in the direction
of capitalism. This is in contrast to Venezuela and North Korea,
whose Socialist leaders continue to move their countries toward
self-destruction.
In 2010, when Cuba's economy was in shambles, and president Raúl
Castro announced the end of the Socialist economy.
The government would lay off 500,000 government
workers (Socialist bureaucrats) and privatize many businesses.
In particular, Marx's Socialist Principle Of Distribution ("From each
according to abilities, to each according to needs") was abandoned at
the time, with the announcement: We must reinvigorate the socialist
principle of distribution, to pay to each according to the quantity
and quality of work provided."
Within two years of the 2010 announcement, the size of the state
payroll had been reduced by 20%, and more than 200,000 people had
moved into private enterprise. For the first time, Havana was
population with street stalls selling everything from pirate DVDs to
kitchen implements. The problem, however, was these self-employed
small business owners were not permitted to own the street stalls that
they had set up. The same was true of other entrepreneurs as well.
Guardian (London, 6-Nov-2011) and Granma (Cuba, 20-Apr)
****
**** Private property ownership allowed under Cuba's new constitution
****
Since 2010, the number of self-employed people in areas like tourism
and transport has nearly quadrupled to more than 591,000, around 13%
of Cuba’s overall workforce.
In April of this year, Raúl Castro stepped down, and Miguel Mario
Díaz-Canel Bermúdez became president. In a speech in April, Castro
previewed the changes that Díaz-Canel was about to implement:
<QUOTE>"We will continue to expand self-employed work – as I
have mentioned in different speeches before this parliament –
which represents an alternative source of employment within the
framework of current law, and far from signifying a process of
neoliberal privatization of social property, will allow the state
to free itself of managing activities of a non-strategic nature to
the country’s development. The experiment with non-agricultural
cooperatives will also continue.
Significant results have been achieved in both areas, but also
revealed are mistakes in management, control and monitoring, which
have led to the emergence of various forms of indiscipline such as
tax evasion, in a country where, before these measures were
applied, hardly anyone paid taxes; criminal acts and regulatory
violations, with the aim of getting rich quick, a problem which
was not addressed in a timely manner and resulted in the need to
modify various regulations linked to this sector."<END QUOTE>
This was a preview of the new constitution that was announced by
president Mario Díaz-Canel on Saturday. Here is part of
the announcement:
<QUOTE>"The economic system that it reflects maintains as
essential principles the socialist property of all the people on
the fundamental means of production and planning as the main
component of management, to which is added the recognition of the
role of the market and of new forms of ownership, between they are
private, in correspondence with the Conceptualization of the Cuban
Economic and Social Socialist Development Model and the Guidelines
of the Economic and Social Policy of the Party and the Revolution,
as a result of the consultation with broad sectors of society. ...
Regarding private property on the land, a special regime is
maintained, with limitations on its transmission and the
preferential right of the State to its acquisition through its
fair price."<END QUOTE>
So the new constitution allows entrepreneurs to keep their commercial
property, but the last clause means that the dictators in the
government can still confiscate property at any time. The Conversation (18-Apr) and Granma (Cuba) (Trans) and TelesurTV
****
**** Mario Díaz-Canel imposes harsh regulations on the private sector
****
Castro's speech in April referred to "mistakes in management, control
and monitoring." The fear of a quickly growing private marketplace
that might threaten the power of the dictatorship has motivated harsh
restrictions and regulations. The government froze issuing licenses
for some popular business categories last year, and new regulations
forbid a single person from holding more than one business license.
This has already discouraged badly needed investment in businesses,
and has even forced some business owners to close businesses because
business licenses had to be returned.
Investment is the reason why the economic changes are being made in
the first place. Cuba has decaying road infrastructure, a national
housing deficit, food shortages, and public transport problems.
Under the fanatical Fidel Castro, Cuba's economy was a continuing
disaster, first propped up by the Soviet Union, and later by
Venezuela. Now that Venezuela is an economic disaster, the payments
are getting smaller, and Cuba needs money.
Cuban officials want international investors, but no one is willing to
invest money in Cuba unless they believe that they can make a profit
and take the money out. So really, Cuba's new regulations restricting
business may may actually cancel out the advantages of owning private
property.
It's also good to remember that returning Cuba to capitalism does not
make it a democracy. I've written about many countries that
illustrate this. Nazi Germany was a capitalist dictatorship. China
today resembles a capitalist dictatorship. For example, Cameroon has
a capitalist economy, but the Francophone government still commits daily atrocities
on the
Anglophone community, including extrajudicial jailings, mass
slaughter, rape, torture, and burning down entire villages. Syria has
a capitalist economy, but the government of Shia/Alawite president
Bashar al-Assad continues full-scale genocide and ethnic cleaning
of hated Sunni populations.
Still, Cuba and Venezuela are a study in contrasts. Venezuela is
pushing forward with full-scale Socialism, destroying the country,
turning it into a military fascist state, starving the population, and
driving millions of families into neighboring countries as refugees.
Venezuela has become a worldwide poster child for what a disaster
Socialism always is, 100% of the time.
Perhaps because Venezuela is such a disaster, Cuba is taking a
different path, looking for a way to maintain the dictatorship, but at
the same time opening up the economy by abandoning Socialism in order
to encourage foreign investments. A dictatorship without Socialism,
as in the case of Cuba, isn't as disastrous as a dictatorship with
Socialism, as in the case of Venezuela, so at least Cuba is choosing
the lesser of two evils. Reuters and Havana Times and AFP
Related Articles:
- Cuba's new president Miguel Díaz-Canel makes delusional promise to continue Socialist revolution (20-Apr-2018)
- Cuba's seismic shift has global implications (16-Sep-2010)
- From Cuba to China, people worry about demise of Venezuela's Chavez (03-Jul-2011)
- Cuba's shift is similar to E. Germany, Hungary, Poland, others (18-Dec-2014)
- Venezuela's economic crisis is hitting Cuba hard (06-Aug-2016)
KEYS: Generational Dynamics, Cuba, Fidel Castro, Raúl Castro,
Miguel Mario Díaz-Canel Bermúdez,
Venezuela, North Korea, Socialist Principle Of Distribution,
Cameroon, Syria, Bashar al-Assad
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
