A must-read by Dr. Jose Azel in
Foreign Policy:
Here are
some excerpts:Last month, the Cuban government said it planned to fire 500,000 state employees, and perhaps over 1 million, saying "our state cannot and should not continue supporting... state entities with inflated payrolls, losses that damage the economy, are counterproductive, generate bad habits, and deform the workers' conduct."
Some heralded the announcement as a long-awaited sign that Havana under Gen. Raúl Castro is finally moving toward a market economy, others voiced substantial skepticism, and Marxists denounced it as a betrayal of communist orthodoxy. So, where is Cuba headed?
Most likely, nowhere fast.
Far from being a hopeful indication that Raúl is serious about economic reform, the abrupt layoffs reveal a government that is simply desperate to make ends meet. And they offer yet more evidence that Cuba, one of the last countries in the world to cling to Joseph Stalin's bankrupt ideology, is not interested in joining -- or, to be charitable, does not know how to join -- the globalized, 21st-century world [...]
In Cuba, a state permit is required even to shine shoes -- along with 178 other private economic activities that include mostly individual service activities from baby-sitting to washing clothes. It is also unclear exactly how those selected for dismissal will be chosen; seniority, patronage, friendship, ideological purity, or some form of capitalist or socialist merit? Will race or gender play a role in these massive firings? Will the dismissals disproportionately target those who receive remittances from abroad? Perhaps more important, how are those fired supposed to find jobs? In an economy with developed private competitive markets, employees dismissed from one firm have a fighting chance of securing employment in another. But in Cuba's economic system, the government controls most economic activity. There is no private sector to absorb the unemployed. Where will they find employment? [...]
The government is projecting a 400 percent increase in tax revenues, presumably to be collected from the fired employees turned entrepreneurs. More likely, Cubans will find ways to avoid paying taxes by relying on the black market for these economic activities. Cuban economist and dissident Oscar Espinosa Chepe writes from Havana of the impact of Cuba's economic situation on civil society: Cuban children, he tells us, grow up witnessing how their parents, obligated by circumstances, live by theft and illegality.
Because Cubans cannot live by the results of their legitimate labors and work has ceased to be the principal source of one's livelihood, a survival ethic has evolved that justifies everything.
One lesson to be learned from the transitions in the former Soviet bloc is that the success of reforms hinges on placing individual freedoms and empowerment front and center. In the decade following the collapse of the Soviet Union, the most successful transitioning countries were those that embraced political rights and civil liberties decisively: the Czech Republic, Estonia, Poland, Slovenia, East Germany, and Hungary. This is not where Cuba is headed with its "actualization of socialism."
The main reason is Cuba's Stalinist political order, which remains unchanged by this announcement.
In a system that denies basic freedoms, society is debilitated and corrupted by a miasma of fear. For five decades, fear has been an integral part of the everyday Cuban existence. This fear must be conquered if any national project of transition is to stand a chance of success.
The Cuban penal code that is used to suppress dissent defines disobedience, disrespect, illicit association, possession of enemy propaganda and socially dangerous, and more as "crimes against socialist morality." In Cuba, the crime of "social dangerousness" permits the government to imprison people for activities they may commit in the future.
Until this totalitarian document is reformed or wiped away, expect little to change [...]
For now, the firings only highlight the dismal state of the Cuban economic model, perhaps best depicted by the old Soviet joke: "We pretend to work and they pretend to pay us."
The regime in Havana is peddling a similar story today: They will pretend to reform, expecting the world will pretend to believe it. Let us hope nobody in Washington is buying.