Cuban and Caribbean Studies Institute

Tulane University

Paolo Spadoni on Cuba's Socialist Economy Today

On March 28, 2014, Paolo Spadoni, former post-doctoral fellow at CIPR (2008-09) and current assistant professor of political science at Georgia Regent University, discussed his upcoming book Cuba’s Socialist Economy Today: Navigating Challenges and Change, to be published by Lynne Rienner in May 2014.

Spadoni’s new book analyzes the Cuban economy in depth with an emphasis on the macroeconomic environment but also by sector, exploring the new reforms implemented by Raul Castro since he took over from Fidel in 2008.

The most important economic problems facing Cuba are large fiscal and merchandise deficits, growing foreign debt, sagging productivity and efficiency, stagnant real wages and pensions, and the dual monetary system. Cuba’s economic driver has been the service sector, with rising exports of professional services and an increase in tourism revenues. Yet productivity in all major sectors remains low and the country continues to be heavily dependent on food and oil imports.

Spadoni estimates that approximately 80% of consumer goods are imported, most importantly food and oil. With deeper agricultural reforms, including land redistribution and cultivation, Cuba could successfully increase domestic production for many of these goods and lessen its import dependence.

The labor market is also experiencing changes as government jobs are insufficient to keep the population fully employed. Raul Castro’s desire to layoff 1.2 million state employees to increase efficiency and decrease corruption has remained short of the mark as job creation is lagging. A more successful job creation program could allow Cuba to avoid the flight of highly skilled professionals to service sectors in which they can earn hard currency but where their technical knowledge is underutilized.

Spadoni noted that salaries and pensions are currently one quarter and one half, respectively, of what they were in 1989. This has forced Cubans to turn to remittances from abroad, tips from tourism and hospitality, and black market activities to satisfy their needs. He noted that it would be impossible for the state to decrease the rationing system or change the current dual monetary system until state enterprises produce more, raising the real wages to a point where Cubans can subsist on their salaries.

Spadoni commended Raul Castro’s stance on corruption and the embargo. Castro has acknowledged that corruption has created many of the problems Cuba is currently facing, and he is encouraging Cubans to stop blaming the embargo for the country`s failures. Instead, he has started looking for internal solutions. His reforms are well conceived, but they do not go deep enough. Priority should be on job creation and productivity increases, as well as full realization of property rights for cooperatives and new entrepreneurial initiatives.

Paolo Spadoni is also the author of Failed Sanctions: Why the U.S. Embargo against Cuba Could Never Work (University Press of Florida, 2010).

LATEST SITE UPDATES

EVENTS

NEWS

PEOPLE

All Events

Upcoming Events

Call for Papers: Association of Academic Programs in Latin America and the Caribbean 2018 Conference

View Full Event Description

The Association for Academic Programs in Latin America and the Caribbean (AAPLAC) seeks session proposals for its 29th Annual Conference in New Orleans, Louisiana, February 21-24, 2018, hosted by the Stone Center for Latin American Studies at Tulane University.

This year’s theme, “Study Abroad: Meeting the Challenges of Cultural Engagement,” includes a variety of paper topics, including:

  • New Orleans after Katrina: The impact of the growing Hispanic population which came to help with rebuilding and has since stayed on
  • Interdisciplinary Institutional Content Assessment: How to best track what students are doing overseas and the benefits for our campuses
  • Global Partnerships through Peer Collaboration: How we can better work with institutions in Latin America and the Caribbean
  • Research Collaborations – U.S.-Latin America: Faculty led/student participation in on-site studies
  • Anglo-Hispanic Challenges: Cross-cultural understanding through experiential learning and study abroad
  • Strategic Partnerships: How we can enhance protocols between our schools in the US and those in Latin America and the Caribbean
  • Strengthening AAPLAC Relationships through Inter-Organization Mentoring: How we can enhance protocols amongst our schools in the US
  • Latina Empowerment: More women on study abroad programs: How we can take advantage of this bond between women of the North and the South
  • Rethinking Mobility: How is the student’s identity compromised/enhanced abroad?
  • Community-Based Partnerships: How students can learn as they engage with local communities in working type environments
  • Crossing Borders: The eternal quest for a global space as students interact with the other
  • Global Xenophobia on the Rise of Brexit/Trump? What is our role?
  • Cuba: Future U.S. Relations – Impact on Study Abroad

Please visit the Call For Papers web page to download the proposal template, timeline, and more information about the conference.

For questions, please contact Laura Wise Person at 862-8629 or lwise1_at_tulane.edu.