By Carmelo Mesa-Lago
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Additional resources for Cuba's Aborted Reform: Socioeconomic Effects, International Comparisons, and Transition Policies
Sample text
Another Cuban economist has noted that future increases in investment would have to be generated by increases in GDP, as it is not feasible to make further cuts to population consumption to shift resources from consumption to investment (Triana 2001). 7% in 1994 and turned negative (that is, became deflation) for 1999 through 2001. There is very little information on the methodology for computing the CPI, including the basket of commodities and services that might be included and the relative importance of each, whether the index is intended to measure price change at the national level or only in urban areas, and whether price changes refer to all outlets in which Cuban consumers can make purchases.
Data on most of these indicators are presented in table 4.
The potential disappearance or substantial weakening of the social safety net was also a concern: (1) high 18 / Cuba’s Aborted Reform unemployment would create serious economic and social problems; (2) significant inequality in income and in access to goods and services would weaken population unity; (3) price increases would adversely affect the consumption level of low-income groups; and (4) social services would deteriorate overall. Fidel Castro initially opposed any market-oriented reforms and in several speeches during 1990–92 rejected the facilitation of commercial relations between, on one hand, state farms and state-owned enterprises and, on the other, family-owned enterprises or groups of workers; farmers’ free markets; the privatization of small businesses; and even the possibility of authorizing self-employed street vendors.