- Created: Wednesday, 08 June 2016 10:12
- Written by Helen Yaffe
Since diplomatic relations were re-established with the United States, Havana has become the place to be for pop stars, politicians, film makers and the fashion industry. President Obama visited Cuba, followed swiftly by British Foreign Minister Philip Hammond, and French President François Hollande. The US blockade is being chipped away, with the first licence granted for a US company – a small tractor manufacturer – to set up in Cuba. Major developments are underway: the Mariel Special Development Zone and the new Investment Law are channelling foreign capital into Cuba; tens of thousands of workers have transferred from state to private or co-operative sector employment; Cubans are permitted to sell their homes and cars on an open market; and the economic and social Guidelines approved in 2011 and updated in 2016 have reduced state control of the economy. In this dynamic context, in April 2016, the Cuban Communist Party (CCP) held its 7th Congress. Its focus was to consolidate the process of changes formalised by the ‘Guidelines for Economic and Social Policy’ approved in the CCP’s 6th Party Congress in 2011. Helen Yaffe reports.
Guidelines for ‘updating the economy’
In the months preceding the 6th Party Congress, nearly nine million Cubans participated in grassroots debates about the draft Guidelines. This formidable democratic process legitimised the Guidelines, which serve as the template for ‘updating the Cuban model’; to improve economic efficiency and productive capacity within a socialist framework. Numerous measures have been introduced in the last five years. These include: 2012 New Labour Code (debated in 7,000 workplace meetings by two million workers); establishing non-agricultural co-operatives (now around 400 with 20,000 workers); permitting market exchanges of privately-owned houses and cars (for Cuban citizens only); permitting direct commercial relations between the non-state sector and state sector entities; opening the Mariel ‘super port’ and Special Development Zone (FRFI 238); 2014 New Investment Law to attract Foreign Direct Investment (FDI) (FRFI 240).