Cuban government announces acceleration of privatization and austerity measures
Alexander Fangmann
Cuba is not a workers’ state, and never underwent a socialist revolution.
Earlier this month, Marino Murillo, vice president of the Cuban Council of Ministers, announced that during the rest of this year and through the next the state would enact and carry through the next phase of its privatization and austerity measures, creating “the most profound transformations.”
The measures, which were first announced in 2010 by Cuban President Raul Castro as part of a 300-point plan, represent the deepest changes to the Cuban economy since the taking of power by the Castro regime in 1959. Like austerity plans being carried out elsewhere in the world, the aim of these measures is to make the working class pay for the world capitalist crisis through mass layoffs, privatization, speed-ups, and the elimination of social welfare measures.
Murillo contrasted the upcoming changes with the first phase of reforms that “entailed eliminating the prohibitions in society.” The previous round, a centerpiece of which was the announcement of layoffs of 500,000 state workers, was accompanied by the relaxation of prohibitions on petty business activity, the hiring of labor by individuals, and property transfers as the government cynically encouraged the newly unemployed to go into business for themselves selling candy, cutting hair, or raising rabbits. Politically, however, the encouragement and even adulation of “entrepreneurship” and the use of unemployment as a disciplinary tool represents a shift in the orientation of the Cuban elite toward openly capitalist relations.
The next phase of changes to the economy will deal substantially with the privatization of state-owned companies. Murillo put forward the perspective of the Cuban elite, which is now no longer even interested in maintaining the fiction that Cuba is a socialist society. He indicated that state-owned companies will no longer play even a nominal social role in regard to maintaining employment levels, but will be held to performance measures typical of the market, and said: “We must eliminate all the hurdles that are holding them back.”