India's National Magazine
From the publishers of THE HINDU

Vol. 15 :: No. 22 :: Oct. 24 - Nov. 06, 1998

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INTERVIEW

How Cuba copes

Interview with Raul Valdes Vovo.

In the 40-year period since its liberation from the corrupt and dictatorial regime of Fulgencio Batista, who was backed by the United States, socialist Cuba has made several impressive achievements. After wiping out illiteracy through a mass literacy campaign in the first year after the revolution, Cuba now provides practically all its citizens eight years of free school education. With one teacher for every 42 citizens, the country has the highest teacher-to-population ratio. Similarly, socialist Cuba's record in health care is enviable. Its infant mortality rate is lower than that of the U.S. The ratio of one doctor to 183 citizens, which reflects another of its achievements, is among the highest in the world. In terms of economic development, Cuba now has a much more diversified structure and is no longer a sugarcane-based mono-crop economy. Its scientific and technical achievements have won worldwide acclaim. The advancement it has made in fields such as biotechnology is all the more remarkable when viewed in the context of the sustained and ruthless economic blockade imposed by its powerful neighbour, the U.S. The blockade is practically as old as liberated Cuba.

Cuba faced an exceptionally difficult situation when the U.S. intensified its blockade through the Torricelli and Helms-Burton Acts in the early 1990s. The collapse of the erstwhile socialist regimes of Eastern Europe and of the Union of Soviet Socialist Republics (USSR) deprived Cuba of valuable economic support. It had enjoyed a favourable trade arrangement with the U.S.S.R., whereby it obtained petroleum in exchange for sugar. This was important for a developing country like Cuba in the context of a volatile international economy, but this buffer has not been available since 1992. Cuba's efforts to address the complex challenges of the 1990s are especially relevant to the ongoing debate on strategic choices open to developing countries in a world of hegemonic globalisation.

In an 80-minute interview to V. Sridhar and Venkatesh Athreya, Raul Valdes Vovo, 69, Central Committee member of the Communist Party of Cuba, who was recently in Chennai to attend the 17th Congress of the Communist Party of India (CPI), explained how Cuba is trying to carve out a strategy quite distinct from the standard neoliberal orthodoxy, even while utilising foreign capital. Economic reforms in Cuba stand out in sharp contrast to the type and nature of reforms introduced elsewhere.

Vovo, who is Rector of the Nico Lopez High School of the party in Havana, joined the revolutionary movement when he was 13 years old. A close friend of President Fidel Castro and Raul Castro, he was Cuban Ambassador to North Vietnam between 1965 and 1974. He also served as Cuba's representative to the Viet Cong during this period.

Excerpts from the interview:

How has Cuba coped with the crisis caused by the U.S. blockade and the collapse of the socialist economies in eastern Europe in 1992?

We have all the difficulties of this world. Before the Revolution our economy was underdeveloped, was mainly agrarian, and was in the hands of the Americans. We undertook agrarian reforms and started to develop our economy. Soon after the Revolution, the U.S. imposed an embargo against us - an economic and genocidal war. Hunger was held out as a weapon against us.

The Soviet Union was ready to have good relations with us. These relations also meant good business for the Soviet Union. The cost of production of sugar in Cuba was much lower than in the Soviet Union. The arrangement to exchange sugar for oil ensured that the Soviet Union would pay Cuba higher prices for sugar than those prevailing in the world market. More important, from our point of view, the arrangement ensured that if prices of commodities that Cuba imported from the Soviet Union increased, the prices of Cuban exports (mainly sugar, citrus fruits and nickel) would increase automatically. Initially, the sugar-for-oil exchange was at the rate of seven tonnes of oil for one tonne of sugar. After (Mikhail) Gorbachev came to power, this exchange rate changed to three tonnes of oil for one tonne of sugar. Nevertheless, this was not bad for us.

Suddenly, this market mechanism collapsed. There was not a single place where we could sell our sugar or buy oil. This started an economic crisis, a phase which we call a special period. I have to underline the fact that this crisis has nothing to do with the nature of our system.

What were the measures taken to face the special period?

We have had to legalise the existence of two currencies - the U.S. dollar and the Cuban peso. The peso has appreciated against the dollar during the last few years. Four years ago a dollar was exchanged for 150 pesos - now it is only 22 pesos. That is because Cuba is growing. We accept the inflow of dollars from emigrants to their relatives. We are aware that this arrangement is not generally compatible with the nature of our system... It is purely temporary. Under socialism, everybody must work to earn... The hard currency remittances of emigrants can either be used for purchases at state-owned stores or be deposited in banks. They cannot be used by Cubans to buy factories.

T.A. HAFEEZ
Raul Valdes Vovo, Central Committee member of the Communist Party of Cuba.

At the state-owned stores where hard currency is used for purchasing goods, prices are high - probably the highest in the world. The revenue of these stores is utilised to provide one litre of milk for every child up to the age of seven years. Children between seven and 12 years of age are given one litre of milk and yogurt every week.

Edible oil, fruits, coffee, fish, eggs and other essentials are rationed. These rations may be enough for just 20 days in a month. Supplies for the remaining 10 days have to be bought in the free market. Farmers' cooperatives give 80 per cent of their produce to the state. This is distributed at very cheap rates - the prices have remained at the same level for nearly 40 years. The remaining 20 per cent is sold in the open market where prices are very high. However, during the last few years, as production by cooperatives has increased, open market prices have also come down.

We are still in an economic crisis. We have problems such as shortage of power, but the situation is improving. There are difficulties in transportation. Earlier there were not many bicycles, but now there are lots of them on the roads. Things are improving.

In 1993, gross domestic product fell by 35 per cent. In 1995 the economy made a modest recovery, growing by 0.7 per cent. In 1996, to our surprise, the economy grew by 7 per cent. In 1997 the growth was 2.5 per cent. This was achieved despite the worst drought in 40 years.

How was this recovery achieved?

We started joint ventures with foreign companies. These now account for about 5 per cent of our economy. In certain areas, like tourism, they account for 20 per cent. Tourism provides returns in hard currency quickly. Five years ago there were 80,000 tourists. Now we have one million. In another two years, we expect two million tourists. We are building hotels, some with foreign capital.

We have a socialist economy, which means that there is a state sector and a cooperative socialist sector. We allow private property (ownership) only by foreign investors who operate through joint ventures with the Cuban state. We changed the Constitution to allow even 100 per cent foreign investment in areas considered very important. However, the foreigners prefer to share with the state because hiring land is expensive. (Land is provided by the state as its share in most of the joint ventures.) We have not allowed - and will not allow - the emergence of a Cuban capitalist class.

Earlier, only small investors from abroad came. Now, some of the big companies are coming to Cuba - for instance, Cherry from Canada, which has invested in the nickel industry. Many companies from Europe - from Italy, Spain, France and the United Kingdom - are also investing. We had the problem of a high level of debts to Japan, which was an obstacle to the flow of investment from there. We have now decided that the debt would be adjusted against the exports that the joint ventures with Japanese companies would generate. We had an outstanding debt of about $ 600 million to Mexico, which we adjusted against investment made by companies from there in joint ventures in Cuba. Now we have cleared the debts.

The Cuban state determines the areas in which these joint ventures will be established. The state guarantees that there will be no nationalisation without the payment of compensation. Taxes are low and companies are allowed to repatriate profits. The state emphasises that the establishment of these joint ventures must lead to economic development. For instance, there are many joint ventures to look for oil in Cuba. The joint ventures enable Cuba to deal with the markets for capital and technology. But we keep our independence and our socialist traditions. In these enterprises, the party, the youth organisations and trade unions function openly.

How will you prevent foreign capital from trying to develop a social base inside Cuba?

That is a very important point. The foreign investors cannot recruit workers directly. They have to go to a state enterprise, which will give them the workers. If they want engineers they have to ask for them. These workers receive some part of the wages in dollars, but are mostly paid in pesos. The important point is that the Cuban state employs the workers. This mechanism prevents workers from developing the idea that they belong to the foreign enterprise.

How have the Cuban people responded to the crisis? How have they been involved in working towards a recovery?

We are against neoliberalism. About 80 per cent of Cuba's industrial capacity was closed after the crisis started, in 1993 and 1994. It was not very traumatic because the workers were themselves involved in the decisions on industrial closures.

The situation is still difficult, generally speaking. We have about 80,000 establishments (factories, shops, farms and so on) in Cuba. Of these, only 8,000 may be working efficiently. Now there is a great movement among the workers to improve the performance of these establishments.

Outside Cuba it is difficult to imagine the extent of workers' participation in the affairs of the state. For instance, we wanted to introduce taxes in Cuba - before 1992 nobody paid any taxes. The state budget was based on the earnings of the enterprises. In recent years, a new segment - the self-employed - has emerged in Cuba, which pays taxes. The joint ventures also pay taxes.

The state has also contemplated imposing taxes on wages and salaries. But this will not be done without asking the workers. Not just this, we will also ask them to suggest ways and means to clean up the finances of the enterprises. The great majority of workers decided to have higher prices for cigarettes and alcohol. (The problem of alcoholism has never been as serious in Cuba as it was in the Soviet Union or Germany). However, as for tax on wages, the workers disagreed. The National Assembly approved this and Fidel (Castro) said: "The imposition of taxes on wages and salaries was my idea, but I accept the opinion of the workers. However, if it is necessary at a later stage, we will come back to the workers with this question again."

There appears to be increasing dissent in the industrially advanced countries against U.S. policy towards Cuba. In Canada, and more important, in Europe, there have been organised efforts to break ranks with U.S. policies towards Cuba. For instance, in November, an international conference against the blockade is to be held in Brussels, where apart from popular issues such as culture, business is also to be represented. How positive are these developments?

The Problem Number One of the world is the U.S. It wants to be the master of the world, a unipolar world. But this is irrational. How is it possible that the U.S., with 5 per cent of the world's population, utilises one-third of the world's energy resources and 44 per cent of raw material resources. It is only made possible by the fact that the dollar is the hard currency for everybody around the world. The speculation that such a system generates is the primary cause of the global economic crisis. The development of new power centres - whether in Europe, Latin America, the Caribbean region or anywhere else - is good for the Third World; it enables them to be more free from U.S. influence.

But do you see these developments as easing the blockade against Cuba in the near future?

Even businessmen in the U.S. want to do business with Cuba. They say: "Let us make business, not war." Many people are also asking: "If the U.S. can do business with China, why not with Cuba?" The important thing is that a global economic crisis is inevitable. Mexico, already affected earlier, has been hit again. Japan, Russia and South-East Asia have all been affected. Very soon Brazil is going to be hit by the crisis. It will then affect Argentina, Chile and other countries.

These crises will destroy everything. They are very dangerous. They will lead to the rise of fascism... Fascists from the top - like in the U.S. - and fascists from the base - from populist movements seeking for a way out of the crisis. The situation is very dangerous not only because it will cause widespread destruction but also because it will hit the revolutionary movement all over the world.

Because of the crisis, even skilled people are losing work. The crisis will also make people realise the necessity of a fundamental change in social life. This will offer opportunities for the revolutionary movement.

The Cuban health care system is acclaimed as a model for other countries. How has the crisis affected health care?

Even Hillary Clinton (U.S. First Lady) has praised the Cuban health care system. The main problem is medicines. Cuba now has 60,000 doctors - one for every 183 inhabitants. Health care is free in Cuba. Medicines in hospitals are free - at home, patients have to pay for medicines. The U.S. embargo on medicines is criminal...so terrible that we cannot even buy aspirin from the U.S. even though it is situated so close.

Education is free from kindergarten to university level. Cuba has one teacher for every 42 inhabitants - among the lowest teacher-student ratios in the world. The crisis has affected health and education. It is not easy to get books, pencils and pens, medicines and other essential things.

So, how do you cope with this situation?

In Cuba, Ministers do not have to be provided expensive residences. Ministers are honest. Each dollar is accounted for and there is careful monitoring of state expenditure.

How was Cuba, a developing country, able to make great advances in areas such as biotechnology?

The achievements in science were based on making education available to everybody after the Cuban Revolution. The Party raised the slogan that everybody must pass six grades. Now, to pass six grades is not enough (laughs). The minimum now is nine grades.

What is the magnitude of the problem of unemployment?

ANTONIO RIBEIRO/GAMMA
Fidel Castro.

Because of the economic crisis, the unemployment rate is 6 to 7 per cent of the population that can work.

How has the Cuban Revolution addressed the crisis of gender discrimination?

Women account for 60 per cent of the skilled workforce. We do not say that we have solved the problem of discrimination against women. But I think we have solved the crux of this problem. Consciousness about the rights of women is being developed at all levels, and at every forum, including the Central Committee of the party, Parliament, and among Ministers, these issues are discussed seriously. I have to work at home (laughs). There is also a Family Code. (The Cuban Ambassador to India, Olga Chamero Trias, joins in to say that infants, 45 days old, can be sent to creches so that mothers can get back to work.)

There have been reports that the emphasis on tourism to earn dollars has placed social relations under strain. There have been reports that Cuba has emerged as a sex tourism destination.

There are problems that can become dangerous - prostitution, for example. But it is not yet a social problem. At present, the problem is confined to some tourists. We will deal with the problem of prostitution very seriously...We will finish it. When we find women engaging in commercial sex, we talk to their families and engage social workers to deal with them. We find that in some cases parents ignore what their children are doing because they want to make money. We will not allow women to sell their bodies and spirits. We will deal sympathetically with those who become involved in this kind of activities because of the economic crisis. But we will deal very severely with the agents who are involved in commercial sex as a business. We have recently introduced a law to deal with all elements who form the organised racket in such crimes.

Can you tell us about your experience in Vietnam before reunification when you were there as the representative of your party?

I was in Vietnam from 1965 to 1974. While I represented the party in Vietnam I also functioned from there as the Cuban Ambassador to Cambodia. I also opened offices of the Cuban Embassy in the forests, in areas controlled by the Viet Cong in South Vietnam. I appreciated, at that time, (King Norodom) Sihanouk's attitude of positive neutrality. I also had a personal friendship with Sihanouk. I was involved in determining the manner in which Cuban assistance would be delivered to the Vietnamese people. Despite all this, we do not talk about what we did in Vietnam because it is nothing when compared to what Vietnam gave to us. They gave us the certitude that we can win against the U.S..

What is the role of the Party High School?

This is like a university of the party. Every year about 6,000 people come here to study. About 80 courses are offered here. The main course lasts six months. Members of the Central Committee, state employees, youth and other sections attend these courses. We also conduct special courses for journalists, lawyers and people working in various other fields. There are special courses for Ministers and Polit Bureau members - they have to spend one week at the school as students. They sit with other students. The rectors of all the universities in Cuba also attend two-week courses every year. Elected representatives - from the municipality level to Parliament - also attend courses at the School.

The Party High School functions at the national level, but there are also party schools at the provincial and municipal levels. These schools are aimed at enlightening the people - to study and work at the same time. The aim is not to search for truth in books but to use books to find truth in life.