3. The cuban economy in the storm (extract)
"Before, the foreign trade was simple" explains Ricardo Cabrisas, Minister cuban for the foreign trade, "a delegation would go to Moscow once a year and on a oiece of paper one would write the list of products of the USSR to be sent towards Cuba and other side, the products of Cuba to be sent towards the USSR. The prices were fixed after discussion between the two ministers concerned."But in 1990 with the collapse of the socialist block, everything changes overnight and Cuba must cope with the hardest economic shock of its history: the disappearance of the big Soviet brother causes a long descent into Hell, one period of restrictions without precedent baptized officially "special period in times of peace". During four years, the GDP decreases until cutting down the cuban population of almost 40% of its incomes in 1993.
To face this situation which threatens the island with implosion, the cuban authorities start a series of reforms which upset the cuban society: legalization of the dollar, opening to foreign investment, fast development of tourism, autorisation for smalls businesses and private initiative. "Before the problem was the fatherland or death, now we must be soldiers of the economy". Fidel Castro himself made clear the new priorities of his government as opening the 4th congress of the Communist Party which was held during the autumn of 1997. But the cuban people do not believe in it any more: with the passing of years it wearied drivels and imprécations of the "comandante": the growing old caudillo reacted too little and too late. Taken in the vice of a socialism hyper bureaucratized and a hostile environment due to American embargo, Fidel chose solutions of partial liberalization adopted without true coherence. The reflex of survival of a weakened power prevailed on the basic necessary reforms, and the sluggish reovery of the economy did not put an end to the ceaseless shortages and omnipresent rationing.Official propaganda is now unable to hide the calamitous performances of the cuban economy whereas "the comandante" has succumbed to a true fever of mixing business and politics. Meanwhile the Cubans survive thanks to the dollars of the tourists, and the money sended by the families of Miami.
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