HAVANA, 15 May (By Domingo Amuchastegui) Cuba’s reforms and changes, aiming at a complete redesign of its rigid, state-controlled socialist experience, has come to a point of no return.
There’s no turning back, and the Achilles Heel of this present stage is the effort to put an end to the two-tier currency system, with all its distortions in finance, accounting, incentives, productivity, and social differences. Although the Party’s Guidelines (Lineamientos) announced currency unification in 2011, it was only in October 2013 that the government disclosed a timeline, without details or specific dates.
A Granma article on Oct. 22 was clear: “It is imperative to guarantee the re-establishment of the Cuban pesos’s value and its role as currency, as a unit of accounting, means of payment, and of savings. Since then, a debate has ensued among academics and observers over what analyst David Brunat has called “the most sensitive subject Cuban lawmakers are to face in the economic sector.” Any discussion must consider two contexts.
One is the current state of the Cuban economy and the legacy of the past 20 years of coping with the downfall of Soviet-style socialism. A partial recovery has taken place, but GDP growth is still less than 3%, well below the 5-7% growth… continue at http://www.cubastandard.com/2014/05/14/analysis-cubas-currency-unification/