Cuba's economic and management policy response to the changing global environment
| Author | Susan Brandwayn |
| DOI | http://doi.org/10.1002/pad.4230130405 |
| Date | 01 October 1993 |
| Published date | 01 October 1993 |
PUBLIC ADMINISTRATION AND DEVELOPMENT, VOL. 13,361-375 (1993)
Cuba’s economic and management policy response to the
changing global environment
SUSAN
BRANDWAYN
United
Nations
SUMMARY
Amongst the various countries in transition, Cuba is pursuing a path of adjustment in which
it is striving to maintain the basic social achievements of its revolution. The article describes,
first, Cuba’s development in the period from 1960 to the mid 1980’s; second, the impact
of the changing international situation thereafter on the Cuban economy; and third, the way
in which Cuba has responded to the latter, specifically its efforts to promote diversified foreign
trade and investment and to create a new management culture supportive of the latter.
Against this background, an assessment is made of ongoing institutional reforms in the
exporting sector of Cuba’s state enterprises and planning system.
US
embargo notwithstanding,
Cuba is receiving significant international support for the latter, especially from the UN system.
The article finally assesses the prospects for the Cuban economy, in a situation of increasing
difficulty. Conclusions range over a number of issues that arise from Cuba’s strategy for
survival and renewed growth: (i) the emerging contradictions within its overall strategy, particu-
larly the split between the centrally-planned and controlled domestic market and the much
freer exporting and foreign exchange earning sectors; (ii) the ability of the population to
tolerate the adjustment costs and deprivations in the short term; (iii) international competition
with a number of other countries for foreign investment, particularly pharmaceuticals; (iv)
some of the strategic risks inherent in the selective and gradualist approach of Cuba and
its ability to turn around the economy in time to enable it to survive; (v) the ability of the
overall system to move quickly forward from basic management training to structural change
in what might be the enabling policy and institutional environment.
In confronting these challenges, the article also stresses (i) the adaptability of Cuban
managers who have shown themselves highly retrainable to play new roles in the global econ-
omy; (ii) the considerable resource endowments of Cuba, including abundant human capital
and investment in scientific and technological research and development, its location advan-
tages and its stability and determination.
BACKGROUND
Cuba’s socialist system
was
established in January
1959,
after the forces of Fidel
Castro ousted the Batista dictatorship. In contrast
to
its predecessor, the new Govern-
ment
made great strides to improve the general standard of living in a socially equi-
table
fashion, through increased expenditures in health, education,
and
the provision
of housing for all; and to develop indigenous scientific and technological capacities.
The situation inherited
by
the
Castro Government
was
a
dire
one.
In
1958,
there
Susan Brandwayn is in the Transnational Corporations and Management Division, Department
of
Econ-
omic and Social Development, United Nations, New York, NY 10017. The views expressed are those
of
the author.
0271-2075/93/040361-15$12.50
0
1993 by John Wiley
&
Sons, Ltd.
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