The stunning figure was revealed by Cuban leader Raúl Castro himself: The Cuban government and its enterprises might have more than one million excess workers on their payrolls.
That’s more than one million unproductive workers, out of what official Cuban figures show is a total of 4.9 million people working in formal jobs in a country of 11.2 million people.
And that’s part of the explanation, several economists said, for a calamitously over-centralized and unproductive economy that, for example, forces a tropical island to import an estimated 60 percent of the food its people consume. The Cuban government has historically insisted on keeping people officially employed, even in unproductive jobs. Unemployment was last reported at 1.6 percent by the National Statistics Office (ONE).
About 95 percent of the jobs in Cuba's formal sector are with the government -- ministries, their agencies and enterprises -- though salaries are so low, averaging about $20 a month, nationwide, that many Cubans also have off-the-books work to make ends meet.
But the figures on excess jobs in the government and its enterprises mentioned by Raúl Castro surprised even some Cuban economists.
``We know there's an excess of hundreds of thousands of workers in the budgeted and enterprise sectors (and) some analysts calculate that the excess of jobs is more than one million,'' he said Sunday in a speech to the Cuban Communist Youth.
There are ``inflated payrolls, very inflated payrolls, terribly inflated payrolls,'' Castro said before adding a reassurance: ``The revolution will not forsake anyone. I will fight to create the conditions so that all Cubans have honorable jobs.''
It was not the first time that Cuban officials have publicly acknowledged the government has far too many employees.
The commerce and restaurant sectors alone in Cienfuegos, Cuba's smallest province, have 1,400 too many employees, according to a recent report in the newspaper Trabajadores, run by the government-controlled Cuban Confederation of Workers (CTC),
The province's education sector also is overstaffed by 1,025, and the sports sector by 500, the newspaper added, quoting Marlén Jiménez, a provincial official of the CTC.
This is something that i find completely uneccesary , but the government has always had topo many employees and they have always said that they need them. This is something that Cuban government does not look at or pays attention to because they feel like the government employees are never too much. Many changes are needed in the Cuban government as well as the economy because if not then their economy will never rise the way they want the economy to rise. Many changes need to be made including these that they were talking about. Fidel Castro made sure that there was always many employees in the government so that the country would aklways be in charge and well positioned like he always had it. Maybe his brother will make some better changes so that the country could change to a better position, more freedom, ands a better economy. Thank you for readiong this blog.
Saturday, April 24, 2010
Cuba's economy blog # 15
I recently read that potential buyers went to Cuba and made an agreement in Cuba to in crease the fligh schools. This is a big step in Cuba's economy and school. It will create moe jobs and the hunger for technology knowledge. These rich potential buyers made a deal with Cuba to increase the flight schools in Cuba and also increase the internet connection and bring more technologically advanced computers in the country so that they can be used for studying. The deal was made with the pourpuse of after the students were done studying in these schools and graduate, they would be sent to different countries where they will be needed to fly planes. More likely to middle east countries. This will be an increase of Cuba's economy and a great help for the Cuban people to also be interested in studying something so exiting as flights and to also be able to travel the world. Cuba's economy is said to grow 1.3 with this deal that was made. When the potential buyers were asked the reason for doing this, thewy said it was a good thing for Cuba's economy and also Cuba needed a technological upgrade and they wanted to be a part of it.
Thursday, April 15, 2010
Cuba's Economy... Blog # 14
Cuba’s economic freedom score is 26.7, making its economy one of the world’s least free, ahead of only Zimbabwe and North Korea. Its overall score is 1.2 points lower than last year, reflecting primarily a worsened score in investment freedom. Cuba is ranked at the bottom of 29 countries in the South and Central America/Caribbean region, and its overall score is less than half of the regional average.
Cuba’s overall economic freedom remains severely hampered by institutional constraints, and the private sector is very limited. Because the government dictates most economic policies, many aspects of economic activity are tightly controlled by the state. No courts are free of political interference, entrepreneurship is impeded, and private property is strictly regulated. Lack of transparency and excessive regulations limit trade and investment.
I think this is very sad for Cuba's situation since Cuba depends on China and Venezuela very much. The freedom of economy in Cuba is a very big barrier for the Cuban people to make anything out of themselves, which has them stuck at the same level forever without the opportunity of having a higher class or get higher wages. The government controls everything and it will remain that way until Cuba is not communist anymore. The government has taken the control of everything in Cuba where the people have no option but to follow rules and do as the government states. The people don't have the chance of creating their own business or make any investments which leaves them just living in Cuba without any hope of economical progress. Its sad but its the truth. Hopefully things change in Cuba and everything gets better for them. The new plans have been working but it is still all about the government, the people get only a small advantage on these new plans. Cuba just actually came out with a new brand of Cohiba cigars that were specially grown and rolled to make 100 boxes this year. 100 boxes is equal to 5000 cigars since each box has 50 cigars. Each box was priced at $750,000 and they are all already sold this year. Cuba has plans of growing these plants again and make these cigars again in 2016, but grow enough to make about 10,000 boxes for the year of 2016.
Enjoy the blog.
Cuba’s overall economic freedom remains severely hampered by institutional constraints, and the private sector is very limited. Because the government dictates most economic policies, many aspects of economic activity are tightly controlled by the state. No courts are free of political interference, entrepreneurship is impeded, and private property is strictly regulated. Lack of transparency and excessive regulations limit trade and investment.
I think this is very sad for Cuba's situation since Cuba depends on China and Venezuela very much. The freedom of economy in Cuba is a very big barrier for the Cuban people to make anything out of themselves, which has them stuck at the same level forever without the opportunity of having a higher class or get higher wages. The government controls everything and it will remain that way until Cuba is not communist anymore. The government has taken the control of everything in Cuba where the people have no option but to follow rules and do as the government states. The people don't have the chance of creating their own business or make any investments which leaves them just living in Cuba without any hope of economical progress. Its sad but its the truth. Hopefully things change in Cuba and everything gets better for them. The new plans have been working but it is still all about the government, the people get only a small advantage on these new plans. Cuba just actually came out with a new brand of Cohiba cigars that were specially grown and rolled to make 100 boxes this year. 100 boxes is equal to 5000 cigars since each box has 50 cigars. Each box was priced at $750,000 and they are all already sold this year. Cuba has plans of growing these plants again and make these cigars again in 2016, but grow enough to make about 10,000 boxes for the year of 2016.
Enjoy the blog.
Thursday, April 8, 2010
Cuba's economy.. blog #13
Marino Murillo, Cuban Economy and Planning Minister said this Friday in Havana that Cuba began 2010 with better organization over the previous year, although the international situation remains tense.Speaking to the press after a meeting with representatives of the National Association of Economists and Accountants of Cuba (ANEC), Murillo called to work smarter, with organization and creativity, as the challenges continue to be huge and complex. Murillo said that only by producing material goods the country can move forward.After reiterating that the GDP will increase this year, the Minister said that growth must be accompanied by sustainable development.
Murillo stressed on the need for Cuba to ensure the expected income to address problems, as requested by the Cuban President Raúl Castro, speaking last December before the National Parliament Assembly.
On the policy followed by the Cuban government toward foreign investment, the Minister stressed that there are well defined legal regulations and explained that the doors remain open to those who can provide market, finance and technology.
Murillo underscored the valuable contribution can make economists and accountants all over the country regarding the search for solutions to the problems of the nation, such as export promotion and substitution imports.
If Cuba keeps making these improvements from my pint of view, this will be a great year for them. Every time i read something about Cuba and the economy, the plans are great. Well have to wait and see if it all works out. The plans so far are very prosperitive which i think is amazing for them but you never know with these people how everything could end. If the GDP is increasing this year that's even better for them. All the struggle the Cuban people go through is very sad and this could help them live a little better if the government does not keep all the money like always and actually think about helping the people and increase the money and construction in towns. Hopefully everything will work out for the best. electronic devices and technology is always a plus in a country's economy and if Cuba acquire all these new materials to work with , it will definitely help them a lot.
Murillo stressed on the need for Cuba to ensure the expected income to address problems, as requested by the Cuban President Raúl Castro, speaking last December before the National Parliament Assembly.
On the policy followed by the Cuban government toward foreign investment, the Minister stressed that there are well defined legal regulations and explained that the doors remain open to those who can provide market, finance and technology.
Murillo underscored the valuable contribution can make economists and accountants all over the country regarding the search for solutions to the problems of the nation, such as export promotion and substitution imports.
If Cuba keeps making these improvements from my pint of view, this will be a great year for them. Every time i read something about Cuba and the economy, the plans are great. Well have to wait and see if it all works out. The plans so far are very prosperitive which i think is amazing for them but you never know with these people how everything could end. If the GDP is increasing this year that's even better for them. All the struggle the Cuban people go through is very sad and this could help them live a little better if the government does not keep all the money like always and actually think about helping the people and increase the money and construction in towns. Hopefully everything will work out for the best. electronic devices and technology is always a plus in a country's economy and if Cuba acquire all these new materials to work with , it will definitely help them a lot.
Thursday, April 1, 2010
Cuba's Economy.. Blog # 12
The director of the Tabaco de Cuba Entrepreneurial Group (TABACUBA) Oscar Basulto, who is also the president of Habanos S.A. Company said that more than 200,000 persons participate during the peak of the Cuban tobacco-leaf harvest.
Basulto gave an explanation on the island’s production of cigars and cigarettes and said that Habanos are considered as the best premium cigars in the world, while they are being commercialized in more than 100 countries by Habanos S.A.The executive explained that the national cigarette consumption reaches 12 billions units every year and that the industry expects to further improve production quality and increase its yield up to 15 billion cigarettes annually. He also said that by the end of this year Cuba could reach maximum employment which i think is great for Cuba and its economy. This is a nice goin for Cuba so far.
Tobacco is an important product for Cubans, from the cultural, economical, and historic perspective. The tobacco industry is a Cuban major economic sector. In western Pinar del Rio province alone, so famous for the quality of its tobacco plantations, more than 25,500 persons are employed in the sector. More than 50,000 employees are expected by the end of 2010 which i keep thinking is great as long as it really does happen. I also think that a rise is necessary too in the salary for the Cubans since they get paid such a small amount of money in Cuba. Right now the average salary in Cuba is US $18 a month.
Habanos S.A. executives said on Monday sales fell 8 percent to $360 million in 2009, so they have created the Julieta, a smaller, milder version of the Romeo y Julieta cigar, aimed specifically at female smokers.Women now make up only 5 to 10 percent of customers for Habanos, the worldwide distributor of Cuban cigars, marketing director Ana Lopez told a news conference kicking off the annual Habanos cigar festival.The Julieta is an attempt to overcome perceptions among women that Cuban cigars are made up of "only strong tobacco for men," she said.The search for new markets is needed because even though Cuban cigars are considered the world's finest, sales are slipping with the rise of anti-smoking laws around the world, said Habanos vice president Manuel Garcia.
Even with the creation of the Julieta, Garcia said Habanos has only modest hopes for 2010 sales, due largely to a weak economy in Spain, the biggest market for Cuban cigars.Habanos -- which produces other well-known brands such as Cohiba, Monte Cristo, Trinidad and Partagas -- has about 71 percent of the sales in its markets, Garcia said.The U.S. market, the largest in the world with 230 to 250 million cigars smoked annually, is off limits to Habanos due to the U.S. trade embargo imposed against Cuba since 1962..
All these plans sound great to me since a maximum employment in Cuba would be very efficient and good for the Cuban people. These plans and news that i find in the internet and the newspapers sound good to my ears and make me feel like there is hope for the Cuban people and somehow they will get what they deserve for all they do in the country. If the embargo opens and Cuba is able to trade with USA it would help the Cuban people greatly since doors would be open and and chances would be taken from the people in Cuba for the better of them. Communism has taken Cuba, which was a very rich country before 1959, to a devastating image and figure. Hopefully everything changes and it all becomes better for the best of everybody in the world. This way the Cuban people could leave the country if they wanted to and we can also visit the country too. The economy in the country would greatly grow and maximum employment would be reached too with a higher chance of Cuba getting back what it deserves.
Thursday, March 25, 2010
Cuba's economy.. blog #11
Yesterday in the newspapers i saw that the Cuban enterprise CIMEX is fostering the commercialization of new products such as the Caney rum (12-year aged) with the purpose of increasing its exports and sales amidst the current international financial crisis.This new rum, called Super Premium, is manufactured by the rum industry in eastern Santiago de Cuba.Tranquilino Palencia Estruch, an expert in the manufacture of this rum, said that the initial production of Caney 12 Years has already been sold to Bodegas Torres and the Sotabac Company, which will distribute the product.Dagnet Flores Aldana, Development Manager of CIMEX’s Wholesale Division, explained that they traditionally commercialize rum brands such as Caney and Varadero as well as the Cubita coffee although they are now promoting the sale of charcoal, mainly in Europe.
I think this is a great idea for Cuba since their plans to rise the economy of the country have been working slowly. Cuba's economy needs to grown in order to get better and by making these plans to create new products and export them, it will be a lot of help. The creation of this new rum is good since Cuba's rum is very demanded in Europe and people enjoy them very much. Also in Canada, the Cuban rum is very well enjoyed also. To me, Cuba should stay creating new projects and working on their economy and also on their government system. Cuba needs all the help possible to flow and for its economy to grow more. If Cuba keep these plans and projects, then they will have an economy boost and rum has always worked out well for Cuba so i hope they keep it up.
I think this is a great idea for Cuba since their plans to rise the economy of the country have been working slowly. Cuba's economy needs to grown in order to get better and by making these plans to create new products and export them, it will be a lot of help. The creation of this new rum is good since Cuba's rum is very demanded in Europe and people enjoy them very much. Also in Canada, the Cuban rum is very well enjoyed also. To me, Cuba should stay creating new projects and working on their economy and also on their government system. Cuba needs all the help possible to flow and for its economy to grow more. If Cuba keep these plans and projects, then they will have an economy boost and rum has always worked out well for Cuba so i hope they keep it up.
Saturday, March 20, 2010
Cuban economy.. Blog #10
The Cuban economy is facing some current changes for the better of it. The country maintains as a communist country but more jobs are being created and prices on food was said to be dropped a bit. Cuba has been facing communism since 1959 when Fidel Castro took over the country. Ever since 1959, all the people who owned businesses and farms were basically kicked out of their property and soon they fled from the country. The government took power of all the businesses and farms in Cuba and lucky were the people who were able to leave the country.
Soon enough after that, Castro became affiliated with all the other communist countries to make trades with them. In 1980, United Stated allowed Cuba to send people over, and what Castro did was clean all the jails in Cuba and send all the criminals to this country. That was called the boat-lift. All those Cubans came to this country and started taking over Miami and also the Tampa area.
Cuba's economy grew more since they got rid of all those people and were getting most of their supplies from USSR. Cuba participated in many wars that they had no business in going to but Castro obviously does not care about his people, so he sent many soldiers to Nicaragua, Angola, and Ethiopia. Many Cubans were killed and tortured in those countries, which was completely unnecessary but like I said, Castro does not care about his people. Recently with his "sickness", his brother Raul took over the country and has been the president for the past two years. Since Fidel's illness, nothing has been known about him, other than what Raul says on TV. Raul has made some smarts move towards the economy of Cuba and its well being. President Obama has gotten in touch with him and they have discussed some issues between the countries and now a couple of things have changed. The economy of Cuba now is slowly growing, and hopefully soon it will open up with USA and open the embargo so that the two countries will make trades.
Hopefully everything works for the best of both countries and each country can enrich from this deal.
Soon enough after that, Castro became affiliated with all the other communist countries to make trades with them. In 1980, United Stated allowed Cuba to send people over, and what Castro did was clean all the jails in Cuba and send all the criminals to this country. That was called the boat-lift. All those Cubans came to this country and started taking over Miami and also the Tampa area.
Cuba's economy grew more since they got rid of all those people and were getting most of their supplies from USSR. Cuba participated in many wars that they had no business in going to but Castro obviously does not care about his people, so he sent many soldiers to Nicaragua, Angola, and Ethiopia. Many Cubans were killed and tortured in those countries, which was completely unnecessary but like I said, Castro does not care about his people. Recently with his "sickness", his brother Raul took over the country and has been the president for the past two years. Since Fidel's illness, nothing has been known about him, other than what Raul says on TV. Raul has made some smarts move towards the economy of Cuba and its well being. President Obama has gotten in touch with him and they have discussed some issues between the countries and now a couple of things have changed. The economy of Cuba now is slowly growing, and hopefully soon it will open up with USA and open the embargo so that the two countries will make trades.
Hopefully everything works for the best of both countries and each country can enrich from this deal.