September 27, 2020

The Cuban Communist Party evaluates the economy in a moment of scarcity

The Cuban Communist Party evaluates the economy in a moment of scarcity

The Central Committee of the ruling Communist Party of Cuba (PCC, only legal), evaluated on Thursday the status of the Government's projects to straighten the country's finances, at a time of scarcity and incipient fears of an upcoming economic crisis.

Cuba faces "financial restrictions and an inefficient compliance with the investment process," Economy and Planning Minister Alejandro Gil said at the 9th Plenum of the Central Committee of the PCC, chaired by ex-president Raul Castro.

In addition, he lamented that "exports do not grow with the required dynamics and foreign investment does not reach the levels demanded by the economy".

To solve these problems, he raised the need to "promote local development projects" and "advance self-sufficiency in the territories", in addition to optimizing the production chain and promoting investments that favor the supply of food, oil and renewable energy .

He also alluded to the National Development Plan of three phases (2019-21, 2022-26 and 2027-30), in which he called for prioritizing investment in telecommunications infrastructure, information technology, transportation, logistics and water and sanitation networks.

For his part, Raul Castro urged "to seek alternatives to the difficulties in each of the country's territories and not to sit idly by," for which he alluded to the example of "the revolutionary war" of the late 1950s in the that Cuba "came out victorious" against "the hostile policy of the US government," according to the state agency ACN.

The IX Plenum of the Central Committee of the PCC comes at a difficult time in the economy of Cuba, a country that for years tries to attract foreign investment and replace imports to solve their increasingly serious problems in the balance of payments.

The situation of Cuba's finances has worsened after the export revenues were broken in 2018. The country has a high level of indebtedness and the difficulties in materializing the investment processes continue.

In addition, the president of the United States, Donald Trump, has hardened the economic embargo on the island, diminishing his ability to earn an income.

Added to this is the uncertainty caused by the crisis in Venezuela, the main partner and supporter of the island, which contributes approximately half of the oil it needs to cover the national demand for electricity and transport.


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