March 4, 2021

The president of Cuba denies that the high rise in wages is a populist measure



The president of Cuba, Miguel Diaz-Canel, denied on Tuesday that the imminent and substantial rise in state wages is a populist measure and he assured that it will be accompanied by other economic reforms, such as the long-awaited elimination of the double currency.

In an unusual intervention in the evening debate program of Cuban state television, the president ruled that the rise in salaries, which will benefit more than 2.7 million public workers this month, "has nothing to do with populism. "

Díaz-Canel responded to "the attacks of some who have never been interested in the well-being of the people," in reference to the critical voices that, mainly from social networks, considered that it was a populist measure to quell the growing complaints for the low wages and high prices of some products in the country.

The wage increase stipulates that minimum monthly salaries will rise from 225 Cuban pesos or CUP (equivalent to about 9.3 dollars) to 400 (16.6 dollars), the means rise from 767 Cuban pesos (about 30.6 dollars) to 1,067 pesos (44.4 dollars) and the maximum will rise to 3,000 pesos (about 125 dollars).

In Cuba the CUP coexists with the convertible peso (CUC) parity with the dollar and equivalent to 24 CUP according to the official open exchange rate, a monetary duality that causes distortions in the state accounts and that the Government tries to eliminate for years without that until now I have found the way to do it.

The Cuban president affirmed in his intervention today that the elimination of the double currency will be one of the measures that accompany the imminent increase of salaries, without specifying a date or the strategy that his Government will apply for the unification.

He also assured that Cuba will achieve "prosperity" despite the financial and commercial embargo imposed by the United States and hoped to correct the "internal blockade", referring to inefficient production and excessive bureaucracy of state agencies.

Díaz-Canel said that the impact of the new measures is expected to generate more motivations at work to produce more and better, as well as higher yields and better use of the working day, because "the entire economy of the country has to be linked "

For his part, the Minister of Economy and Planning, Alejandro Gil, also took part in the television appointment to ensure, among other things, that the rise in state salaries will not be accompanied by an increase in prices, arguing that Cuba does not apply the rules of supply and demand of market economies.

The rise in salaries in July will be accompanied by a rise in pensions of less than 500 pesos (20.8 dollars), which will benefit 1.2 million people with an estimated annual cost of 700 million pesos (29.1 dollars). million dollars), according to data previously offered by the minister.

(tagsToTranslate) president (t) Cuba (t) rise (t) salaries (t) populist



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