The document discusses updates to Cuba's economic model, including a GDP growth rate of 3.1% in 2013, lower than planned. It outlines national budget priorities like education, health, and culture. It also discusses challenges like the US blockade, declining tourism from Europe, and high import costs. The updates aim to boost agricultural cooperatives and small businesses, decentralize state enterprises, reform prices, credits and fiscal policies, and encourage exports and import substitution. The goal is to continue socialist planning while improving productivity and living standards.

1. UPDATING OF THE
CUBAN ECONOMIC
MODEL
Asociación Nacional de Economistas y Contadores de Cuba

2. CUBAN ECONOMY
GDP INCREASE WILL BE 3,1 %, AGAINST 3,4 PLANNED IN
2012
 ALL ACTIVITIES GROW EXCEPT CONSTRUCTION
 REST OF MATERIAL PRODUCTION GROWS 4,5 %
 SOCIAL SERVICES MANTAIN SAME LEVEL
 PLAN FOR 2013, 3,7 %
Asociación Nacional de Economistas y Contadores de Cuba

3. CUBAN ECONOMY
NATIONAL BUDGET
 TOTAL EXPENSES: 46,0 BILLIONS PESOS
 EDUCATION: 19,2 %
 SOCIAL SERVICES : 11 %
 PUBLIC HEALTH: 15,1 %
 CULTURE AND SPORTS: 4,3 %
Asociación Nacional de Economistas y Contadores de Cuba

4. EXTERNAL FACTORS
 BLOCKADE HAS INTENSIFIED, LOSSES REPRESENT OVER 1 TRILLION
DOLLARS
 PROHIBITION OF THE USE OF THE US DOLLAR
 TORICELLI AND HELMS-BURTON ACTS
 SECTION 211, OMNIBUS LAW
 ING FINED OVER 600 MILLION DOLLARS
 FLIGHTS FROM EUROPE TO CUBA, MEXICO AND CANADA
Asociación Nacional de Economistas y Contadores de Cuba

5. EXTERNAL FACTORS
 EURO CRISIS
 WE PAY MORE FOR IMPORTS AND GET LESS FOR EXPORTS
 TOURISM HAS DECREASED: SPAIN 20 %, UK 16 %.
 WEEKLY FLIGHTS FREQUENCIES FROM MADRID HAVE DECREASED
IN THREE
 NEW REGIONAL INTEGRATION POSSIBILITIES: ALBA AND CELAC
Asociación Nacional de Economistas y Contadores de Cuba

6. EXTERNAL FACTORS
 COMMODITY IMPORTS AND EXPORTS PRICE VOLATILITY,, HAVE
ORIGINATED A LOSS OF 10 BILLION DOLARS BETWEEN 1997 AND
2009.
 FOOD PRICES HAVE INCREASED SINCE JANUARY: WHEAT 42 %, SOYA
35 % AND CORN 27 %
 2012, FOR THE SAME VOLUME OF IMPORTS WE PAID 1,700 MM
USD AGAINST 1500 MMUSD IN 2011, IN 2013, 2000 MMUSD
 FINANCIAL SPECULATION HAS INCREASED 3 TIMES IN JUNE-JULY
Asociación Nacional de Economistas y Contadores de Cuba

7. INTERNAL FACTORS
 HURRICANES FROM 1998 TO 2008 BROUGHT LOSSES OF 20 BILLION
DOLLARS
 ECONOMIC LIMITATIONS SINCE 2005 TO FACE BALANCE OF
PAYMENTS DEFICITS
 LOW PRODUCTIVITY IN ENTERPRISES
 LOW EFFICIENCY IN AGRICULTURAL AND INDUSTRIAL SECTORS
 DECAPITALIZATION OF PRODUCTION FACILITIES AND
INFRASTRUCTURE
Asociación Nacional de Economistas y Contadores de Cuba

8. STRENGTHS
 A SOCIALIST ECONOMY WHERE PLANNING TAKES PRECEDENCE OVER
THE MARKET
 THE POPULATION SCIENTIFIC AND CULTURAL POTENTIALITY
 THE TOURIST POTENTIALITY OF OUR COUNTRY DUE TO ITS NATURAL
CONDITIONS AND OUR HOSPITALITY
 THE GUIDELINES APPROVED BY THE 6Th. PARTY CONGRESS AND THE
NATIONAL ASSEMBLY
Asociación Nacional de Economistas y Contadores de Cuba

9. UPDATING OF THE CUBAN
ECONOMIC MODEL PROCESS
CANTIDAD %
ORIGINAL GUIDELINES 291 100
MANTAINED 94 32
MODIFIED OR INTEGRATED TO OTHERS 197 68
MODIFIED 181 62
INTEGRATED TO OTHERS 16 6
NEW 36 12
TOTAL GUIDELINES 313 108
163 000 MEETINGS AND 3 MILLION CONTRIBUTIONS
Asociación Nacional de Economistas y Contadores de Cuba

10. IRREVERSIBILITY OF
SOCIALISM
NO POLITICAL CHANGES, NO ECONOMIC REFORMS
UPDATING OF THE CUBAN ECONOMY TO CONTINUE THE ROAD TO
SOCIALISM
MAINTAIN THE BASIC CONQUESTS, IE SOCIAL SERVICES
NOT TO LEAVE ANYBODY UNPROTECTED
SOCIALISM IS EQUAL RIGHTS AND OPPORTUNITIES FOR ALL CITIZENS, NOT
EGALITARIAN TREATMENT
Asociación Nacional de Economistas y Contadores de Cuba

11. ECONOMIC DEVELOPMENT
STRATEGY
 DRAFTED AND APPROVED FOR 2012-2015 WITH 55 GOALS
 STUDY AND INTRODUCTION OF NEW PROFOUND POLICIES OR
MEASURES, MORE COMPLEX AND WHICH LEAD US TO THE
MOST PROFOUND TRANSFORMATIONS
Asociación Nacional de Economistas y Contadores de Cuba

12. CONCEPTUALIZATION OF THE SOCIAL
AND ECONOMIC MODEL
STARTING POINT: 313 GUIDELINES
 MAIN MEANS OF PRODUCTION ARE STATE OWNED
 PRIORITY TO THE DEVELOPMENT OF PRODUCTIVE FORCES
 TOTAL PRIORITY TO THE AGRICULTURAL SECTOR
 DEVELOPMENT OF SECTORS WHICH GENERATE INCOME:
TOURISM, BIOTECNOLOGY AND PHARMACEUTICAL PRODUCTS
 NEW TAX SYSTEM
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13. GUIDELINES
PRINCIPLES
 DIFFERENT FORMS OF PROPERTY ADMINISTRATION: STATE
OWNED THE MOST IMPORTANT
 THE POPULATIONS MAIN INCOME SHOULD BE THEIR SALARY
 CONCENTRATION OF PROPERTY WILL NOT BE ALLOWED IN
NON STATE PROPERTY ADMINISTRATION OR OWNERSHIP
Asociación Nacional de Economistas y Contadores de Cuba

14. SOCIAL AND ECONOMIC
DEVELOPMENT PROGRAM
 ONCE THE CONCEPTUALIZATION HAS BEEN FINISHED WE MUST
ELABORATE A LONG TERM PROGRAM
 IT SHOULD HAVE FIVE YEAR PROYECTIONS AND YEARLY PLANS
 MACRO ECONOMIC AGGREGATES SHOULD BE DEFINED: GDP,
POPULATION AGEING, SALARY REAL PURCHASE
CAPACITY,MORTALITY RATE AMONG OTHERS
 IT WILL DEFINE THE NEEDS FOR FOREIGN INVESTMENT AND THE
VALUE CHAINS IN PRODUCTION
Asociación Nacional de Economistas y Contadores de Cuba

15. SOCIAL AND ECONOMIC
DEVELOPMENT PROGRAM
 PLANNING SHOULD CONTEMPLATE ALL FORMS OF PROPERTY
ADMINISTRATION AND TAKE INTO ACCOUNT THE MARKET
 DECENTRALIZE THE LEVEL OF APPROVAL FOR INVESTMENT PROYECTS
 SEPARATE STATE FUNCTIONS FROM THE ENTERPRISE FUNCTIONS
 DECENTRALIZATION OF MANAGEMENT DECISIONS AT THE LEVEL OF THE
ENTERPRISES
 BETTER COORDINATION BETWEEN THE PLAN GOALS AND THE SCOPE OF
FISCAL AND MONETARY POLICY
 INTEGRAL STRATEGY TO FACE POPULATION AGEING
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16. UPDATING OF THE CUBAN
ECONOMIC MODEL
PRICE POLICY:
 WHOLESALE AND AGRICULTURAL PRICES ARE LINKED TO THE NEW
MARKETING POLICY
 FULFILL STATE CONTRACTS AND SELL THE SURPLUS AT MARKET
PRICES
 THIS YEAR 57 % OF AGRICULTURAL PORDUCTION WERE SOLD TO
THE STATE
 PRICES SHOULD TEND TO MOVE CLOSER TO WORLD MARKET
PRICES
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17. UPDATING OF THE CUBAN
ECONOMIC MODEL
CREDIT POLICY:
 RENEGOTIATE STATE ENTERPRISES DUE DEBTS TO BANKS SO AS TO
FACILITATE NEW FINANCING
 RISK ANALYSIS
 TRANSFER THE EXTERNAL CREDIT CONDITIONS TO THE INTERNAL
ECONOMY WHENEVER POSSIBLE. LIQUIDITY INCREASE
 INCREASE AND DIVERSIFY CREDIT OFFERS TO THE POPULATION AND
NON STATE PROPERTY ADMINISTRATIONS
 47 000 CREDITS FOR OVER 300 MILLION PESOS HAVE BEEN GIVEN
TO THE POPULATION SINCE LAST DECEMBER
Asociación Nacional de Economistas y Contadores de Cuba

18. UPDATING OF THE CUBAN
ECONOMIC MODEL
STATE ENTREPRISES:
 THEIR EFFICIENCY ARE THE KEY TO THE SUCCESS OF THE MODEL
 NEW SYSTEM OF RELATIONS BETWEEN ENTREPRISES, OSDE AND
MINISTRIES
 GOVERNMENT BOARDS WILL BE CREATED
 THE ENTREPRISE PLAN WILL BE APPROVED AT THE OSDE LEVELS
AND WILL CONTAIN ONLY A LIMITED NUMBER OF INDICATORS
 WIDEN SCOPE OF ACTIVITIES
 THEY WILL HAVE THE NECESSARY FACULTIES
Asociación Nacional de Economistas y Contadores de Cuba

19. UPDATING OF THE CUBAN
ECONOMIC MODEL
STATE ENTREPRISES:
 DEPRECIATION WILL NOT BE CONTRIBUTED TO THE NATIONAL
BUDGET
 A FUND IS CREATED TO FACE FINANCIAL UMBALANCES AND CREATE
A RESERVE FROM PROFITS TO INCREASE WAGES
 THEY WILL OPERATE ONLY IN CUP
 THE SELECTED ENTERPRISES WILL RECEIVE TRAINING IN 2012
 THE EXPERIMENT WILL BEGIN ON JANUARY 2013
Asociación Nacional de Economistas y Contadores de Cuba

20. AGRICULTURE
LAW DECREE 300 HAS BEEN ENACTED
LAND GIVEN IN USUFRUCT WILL INCREASE TO 13,4 HECTARES,
OR UP TO 67 IF YOU HAVE OTHER LAND IN UBPC OR CPA
HOUSES CAN BE BUILT
THE USUFRUCT RIGHT CAN CONTINUE FOR THOSE FAMILY
MEMBERS WHO ARE WORKING THE LAND
THE USUFRUCT IS FOR 10 YEARS, CAN BE EXTENDED FOR
SUCCESSIVE SIMILAR PERIODS
Asociación Nacional de Economistas y Contadores de Cuba

21. AGRICULTURE
NEW MARKETING POLICY IN HABANA, ARTEMISA Y MAYABEQUE
TO MAKE MORE FLEXIBLE AND TO REVITALIZE SUPPLIES AND
SALES TO THE POPULATION
PRODUCERS WILL HAVE DIRECT ACCESS TO MARKETS
STATE OWNED AGRICULTURAL MARKETS WILL BECOME
COOPERATIVES
Asociación Nacional de Economistas y Contadores de Cuba

22. UBPC
1 MILLION 770 THOSAND HECTARES, 496 000 IDLE
1989, 540 WITH A FAVORABLE SITUATION, 1122 THAT MAY SOLVE
THEIR PROBLEMS AND 327 TO DISSAPEAR OR MERGE
116 MILLIONS OF WORKING CAPITAL INCLUDED IN THE NATIONAL
BUDGET WILL COVER A PART OF THEIR ACCUMULATED DEBTS
THE REST UP TO 332 MILLIONS WILL BE PAYED BACK THROUGH A 5 %
TAX ON GROSS SALES BEGINNING IN 2013
BANK DEBTS WILL BE RENEGOTIATED UP TO A MAXIMUM OF 25
YEARS
Asociación Nacional de Economistas y Contadores de Cuba

23. UBPC
THEY ARE EXONERATED FROM PRESENTING A TAX DECLARATION AND
PAYING TAXES FOR THE FIRST FIVE YEARS
DEBTS WITH THE TREASURY FOR 7 MILLION 800 THOUSAND PESOS
WIL BE CANCELED
THEIR CCOPERATIVE STATUS IS RATIFIED AND THEY WILL WORK
UNDER THEIR OWN RULES AND GENERAL ASSEMBLY
HOUSES CAN BE VALUED AND SOLD TO THE PARTNERS
PRODUCTION NOT CONTRACTED WITH THE STATE CAN BE SOLD
FREELY
Asociación Nacional de Economistas y Contadores de Cuba

24. NON AGRICULTURAL
COOPERATIVES
 PREFERED FORM OF NON STATE ADMINISTRATIONS
 STATE PATRIMONY FACILITATED FOR 10 YEARS IN USUFRUCT,
LEASING OR LOAN
 LEASING EXPENSES ARE DEDUCTIBLE FROM TAXES
 MEMBERS ARE PAID ACCORDING TO THEIR WORK
 THE ASSEMBLY MANAGES AND THEY HAVE LEGAL PERSONALITY
Asociación Nacional de Economistas y Contadores de Cuba

25. NON AGRICULTURAL
COOPERATIVES
 222 HAVE BEEN APPROVED ON AN EXPERIMENTAL BASIS, SUCH AS
AGRICULTURAL MARKETS, PERSONAL SERVICES, GASTRONOMY,
TRANSPORT
 GRADUAL PROCESS AND AFTER RESULTS A NEW GENERAL LAW WILL
BE ENACTED FOR COOPERATIVES
Asociación Nacional de Economistas y Contadores de Cuba

26. AUTONOMOUS WORKERS
 GIVE MORE FLEXIBILITY
 GENERALIZE IN THE WHOLE COUNTRY THE LEASING OF PREMISES
FOR PERSONAL AND HOUSEHOLD SERVICES, 1045 UNITS WITH 3556
WORKERS
 1183 GASTRONOMY FACILITIES WORKERS WILL BE LEASED, OF UP
TO 5 WORKERS. 14 % OF THE GASTRONOMY NETWORK
 NOVEMBER 2012: OVER 395 000
Asociación Nacional de Economistas y Contadores de Cuba

27. EXPORTS
 NICKEL
 TOURISM
 BIOTECNOLOGY AND PHARMACEUTICAL PRODUCTS
 TOBACCO
 COFFEE
 SUGAR
 OTHER TRADITIONAL PRODUCTS
Asociación Nacional de Economistas y Contadores de Cuba

28. SUBSTITUTION OF
IMPORTS
 MAIN EFFORT FOOD PRODUCTION STRATEGIC GOAL
 URBAN DEVELOPMENT OF AGRICULTURAL PRODUCTION
 CREDIT FACILITIES
 REDUCTION OF FISCAL CHARGES IN COMPARISON WITH OTHER
ACTIVITIES
 PRICE INCREASES FOR AGRICULTURAL PRODUCTIONS
Asociación Nacional de Economistas y Contadores de Cuba

29. INFRASTRUCTURE
 NEW PRODUCTION FACILITIES: CIENFUEGOS REFINERY AND GNL
PLANT. PETROCHEMICAL FACILITIES
 SPECIAL DEVELOPMENT ZONE IN THE PORT OF MARIEL
 RAILWAY FACILITIES
 OIL EXPLORATION IN THE GULF OF MEXICO
 SUGAR AND RICE PRODUCTION INCREASES
Asociación Nacional de Economistas y Contadores de Cuba

30. INFRASTRUCTURE
 UPDATING THE INVESTMENT PROCESS
 FACILITATE THE PARTICIPATION OF FOREIGN INVESTMENT WITH
THE FOLLOWING OBJECTIVES:
• ACCESS TO ADVANCED TECHNOLOGY
• MARKET ACCESS
• MANAGEMENT SKILLS
• MIDDLE AND LONG TERM FINANCING
Asociación Nacional de Economistas y Contadores de Cuba

31. NEW FISCAL LAW
 THE MORE YOU EARN THE MORE YOU PAY
 BUDGET LAW CAN BE UPDATED YEARLY
 GUARANTEE INCOME REDISTRIBUTION
 BETTER COORDINATION BETWEEN THE PLAN GOALS AND THE FISCAL
AND MONETARY POLICIES
 GRADUAL REDUCTION OF THE LABOR FORCE SALARY TAX FROM 25%
TO 5% IN 5 YEARS
 EARMARK INCOME FOR LOCAL GOVERNMENTS
Asociación Nacional de Economistas y Contadores de Cuba

32. ACTIONS WITH IMPACT ON
THE POPULATION
 ADD NEW PRODUCTS TO THE CONSTRUCTION MATERIALS BEING
SOLD TO THE POPULATION IN CUBAN PESOS WITHOUT SUBSIDIES
 110 MILLION HAVE BEEN GRANTED TO NATURAL PERSONS WHO LACK
LIQUIDITY SO AS TO UNDERTAKE CONSTRUCTION ACTIONS IN THEIR
HOMES
 CREDITS TO THE POPULATION MAINLY FOR CONSTRUCTION NUMBER
47 000 FOR A VALUE OF OVER 300 MILLION PESOS
Asociación Nacional de Economistas y Contadores de Cuba

33. ACTIONS WITH IMPACT ON
THE POPULATION
 FLEXIBILITY FOR THE PROPERTY TRANSFER OF AUTOS
 FLEXIBILITY FOR THE PROPERTY TRANSFER OF HOUSES
 THE POLICY FOR UPDATING THE WORK CODE HAS BEEN APPROVED
AND IT WILL BE SUBMITTED TO THE NATIONAL ASSEMBLY NEXT YEAR
Asociación Nacional de Economistas y Contadores de Cuba

34. SUMMARY OF MEASURES
TAKEN
INSTITUTIONAL MEASURES
 IMPROVEMENT OF MANAGEMENT SYSTEM AND GOVERNING
BODIES
• REDUCTION AND MERGING OF MINISTRIES
• REORGANIZATION OF MINISTERIAL FUNCTIONS
• REORGANIZATION OF THE LOCAL GOVERNMENTS OF POPULAR
POWER
Asociación Nacional de Economistas y Contadores de Cuba

35. SUMMARY OF MEASURES
TAKEN
INSTITUTIONAL MEASURES
 JURIDICAL REORGANIZATION
• 7 LAW DECREES APPROVED BY THE COUNCIL OF STATE
• 3 DECREES APPROVED BY THE COUNCIL OF MINISTERS
• 66 RESOLUTIONS AND INSTRUCTIONS ISSUED BY THE
CORRESPONDING MINISTRIES
• PROCESING AND DRAFTING OF SYSTEM AND SUBSYSTEMS RULES
MASAS MEDIA COMMUNICATION WILL SPREAD
INFORMATION ABOUT THE WHOLE PROCESS
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