By Cira Rodríguez César Havana, Feb 7 (Prensa Latina) It is a complex process that poses several transformations at the same time: elimination of the convertible peso (CUC), a new and unique exchange rate of 24 pesos (CUP) for one dollar, for individuals and the state sector, abolition of the excessive subsidies and undue gratuities, and a change in the distribution of income.
As government authorities have explained, including the vice prime minister and head of the Economy, Alejandro Gil, ‘the monetary order is an essential measure to boost the economy, basis of the country’s development.
We are entering a period of profound and necessary transformations, the good of all’. On that basis, 2021 began with the most decisive procedure to advance updating of the economic model, and although as has been said, it will not solve all the problems by itself, it is essential to carry out other tasks ratified by the Economic and Social Strategy drawn up by the maximum direction of the country.
Among the objectives to be achieved, there is a different redistribution of resources, because logic indicates it’s better to subsidize people and not products.
Not leaving anyone homeless or applying shock therapy are the principles that govern the monetary system in Cuba, because although gratuities and subsidies are eliminated, the State ensures the protection of vulnerable sectors that may be affected by the measures implemented.
The new monetary reality implies, for various reasons, a rise in prices, in the first place, because with the devaluation the costs of products that have an imported component increase.
Hence, precisely, one of the main risks of the monetary system is that an inflation higher than designed is originated, but as President Miguel Díaz-Canel assures, abusive and speculative prices will not be allowed.
Free health, education and all the achievements of the Revolution will be maintained, and it will not stop subsidizing low-income families because this is part of the humanism of the Cuban socialist model, and the problem is that when this has a massive character, does not stimulate labor productivity.
For this reason, the monetary system implies turning work into the main source of wealth for the nation and allowing workers to earn income with the aim that all wage earners are in better conditions than before starting this process.