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Cuba's Economic 'Reforms': Waiting for Fidel on the Eve of the Twenty-First Century

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Author Info
Roger R. Betancourt () (Department of Economics, University of Maryland)

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Abstract

In this paper we provide a brief summary and evaluation of the main economic changes or 'reforms' undertaken by the Cuban government during the 1990's. The thrust of our argument is that the regime does not seem to be interested in reforms that lead to a transition to a market economy or even in the more limited goal of introducing widespread market mechanisms subservient to the needs of the communist party as in China. Instead, their policies seem directed at generating mechanisms for the appropriation of foreign exchange by members of the nomenclature while keeping most citizens deprived of independent access to wealth creation activities. We develop our argument by looking separately at 'reforms' in two type of markets: those in which transactions are self-enforcing and those which depend on the contract enforcement mechanisms or services usually associated with market augmenting government to enforce transactions.

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File URL: http://www.bsos.umd.edu/econ/papers/betancourt9903.pdf
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Publisher Info
Paper provided by University of Maryland, Department of Economics in its series Electronic Working Papers with number 99-008.

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Date of creation: Aug 1999
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Handle: RePEc:umd:umdeco:99-008

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Postal: Department of Economics, University of Maryland, Tydings Hall, College Park, MD 20742
Web page: http://www.econ.umd.edu/

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Postal: Ms. Elizabeth Martinez, Department of Economics, University of Maryland, Tydings Hall, College Park, MD 20742
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Related research
Keywords: Cuba; Reforms; Transition; Markets; Self-enforcing Transactions; Market Augmenting Government;

Find related papers by JEL classification:
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
O1 - Economic Development, Technological Change, and Growth - - Economic Development
P3 - Economic Systems - - Socialist Institutions and Their Transitions
H4 - Public Economics - - Publicly Provided Goods
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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This page was last updated on 2009-10-18.


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