BY CAITLIN GRAHAM –
There is no food, no medicine, there is no freedom. They do not let us live
Cuban protester for BBC Mundo
Cubans have withstood a long history of challenges; the missile crisis and US embargoes are prime examples. The new head of the Cuban Communist Party Leadership (PCC) Miguel Díaz-Canel appears to be one of them.
The last few weeks in Cuba have been chaotic. Protests began in the small town of San Antonio de los Baños on July 11, situated in relatively close proximity to Havana. Fed up Cubans protested on the streets to oppose the frequent electrical blackouts and lack of access to COVID-19 vaccines. The island nation has seen a spike in cases in recent weeks. Due to the rapid-fire nature of social media, word of the protests spread like wildfire across Cuba, the US and the world alike with #CubaSOS trending amongst locals, the Cuban diaspora and the wider international community.
As is the case with many protests, underlying disdain had reached a boiling point. Despite the fact that the protests originated for the purpose of opposing power cuts and a slow vaccine rollout, it has ignited long standing contempt within Cuba, particularly regarding economic and political freedoms.
Cuba’s political and economic history
Cuba is well known on the international stage for many reasons. These include its sugar and tobacco industries, the perception of the country as a tropical oasis, the infamous Cuban missile crisis, the Castro brothers and the longstanding Communist party (PCC) which has held firmly onto power. The Castro brothers; Fidel and Raúl respectively, both governed Cuba under the PCC. Fidel ruled as Prime Minister, and then President from 1959 until 2008, when he handed over the reins to his brother Raúl. Raul was also a member of the Revolutionary forces which overthrew Bautista, the previous Cuban leader, via guerilla tactics.
In April this year, Raúl stepped down as Party Secretary, which is the most powerful position in Cuban politics, claiming that his resignation was by his own free will. It was expected and shortly after confirmed, that Castro’s prodigy Díaz-Canel would replace him. It was presumed that Díaz-Canel would make few changes following the takeover. However, it was anticipated that he would take steps towards liberalizing the economy. The economy had suffered, both in the long term from US embargoes and sanctions and in the short term from the COVID-19 pandemic. In early April there were reports of shortages of food, medicine and basic goods.
Cuba’s economic standing: the tale of two currencies
Díaz-Canel initiated a plan that was approved by congress before he came to power within the CCP. His goal upon being elected this year is to unify the country’s two currencies, a proposal which some believe will cause high inflation. The Cuban economy, which is highly State-oriented, implemented a dual currency system in 1994. The two currencies are the Peso Cubano (CUP) and Peso Convertible (CUC).
The CUP is used by the State to pay its employees, which make up most of the Cuban workforce, whereas the CUC (the convertible currency) exists to convert the United States Dollar (USD) to a Cuban owned currency. Cuba is the only country in the world to print two currencies, and for good reason. The existence of two different currencies is ultimately problematic, particularly the existence of two pesos of different values. The CUC was originally intended for tourism purposes. This currency was to be an easy exchange from the US dollar, while the CUP was to be used for paying wages by the State. Problems arise when the two currencies have limitations on where and in what context they can be used, and when their official values differ. For example; 1 CUC is pegged against 1 USD, however 1 CUC also equates to 24.09 Cuban Peso. Both currencies are Peso, but are valued differently.
The economy also struggles under a system with basic tax laws, where income and corporate tax do not exist and businesses are taxed on the number of employees, which is stifling economic growth.
The 2021 Cuban Economic Crisis
With a new PCC leader, there were hopes of a united currency, but also fears of the consequences of transitioning. The prospect of a merger looked promising. However, considering the tourism sector is one of Cuba’s biggest industries and has been heavily impacted by the lack of tourists amid the COVID-19 pandemic, it is risky. The CUC will be the currency left behind during the merger as USD has over time made its way back into the Cuban economy, despite the banks not accepting cash.
Any hope that Biden would reel back Trump era embargos pardoned by Obama are fading.
Inflation is at 500% and is likely to climb. An earlier estimate has forecasted inflation to sit between 470% and 900%. Despite the US Administration’s support for the protests and for ‘Libertad’ (freedom), it is important to remember that everyday Cubans suffer under the penalties of the US embargos and blockades. The PCC has always had a clear warning for protestors. Nearly 60 Cubans are currently detained and the hunt for protest organisers is underway . The protests have gained traction, partially due to the use of social media (3g was only introduced to Cubans in 2019).
Cubans are fierce and resilient, but the future for Cuba is still unknown. However, this is the biggest uproar against the PCC since the Cold War era. Havana local, Alfredo Martínez Ramírez claims that this is the perfect moment Cubans have been waiting for. The protests are igniting, according to Ramírez, “because the people are hungry, and they have lost their fear.”.
