Cuba’s Persistent Inequalities: An Evaluation Under Rawlsian Theory
Odae Bood
Abstract: The Cuban Revolution of the mid-20th century was purportedly about decreasing relative poverty and relative inequality. However, Cuba’s post-revolution wage disparity spiked during its Special Period after the collapse of the Soviet Union in the late 1980s and early 1990s. The organizational structure of the economy designed by the Castro government has been directly responsible for inequality in the country and has distorted Cubans’ perception of equity. John Rawls’s “justice as fairness” conception and his principles of justice can be useful in analyzing Cuban society.
Introduction
In Cuba’s planned economy, taxi drivers make more than doctors. In fact, those working in tourism typically have higher wages than the rest of the Cuban workforce. This is the result of Cuba’s policies to curb financial crises, and its recourse to tourism which developed a paradoxical scenario[i]. In its attempt to universalize state treatment of all citizens, Cuba’s government has inadvertently created a society where citizens experience inequality through Marxist-inspired economic organization.
The Cuban Revolution of the mid-20th century was purportedly about decreasing relative poverty and relative inequality. However, Cuba’s post-revolution wage disparity spiked during its Special Period after the collapse of the Soviet Union in the late 1980s and early 1990s.[ii]A number of socio-economic and political issues arose in Cuba following the policies enacted thereafter. The organizational structure of the economy designed by the Castro government has been directly responsible for conflicts arising from inequality in the country and has distorted Cubans’ perception of equity.
John Rawls’s “justice as fairness” conception and his principles of justice can be useful in analyzing Cuban society. Rawls argues for proportionality in sharing a society’s resources and in organizing society in a fashion whereby conditions are constructed to avoid inequality[i]. In the unique contexts of Cuba’s economic organization post-revolution, Rawls’ philosophical thought is useful to determine the ethical implications of government economic policies and consider how Cuba can ameliorate current manifestations of inequality.
Understanding Cuban Economics
The dynamics of Cuban economics shifted drastically in the aftermath of the Soviet Union’s dissolution. Prior to the collapse of the Soviet Union, Cuba received millions of dollars annually to develop its military and social programs. However, this was only a small measure of the financial benefits to the Cuban economy which relations with the Soviet Union generated. In 1960, Cuba was presented a $100 million credit at a favorably low interest rate of 2.5% from the USSR and entered an agreement to purchase Soviet oil below market value[ii]. Cuba capitalized on low oil prices to buy in surplus and then resold oil to other countries at market prices. The backing of the Soviet Union guaranteed Cuba a kind of economic stability and its government felt Cuba did not need to pursue typical economic growth schemes. An illustration of this lackadaisical approach to economic policy is the practice of monoculture with Cuba’s sugar industry. Until relatively recently, Cuba never sought to diversify its economy and instead relied heavily on sugar production. For decades Cuba was the world leader in sugar exports, a fact that did not change with the U.S. slashing sugar quotas[iii].
With the combination of Soviet trade, subventions, easy access to credit, and a highly productive sugar industry, the durability of the Cuban economy seemed intact. When the Soviet Union collapsed, as if on cue, Cuba was plagued with power cuts, medicine supply shortages, a rapidly developed black market and a plethora of other factors that rendered the country unstable. In 1993, Cuba’s problems peaked as the GDP dropped to -14.9 and Cubans lost faith in the government’s ability to not only recover the economy but to sustain the social purpose economic model of the Marxist Castro administration. Fidel Castro intended to maintain egalitarian access to goods and services and avoid spikes in inequality. The policies enacted in the 1990s did not achieve his goal as they increased inequality between urban and rural citizens, and between workers in different employment sectors. They also conferred unto tourists exclusive privileges most Cubans did not have access to.
