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External Liberalization, Economic Performance and Social Policy$
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Lance Taylor

Print publication date: 2001

Print ISBN-13: 9780195145465

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195145465.001.0001

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Cuba: External Opening, Labor Market and Inequality of Labor Incomes

Cuba: External Opening, Labor Market and Inequality of Labor Incomes

Chapter:
(p.143) 5 Cuba: External Opening, Labor Market and Inequality of Labor Incomes
Source:
External Liberalization, Economic Performance and Social Policy
Author(s):

Angela Ferriol Muruaga

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195145465.003.0005

The external opening that took place in the Cuban economy in the 1990s has unique characteristics that differentiate it from the experience of other countries: the Cuban opening was accompanied by a severe external adjustment of magnitude, much greater than that experienced by other economies of the region, and this opening was also part of a wider process of modification of the economic model, since there was a transformation from a highly centralized system based on balancing the distribution of material resources, to a system based mainly on financial mechanisms and a greater degree of managerial autonomy. So, Cuba's external opening has had a strong impact on all social and economic structures, and has become an important stimulating factor in helping to reinsert the Cuban economy into the international economy. This chapter gives an exposition of the main characteristics of the economic reforms, with emphasis on the external opening, changes in the labor market, and social policy measures. Subsequently, three aspects are analyzed (macroeconomic performance; mesoeconomic dynamics; and changes in the labor market, including workers’ remuneration); all those cases that reflect a direct relationship between the opening of the economy and labor revenues obtained by the population are also examined. Lastly, an analysis is made of the relationship between the labor revenues of households and their economic situation.

Keywords:   economic reform, external liberalization, external opening, households, inequality, labor market, macroeconomics, mesoeconomics, social policy, structural reform

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