Cuban Reform

2384 WordsJun 25, 201810 Pages
Since the Cuban revolution, Cuba has been characterized as having a powerful centralized government and as being socialist in nature. Fidel Castro maintained leadership of Cuba from 1959 until 2008 and guarded Cuba away from capitalistic ideology. Throughout his presidency, he was able to curtail the establishment of privatization and economic liberalization. For instance, as late as 2006 the public sector made up 78% of the economy and the private sector only made up 22% of the economy (Oxfam). However, with the election of Raul Castro in 2008 by the National Assembly, there seems to be a shift in ideology that is less antagonistic toward decentralizing power, privatization, and economic liberalization. Raul Castro has brought…show more content…
Provisions to this plan include bonuses of as much as 5%of an employee’s base salary just for meeting production quotas and managers will be limited to a 30% wage increase for improved performance (Robles). Similarly, people doing different tasks within the same premise are now being paying differently as well. Because payment is now based on merit, and not on communitarian equality, a person working an office position in a government company is no longer paid the same as the person who cleans the office (Robles). This creates ranks between different jobs and divides, in a way, blue collar work from white collar work. This is important to the economy of Cuba in two ways. First, it promotes motivation because people now work harder to obtain higher paying jobs. Therefore, employees now work with the assumption that if their dedication towards their job is recognized they may be promoted to a higher ranking job, furthering their career. Therefore, in an attempt to be promoted or hired to do a better paying job they will work harder where they are currently. Secondly, those who were previously underpaid are now being recognized adequately for the tasks and functions they perform. People with more skills are now being paid what they expect to be paid. Thus, because the Cuban people are being paid in ratio to their work status, there work ethic is much higher. It has lead to higher outputs which help the
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