From our Bureau of Socialist Priorities with some assistance from our Bureau of Socialist Social Justice
Never let it be said that Castro, Inc. doesn’t have very clear priorities. Staying in power is their chief concern, and anything that helps them stay in control gets their undivided attention.
Since the military goons who run Castro, Inc. have severely limited intellects and no understanding whatsoever of economic issues, they keep investing more on resorts, hotels, and restaurants than on anything else, despite obvious indications that the number of superior beings from abroad — even the apartheid-loving Canadians — keeps shrinking and will only continue shrinking more and more as Castrogonia falls apart.
Meanwhile, the ills that affect Cubans –including food shortages and rising crime — are beginning to cross the apartheid force field that is supposed to protect superior beings from abroad. And the ruins of the Hotel Saratoga — which remain untouched since it blew up in May 2022 –continue to serve as a fitting symbol of all that is wrong with Cuba. Lord have mercy . . .
Loosely translated from Diario de Cuba
The Cuban regime invested a total of 16,321.2 million pesos in “Business services, real estate activities, and rentals” and “Hotels and restaurants,” the categories that include the construction of tourist facilities and those related to the leisure industry, in the first half of 2024.
According to figures published by the state-run National Office of Statistics and Information (ONEI), between January and June, these two sectors received almost 15 times more resources than agriculture, livestock, and forestry (1,057 million), despite the severe food crisis the country is facing, which relies on imports to meet the minimum needs of its population.
The official figures of state budget expenditures confirm the trends and priorities of the authorities in recent years: while the sugar industry received 200.2 million pesos; fishing 295.2 million; science and technological innovation 323.2 million; education 441 million; construction 573.1 million, and public health and social assistance 769 million, 1,144.8 million were allocated to public administration, defense, and social security (i.e., to the state bureaucracy and the apparatus of repression).
The remaining beneficiaries of the largest state expenditures include mining and quarrying (1,734.4 million); transportation, storage, and communications (4,389.5 million); water, electricity, and gas supply (4,576.3 million), and manufacturing (excluding sugar production), with 8,396.9 million.
Following the presentation just days ago of the official investment balance for 2023, with the publication of the 2023 Statistical Yearbook, the current balance confirms that nothing has changed in the authorities’ priorities, despite their promises to reactivate the economy.
Regarding the figures now released by ONEI, Cuban economist Pedro Monreal warned that the “persistence of a highly distorted investment structure in Cuba is confirmed, with almost 40% concentrated in activities primarily focused on tourism.”
The expert pointed out on his X profile that “the data indicates a reactivation of the relative weight of investment associated with tourism in January-June 2024, with the rapid growth of recent investment in the ‘hotels and restaurants’ component being notable, despite the low occupancy rate of 28.4%.”
Furthermore, regarding the low investment in agricultural production (2.5% of the total investment for the period), Monreal noted that the official ‘priority’ regarding food security is nothing more than a slogan. Agricultural investment was 15 times lower than in real estate.”
“The sustained predominance of investment primarily associated with tourism means that it has a much greater relative weight than the combined investment in manufacturing and agriculture, two key areas for productivity and production linkages,” he warned.
The economist added that “total national investment only grew by 3.6% at current prices in January-June 2024 compared to the same period in 2023, but in an inflationary context, there should have been a real reduction in investment.”
“With a low investment rate measured as a percentage of gross capital formation in GDP and a highly distorted investment pattern, official statements about ‘reboosting’ the economy and fostering development are illusory,” he concluded.
In the forum on Monreal’s post, Jean-Serge R. Dias de Sousa, economic and commercial counselor of Belgium for Cuba, Haiti, and the Dominican Republic for Belgium, questioned the economist about the basis for his consideration of official investment in Cuba as “highly distorted.”
“With a decapitalized industry and agriculture, the percentage of investment in these sectors should be higher, and with the low tourism occupancy rate, the percentage of investment should be lower,” he responded.
To this, Dias de Sousa pointed out that this is “logical from a perspective of a national economic plan for investments and expenditures. But GAESA has its own agenda, its own financial and industrial system. What does the consortium care about national agriculture?”
To this, Monreal was categorical: “GAESA does not operate independently of the Cuban state. These investment decisions are part of the ‘plan.’ This does not contradict the fact that they are decisions incompatible with national development. How long will this continue? I don’t know,” he concluded.
4o
It’s not just that foreign tourists bring real money, but that ordinary Cubans only generate real money by getting it from the “diaspora,” and the more needy they are, the more the dia$pora will cough up.