Three decades after Che’s death Cuba is once again at a crossroads. Against the background of a transformed international situation the threat of counter-revolution and capitalist restoration threatens. US imperialism has once again tightened its grip and is spearheading attempts to overthrow Castro and recapture a playground for business tycoons.
With the loss of favorable trading arrangements with the former USSR in 1990/91 Cuba was plunged into economic crisis. This has been compounded by the attempts of US imperialism to isolate Cuba with the imposition of a trade embargo aimed at strangling the economy.
Every US President since the Cuban Revolution in 1959 has attempted to take measures aimed at bringing about the downfall of the Castro regime and restoring capitalism. Apart from economic blockades and sponsoring of mercenary forces other notable efforts by the CIA have included sending exploding cigars to “el jefe maximo” in Havana.
Castro, much to the irritation of the occupants of the White House, has survived nine US Presidents, each of which underestimated the massive support that existed in Cuba for the revolution – despite the absence of a genuine regime of workers’ democracy.
However, the past gains of the Cuban Revolution are now under threat as the prospect of capitalist restoration looms as a likely prospect. The regime, confronting the loss of economic support from the former USSR and isolation, has been driven to adopt a new economic policy. This has opened it up to foreign investment and ownership of sections of the economy, legalized the circulation of the US dollar and begun to threaten the existence of a centrally planned economy.
Prior to 1990/91 trade with the former regimes in the USSR and Eastern Europe accounted for 85% of Cuban exports. Sugar exports subsequently fell by 70%. The loss of these outlets and subsidies from these regimes resulted in a plummeting of the economy. Cuban Gross Domestic Product nose-dived by more than 30% during 1991. Despite apparently stabilizing the decline and increasing production during the last two years, the collapse that occurred during the early 1990s has not been made up for.
Living standards fell dramatically and rationing of bread and rice was introduced. Rationalization in the state sector led to the laying off of up to 500,000 workers. The regime has taken measures to ensure that health care and education are defended but has been unable to prevent the return of some of the worst aspects of life under capitalism. Although not on the scale which existed prior to the revolution, prostitution has returned to the streets of Havana.
In a desperate attempt to stop the economic collapse the regime was forced to take steps to attract foreign investment and acquire access to the international markets. 100% foreign ownership of some industries has now been legalized.
Imperialism Divided
This change in policy by Castro’s government has opened up a division amongst the contending imperialist powers.
European (especially Spain), Canadian and Japanese imperialism have sought to take advantage of this situation. They have encouraged investment in the Cuban economy. Canada is now Cuba’s leading trade and investment partner followed by Spain. By 1996 there were an estimated 650 foreign companies with investments in Cuba. Other more powerful Latin American capitalist countries, such as Mexico and Brazil, have followed suit with a view to extending their economic and political influence in the region.
Apart from taking economic advantage of the opening, through this policy they hope to pressurize the bureaucracy to move towards capitalism and disperse the planned economy. They are implementing this policy with a view to marrying the bureaucracy, or sections of it, together with capitalism and converting it into a capitalist class together with sections of the exile Cuban population in Florida.
This policy has been tremendously complicated because of the attitude of US imperialism, which has adopted a more aggressive and confrontational approach. This has been to try and “starve out” Castro and overthrow his regime and install their loyal Cuban backers from Miami.
It is a shortsighted policy but reflects the different pressures that US imperialism is under. It has been fuelled by historical considerations, of avenging the damaged prestige of US imperialism, which lost its playground to Castro in 1959.
It has also been determined by the need of consecutive US administrations to gain the support of the 700,000 Cubans living in Florida. The Cuban-American National Foundation, one of the most powerful lobby groups in Washington, had a decisive effect in enacting the Helms-Burton Act, which tightened the embargo on Cuba and even penalized foreign companies that invested in the country.
Other reactionary, if smaller, groups like Alpha 66 have attempted terrorist and armed actions against the Castro regime. Whilst within this there is a body of “moderate” opinion that would support a compromise with the Castro regime there is also a powerful reactionary force of former Cuban capitalists and their dependants.
These forces are in no mood to compromise with the Castro bureaucracy and seek to reclaim factories and land they lost during the course of the revolution. Should they return to Cuba many would do so with the intention of wreaking their revenge.
The stance of US imperialism, together with the threat of the Cuban exiles, has creating big obstacles to those sections of the Cuban bureaucracy that would be more enthusiastic about embracing capitalism and attempting to convert itself into a capitalist class. This is an important difference with the events that developed in the former USSR and Eastern Europe. The bureaucracy in these countries had the prospect of themselves becoming the ruling class (The exception was Eastern Germany where the old bureaucracy was largely pensioned off by West German imperialism).
The enthusiasm for the revolution and hatred of US imperialism has enabled the leadership of the Cuban regime, especially Castro, to maintain massive support in Cuba despite the economic collapse that has taken place since 1990. The aggressive arrogance of US imperialism has rebounded on it and helped to maintain the Cuban leadership in power.
However, the Cuban government has been compelled to move in the direction of taking pro-capitalist measures and to try and secure the investment of the non-US imperialist powers. These accelerated during 1993 and 1994 and foreign ownership was allowed in tourism and some other sectors.
Even agriculture was affected. In 1992 75% of Cuba’s cultivable land was under the control of state farms, which enjoyed massive subsidies. By 1995 this figure had fallen to 27% – the rest being farmed by private cooperatives, which lease land from the government and buy equipment. A fixed quota must be sold to the state and anything above this can be sold privately.
These and other measures have allowed a certain growth in the economy to take place in the last two years but it has not made up anything like what was lost after 1991. These same policies have also led to the growth of inequalities. Workers employed in joint ventures, partly or wholly owned by foreign companies, are paid higher wages – in dollars that were legally allowed in circulation in 1993. A black market has inevitably developed under these conditions.
When implementing these measures Castro has presented them as temporary steps forced upon the regime because of the situation. At the same time he has proclaimed his continued support for socialism. When agreeing to open the economy to foreign investment, the policy was “…not being inspired by neo-liberalism nor does it aim for a transition to capitalism. It is an opening to defend and develop socialism and this is not concealed by our government.”
The apparent defense by Castro of the revolution and “socialism” in the face of imperialist aggression from the USA has re-enforced support for Cuba in the minds of many youth and workers internationally during the last five years. For many Cuba is now seen as the only regime which is still defending socialism and fighting the threat of imperialist aggression and capitalist restoration.
The international workers’ movement has a responsibility to oppose all aggression by imperialism and attempts to restore capitalism in Cuba. At the same time it is necessary to see what lies behind the defense of “socialism” by Castro and the Cuban bureaucracy.
A section of it is resisting attempts to move towards capitalist restoration. In part this is because it does not want to abandon the social gains conquered by the revolution and preside over the misery and chaos a return to capitalism would mean in Cuba.
Most importantly, because of the reaction of US imperialism and the threat posed by a returning exile capitalist class to sections of the Cuban bureaucracy, the latter has been compelled to try and avoid a return to capitalism in order to protect its own interests and privileges.
The bureaucracy has been forced verbally to defend the revolution and oppose imperialism as a means of trying to maintain and rest upon a basis of support amongst the masses. At the same time it is determined to maintain its rule and control over society. This is reflected in the continuation of a one-party state. The Cuban Communist Party is the instrument through which the bureaucracy controls society.
Friends of Socialism?
Notwithstanding Castro’s defense of “socialism” the other side of his dual policy has been to secure investment from other imperialist countries outside the USA. With their money has also come capitalist politicians and ideas. The hated pro-Thatcherite former Spanish minister, Solchaga, was invited to Havana as an economics adviser. Castro declared his desire to meet Thatcher in person and has already met with the Pope as part of a clear overture to the Catholic Church.
In an ironical repetition of history, as in 1968 (when the Mexican military slaughtered hundreds of students) the Cuban government and Communist Party have remained virtually silent about the uprising of the indigenous people in Chiapas, Mexico. No support was offered to the heroic battles of the Mexican bus and petrol workers to their fight against privatization.
International policy still reflects domestic policy and the interests of the Cuban regime. It cannot be a co-incidence that the silence from Havana regarding the struggles of the Mexican masses is at a time when Mexican capitalism is amongst the largest investors in Cuba. US$1.5 million were invested in telecommunications by the Mexican, Grupo Domos.
A large part of the Cuban bureaucracy is prepared to support capitalist restoration should an accommodation with imperialism prove to be possible. The pressure for more pro-capitalist measures is set to increase. Cuba cannot exist in international isolation for an indefinite period of time and it will be forced to try and attract more foreign investment and trade. Castro and sections of the bureaucracy would probably be content to try and sustain a hybrid regime if this is possible. This would include a big element of the private market with some state ownership and planning and his state machine left in tact.
Those sections of the leadership that are more inclined towards capitalist restoration are likely to be more assertive with the death of Castro who, at 71, is in ailing health.
With a change in the Cuban leadership after Castro’s death, even US imperialism could change its policy and try to incorporate a new and younger generation from the bureaucracy with the Cuban capitalist class in exile. Some sections of the ruling class in the US are already looking at this possibility and have even carried out investments in Cuba.
This was curtailed in the run-up to the last US Presidential elections as Clinton tightened the embargo in part in an attempt to win the Cuban vote in Florida. However, whilst such actions may emerge as the main plank of policy even this would have to overcome the hatred and bitterness amongst the Cuban masses towards US imperialism and the reactionary Cuban capitalists residing in Florida. It will not be an easy journey given the conflicting interests that exist.
For a Socialist Alternative
The absence of a socialist alternative and Cuba’s isolation, will force the process of capitalist restoration to accelerate further. This could only be averted by establishing a regime of genuine workers’ democracy, with a perspective of developing the socialist revolution throughout Latin America and internationally.
The establishment of genuine workers’ councils, locally and nationally, which have control and management of the economy are essential. All representatives and officials must be elected, subject to recall by those they represent and receive only the average wage of a skilled worker.
There must be an ending of the one party regime that exists. This is often justified because of the threat to the revolution from imperialism and the prospect of reactionary right-wing gangs from Miami being allowed to organize their forces. This threat is real but will not be averted by only allowing the party of the bureaucracy to organize itself. All parties which are opposed to imperialism and defend the idea of a socialist planned economy should be allowed to organize, conduct propaganda and stand candidates in elections. Independent trade unions need to be established.
The threat posed by imperialism and capitalist restoration in Cuba can only be avoided through the victory of the socialist revolution throughout Latin America and internationally. For this it is necessary to win the support of the working class in Latin America and establish a Socialist Federation of the continent. This was necessary when Che and the revolution triumphed in 1959.
Che aspired to achieving this victory. However, despite his heroism and revolutionary sacrifice, he failed to understand how to accomplish continental socialism. Thirty years after his death this struggle is more necessary than ever. If the lessons of Che’s legacy are grasped by revolutionaries internationally it will be won.