Cuba is a case of poverty “with no solution in sight,” says expert

Cuba isa case of poverty “with no solution in sight”, says the renowned economist Pedro Monreal.

“Cuba is a case of pauperism with no solution in sight. With an average salary lower than the value of the Basket of Reference Goods and Services (CBSR) and with miserable pensions, the government should clarify what should be understood by solutions 'to the extent possible',"questions the expert in a Twitter thread.

Monreal explains that, contrary to how the Government sees it, the salary should not be understood in Cuba as “a remuneration linked to indicators of business 'compliance', but that is disconnected from the cost of basic family consumption needs.”

“Perhaps the differences between ‘fair’ salary, ‘minimum’ salary and ‘decent’ salary should be included in the current debate. It is debated elsewhere and it makes sense to do it in Cuba. To begin with, a 'fair' salary - by company criteria - may not reflect the cost of living," explains the specialist.

The economist considers that those who depend on a state salary are largely poor in Cuba.

“Even using the official CBSR data that many specialists consider undervalued, the Cuban working ‘elite’ has an average salary (6,281 CUP) that barely exceeds the cost of basic consumption by 3%,” he says.

Likewise, he maintains that “the designation of pensions in Cuba as 'misery' pensions is not 'hypercriticism'. It corresponds to the definition of misery in the sense of not being able to stably satisfy basic material needs.”

Previously, Monreal has insisted that the energy, food and health crisis in Cuba responds to apolitical decision, in which the government decides to allocate available resources to real estate development for tourism to the detriment of basic services.

According to the renowned specialist, the decision to invest in either sector is a decision of those who run the country, and this is demonstrated by the investment priorities of the last nine years.

According to data from the National Office of Statistics and Information (ONEI), between 2014 and 2022 basic services (water, gas and electricity supply) decreased from 13% in 2014 to 6.6% in 2022.

However, investments in business service (real estate and rental activities) skyrocketed from 21.8% in 2014 to 35.2% in 2022, with a peak in 2020 of 45.6%.

Last September, the Cuban Observatory of Human Rights (OCDH) denounced the worrying increase in extreme poverty in Cuba.

The non-governmental organization detailed in the VI Report on the State of Social Rights in Cuba, that "88% of Cubans live in extreme poverty, 13% more than in 2022."