1.Describe what Institutional structures, growth determinants and productivity c
ID: 1144910 • Letter: 1
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1.Describe what Institutional structures, growth determinants and productivity changes are place in Cuba and explain how these items affect economic growth. 2.Describe what Institutional structures, growth determinants and productivity changes are NOT in place in Cuba and explain why how these affect economic growth. Cuba's leaders are trapped between the need for change and the fear ofit Bello December 7, 2017 FOR decades Cuban exiles in Miami dreamed of the day that Fidel Castro would die. The imagined that Cubans would then rise up against the communist dictatorship that he imposed. Yet when, a year ago this week, Castro's ashes were interred in his mausoleum, i was an anticlimax. His brother, Raúl, who is now 86, has been in charge since 2006. For a while, he seemed to offer the prospect of far-reaching economic reform. Now, as he prepares to step down as Cuba's president in February, he is bequeathing merely stability and quiescence Raúl's planned retirement is not total hel stay on as first secretary of the ruling Communist Party for a further three years. He is due to leave the presidency as Cuba is grappling with two new problems. The first is the partial reversal by Donald Trump of Barack Obama's historic diplomatic and commercial opening to the island, which wl cut tourist revenues. The second is the aftermath of Hurricane Irma, which in September devastated much of the north coast and eral tourist resorts. That has prompted speculation in Miami that Raúl may stay on That is to misread the man. In his decade in power Raúl has striven above all to institutionalize the Cuban communist regime, replacing the wayward charisma of Fidel with orderly administration and a collective leadership. He has groomed as his successor Miguel Díaz-Canel a 57-year-old engineer who has already assumed many public duties. Yet, as president, Mr Diaz- Canel's autonomy will be limited. He is just one of a group of party bureaucrats and generals ho are the real power in Cuba, steadily replacing the generación histórica (those who fought in the 1959 revolution), who are dying off. The new generation faces an acute dilemma. Despite aid from Venezuela, which has now fallen to half its peak level, Cuba remains unable to produce much of the food it consumes of pay its people more than miserable wages. That is why Raúl embraced market reforms, albeit far more timid ones than those in China or Vietnam. More than 500,000 Cubans now work in an incipient private sector of small and micro businesses or co-operatives But these reforms bring inequality and a loss of state control. When Mr. Obama visited Cuba in 2016, offering support for entrepreneurs and calling on live television for free elections, the regime appeared to panic. Since then, the government has placed some curbs on small busine to stop what Raúl called illegalities and other transgressions". In other words, the government wants a market economy without capitalists or businesses that thrive and grow. It seems nowhere near tackling the multiple exchange rates (ranging from one peso to the dollar for official imports to 25 for most wages and prices) that ludicrously distort the economyExplanation / Answer
1.Institutional structures like communes, government controlled industries, cooperatives, and centralized adminstration, economic indicators like GDP shows the growth in the economy, protectionist measures has prevented the local industries of tea, coffee and rubber manufacturing due to absence of foreign investors, the small scale leather and cloth industries also nourished giving employement to thousands, agricultural industries like jute industries, cotton industries also flourished due to governments subsidies, and minimum support pricing. This measures has resulted in high GDP growth initially in Cuba.
2. Institutional structures are government institutions, for eg:- EPFO(Employee Provident fund Organisation) which aims for welfare of the working population in a state, Employee Life Insuraance Organisation, Employees health insurance organisations, organizations related with food and security, labour protection, wage compensation, cottage industries protection, MSME and SME's support, leather and foot products industries, banking institutions etc. Government controls this certain organisations, but in sectors like banking, MSME, SME involment of private sector entities are important, because without capitalist technological advancements, good practises and high quality and efficiency is not possible. Therefore weather it is a communist regime, equality and economical rise is not possible untill the economy will move towards the concept of mixed economy.
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