Central Planning Versus Markets Marxism: The Cuban Communist Party Confronts Crisis, Challenge and Change in its 7th Congress

1. Central Planning Versus Markets Marxism: The Cuban Communist Party Confronts Crisis, Challenge and Change in its 7th Congress Larry Catá Backer The Coalition for Peace & Ethics (http://thecpe.org) Association for the Study of the Cuban Economy 26th Annual Meeting: Cuba: Assessing the Reforms July 28-July 30, 2016; Miami, Florida

2. Context • Cuban Communist Party Congresses • Context for implementation • General focus of Vanguard Party and ruling apparatus • 6th PCC Congress • “Reform and opening up” Cuban style • 7th PCC Congress • First Congress after normalization with the U.S. • First Congress after historic visit of U.S. President Obama • Moving forward on the Lineamientos Project

3. The 7th PCC Congress: “Sin Prisa Pero Sin Pausa” • Return to earlier pattern of operation • Fidel Castro’s address • Official analysis: "We are not rushing towards a free market economy, nor is our government taking us there. This is a gradual process of transformation, economic diversification and development of a nationalist private sector” (Rafael Hernandez Temas) • Continued necessity of the US as the “Great Satan” • 3½ Products • Review of course of reform • Adoption in Principle of (unavailable) Conceptualización • Development Plan to 2030 • Action Plan for PCC cadres Raul Castro Opens 7th Congress of Cuban Communist Party By:Prensa Latina News Agency. 16 April, 2016

4. The Focus • Central Questions: • Does the 7th PCC Congress mark the return to traditional models of Cuban Marxist Leninist macro-economics and politics? • Does it suggest (Conceptualización) a development of a contemporary Central Planning Marxism Model to suit the present historical stage of development of Cuba? • If so, is it different from or incompatible with the Chinese Markets Marxism Model? • Presentation • Consider the 7th PCC Congress • Analyze the substantive consequences of its sputtering reform trajectory • Conceptualización del modelo económico y social Cubano de desarrollo socialista: Plan nacional de desarrollo económico y social hasta 2030: Propuesta de vision de la nación, ejes y sectores estratégicos • Consider broader consequences

5. 7th Party Congress: “Fear and Loathing;” or Caution and Incrementalism? • Overall theme: The Shadow of . . . • “Fear and Loathing” • U.S.; markets; neo-liberalism; globalization • Factionalism • Caution and Incrementalism? • In the shadow of the Lineamientos • Explaining/excusing the slow pace of reform and opening up • Structural Consequences • Uncertainty • Delay (key documents unavailable) • Transparency • Signaling • Fidel Castro and the Foreign Ministry • Internal factions differences become more acute • Fewer individuals may participate in consultation • Key battle over the extent of reform and the willingness to open up (and to whom)

6. The New “Central Planning Marxism” • Basis for the conceptualization of reform • The language that will be used to understand “facts” • Norms against which action is assessed • The framework for giving meaning to concepts and structuring its implementation • Close alignment between Conceptualización, and the 2030 development plan.

7. Introducción: Ideological Framework • Expone las bases teóricas y características esenciales del Modelo Económico y Social Cuba no de Desarrollo Socialista (¶ 2) • con el objetivo de avanzar hacia una sociedad superior (¶ 9). • en función de avanzar hacia una sociedad socialista, próspera y sostenible (¶ 10). • Specify foundational premises for the construction of Cuban socialism in this stage in its development, its structures and strategic goals • La sociedad cubana se encuentra en el proceso histórico de construcción del socialismo, como alternativa viable para superar el capitalismo y, con ello, contribuir modestamente a la supervivencia de la Humanidad. (¶ 8). • y se ajusta a las nuevas condiciones internas y el contexto internacional contemporáneo (¶ 12). • Essential basis is the concept of Revolution (2000) of Fidel Castro • Grounded in a long entanglement with and development of strategies of opposition to the U.S. leading to the reform and opening up of the Lineamientos (¶¶14- 35) • From these were forged 7 basic principles para un desarrollo socialista próspero y sostenible (¶ 36-43): • (a) unity and independence of the Cuban people; (b) popular support of the leadership role of the PCC; (c) the universality of social welfare services; (d) the strengthening of Cuban values; (e) active engagement of a socialist civil society; (f) productive capacity to engage in global commerce in specified sectors; (g) augmented international prestige and standing among the community of nations.

8. Capítulo 1: Los Principios Que Sustentan El Modelo • Objective: build a total (an “all around”)Socialist Society: impulsar y consolidar la construcción de una sociedad socialista próspera y sostenible (¶ 49) • Sustainability is a function of development • Development a function of the Lineamientos (¶¶ 50-51) • Develop both material and social productive forces to produce rich and model state ¶ 52-53 • 1.1 Principios de nuestro socialismo que sustentan el Modelo ¶¶ 54-73 (Sustaining Principles) • Principles: Synthesis of the continuation of the essential basis of Cuban socialism ¶ 57-73: • Socialist human rights and moral values (¶58) (“Todo ello, en contraposición al egoísmo, el individualismo y el consumismo enajenante y depredador.”); nondiscrimination (¶68); right to work, health, education, etc. (¶ 69), to ensure social welfare (¶ 70-71) • Leadership of the PCC as the Leninist vanguard party (¶59) • The State as the guarantor and source of sovereign authority (¶60) • Socialist democracy is exercised through the legislature under the leadership of the PCC (¶ 61) • State as the source of popular rights and obligations (¶ 62). • State control of the fundamental means of production (¶ 63) legitimating/democratizing (¶¶64-65) • Highest objective: Preserving the state and Revolution (¶¶66; 72) • Central Planning is the principal means of socialist development (¶67) • Control of individuals as a means of social production; Individuals obligation to protect state property and work hard (¶ 73)

9. Capítulo 1: Los Principios . . .Y Sus Principales Transformaciones • 1.2. Transformaciones principales del Modelo ¶¶ 74-115 • Se refieren a las transformaciones que caracterizan los nuevos fundamentos del Modelo a partir de las condiciones internas y externas actuales (¶ 75) • 1.2.1. Consolidación del papel primordial de la propiedad social sobre los medios fundamentales de producción • Necessary conditions for transformation: Creation of a revolutionary working class (¶80); modernization of SOEs (organization, technology, innovation)(¶¶81-2); Application of Socialist distribution to workers (wage markets) (¶83); SOE self financing for development and improvement (¶¶84-85); Integrated SOE state ministry planning and direction (¶86); Unified currency (¶ 87) • 1.2.2. Reconocimiento y diversificación de diferentes formas de propiedad y de gestión, adecuadamente interrelacionadas (¶¶89-96) • Enhanced “socialist foreign investment” • Recognition of complementary role of private property over specifically designated means of production which must be bent to the needs of perfecting the centrally planned economy (¶¶ 91-96) • forma parte de los elementos que condicionan la necesidad objetiva del reconocimiento del mercado, en el que interactúen bajo la planificación como vía principal de dirección de la economía (¶94) • 1.2.3. Perfeccionamiento del Estado socialista, sus sistemas y órganos de dirección (¶¶97- 115) • State responsible for development of social and economic order (¶ 99) • Central planning of the economy must control both the state sector and private markets (¶101-104) • Import substitution and export growth as basic policy (¶ 105) • Judicial norms to be developed in aid of this system con orden y disciplina (echoing Raúl Castro))

10. Capítulo 2: La Propiedad Sobre Los Medios De Producción • 2.1. Principales formas de propiedad sobre los medios de producción (¶¶119-191) (forms of state ownership of means of poduction) • a) La propiedad socialista de todo el pueblo (¶¶121-157); • 1. Las unidades presupuestadas (non-commercial enterprises) • 2. las entidades empresariales de propiedad socialista de todo el pueblo (caracter mercantil). • b) la propiedad cooperativa (¶¶ 158-167) (labor collectives); • c) la propiedad mixta (¶¶158-167) (joint ventures); • d) la propiedad privada (¶¶1673-186) • (subject to rules restricting private accumulation of capital); • e) la propiedad de organizaciones políticas, de masas, sociales y otras formas asociativas (¶¶ 187-181) (mass organizations). • 2.2. Sobre el sistema de entidades de carácter empresarial (¶¶192-202) • Recaps the only permitted forms of economic organization (¶¶193-200) • State controls juridical persons in all respects through law (¶201) • State reserves to itself the assignment of the provision of goods and services by any of these economic actors as it sees fit (¶201).

11. Capítulo 3: La Dirección Planificada De La Economía • The essence of central planning; engaging with markets (¶¶203-264); • Components: • a) La planificación socialista (¶¶206); • El desarrollo socialista se erige en función del ser humano considerando las dimensiones política, económico-financiera, social, demográfica, territorial, científico-tecnológica, formativo-cultural, de protección y conservación de los recursos y el medioambiente, entre otras. (¶220) • b) la regulación (¶ 207) • Means of market regulation (¶245 et seq): (1) regulate market access and induce rational consumption; (2) identify areas suitable for market functioning (market ghettos); (3) establish standards and regulate competition; (4) consumer protection; and (5) restrict monopoly conditions contrary to societal interests. • c) la gestión del Estado (¶208) • Resource management and regional economic integration (shadow of ALBA) • d) el control (¶ 209) • Monitoring, surveillance, and regulatory structures to detect offenses and enforce planning. • El sistema nacional de estadísticas da respuesta a las necesidades del nuevo escenario en que interactúan diferentes formas de propiedad y gestión, utilizán- dose de manera combinada métodos directos e indirectos de captación de in- formación, como registros administrati- vos y contables, censos, encuestas y otros métodos de estimación. (¶ 264)

12. Capítulo 4 La Política Social • Ties together economic and social development (¶¶ 265-311) • El ideal de prosperidad de los ciudadanos se sustenta en perspectivas alcanzables de materialización de proyectos racionales de vida, individuales y colectivos, en correspondencia con los valores de nuestra sociedad, sustentados principalmente en los ingresos provenientes del trabajo, y los derechos constitucionales. (¶ 268) • 4.1. Los derechos económicos y sociales (¶¶273-298) • Welfare state principles • Education and culture as a socialization tool (¶281-284) • The cultivation of a taste for beauty (¶285) • Managing free time (286) • 4.2. El trabajo como fuente de bienestar y prosperidad (¶¶299-311) • Wealth distribution and social justice tied together (¶300); • basic principles (¶311) • Accounting for wage differentials (¶¶301-302) and private property (¶306-7) • Product markets must be managed to permit access to basic necessities (¶¶308-310)

13. Consideraciones Finales • Model: “una necesidad para lograr la irreversibilidad y el desarrollo de la construcción del socialismo en Cuba.” (¶312) • The shadow of Raúl Castro: • Es preciso asegurar más explicación al pueblo, más disciplina y exigencia y un mayor y más cercano seguimiento al proceso de cambios. Hay que tener, como ya hemos dicho, los oídos y los pies bien puestos sobre la tierra. (¶319) • An exercise in perfecting the Revolutionary insights as it is applied to changing conditions (¶322) • para consolidar los logros de la Revolución e impulsar la construcción de nuestro socialismo prós pero y sostenible. (¶329) • Shadows • The U.S.(¶328) • Regional integration (ALBA) and multilateral (¶¶ 325-327)

14. Consequences: Old Habits Die Hard • How does one build a revolutionary working class that the state can exploit to perfect its control of the economy? • Fear of the United States • Still the Great Satan • Protection against driving the pace and context of reform and opening up • Fear of markets • Fear of engagement • Necessity for control at every level • Conflation of Marxist Leninism with state planning economic model • Foundation for political legitimacy • Control

15. And What of the Asian “Markets Marxism” Model? • Strong echoes of Chinese Communist Party General Program but differences: • Markets: • Asian--as a means toward Socialist Modernization v • Cuban--as a marginal complement to State Control and operation of Political Economyln object • Path versus perfeccionamiento • Asian: the “Socialist Road” toward Marxist society • Cuban: Protecting the fruits of the Revolution and the socialist society created • Internally versus externally driven • Asian: looking to internal condition • Cuba: external enemies and regional integration • Management versus Control • Productive forces • Asian: Use (liberate) toward Leninist ends • Cuban: Use is an ends in itself

16. Conclusion • 7th PCC Congress and its Conceptualización suggests the difficulty of theorizing the normative basis of the state in times of crisis • Disconnect between elites and masses • Worldwide phenomenon • Highlights a fundamental crisis in theorizing state power • Document remains complex and remote; specialist text • It does not speak to the masses • Embedded with ambiguity

17. Thanks! • PowerPoints and Essay may be accessed online.

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