Tuesday, March 03, 2009

Socialist Mismanagement

Whenever a self-described socialist nation goes through an economic downturn based on its government's policies the term "socialist mismanagement" is used by those Western elites that we allow to define things for us. However, when the same situation occurs in a self-described capitalist country, you never hear about "capitalist mismanagement."

Cuba is a self-described socialist state. There is a pervasive belief of the West that "socialist mismanagement" has been the cause of the depredation of the island. While external and internal forces have contributed to Cuba's current condition, to dismiss these complex factors as mere "socialist mismanagement" is not only lazy, but clearly pushing a particular imperialist agenda.

After the fall of the Soviet Union and its satellites, Cuba fell on hard times. This period is called the Special Period, as Fidel Castro and the Cuban leadership attempted to explain the coming hardship. Prior to the collapse of the USSR, Cuba's economy was dependent on foreign aid from socialist countries, which had improved certain aspects of the lives of Cubans from before the Revolution, while making other features more difficult. Food and other goods disappeared for a period after the loss of aid.

Castro legalized the use of dollars, which has had significant results. People working in the tourist sector and those selling goods on the black market became privileged over doctors and teachers who remained in the unconvertible peso economy. As a result, people trained as doctors and the like entered arenas where they would be paid in dollars. We must be careful not condemn a system that pays doctors less than merchants because we don't want to place our own morals on another society, but clearly the movement of people who are trained in one field and working in another will have negative effects on a country's economy.

The above negatives have virtually nothing to do with the system of socialism as an ideology. Cuba's allies collapsed, which created a dire situation on the island. The government's reaction was to privilege certain sectors above others without providing incentives for people to stay in the occupation of their training. I don't know if socialism, capitalism, or some combination of the two is the best economic system. But we must be wary of misinformed, simplistic, and nonsensical catchphrases such as "socialist mismanagement." (International Affairs)

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