Cuba’s Sixth Communist Party Congress in 2011 approved guidelines for reforming the country’s socialist economic model to make the economy more efficient and sustainable. It introduced microcredit, bank accounts, cooperatives, and wholesale markets for the non-state sector, encouraged workers to move from state to private sector employment and reduced benefits like food subsidies. But how are those no longer in the productive sector affected by these policies?
The reform process and a chronic anemic economy have generated new social inequalities and increased poverty.
The reforms have not significantly improved the lives of most Cubans who still work for the state and receive salaries that do not cover the cost of basic necessities. Government remains the source of more than three-quarters of Cuba’s economic activity. Only about 9% of workers are self-employed. The reforms weaken the welfare state and reconfigure the social contract by reducing state expenditures. Cuba’s leaders say they can no longer sustain the high costs of universal health care and social services but will maintain them for individuals with the greatest need. Free, universal accesses to education and health care remain in place for now, but the health care budget has faced cuts and many experienced doctors have been sent abroad to participate in international medical missions. The reform process and a chronic anemic economy have generated new social inequalities and increased poverty. Raúl Castro notes socialism means social justice and equality, but that equality of opportunity is not the same as egalitarianism.
For the fast growing older population, the reforms pose unique challenges. 20% of the total population is 60 or over, which will rise to 31% by 2030. By comparison, older Americans make up only 18% of the US population and will comprise 25% in 2030. The longer life span, combined with a very low birth rate (1.45 births per woman versus 1.87 births in the US) and with the emigration of younger persons, has reduced the proportion of the population in the work force. Cuba will have more pensioners than workers by 2025, and it will be increasingly difficult for government to subsidize the health and social services needs of older adults. For these reasons, the Cuban government is undertaking major structural reforms to address population aging and its effects on the economy.
One of the first reforms has been the rise in the retirement age for men and women. The government also has reduced social benefits, on which older persons in particular depend. Older persons were disproportionately affected by the hardships of life before the reform process began. A weakened welfare state has only made life harder for them, especially for those whose only source of income is a monthly pension averaging about $13. More than half of older persons in 2012 reported their pension was not enough to live on. As food prices skyrocket, the majority are dependent on family support, moonlighting, or remittances. The purchasing power of the monthly ration booklet all Cubans use to purchase food and many other necessities at subsidized prices is shrinking fast, which hits older persons especially hard.
Research I started five years ago with 40 older persons indicated the majority supported the reforms, felt they were necessary for the economic wellbeing of the country, and believed they would improve their own and their children’s lives. At that point, they identified with revolutionary values and felt the reforms would sustain the revolutionary process. But their views have changed since. They express frustration with the slow pace of the reforms. They say living conditions have worsened and the reform process has not improved their lives. They fear the government will eliminate the ration booklet altogether. They complain about the diminished availability and quality of health care.
Many older Cubans are disappointed by increased social and economic inequality
Older Cubans, members of the so-called “Gen-Rev,” used to believe that the Cuban Revolution would result in an enduring egalitarian, socialist society that would meet the basic economic needs of its members. At present, many are disappointed by increased social and economic inequality. They might still identify with the revolution but lament that the “updating of socialism” has made their lives more difficult. They are disaffected from government. One older woman explained how she feels about government and the needs of older persons in the following way:
“Imagine how I feel! Nobody has analyzed or said what those older persons who volunteered so much for the revolution need; nobody is compensating us for what we gave, or is asking us what we need. Why didn’t the government analyze the situation better for older persons? I feel trapped and there is no exit. I cope by trying not to feel anything, otherwise it is too upsetting.”
Increasingly, the cost of supporting older adults will be increasingly borne by their children, rather than by the state, despite the fact that many caretakers too struggle to make ends meet. How older persons will fare in the future will depend on access to resources from family, friends, and post-retirement employment. Not all older persons will be able to care for themselves equally. Older black people, who tend to be poorer than whites, may become economically disadvantaged compared to their white counterparts. There is no immediate solution to many of the challenges older persons and their caretakers face. Monthly pensions need to be significantly increased, which seems unlikely to happen any time soon given the weak Cuban economy. Food costs remain too high for ordinary Cubans, let alone the elderly. It is important to find ways to assist them with the care of their older relatives.
Despite limitations on what government can do to improve the lives of older persons, how to address their needs is increasingly central to the economic policy debate. Cuba’s Council of Ministers is allocating resources to mitigate the needs of older persons and their families. The government is also building more old age homes, restoring deteriorated senior centers, offering workshops on caregiving for older persons, and helping older persons with dementia. For policy makers, one of the challenges in this process is obtaining input from this population. An important step is the recognition that a shift in perspective on older adults is necessary. Rather than as objects or recipients of help and as a potential drain on the economy, older people need to be acknowledged as active participants in the reform process with a voice in its development.
All images by Mabel Llevat Soy. All rights reserved.
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