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Case Study

Cuban cooperatives

2 pages

November 2013

Reference: IMD-3-2420

On July 1, 2013, the Republic of Cuba implemented decisions taken by the VI Communist Party Congress in April 2011 to gradually open up state-operated sectors to more efficient cooperatives. As of that day, 124 such undertakings were allowed to function on an experimental basis in sectors ranging from transportation to construction, waste removal, recycling and markets for agricultural and livestock products. The measure would allow the state to free itself of tasks that were not central to the development of the economy. Cooperatives would assume an important role next to state-enterprises which would remain the centrepiece of the economy. Is this a gradual move towards privatization or has Cuba accomplished the socialist transformation of society as envisioned by Fidel Castro and Che Guevara?

Learning Objective

Analyze economic systems and incentives.

Keywords

Economic Development, Economic System

Settings

Caribbean, Cuba
1960-2013

Type

Published Sources

Available Languages

English

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