The demise of the free lunch

This article reports on how the Cuban Communist Party is beginning ease the role of the state in providing everyday essentials to the people of Cuba. In a dramatic departure from the policies of Fidel Castro, workers will now need to find lunch on their own after more than 24,700 workplace canteens close. Bankruptcy is on the horizon for Cuba and in an effort to save money the ruling Communist Party will now pay workers an extra 16 cents a day in compensation for the closing of the free canteens. This type of individual reward is almost unheard of in a Cuba that has, for a half century, experienced social provision of everything from rent to wedding cakes. This extreme level of state subsidy comes with a price though and Cuba is not going to be able to keep it up much longer. As Cuba’s president Raul Castro aptly points out, “Nobody, no individual or country, can indefinitely spend more than she or he earns.” This new line of thought in Cuba is spurring discussion among its citizens on whether this new direction is the right one. Some feel that it is time to make the country more efficient while others fear that Cuba will digress into a market economy eventually. By giving workers more pay and removing the free canteens Raul Castro seems to be acknowledging that material incentives are more effective than the ‘moral incentives’ that Fidel Castro had encouraged. It will be interesting to see how the Cuban economy changes in the coming years. As future generations become more removed from the revolution of Che and Fidel, I suspect that ideas on the role of government will begin to change within Cuba.