Tag Archives: Raul Castro

Cuba has long has the reputation of having one of the world’s most backward economics. Cubans, up until recently, have lived under regulations that impinge on an individual’s ability to sell their property and buy property that produces a better quality of life. One the one hand, this has made life difficult for the Cuban people. On the other hand, this has led to a large amount of creativity, and what some might call curroption, from the Cubanpeople in order to make ends meet. For example, Cubans have long kept their 1950s refrigerators in tact for 60 years, only to trade them for newer, more energy efficient Chinese models in 2010 with a degree of sadness. Cuban artsists have honored their refrigerators at the Havana art bicentenial.

This relationship between Cubans and technology is also very evident in their relationships with their cars. The recent New York Times article, “Relenting on Car Sales, Cuba turns Notorious Clunkers into Gold” explores the old relationship of Cubans and their cars and discusses how this relationship is finaly paying off now that the regime under Raúl Castro is remodeling the rules governing private business in Cuba. Under these new laws, Cubans will be able to own more than one used vehicle and will no longer lose their cars if they leave the country. Before these new rules, Cubans could only legally trade cars that existed before the 1959 Commuist Revolition in Cuba.  Citizens will now be able to sell their homes and cars. This will hopefully bring money into Cuba’s economy.

So now cars, like this 1950′s Moskvich can be put out onto the market by their owners. Thi

Moskvich

http://upload.wikimedia.org

This comes as great news to Cubans like Mr. Erik González who has been spending hundreds of dollars fixing his 30 year old Moskovich, which his grandfather had passed down to him. Now his car can be worth as much as $5,500 on the new market.

Some people say that this new rule will not stimulate the Cuban economy at all. Instead it will legitimze already occuring illegal trading and buying since as it stands, only a small percent of Cubans receiving foreign money can make these expensive purchases in the first place. 

Hyundai Accent

http://www.dieselstation.com

In Cuba a Hyundai Accent can go for $28,000. Some can resell it for $38,000 and getting a permit itself can cost anywhere from $4,000 to $10,000 dollars.  Very few people can afford such steep prices especially as the average monthly income in Cuba is $20. So this law really only serves a minority of people in Cuba. However, it does set a great precedent for opening up the market for the future.