Rectification at three: Impact on the Cuban economy

Since 1986, Cuba has been engaged in a national effort to redirect its polity and economy; this effort, spearheaded by President Castro, is generally known as the “rectification” campaign. Although occurring at roughly the same time as reforms in the Soviet Union and Eastern Europe, the Cuban process—which emphasizes dismantling market-oriented mechanisms and enhancing economic centralization—differs radically from the others. An impressionistic assessment of the economic effects of rectification after its first three years (focusing on the behavior of macroeconomic indicators and of the construction sector) suggests that rectification has not turned the Cuban economy around. Moreover, it is questionable that rectification could do so in the medium term, considering the reforms that are taking place in Cuba's main trading partners, the Soviet Union and Eastern Europe. Jorge F. Pérez-López is an international economist with the Bureau of International Labor Affairs, U.S. Department of Labor. This article presents only his personal views. He has written on different aspects of the Cuban economy, including economic growth, the sugar industry, international trade and energy balances. His book,Measuring Cuban Economic Performance, was published by the University of Texas Press in 1987.