This work is based on multiple experiences on the problem of local development in Cuba. It shows a tour of the Cuban economic history and its development to date. This will also serve for those who wish to continue studying the same problem.
We will show the importance that each local entity plays in their homes as a way to contribute to the same development in certain localities, and finally we will demonstrate the importance of self-employed workers for the benefit of Cuban society.
Key Words: Local, Economic and Financial Development, Economy and Sustainable Development.
Summary
This present work is based on multiple experiences on the problem of the local development in Cuba. It demonstrates a journey of the Cuban economic history and their to develop until the present time. This will also be good for those that want to follow the study of the same problem.
We will take to know the importance that each local entity carries out in its homes like a form of contributing to the same development in certain towns, and for i finish we will demonstrate the importance of the workers self-employed in benefit of the Cuban society.
Key words: I develop Local, Economic and Financial, Economy and Sustainable Development.
1. Introduction
Local development arises fundamentally in Europe, as a response to the global macroeconomic crises, respectively in France in 1965. The same, is considered as the basis for the contributions and sustainability of the most disadvantaged European state economies in those times, is an ambiguous development process considered as the dimension in which it can be said that it is possible to recognize a better organization of the available resources, to provide a short, medium and long-term advance of the economies of each country in the social benefit.
1.1 Local development from an international perspective
In underdeveloped countries, local development originates as a response to the contradictions of the system due to the neglect of the State to the crisis situation of the depressed territories, on the other hand, it is the result of the scarce source of resources of the local governments to face up to these crises, since the budgets were cut and the privatization promoted from the implementation of neoliberalism.
In the Latin American subcontinent, since the formation of the Economic Commission for Latin America (ECLAC) in 1949 and later the theory of underdevelopment by Enzo Faletto and Fernando Henrique Cardoso in the 1970s, the issue of development has been an important part of the discussion agenda.
The Economic Commission for Latin America (ECLAC): They conceive local development as a process of growth and structural change that, by using the development potential existing in the territory, leads to the improvement of the well-being of the population of a region.
The local approach, takes as its unit of action the territory and not the company or the isolated sector, this territorial approach is necessary to contemplate three of the decisive issues, which are:
- The introduction of innovations in local production systems. The design of the appropriate training programs in human resources according to the needs of each local or territorial context. The specific reference to the characteristics and limitations existing in the social environment.
The peculiarities that distinguish the relationship between the global and the local
Reflection on the relationship between the global and the local has traveled in various ways, from those who affirm the invalidity of national states and therefore of local identities, to those who maintain that the current order has brought up the various sources of homogeneous tendencies, expressed in social conflicts specifically .
Another peculiarity evidenced in the local global relationship is that local development models do not have to do with self-referential localism or with a return to the role of medieval autarkic economies, but rather it is about the ability to articulate and manage global policies with national and sub-national.
It can be seen that this development is distributed in currents such as: Endogenous Local Development and Integrated Local Development, in which:
Local Endogenous development: It is defined as a process tending to increase the well-being of the community by establishing economic and socio-cultural activities basically using its own human and material resources.
The Integrated Local Development: It places special emphasis on the integration of all the potentialities in taking advantage of the existing resources in the area. In this model, an attempt is made to minimize the use of external technologies, with special emphasis on the mobilization and development of human resources.
1.1.2 The importance of decentralization and strengthening of local governments in the endogenous process
The State plays an important role in the policy that constitutes the efficient response for localities, it is there that Latin America and Europe present themselves before the need to restructure their production systems to face the increase in competition and the scope of conditions From the market. The studies carried out on the policy of local development in Europe and in which at the moment they are highlighting it, it is seen that:
The Economic Commission for Latin America (ECLAC), the Caribbean and the Inter-American Development Bank (IDB), show that the way to go, goes through the definition and execution of a development strategy implemented through actions that pursue, at least, productivity and competitiveness objectives.
Within this development there is a social structure with its main elements, which is shown below:
Local development with a social focus
This is given by the relevance of the will of national and local public agents that promote the construction of a positive environment of territorial services that systemically makes local economic development possible.
Decentralization is an important tool to encourage local development initiatives by facilitating the transfer of powers, resources and responsibilities to the different State administrations.
1.1.3 Local development strategies at the international level
The local development strategy is based on three basic pillars such as decentralization and strengthening of local administrations; creating innovative territorial environments; and the promotion of local economic development initiatives and the generation of employment and income, which contrasts with traditional centralist development strategies, based on a sectoral design of instruments for social benefits.
Many actions that can be taken to stimulate local development include:
The area: It is related to infrastructure in its broadest sense and the need that exists in them, seeking emerging ways to respond to these immediate concerns.
The company: It is related to aid for innovation and presentation of advisory services in an integrated way.
The Population: It is interrelated with the level of social projects and specific training programs.
From multiple strategies used for local development in many countries, we can demonstrate some successful examples, such as:
The Johnson Rural Growth Centers.
- The Integrated Regional Development of Rondinelli and Ruddle. The Selective Space Enclaves of Stöhr and Tödtling.
All these cases are summarized in two types of possible alternatives which are:
- Achieve competitiveness through a technological and productive leap, completely adjusting to the productive structure of the locality; or follow a strategy of small steps, through progressive transformation.
The general objective in the short medium and long term, for local development at the international level, is given by transformation of the local economic and social system, it is an adaptation that is centralized in two short-term objectives, which are:
- The promotion of business activity that corresponds to local entrepreneurs in their dynamic role and economic growth (SMEs). The coordination of actions that have local impact.
Within these objectives, there are a group of strategic variations based on said development, as shown below:
Economic and social transformations
Limitations of the structural adjustment applied in Latin America and the Caribbean based on local development
In the application of structural adjustment processes in Latin America and the Caribbean, a main, and sometimes almost exclusive, emphasis has been placed on macroeconomic stability programs, assuming that this was sufficient to ensure development. Likewise, these adjustment processes were accompanied by a set of additional elements that have ended up deepening the weakness of these economies, which have been exposed to conditions of external competitiveness.
The main limitation of structural adjustment processes as they have been applied in practice, according to the main orientation of the so-called Washington Consensus, has been that of not incorporating the dimensions of structural change, that is, the demands of the changes forced by technological and organizational restructuring, new forms of production, management and the necessary adaptations of the Administration and public organizations.
1.2 Local development in Cuba, general bases
Since the first signs of life of the human species, on our planet there has been a great interaction between man and the local environment where he lives, it can be said that this constitutes an intrinsic aspect in its development, it is there that it has been done Remarkable the capacity that it has to modify the environment in which it lives and develops socially.
The projection of this development in the socialist construction must take into account this circumstance, to contribute to the disorientation of the essential purpose, which can be encouraged in the conditions of Cuba.
To understand local development, it cannot be framed in a conjunctural phenomenon, but as a process of profound social, economic, political and cultural transformations on a global, national and local scale where economic growth must be conditioned to the formation of human capital that it presupposes growth with equity.
In Cuba, the impulse to local development has its peculiarities that have been discussed in various publications, and it has been considered essentially as the strengthening of local structures and powers, by stimulating citizen participation.
Local development in Cuba: It is a process aimed at economic and social growth, led by the government to establish social knowledge policies that enhance the interrelationships of local stakeholder networks, so that with their decisions they influence the development of a territory determined by contributing to raising the standard of living of the population and taking advantage of local potentialities at the service of society.
In summary, this local sustainability model would necessarily have to be based on the following principles:
- Man as the beginning and end of any effort for development. Existence of a dynamic relationship between what is planned at the country level and what is designed in the locality. The locality understood as an organized territory considering participation, integration, The cooperation; and that it also combines the dimensions are economic, social, environmental, and cultural.
Among these, you can find the different points of view on the subject in which:
According to Eliel Méndez Delgado: Territorial development refers to processes of socio-economic changes of a structural nature, geographically delimited and inserted within a framework configured by economic market systems, broad external openness and decentralization of divisional systems. This also determines that, in the local economic development of a country, it must be defined as a process that leads it from its subordinate economic position, towards that developed position, where society can know better communities in their homes.
Yuderquis Padillas Sánchez, Libán Aguirre García and Jesús René Pino Alonso: They consider that local development is understood as a strategy designed to improve the standard of living, economic and social of specific groups of a population to achieve a social well-being.
Águila Cudeiro's point of view, (Yudy): This, considers that it is a process that is generated in a territorial area, where a local society intervenes, but that also has a human space of a being with particular interests and experiences in a more immediate area of relationship, with beliefs and values that will feed back the group from their own learning.
According to Ada Guzón : If you want to promote local development, we understand that the essential lever will be to essentially develop the capacities of the place, both material and intellectual, it is not about giving away fish, but about learning to build fishing rods.
Regarding development issues, whether local or global, Martí sentenced these differences from his time, when he expressed:
“… One excessively rich, the other excessively poor. As can be seen, this imbalance is not in the interest of the nation: the city where there are many rich people is nevertheless miserable and weak commerce, difficult changes, the dense and inextinguishable hatred that arouses in bodies dressed in rags the continuous presence of the unemployed dressed in riches. ”
According to approaches by various authors on local development, especially José Martí, it was concluded that this itself is nothing more, nothing less than, a complex process, because local economic impacts are not always as planned, due to natural, economic, ecological and socio-political factors themselves. It is a current where local governments make financial and material resources unavailable to certain localities, so that a nucleus of trained people can work with a single objective in search of better conditions of social life.
1.2.1 Local development focused on municipalities
Municipal development has its origin in the great deformations and socioeconomic inequalities prior to the triumph of the revolution in January 1959 and, therefore, part of the need is to direct efforts towards the ordering of the territories for the development demanded by the process. revolutionary on the rise. In the middle of the 20th century Cuba had 126 municipalities unevenly distributed in the six existing provinces.
The theory of development in communities is not only about the efficient allocation of resources, but also about the mechanisms necessary to achieve rapid improvements in raising more resources, at least historically and on a large scale at the levels of life of the peoples.
The municipality, the welcoming organ of the population community, presents a set of central features in favor of a given society, these factors can be identified as:
- Economic profile of the territory. Promote citizen participation and information in local affairs. Create a municipal mechanism to promote local economic development. Effectively manage own resources. Establish contacts with government levels.
Potentials that favor local municipal development
These potentialities are given by:
- The elaboration of the General Diagnosis of the municipality and the design of the Local Development Strategy as a starting point. The knowledge generated from the human capital created by the Revolution. Community participation in the identification of the problems and the projects that are managed. The possibility of creating structures in the local government to monitor the management system.
Main obstacles in advancing local municipal development
Among these we find:
- Lack of a local development model with its procedures that serves as a methodological instrument to be taken into account for the further advancement of local initiatives. Limited people with practical knowledge in the elaboration of projects that include market studies and feasibility analysis. of the access roads to the information on the technologies, market offers, prices of the machines and equipment for the promotion of small industries Insufficient training and improvement of the cadres of the municipality on local management and management tools to implement the development models.
The above analysis allows summarizing that there are potentials for the promotion and development of local development initiatives in Cuba, as well as obstacles that go beyond the powers of the Boards of Directors.
1.2.2 The strategies used by Cuba based on local development in the municipalities
Cuba has a socialist development project in which the determination of priorities, the allocation of resources and the regulatory mechanisms are in correspondence with the strategic lines of development of the country. In this global logic, necessarily the specific situations of the local context, in terms of problem solving and resource allocation, are not necessarily coincident. Opportunities exist in all localities, which allow them to advance in local development, since the Cuban State promotes the development of local initiatives where communities express their opinions on the various aspects of conservation and development, define their needs and aspirations, and formulate plans to develop the areas where they live in order to meet their social and economic needs,cultural and environmental.
In this way, the local development strategy in the municipalities is based on three basic pillars such as:
- The decentralization and strengthening of local administrations. The creation of scientific development centers. Promote administrative policies that favor the social litter, for their self development.
Cuba, inserted in the socialist field, had its economy based on the high level of guarantee of supplies through the advantageous exchange that took place within the Council for Mutual Economic Assistance (CAME).
But with the fall of "real socialism" it left the country without 85% of its commercial exchange, entering the worst crisis in its history, which forced it to seek the emerging path without giving up the construction of a non-capitalist society.
The island had to face various situations up to now, and one of the fundamental aspects that they saw to promote local development processes was the empowerment of instances and concertation of social actors, specifically volunteer work, which have diversified the economy to a certain extent. local, having tourism as a determining factor.
It is essential to obtain the support of the efficient, essentially local Administrations, which are the ones that house these companies and will be or should be the promoters of the resources of these tourist destinations, in this set of strategies they have intensified their foreign relations with some countries, such as: Venezuela, Canada, China and Russia, Viet Nam, Angola, Iran and some countries in Europe.
1.2.3 Level of economic variation in Cuba, according to its municipalities
The economy of Cuba has known many variations in its times, from the Revolutionary era to its present day, that is why it, itself, has to face the risks and take advantage of the opportunities offered by the current stage of globalization in an international context.
At that time of the period between 1999 to 2009, there were numerous manifestations within the structural problems of the economy, these translated into, shortage of foreign exchange, monetary duality and current prices, overvaluation of the official price of the national currency and absence of convertibility, poor performance of the sugar agribusiness and inefficiencies in public entities.
Referring to the diagnosis of the economic variation of the previous years until 2009 according to the CEPAL (Economic Commission for Latin America) analyzes, it is quite reserved. Despite the fact that Cuba had maintained growth with some variations between 2001 and 2008, external factors such as the global financial crisis, the hurricanes that affected the island in 2008, the increase in food prices, the drop in income from tourism etc.
In a specific and detailed way, it can be considered that in 2007, the Cuban GDP grew by 7.3% and given the null demographic growth, the GDP per inhabitant expanded in the same proportion. The global fiscal deficit increased slightly from a figure equivalent to 3.0% of GDP in 2006 to 3.1% in 2007.
The economy had maintained a high rate of growth in the previous years, going from some Arabs, which reached between the years 2000-2008 an annual average of 6.10% of the Gross Domestic Product (GDP) at constant 1997 prices, in this positive record It was influenced by the very favorable increase in exports of professional services, especially medical services, the recovery in construction, transport and energy production, as well as the new methodology for calculating GDP.
Today you can analyze the growing importance of the new economic and social readjustment for the island (New Guideline) where , Raúl Castro Ruz expressed that “Cuba has thousands of professionals graduated by the Revolution in the fields of Economics, Accounting and Finance, just to mention some of this profile that we have not been able to perfectly use for the benefit of the ordinary development of the nation. We have more human capital as a more preferable good, as an engine of social development.
In the design of economic policies, the interaction between macroeconomics and microeconomics is taken into account, with a view to achieving high and sustainable rates of productive and economic growth. Therefore, it is necessary to systematically update the main policies analyzed if, it is desired to maintain macroeconomic balances over time and achieve an efficient allocation of available resources to extend the productive frontier, increase savings and investment, and stimulate innovation.
These guidelines define that the economic system that will prevail will continue to be based on the socialist property of all the people over the fundamental means of production, where the principle of socialist distribution must govern "from each according to his ability to each according to his work." These principles must be harmonized with greater autonomy for state companies and the development of other forms of management. The model will recognize and promote, in addition to the socialist state enterprise, forms of management, the main form in the national economy, to the modalities of foreign investment, cooperatives, small farmers, beneficial owners, tenants, self-employed workers and other ways that could arise to help increase efficiency.
In the case of self-employed workers, it is necessary to demonstrate the importance that they present for the State's recipes, in terms of taxation.
GENERAL CONCLUSION
- Local development in Cuba is seen as a tool where the entities of a certain region can benefit from sets of instruments and materials, so that together they carry a nucleus of tasks in their localities for the benefit of this same one. He realized that in Cuba with multiple difficulties it has looked for emerging alternatives; through cooperations with multiple countries to promote projects for economic improvement. Today it can be verified that tourism on the island is also one of the sources of economic sustainability; It tends to balance the economy. It is important to highlight that budgets as contributory bodies for state income and good planning are instruments to safeguard multiple current risks in the entities. Taking into account the tax evolution in Cuba,It is concluded that multiple adjustments in the Cuban economy have helped improve social economic life, taking into account the new laws and new guidelines in economic and social policy. a way to subsidize private entities that were focused on unemployment. This is a feasible policy in which private individuals develop individually and contribute their contributions to state income accounts with tax payments for the provision of social services.They emerge as a way to subsidize private entities that were focused on unemployment. This is a feasible policy in which private individuals develop individually and contribute their contributions to state income accounts with tax payments for the provision of social services.They emerge as a way to subsidize private entities that were focused on unemployment. This is a feasible policy in which private individuals develop individually and contribute their contributions to state income accounts with tax payments for the provision of social services.
RECOMMENDATIONS:
If all the guidelines set forth in the VI Congress of the Communist Party are strictly followed, there will be an improvement in the planning and economic results of many entities, this will be feasible for the economy, which will provide an improvement in economic growth.
BIBLIOGRAPHIC REFERENCES:
Cardoza, R., (2003): “Conceptual theoretical approaches on local development”, MAYARÍ case study.
Pichardo, A., (2000). "Quality of life and Sustainable Development" International Center for Economic Policy at: SINADE (National System for Sustainable Development). Costa Rica. 2000, Universidad Nacional Heredia. Available at: www.scribd.com/doc
Sanchis, JR, (1999): "Local development strategies: methodological approach from a socioeconomic and comprehensive perspective", Journal of Management, Organization and Business Administration No.. January 21, pp. 152-155.
Ditto 3
Guevara, M., (2000): “The current debate on development. Rupture with the traditional vision ”, University of Havana. Available at: www.energia.inf.cu
Alemán, P., (2002): “Globalization Local Development and Decentralization”, Center for multidisciplinary research. Autonomous University of Mexico. Pg. 147-149. Available at: www. Cinterform.org.uy/Public/spanich/ region.
Vázquez Baquero, A. (2000) "Endogenous Development and Globalization" Latin American Journal of Regional Urban Studies. No. 79, Year 2000, Pg. 58-59.
Góchez, R., (2006) "Local Economic Development" Wikilearning Magazine. July 5, 2006.
Idem 4, Pg. 151-153.
Idem 4, Pg. 156-157.
Vázquez Baquero, A., (1987) “Process of formulation of local development policies. The Spanish experience ”. Publications Center of the Ministry of Public Works and Urban Planning, Madrid.
Idem 4, Pg. 152-155.
Albuquerque, F., (2006) "Local Economic Development, Public-Private Cooperation Strategy" Higher Council for Scientific Research, Institute of Economics and Geography.
Guzón, A., (2006). "Local development in Cuba, Challenges and perspectives" Vol. I, Edition of Blanca González Alayón., Work edited by: Editorial Academia, Industria Nº. 452, corner of San José, Havana 10200. Pg. 91-95, Available at:
Vega, S., (2006): "Role of Public Administration in Local Development" Sede Universitaria Municipal de Yaguajay. Available at: www.monografia.com
Méndez, E., (2001) "Regional Development" Magazine Bolsa de Noticias. Thursday Edition July 12, 2001- ED Nº 2,665 Year XXVI, Available at: www.bolsadenoticias.com.ni
Sánchez, P., (2003) “Local Development. Evolution of Concept ”Department of economic studies of the faculty of economic science of the University of Cienfuegos. Available at: www.monografia.com
Cudeiro, A., (2004) "Local Development" Magazine, Socialist Cuba. Year 10 number 02, II International Conference, The Work of Carlos Marx and the challenges of the XXI century May 4-8, 2004. Available at:
Idem 15.
Martí, J., (1975) "Complete Works, Our America". Article: Córdova's Progress. Universal Magazine. Mexico October 16, 1875, p. 348.
Méndez Delgado, Elier J., E., Gonzáles M. and Carmen M. (2007) "Index of territorial human development in Cuba for 20 years" Department of Economy. Marta Abreu de las Villas Central University. Registration number 07/41669.
Idem 19.
Díaz, G., (2010) "Deputies analyze local development in Cuban communities" in Los Trabajadores. March 12, 2010, A1. Available at:
Idem 16.
Méndez Delgado, Elier J., "Trial in Cuba to measure Local Economic Development". Magazine Topics and Reflections University Corporation of Ibagué. Faculty of Economic and Administrative Sciences. Year 4. No. 4, Ibagué, May 2000.
Idem 15, Pg. 64 - 65.
Molina, J., (2005) "The Cuban economy of the 21st century: challenges and opportunities of globalization" ECLAC Economic Development Unit, Mexico City, May 2005. Pg. 7-12.
Everleny, O., (2010) "Cuba: Where is the economy going?" Themes Magazine, University of Havana, April 09, 2010.
Idem 28, pp. 43-57.
Newspaper. (2011) “The Economist of Cuba” December 2011. Nº 63 Year 13.
Ruz, R., (2011) "New Line" VI Congress of the Communist Party of Cuba, approved on April 18, 2011. Year 53 of the Cuban revolution.
BIBLIOGRAPHIES:
- Cardoza, R., (2003) "Conceptual theoretical approaches on local development", Case study MAYARÍ.Pichardo, A., (2000) "Quality of life and Sustainable Development" International Center for Economic Policy at: SINADE (Sistema Nacional para sustainable development). Costa Rica. 2000, Universidad Nacional Heredia. Available at: scribd.com/docSanchis, JR, (1999) "Local development strategies: methodological approach from a socioeconomic and comprehensive perspective", Journal of Management, Organization and Business Administration No.. 21, January, Pg. 152-155.Guevara, M., (2000) “The current debate on development. Rupture with the traditional vision ”, University of Havana. Available at: energia.inf.cuAlemán, P., (2002) "Globalization Local Development and Decentralization", Center for multidisciplinary research.Autonomous University of Mexico. Pg. 147-149. Available at: www. Cinterform.org.uy/Public/spanich/ region.Vázquez Baquero, A. (2000) "Endogenous Development and Globalization" Latin American Journal of Regional Urban Studies. Nº 79, Year 2000, Pg. 58-59.Góchez, R., (2006) “Local Economic Development” Wikilearning Magazine. July 5, 2006.Vázquez Baquero, A., (1987) “Process of formulation of local development policies. The Spanish experience ”. Publications Center of the Ministry of Public Works and Urbanism, Madrid.Alburquerque, F., (2006) "Local Economic Development, Public-Private Cooperation Strategy" Higher Council for Scientific Research, Institute of Economics and Geography.Guzón, A., (2006) "Local development in Cuba, Challenges and perspectives" Vol. I, Edition of Blanca González Alayón., Work edited by:Editorial Academia, Industria Nº. 452, corner of San José, Havana 10200. Pg. 91-95, Available at: http: //www.monografia.comVega, S., (2006) "Role of Public Administration in Local Development" Municipal University Venue from Yaguajay. Available at: www.monografia.comMéndez, E., (2001) "Regional Development" Magazine Bolsa de Noticias. Thursday Edition July 12, 2001- ED Nº 2,665 Year XXVI, Available at: www.bolsadenoticias.com.niSánchez, P., (2003) “Desarrollo Local. Evolution of Concept ”Department of economic studies of the faculty of economic science of the University of Cienfuegos. Available at: www.monografia.com Cudeiro, A., (2004) “El Desarrollo Local” Magazine, Cuba Socialista. Year 10 number 02, II International Conference, The Work of Carlos Marx and the challenges of the XXI century May 4-8, 2004. Available at: http://www.cubasocialista.cuMartí, J., (1975) "Complete Works, Our America". Article: Córdova's Progress. Universal Magazine. Mexico October 16, 1875, p. 348. Mendez Delgado, Elier J., E., Gonzáles M. and Carmen M. (2007) "Index of territorial human development in Cuba for 20 years" Department of Economy. Marta Abreu de las Villas Central University. Registration number 07 / 41669.Díaz, G., (2010) "The defendants analyze local development in Cuban communities" in Los Trabajadores. March 12, 2010, A1. Available at: http: //www.trabajadores.cuMéndez Delgado, Elier J., (2000) "Trial in Cuba to measure Local Economic Development". Magazine Topics and Reflections University Corporation of Ibagué. Faculty of Economic and Administrative Sciences. Year 4. No. 4, Ibagué, May 2000. Available at: eumed.netMolina, J.,(2005) "The Cuban economy of the 21st century: challenges and opportunities of globalization" ECLAC Economic Development Unit, Mexico City, May 2005. Pg. 7-12.Everleny, O., (2010) "Cuba: Where is the economy going? ” Themes Magazine, University of Havana, April 09, 2010, Newspaper. (2011) "The Economist of Cuba" December 2011. No. 63 Year 13.Ruz, R., (2011) "New Line" VI Congress of the Communist Party of Cuba, approved on April 18, 2011. Year 53 of the Cuban revolution.(2011) "New Line" VI Congress of the Communist Party of Cuba, approved on April 18, 2011. Year 53 of the Cuban revolution.(2011) "New Line" VI Congress of the Communist Party of Cuba, approved on April 18, 2011. Year 53 of the Cuban revolution.
