A tiny Caribbean country, only slightly larger than Portugal and with a population of 11 million, has withstood for 38 years the efforts of the mightiest power on earth to dislodge its political leadership and reimpose a capitalist system on a society and people proud still to call itself socialist.

This brave country is Cuba, lying just 90 miles off the shore of the US, currently described as the only superpower. Cuba's revolutionary leader, President Fidel Castro, has seen off eight hostile US Presidents since he and his band of guerillas descended from the Sierra Maestra mountains and took power from the corrupt dictatorship of Fulgencio Batista on January 1, 1959. President Bill Clinton therefore is the ninth American President Castro has seen come and go. As soon as Castro's government declared itself socialist and proceeded to confiscate the assets of US companies and local landowners and capitalists, the US declared an undeclared war on Cuba. This took the form of harassment and probing attacks by Cuban exiles based in Florida, funded, trained and armed by the American CIA.

These efforts culminated in the Bay of Pigs invasion in 1961 by a Cuban exile force which was utterly routed on the beaches. Castro's public declaration of an embrace of Marxism and socialism, while it invited the hostility of Cuba's former neo-colonial masters, the US, evoked the support and sympathy of the then existing socialist camp, particularly the Soviet Union. Fearing the contagion of its revolutionary example, and using the excuse of the nationalisation of US and Cuban exile properties while rejecting any possibility of resolving the issue through a compensation mechanism offered by Cuba, the US in 1962 imposed an economic blockade on this defiant tiny neighbour in what Washington had till then considered its 'backyard'. This had the effect of narrowing the options available to an underdeveloped, small Caribbean country. Cuba was forced to rely upon the Soviet Union and the Eastern European socialist countries. It evolved into a convenient method to keep the economy stable in the face of US hostility and attempts to overthrow the revolutionary regime, but it also produced dependence. Economic relations with the Soviet Union and the Eastern European socialist countries represented 85 per cent of Cuba's trade. Cuba's exports to these countries constituted 63 per cent of its sugar (the main and traditional produce), 73 per cent of its nickel, 95 per cent of its citrus fruits, and 100 per cent of its electronic goods and components. Imports from those countries included 97 per cent of Cuba's fuel needs, 80 per cent of its machinery and equipment, 86 per cent of its raw materials, and 63 per cent of its food.

Despite these relations of economic dependence with the former Soviet bloc, Cuba's achievements in the social sector, based on the state's total commitment to the welfare and well-being of the people, have been truly impressive for a third world country. Universal literacy, with an average educational level of 8th grade for all citizens and all education upto university level free, has produced a college graduate for every 20 inhabitants and a middle level technician for every 15 inhabitants. Free medicare, a doctor for every 200 inhabitants, a family doctor to provide initial care or first aid, etc, in every neighbourhood 24 hours a day, an infant mortality rate of 8 deaths per 1,000 births, and a life expectancy of 75 years characterise Cuba's healthcare system, considered one of the finest in the world. Scientific advances, particularly in genetics and bio-technology, in some areas of which Cuba leads the field, are testimony to the educational and cultural richness of the achievements of the Cuban people. The collapse of the socialist camp and the disintegration of the Soviet Union between 1989-91 left Cuba in a very precarious and vulnerable position. Gross Domestic Product (GDP) dropped 35-45 per cent between 1990-94. Between 1989-93, the import capacity of the Cuban economy fell by 73 per cent.

This situation had its bad side in terms of the economic crisis which overtook the country. But it also had a positive side, in that it forced the Cuban people and leadership to find the reserves of strength to embark on a more self-reliant course. Cuba had to adjust to these new realities, a painful process which continues to date. New trading relationships with other countries had to be established on commercial bases. The economy had to be revived. Unlike capitalist solutions, the revolutionary government did not impose the burden of the crisis on the backs of the people. No one was thrown out onto the streets. No school or hospital was closed down. No one was left destitute or helpless. No 'shock therapy' was applied whereby the main weight of the crisis falls upon the lowest income and most vulnerable sections of the population. After a nationwide debate and intensive discussions at the popular level, the Cuban people vowed not to return to their neo-colonial past. The discussion was conducted in the cane-fields, factories, offices, places of work, education, etc. The discussion was carried into the highest representative forum, the National Assembly, where it was decided not to change the socialist system which had brought unprecedented benefits to the masses, but to take account of the new situation, adopt a more flexible strategy, and partially open up the Cuban economy to foreign investment and private enterprise.

When the country was going through its most critical period in 1993, general elections were held. In a politically conscious and mobilised society with a system dedicated to the service of the people, 99.57 per cent of the electorate went to the polls. Of these, 3.99 per cent cast blank ballots or annulled their ballots, considered an expression of rejection of the socialist system. Those who said Si! (Yes) to a continuance along the socialist path constituted 95.58 per cent of the electorate. In 1995, 97 per cent of the electorate went to the polls, of whom 10 per cent cast blank ballots or annulled them. 87 per cent voted in favour of socialism. So much for the US-inspired propaganda in the West that Cuba is not a democratic country. Cuban society is organised from the mass base right to the top echelons in democratically elected representative structures. The lowest rung of the democratic pyramid are the municipal organisations. From there the structure moves up to provincial assemblies and then finally the National Assembly, the top legislative forum. Without this democratic structure, the revolution would never have been able to survive the sustained hostility of an aggressive superpower like the US over 38 years.

Political life is lively and debate free, without degenerating into anarchy. The bottom line always remains a defence and continuation of the revolution in the interests of the people. Counter-revolutionary attempts to subvert and overthrow the system, backed by the CIA, are dealt with as they deserve through the vigilance exercised by Committees for the Defence of the Revolution which exist all over the country. Trade unions play a crucial role in defending the interests of the workers. Organised on industry basis, they have structures from the individual plant or enterprise all the way through the municipal, provincial, and finally national level. Disputes are settled democratically at the lowest level. Only if resolution at a lower level proves difficult, are issues taken up to the next higher level. If even that fails, the ultimate court of appeal is the National Assembly. Foreign investment under the new policy of opening up is concentrated largely in sectors such as tourism and mining, in the form of joint ventures, in which the foreign investor holds 49 per cent of the equity. Labour is selected and provided by the Cuban Ministry for Foreign Investment. The workforce is managed by the Cuban Directors of the joint enterprise, who ensure the protection of the workers' rights.

The foreign investor is permitted to bring into Cuba a limited, minimum number of technical experts for the joint venture. By the end of 1996, there were 260 such joint venture enterprises in Cuba, worth US $ 2.5 billion. The terms and conditions for these joint ventures are governed by a comprehensive foreign investment law called Law 77. Farmers and cooperatives are now allowed to sell produce over and above the state-determined quotas in newly established free agro-markets. One million of Cuba's 3.4 million workforce were permitted under license from the government to do part-time work apart from their regular jobs and 208,000 licensed private family small scale businesses were allowed to be set up. All these individuals and enterprises pay taxes to the state. This relaxation permits those with extra income to buy more food and goods from the free market, over and above the basic needs fulfilled by government supplied foodstuffs through a rationing system. The government's supply through the rationing system went through a crisis period in the early 90s, but the situation has improved year by year since then. Goods in the free market of course cost much more. For example, rice, the basic staple, is available at 20 cents per kg (100 cents in the Cuban peso) through the rationing system, but the quantity available is distributed equitably, and is therefore limited. In the free market, rice is available to those who can afford it at 3.5 pesos per kg. Similar differentials in price between government supplied and free market goods have made other foodstuffs and goods available in greater quantities.

The Cuban peso is officially pegged at one to the US $. But in the permitted currency market, the exchange rate has improved from 150 pesos to the $ in 1994, to 40 pesos in 1995 and 20 pesos today, a reflection of the recovery and growing strength of the once beleaguered Cuban economy. By 1994, the nosedive of the economy had stopped and a modest GDP growth of 0.7 per cent was registered, which improved to 2.5 per cent in 1995 and a remarkable 7.8 per cent in 1996. By 1996, at 4.446 million tonnes, sugar output grew by 33.6 per cent, exports grew 33 per cent, imports 33.6 per cent (causing a marginal increase in the trade deficit). One million tonnes of oil were indigenously produced. The tourism boom reached the figure of one million visitors. 45,000 new houses were built for the people. The minimum wage by law in Cuba is around 150 pesos per month. But the improvement in the economy has meant average wages increased to 203 pesos. With the addition of part-time extra work and private sector small enterprise, a good wage means you take home 400-450 pesos. Of course the liberalisation and the partial permission to private enterprise has meant that income and wealth disparities are increasing. But the problem for those with greater purchasing power for the moment is the lack of goods to spend the extra income on. 

Thus, 14 per cent of saving account holders account for 80 per cent of bank deposits. The Cuban government may have to come up with some schemes to utilise this dormant capital productively. Cuba remains an energy deficient country. Although power cuts, which were endemic a few years ago have become rarer, the problem that emanated from the breakdown of socialism in the Soviet Union is reflected in the incomplete nuclear power plant which Castro was keen on as a contributor to the resolution of the energy problem as well as a conduit for the induction of advanced science and technology. Despite some $ 2 billion being invested in it so far, Cuba and Russia (the successor contracting party to the Soviet Union) have been unable to find the finance for completion. The nuclear power plant is fully under IAEA safeguards. Castro has even offered a third party partnership in the project to the US. But to no avail. The fate of Marxist philosophy in Cuba is subject to the external pressures (the US, the Cuban exiles) and the new internal dynamic that has been unleashed with liberalisation. Havana University students, who once flocked to the Philosophy Department to study Marxism, now prefer Economics. What the shape of the future will be for the next generation waiting in the wings is too difficult to predict at this point in time. However, if Cuba manages to stay the socialist course, things internationally are likely to ease since the US policy of isolation of Cuba is becoming more and more unsustainable. Unable to shake the popular hold of Castro and the Communist Party and seeing the hopes for a 'peaceful' evolution towards capitalism thwarted by the remarkable resistance and steadfastness of the Cuban people, the US continues with the imposition of its cruel and inhuman economic embargo, which has continued for the last 35 years till today. The embargo denies Cuba access to credit from international financial institutions.

It also prevents Cuba from acquiring through normal trade anything that is produced in the US or by US companies in other countries, including food and medicine. In the US, the sale of any Cuban product, or even of any product using Cuban raw material is forbidden. The Torricelli Act passed by the US Congress imposes a ban from US seaports for six months on ships of any country that stop at Cuban ports. But the most recent, and most virulent piece of legislation passed by the US Congress and approved by President Bill Clinton last year in dubious circumstances, is the Helms-Burton Act. This purports to stop other, sovereign countries from investing in Cuba. It provides for legal action in US courts against any company that invests in Cuba in any property that used to belong to US companies or citizens before 1959 and which was nationalised by the revolutionary government. This measure also applies to the properties of Cubans who fled the country in 1959. Helms-Burton includes all kinds of travel restrictions between the US and Cuba. Its basic aim and main thrust is to create the maximum difficulties for the Cuban regime to promote the overthrow of the Communist Party and the restoration of capitalism. President Clinton, when signing the Act into law in the backdrop of the shooting down of two Cuban exile planes that were violating Cuban airspace despite warnings to desist, and as a tactic to mollify the powerful Cuban exile lobby in the US on the eve of his second term election campaign, had waived for six months these clauses providing for legal action in US courts against foreign companies investing in Cuba. This waiver he has recently extended again. Because of the protests of US allies, particularly European countries and Canada, at the extra-territorial, and therefore invalid in international law, scope of Helms-Burton, President Clinton had to bow to these international pressures from countries whose nationals have taken advantage of the opening up of the Cuban economy to foreign enterprise and capital. Solidarity with the Cuban people and their heroic resistance to US bullying and the blockade has found echoes all over the world.

The blockade has been condemned in the General Assembly of the UN (the Security Council is controlled by the US veto). Helms-Burton has been rejected by all of Cuba's trading and investment partners, particularly EU countries, Canada and Mexico. But the Cuban people need more moral, diplomatic and political support to strengthen the efforts of committees for solidarity with Cuba in more than 100 countries. The Instituto Cubano De Amistad Con Los Pueblos in Havana maintains relations with 1,500 solidarity organisations all over the world. After the recent visit to Pakistan of Roberto Mackchaser Siveright, an official of the Instituto responsible for the Asia and Pacific Section, a broad based committee of solidarity with Cuba and its people and against the blockade imposed by the US for three and a half decades is about to be set up here too. Our government must be persuaded to use whatever influence it can exercise to strengthen the efforts of world opinion and persuade the US to stop living in the past and establish normal relations with Cuba as it has managed to do with other socialist countries such as China, Vietnam, etc.

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E-mail: jrc@syberwurx.com