00 cubierta ingles - Banco Central de Cuba

Transcription

cuban economy 1996-2006
CUBAN economy 1996 - 2006
Cuban
Economy
1996 - 2006
c On this edition Economics Studies Direction
of Banco Central de Cuba
Edition: Lic. María Isabel Morales
Design and Production: Lic. Lucila Pastrana
Style correction: Lic. Carmen Alling
Specialized photography: Publicitur, Editora Juventud
Rebelde, Prensa Latina, Dirección de Patrimonio
del MINCULT
CONTENTS
Introduction /1
II. Trends in the key macroeconomic indicators /4
III. Economic performance by sector /14
Agriculture /15
Mining /20
Manufacturing industry/32
Electricity, gas & water /40
Construction /53
Tourism /68
Telecommunications /72
Transport /75
Public health /87
Education /98
Culture and the arts /103
Sport /118
Financial services /123
Introduction
INTRODUCTION
D
uring the last 11 years, a series of hardwon improvements in the Cuban economy
have been aimed at achieving sustained
growth, based on greater efficiency and
productivity of labour, increased openness and
integration into the international economy,
induction of new players onto the economic stage,
correction of an internal-external imbalance, and
enhancement of the business sector.
Throughout this period, the trend of economic
recovery, which dates from the end of 1994, was
sustained. Between 2000 and 2006, economic
growth averaged 6.3% per year, higher and on a
more equitable basis than in the Latin America &
Caribbean region as a whole in the same period.
All this has been made possible by the strenuous
efforts of the Cuban people, in the face of an
unrelenting economic, trade, financial and
political siege of their country, maintained by the
United States government for over 40 years, which
has inhibited the development of normal economic
relations with the world at large, with countless
repercussions on our economy.
Earlier editions of this book (covering the 'Special
Period' 1990-2000. and the decade 1993-2003) go
into some detail on the causes of the deep crisis
suffered by the country in 1989 and later years, as
well as the various measures taken by the Cuban
government to contain its effects and rebalance
the economy without sacrificing the gains that had
been achieved in the social sphere. The earlier
1
Cuban Economy 1996 - 2006
issues also describe the main economic and social
successes of the two periods mentioned.
This edition deals with the primary aspects of
Cuba's economic performance in the period 19962006 and includes graphic evidence illustrating
its achievements.
In the interests of clarity, this document is divided
into two chapters, the first describing the nation's
economic progress as measured by the key
macroeconomic indicators, while the second
analyzes developments in the various sectors
contributing to GDP (Gross Domestic Product),
highlighting those in which the greatest advances
have been made.
2
I. TRENDS IN THE KEY
MACROECONOMIC INDICATORS
I. TRENDS IN THE KEY MACROECONOMIC INDICATORS
T
he Cuban economy has scored considerable
successes during the last 11 years, and has
reached a certain level of development in
consequence. Similarly, the advances achieved in
the social sphere, which have been acknowledged
by the relevant international organizations, match
and in some cases surpass those of richer and
even developed nations, conferring on Cuba a
position of some distinction.
The economy grew by 12.5% in 2006, boosted
largely by strong performances in the construction
and social services sectors and supported by the
remaining economic sectors, all of which (with the
exception of agriculture) reported growth.
Development of the economy has been based on a
legal framework that has had to move with the
times. The following are among the relevant
measures of recent years:
YEAR
REGULATORY FRAMEWORK
1997
Decree-Law 171. Renting of dwellings
1997
Decree-Laws 172 & 173. Respectively: founding of Banco Central de Cuba;
regulation of banks and other financial institutions.
1998
Law No.187. Business improvement.
2003
Resolution 65. Use of the convertible Cuban peso in transactions between
Cuban organizations.
Resolution 80. Replacement of the US dollar in circulation with the
convertible Cuban peso.
2004
4
Trends in the key macroeconomic indicators
REGULATORY FRAMEWORK
year
2004
Resolution 92. Setting up a single state account for hard-currency revenues and
the improvement of the Foreign Exchange Approval Committees.
2005
Resolution 13. Revaluation of the Cuban peso against the convertible peso.
2005
Resolution 15. Revaluation of the convertible peso against the US dollar
and other hard currencies.
Important factors in the growth in GDP during the
last three years have included high value-added
services, reflecting the Cuba's long-term
investment in its human capital. The medical
sector has been especially significant in this
context, its growth outstripping that of the rest of
the economy.
As from 2005, GDP has been measured on a basis
that recognizes the value associated with service
quality (in education, public health, culture,
sports and television), providing a fairer reflection
of the value added by these services, by including
them in this indicator, although the method used
take only partial account of the qualitative
GROSS DOMESTIC PRODUCT 1996 - 2006
14,0
Percentage growth
12,0
11,8
11,0
12,5
10,0
8,0
6,3 6,1
5,4
6,0
3,8
4,0
3,0
2,7
1,8
2,0
0,2
0,0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006a)
a) Preliminary
Source: National Statistical Office (ONE).
5
transformations achieved by Cuba's social
services.
The traditional basis for calculating GDP
underestimates the contribution of social services
in Cuba, since these are provided free of charge
and thus do not give rise to any profits or
additional value added. Also, the wages and
salaries included in the calculation of expenditure
do not reflect the true purchase cost or the scale of
the value created by the work of Cuba's citizens,
given the distribution under the nation's social
policy of various consumer goods free of charge or
at artificially low prices.
Sustained growth has been achieved in conditions
of greater economic efficiency, better control of
resources. An evidence for this assertion includes
the following facts:
•
Since 2000, GDP per capita has risen by an
annual average of 6.1%.
•
Between 2000 and 2006, the productivity of
labour improved at an annual average rate of
4.9%.
•
A trend leading to full employment is reflected
in an unemployment rate that fell from 7.6% in
1996 to 1.9% in 2006..
•
Between 2000 and 2006, energy use
(measured as fuel consumed per unit of GDP)
declined by an average 7.35% a year.
•
The country has become a service-based
economy - a highly beneficial change given the
faster growth of the service industries, lower
energy consumption and better use of the
skilled workforce. The services element of GDP
rose from 60.4% in 1996 to 75.8% in 2006.
6
•
The services-related component of foreign
revenues has also risen. The proportion of total
exports of goods and services thus accounted
for in 1996 was 48.0%; the corresponding
figure for 2005 was 75.0%.
•
In the period 1996-2006, investment
effectiveness (as measured by the ratio of gross
fixed-capital formation to total investment)
rose by an average 6.5% p.a.
•
Sector results demonstrating the increasing
efficiency associated with the economic
recovery during the period 1996-2006 include
a 33.5% increase in nickel production, a leap of
150% in the output of oil and natural gas, a
24.4% rise in power generation and intensified
activity in the tourism sector.
•
At national level, the pollution index declined
from 6.9% in 1999 (the year in which
measuring started) to 3.7% in 2005.
Environmental licences are now required for all
relevant development projects.
•
The banking and financial system has been
reorganized, decentralized and modernized,
RATIO OF PSBR TO GDP
4,2
4,5
4,0
2,8
3,0
2,8
3,5
3,2
2,5
2,5
2,3
2,4
2,0
2,2
2,1
2,0
2006a)
2005
2004
2003
2002
2001
2000
1999
1998
1997
1,5
1996
Percentage
3,5
a) Preliminary
Source: Ministry of Finance and Prices.
7
which has led to improved quality of service
provision and a more effective role as a
stimulus for the economy.
Public finances have performed satisfactorily,
supporting the investment process as well as the
government's various economic and social
programmes. The ratio of PSBR (public-sector
borrowing requirement) to GDP has ranged from
2.0% to 4.2% - acceptable levels given the
conditions in which the economy has evolved.
1 196,9
1 248,9
2004
2005
861,6
912,6
1 200,5
600,0
400,0
2003
800,0
393,4
1000,0
586,1
770,3
1400,0
1200,0
1 139,4
1600,0
1 350,0
Million of pesos
Millones
de pesos
1800,0
1 624,4
SUBSIdies to cover losses
200,0
a)
Preliminar
a) Preliminary
Significant changes during the period under
review included a reduction in subsidies to state
enterprises from 1,624.4 million pesos in 1996 to
912.6 million in 2006.
Monetary liquidity rose in step with the growth in
the economy and in response to Resolution
13/2005 of Banco Central de Cuba's Monetary
Policy Committee, revaluing the Cuban peso
against its convertible counterpart and thereby
8
2006a)
2002
2001
2000
1999
1998
1997
1996
0,0
Source: Ministry of Finance and Prices
LIQUIDity in the hands of the general public
20,2
21,0
19,7
13,6
13,0
9,5
10,5
9,7
9,0
14,5
13,5
12,3
9,9
9,4
2006
2005
2004
2003
2002
2001
2000
1999
1998
1,0
1997
5,0
1996
Billions of pesos
17,0
Source: Banco Central de Cuba.
prompting a shift in the composition of the general
public's savings in favour of the former. The ratio
of liquidity to GDP reached 38.0% by the end of
2006, remaining under the control of the
monetary authority.
The Consumer Price Index has shown a favorable
performance, despite a policy of increases in
wages, pensions, welfare and similar rights, which
has been pursued for the last six years to the
benefit of some 55% of the population.In the
period 1994-2000, the Cuban peso (CUP) was
revalued in the high-street currency-exchange
market by more than a factor of seven. A rate of
around 150 pesos to the dollar in the second
quarter of 1994 compares with 20-21 pesos in the
last quarter of 2001, when it was devalued by
22.7% in conditions of a decline in the influx of
dollars, as from the repercussions on our tourist
trade of the September 11 attacks.
9
It remained stable at an average 26.11 pesos to the
dollar until the first quarter of 2005. In March of
that year, Banco Central de Cuba's Monetary
Policy Committee passed Resolution 13,
hardening the rate against the convertible peso
(CUC) to 24.00 for sales of the latter and US dollars
by members of the public to the state bureau de
change (CADECA) and 25.00 pesos for purchases.
This measure was designed to strengthen the
national currency and to consolidate growing
public confidence in the domestic currency.
Average rate of the cuban peso (cup) to
the us dollar at the high-street bureaux
de change
15
Pesos/USD
P e s o s /U S D
20
25
30
35
40
I/9 6
II
III
IV
I/9 7
II
III
IV
I/9 8
II
III
IV
I/9 9
II
III
IV
I/0 0
II
III
IV
I/0 1
II
III
IV
I/0 2
II
III
IV
I/0 3
II
III
IV
I/0 4
II
III
IV
I/0 5
II
III
IV
I/0 6
II
III
IV
45
Trimestres
Quarters
Source: Banco Central de Cuba.
10
The higher levels of industrial and commercial
activity associated with economic recovery,
coupled with the transformation of the
monetary/financial scenario, has created the
conditions for measures directly benefiting the
public at large, such as the wage increases
mentioned earlier and readier access to bank
credit, without breaching the established
monetary and financial policies.
Cuba's balance of payments on current account
was adverse in the period 1996-2003, with ratios
of deficit to GDP ranging from 0.7% to 2.4%, while
surpluses were recorded in 2004 and 2005
(favourable ratios of 0.3% and 0.5% respectively).
Domestic financing in convertible pesos via the
national banking system has risen sharply.
The banking system has played an essential
role in the economic recovery
In 2006, it amounted to 2.5 billion CUCs, almost
quadrupling the corresponding statistic in 1997.
This financing basis was nonexistent before the
mid-1990s.
As regards external financing, Cuba has taken the
measures needed to sustain the process of
economic recovery, despite the constant
economic, trade and financial war waged on our
country by the United States for more than 40
years.
The last three years have seen a considerable
strengthening of relations with the Bolivarian
Republic of Venezuela and the People's Republic of
China, involving the signature of important
agreements for developing key sectors of the
Cuban economy.
In recent years, the country has found alternatives
that have enabled the reaching of bilateral debtrescheduling accords with creditors willing to be
flexible, under mutually advantageous
conditions.
A substantial portion of Cuba's
foreign banking and trading debt that had been
frozen since the 1980s has been rescheduled in
11
this way, restoring access to official credit and
increasing that from banking and trade sources.
Credibility in the banking institutions
continues to increase
Importantly in this context, during the last five
years there has been a steady improvement in the
credibility of Cuba's financial institutions among
its creditors and in the capital markets.
12
II. ECONOMIC PERFORMANCE BY SECTOR
II. ECONOMIC PERFORMANCE BY SECTOR
C
uba's economic growth has been achieved
in the face of considerable difficulties and a
financial situation complicated by
problems over access to external financing.
Among the internal difficulties, between 2001 and
2005 Cuba was hit by eight medium –or high–
category hurricanes, causing losses to the
economy totaling an estimated 8.4 billion US
dollars; the eastern region suffered a severe
drought throughout the period 2003-2005,
resulting in damage estimated at US $1.4 billion;
these setbacks were compounded by the costs
associated with the new measures imposed by the
Bush administration during the last four years,
tightening the economic, trade and financial
blockade against Cuba.
Despite these obstacles, the country has made
substantial progress in both economic and social
terms, as well as Herculean efforts to hold onto
ground already won. An accelerating economic
recovery has resulted from a set of measures
launched during the 1990s, which raised
efficiency and productivity through rational and
efficient use of the available material and financial
resources. The benefits can be seen in the gradual
revival of all the sectors and branches that
contribute to Cuba's GDP.
The chart below depicts the respective weights of
the key sectors contributing to the nation's
economic growth between 2000 and 2006.
14
Damages caused by Wilma
hurricane in 2005
River completely dry during the draught
affecting Cuba´s Western areas
Economic performance by sector
annual average growth in the period 2000 - 2006
C o m m u n ity ,
s o c ia l &
pers onal
s e r v ic e s
12
C o n s tr u c tio n
10
Porcentage
8
Co mme rc e ,
r e s ta u r a n ts
T r a n s p o r t,
& h o te ls
w a r e h o u s in g &
c o m m u n ic a tio n s
F in a n c ia l
in s titu tio n s ,
p r o p e r ty &
b u s in e s s
s e r v ic e s
T o tal
G DP
6
4
2
6,
Ex tr a c tio n
( m in e s &
q u a r r ie s )
c a n te r a s
1,
9,
6,
5,
2,
10,
0
Source: National Statistical Office (ONE)
ECONOMIC SECTORS CONTRIBUTING MOST TO
THE GROWTH IN CUBA'S GDP OVER THE LAST
DECADE
AGRICULTURE
Recovery in the farming industry began in the
mid-1990s, with the non-sugar segment leading
the way as the basic source of food for the
population, despite being the more vulnerable to
adverse climatic conditions.
Non-sugar agriculture
Earlier measures to reinvigorate farming activity
began to bear fruit in 1995, with the emergence of
new methods of production and new bases of
landholding. Up to 2005, 71.8% of all cultivated
land was in private-sector hands (cooperatives
and individual farmers).
15
Factors in the favourable sector performance
include: linking pay to results, which has raised
average incomes in the sector; more efficient use of
cultivated land; variation of crops and application
of new technology in the areas offering the best
prospects of high returns.
Also, a system of commitments to the state by
individual farmers for the cultivation of various
products and own consumption have been factors
in the boosting of agricultural production since
1994, contributing to increased availability of
foodstuffs destined for household and
institutional consumption and to job-creation in
the farming sector.
While a combination of bad weather and deficient
organization have led to a decline in agricultural
production in the last two years, that of
vegetables peaked during the period 1996-2004,
having risen by an average 19.2% per year. The
volume of these crops reached in 2004 was four
times the corresponding total in 1996.
PRODUCtion of vegetables
P R O D UC C IÓ N D E V IA N D A S Y H O R T A LIZ A S
8000
7000
Thousands of tons
Garden produce
6000
Edible roots
5000
4000
3000
2000
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
1996
1000
16
Harvesting potatoes.
Among the root vegetables, potato and sweet
potato crops were among those to increase most,
as was that of plantains; among other vegetables,
sharply rising volumes applied in the cases
tomatoes, onions and peppers.
Vegetable production was down by 9.7% on the
previous year in 2006, affected by persistent
organizational deficiencies in the sector and the
17
bad weather mentioned earlier. It was still much
higher (2.9 times) than in 1996.
Other farming outputs to perform well included
rice (up on 1996 by a factor of 1.3), corn (a factor of
3.8), beans (9.5), citrus fruit (1.2) and tobacco
(1.0).
Tobacco production rose significantly in the
period 1996-2004, recovering well from a setback
in the early 1990's. The improvement followed the
introduction of varieties more resistant to pests
and diseases, and extension of the land under
cultivation. The recovery was an important factor
as a significant source of hard currency.
Production of citrus fruit, another Cuban export,
increased as part of a substantial improvement in
agricultural yields. Also, the citrus processing
industry was diversified and expanded its share of
the European market.
Tobacco growing.
18
A milestone in the development of the sector was
the introduction in 2002 of electrified irrigation.
The benefits for farming have been substantial, in
terms of both the technological advance these
schemes represented and the saving to the Cuban
economy of diesel fuel.
An important contributor to the increase in
agricultural production has been urban
agriculture. This type of production has been
expanded and improved in terms of efficiency,
involving the setting up of organoponic (urban
organic) and market gardens and allotments in the
towns, controlled by the Ministries of Agriculture
and Sugar. One of the system's advantages is that
it provides employment for over 300,000 people.
In 2006, production of fresh vegetables and herbs
amounted to 4.2 million tons, 40% above the total
in 2002 (3.0 million tons) when the process of
consolidating urban agriculture got underway.
Urban agriculture (organoponic gardens).
19
Animal husbandry
At the close of 2006, in physical terms, pig
production increased by 77.1% with respect to
1996, which made possible to increase its delivery
to the benefit of the population.
The total poultry stock in 2006 was 2.4 higher
than that registered in 1996, which allowed
increasing egg production by 82.8%.
Besides, the number of sheep and goats was
almost quadrupled in the same period, registering
a 3.2 times higher milk production.
MINING
Mining and quarrying activity grew by an average
1.2% p.a. during the period 2000-2006.
Extraction of crude oil, natural gas and nickel has
made a growing contribution to the nation's GDP.
Albeit to a lesser extent, extraction volumes rose
also in the cases of marble, gold, copper and other
minerals. Quarrying operations –an important
source of raw materials for the construction
materials industry– also expanded.
Crude oil and natural gas
Extracted volumes of crude oil began to rise in
1992 and those of natural gas in 1996, primarily
reflecting the strategy developed for this important
energy segment, involving the participation of
foreign oil companies with innovate technological
and financial resources.
In 2003, an all-time record total of these products
was extracted: 4.3 million tons, in equivalent
terms (both products expressed in common units
based on their calorific capacity).
20
Oil extraction in 2006 amounted to 4.0 million
tons (in oil equivalent terms), 2.5 times the volume
in 1996; levels are expected to continue rising
during the next few years. Expansion is based on
an intensive exploration program that includes an
ambitious plan for seismic research and drilling
operations both on land and in shallow waters, as
well as in the depths of Cuba's Exclusive
Economic Zone (EEZ) in the Gulf of Mexico.
During 2006, drilling was completed at 25 wells
while eight are being worked, four of which are
exploratory and the remainder in production.
EXTRACtion of crude oil GAS
4 ,2 4 ,3
4 ,5
Millions of oil-equivalent tons
4 ,0
3 ,4
3 ,5
3 ,0
4 ,0
4 ,0
3 ,7
3 ,6
2 ,7
2 ,5
2 ,0
1 ,9
1 ,6 1 ,6
1 ,5
1 ,0
2005
2005
2004
2004
2003
2003
2002
2002
2001
2001
2000
2000
1999
1999
1998
1998
2006a)
2006a)
a) Preliminary
1997
1997
0 ,0
1996
1996
0 ,5
Source: National Statistics Office (ONE)
In 2003, the Sherrit-Peberco partnership
conducted a three-dimensional (3D) seismic
marine study, which revealed four prospects on
Cuba's northern coast, at Santa Cruz, Tarará,
Guanabo and Jibacoa Este.
21
Exploratory drilling started that year at Santa
Cruz, a field of some 20 square kilometres. In
2004, the first exploratory well ("Santa Cruz 100")
revealed the presence of three saturated-oil
reservoirs with the following characteristics: a
product with an API (American Petroleum
Institute) gravity of 18° (lighter than Varadero or
Yumurí crude), with very little water and good
production pressure (a gusher - the oil discharges
from the deposit without the need for pumping)
and a sulphur content of less than 5%.
According to preliminary estimates, this deposit's
extractable reserves are at least 100 million
barrels, around 14.0 million tons .
The high quality of this crude means that it can be
refined in a blend with lighter and lower-sulphur
crudes, at a proportion of around 20%. The other
three prospects detected by high-resolution
'Great Wall of China' Chinese
200-HP drilling rig.
22
View of the platform of the
'Great Wall of China'
drilling rig.
Puerto Escondido
(La Habana province)
oilfield.
23
Oil rigs at Varadero,
Matanzas province.
View of the gusher at
Puerto Escondido
(La Habana province) oilfield.
24
Oil storage depot at Puerto Escondido
(La Habana province).
marine seismography are expected to produce
similar results. The forecasts for oil extraction
over the next few years have accordingly been
sharply increased.
A programme of capital investment initiated in
2003 has made solid progress in consolidating the
oil exploration and production activity. The
resulting set of basic investments are in the hands
of both the Cuban sector company Empresa
Cubapetróleo (CUPET) and the foreign operating
companies. In 2000, Cuba opened its Exclusive
Economic Zone (EEZ) in the Gulf of Mexico to
foreign investment in the prospecting and
production of crude oil. Seismic and aeromagnetic
surveys were conducted by foreign operators in
the period 2000-2006 in various blocks within the
zone, and a well was drilled in the area.
25
In 2006, exploration operations with foreign
companies covered an area of over 30,000 square
kilometres, divided into 16 licence blocks in deep
water in the Gulf of Mexico, and also oil and gas
prospecting and production on land and in
shallow water. Between 1992 and 2006, the
associated investment amounted to some 1.3
billion dollars.
A key development was the completion in 2000 of a
75-km oil pipeline connecting the Varadero
deposit with the supertanker base in Matanzas
EXCLUSIVE ECONOMIC ZONE (EEZ) IN THE GULF OF MEXICO
The opening of the EEZ to foreign investment marked the start of a substantial national energydevelopment programme covering prospecting for and production of crude oil.
According to the experts, the Gulf of Mexico holds the world's most prolific offshore oilfields. The Cuban
sector is in deep water, possibly the Earth's last large virgin expanse.
Various foreign companies are currently undertaking complex, high-cost prospecting operations in the
zone, in search of new and larger deposits.
The supertanker base
in the Bay of Matanzas.
26
The supertanker base
in the Bay of Matanzas.
province, under a scheme which has obviated the
need for transporting the crude by coastal
shipping.
During the last three years, major agreements
have been entered into with the Bolivarian
Republic of Venezuela, concerned with extraction
and production of oil. These will enable Cuba's oil
industry to be developed even further.
The treaties with Venezuela include an agreement
for supply of Venezuelan fuel oil to Cuba which,
together with local production, will ensure the
continuity of essential supplies.
In 2006, extraction of natural gas associated with
crude oil reached a record 1,081.5 million cubic
metres. The related average annual growth rate
between the years 1996 and 2006 was 49.0%.
27
EXTRACtIoN of NATURAL GAS
1200
1 085,1
Millions of cubic metres
1000
800
743,3
658,0
594,6
600
704,2
574,1
584,7
400
460,0
200
124,2
37,2
19,3
a) Preliminary
A rising trend in this segment has been
maintained, culminating in 2006 with a total
volume extracted exceeding that in 1996 by a
factor of 56.2.
In 1997, gas associated with crude oil, which was
escaping into the atmosphere, began to be used in
the economy for generating electricity and as a
domestic fuel. The advantages included a
reduction in atmospheric pollution, as well as
benefiting a large number of Cuban households.
A key investment was that in the construction and
commissioning of a 15-km gas pipeline along the
northern coast of La Habana province and its
connection to the treatment plant at Puerto
28
2006a)
2006a)
2005
2005
2004
2004
2003
2003
2002
2002
2001
2001
2000
2000
1999
1999
1998
1998
1997
1997
1996
1996
0
View of the gas pipeline
on the northern coast
of La Habana province.
View of the effluent treatment
and deposition plant at Canasi,
in western Cuba.
29
Escondido. This created enough cleaning capacity
and installed power to assimilate all the available
gas and even leave a margin for increases arising
from the further discoveries that are being made.
Also, an effluent treatment and deposition plant
was put into operation at Canasi, in western
Cuba.
Nickel extraction
Cuba's nickel mining activity has also recovered
well, from the repercussions of the economic crisis
that hit the nation primarily in the early 1990s.
Substantial investment in the sector has been
made, including foreign investment. In the period
2003-2006 the Pinares Transporter, started in
2003, was completed, which will ensure a steady
30
View of the oil-associated
natural gas plant at Canasí.
supply of the mineral and, hence, continuity of
production.
Substantial investment in the sector has included
an inflow of foreign capital. Among the main
investments during the last three years was
construction of a nickel transporter at the Pinares
de Mayarí mine, started in 2003 and completed in
2006, which will ensure a steady supply of the
mineral for processing and, hence, continuity of
production at the René Ramos Latour nickel plant
for 15 years. Also, capital investment by the
Comandante Ernesto Che Guevara Company
included construction work on a new
thermoelectric plant, scheduled for completion in
2007, and the first stage of a nickel homogenization
project.
At the end of 2004, a joint study with the People's
Republic of China got underway regarding the
formation of a joint venture company to exploit a
new nickel deposit at San Felipe in Camagüey
province, involving a 1.3 billion-dollar investment
financed entirely by Chinese banks. The facility will
produce 50,000 tons of nickel annually.
Material unloading site.
31
Economía Cubana 1996 - 2006
MANUFACTURING INDUSTRY
The recovery of Cuba's manufacturing base, dating
back to 1994, has been most clearly apparent in the
non-sugar sector.
During the first half of the 1990s, manufacturing
industry (like the rest of the economy) was hit by one of
the worst crises in Cuba's history. It was suddenly
deprived of the supplies and equipment that were
essential to the production process. This inevitably
led to the halting of major investment projects then in
progress and the closure of several substantial firms.
The set of measures introduced to stop the decline
have enabled, over a number of years, more flexible
commercial management mechanisms (internal and
external), greater diversification of industrial
production, an increasing number of firms with
foreign capital, and tourism-sector companies, as well
as development of the domestic market denominated
in convertible pesos.
The nickel industry is among the segments that have
increased production substantially. Output passed
the 70,000-ton mark in 2000 and a record 76,500 tons
was reported in 2001.
During the last decade, the nickel industry has
consolidated its position as a key source of export
revenues. These totalled some 1.3 billion dollars in
2006 (beating the forecast for the year by 60.0%),
boosted by the high world prices for nickel and Cobalt.
Total production for the period 1996-2006 amounted
to over 760,000 tons; in 2006, it reached 71,700 tons
of nickel and cobalt, an increase of 33.5% on the
32
The René Ramos Latour
nickel processing
plant in Holguín province.
The Comandante Ernesto Che Guevara nickel
processing plant in Holguín province.
Material unloading site.
corresponding total for 1996.A key role was played
during this period by the Comandante Ernesto Che
Guevara company, which has maintained a level of
annual output above its design capacity since 1999,
based on investment in upgrading its technological
process so as to increase production and improve
metallurgical efficiency.
An agreement reached with the Canadian company
Sherrit International involves an increase of some
53,000 tons in the output of the Cuban-Canadian
joint-venture company in Moa (eastern Cuba), to a
total f 85,000 tons (nickel and cobalt). The associated
33
NickEL PRODUCtIoN*
(Thousands of tons content)
71,7
2006a)
2005
75,6
75,9
2004
2003
70,9
75,2
2002
76,5
2001
2000
71,4
1999
66,5
1998
67,7
1997
1996
50,0
61,6
53,7
55,0
60,0
65,0
70,0
75,0
80,0
Thousands of tons
Fuente: O ficina N acio nal de E stadísticas (O N E ).
*Nickel
and cobalt
content.
*C
o ntenido
de níquel
más co balto .
a)a)PPreliminary
reliminar.
Source: National Statistics Office (ONE).
Nickel bagging process.
capital investment amounts to around 1 billion
dollars. The cost of production at the exiting plant, is
one of the lowest in the world.
The nickel industry is working to reduce production
costs, the largest of which is energy. To this end, a
programme of modernization of the thermoelectric
generating plants supplying the industry's
installations, adapting these to burn Cuban crude,
was started a few years ago.
The foreign company Sherrit is expected to increase
from about 53 000 tons the nickel and cobalt
production of the Cuban-Canadian company MoaNíquel up to 85 000 tons. The estimated investment for
this project is 1 billion dollars. The cost of nickel and
34
Proceso de
almacenamiento
del níquel.
Nickel warehousing operations.
View of material processing plant.
cobalt at the existing plant is the lowest in the world,
consuming just 5.0 tons of fuel oil per ton of nickel.
The growth of Cuba's oil industry dating from 1992, has
had a major effect on the economy by virtue of replacing
oil imports; the social benefits have been considerable.
This industry's output over the period 1996-2006
totalled some 30 million tons oil equivalent, implying a
saving of around 3.5 billion dollars (at current world
fuel-oil prices and at weighted costs of production and
purchasing from foreign companies), as well some 6.7
billion dollars at constant 2006 prices, applied to the
same output levels.
The food industry has been under development for
several years, involving a substantial investment
35
programme that has absorbed 142.0 million pesos,
plus a forecast 64.0 million in 2007. Products on the
increase in recent years include canned meat, wheat
flour, powdered milk, yoghurt, cheese, refined
vegetable oil, crackers, torula yeast, mixed feeds,
packaged fishmeat and alcoholic and soft drinks.
A key factor in the recovery has been the supply of food
and drinks to the tourist trade and the retail chains.
The iron & steel engineering industry has developed
strongly, notably in the steel, engineering and
recycling segments.
The last three years have seen sustained growth in an
important group of products, including corrugated
steel rods, carbon steel bars, liquid carbon steel and
aluminium components. Output recovered also in
electrical accumulators, steel structures, farm
implements and spare parts for motor vehicles and
combine harvesters.
Within the framework of Cuba's existing development
priorities, this industry has played a key role in the
"Energy Revolution" by virtue of its participation in the
programmes described below.
·
Cuban Energy-Saving Programme (PAEC), through
which electric appliances with high power
consumption are replaced by new and more efficient
ones, distributed to the population. This involves
the manufacture or assembly of domestic electrical
appliances, and the import of others. By the end of
2006, the engineering branch had distributed a
total of 26,678,417 such items, including airconditioning units, fans, refrigerators, elements for
cooking and water-heating appliances, lighting and
similar products.
36
Domestic electrical
appliances made
or assembled in Cuba
·
Housebuilding
programme: 100,000 houses per
year. Key products in this area include galvanized
metal items, electrical cables, steel bars and wire,
wire-based products, plumbing metalwork, lowvoltage elements and light metal coverings.
·
Food
programme to increase agricultural
production: Supply of tractors, pumping
equipment, elevators, trailers, truck tractors and
special trucks.
·
Automotive
programme to recover passenger and
freight transportation: Assembly of ambulances and
coaches for inter-provincial transport, mounting of
cranes and drilling equipment on National
Electricity Union vehicles, among other tasks.
·
Programme
for the restoration of freight
transportation: Conversion of flatbeds to carry
containers, refurbishment of low-loaders, hoppers
and similar items; manufacture of 11 types of spare
part.
37
Also significant was the manufacture of medical
fittings and accessories, output of which rose to
620,000 units in 2006, double the previous year's
total.
The pharmaceutical industry has expanded and can
be regarded as among the leading concerns
internationally in the manufacture of various types of
generic medicines.
Medical fittings manufactured
by Cuban industry.
A medicines development programme has been
running since the early 1990s, aimed at replacing
imports and promoting exports of these products.
Medicines are a key element in Cuba's public health
service, as a means of improving health patterns and
the quality of life of the population. Domestic
manufacture of medicines has demonstrably
contributed to the nation's favourable health
38
indicators, as well as generating savings of hard
currency.
A downward trend in sugar industry production
reflected the total loss of the market at preferential
prices which existed with the former East European
Socialist Bloc, and the problems in connection with
adverse financing arrangements and scarcity of
relevant supplies.
Restructuring of the sector involved the closure of 70
refineries, while over 600,000 hectares of sugar-cane
producing land was converted to ranching, forestry
and fruit growing, cultivation of root vegetables and
similar crops, organoponic gardens and intensive
cultivation centres. Over 60,000 workers took up
studies or training courses, as a form of employment.
In the wake of restructuring performed in 2002, the
sector comprised 13 Agroindustrial Business Groups
(GEAs), composed of 61 sugar companies, 45 farms
and 20 firms operated directly by the GEAs.
Sugarcane and agricultural production is carried out
by 752 Basic Cooperative Production Units (UBPCs),
400 Agricultural Production Cooperatives (CPAs), 314
Credit & Services Cooperatives (CCSs) and 206 state
farms. There are five National Business Groups
comprising 8 national firms reporting centrally and 47
other firms. Subsidized operations are represented by
19 concerns, including four research institutions, plus
the National Sugar-Industry Training Centre and 14
employment offices.
Cuba plans to increase its investment in the sector,
adding to the number of refineries in operation, as well
as modernizing the existing 11 distilleries as part of a
liquor production programme that also involves
erecting seven modern plants each with a processing
capacity of 300,000 litres per day.
39
ELECTRICITY, GAS & WATER
The sector represented by these utilities was upgraded
substantially, to the benefit of the Cuban public, after
being badly hit by the economic crisis that followed the
collapse of the Soviet Union.
Gross generation of electricity has recovered steadily.
By dint of monumental efforts, generation reached a
level in 2006 higher than that in 1996 by 20.5%.
The programme of investment in modernization of the
power stations, launched in 1996, aimed at converting
these to burn Cuban crude. At the end of 2006, work
was unfinished at the Cienfuegos and FELTON plants.
Savings from the use of Cuban crude during the period
1996-2006 totalled 1,023.4 million dollars.
2005 was marked by the start of a process of
transformation in the generation and use of electricity,
Gross
GE
N E R A Cgeneration
IÓ N B R U T A D E of
E N Eelectricity
R G ÍA E L É C T R IC A
18000
16000
12000
10000
14 148,6
14 492,2
15 032,2
15 299,8
15 699,8
15 810,5
15 651,7
15 342,9
1998
1999
2000
2001
2002
2003
2004
2005
16 468,5
14 145,6
4000
1997
6000
13 236,5
8000
1996
GW/h
Gigawatt/hora
14000
2000
2006
0
F u en te: O fic in a N ac ion al d e E s tad ís tic as (O N E ).
40
which constituted one of the most fundamental
changes –referred to as the Energy Revolution–
effected in the national grid (SEN).
The conceptual changes are based on introducing a
new generating scheme involving the installation of
groups of diesel and fuel-oil burning generators
synchronized with the national grid.
Diesel generators installed between August 2005 and
December 2006 provided capacity of 1,300 MW,
eliminating 90% of the shortfall (power cuts). This has
enabled a 1.2% reduction in transmission losses and
fuel savings of 8.9 million dollars. Fuel-oil burning
The Antonio Guiteras thermoelectric power station in Matanzas province
41
generators are also being installed, under a
programme scheduled for completion in 2008, which
will mean total capacity in this form - deployed close to
the centres of demand - of over 1,700 MW in place by
the end of that year.
The Ministry of Basic Industry (MINBAS) runs a
national centre for industrial certification (the CNCI) in
Cienfuegos province, which is training and preparing
personnel to operate the arrays of generators;
Arrays of generators.
42
nationwide, 2,000 such operators have qualified to
date. This centre has a counterpart in Canada, at the
Northern Alberta Institute of Technology, with which it
has cooperation agreements; it also participates in the
relevant international certification scheme.
The key strategic lines in the ¨Energy Revolution¨
changing the ways of producing, distributing and
consuming electric power include:
·
Distribution
to the population at large of energyefficient electrical appliances to replace their
existing high-consumption counterparts and
inefficient lighting, making a decisive contribution to
energy saving in the household sector. These items
have been supplied at cost or subsidized prices,
supported by bank credit facilities never previously
offered. The following Table shows the outcomes in
terms of fuel and hard currency savings and
reduction in the demand of power supply as well,
against a selected number of electrodomestic
appliances distributed to the population.
RESULTs of replacing certain electrical appliances
in cuban households
(as of 31 December ‘06)
Reduction
Item
Replaced
in demand
(MW)
1 033 096
62
160 562
Refrigerators
Light bulbs
Fans
Air cond. units
Saving
Fuel (Tons)
Financial
(US $m)
302
83 561
25,0
137
263
73 000
22,0
2 500 000
292
2 110
584 513
173,0
9 495 319
160
448
124 203
37,0
in generation
(GW/h p.a.)
Source: Ministry of Basic Industry (MINBAS).
43
ARRAYS OF GENERATORS
These are low-consumption, high-uptime plants that are easy to install and have unit power levels
below those of thermoelectric plants. Thus the failure of a single generator would never cause a crisis.
The installation programme has reflected economic and social priorities and the machines are
synchronized with the national grid, an arrangement that makes the system more flexible without the
need for large investments in new thermoelectric facilities. By the end of 2006, generators had been
installed in 116 of Cuba's 169 boroughs. The overall capacity of these arrays is equivalent to the
construction of almost four thermoelectric plants like that located in Matanzas Province, the biggest in
the island.
Locating the generators closer to the centres of demand means reduced transmission losses and
mitigates the risk to national economic and social life from natural disasters and similar
extraneous events.
Fuel consumption ranges between 198 and 227 grams of diesel oil per kilowatt, the most economical
being the larger plants. Their useful life depends on the level of maintenance; it may be upwards of 20
years before major refurbishment, and can be extended by 10 years following such capital repair.
By the end of 2006, a total of 6,301 generators had arrived, of which 3,798 had been installed. These
are destined, among other aims, to ensure continuity of electricity supply to:
255 general hospitals
348 outpatient hospitals
119 dental clinics
245 blood banks, old people's homes, care centres for the mentally or physically
disabled and principal pharmacies
639 bakeries
356 food production, processing and preservation plants
37 refrigeration plants
293 water pumping, recycling and purification systems
74 'Mission Miracle' (eye surgery) clinics
163 key educational establishments
236 media centres (press, TV and radio)
59 weather stations
64 chemical/pharmaceutical and biotechnical establishments
36 tourism-sector installations.
44
·
Use of electricity as the primary source of energy for
households, instead of kerosene or liquefied gas
(LPG). Two types of appliance are being supplied for
use on this basis:
- Non-electrical: traditional pressure cooker and
kitchen equipment designed to maximize efficient
use of energy. Overall, consumption associated
with these is 25% less than that of their earlier
counterparts.
- Electrical: cooker, pressure cooker, rice cooker,
kettle, water heater.
A slight increase in
electricity consumption is associated with this
group, but this is more than offset by the
reductions in kerosene and LPG consumption,
generating net savings of millions of dollars
annually.
·
Introduction
of programmes to encourage energy
saving, via the school system and the application of
new rates of charge for electricity.
·
Refurbishment of the electricity supply network. A
substantial investment programme has been
underway with the National Electricity Union since
2005, aimed at eliminating voltage problems and
service failures caused by surges, increasing
reliability by virtue of fewer interruptions, and
reducing power losses. The objective is unbroken
continuity of supply to households, given that these
use electricity as the domestic fuel.This programme,
which will terminate in 2008, encompasses various
measures. By the end of 2006, replacements of
electricity poles in poor condition numbered 67,319,
a total of 10,400 transformers had been upgraded
and 357,335 cabling works (for household electricity
supply) carried out, as well as the installation of over
2.3 million circuit breakers in homes, replacement of
meters, modernization of overhead and
45
Some of the electrical appliances,
including energy-saving bulbs,
supplied to Cuban households.
46
underground transmission networks to make the
service more resilient and absorb surges,
replacement of damaged transformers and other
works
·
Replacement
of water pumps with more efficient
devices and installation of electric ovens in bakeries
which reduce consumption of diesel, fuel oil and
wood.
Studies are made for the earliest possible introduction
of wind power, involving population of the first
windmill fields.
Cuba's solar radiation potential is at least 1,700 hours
annually, representing 6 kW hours per day per square
metre. The possibilities for harnessing solar power are
accordingly also under systematic review. Over 7,000
modules have been installed, supplying electricity to
schools and hospitals in remote areas. Thus
schoolchildren in mountainous and other rural areas
have access to the same 'teaching by television'
programmes and computing facilities as those of their
urban counterparts.
Production of natural gas associated with oil, which in
2006 reached a record 1,085.1 million cubic metres,
continues to support the generation programme and
contributed to a substantial improvement in the
supply of domestic fuels to the population.
The introduction of natural gas in the generation
process was launched in 1998 with the formation of a
joint-venture company, ENERGAS S.A., which had
reached installed capacity of 305.0 MW by the end of
2006, with 9 plants located in Varadero (5), Jaruco (3)
and Puerto Escondido (1). Using gas of this type for
generation of electricity produces savings of 185.0
million dollars.
47
As part of the programme aimed at maximizing
exploitation of natural gas associated with oil, 2006
saw completion of a scheme to replace manufactured
gas in Havana with a natural gas/air mixture.
Supplies of clean natural gas to Havana are running at
325,000 cubic metres daily; the savings during 2006
resulting from substitution with the natural product
in industry amounted to 31,116 tons of naphtha, 583
tons of LPG and 5,266 MWh of electricity.
As regards water supply, the trend over the last five
years has been one of gradual increase. Supplies of
drinking water have increased by 1.4%, while effluent
treatment volumes are 1.3% higher; the rural areas
ENERGAS Varadero, Matanzas province.
48
ENERGAS Boca de Jaruco, La Habana province.
have benefited most from the improvements. The
progress achieved has been accompanied by a decline
in water-borne diseases.
As of the end of 2005, 95.6% of Cuba's population had
access to drinking water. Compared with the situation
in 2000, a further 176,000 persons benefited from the
service, while connections of households to mains
supply increased by 2.3%.
In November 2006, up to 96.9% of the water was
treated in plants, while a stabilization over 95% had
already been reached since 2001. The non-stop
49
chlorination by 98.5% and the potability index by
95.9% achieved, renders a higher guarantee to the
population.
The water system infrastructure at the end of 2006
consisted of 239 reservoirs, 61 compensating
reservoirs, 81 primary channels, 10 large pumping
stations, 1,999 water-treatment plants, 2,194 sites
with conduits and 2,375 secondary pumping stations.
Major water supply and effluent-management works
were completed in 2006, to be followed in 2007 by a
substantial investment programme of refurbishment,
The 'Nuevo Mundo' Reservoir, Holguin province.
50
The Paso Bonito water purification plant, Cienfuegos province.
addressing reservoirs, canals, drainage systems,
conductor systems and networks, conduits and
sewers etc., amounting to 358.4 million pesos. Also
planned are a number of projects included within the
framework of the social programmes, energy
programme (installation of generators) and water
power programme.
51
The 'Pilón' reservoir
conductor, in eastern
Cuba.
The 'Nuevo Mundo'
Reservoir, Holguin
province.
52
CONSTRUCTION
Construction activity in Cuba has presented a more
stable picture during the last decade. There have
been considerable achievements in housing,
commercial and social construction, notably
refurbishment and upgrading of educational
establishments and hospitals, while new
neighbourhood outpatient hospitals have been
built, so as to move healthcare - including
specialized services previously available only at the
general hospitals - closer to the patients.In the last
three years, the specialized building firms have
completed a total of 1,634 projects, including 356
in the education sector, 466 for the health service,
24 tourist installations, 242 in the cultural sector,
145 for industry, 57 water utility works and
168,734 dwellings.
Major projects efficiently executed included: the
Latin American School of Medicine, the AntiDoping Laboratory, the international School of
Sport, renovation of schools and general and
outpatient hospitals in Havana, the Bani
polytechnic in the Dominican Republic, and the
installation of small-scale water mains in villages.
In the cultural sector, new centres have been
completed, premises have been adapted or
converted and new establishments have been built
nationwide for the training of arts instructors.
A programme launched in 2005 envisaging the
construction of around 100,000 dwellings annually
was developed with close participation by the
construction sector in terms of organization, advice
and production. It also involved a substantial
increase in capital investment in the facilities
needed to manufacture the related construction
materials.
Major investments in advanced-technology and
conventional equipment for developing materials-
53
Low-cost housing construction.
COMPUTING YOUNG CLUB:
Spaces for developing computing
skills within the comunity.
related techniques were designed to revive and
expand production in the construction materials
industry. The benefits have included savings in
imports of blocks, cement tiles, concrete,
aggregates and other materials.
At the same time, the Computing social programme
involved the construction of premises for young
people following this discipline, in every borough
and province in the country. Work continues on
adapting premises for university teaching as part of
54
the programme for making this available at
borough level throughout Cuba.
Works completed during the period 1996-2006
included various hotels up and down the country,
among them: Occidental Royal Ensenacho in Villa
Clara; the Playa Coco and NH Krystal Laguna in
Cayo Coco (Ciego de Avila province); plus
remodeling of the Hotel Parque Central in Havana.
Facade of the Château Miramar Hotel in Havana.
55
Lobby of the Parque Central Hotel in Havana.
56
Swimming pool at the Parque Central Hotel in Havana.
57
Side view of Havana's Panorama Hotel.
58
Swimming pool at the Panorama Hotel, Havana.
59
View of the Alameda Hotel in Varadero (Matanzas province).
60
Swimming pool at the Alameda Hotel, Varadero (Matanzas province).
61
Aerial view of the Occidental Royal Ensenacho Hotel in Villa Clara province.
62
Swimming pool at the Occidental Royal Ensenacho Hotel in Villa Clara province.
63
Front view of the Playa Coco Hotel, Cayo Coco (Ciego de Avila province).
64
Swimming pool at the Playa Coco Hotel, Cayo Coco (Ciego de Avila province).
65
Aerial view of the NH Krystal Hotel, Cayo Coco (Ciego de Avila province).
66
·
Rebuilding
of the old town, in the Habana Vieja
borough of Havana, under a wide-ranging cultural
programme developed by the Office of the City
Historian. This required the deployment of a highlyskill workforce, specialized in restoration works. This
district is a UNESCO World Heritage listed site.
·
Construction of marine causeways, notably the one
at Cayo Coco in Ciego de Avila province; at 48 km of
asphalt roadway, this is the largest and a work of first
importance for development of tourism in this region.
·
Enlargement
of existing and construction of new
airport terminals, for the benefit of both Cuban
travellers and foreign visitors.
·
Modernization
of thermoelectric power stations and
construction of gas-fired generating plants.
·
Rebuilding
of roads and motorways;
maintenanceand similar works.
road
·
Hospitals, schools, storage depots, dwellings, watersupply installations and other works in the public
interest.
The construction companies have formed several jointventure concerns with foreign capital, enabling the
introduction of equipment, new technology and
products, mainly for finishing operations, processes and
implementation of working methods that shorten
project timescales and improve building standards.
Progress in the planning, design and consultancy
branch equipped it to support a programme of
investment in biotechnology, development of tourist
hotels and other facilities. It has established an annual
cycle of work on various stages in the design of new
hotels, in the preparation of technical documentation
for the property construction programme, in some cases
working jointly with foreign concerns.
67
TOURISM
Since 1990, accelerating volumes in the tourism
sector have been the driving force of the Cuban
economy, contributing a substantial proportion of
the country's hard-currency revenues. It has been
a key element in the process of financial revival
that has taken place over the past 15 years.
The sector consolidated its trend of expansion
between 1996 and 2006, achieving highly
encouraging results that included the following
successes: doubling of the number of visitors; a
50% rise in gross income; and an increase of 60%,
in the number of hotel rooms, of which 72% are in
four- or five-star establishments.
Gross revenues from tourism rose steadily
between 1990 and 2000. In 2001 and 2002
however, volumes suffered the repercussions on
the industry of the September 11 attacks.
1 333
1 515
1 759
1 901
1 948
1 840
1 769
1 999
2 114
2 069
2 056
gross revenues 1996-2006 (US$m)
1996-2006 Ingresos brutos (MMUSD)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Sources: yNational
Statistical
Office and Ministry of Tourism.
Fuente: Oficina Nacional de Estadísticas
Ministerio
del Turismo.
68
In 2004, structural rationalization of the sector
improved, accompanied by enhanced
professionalism, quality and efficiency.
Promotion of the tourist trade during the period
under review has resulted in the creation of a large
number of jobs. Those working in the sector now
number some 200,000, or 9.0% of the total active
workforce.
Despite the reductions in 2005 and 2006, the last
three years produced record levels of income.
The 2 million visitors mark was passed in 2004
and has averaged above that level since; the total
for 2006 was 2,220,567 persons.
Between 1996 and 2006, tourist accommodation
capacity was increased from 26,878 to 43,521
VISITors 1996-2006 (thousands)
2 220
2 319
2 049
1 906
1 686
1 775
1 774
1 603
1 416
1 170
1 004
1996-2006 Visitantes (miles)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Fuente: Oficina Nacional de Estadísticas
y Ministerio
Sources: National
Statisticaldel
Office and Ministry of Tourism.
Turismo.
69
rooms, contributing directly to enhancement of
the tourism product.
As of the end of 2006, the composition by category
of Cuba's hotel accommodation was as follows:
hotel rooms 1996-2006
1996-2006 Habitaciones
43 521
41 878
41 584
40 122
37 908
36 806
34 743
32 260
30 899
26 878
27 394
AVERAGE ANNUAL GROWTH: 4,9%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Fuente: Oficina Nacional de Estadísticas y Ministerio del
Sources: National Statistical Office and Ministry of Tourism.
Turismo.
In addition to forming the first joint-venture
companies in this sector, Cuba adopted the world
practice of employing international hotel
Accommodation by category
ACCOMMODATION BY CATEGORY
273 hotels
21%
35%
2*
6%
22%
30%
3*
4*
46%
11
5*
26%
43 521 rooms
70
marketing and management chains. As of the end
of 2006, there were 32 joint-venture companies
operating in the sector, all but one in the hotel
trade, while 60 hotels with a total of 25,633 rooms
were being run under management agreements
with 14 international hotel chains.
The types of tourist activity supported are sun &
sand, ecotourism, health, nautical, recreational
diving and hunting.
Cayo Coco Beach.
Sector consumption of domestic production
materials and other supplies, replacing imports,
rose from 12.0% of the relevant total in 1990 to
65.0% in 2006.
71
TELECOMMUNICATIONS
The telecommunications sector has expanded
enormously during the last 10 years. Apart from
its favourable technical performance, it has
produced significant benefits, both economic and
social.
A process of capital investment has enabled public
telecommunication services to be expanded as
well as those for residential and business
subscribers. As from 2005 to 2006, within the
framework of modernization and expansion
initiated with the Cuban Telecommunications
Company, S. A. (ETECSA) around 1,060 million
dollars have been invested.
The service is among those that were affected by
the 8 hurricanes that hit Cuba between 2001 and
2005. Substantial losses were registered due to
the down of a large number of telephone poles.
Considerable efforts were required nationwide to
re-establish telephony and other
communications.
By 2006, a total of 982,800 telephone lines had
been installed, most of them digital. By the end of
that year, 92.1% of the national network had been
digitalized.
Residential lines entering service grew
substantially between 1996 and 2006, exceeding
743,000 by the end of that period. The
corresponding rise in telephone density was from
32 lines per 1,000 inhabitants in 1995, to 101 in
2006.
The public telephone service was also revived
during the period considered. The installed
population of telephones, most based on modern,
digital technology, has grown by a factor of six in
the last ten years. A rural telecommunications
system has also been introduced for settlements of
72
Gráfico 7
tELEphony
TELEFONÍA
Digitalization nationwide
(%)
Digitalización
nacional (%)
Density - lines
per 1,000
Densidad
telefónica
porinhabitants
1000 habitantes
100,0
120
90,0
100
80,0
88
Digitalization %
70,0
75
60,0
80
64
59
50,0
44
40,0
30,0
60
51
33
32
35
39
40
20,0
Density - lines per 1,000 inhabitants
101
20
10,0
7,0
12,9
35,4
0,0
1996
1997 1998
39,8
51,7
1999 2000
80,9
69,5
75,9
2001
2002 2003
85,3
89,8
92,1
0
2004 2005 2006a)
(a) Preliminary
less than 300 souls; a total of 250 new telephone
services have been established in these areas.
The success rate for incoming international calls
improved between 1996 and 2006 from 34.4%
(implying an average of around 3 attempts per call)
to 55.5% (an average of less than 2).
Mobile cellular telephony services, aimed
primarily at the business community, also
expanded in terms of coverage and capacity,
including extension of such services to various
provinces.
73
Between 1995 and 2006, under an expansion and
modernization plan launched by the national
'phone company ETECSA, investment in the
sector totalled some 1,060 million dollars.
A declining trend of recent years in investment per
line has been achieved primarily by the adoption of
new wireless technology that reduces the cost of
infrastructure expansion, by optimizing
investment and by negotiating down the prices
paid to the technology suppliers.
The launching by the national phone company of
its Telefonía Fija Alternativa (TFA - alternative
fixed telephony) system in 2005 enabled a better
geographical distribution of investment and
speeded up deployment of new phones, notably in
problematic rural districts distant from the main
population centres. This system uses table-top
cordless instruments, similar to conventional
telephones, with limited traffic, which are
connected via a cellular network and
consequently do not need cabling. Technical,
business and financial studies of the uses of the
'TFA' system are currently underway, with a view
to developing a plan for installing some 2 million
phones over the next five years.
In 2004, the national fibre optic network for
telecommunications and data transmission,
stretching from Pinar de Rio to the east coast, was
completed and put into service.
An agreement has been reached with Venezuela
for the laying of an undersea fibre optic cable
1,552 km in length, with a transmission capacity
of 160 gigabytes per second –a thousand times
greater than that currently available via Cuba's
current satellite– based Internet connection.
Radio and television broadcasting have also
played a decisive role in the development of
telecommunications. Cuban television has been
enriched with the addition of:
74
·
two educational channels;
·
Cubavisión Internacional, which broadcasts
around the clock;
·
new local TV stations at borough level and local
news desks up and down the country; and
·
the Canal Habana channel, as well as upgrading
of the local TV stations and the Cubavisión and
Tele-Rebelde channels.
The two educational channels have proved their
worth in contributing to raising the quality of
education at its various levels. They are also a
vehicle for enhancing cultural standards generally
among the Cuban population: the "University for
All" broadcasts lectures by highly-qualified
teachers on a variety subjects that include
languages, ballet, meteorology, dance, geography
and history of art.
Cubavisión Internacional, which broadcasts by
satellite worldwide, and Radio Habana Cuba,
which broadcasts in nine languages and to several
latitudes, have upgraded and expanded their
coverage, and have come to represent Cuba's
window on the world.
Key events of the last three years have included
Cuba's participation in Empresa Televisora de Sur
(TELESUR), which was established within the
framework of the 'Bolivarian Alternative for the
Americas' (ALBA) scheme; the other participants
are Venezuela and Uruguay.
TRANSPORT
Developments in the transport sector have been
particularly significant in the case of international
aviation.
75
A substantial programme of investment in
aviation, launched in 1995, covers extension of
existing and construction of new airport terminal
buildings, with a view to increasing passenger
capacity and raising service quality, while new
airports have been built in areas of major interest
as tourist resorts. Cuba now has 26 airports, ten
of which are international, sited in the primary
tourist-destination areas.From the time of
recognizing the tourist industry as one of the
driving forces of the economy and the introduction
of a national strategy for developing it, civil
aviation has adopted a policy of flexibility in
promoting airline operations in Cuba, and of
facilitating growth in air traffic and supporting the
travel industry.
The efforts expended and a satisfactory business
performance on the part of civil aviation are
reflected in a rapidly growing contribution to the
state's hard-currency revenues.
The principal investments in this industry in the
period 1996-2006 are summarized below:
·
Construction in Havana during 1997 and 1998
of the largest terminal area in the country, with
a capacity of 1,500 passengers per hour and 3.0
million passengers per year; the facilities added
include a new access point from the city. This
airport has four terminals, three of which are
equipped with the latest passenger-care and
aircraft handling facilities.
·
Construction of modern terminals at Camagüey
and Holguin airports in 1996, each
capacity of 600 passengers per
modernization of existing facilities
airports in Manzanillo, Ciego de
Cienfuegos and other resort areas.
with a
hour;
at the
Avila,
·
In 1997, extension of the terminal at Varadero
Airport, to cope with a rise in passenger traffic of
76
Waiting area of Terminal 1
(national flights) at José Martí
International airport, Havana.
Departure lounge in Terminal 3
(international flights) at José Martí
Front view of José Martí
77
Departure lounge in Terminal 3
(international flights)
at José Martí International
airport, Havana.
20% per year, reflecting the rapid development
of this tourist resort. This airport receives one of
the heaviest influxes of passengers who travel
directly to the resort located in the vicinity.
·
Completion in 2002 of the Jardines del Rey
Airport in Ciego de Avila province, with a
Ignacio Agramonte Airport
in Camagüey province.
78
Front view of Frank País Airport,
Holguin province.
Passenger arrivals at Frank País
Airport, Holguin province.
Sierra Maestra Airport,
Manzanillo.
79
Runway at the Juan Gualberto
Gómez Airport, Varadero,
Matanzas province.
capacity of 60 flights per week and 600
passengers at peak times. The project cost US
$32m, financed from abroad.
·
A new national and international area at
Santiago de Cuba airport, with extension of the
runway to 4,000 metres.
Passenger check-in at the Juan
Gualberto Gómez Airport,
Varadero, Matanzas province.
80
·
Installation of new navigation-aid and en-route
monitoring systems. Additional facilities for
aircraft provisioning, maintenance, repair and
security. Construction of the control tower at
José Martí International airport 46 meters up,
enhancing the efficiency and safety of air-traffic
control.
Facade of the Antonio
Maceo Airport at the Hero
City of Santiago de Cuba.
·
Increasing flight safety by installing modern
radio navigation-aid systems, converting from
manual to radar control and automating the
various information processes.
·
Construction and assimilation of newtechnology facilities for receiving, distributing,
storing and supplying aviation fuel at the
principal airports.
A programme of further investment in improving
the airport infrastructure is currently at the
planning stage.
While still not entirely meeting the requirements of
the Cuban travelling public, the passenger
transport segment has improved its financial
results and has reported higher numbers of
passengers per year.
81
Special equipments
area “José Martí”
International airport
Terminal No. 3.
Interprovincial passenger transport has improved
considerably. New coaches coming from China
have assigned to regular routes terminating in the
country's resort areas. Similar journeys are
undertaken by fleets of excursion coaches,
involving visits to places of interest or to national
or international events.
Havana's Cruise Terminal renders sea services to
the cruise liners arriving in the country, which is
closely linked to Cuba's tourist development and
the growth it has attained in recent years.
A project of first importance to goods transport
was the construction in 1996 of the Havana
Container Terminal, for the loading and unloading
of container ships and marshalling of
containers.Sustained growth of the economy has
been associated with constantly increasing traffic
at the terminal, which has a modern
infrastructure, highly-specialized equipment and
a functional organization that ensures efficient
82
An articulated bus, part of the 'METROBUS'
transport system.
An 'ASTRO' coach, part of the inter-provincial
and tourist transport service.
83
handling, without losses or breakdowns of the
containers delivered by the shipping lines here.
The terminal also has nearby access to the rail
system, providing a cost-effective means of
transporting containers to the provinces.
In the freight industry, a programme has been
implemented for refurbishing the rail sector.
Between 2005 and 2006, repairs were carried out
on a total of 87 locomotives and 2,634 freight cars
for carrying food, cement and other building
materials, cereals, fuel and other goods.
In 2006, Cuba imported 12 Chinese locomotives.
These enormous machines are equipped with
Unloading containers at the Havana Container Terminal.
84
Locomotives imported from China for freight services.
85
highly innovative communication and transit
safety systems. Together with the workers' efforts
in refurbishing the existing rolling stock
(including locomotives), these acquisitions were a
milestone in revival of the sector and also
represent a substantial saving of energy. Other
purchases included flatbeds and semi-trailers for
transporting food in bulk and raw materials for
cement production.
The ports continued to operate efficiently. Total
cargo throughput in 2006 is estimated at over 3.0
million tons, with an average daily clearance more
than 2.6 times greater than before the measures
were taken. Vessel demurrage charges have been
cut by 71.4%, although delays in returning
containers still persist.
In 2006, the container-transport fleet was
repaired and a programme of purchases of
specialized container-handling equipment got
underway. Priority was given to machinery for use
in the ports or for repairing moorings and other
items involved in coastal shipping.
Container carrier
86
PUBLIC HEALTH
Cuba's national health service is completely free
and pays special attention to preventive medicine.
National policy on health consequently addresses
not only medical activity but also safeguarding of
the environment and natural resources, raising of
hygiene and sanitary standards and protection of
workers and the elderly.
An indication of the state of health and sociocultural development of the population is provided
by the infant mortality rate. This stood at 5.3 per
1,000 live births at the end of 2006, the country's
lowest rate ever; it places Cuba among the top 30
in the world as regards this key public-health
barometer. Among the Americas, only Canada has
a lower rate.
These results accompany strenuous efforts to
preserve the health and wellbeing of mother and
child. The maternal mortality rate in 2006 was 4.9
per 10,000 live births; together with a programme
of vaccinations against 13 diseases in the first year
of life, the introduction of modern paediatric and
neonatal technology and progress in the combined
efforts of the Wiliam Soler heart institute and the
National Genetics Centre, this has placed Cuba
among the world's leading nations in this field. Life
87
Cuba: infant mortality rate
(per 1 000 live births)
1996
7,9
1997
7,2
1998
7,1
1999
6,4
2000
7,2
2001
6,2
2002
6,5
2003
6,3
2004
5,8
2005
6,2
2006
5,3
Source: National Statistical Office.
expectancy in Cuba is currently 78 years,
according to WHO figures, a statistic comparable
with those of the world's most industrialized
countries.
Primary care is a key element of the national
health system and is based on the family doctor
and nurse programme. There are currently 94,286
doctors, implying a ratio of one doctor per
159 inhabitants (a world-beating ratio), as well as
10,554 dentists and 89,462 nursing personnel.
Rural medicine has not been neglected. Medical
care is available in the remotest corners of the
country.
The system also has over 12,000 personnel
specializing in comprehensive rehabilitation.
These include some 10,000 young people who
have been under training since 2004. During
2006, over 1.5 million Cubans were treated in
rehabilitation facilities; these are equipped with
88
advanced technology and are available even to
people living in the remotest areas.
A very substantial investment programme has
addressed remodelling of existing and
construction of new general hospitals, outpatient
hospitals, family medical practices and the
nationwide network of pharmacies and opticians'
practices, all equipped with leading-edge medical
technology.
A set of special programmes has been introduced
with a view to promoting service excellence, in
areas such as mother and child, prevention of
infectious diseases and non-infectious chronic
diseases, health in the Third Age, breast cancer,
cervical cancer and AIDS.
A massive research project that studied all those
with mental retardation or other handicaps in the
nation's 169 boroughs was conducted, covering
psycho-social, psycho-educational, clinical and
genetic aspects. This exercise is believed to be
without precedent anywhere in the world and will
benefit not only Cubans but many other people in
our hemisphere.
As of the end of 2006, international medical
cooperation involved the services of 30,577 Cuban
health-sector professionals deployed in 71
countries.
In the spirit of solidarity which is our hallmark,
and within the framework of the Bolivarian
Alternative for the Americas (ALBA), Cuban
medical workers provide their services free of
charge in the remotest, poorest parts of
Venezuela, where over 17 million people have been
treated under the Misión Barrio Adentro
programme by 24,644 Cuban medical co-workers.
Together with the Venezuelans, these worked in
270 Comprehensive Diagnostic Centres, 600
Comprehensive Rehabilitation Wards and 11
High-Technology Diagnostic Centres. Also, a large
number of young Venezuelans are studying
comprehensive general medicine in Cuba, while
89
another group is following a comprehensive
community care course in their home country,
guided by doctors working in the Misión Barrio
Adentro programme.
As part of ALBA, Cuban doctors have even
travelled to Bolivia, where some three million
Cuban medical collaborator at Republica Bolivariana de Venezuela.
90
patients (nearly 30% of the Andean population)
were treated in less than a year.
ALBA most strongly humanistic
program.
Operación Milagro (Operation Miracle), one of
ALBA's most strongly humanistic programmes, is
committed to treating 6 million people from Latin
America & the Caribbean with eye diseases in a
single decade.
Since 2004, sight has been
restored to 518,808 people under the programme.
To equip itself for the task, Cuba has had to extend
existing and create new facilities in over 20 clinics,
all equipped with the latest technology and
employing highly-qualified personnel. The
programme has been extended to other countries
with the aim of meeting the patients' needs at less
cost. There are currently 13 eye clinics in
Venezuela, 11 in Bolivia (where Argentinean and
Peruvian patients have also been treated); in
Ecuador, over 10,000 patients have already had
surgery.
The formation in September 2005 of the
internationalist Henry Reeve Contingent, with the
aim of responding in a spirit of solidarity to natural
disasters and similar large-scale emergencies,
91
further enhanced the honour of the Cuban
medical service. The presence of 688 Cuban coworkers in Guatemala helping to deal with the
flooding emergency; in Pakistan, in the wake of the
earthquake disaster, where 2,566 Cuban doctors
and technical personnel were deployed, 1,743,000
patients were treated and 14,000 operations were
performed under very difficult conditions. In the
case of Pakistan, Cuba provided 73% of the total
medical aid the country received. Other
destinations included Indonesia and Bolivia.
Outside the American continent, Cuban medical
professionals travelled to China to provide their
services at the China-Cuba Friendship Eye
Hospital, which was opened in December 2006 in
Qinghai province, some 800 miles to the southwest of Beijing, and where 34 Cuban specialists
are now working. This institution is only one of
several the two countries plan to establish in
China and operate on a cooperative basis.
The setting up of the Latin American School of
Medicine has been responsible for making many
dreams come true. It offers the opportunity for
medical training to the future guardians of health
and life in Latin America and the Caribbean. Its
current roll of 8,637 students come from all over
our region and from Africa as well.
Scientific/technological research has played a
decisive role in the development of Cuba's public
health service. Key institutions in this context
include the medicine-producing laboratories, the
CIDEM medicines research and development
centre, the research centres in Havana's complex
of scientific establishments. These have developed
vaccines and medicines that have spread beyond
our borders and constitute a guarantee of life for
the Cuban population, while also representing an
additional source of hard-currency revenues.
92
Heber Nem-L biological nematicide for
plants
THE MOST REPRESENTATIVE MEDICAL PRODUCTS
DEVELOPED IN THE LAST 10 YEARS BY THE RESEARCH
CENTRES IN HAVANA'S COMPLEX OF SCIENTIFIC
ESTABLISHMENTS
Vaccines:
Meningococcic VAMENGOC B-C.
·
Anti-meningococcic human immunoglobulin.
·
Hepatitis B vaccine innovations.
·
Diphtheria/tetanus/pertussis (DTP) and Diphtheria/tetanus (DT).
·
Combined vaccine against Haemophilus influenzae Type B, a
·
disease that kills 500,000 children a year worldwide, developed for
the first time anywhere with a synthetic antigen for human use.
Pentavalent: (4+1 DPTHepB+Hib).
·
Vas-SPIRAL: trivalent vaccine against leptospirosis for human use.
·
VALERGEN-DP, VALERGEN-DS and VALERGEN-BT: therapeutic
·
vaccines administered by subcutaneous injection to patients with
asthmatic and other respiratory allergies.
EGF:
·
anti-cancer specific active immunotherapy with molecular
vaccine formulations.
Anti-cancer specific active immunotherapy with molecular vaccine
·
and idiotypical and anti-idiotypical monoclonal antibodies (AcMs).
Other vaccines for which there is no immuno-prophylactic measure.
·
Biotechnology products:
Liquid Alpha interferon without albumin (Heberon Alpha)
·
in various
formulations.
TheraCim h-r3:
·
Cuban-patented product for treating patients with
tumours of the head and neck.
Colirio IFN Alfa 2b recombinant (Heberon Alpha R 0.5 M).
·
IFN
Gamma (Heberon Gamma R 0.5 M) for treating juvenile rheumatoid
arthritis.
THE MOST REPRESENTATIVE MEDICAL PRODUCTS
DEVELOPED IN THE LAST 10 YEARS BY THE RESEARCH
CENTRES IN HAVANA'S COMPLEX OF SCIENTIFIC
ESTABLISHMENTS
(Cont.)
Liquid recombinant streptokinase without albumin.
·
Cuban-patented
anti-thrombolytic.
Citoprot-P.
·
Cuban-patented formulation based on epidermic growth
factor for the treatment of diabetic foot.
Cuban advanced medicines:
Cariodermina. Placental factor for treating psoriatic crises.
·
Hebritro. Recombinant human erythroproietin for treating anaemia
·
caused by chronic renal insufficiency, anaemia among AIDS patients
and among cancer patients undergoing chemotherapy.
Herberquinasa.
·
Can be used in cases of acute myocardial
infarction, deep venous thrombosis and pulmonary embolism.
PPG. Polycosanol, indicated as a cholesterol reduction treatment.
·
Quitina. Cicatrizing ointment.
·
Ribofen. Disodium lobenzarit for treating rheumatoid arthritis.
·
Other products:
16 diagnostics and ultra-micro analytic system (SUMA).
·
Biomaterials. A range of products including coralline hydroxyapatites
·
Over 90 generic medicines.
·
Magnetic stimulator for treating pelvic and abdominal pain.
·
ANGIODIN PD-300 digital plethysmograph, a very useful aid
·
in diagnosing peripheral vascular disorders.
94
Medicines developed
in Cuba.
The CIM molecular immunology centre has developed
a vaccine against lung cancer which meets First World
technology quality standards. It is based on the
epidermic growth factor (EGF), a protein intimately
involved in cell growth. The preparation has been
subjected to clinical trials in Cuba, and has shown a
clearly beneficial effect on patient survival rates.
An agreement for transfer of biotechnology in this field
has been signed with CancerVax Corporation in
America, with a view to cooperative manufacture of
anti-cancer vaccines.
Cuba's CIGB genetic engineering and biotechnology
centre has been working on recombining DNA,
transgenesis of animal and plant cells, generation of
monoclonal antibodies and other leading-edge
technologies.
BIOCEN, the national bio-preparations centre, has
been producing monoclonal antibodies, diagnostic
reagents and other lines in Cuba's range of
biotechnological and pharmaceutical products.
95
Testing vaccines at the CIGB
genetic engineering
and biotechnology centre.
Modernization works on establishments operating in
this field included those at a haemoderivatives plant
with a capacity of up to 200,000 litres, employing new
technology for achieving coagulation factors VIII and
IX (treatment of haemophiliacs), as well as conversion
of an aerosols plant previously using gases damaging
to the ozone layer.
Testing vaccines at the CIGB genetic
engineering and biotechnology centre.
96
Cuba and China have entered into substantial
agreements for the setting up of joint-venture
concerns in China to develop the CIM's and the CIGB's
products and to manufacture neurotechnology
products.
Development activity in the field of biotechnology has
involved around 40 multi-centre clinical trials to
evaluate anti-cancer and other preparations, with the
participation of hospitals and family doctors'
practices, for patients with cancers affecting the head,
neck, lungs, breasts, prostate, oesophagus and colon,
and for sufferers of hepatitis B and C, diabetic foot and
other conditions.
Cuban medicine's other successes include performing
surgery with hypnosis or acupuncture, eliminating the
risks associated with conventional anaesthesia.
Modern technology at the service of science
97
EDUCATION
Education has been one of the most privileged sectors
in recent years. Despite the scarcity of financial
resources, the state allocates a large slice of the
national budget to the development and enhancement
of the education system.
Cuba has some 9,000 primary schools, attended by
every child in the relevant age group. All reach basic
secondary level and 99.0% go on to the early stages of
higher education. This is possible because the
principles of total coverage and of free education
extend to every region of the country.
Physically handicapped and mentally retarded
children capable of learning through special education
have been a constant focus of attention in post-
School age children using toys
as learning aids.
Primary schoolchildren using
computers as learning aids.
98
Revolution Cuba. In the present academic year
(2006/07), 44,562 such children are enrolled. The 410
special schools adopt innovative teaching methods for
children including the 31,305 with mental
retardation, 4,900 with retarded psychic development,
446 with defective vision and 1,151 deaf or hard-ofhearing pupils.
One of the main achievements in the decade under
review was a Study as Work scheme, which took the
name 'Tarea Alvaro Reynoso'. This was launched in
2002 in response to a situation in which Cuba was
obliged to close down several sugar refineries, in
conditions of rising fuel prices and sugar-cane crops
suffering the effects of severe drought.
Refinery workers affected who had no other
employment opportunities at the time of their
relocation were given the option of taking a course of
study paid at the average rate they received in the
previous harvest period. The courses included
secondary-level schooling, six at first-degree level (in
accounting & finance, economics, agricultural
engineering, socio-cultural studies, law and physical
education), as well as postgraduate modules for
professionals.
In 2005, there were 109,289 workers enrolled in this
programme, fruit of post-revolution policy, some
adopting the Work as Employment option, others
combining study and work and the rest joining classes
at the end of the harvest.
The courses are held at 265 establishments, including
99 universities; there are 4,140 classrooms, while the
teaching staff number 5,266 and are mainly from the
sugar sector itself.
Cuba has over 8,000 holders of PhDs. Every year,
some 400 doctoral thesis are presented to the
55 national academic panels that are the forums for
defence of such papers.
An event of recent years of first importance to
educational science and having a major social impact
99
has been the development of a literacy-teaching
programme called "Yo, si puedo" (Yes,
I can!), whose implementation has resulted in teaching
over two million people in 15 countries worldwide to
read and write.
The cost of this programme is about a third that of
other methods and is available to any country on
request. It is alphanumeric in that it associates
phonemes with numbers and is accompanied by
audiovisual programmes. It has been produced in
Creole, Portuguese and native South American
languages as well as Spanish. It won UNESCO's 2006
King Sejong Literacy Prize.
Even children with such problems living in remote
rural areas are guaranteed an education, under a
Pupil-teacher ratios at the various
levels of education in the
academic year 2006-2007
(in percentage)
RELACIÓN ALUMNO-PERSONAL
DOCENTE POR NIVEL DE
EDUCACIÓN, EN EL CURSO 2006-2007 (en porcentaje)
Adultos
Adults
18,8
4,6
Special
Especial
Technical
Técnica& yprofessional
profesional
11,0
Advance
secondary
Preuniversitario
10,2
Secondary
Secundaria
básica
9,8
Primary
Primaria
10,2
Pre-school
Preescolar
14,0
Kindergarten
Círculos
infantiles
14,7
TOTAL
11,0
0
5
10
15
20
Source: Ministry of Education.
100
scheme that deploys roving teachers who visit the
homes of those unable to go to school, or who teach in
the clinics or hospitals where the children spend their
days.
In the academic year 2005/06, pupils and students
graduating from primary, secondary, special and adult
education totalled 480,506.
graduates by discipline
Academic years 1995/96 - 2005/06
Degree
Graduates
Education sciences
80 196
Medical sciences
59 665
Technical sciences
29 979
Physical education
16 284
Economic sciences
14 760
Social sciences
11 279
Agricultural sciences
9 865
Natural sciences
7 937
Distance learning
3 108
Arts
1 359
Total
234 432
Source: Ministry of Education.
101
SPECIAL SOCIAL PROGRAMMES IN THE
EDUCATION SECTOR
Transformation of teaching regimes.
·
Maximum pupil-teacher ratios of 20:1
in primary and 15:1 in secondary schools; improvements in school meals;
audiovisual aids and computers in the classroom. In the rural school,
electricity supply via solar panels. According to recent surveys, learning
levels have increased - in the cases of mathematics and Spanish by
factors of 2.2 and 1.5, respectively
Audiovisual aids.
·
Maintenance is performed on some 250,000 items of
equipment installed in Cuba's schools and colleges and essential to the
running of the audiovisual programmes that are products of post-revolution
educational policy.
A programme to open higher education to anyone enables large-scale
·
enrolment based on replication of university teaching facilities within every
borough. There are currently 480,000 students following a total of 47
courses in the humanities, economics, computing and other technical
sciences, medical sciences, education sciences, physical education and
other sports-related disciplines.
Upgrading of the network of public libraries, as an essential adjunct to
·
universal access to higher education.
Computing courses continue to be offered at the 602 Joven Club centres
·
up and down the country, from which some 200,000 people graduate every
year, including 10,000 handicapped persons. The centres are offering new
services nationwide, including extension of hours to a round-the-clock
basis and access to Cuba's Intranet, whose sites now number some 1,500.
The programme of comprehensive advanced education, part of post·
revolutionary Cuba's efforts to extend access to higher education and
thereby create better job prospects for an increasing number of citizens,
continues to produce benefits. Around 9,000 of Havana's young people
enrolled for the academic year 2005/06. This is among the programmes
with the greatest social impact, given the golden opportunity it offers to
those who, for various reasons, did not move on to higher education.
102
CULTURE AND THE ARTS
The last ten years have seen major dissemination
and substantial development of culture and the
arts in Cuba. It has been a period of consolidation
of the conditions for development of artistic and
literary expression.
Book production amounted to 85 million copies in
2006, a record total that compares with 50 million
in 1989. Since 2000, some 1,900 titles have been
published, with a total of almost 2 million copies of
works of various kinds - fiction, poetry, history by Cuban authors.
This activity was complemented by "The
International Book Fair", a programme of
dissemination that has covered the whole country
since its 10th edition in 2001. The fair has proved
extremely popular; its headquarters is in Havana's
San Carlos de la Cabaña fortress .In 2000, visitors
to the Fair numbered 150,000; in 2006, the
corresponding total was 5,637,456. The number
of books sold increased during the same period
from 300,000 to 5,584,882.
Book fair, Havana's San Carlos
de la Cabaña fortress.
103
In the world of music, substantial programs
implemented during the last three years have
included the formation of symphony orchestras,
choral music and the rescue of Cuba's musical
heritage, as well as setting up municipal bands
which have traditionally had a significant role in
community cultural life and consolidate the
strategy adopted by the Cuban Institute of Music.
The stage arts and painting and sculpture also
played an important role; in the case of the former,
the conditions for production were enhanced by
Havana's Festival of Theatre and similar events,
while painting and sculpture received greater
exposure through exhibitions, festivals, showings
and gallery displays at home and abroad. The high
point was the holding of the ninth Havana Biennial,
attended by over 400 Cuban and foreign artists.
An event that marked a historic moment for Cuba
and its culture in 2006 was the celebration jointly
with the Guayasamin Foundation of Homage of
Roberto Fabelo, leading light
of Cuban art, winner of the
national painting and sculpture
award in 2004.
Universal Culture on the occasion of the 80th
birthday of Commander-In-Chief Fidel Castro.
This was attended by 1,440 people from 81
countries and included galas and concerts that
demonstrated the richness of Cuban culture,
104
especially the productions related to the Memoria y
Futuro: Cuba y Fidel International Colloquium.
The year was also characterized by intensifying
cultural exchanges both at home and abroad.
Notable in this context were the Cubadisco
International Record Fair dedicated to China, the
Festival of New Latin American Film-making, the
Ballet Festival, the Bolero Festival, exhibitions of
painting, ceramics and prints, as well as festivals of
theatre.
Cuba's National Ballet (BNC) is one of the best known
dance companies internationally. It has been
directed since its creation by prima ballerina
assoluta Alicia Alonso.
Portrait of the Commander in
chief by ecuatorian painter
Oswaldo Guayasamin.
A key institution in the promotion of the arts,
literature and social sciences in Latin America is the
Casa de Las Americas, founded in 1959, which in
A Roberto Fabelo painting.
105
Ballet International
Festival “La Silfide”
Cuba’s National Ballet.
García Lorca Theater
Cuba’s National Ballet.
recent years has brought together distinguished
artists and celebrities of all these important
expressions of art and culture.The formation of
musical ensembles and dance troupes, as well as
promotion of new musicians, singers, actors,
106
Frank Fernandez, the celebrated pianist
with a high international reputation.
Chucho Valdés, a distinguished
musician with talents
recognized at international level.
painters and dancers, have been a feature of
Cuba's cultural scene in recent years. The Latin
American School of Film-making, which has
operated in Cuba for many years, has also
contributed to the formation of new artistic values
in the region.
Cuba's other cultural assets include nine sites
classified as part of the world's cultural heritage:
107
Cienfuegos Old Town.
108
Archeological
landscape: the first
coffee plantations in
south-east Cuba.
109
Viñales valley,
Piñar del Rio province.
110
San Pedro de la Roca castle,
Santiago de Cuba.
111
Trinidad Old Town and the
Valle de los Ingenios.
112
Desembarco del Yate Granma
national park.
113
Habana Vieja Old Town,
its system of colonial fortifications.
114
Habana Vieja Old Town places.
115
Alejadro Humboldt national park
in the Moa, Baracoa massif
in eastern Cuba.
116
Intangible heritage: the Tumba
Francesa production La Caridad
de Oriente (Santiago de Cuba).
117
SPORT
Sport is a right of the entire Cuban population.
With a view to making this premise a reality, great
efforts have been expended in promoting mass
participation in sporting activity by people of all
ages.
In the last ten years, Cuban sport has produced a
large number of world-class athletes, a fact
reflected in its status at the head of the medal table
at the Central American & Caribbean Games and in
second place in that of the Pan-American games,
which position it has held for over
30 years. It has also participated in the Olympic
Games, where it has always returned medal
performances comparable with those of the most
industrialized countries.
Yipsi Moreno.
Yoanka González,
cycling world champion.
118
In 2002, the Olympics of Cuban Sport were
launched, as the primary opportunity for the
country's sportsmen and coaches to demonstrate
their skills and competitive spirit. The second
edition of the games was an occasion that
strengthened ties between the peoples of Latin
America & the Caribbean, by virtue of participation
by various countries of the region. The third edition
was attended by a record 4,918 athletes including
1,440 foreign participants from 20 countries.
Some important performances were recorded by
both Cuban and foreign athletes.
Iván Pedroso, long jump champion.
In the summer of 2003, Santo Domingo was host to
the Cuban delegation at the 14th Pan-American
Games. The Cuban contingent of 405 participants
beat the Winnipeg '99 tally by winning 72 gold
medals, 41 silver and 39 bronze -152 in all.
Women's volleyball team.
The quality and strength of Cuba's sports
movement was also demonstrated at the Athens
Olympics in 2004, in competition with athletes
from highly-industrialized countries, by a medal
tally of 27: nine gold, seven silver and eleven
bronze.
119
In 2005 the country held the first sports games within
the framework of the Bolivarian Alternative for the
Americas (ALBA), where 1,038 sports men and
women took part, as well as 850 athletes (among
them, 624 Venezuelan ones) visiting us, who took
part in 31 sports disciplines and in other 7 non
competitive sports.
OLYMPIC GAMES
A t l a n t a 1996
Place
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
United States
Russia
Germany
China
France
Italy
Australia
Cuba
Ukraine
South Korea
Poland
Hungary
Spain
Romania
Holland
A t e n a s 2004
S i d n e y 2000
Place
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
United States
Russia
China
Australia
Germany
France
Italy
Holland
Cuba
Great Britain
Romania
South Korea
Hungary
Poland
Japan
Place
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
United States
China
Russia
Australia
Japan
Germany
France
Italy
South Korea
Great Britain
Cuba
Ukraine
Hungary
Romania
Greece
Source: Instituto National Institute of Sports, Physical Education and Recreation.
Wrestling: one of the sports which
contributed with a large number
of medals during the last decade.
120
Yurisel Laborde,
78 Kgs world champion.
In July 2006, Cartagena played host to the Central
American & Caribbean Games. The Cuban
delegation of 524 athletes took first place at the
event, winning 285 medals: 138 gold, 86 silver and
61 bronze.
In 2006, Cuba resisted fierce political pressures and
participated in the first World Baseball Classic in the
United States. The title of runner-up gained by the
Cuban team was recognized as a real feat, it having
beaten strong teams on the way to the final of this
elite championship. The result demonstrated once
again the strength and quality of post-revolutionary
Cuba's sporting movement.
In the last decade, the Cuban sports system has
fulfilled an important role in developing and
consolidating sport in various parts of the world.
The presence of over 15,000 professionals giving the
benefit of their experience in 106 countries has
borne fruit, as demonstrated by the results in highlevel competition obtained by foreign athletes
trained by Cuban technical personnel. As of the end
of 2006, there were 5,846 Cuban co-workers
providing their services in the world of sport,
physical education and recreation.
Ledi Frank Balceiro and Ibrahim Rojas
outstandig kayak athletes.
A more representative example of internationalism
in sport is provided by the Barrio Adentro program
being implemented in various Venezuelan states
with the participation of Cuban experts.
121
These results reflected enhancement of the sports
education system. The present roll of students
following a degree course in physical education
numbers some 60,000, at 240 university-level
teaching centres across the nation's 169 boroughs.
Other relevant developments included the founding
of the International School of Physical Education &
Sport, attended by 1,202 young people from various
countries. Courses have already been completed by
810 students, contributing to professional
instructor training needs in several underdeveloped
countries.
Cuba, runner-up in the first World
Baseball Classic.
Cuba allocates substantial funding to adding to and
maintaining its sports infrastructure. Its
installations are equipped with modern facilities
and gear, to enable the country's sportsmen to train
and compete effectively. As of the end of 2006,
functioning sports installations numbered 6,036
nationwide.
The setting up of a modern anti-doping laboratory
has been of considerable benefit to the development
of sport and to implementation of the national antidoping programme. Since its inauguration in 2004,
it has conducted a total of 9,426 tests. It is
accredited by the competent international
institutions and its work is recognized by various
international sports federations.
122
FINANCIAL SERVICES
During the last decade, the changes that have
taken place in the economy have been accompanied
by reorganization and functional restructuring of
the Cuban banking and financial system, and
review of its foreign monetary, financial and credit
relations.
The associated legal framework is
contained in Decree Laws 172 and 173 of 1997,
which define, respectively, the powers and
functions of Banco Central de Cuba (BCC) and of
the banks and non-banking financial institutions.
Throughout this period, a process of extending and
diversifying the financial services provided to the
public and the business community has led to a
much more flexible, efficient and homogeneous
system, capable of meeting the needs arising from
development of new ways of structuring the
country's internal and external economic relations.
BCC was formed in May 1997, to take on the basic
central bank functions, as part of the creation of a
two-tier banking system comprising BCC and a
group of banks and non-banking financial
institutions.
Milestones in the development of the national
banking and financial system during the period
1996-2006 included:
•
The establishing of a group of commercial banks
and an assemblage of non-banking financial
concerns, as well as the licensing of
representation offices in Havana of 17 foreign
financial institutions.
•
The introduction
of over 16,000 PCs and other
modern data processing facilities as part of a
programme to modernize the banking system.
Facade of Banco Central de Cuba.
123
•
The operation from 1997 onwards of a network of
ATMs (automatic teller machines) throughout the
country.
•
The progressive
issue of debit cards by all the
banks in the system, enabling the cardholder to
carry out payment transactions of all kinds,
including those of social security contributions.
The service has been extended to permit payment
of electricity, water and telephone bills.
•
The staging of numerous courses and seminars for
personnel throughout the national banking
system. Subjects covered include micro- and
macroeconomics, monetary policy, banking
supervision, data processing, English language,
and others.
•
The introduction
of new accounting systems
within the banking system.
•
The promulgation of strict regulations to prevent
involvement by the banking and financial system
in fraudulent or money-laundering operations.
•
The formulation
of new supervision regulations
based on the Basel Principles of Effective Banking
Supervision.
•
The setting
up within BCC of a fully automated
Credit Risk Central Information Division, to
evaluate non-performing loans across the system
and recommend remedial measures.
•
Increased
use of bills of exchange, promissory
notes and cheques within national borders.
Adoption of these instruments facilitates
collections on the due dates, making a decisive
contribution to improving discipline in the
financial dealings between firms.
124
Automatic teller machine
•
Development
of systems for connecting
customers with their banks via electronic mail.
•
Progress
in the process of dedollarization of the
economy.
As regards monetary and foreign-exchange policy,
measures were introduced in 2003 and 2004 that
significantly altered the economic framework in
which monetary and financial policy was applied.
Dedollarization of the economy involved the
passing of Resolutions 65 of 2003 and 80 of 2004
(both of BCC), which included directives
substituting the convertible peso for the US dollar
in, respectively, all inter-firm dealings and in retail
circulation.
RESOLUtioN No. 65/2003
In July 2003, the convertible peso (CUC) became the only
currency for use in transactions between Cuban firms,
including credits and other types of debt funding they obtain.
From the time this measure came into force, Cuban firms
operating accounts in CUCs and needing foreign currency for
payment of a trade account, settling a debt or other
legitimate purpose, have been required to apply in advance
to BCC for authorization to make the necessary purchase.
This led to the setting up of a Hard-currency Approvals
Committee. Similarly, foreign-currency receipts by such firms
are automatically and immediately converted by their banks
to CUCs.
125
(Cont.)
These arrangements represented a key stage in the
dedollarization process reflecting a strategy of the country's
leadership. The CUC, a currency issued by the central bank,
which up to that time was in limited circulation for commercial
and financial transactions involving the general public,
acquired the functions of a payment medium, accounting unit
and depositary of value for the business sector. The system
adopted implied that the CUC-dollar rate of exchange would
be common to both sectors (the general public and the
business community).
The benefits have included greater effectiveness,
transparency and control in the use of financial resources,
while increasing the level of foreign reserves held by BCC,
enabling these to be placed in the international market. Also,
BCC's scope for acting as the system's lender of last resort
has been increased.
For firms, use of the CUC has meant enhanced ability to
establish monetary policies. Given its issue by BCC, this
currency is more readily subject to regulation, making money
supply and CUC rates of interest potentially effective tools of
policy.
126
This measure responded to steps taken by Washington
aimed at preventing Cuba from using its reserves in US
dollars. By means of threats and other pressures on foreign
banks, obstacles are introduced to prevent Cuba from
depositing abroad the dollars spent by Cubans and foreign
visitors in the hard-currency shops and with serviceproviders.
Resolution 80 provided that all firms and other entities that
accepted US dollars in cash, in carrying on business in Cuba
would, as from 8th November 2004, accept only CUCs. As
from 14th November, a surcharge of 10% was imposed on
the exchange of US dollars for CUCs or domestic currency.
Dollar accounts opened on or after that date would be
restricted to deposits and withdrawals in cash. Bank
accounts in dollars or CUCs existing on 13th November
could continue to operate as before that date (except that
cash deposits in dollars were not permitted). In particular,
such customers could apply to withdraw cash in CUCs or
dollars without incurring the 10% surcharge.
Holding of dollars continued to be permitted, and the
convertibility of CUCs was maintained. This means that
dollars can be purchased with CUCs without restriction at
branch banks, as before. Cubans can also convert pesos to
CUCs at the rate of exchange adopted by the bureaux de
change.
The two basic aims of Resolution 80 were to offset the costs
and risks associated with the physical transfer abroad of
dollars in cash under the new conditions and to create a
127
(Cont.)
financial incentive for people bringing dollars into the country
to switch to another currency (the euro, Canadian dollar, yen,
pound sterling or Swiss franc).
At the same time, the new rules enabled: i) a better basis for
measuring money supply, while facilitating the application of
monetary policy as part of the dedollarization process; ii)
greater liquidity and solvency among the banks, improving
the prospects of securing hard-currency financing in the
international market, as well contributing to economic growth;
iii) an increase in BCC's foreign-currency reserves, providing
better cover for the financial system's liabilities.
The measure also implied greater responsibility in the
management of money supply. In implementing its monetary
policy based on the CUC, BCC needed to ensure the CUC's
stability and convertibility. The use of central bank tools
supporting monetary-policy implementation grew in
importance from that point onwards.
In 2004, the Bank passed Resolution 92, which
imposed tight controls on expenditure in hard
currency by Cuban firms, adopting a pre-approval
system for transactions in CUCs and foreign
currency.
128
Under this resolution, all receipts of convertible currency by
the Central Fund from 1st January 2005 onwards in respect
of contributions, taxes and similar dues are paid into a single
account at BCC for all state monies received in hard
currency, coupled with centralized control over the
application of such funds. Any firm receiving CUCs via this
route must always purchase them with Cuban pesos.
Receipts from joint venture companies and similar
undertakings in respect of the Cuban party's dividend,
franchise revenues and similar receipts are also paid into this
account.
Since 1st February 2005, the Hard-currency Approvals
Committee chaired by BCC has been the authority tasked
with reviewing transactions in CUCs by the organizations
with the greatest hard-currency transaction volumes, as well
as those falling within its earlier terms of reference.
In both cases, approval must be obtained prior to
commitment (rather than at the time of settlement).
Previously-approved transactions in Cuban pesos or the
equivalent in other currencies are exempt within limits set for
each firm based on the nature of its business. In these
cases, the transactions are reported after the event; this
information is then analyzed to determine what future action
would be appropriate. This might include withdrawing the
authorization granted in the case of firms that act without due
control, discipline or rationality in using this facility.
This new stage in the organization process included
appointing experts from the Foreign Affairs and Economic
Planning ministries and other bodies to the Hard-currency
129
(Cont.)
Approvals Committee, as required for the purposes of rapid and
effective review and processing of transactions, so as not to
encumber firms' operations with excessive red tape.
Operations Committees were set up in the remaining
organizations with representatives of the Hard-currency
Approvals Committee or officials nominated by the latter, with
authority to veto any transaction and, in all cases of doubt, to
refer the question to the latter committee.
Cuban banks are prohibited from processing any transaction by
a Cuban firm in CUCs or hard currency that has not been
authorized by the Hard-currency Approvals Committee.
In 2005, by Resolution 13 of its Monetary Policy
Committee, BCC revalued the Cuban peso (CUP)
by 7%, to 24.00 pesos for sales of CUCs and
dollars, and 25.00 pesos for purchases of CUCs by
the general public. Resolution 15 of the same
committee revalued the CUC against the US dollar
by 8.0%.
The combined effect of these measures was to
revalue the CUP against the dollar by 15.0% in the
high-street foreign exchange market,
consolidating a trend of strengthening the
domestic currency that dates back some years.
These measures favoured greater fairness
between the segments of the population with
incomes in differing currencies. They also
130
increased the purchasing power of the domestic
currency in the hard-currency shops.
There was a further restructuring of the national
banking and financial system in December 2006,
along the following lines:
BANCO CENTRAL DE CUBA
BANCO
INTERNACIONAL
DE COMERCIO
S.A.
BANCO DE
INVERSIONES
S.A.
BANCO
NACIONAL
DE CUBA
BANCO
POPULAR
DE AHORRO
BANCO
DE CRÉDITO
Y COMERCIO
15 NON BANKING
FINANCIAL
INSTITUTIONS
BANCO
FINANCIERO
INTERNACIONAL
S.A.
BANCO
EXTERIOR
DE CUBA
BANCO
METROPOLITANO
S.A.
BANCO
INDUSTRIAL DE
VENEZUELA-CUBA
S.A.
13 FOREIGN BANKS REP. OFFICES
AND 4 NON BANKING
FINANCIAL INSTITUTIONS
Between 1997 and 2006, the non-banking
financial-sector concerns granted loans to Cuban
firms totalling 17.7 billion CUCs, thereby
contributing to the recovery of the national
economy. The main sectors absorbing these funds
were industry, commerce, tourism, transport and
agriculture.
131
At the end of 1998, the Cuban banks which effect
international transactions joined SWIFT (the
Society for Worldwide Interbank Financial
Telecommunication), a system that ensures the
safe and rapid transmission of financial messages.
In 2005, BCC introduced new types of financing,
including placing its bonds on the London Stock
Exchange (LSE). It raised 500 million US dollars in
this way, at an interest rate of 8.0% and a
one-year maturity. Banco de Inversiones S.A.
(BDI) acted as paying agent, registrar and transfer
agent.
In 2006, exercising the right of conversion of the
holdings of the bondholders in the original issue in
US dollars, a new issue of 400 million euros was
made, offering 7.0% interest and one-year
maturity. It was fully subscribed on placing, by
Cuban and foreign banks and other financial
institutions. This stock exchange, in particular its
unregulated segment, represents a new, faster,
safer way of accessing the funds available in stock
market transactions, being designed for direct
relations with investors, institutions and
accredited brokers that are regulated and have
extensive experience in the sector.
The LSE is the second most important market in
the world as regards this speciality, and is
becoming the first for Cuba and its relevant
institutions.
BCC's bond placing and sale operation was clear
proof of the growing confidence of the
international economic community in the integrity
and probity of the Cuban government.
As regards correspondence relations, Cuban
banks have links with over 500 foreign banks in
122 countries, despite the economic war waged by
Washington on our country with the aim of
obstructing our financial links with the world at
large.
132
Cuba's financial system includes a small
insurance sub-sector, in which the two main
companies are Empresa de Seguros
Internacionales S.A. (ESICUBA) and Empresa de
Seguro Estatal Nacional (ESEN). These are
supervised by the insurance-sector watchdog (the
Superintendencia de Seguro) attached to the
Ministry of Finance & Prices.
133

00 cubierta ingles - Banco Central de Cuba

Transcription

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