Living in Cuba: Economic Reforms and Market Liberalisation
Following the collapse of the Socialist trading system, Cuba entered a ‘Special Period’ when food and other basic household goods were rationed as a result of shortages and economic pressures on the Cuban economy. The government has undertaken several reforms in recent years to stem excess liquidity, increase enterprise efficiency and labour incentives, and alleviate serious shortages of food, consumer goods, and services, prioritising of political control makes extensive reforms unlikely.
Economic Reforms
For example:
Liberalized agricultural markets were introduced in October 1994, at which state and private farmers sell above-quota production at unrestricted (market) prices, have broadened legal consumption alternatives and reduced black market prices.
Government efforts to lower subsidies to unprofitable enterprises and to shrink the money supply caused the semi-official exchange rate for the Cuban peso to move from a peak of 120 to the dollar in the summer of 1994 to 21 to the dollar by yearend 1999.
Income taxes and increased regulations introduced since 1996 have sharply reduced the number of legally self-employed from a high of 208,000 in January 1996. For example, individuals are now allowed to run small restaurants (paladares) and to let rooms.
Paladares (small, privately run restaurants)
Since the mid-1990s, the government have allowed small private restaurants to operate in the living rooms of local people and these ‘home restaurants’ (paladares). To limit competition with state run restaurants, paladares are limited to twelve seats and to meals consisting of pork, chicken or fish.
- Scarpaci (1995) [PDF] describes the emerging food and paladar market in the mid-1990s.
- Henken (2002) [PDF] gives us a sense of the situation at the start of the new century.
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Jackiewicz and Bolster (2003) examine paladars as contradictory spaces that are not necessarily representing a capitalist tradition.
Paladares in operation in 2003
LA FONTANA HABANA: Founded by a small group of relatives, students and friends, it has become a famous "Paladar".
Address: Calle 3ra. A esq. 46 No. 305, Miramar Ciudad de la Habana, Cuba.
From 12:00 to 00:00 Hrs.
Paladar "La Cocina de Lilliam": Distinguished visitors have visited this restaurant including President Carter.
Address: Calle 48 No. 1311 entre 13 y 15. Playa.
Paladar "La Guarida": Up three long flights of poorly lighted stairs in an old beauty of a building is one of the most famous Havana's paladars. La Guarida was the setting for several scenes in the Oscar nominated film "Fresa y Chocolate". Pictures of movie stars, tables lighted with dripping red candles create an ambience that recalls The Havana of the 1920's. The Spanish royal family visited this restaurant.
Address: Calle Concordia No. 318 entre Gervasio y Escobar. Centro Habana.
Paladar "Gringo Viejo": Hidden behind an iron gate.
Address: Calle 21 No. 454e entre E y F. Vedado. Phone: 537-326150.