Cuban television criticized the high prices of products offered by the medium and small enterprises (mipymes) this Friday, but failed to mention that the prices in dollar stores opened in several provinces exceed those of those businesses.
In a report by the spokesperson Talía González about “excessive prices,” the official journalist stated that most essential products priced in national currency are found in establishments of the non-state sector but do not adhere to the “established” prices.
The reporter described it as a “challenge” to comply with the prices imposed by the regime.
“The trend in most cases is that they withdraw the product or simply sell it secretly. Many times the inspector arrives and the informational board does not reflect the products, yet they are still sold. There are already new ways to evade legal responsibilities regarding price violations,” said an inspector in an interview.
Justifying the supply crisis with the economic embargo imposed by the United States, Talía González urged that the “confrontation” with high prices become a “daily practice,” without holding the State accountable for the mismanagement during the Cuban economic crisis.
A self-employed worker, also interviewed by the regime’s reporter, stated that products become more expensive because they have to be acquired through different channels, since the wholesale company that is supposed to sell to them does not offer anything.
“The issue of wholesale markets for private markets is really strong, it’s strong. I have ties with a non-agricultural cooperative and although the market was created to lower prices, it hardly offers anything,” he claimed about the Mercado Mayorista de Alimentos Mercabal, established in 2018 to “meet” the demand for products from the private sector.
According to data provided by González herself, the average salary in Cuba at the end of January is 5,827 pesos per month, and a piece of liver in a small and medium-sized enterprise can cost 1,300 CUP.
The situation is critical for pensioners, who receive an average pension of 2,188 pesos, while the “new pensioners” receive 3,163, in a context where inflation has a monthly increase of 2.06%, which equates to an annualized rate of 27.7%.
Despite the low salaries and pensions received by Cubans, the regime has opened dollar stores throughout the country as part of the process of partial dollarization of the economy.
The Government has assured that accounts in freely convertible currency (MLC) will remain in the banks on the Island, while defending the presence of the dollar in the economy.
While launching a campaign against small and medium-sized enterprises, the regime opens these establishments where only those who receive dollars from their relatives can make purchases.
Despite this, it defends the stores as an “accessible” space “for the general population,” even though the high prices in dollars make them unattainable for a large portion of Cubans.
Frequently Asked Questions about the Economic Situation in Cuba and MIPYMES
Why does Cuban television criticize small and medium-sized enterprises for high prices?
The Cuban television criticizes small and medium-sized enterprises for offering products at what they consider “excessive” prices, attributing this to a failure to comply with the prices set by the regime. However, they do not mention that the dollar stores also have high prices, which highlights a biased approach to the economic issues on the island.
What impact does partial dollarization have on the Cuban economy?
Partial dollarization has led to greater inequality in access to goods and services, as only those who receive remittances or have access to foreign currencies can shop in stores that sell in dollars. This has generated criticism from the population and economists, who believe that the regime is not effectively addressing the economic crisis.
How does inflation affect Cuban families?
Inflation has eroded the purchasing power of salaries and pensions, making basic goods unreachable for many families. The cost of living has increased significantly, while the incomes of most Cubans remain low, exacerbating the economic situation of the population.
What measures has the Cuban regime taken to control prices?
The Cuban regime has implemented price caps on certain basic products and has penalized private businesses with fines for not adhering to these prices. However, these measures have not been effective in curbing inflation, and stores selling in dollars continue to offer products at high prices, leading to a lack of trust among the population.