Translation: Guidelines debate 6, Macroeconomics

Here is Part 6 of the translation of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, an explanatory document that has been published together with the final version of the Guidelines adopted by the Cuban Communist Party (PCC) Congress in April. Thanks to a fellow translator, who prefers to remain anonymous, for translating the guidelines on localities. 

The format is as follows: number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Communist Party Congress, followed by the drafting commission's explanation for the change. You'll find it easiest to read on my blog where the amended guidelines are in bold.      

Localities  

35. The Provincial and Municipal Administrative Councils carry out state functions and will not directly intervene in enterprise management. (Maintained)

36. Norms will be established for the relationship between the state functions exercised in the management of economic sectors at the provincial and municipal level and those carried out by administrative agencies of the central state administration, clarifying the limits, relations, work regulations and performance methodologies to be applied. 

Norms will be established for the relationship between the state functions exercised in the management of economic sectors at the provincial and municipal level and those carried out by administrative agencies of the central state administration, defining the parameters, relations, work regulations and performance methodologies to be applied. (36) 

Replaces the term “clarifying the limits" with "defining the parameters" to improve the wording. 

37. The development of local initiatives, especially those related to food production, will constitute a working strategy for municipal self-sufficiency. The principle of financial self-sustainability will be the essential element of this effort, which will be harmoniously coordinated with the objectives of the plan for the national economy. 

The development of local initiatives, led by the Municipal Administrative Councils, especially those related to food production, is aimed at municipal self-sufficiency that promotes the development of mini-industries and service centres. The principle of financial self-sustainability will be the essential element, which will be harmoniously coordinated with the objectives of the plan for the national economy and those of the municipalities. Once established, local initiatives will be managed by the economic entities located within the municipality. (37) 

The development of mini-industries and service centers was included (608 opinions across the country), as well as the negotiation of projects by economic entities (from 315 opinions in 15 provinces). It was added that these projects should be led by the Municipal Administrative Councils on the basis of the Congress debates.

38. In this effort the Municipal Administrative Councils will have a fundamental role in guiding projects. (Integrated with Guideline 37, 315 opinions in 15 provinces) 

Macroeconomic policies

General guidelines

39. Achieve better coordination between the objectives of the plan for the national economy and the design and reach of monetary and fiscal policies. (Maintained as Guideline 38)

40. Achieve external financial equilibrium starting from a favourable current account balance of payments, sustained by the behaviour of the real economy that can compensate for financial imbalances.

Achieve external financial equilibrium, starting with an appropriate correlation between incomes and expenditures in the nation's convertible currency in correspondence with the behaviour of the economy. (39)  

Taking into consideration doubts about the meaning of "current account", and to specify the foundation upon which external financial equilibrium is based, 61 opinions registered in 7 provinces and the Isle of Youth.

41. Guarantee the maintenance of an appropriate relationship between accumulation and consumption and define the necessary rate of accumulation, taking into account the process of recapitalisation required by the economy. In addition, it is essential to establish a more effective relationship between consumption on the basis of incomes derived from work and the social consumption funds.      

Guarantee an appropriate distribution of the national income between immediate consumption and accumulation. Also, establish a relation between consumption on the basis  of personal incomes and the social consumption funds that stimulates labour productivity growth. (40)

The wording is improved to make it easier to understand, 52 opinions in 11 provinces. Additionally, the phrase incomes derived from work is replaced by "personal incomes" to include the totality of the latter.      

Guarantee in the production of goods and services:

In the production of goods and services, the planning process must guarantee:

To specify that the following guidelines must be implemented through the planning process.

42. Labour productivity growth that exceeds the increase in average incomes for workers.    

A relationship between labour productivity growth and average worker incomes that does not cause a deterioration in either the internal monetary equilibrium or the efficiency of the national economy. (41)

Reformulated to specify two basic conditions to take into account in the framing of this relationship, in response to 56 doubts registered in 12 provinces.

43. A sustained increase in economic efficiency that allows for a progressive reduction in state subsidies.

A sustained increase in efficiency as the basis for economic development that allows for a progressive reduction in state subsidies and that contributes to improving, as much as possible, the supply of essential goods and services to the population. (42)

To aid comprehension, efficiency as a necessary condition to improve the supply of goods and services is emphasised, in response to 46 opinions in 9 provinces.  

44. An appropriate link between the expansion of social services and the dynamism of the sectors that produce goods and services that increase the material wealth of the country.

The necessary dynamism of the sectors that increase the economic wealth of the country to underpin the resources needed for the provision of social services. (43)       

Improves the wording, underlining the importance of growth in the productive sectors for the sustainability of social services.

45. A relationship between the imported component of productive processes and the economy's capacity to generate incomes in convertible currency that is sustainable in the medium and long term.

An appropriate relationship between the imported component of national production and the capacity to generate incomes in convertible currency. (44)

Clarifies that this relationship must be appropriate, which is a more comprehensive concept that includes its sustainability over time.