Translation: Guidelines debate 2, Economic model

Here is my translation of the first section of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, that discusses changes to the Guidelines (numbered 1 to 10) regarding the general features of Cuba's economic management model. Please note that this is an unofficial translation. 

The format throughout follows that in the first Guideline below: the number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Sixth PCC Congress, followed by the drafting commission's explanation of the change.    

1. Economic management model

General Guidelines

Original number and text:

01. The socialist planning system will continue to be the principal means to direct the national economy, and must be transformed methodologically and organisationally to give space to the new forms of management and direction of the national economy.

Approved text and number:

The socialist planning system will continue to be the principal means to direct the national economy, and must be transformed methodologically, organisationally and in terms of oversight. Planning will take the market into account, influence it and consider its characteristics. (1)

Reason for change:

In relation to planning, the role that the market will have is clarified, 52 opinions in 13 provinces. "Oversight" was added by the Congress debate.

02. The management model must recognise and stimulate, as well as the socialist state enterprise which is the principal form of the national economy, mixed capital enterprises, cooperatives, lessors of state-owned farmland, lessees of state-owned premises, self-employed workers and other forms that may contribute to increasing the efficiency of social labour.  

The management model recognises and promotes, as well as the socialist state enterprise which is the principal form of the national economy, the legally sanctioned modalities of foreign investment (mixed enterprises, international contractual arrangements, among others), cooperatives, peasant farmers, lessees of state-owned farmland, lessees of state-owned premises, self-employed workers and other forms all of which, together, must contribute to boosting efficiency. (2)  

Includes the peasant farmers, addressing 50 opinions in 10 provinces. Foreign investment modalities specified in the law are included. The text is improved and the need for all forms to complement each other in boosting economic efficiency is emphasised.

03. In the new forms of non-state management the concentration of property [ownership] by juridical or natural persons shall not be permitted.

In the forms of non-state management the concentration of property [ownership] by juridical or natural persons shall not be permitted. (3)

The word "new" is eliminated, given that there are already non-state forms of management [eg. agricultural cooperatives that farm state-owned land — translator's note]

04. The structural, functional, organisational and economic changes to the enterprise system, the budgeted entities and the state administration in general will be carried out in a programmed way, with order and discipline, on the basis of the approved policy, which necessitates a training process in all of the structures that will facilitate the implementation of these changes.   

The structural, functional, organisational and economic changes to the enterprise system, the budgeted entities and the state administration in general will be carried out in a programmed way, with order and discipline, on the basis of the approved policy, informing the workers and listening to their opinions, which necessitates a training process in all of the structures that will facilitate the implementation of these changes. (4)   

Incorporates the form of worker participation, 790 opinions in 15 provinces.

05. Planning will encompass not only the state enterprise system and the Cuban mixed capital enterprises, but will also regulate the non-state forms to be developed, which implies a transformation of the planning system towards new methods of elaboration of the plan and of state control over the economy. 

Planning will encompass the state enterprise system, the budgeted entities and the international economic associations and will regulate other forms of non-state management to be developed, and will be more objective at every level. The new planning methods will change the forms of control over the economy. Planning at the municipality level will take these transformations into account. (05) 

Incorporates "the budgeted entities" as a result of the Congress debate, given that planning already encompasses this sector. Substitutes "the mixed capital enterprises" for "international economic associations" as this the most appropriate term. Planning in the non-state sector is added, 346 opinions throughout the country; and planning at the municipal level, 203 opinions in 15 provinces.

06. The separation of state and enterprise functions will take place through a gradual and ordered process, in which the fulfilment of the norms to be established is essential to achieving the proposed aims.          

The separation of state and enterprise functions will take place through a gradual and ordered process, in which the definition of the corresponding norms is essential to achieving the proposed aims. (6)

As proposed by the Congress debate, the term "fulfilment" is changed to "definition", which clarifies what is intended.

It will be necessary to achieve a state enterprise system made up of strong and well-organised firms, and to create new superior organisations of enterprise coordination. General Regulations for these organisations will be elaborated.    

Achieve a state enterprise system made up of efficient, well organised and effective firms. New superior organisations of enterprise coordination will be created. Cooperation between enterprises will be developed to ensure greater efficiency and quality. The corresponding legal norms to regulate these entities will be drawn up. (7)

Adds the idea of developing cooperation between enterprises and the necessity to boost efficiency and quality, 762 opinions throughout the country. "General Regulations" is substituted by "legal norms" to give greater flexibility to the elaboration of the necessary document. The text is improved and made more precise, 181 opinions throughout the country and the Congress analysis.

08. The increase in the powers of the enterprises will be accompanied by their increased responsibility for control over the material and financial resources they manage.

The increase in the powers of entity management will be accompanied by their increased responsibility for efficiency, effectiveness and control over the employment of personnel and the material and financial resources they manage, together with the necessity to demand accountability of those enterprise directors whose decisions, actions or omissions harm the economy. (8)

The content of the guideline is broadened by substituting "enterprises" for "entities" and it is clarified that the powers are those of the managers of these entities. The wording is improved and the accountability of the directors is added, 379 opinions in 15 provinces. "Decisions, actions or omissions harm the economy" is added on the basis of the Congress analysis.

09. Supplies markets will be established that sell at wholesale prices, without subsidies, for the enterprise and budgeted sectors, cooperatives, lessees of state-owned establishments, lessees of state-owned farmland and self-employed workers.     

Supplies markets will be established that sell at wholesale prices and that provide hiring services for machinery and equipment, without subsidies, to the enterprise system, budgeted entities and the non-state forms of management. (9) 
 

Incorporates the hiring of machinery and equipment, 197 opinions in 15 provinces, and simplifies the wording of the non-state forms of management . 

10. The fulfilment of contracts depends on the quality of the negotiation, elaboration, signing and auditing procedures for contracts between economic entities, as an essential instrument of control over their performance.

The economic relations between enterprises, budgeted entities and the non-state forms of management will be mediated through economic contracts, fulfilment of which depends on the quality of the negotiation, elaboration, signing, execution and auditing procedures as an essential instrument of economic management. (10) 

Broadens that related to the drawing up and fulfilment of contracts, 1,171 opinions in 15 provinces.