Learn
from Cuba, Says World Bank
Jim Lobe
WASHINGTON, April 30, 2001 (IPS)
-- World Bank President James Wolfenson Monday extolled the Communist
government of President Fidel Castro for doing "a great job"
in providing for the social welfare of the Cuban people. His remarks
followed Sunday's publication of the Bank's 2001 edition of 'World
Development Indicators' (WDI), which showed Cuba as topping virtually
all other poor countries in health and education statistics. It also
showed that Havana has actually improved its performance in both areas
despite the continuation of the US trade embargo against it and the end
of Soviet aid and subsidies for the Caribbean island more than ten years
ago.
"Cuba has done a great job
on education and health," Wolfensohn told reporters at the
conclusion of the annual spring meetings of the Bank and the
International Monetary Fund (IMF). "They have done a good job, and
it does not embarrass me to admit it." His remarks reflect a
growing appreciation in the Bank for Cuba's social record, despite
recognition that Havana's economic policies are virtually the antithesis
of the "Washington Consensus", the neo-liberal orthodoxy that
has dominated the Bank's policy advice and its controversial structural
adjustment programmes (SAPs) for most of the last 20 years.
Some senior Bank officers,
however, go so far as to suggest that other developing countries should
take a very close look at Cuba's performance. "It is in some sense
almost an anti-model," according to Eric Swanson, the programme
manager for the Bank's Development Data Group, which compiled the WDI, a
tome of almost 400 pages covering scores of economic, social, and
environmental indicators. Indeed, Cuba is living proof in many ways that
the Bank's dictum that economic growth is a precondition for improving
the lives of the poor is over-stated, if not downright wrong.
The Bank has insisted for the
past decade that improving the lives of the poor was its core mission.
Besides North Korea, Cuba is the one developing country which, since
1960, has never received the slightest assistance, either in advice or
in aid, from the Bank. It is not even a member, which means that Bank
officers cannot travel to the island on official business. The island's
economy, which suffered devastating losses in production after the
Soviet Union withdrew its aid, especially its oil supplies, a decade
ago, has yet to fully recover. Annual economic growth, fuelled in part
by a growing tourism industry and limited foreign investment, has been
halting and, for the most part, anaemic. Moreover, its economic policies
are generally anathema to the Bank. The government controls virtually
the entire economy, permitting private entrepreneurs the tiniest of
spaces. It heavily subsidizes virtually all staples and commodities; its
currency is not convertible to anything. It retains tight control over
all foreign investment, and often changes the rules abruptly and for
political reasons.
At the same time, however, its
record of social achievement has not only been sustained; it's been
enhanced, according to the WDI. It has reduced its infant mortality rate
from 11 per 1,000 births in 1990 to seven in 1999, which places it
firmly in the ranks of the western industrialized nations. It now stands
at six, according to Jo Ritzen, the Bank's Vice President for
Development Policy who visited Cuba privately several months ago to see
for himself.
By comparison, the infant
mortality rate for children under five in Cuba has fallen from 13 to
eight per thousand over the decade. That figure is 50 percent lower than
the rate in Chile, the Latin American country closest to Cuba's
achievement. For the region as a whole, the average was 38 in 1999.
"Six for every 1,000 in infant mortality — the same level as
Spain — is just unbelievable," according to Ritzen, a former
education minister in the Netherlands. "You observe it, and so you
see that Cuba has done exceedingly well in the human development
area."
Indeed, in Ritzen's own field
the figures tell much the same story. Net primary enrolment for both
girls and boys reached 100 percent in 1997, up from 92 percent in 1990.
That was as high as most developed nations, higher even than the US rate
and well above 80-90 percent rates achieved by the most advanced Latin
American countries. "Even in education performance, Cuba's is very
much in tune with the developed world, and much higher than schools in,
say, Argentina, Brazil, or Chile."
It is no wonder, in some ways.
Public spending on education in Cuba amounts to about 6.7 percent of
gross national income, twice the proportion in other Latin American and
Caribbean countries and even Singapore. There were 12 primary pupils for
every Cuban teacher in 1997, a ratio that ranked with Sweden, rather
than any other developing country. The Latin American and East Asian
average was twice as high at 25 to one. The average youth (ages 15-24)
illiteracy rate in Latin America and the Caribbean stands at seven
percent. In Cuba, the rate is zero. In Latin America, where the average
is seven percent, only Uruguay approaches that achievement, with one
percent youth illiteracy. "Cuba has managed to reduce illiteracy
from 40 percent to zero within ten years," said Ritzen. "If
Cuba shows that it is possible, it shifts the burden of proof to those
who say it's not possible."
Similarly, Cuba devoted 9.1
percent of its gross domestic product (GDP) during the 1990s to health
care, roughly equivalent to Canada's rate. Its ratio of 5.3 doctors per
1,000 people was the highest in the world. The question that these
statistics pose, of course, is whether the Cuban experience can be
replicated. The answer given here is probably not. "What does it is
the incredible dedication," according to Wayne Smith, who was head
of the US Interests Section in Havana in the late 1970s and early 1980s
and has traveled to the island many times since. "Doctors in Cuba
can make more driving cabs and working in hotels, but they don't.
They're just very dedicated," he said. Ritzen agreed that the Cuban
experience probably cannot be applied wholesale to another poor country,
but insisted that developing countries can learn a great deal by going
to the island.
"Is the experience of Cuba
useful in other countries? The answer is clearly yes, and one is hopeful
that political barriers would not prevent the use of the Cuban
experience in other countries. Here, I am pretty hopeful, in that I see
many developing countries taking the Cuban experience well into
account." But the Cuban experience may not be replicable, he went
on, because its ability to provide so much social support "may not
be easy to sustain in the long run." "It's not so much that
the economy may collapse and be unable to support such a system, as it
is that any transition after Castro passes from the scene would permit
more freedom for people to pursue their desires for a higher standard of
living." The trade-off, according to Ritzen, may work against the
welfare system which exists now.
"It is a system which on
the one hand is extremely productive in social areas and which, on the
other, does not give people opportunities for more prosperity."
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