CUBANET ... CUBANEWS

June 25, 2001



FROM CUBA

Dismal future

Oscar Espinosa Chepe

HAVANA, June - The dismal situation of Cuban pensioners is only one among a long list of serious problems faced by Cuban society.

The June 1st issue of the national Bohemia magazine says that the average pension in Cuba is 104 pesos a month, or the equivalent of 4.73 U. S. dollars. That's not enough to buy three liters of cooking oil (less than one gallon), sold in government stores at 40 pesos a liter.

The search for solutions to this problem is practically impossible under the present circumstances of chronic economic crisis and unfavorable demographic tendencies.

Expenditures for social security show a noticeable increase in relation to the total expenditures in the budget, according to official figures released. In 1989, social security was 7.8% of the total, while at the end of the 90's it was 13.0%, without any significant increase in individual retirement pensions.

At the same time, contributions to social security are decreasing. In 1989, the social security deficit between income and expenditures was 417.5 million pesos; at the end of the 90's it approached 700 million pesos.

The deficit is made up from other sources in the budget, limiting financial resources for development, eventually affecting growth, employment, salaries and social security contributions themselves.

The growing difficulties of the social security system have a double cause: the economic crisis and the accelerated aging of the Cuban population. In 1980, citizens 60 or older were 10.6% of the population; at present they account for 14.0%. By 2015, they may constitute 18.0%, according to serious demographic studies. The number of pensioners, 12.5% today, could be as high as 20% by 2020.

This demographic phenomenon, aided by low birth rates starting in the 70's, means that ever higher demands on resources to care for the aging population will be faced with diminishing resources provided by a shrinking economically active population.

The only viable solution to this complex problem is economic growth, and in particular, productivity, an impossible task under the present economic model which is itself the main obstacle to the nation's progress. Some measures, such as raising the age of retirement would only be temporary fixes of the worsening crisis.

It could be said that the dramatic living conditions of most pensioners have no prospects of improving. On the contrary, everything points to an even more dismal future for generations that contributed and labored all their lives.

Versión original en español



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