Follow-up: economic austerity measures begin

Today marked the beginning of the new economic measures meant to cut energy costs on the island. Local media and food industry sources reported the following developments:

All provincial governments and most state-run offices and factories (which encompass 90 percent of Cuba’s economic activity) were ordered to reduce energy consumption by a minimum of 12 percent or face mandatory electricity cuts.

The retail sector and many government offices were ordered to keep air conditioners turned off until 1:30 PM, turn off some lights and shut off freezers for at least two hours a day.

Long lines formed at bus stops in Havana as the number of bus runs were cut. Trains between the capital and provinces were reduced by a minimum of 50 percent, although more passenger cars were added to each trip. 

And food allocations for lunches and snacks at most state workplaces were cut by 50 percent, except for those in heavy industries like mining and construction.

The Reuters story is here.

The moves seem to fall in line with Raúl Castro’s general statements made before the Cuban National Assembly at the end of 2008: “We must act realistically and adjust all dreams to the real possibilities… Next year is one of much uncertainty in the world economy and we should be prepared to deal with this serious challenge that has been affecting us in a clear way… No one, not an individual, not a country, can have the luxury of indefinitely spending more than they receive from the sale of their production or from the services they provide.”