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Incentives and Planning in Cuba
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During 1986 and 1987, Cuba found itself once again debating the relative merits of material and moral incentives. Analysts outside Cuba have rushed to their word processors to pronounce judgment on the Cuban economy's alleged uncertain footing. Some writers have erroneously declared that Cuba has abolished its post-1973 system of tying pay to productivity, and some have interpreted changes in the Cuban economic system as marking the failure and demise of the Sistema de Dirección y Planificación de la Economía (SDPE), Cuba's system of economic management and planning since 1976. This essay will endeavor not to uncover the errant interpretations of Western observers but to explore the underlying problematic and dynamic that Cuba confronts in attempting to balance moral and material incentives within the framework of central planning.
Title: Incentives and Planning in Cuba
Description:
During 1986 and 1987, Cuba found itself once again debating the relative merits of material and moral incentives.
Analysts outside Cuba have rushed to their word processors to pronounce judgment on the Cuban economy's alleged uncertain footing.
Some writers have erroneously declared that Cuba has abolished its post-1973 system of tying pay to productivity, and some have interpreted changes in the Cuban economic system as marking the failure and demise of the Sistema de Dirección y Planificación de la Economía (SDPE), Cuba's system of economic management and planning since 1976.
This essay will endeavor not to uncover the errant interpretations of Western observers but to explore the underlying problematic and dynamic that Cuba confronts in attempting to balance moral and material incentives within the framework of central planning.
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