The Cuban Ration Book Turns 50

http://www.havanatimes.org/?p=64286

The Cuban Ration Book Turns 50
March 13, 2012
Fernando Ravsberg*

HAVANA TIMES, March 13 — Half a century ago, the nascent Cuban
Revolution created the Libreta de Abastecimientos (the ration book),
which was the basic element of a system of food subsidies and rationing
aimed at ensuring that basic staples were affordable for everyone.

This system was implemented almost as a war time measure at a moment
when the confrontation was deepening with the United States, which had
erected a blockade against Cuba with the express goal of creating hunger
causing discontent among the Cuban people.

The libreta had, and still has, its supporters and detractors. Citizens
are divided between those who fear that its disappearance will result in
hunger among the poor and those who believe that it is cheaper to
subsidize people than products.

Among its critics is President Raul Castro, who claims that the
country's economy can't continue to sustain such an expenditure and who
has already begun to eliminate the ration book by reducing the number of
products that can be purchased through it.

UNSUSTAINABLE

The Cuban government currently spends more than $1 billion (USD)
annually on food subsidies that are provided through ration books held
by all citizens, who pay only 12 percent of the market value of the
products.

Rice, chicken, sugar, milk, eggs, cooking oil, beans, spaghetti and
cooking gas are sold through the book. The amounts are small and last
only about 10 days per person, with the total price paid being around $1
USD per person per month.

Neighborhood "bodega" stores that sell products through the ration book
are increasingly empty. Photo: Raquel Perez

Starting at birth, all Cuban children receive a daily allotment of baby
food through their first year. Likewise, up to the age of seven,
children are provided one liter of milk per day for 10 cents (USD).
However, after that age that product has to be purchased at high
unsubsidized prices, for almost $2 (USD) per liter in hard currency stores.

For decades the ration book has also served for providing special food
allocations for people on medically prescribed diets, which might
include meat, milk and vegetables.

A SLOW DEATH

When Cuba opened its economy in the 1990s, it began experiencing the
disappearance of income equality as well as the fairness of the ration
book. However, the government maintains its food subsidies that benefit
the poor as well as those who earn thousands of dollars a month.

Some prominent economists have argued since back in the '90s that the
most reasonable action is to eliminate the libreta and to provide
subsidies directly to low-income people. Finally, as president, Raul
Castro is supporting that measure but intends to implement it through a
gradual process.

The government continues to sell some basic food items through the book,
but it is slowly eliminating certain products, such as cigarettes,
cigars, toothpaste, soap and tomato puree. However these first steps
have already raised concerns among people.

Teacher Mercedes Puerto told us: "The ration book is still necessary,
because even the little that it provides helps us to make ends meet. If
it's taken away, my husband and I won't have enough to live on with what
the two of us earn."

However, retiree Emilio Roca argues: "The ration book is now obsolete.
Its role is over and we have to find other ways. To me, the problem
isn't the ration book but low wages. We have high prices on the one hand
and low wages on the other."

AND THEN WHAT?

The ration book was key in the 1960's when Washington aimed to "deprive
Cuba of money and supplies, to reduce its financial resources and real
wages, cause hunger, desperation and the overthrow of the government."

In the 1980's it became less important because many products were being
sold "on the non-rationed market," at prices affordable to the average
Cuban. However the 90's economic crisis made it the lifeline for most
citizens.

With the disappearance of the European socialist bloc countries, Cuba's
supplies were drastically reduced and the existence of the ration book
allowed for the equitable sharing of the little food that entered the
country or that it produced, which was barely enough for people to survive.

But Cuba changed. Part of the population — self-employed workers,
artists, employees of foreign companies and tourism agencies, as well as
those who receive remittances, etc. — no longer need the ration book.
They have higher incomes and places to buy their products.

The unresolved problem is what will happen to the poorest 20 percent of
the population that up until now has been able to eat — for better or
worse — thanks to the ration book. The fear of many of them is that they
doubt that the social security system operates with the same efficiency.