Maria Padron Hernandez, PhD candidate in Anthropology
Opening Note: In this lecture, we will discuss consumption practices as well as how people make sense of consumption (cultural aspects) in Havana, Cuba.
Definitions
- In this lecture, I will use the term “market” to discuss forms of trade.
- The Cuban peso is abbreviated MN.
- The Cuban dollar is abbreviated CUC.
Cuban Markets
- Cuba is one of the few remaining socialist states.
- Its markets have been shaped by a very specific history of socialism following the Communist Revolution.
- There are seven markets in Cuba:
o Market #1- Formal, state market, rationed, currency- the Cuban Peso (MN)
o Market #2- Formal, state market, unrationed, currency- the Cuban Peso (MN), farmers’ markets
o Market #3- Formal, private market, currency- the Cuban Peso (MN), farmers’ markets
o Market #4- Informal/ “Black” market, currency- the Cuban Peso (MN)
o Market #5- Formal, state market, unrationed, currency- the Cuban “Dollar”, TRD, caters to tourists
o Market #6- We did not discuss this market during lecture.
o Market #7- Informal/ “Black” market, currency- the Cuban “Dollar”, anything and everything is bought and sold in this market
- The Cuban Peso was the only currency until the 1980s when the economy opened up to tourism and needed a hard currency.
- Post-Cold War: deep, economic crisis known as “The Special Period”
- During “The Special Period,” relative from abroad, especially in Miami, sent money or remittances to help relatives living in Cuba. Of course, this was illegal.
- In 1993, the state legalized hard currency. Both the US dollar and hard currencies were legalized.
- In 1994, the state began to print the CUC which was equivalent to the US dollar.
- In 2004, the state proclaimed that the US dollar would no longer be accepted.
- In 2006,when Maria conducted her field work, only two currencies were accepted in Cuba, the Cuban Peso (MN) and the Cuban “Dollar” (CUC).
- Neither pesos nor Cuban dollars can be exchanged internationally.
- In 2006, 1 CUC= 24 MN.
- Generally, the CUC is more universally accepted in Cuba than the MN. For example, you cannot use the MN in the unrationed state market that caters to tourists.
- Cubans are only paid in MN.
- The existence of two currencies raises several questions about consumption and the state such as:
o Is the state a provider? (Market #1)
o Is the state a profiteer? (Market #5)
How do Cubans make sense of the 2 currencies?
- The most common way to speak about both currencies is “peso.” This is connected with an important non-verbal understanding of the currencies.
- Both currencies look very similar, although CUC are usually newer and shinier.
o CUC bills contain fine print that identify them as “pesos convertibles”.
o CUC coins contain no explicit statement distinguishing them from MN coins.
o CUC coins are heavier, shinier and prettier.
- Shops rarely explicitly state which currency in which they trade; this is simply understood by the consumer.
- Shops that trade in CUC are usually air-conditioned and contain new products.
- Shops that trade in MN are not air-conditioned and contain products that were not manufactured.
- Thus the CUC is associated with such terms and concepts as new, modern, hygienic, bright, shiny, clean, better and manufactured.
- The MN is associated with such terms and concepts as old, out-dated, dirty and unhygienic
- The Cuban reality is divided into 2 distinct categories: old/new, MN/CUC, poor/rich.
- The MN is associated with Cuba and Cubans while the CUC is associated with foreigners. However, both are Cuban currencies and neither are traded internationally.
- Foreign products, the tourist industry and remittances are exclusively conducted in CUC.
- Cubans cannot do much with their income except consume. Private property is illegal in Cuba.
- Cuba has big trade agreements with China, Venezuela and Bolivia.
o Chinese people are sent to Cuba to learn Spanish and, in return, China sends buses.
o Almost every bus operating in Cuba was made in China.
- Cuba has tried and failed to become self-sufficient. It has always been dependent on another country or countries.
- Prior to the economic crisis, Cuban emigrants were viewed as traitors but, after the crisis, things changed.
- Cuba stopped paying international debts in the 1960s.
o Thus they have no IMF/ World Bank agreements.
o As previously states, Cuba has always relied on loans from governments.
Analysis of the Literature
- Porter argues that some Cubans feel a sense of injustice when they are denied access to the CUC and the tourist economy. She further contends that this situation is contradictory to rights associated with citizenship. Thus, symbolic violence is constantly re-affirmed by the dual economy.
o Maria is skeptical of this argument.
- Gordy discusses the complexity of the Cuban reality.
o Maria prefers this point of view.
Maria’s email address is: maria.padron@globalstudies.gu.se
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