ABSTRACT

The last quarter saw changes in both the Cuban economic and social systems. The abrupt introduction of these changes was in response to pressures caused by external and internal factors beyond the control of the Cuban government. The Economic Calculation System incorporates some elements of the free enterprise system. It accepts profitability of firms and industries and freedom of entrepreneurship, including individual decision-making. Although the Economic Calculation System is already installed, attempts to alter the planning system and decision-making in the economy occurred prior to the Third Party Congress. The German Democratic Republic has been an active economic partner for Cuba. A new agreement provides for the construction of ten agricultural-chemical centers for the fertilization of cane areas at a cost of 15 million rubles. An evaluation of the economy in aftermath of the Third Party Congress and first quarter of the year, indicates that both internal and external events arc negatively influencing the economy with unsatisfactory economic results.