ABSTRACT
Cuba’s socioeconomic system is in the process of serious change. The type of economic system that it is moving towards will probably be more ideologically and politically oriented than the existing one. In the meantime, the domestic economy remains in a state of confusion while the different commissions make final decisions on the restructuring of the economic management system. Centralization was criticized from the economic theoretical viewpoint—questioning the desirability and feasibility of centralization in economies of scales. However, it was accepted that while it is of concern, centralization might hamper and curtail the flexibility and effectiveness of the sugar agro-industrial system already in place. The concept of economic growth in a developing economy such as Cuba’s should include among its more important elements the creation of industries which help substitute for goods and services acquired through the expenditure of foreign exchange.
