The Cuban Ministry of Domestic Trade (MINCIN) recently announced setbacks in the distribution of rationed basic goods, attributing these issues to financial and logistical challenges. On their Facebook page, the ministry highlighted that these difficulties are exacerbated by the "tightening of measures imposed by the United States government."
As of February, the supply of rice meant for December 2024 is yet to be fully delivered in western and central provinces. However, ships are expected to arrive soon. The two-pound sugar allocation per person for January has been completed in some areas, but the distribution of peas is still ongoing across various regions.
A particularly significant concern is the limited distribution of powdered milk for children. In January, only 20 days' worth of milk was provided for children aged 0 to 2, with Pinar del Río, Artemisa, and Granma receiving just 10 days, to be supplemented with the next delivery. Additionally, milk distribution for the first 10 days of February has started for children aged 0 to 6, ensuring medical diets for children with chronic illnesses and pregnant women are met.
The rationed bread supply continues, although its stability hinges on the arrival of raw materials throughout the month. Unfortunately, the announcement confirms no distribution of meat, oil, or coffee, severely impacting the population's diet.
Dollar Stores and Economic Disparities
In contrast, foreign currency stores remain stocked with these goods but are only accessible to those with dollars. The Cuban government has recently expanded the opening of supermarkets operating solely in U.S. dollars, part of a "partial dollarization" strategy. These stores, such as the one opened at the 3rd and 70th intersection in Havana, offer a wide range of domestic and imported products, including food, hygiene items, and appliances. Payments are exclusively accepted in cash dollars or through cards linked to foreign currency accounts, limiting access for many Cubans who earn in Cuban pesos.
This proliferation of dollar stores has sparked criticism and controversy, as many citizens argue it worsens economic and social inequalities. Prices in these outlets are typically high; for instance, a 500-gram panettone costs $15.20, exceeding the average monthly salary in Cuban pesos. The increasing demand for dollars to shop in these stores has also strained the informal currency market, driving up the exchange rates of the U.S. dollar against the Cuban peso.
Recently, the Cuban government announced plans to expand these dollar-exclusive stores to other areas, including 50 that will be managed by MINCIN. Cuban authorities defend this initiative as crucial for generating foreign currency and sustaining the economy amid the crisis. However, this policy has deepened inequities in consumer goods access, creating a parallel market that excludes many citizens.
Understanding Cuba's Economic Challenges
What is causing the delays in the distribution of rationed goods in Cuba?
The delays are primarily due to financial and logistical challenges, further complicated by the increased restrictions imposed by the United States government.
Why are dollar stores controversial in Cuba?
Dollar stores are controversial because they exacerbate economic and social inequalities by offering necessary goods only to those with access to foreign currency, while many Cubans earn their income in pesos.
How has the opening of dollar stores affected the Cuban economy?
The expansion of dollar stores has increased the demand for U.S. dollars, pressuring the informal currency market and raising exchange rates against the Cuban peso, while also deepening access inequities to consumer goods.