Page 7 - aruba-today-20220218
P. 7

A7
                                                                                         WORLD NEWS Friday 18 February 2022


















            Shortages, inflation frustrate Cubans struggling to get by



            By ANDREA RODRÍGUEZ                                                                                                 pound)  on  the  black  mar-
            Associated Press                                                                                                    ket
            Julia Sardiñas awoke early                                                                                          “There  are  many  factors
            so  she  could  reach  a  gro-                                                                                      (for  the  rising  prices),  but
            cery store in Cuba’s capital                                                                                        the principle is the fall in the
            by 6 a.m.                                                                                                           supply of goods and servic-
            After  seven  hours  in  line,                                                                                      es.”  said  economist  Omar
            she achieved her goal: the                                                                                          Everleny Pérez.
            purchase of two plastic 1 li-                                                                                       The  government  itself  has
            ter bottles of cooking oil for                                                                                      recognized  inflation  as  a
            which  she  paid  48  Cuban                                                                                         serious problem.
            pesos  $2 each.                                                                                                     Economy  Minister  Alejan-
            “I  was  standing  for  many                                                                                        dro  Gil  said  overall  prices
            hours;  you  have  to  wait                                                                                         rose by about 70% in 2021,
            your  turn  to  be  able  en-                                                                                       though increases for some
            ter  for  two  bottles,  but  it’s                                                                                  goods  clearly  have  been
            something,” said the retired                                                                                        far greater.
            65-year-old.                                                                                                        A  carton  of  30  eggs  cost
            Grocery  shopping  has  be-                                                                                         150 pesos  $6  last year, but
            come an increasingly cost-                                                                                          are  now  400  pesos  on  the
            ly and arduous struggle for  Wearing masks amid the COVID-19 pandemic, a man transports a customer on a bicycle taxi in   black  market.  A  package
            many  people  in  a  country  Havana, Cuba, Wednesday, Feb. 16, 2022.                                               of sausage that cost 40 pe-
            where  the  pandemic,  in-                                                                        Associated Press  sos  is  now  118  even  in  of-
            efficient  production,  gov-  That has led to limits on in-  to  a  store  to  shop  and  re-  In  recent  weeks,  the  price  ficial stores. Pork that used
            ernment  controls  and  U.S.  dividual  purchases.  The  solve many problems.”         of powdered milk touched  to  cost  40  pesos  a  pound
            economic  sanctions  have  state  store  where  Sardiñas  With those exchange hous-    about  $40  a  kilo  ($18  a  now goes for 200. q
            aggravated  an  economic  bought her oil scanned her  es  closed,  she  relies  on
            crisis. A drastic drop in cru-  identity card to ensure she  visitors who bring in money
            cial tourism income caused  wasn’t  buying  more  than  from  her  son  and  recently
            by  COVID-19  helped  spur  two at a time.                got  about  70  pesos  per
            the  government  last  year  The  problems  have  fed  a  dollar on the informal mar-
            to  adopt  reforms  it  had  sense  of  inequity  among  ket  nearly three times the
            long  considered.  Those  in-  many that is especially bit-  official  rate.  That  black
            cluded  elimination  of  an  ter in a socialist system that  market  rate  over  the  past
            inefficient  dual  currency  prides  itself  in  a  relatively  week rose further, to about
            system that had made the  equal distribution of goods.    100  to  1.  To  help  confront
            local  peso    in  which  most  “It’s  impossible  to  main-  shortages and bring in hard
            Cubans  were  paid    a  sort  tain  my  family  on  my  sal-  currency,  the  government
            of  second-class  currency.  ary,”  complained  Marcia  also  expanded  a  network
            It had been a poor cousin  Ochoa, a state worker who  of hard currency stores that
            to  the  “convertible  peso”  said  she  makes  2,400  pe-  are  often  better  stocked
            used  by  tourists,  people  sos  $100 at the official rate  but much more costly than
            who worked with them and  each month and lives with  standard  shops.  They  now
            those who received money  her  husband  and  elderly  accept  dollar-linked  debit
            from relatives abroad.       parents.                     cards    though  not  cash  it-
            Adoption  of  a  single  cur-  She  said  she  depended  self. Cubans can use euros
            rency  for  all,  along  with  on money sent by her son  or Canadian dollars to pur-
            shortages, led within a few  in the United States to help  chase such cards.
            months to sharply increased  buy things like soap, sham-  But long lines now are com-
            prices for many goods that  poo and food.                 mon both in local and hard
            weren’t matched, for most  Life became more compli-       currency   stores,   where
            at  least,  by  the  simultane-  cated  when  the  adminis-  products   ranging   from
            ous rise in salaries.        tration  of  former  U.S.  Presi-  soap  to  beans  to  chicken
            And  because  the  govern-   dent  Donald  Trump  tight-  tend  to  suddenly  appear
            ment has had trouble pro-    ened  economic  sanctions  and rapidly vanish.
            ducing or importing all the  on Cuba in November 2020  That’s led to an increasing
            goods  needed,  it  also  led  and  blocked  remittances  black  market  as  people
            to  emergence  of  a  black  via Western Union.           speculate  by  buying  what
            market,  with  people  pay-  Her  son  used  to  send  her  they  can  and  reselling  it
            ing a premium for dollars or  roughly  $100  a  month  via  days  later  when  shortages
            for scarce items.            Western Union. “I could go  increase.
   2   3   4   5   6   7   8   9   10   11   12