Black Market in Cuba: Survival in a Communist System

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Hello, friends. Cuba, a communist country, is known for many things: its music, its culture, its revolutionary history, and, of course, its unique economic system. In this country, the economy is tightly controlled by the State, and any form of commerce outside its strict dominion is considered illegal. This is where the famous black market, or informal market, is born, a phenomenon that has become an essential part of daily life for the vast majority of Cubans.

The black market in Cuba is nothing like the typical black markets you might find in other countries. Instead of selling stolen or illegal goods, this market is more of a reflection of the island's unique economic situation. The majority of the goods you need to acquire, such as personal hygiene products, food, and other everyday items, are often found in state-owned stores that only accept a virtual currency known as MLC (Freely Convertible Currency), equivalent to the USD. The problem is that you can only obtain MLC with foreign currencies, such as U.S. dollars or euros, and this is where the complexity begins.

In Cuba, there are no banks or exchange houses that offer MLC or foreign currencies to ordinary citizens. The government considers the acquisition of MLC through any means other than state institutions illegal; however, it is counterproductive since these institutions do not sell it. This leaves the population in a difficult situation, as most people do not have access to these foreign currencies, preventing them from buying essential products in MLC stores.

So, how do Cubans survive in the midst of this situation? This is where the black market or informal market comes into play, a network of product trading that operates outside the law. The so-called "mules" are individuals who travel abroad and purchase scarce products in Cuba, such as personal hygiene items, clothing, electronics, and other goods. They then bring these goods into the country and sell them on the black market at significantly higher prices. Or they acquire the necessary foreign currencies in this same market to shop at MLC stores. Always keeping in mind that the government pays in CUP, a physical currency that is becoming increasingly useless.

The black market in Cuba is a response to scarcity and the limitations imposed by the government. Cubans have become true masters of inventiveness, all with the purpose of surviving in a system where the state economy cannot meet basic needs. Despite the restrictions, people find ways to obtain what they need to lead a life that, in most cases, falls short of being dignified.

Another aspect is the buying and selling of food, something very important in a country where food scarcity is a chronic problem. People purchase food through the state distribution network and then resell it at higher prices. This benefits not only the sellers but also allows consumers to access food that would otherwise be difficult to obtain.

In addition to the black market, a new business model has emerged in Cuba that has changed the country's economic dynamics: private SMEs (Micro, Small, and Medium-sized Enterprises). These private businesses, although regulated by the government, have helped alleviate the shortage of products and services to some extent. Despite their contribution to the market, they have influenced the rise of inflation, a topic that deserves a more in-depth discussion at another time.

The black market in Cuba is a complex and multifaceted phenomenon. While it is a response to economic restrictions imposed by the government, it also presents ethical and economic challenges. Cubans have learned to adapt and survive in a system that often pushes them into illegality to meet their basic needs. This leads me to ask a question: Is what the State considers illegal also illegal for me?

Reference:

• eltoque.com

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Original Spanish text: Translated and formatted with Hive Translator by @noakmilo.
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