• Submitted by: manso
• Politics and Government
• 10 / 01 / 2010

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Cuba's commitment to prioritise health and education regardless of economic circumstances is one that other countries should emulate MDG Cuba UN secretary general Ban Ki-moon (R) meets with foreign minister of Cuba Bruno Rodriguez Parrilla during the millennium development goals Summit in New York last week.

As we discuss how well countries are progressing on the millennium development goals (MDGs), South America's left-leaning governments are coming out of it all quite well. And while their mix of policies more closely resembles modified liberal capitalism than revolutionary socialism (yes, even under the radical governments of Chavez, Morales and Correa), it is to Cuba that most still look for political inspiration. Ask Luiz Inácio Lula da Silva, the moderate social democratic president of Brazil and the world's latest favourite leader, for his political heroes, and I bet Castro will be in the top three.

The evidence suggests that Cuba has made excellent progress towards the MDGs in the last decade, building on what are already universally acknowledged to be outstanding achievements in equitable health and education standards. So it is important for researchers to check the figures, and reflect on the reasons for them, just as we do with other countries in the world.

According to a new MDG Report Card by the Overseas Development Institute, Cuba is among the 20 best performing countries in the world. The key question for development experts who want to learn from this success is this: How is progress being made when the economy appears to be in such turmoil? I posed this question to a young Cuban economist friend of mine:

 Hello Jonathan. How is it possible to sustain spending despite economic difficulties? Good question!

The Cuban economy is planned and we redistribute income from the most dynamic sectors, which generate most foreign exchange, towards those that are less dynamic but necessary for the country. That's how we maintain a budget to keep health and education high quality and free of charge to the user.

Although many see this as "social spending", some economists, of which I am one, see it as a long-term (if costly) investment. It is part of the country's economic strategy in the long run to have human capital which can easily adapt to new economic conditions, including the development of trade in services. So costly investments are made, and wages in these sectors are kept relatively high. Since 2004 Cuba has indeed increased exports of services in precisely these sectors (health and education), mainly to Latin countries.

 You ask why health and education levels do not match the country's economic development, and that's exactly where the paradox lies. There are some economists, of which I am not one, that think that if more resources were devoted to productive areas, the national economic outlook would improve, and who therefore call for forms of cost recovery. Given the current economic crisis it has been necessary to review subsidies, eg a small percentage decrease in social assistance, which was very generous. But only in order to have the resources to maintain healthcare free at the point of use.

 The reason it is possible to sustain the health and education levels is simple: political will, which has been the basis of 50 years working to improve social welfare. Although it is difficult to believe, in our island the economic sphere is actually quite distinct from social achievements in health, sport and education. All this is due to a determined government and decades of political will, which is bearing fruit.

I wouldn't agree with my friend on all of his views, but they give pause for thought. What happens to the Cuban economy in the short-term, let along the long-term, is something we watch with interest. But the kind of political will that sees health and education as a priority whatever the economic circumstances, and as an investment in economic growth rather than a cost to society, is one that other countries should emulate.

Jonathan Glennie Posted by Jonathan Glennie Thursday 30 September 2010 08.50 BST guardian.co.uk
 
Source: http://www.guardian.co.uk/global-development/poverty-matters/2010/sep/30...