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Cuba newsprint shortage sounds alarm for economy

April 08, 2019 00:00:00


HAVANA, Apr 07 (AFP): The newsprint shortages which forced Cuba's Communist daily to run a trimmed-down edition on Friday would pass off as a simple supply glitch in most other countries, but in Havana they carry chilling memories of the not-so-distant past.

The last time the government cut back on newspapers because of a lack of newsprint was in the early 1990s, when Fidel Castro ushered in a "Special Period" of drastic belt-tightening in the wake of the collapse of his main sponsor, the Soviet Union.

Today, the Caribbean state is facing difficulties once again, with US President Donald Trump - who has lashed out at Cuba for its support of Venezuela's socialist regime - determined to tighten Washington's six-decade trade embargo.

Meager growth of 1.2 per cent is not enough to cover the needs of an island nation that imports 80 per cent of what it eats.

Amid shortages, the government is being forced to ration basics like flour, cooking oil and chicken, leading to long lines outside stores. Tania, a 49-year-old nurse, has come to buy rice at a Havana grocery store but she's going away empty-handed.

"It's like that with everything. Sometimes you look for a product and you can find it in one place, then you go somewhere else and you can't get it," she said, summing up the average Cuban's daily struggle to fill their shopping basket.

"What's happening now doesn't look like the Special Period, because at that time it was really a disaster," she said.

Suddenly deprived of its big brother in Moscow - responsible for 85 per cent of Havana's foreign trade - the economy on the Caribbean archipelago ground to a standstill as it struggled to absorb the shock of Soviet collapse in the early 1990s.

Cubans suffered shortages of food and fuel and the emergence of diseases linked to malnutrition. Thousands fled, if they could.

For long since, the country has relied on medical and teaching services supplied to countries like Brazil and, in particular, Venezuela, in return for cheap oil imports. But trade with Caracas has plummeted as sanctions-struck Venezuela's economic crisis deepens. Tourism has been a bright spot but that has suffered after hurricane damage and a new US sanctions squeeze.

"For three years, Cuba has been trying to offset the impact of the slump in trade with Venezuela and the rise in tourism, private activity and foreign investment projects have helped cushion the economic shock," said Pavel Vidal, a Cuban economist at the Javeriana University in Colombia.

"But the measures and threats of the Trump administration are posing obstacles to these three factors that have helped keep the economy afloat." Cuba recently defaulted on a portion of its debt to Brazil, a big supplier of poultry.

At the end of 2018, Havana had accumulated short-term debt of $1.5 billion, according to former economy minister Jose Luis Rodriguez.

"There is a level of debt that we will not be able to pay (in 2019) and that's affecting the smooth running of the economy," the current portfolio-holder Alejandro Gil said.


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