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Cuban National Income Held by Econornically Active Population, Estimated Shares, by Percentile Group: 1953-1973 126 A Chronicle of Dependence: Cuba fkom the Rise of Sugar until the Failure of the Ten Million Ton Zafra of 1970 D. Brian Hunter in The Department of History Presented in Partial Fulfillment of the Requirements For the Degree of Master of Arts at Concordia University Montreal, Quebec, Canada August 1998 O D. Brian Hunter, 1998 National Library Bibliothèque nationale I*I of Canada du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliog wp hiques 395 Wellington Street 395. me Wellington Ottawa ON KIA ON4 Ottawa ON KIA ON4 Canada Canada Yom Votre relërence Our Ne Noire relërence The author has granted a non- L'auteur a accordé une licence non exclusive licence allowing the exclusive permettant à la National Library of Canada to Bibliothèque nationale du Canada de reproduce, loan, distribute or sell reproduire, prêter, distribuer ou copies of this thesis in microfonn, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfiche/nlm, de reproduction sur papier ou sur format électronique. The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts &om it Ni la thèse ni des extraits substantiels rnay be printed or otherwise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permission. autorisation. CONCORDIA UNIVERSITY School of Graduate Studies This is to ce- that the thesis prepared By: D. Brian Hunter Entitled: A Chronicle of Dependence: Cuba fiom the Rise of Sugar until the Failure of the Ten Million Ton Zofa And submitted in partial fulfient of the requirements for the depe of Master of Arts (History) Complies with the regulations of the University and meets the accepted standards with respect to originality and quality. Signed by the fmal examining cornmittee: Chair Examiner Examiner Supervisor Approved by Chai.of Depârünent or Graduare Program Director 19 - Dean of Faculty iii A Chronicle of Dependence: Cuba from the Rise of Sugar untii the Faüure of the Ten Miilion Ton Zafra of 1970 Following a demonstration that the Dependency Theory still has much to offer as a vehicle for explahhg underdevelopment and development in the periphery (Third World), this study uses the dependency approach as the theoretical bework in an examination of Cuba's pre-revolutionary condition of underdevelopment and dependency, and the socialist path undertaken in the fmt decade of revolution. The study concludes with a summation of how the interrelation of extemal and intemal forces in pre-revolutionary Cuba resulted in a classic form of dependency, foliowed by revolutionary victory, and eventualiy socialism. Fmally, the study offers four observations based on sociaiist Cuba's development effort of the 1960s and the nation's failure to Limit extemal dependence during this pend Acknowledgements The author would like to make the following acknowledgements. First and foremost, he is deeply grateful for the direction, wisdom and fortitude offered him by Professor Carolyn Fick. Quite simply, the study would have never ken completed without her exceptional tutelage. As well, the author thanks Professor Graham Carr for allowing hirn the necessary to fniish the projec t .He wodd also like to thank Bob Whitney for m troducing him to the country of Cuba and Gaspar Quintana for introducing him to the people of Cuba. As well, the author appreciates the support he has received f?om his fiends, who have had to endure for far too long his oft-stated contention: 'TU be finished with my thesis very soon." Special thanks to John Ehinger for all of his help with the cornputer work. In Cuba, the assistance provided by Professor José Taberes was invaluable. As well, for their incredible hospitality and special friendship extended to the author while he resided in Cuba, he thanks Clara Alberni Berrojo and Albilio Guillot. Finally, the author cannot possibly express how deeply thankful he is to his mother for her support through what, at times, has ken an exceedingly diffkult process. For Murray C. Hunter (deceased) and Shirley J. Hunter my parents Table of Contents List of Tables und Diagrmm vii Preface viii Introduction - The Dependency Theory and Cuba I Chupter One - A Classic Case of Dependency: Pre-Revolutionory Cuba 13 Chapter Two - "A Mystificcrfr*onof Capitalkt Ideology" 54 Chapter Three - The Rehrrn fo Sugm 85 Chapter Four - The Drive Toward Communism and theTen Million Ton Zafra of IWO106 Conclusion 129 Endnotes 144 Sibliography 174 vii List of Tables adDiagrams Table 1 Progressive Coliectivization by Sector of the Means of Production (percentage) 67 Table 2 Cuban National Income Held by Econornically Active Population, Estimated Shares, by Percentile Group: 1953-1973 126 Diagram 1 Summary of the Budgetary Finance System 97 viii Preface The great global po wer has not yet found the weapon of destroying dreams, As long as if does not find it, we will continue to dream, in other words we will continue to triumph. -Subcomandante Insurgente Marcos of ihe Zaparïsm Movemenc in ~exico.' In 1952 econornist Paul Baran found one crucial obstacle blocking development for the world's underdeveloped nations. He put it diis way. "The economic and political order maintained by the niling coalition of owning classes finds itself invariably at odds with all the urgent needs of the underdeveloped economies. Neither the social fabric that it embodies nor the institutions that rest upon it are conducive to progressive economic devel~~rnent."~And because those who have profited fiom the staais qüo have had little or no interest in changing the system fiom which they have benefited so much, Baron was led to conclude: "The land not given to the peasants legally rnay be taken by them forcibly. High incomes not confiscated through taxation may be eliminated by outright expropriation. Compt officials not retired in orderly fashion may be removed by violent action .'13 Less than ten years later, Baron's prescription for removing the barriers to deveropment was foliowed by Fidel Castro and the 26th of July Movement in Cuba, culminating in revolutionary victory on January lSt,1959. On September 2", 1960 Castro triumphan tly pronounced before one million people in Revolution Square in the Declmation of Havana: 'This great people has said: ~nough.'~ In an attempt to radicaUy alter the prevaihg economic and social structure of Cuba, the revolutionary regime that came to power in 1959 adopted socialism as the vehicle for development. However, in the 1960s most nations in Latin America did not break with capitalist models of development; rather they remallied economically de pendent on monoculture economies, the export of raw materials, and a production process dorninated by foreign interests. The prominent Latin American economist, Celso Furtado, believed that by 1970 the developmental possibilities for Latin America, reliant on the success of these traditional means of development for underdeveloped nations, "are reaching or have aiready reached their limits.'" Furtado, dong with Ratil Prebisch, chair of the Economic Commission X of Lath Amenca (E.C.L.A.), were among a group of Latin Arnerican smicturalists who challenged the wisdom of conventional developrnental economic theory that viewed Latin America and other underdeveloped nations as simply farther back on the evolutionary path of development. Prebisch was one of the more disthguished schoIars whose work in the 1950s and 1960s, in part, led to one of the most important breakthroughs in Latin American economics, the Dependency Theory. Throughout the 1960s and 1970s a host of scholars questioned the status quo and the very nature of capitalût developrnent m Latin Arnerica and throughout the periphexy6One of the best lmown of these scholars was Ancire Gunder Frank He believed development in the mdustrialized world actually caused underdevelopment in the poorest regions of the world. This group of ciependentistas, which also included Fernando Henrique Cardoso, Irnmanuel Wderstem and Theotonio Dos Santos among others, identilïed many important structural limitations to development, both internally and extemally, in the course of their analyses. Many cailed for socialist revolution, and ail of them believed a fundamental change was necessary in the way Latin Arnerican economies worked. However, the heyday of Latin American structuralists and dependentistm was short- lived By the mid-1970s the Dependency Theory was under heavy attack both theoretically and by consequence of the policies it had helped put into practice. In 1973, following the overthrow of Chile's united fiont government Ied by sociaiist politician, Salvador Allende, and the aUeged failure of its economic policies, 'inward-directed' development strategies were vimially abandoned in Latin Americd These strategies, as advocated by most Latin American structuralists and dependentisras, argued for import-substitution through econornic diversification, growth of intemal markets and decreased reliance on exports in order to achieve self-sustahed gowth. Neo-liberal policies, which emphasize the complete in tepition of lesser developed countrïes (LDCs) into the world economy, have since dominateda Protectionist and interventionist policies have thus been disrnantled and replaced with anti- inflationary policies, while privatization has ken stressed. The allocation of resources has been govemed by international prices and the supposed comparative advantages of
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