- · A. Plan of Investigation
The investigation assesses the impact the Agrarian Reform Law had on Cuba’s economy under Castro’s leadership from 1959 to 1963. To evaluate the economic effects caused by the Reform, the investigation analyzes the policies and procedures conducted by the National Institute of Agrarian Reform (INRA). The investigation examines the condition of the economy from perspectives of Fidel Castro, Che Guevara, the Cuban population, and various historians. Also, peer-reviewed journal articles and speeches from Castro and Che Guevara are primarily utilized to obtain perspectives on the Reform’s economic impact. One source used was Agrarian Reforms in Cuba, 1959-1963, by James O’Connor which was published in the journal, Science and Society. Another source utilized was The Cuban Economy: It’s Past, and It’s Present Importance by Ernesto Che Guevara which was published in Royal Institute of International Affairs journal. By considering perspectives from various sources, the effect of the Reform on Cuba’s economy from 1959 to 1963 can be better understood.
- · B. Summary of Evidence
- · · The agriculture sector has sustained the economy since America’s discovery in the 16th century, when sugar cane was brought to Cuba. (Economy Watch, 2010).
- · · The Agrarian Reform was the first law approved by the revolutionary government on May 17, 1959, (Fernandez, 1992).
- · · The Reform was the revolution’s “basic law” transforming the economy from a privately-owned, capitalistic system into a planned economy. Castro founded the National Institute of Agrarian Reform (INRA) and appointed trusted members of the Rebel Army to implement reform. INRA members had the revolutionary spirit and desire to implement reform; but, lacked the technical expertise necessary to achieve its objectives (O’Connor, 1968).
- · · Before 1959, two types of production centers existed: large latifundios (private-owned plantations) and small farms. The latifundios were predominant and exploited hundreds of workers, while small farmers either owned or leased a small piece of land. (Che Guevara, 1964).
- · · Before Castro, fertile land wasn’t utilized to its full potential and unemployment was high in Cuba’s agricultural provinces. Agricultural workers moved to the city, however, there weren’t enough jobs for everyone (Brown, 1994).
- · · The Reform included the liquidation of the latifundios and of the rent system, the utilization of unused land to its full potential, the redistribution of income in favor of the poorest, and the diversification of agriculture. (Castro, 1963).
- · · The Reform introduced large-scale organized agricultural systems and cooperatives under government control (Che Guevara, 1964).
- · · Under the Reform, the campesinos (peasants) never truly owned the land even though Castro’s philosophy was that whoever worked the land, owned the land (O’Connor, 1968).
- · · The INRA mandated what campesinos could plant, where they could sell the harvest, and at what price. The campesinos couldn’t sell or purchase land, nor earn a profit from the harvest. The peasants lost the will to plant crops and till lands, causing a food shortage in 1962 and a rationing system that still exists (Perez, 2006).
- · · The National Association of Cattle Ranchers, the Sugar Mill Owners Association, and the Association of Tobacco Planters all predicted economic demise because of the limitation on land ownership, warning that the Reform threatened to cripple national production (Perez, 2006).
- · · The farms, sugar mills and cattle ranches were forced to accept the financial subsidies provided for growth but also the government’s decisions on “technical matters” which was an intentionally vague term allowing for control over operational, financial or ownership matters. By 1961, about 40% of the land, including 630 cooperatives, was nationalized (Che Guevara, 1964).
- · · In the name of diversification, INRA reduced sugar production even though it yielded the highest benefit (Rodriguez, 1987).
- · · By 1962, over 180,000 Cubans, including a myriad of technicians, managers and professionals, had emigrated after witnessing the management of the Reform and perceiving Cuba’s path towards communism (Perez, 2006).
- · · In 1963, the second Agrarian Reform Law was passed where 70% of land became government owned (Rodriguez, 1987).
- · C. Evaluation of Sources
O’Connor, James. “Agrarian Reforms in Cuba, 1959-1963.” Science & Society 32.(1968): 169-217. Humanities & Social Sciences Index Retrospective: 1907-1984 (H.W. Wilson). Web. 4 Oct. 2012.
Agrarian Reforms in Cuba, 1959-1963, written by James O’Connor and published in Science and Society, is an in-depth report on the developments of the Reform that occurred in the first five years of the revolutionary leadership. The purpose of this source is to highlight the economic effects that the first Agrarian Reform had on the primary industries of Cuba such as the sugar and the cattle industries. The value of this source lies in the fact that it is published in a peer-reviewed journal, thus ensuring the validity and the reliability of the information. It’s also valuable because it incorporates statistical evidence such as the percentages of the expropriation of farmland and cultivated land, as well as, percentages of exports of agricultural products which provide the majority of the country’s income. This is important to know because the Cuban economy is heavily reliant on agriculture. This source will aid the investigation by providing figures on production and exportation of major products, which will help generate a portrayal of Cuba’s economic condition. A limitation is that the source was published many years after the implementation of the Reform, thus it’s limited to second-hand information which cannot provide first-hand insight of the matter. Another limitation is the source only focuses on one sector of the economy, thus making it difficult to obtain a holistic view of the Cuban economy.
Che Guevara, Ernesto. “The Cuban Economy: Its Past, and Its Present Importance.” Royal Institute of International Affairs 40.4 (1964): 589-99. Print.
The Cuban Economy: It’s Past, and It’s Present Importance is written by Ernesto Che Guevara and is published in the Royal Institute of International Affairs journal. The purpose is to discuss the economic policies established under Castro’s regime and evaluate their effects. It’s of value because it’s a primary source written by Che Guevara who was the head of the Cuban National Bank and of the Ministry of Industry. Essentially, he oversaw Cuba’s conversion to communism. Thus, having a source written by Che Guevara is extremely valuable because it provides insight on Cuba’s economy from the person mainly responsible for it. Furthermore, the source is valuable as it’s published in an academic journal, thus increasing the reliability and authenticity of the source. The source is limited because Che wrote it in 1964 shortly after the Reform. Therefore, it’s a limitation as it doesn’t allow for a long-term, historical perspective on the matter which is sometimes necessary to properly evaluate the impact of economic changes. As Che himself stated “it is for history to judge” (Che Guevara, 1964). Another limitation is Che’s opinion of Cuba’s economy doesn’t represent the opinions of the Cuban population. The source is also limited because Che has his own agenda to ensure economic success. Therefore, it’s expected to depict a more favorable outlook on the Reform’s effectiveness, making it difficult to distinguish its true impact on Cuba’s economy.
- · D. Analysis
The Agrarian Reform Law of 1959 initially appeared to be beneficial to the economic interests of the people and country according to O’Connor. As expressed by Castro in his speeches, it was the path for the peasantry to be liberated from exploitive land owners. According to Castro, it would allow the peasantry to own land and share the wealth. Castro’s philosophy is conveyed when he said in a speech “let us work for all, so that all will work for each one of us” (Castro, 1963). Thus, the Reform initially received the unanimous support from the campesinos, which constituted the majority of people residing in the island’s rural areas (O’Connor, 1968). O’Connor asserts the Reform was a wonderful and idealistic concept, but never materialized as presented, since the peasants never truly owned any land (O’Connor, 1968). Historians such as O’Connor, Perez, and Rodriguez firmly agree the Reform ultimately failed to improve the economy and that the majority of Cubans soon became disenchanted with Castro’s reform policies. These historians claim the main objective of the regime’s Agrarian Reform was to control and replace the inequities of previous land owners with the inflexible demands of a planned economy, managed for the sole purpose of eliminating Cuba’s wealthy class, anti-communist latifundios, and private enterprise.
According to Perez, one reason why the Reform failed to advance the economy was because many rice growers, cattle ranchers, tobacco farmers, and sugar mill workers protested the changes, declaring that it would hurt the future potential from foreign investors and free enterprise. For example, the Reform wouldn’t allow peasants working the cooperatives to sell or buy more land (Perez, 2006). Nor were they allowed to profit from the harvest. The peasants invested in the crops and expected profits, but the regime set artificial and unrealistic prices (Perez, 2006). As peasants lost money, they lost the incentive to cultivate, creating food shortages and a rationing system in 1962 (Perez, 2006). This tension expedited the government’s plan to seize properties by force. Perez states that the INRA was forced to seize property at a higher rate than was initially foreseen in an attempt to maintain the growth of Cuba’s agricultural system. Not only did workers refuse to sow the seedlings for the next harvest, but cattle ranchers rapidly slaughtered their cattle for money before losing their businesses and having properties confiscated (Perez, 2006). The campesinos, Perez expresses, could no longer count on private loans and had no guarantee of property ownership. By 1961, about 40% of the land, including 630 agricultural cooperatives, was nationalized (Che Guevara, 1964). The resistance to the Reform by many of the workers and the subsequent food shortages led to the economic hardship in Cuba.
O’Connor explicates another reason the Reform failed to bolster the economy is that the INRA lacked the technical expertise pertinent to agricultural production. The Reform was conducted through a method of unorganized trial-and-error (O’Connor, 1968). For instance, in cases where latifundios were replaced with cooperatives, the INRA mandated what to grow, where to sell the harvest, and at what price (O’Connor, 1968). This resulted in INRA leaders failing to consider critical factors such as appropriate soil conditions, water availability, and peasants’ familiarity with certain crops. The lack of agricultural savvy caused a decline in agricultural production, thus hurting the economy (O’Connor, 1968).
Agricultural diversification was another Reform objective adversely affecting the economy, according to Rodriguez. Viewing diversification as a positive step, the government reduced the production of sugar (Rodriguez, 1987). Foolishly, they associated sugar with American dependency, and by reducing its production, detrimentally affected the influx of money since the majority of income came from the exportation of sugar (Rodriguez, 1987). As a result, an economic downturn occurred as the island lacked the money to purchase indispensable imports such as food, crude oil, and other raw materials (Rodriguez, 1987).
Lastly, there was an indirect effect of the Reform Law which significantly hurt the economy. As stated by Perez, the country’s well-educated professionals observed how the Reform was being implemented and perceiving the future effect of Castro’s authoritarian rule and wanting no part of communism, quickly fled Cuba. By 1962, over 180,000 Cubans, including a myriad of technicians, managers and professionals, had emigrated (Perez, 2006). Thus, not having these valuable citizens would deplete the country of trained personnel in the workplace and would ultimately affect the potential growth of the economy (Perez, 2006).
- · E. Conclusion
The true goal of Castro’s authoritarian government was to show the world a triumphant socialist agrarian reform. It wasn’t to allow peasants to own land or to choose their crops and profit from their sales. Instead the government replaced the latifundistas with revolutionary leaders who weren’t agriculturists, but could be trusted to work towards creating a planned economy. Castro’s Reform didn’t benefit the peasants or the Cuban people. The farmers became disenchanted with the Reform and lost the incentive to work and cultivate crops, causing food shortages. Essentially, the Agrarian Reform was an attempt by the government to control land, industry, and the distribution of wealth. It never allowed private enterprise or freedoms that would allow peasants to have the free commerce necessary to prosper and be able to buy tools and fertilizer. After several years, the government had seized nearly all the cooperatives and had expropriated the latifundios to ensure the regime’s survival. Due to these issues in the First Agrarian Reform, Cuba’s economy wasn’t improved from 1959 to 1963. A final indication underscoring this conclusion is that in 1963 another Agrarian Reform was implemented signifying the first Reform did not accomplish its objectives.
Works Cited
Brown, Warren. “Fidel Castro: Cuban Revolutionary / By Warren Brown.” n.p.:Brookfield, Conn.: Millbrook Press, 1994., 1994. University of South Florida Libraries Catalog. Web. 4 Oct. 2012.
Castro, Fidel. Cuba’s Agrarian Reform: A Speech. New York: Fair Play for Cuba Committee, 1963. Print.
Che Guevara, Ernesto. “The Cuban Economy: Its Past, and Its Present Importance.” Royal Institute of International Affairs 40.4 (1964): 589-99. Print.
“Economy Watch – Follow The Money.” Agrarian Reform Law of 1959. N.p., n.d. Web. 08 Nov. 2012. .
Fernández, Damián J. “Cuban Studies Since The Revolution.” n.p.:University Press of Florida, 1992. eBook Collection. Web. 4 Oct. 2012.
O’Connor, James. “Agrarian Reforms In Cuba, 1959-1963.” Science & Society 32.(1968): 169-217. Humanities & Social Sciences Index Retrospective: 1907-1984 (H.W. Wilson). Web. 4 Oct. 2012.
Pérez, Louis A. “Cuba: Between Reform And Revolution.” n.p.:Oxford University Press, 2006. eBook Collection. Web. 4 Oct. 2012.
Rodríguez, José L. “Agricultural Policy And Development In Cuba.” World Development 15.(n.d.): 23-39. ScienceDirect. Web. 23 Oct. 2012.
