With stark income inequalities rooted in its dual currency economy, Cuba is taxing down high and unearned incomes, while trying to raise national productivity and official salaries through performance-related pay and labor restructuring. Such measures are portrayed as an abandonment of socialism, but in Cuba are discussed in terms of historic socialist debates about distribution and the balance of moral and material incentives at work, in a society still characterized by common ownership, social protection, and collective debate.
Argues that China has gained influence in multilateral institutions, prompting them toward greater acceptance of public spending in developing countries and that recent developments in Cuba show that China is actively encouraging the Western hemisphere's only communist country to liberalize its economy. China sits at the crossroads of these local and global developments, prompting Cuba toward rapprochement with international norms even as it works to reform them.
