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In a striking validation of Milton Friedman’s famous warning about government inefficiency, Cuba, an island traditionally abundant in sugarcane, now finds itself in the peculiar position of importing sugar to meet domestic demand.

The situation has become so dire that sugar prices have skyrocketed, with CiberCuba reporting that a single pound now costs around 600 pesos, equivalent to approximately $25 USD.

During a recent National Assembly of People’s Power session, Cuban Prime Minister Manuel Marrero Cruz acknowledged this embarrassing reality, referencing Raúl Castro’s previous statement that “it would be an embarrassment to have to import sugar.” Cruz confirmed, “and well, we are experiencing that embarrassment because we are importing sugar.”

The crisis extends beyond domestic supply issues. According to CiberCuba, Cuba has ceased sugar exports entirely, abandoning what was once a cornerstone of its economy.

BBC correspondent Will Grant’s recent investigation provides additional insight into the industry’s collapse. His report introduces Miguel Guzmán, a generational sugarcane worker who represents the human face of this crisis.

“Cutting cane is all Miguel Guzmán has ever known. He comes from a family of farm hands and started the tough, thankless work as a teenager,” Grant’s piece begins, setting the stage for a story of decline.

The numbers paint a stark picture. Cuban sugar production plummeted to a mere 350,000 tons last season, a dramatic drop from the 1.3 million tons produced in 2019. The industry’s deterioration stems from multiple factors, including inadequate infrastructure investment, mismanagement, and a pivot toward tourism.

“There’s not enough trucks and the fuel shortages mean sometimes several days pass before we can work,” Guzmán explained from his position in minimal shade, awaiting the arrival of aging Soviet-era vehicles.

Despite being among the most efficient workers in the country, Guzmán receives no performance-based compensation. “My wages barely buy anything any more,” he admitted. “But what can we do? Cuba needs the sugar.”

The government’s response to this crisis involves what they term an “internal resizing” of the sector. This initiative promises equipment modernization, enhanced worker support, and production structure adjustments. However, these measures have proven insufficient, with authorities acknowledging that more substantial structural changes are necessary for recovery.

The situation eerily mirrors themes from George Orwell’s “Animal Farm,” with workers like Guzmán resembling the novel’s steadfast horse, Boxer, who maintained unwavering loyalty despite mounting adversity. Just as Boxer’s dedication ultimately led to his exploitation, Cuba’s sugar workers find themselves trapped in a system that offers diminishing returns for their labor.

Most workers likely share little of Guzmán’s expressed devotion, instead participating in what amounts to a mutual pretense: they pretend to work while the system pretends to provide for them.

As Cuba grapples with this unprecedented sugar shortage, the government’s proposed solutions notably exclude the one change that could genuinely address the root cause: abandoning the communist economic model that created these circumstances in the first place.