Transformation of the Cuban Sugar Complex

Abstract

The production of sugar continues to be a subject of major relevance in any analysis of the Cuban economy, both because of its influence in the past development of the country and because of its present importance. In dealing with this subject, however, it is indispensable that the analysis reflect the qualitative changes that this traditionally stagnant subsector has undergone. I will first present a brief historical review before examining the changes that have occurred in sugar production in Cuba over the last thirty years. Although cultivation of sugarcane was in practice as early as the seventeenth century, it was not until the beginning of the nineteenth century that the area cultivated with this crop rapidly expanded. This growth in sugar production was prompted by four historical events of the previous century: the Industrial, the American, the French, and the Haitian Revolutions. The number of sugar mills more than doubled, and technological advances in industrial equipment were introduced as of the second decade of the century. Shortly thereafter, the use of the railway was extended to carry the sugar to the ports.' The first Cuban War of Independence (1868-1878) was fought primarily in the eastern part of the country. The resulting damage to sugar production was minor, for over 90 percent of sugarcane was cultivated in the western region. At that time sugar mill owners were either criollos (Cuban born, of Spanish blood) or foreigners living on the island. At the end of the first War of Independence, the total number of sugar mills had fallen to half the original figure, mainly due to a concentration phenomenon rather than to warfare actions. In the subsequent period (1880-1910), two factors developed simultaneously which were determinants for the future: first was the emergence of monopolies in the United States and their interest in exporting capital to Latin American countries, of which Cuba was a high priority. The second