UBPC
Encyclopedia
A UBPC or Basic Unit of Cooperative Production, is a type of agricultural cooperative
that exists in Cuba
.
to the workers of the UBPC.
The law was passed to link the workers to the land, establish material incentives for increased production by tying workers' earnings to the overall production of the UBPC, and increase managerial autonomy and participation in the management of the workplace.
The Cuban government hoped that these structural changes in the agricultural sector, coupled with other economic reforms, would alleviate the hardships experienced during the Special Period
which followed the collapse of the Eastern Bloc
and the COMECON
.
Profitability is measured by the return on the investment measured in Cuban pesos. An UBPC that receives one peso of profit per 50 centavos invested is more profitable than one that receives one peso profit per 80 centavos invested.
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
that exists in Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
.
History of the UBPCs
The law authorizing the creation of UBPCs was passed on 20 September 1993. The law transformed many state farms into UBPCs. The law also granted indefinite usufructUsufruct
Usufruct is the legal right to use and derive profit or benefit from property that either belongs to another person or which is under common ownership, as long as the property is not damaged or destroyed...
to the workers of the UBPC.
The law was passed to link the workers to the land, establish material incentives for increased production by tying workers' earnings to the overall production of the UBPC, and increase managerial autonomy and participation in the management of the workplace.
The Cuban government hoped that these structural changes in the agricultural sector, coupled with other economic reforms, would alleviate the hardships experienced during the Special Period
Special Period
The Special Period in Time of Peace in Cuba was an extended period of economic crisis that began in 1991 after the dissolution of the Soviet Union and, by extension, the Comecon. The economic depression of the Special Period was at its most severe in the early-to-mid 1990s before slightly declining...
which followed the collapse of the Eastern Bloc
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...
and the COMECON
Comecon
The Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...
.
Performance of the UBPCs
The profitability of a UBPC is influenced by the type of crop it grows, with those growing milk or sugar, for example, being less profitable than those growing livestock or citrus.Profitability is measured by the return on the investment measured in Cuban pesos. An UBPC that receives one peso of profit per 50 centavos invested is more profitable than one that receives one peso profit per 80 centavos invested.