The challenge of “updating” the guajiros
The Cuban government is facing a difficult task of convincing the farmers, especially those who grow tobacco, to adopt the banking reform that aims to reduce the use of cash and promote electronic payments. The official press reported on Saturday that the farmers have no culture of banking and prefer to keep their money in hand.
The banking reform is part of the economic “updating” that the government has been implementing since 2020, when it eliminated the dual currency system and unified the exchange rate. The reform also seeks to increase the efficiency and transparency of the financial system, as well as to facilitate the access to credit and savings for the population.
However, the farmers have shown little interest in opening bank accounts or using electronic cards to pay for their inputs and sell their products. According to the authorities, only 30% of the tobacco farmers in Pinar del Rio, the main producing province, have bank accounts. The rest prefer to deal with cash, which they consider safer and more convenient.
The obstacles and risks of cash transactions
The preference for cash transactions poses several challenges and risks for the farmers and the economy. One of them is the difficulty of transporting large amounts of money, especially in rural areas where there is a lack of security and infrastructure. Another one is the vulnerability to inflation, which erodes the purchasing power of cash over time.
The authorities have also warned that cash transactions facilitate tax evasion and money laundering, as well as hinder the development of a formal and modern economy. They have urged the farmers to embrace the banking reform and take advantage of its benefits, such as lower costs, faster transactions, and greater protection.
However, the farmers have expressed their distrust and dissatisfaction with the banking system, which they perceive as inefficient, bureaucratic, and unreliable. They have complained about the long lines, the frequent breakdowns, and the poor service at the banks and ATMs. They have also questioned the availability and quality of the electronic devices and networks that are needed for digital payments.
The need for incentives and education
The authorities have acknowledged that the banking reform requires not only technical improvements, but also cultural changes. They have recognized that they need to provide more incentives and education for the farmers to adopt the banking system.
Some of the incentives that have been proposed are: offering lower interest rates for loans and higher interest rates for deposits; granting subsidies or discounts for using electronic payments; creating special accounts or cards for farmers; and simplifying the procedures and requirements for opening accounts or obtaining cards.
Some of the educational measures that have been suggested are: conducting campaigns and workshops to explain the advantages and functioning of the banking system; providing training and assistance for using electronic devices and networks; and involving local leaders and organizations in promoting the banking culture among farmers.
The authorities have expressed their confidence that with these incentives and education, they will be able to overcome the resistance of the farmers and achieve a successful banking reform. They have stressed that this reform is essential for improving the productivity and profitability of agriculture, as well as for advancing towards a more dynamic and sustainable economy.
