Ortega worked as a receptionist in a local Communist Party of Cuba office until five years ago. Her monthly pension is 15,575 pesos, but inflation has made it worth less than $5 for the past three years.

She explains, “I try to disperse it across meals, meds, whatever I can.”

She is just one of many elderly Cubans who have become nearly penniless as the communist government, reeling from a severe economic crisis, turns to private industry.

Ortega resides with her dumb and deaf daughter. They’re alone themselves. No other relatives are available to assist.

This was not how the revolutionary generation in Cuba was supposed to live. They received promises of free food and healthcare from birth to death in exchange for their selfless dedication to society.

Che Guevara declared, “Man [will] begin to free his thinking from the irritating requirement of feeding his animal wants through work.”

Even so, many older people are shocked at how quickly the revolution they dedicated their lives to has abandoned them, when they are most vulnerable, as private stores spring up all over the Caribbean island and the bodegas that supply state-subsidised rations become more empty.

According to Ortega, “We lived with a dream, with a commitment. And then, everything vanished.”

A growing segment of Cuban society is the elderly. The population’s increased life expectancy into the high 70s, matching that of the United States and the United Kingdom, was a victory of the 1959 revolution. Currently, 22.6% of people over 60 live alone, with 221,000 of them being women.

The current flight of young people has intensified these trends. Cubans have either joined the Latin American caravans heading for the US border or have discovered methods to migrate to Europe as the country’s economy declines. Although opinions differ, estimates generally concur that the island’s population has significantly decreased from the 11 million people listed in a 2012 census. It was as low as 8.62 million, according to an independent demographer’s assessment recently.

Former ambassador Carlos Alzugaray, 81, adds, “One of the hardest things for my colleagues is that their children are outside Cuba. And after making so many sacrifices, they are now financially dependent on them.”

Alzugaray, a member of the Communist Party, expresses such outrage at the circumstances that he declares, “I would go to a rally in front of the Ministry of Labour and Social Security if some elderly people gathered together tomorrow.”

That is an astonishing claim in a nation where protests are uncommon and virtually never accepted.

“I’ve worked in two different professions,” Alzugaray declares, as he continues, “Both provided assistance to the Cuban Revolution’s government.”

One was a 35-year career in the Ministry of Foreign Affairs. The other was fifteen years as a professor at a university. Additionally, I receive 2,330 pesos ($6.50) per month.

The government’s lack of reaction surprises Alzugaray. He claims that there is no indication that they are concerned about the issue. or that they intend to take action in response. They disregard the problem, as they always do when faced with one.

The six-decade American embargo on Cuba, the communist state’s ailing central planning, and the island nation’s inability to recover from the COVID pandemic are all responsible for the collapse of its economy. Since it appeared for a moment that the government couldn’t afford to import food, shops and other small and medium-sized private enterprises (Mipymes) were authorised in 2021.

Though not everyone has benefited from these establishments, some Cubans who get money from family overseas have found them to be quite helpful. Even an ambassadorial monthly pension is insufficient to pay for a tray of eggs, which costs 2,500 pesos. As a result, it is becoming common to see elderly people staring at necessities like cooking oil that they cannot buy.

The government has now decided to regulate the price of necessities like cooking oil and chopped chicken, blaming the Mipymes for their “speculation.” But even these commodities, should the private stores keep selling them, are too expensive for retirees (cooking oil has a restriction of 950 pesos).

The head of the Ministry of Public Health’s Department of Older Adults, Social Care, and Mental Health is Dr. Alberto Fernández Seco. He contends that Cuba is still in a better position than other nations to handle “a worldwide problem” of ageing because of its “high level of education, balanced nutrition, sports, and access to culture.”

He outlines Cuba’s remarkable efforts to care for the elderly, citing the establishment of 304 Casas de Abuelos, or drop-in centres, where senior citizens can congregate, get meals, and get medical assistance. Also, 158 care facilities provide beds for the poorest of the poor. Claiming the reverse to be true, he brushes away claims that care facility beds are disappearing and that fewer people are visiting the Casas de Abuelos as rates rise.

To share this duty with the private sector, he argues, “We’re starting to design policies.”

These are private businesses that would have been unimaginable a few years ago. For instance, TaTamania provides “personalised care” to senior citizens through the use of “health sector professionals” from six locations located throughout Cuba. Monthly costs begin at approximately $150 and quickly increase according to the individual’s demands.

Most of the money comes from overseas families. The government intends to let these businesses branch out into care homes in addition to home care, with 10% of the costs going toward meeting the needs of individuals without families.

According to Fernández Seco, “Sharing responsibilities with the private sector does not contradict the successes of the revolution.”

Elaine Acosta, a sociologist from Florida International University who founded Cuido 60 to investigate the living conditions of Cuba’s elderly, noted that the expatriate families are aware that 10% of their fees are being redistributed, but the money raised is insufficient to address the problem.

She said, “A bigger issue is that organisations in civil society that could be of assistance are unable to secure funding from foreign foundations or others.”

According to Fernández Seco, the government is also giving older people more rights, such as the option to postpone retirement.

“You can continue working and collecting your income and pension as long as you maintain the appropriate level of mental and physical fitness,” he explains.

He continues, saying that although it might not be what was promised, Cubans should keep in mind how fortunate they are in comparison to citizens of other nations where drug use, human trafficking, and organ theft are issues.

“There are moments when we are unable to recognise our blessings,” he added.

Elvio Agramonte de los Reyes, a bit stooped but carrying himself like the Camagüey man he is, raised in the most courtly of the Cuban provinces, pushes a wheelchair up San Lázaro Street. He is selling a basket of coriander and mangoes to bystanders from the chair.

The 85-year-old said, “I get 1,100 pesos from the government. That’s what I live with, along with what I search for on the streets. I am in a better position. I don’t drink coffee, smoke, or use rum. I did consume a lot of rum, but I developed cerebral ischemia, so they advised me not to touch it anymore.”

Like Martha Ortega, all he has to go on in life is a crippled daughter. She was born with a mental illness. She receives a 2,000 peso pension while not working.

He heard Che Guevara’s call when he was a young man.

“Cher invented volunteer labour. I took part in every activity. I cut, cleaned, and planted cane. Although there are benefits to building schools and hospitals with free medical care, it’s now backfiring like a cow’s tail. For those of us who are elderly and without relatives…” He pauses, and a woman who has come to purchase coriander says, “They are dying of hunger, to fill the void.”

The post Living on pennies: The plight of elderly Cubans appeared first on International Finance.

The family was critical to the production and sale of the goods. Because of the lifestyle’s relative difficulty, people chose to make household goods and products. However, the development of cutting-edge technologies revolutionized Britain’s manufacturing sector. Moving from rural to urban regions in search of a better life was another feature of the Industrial Revolution.

Powered equipment made industrial processes more efficient, encouraging the expansion of factories and the mass production of commodities. This situation brought about a lot of positive effects for society as well as several social issues, hardship and societal discord. The essay sheds light on how the industrial revolution affected people’s lives, paying particular attention to influencers like Adam Smith, James Watt, and Wedgwood.

Before the industrial revolution, agricultural societies powered large machines using windmills and water wheels. In the early 1700s, new technologies swiftly replaced the old machinery. A significant development for rural culture during this period was the development and use of the first steam engine to pump water. James Watt created a new steam engine in 1782 to power factory machinery. Numerous scientific and technical advancements enhanced Britain’s economic situation and citizens’ quality of life.

The railway building, which allowed people to travel from their native small villages to more urbanized areas, was another significant feature of the Industrial Revolution. As more people moved into cities, there was a rising need for amenities like housing, sanitation, and entertainment areas. Many were unhappy due to this circumstance since they were ill-equipped to cope with the new urban lifestyle. The confined, unhygienic spaces typical of the country lifestyle set it apart from city life. Factory owners understood a growing demand to develop residential homes quickly to accommodate people due to the increased migration from rural to urban areas. In the cities, back-to-back houses that shared a wall with a factory or another building started to be typical.

These construction methods frequently needed drainage systems and were crowded. As a result, people didn’t have much information about germs. Thus, diseases like cholera, typhus, and typhoid spread widely among city dwellers. For instance, between 1830 and 1867, a cholera outbreak struck Britain due to sewage runoff contaminating the water, which resulted in several fatalities. Over 7,000 people died in London between 1831 and 1832. The working class, considered poor, developed tuberculosis at a higher rate than the general population due to a poor diet, cramped living conditions, and moisture. In addition, city residents’ lung issues increased due to air pollution from industrial gases and effluents.

The living conditions were far better than the working conditions in the cities. As factories sprang up quickly during the Industrial Revolution, people in rural areas stopped being their employers and started working for them. The development and application of machines to most tasks that once required human labour led to the displacement of worker roles. As a result, the working class was compelled to support themselves by running, maintaining, or refuelling this industrial machinery, which was a taxing job.

As a result of inadequate urban policing, worrisome levels of poverty and despair, and increased crime, overcrowding in jails and prisons followed. Beginning in the early 19th century, more judges were available to address complaints and issue warrants to arrest criminals. This circumstance gave rise to a different problem that the middle class had to deal with. Due to the increase in industrial slums in the cities’ environs, this group was afraid of crime. The middle class became anxious and started protest activities against the urban slums. Increased prosecution rates resulted from this circumstance, and most working-class members could not pay them.

Adam Smith, the “father of capitalism,” was instrumental in reshaping the British economy. The Scottish philosopher held that people frequently exhibited self-interest, mainly regarding economic issues. He pushed the British government to promote free markets and trade in various instances and these ideas later emerged as the hallmarks of modern capitalism. Following the Industrial Revolution, many people toiled in mines and factories for a few pence a day.

Factory owners took advantage of the lower-class people who merely needed a few pennies to survive. Smith established that labour, manufactured goods, and agricultural outputs together made up a nation’s wealth to refute this motivation. As a result, for a country to increase its economic output, it had to ensure the division of labour. Workers began to specialize in various occupations. According to the philosopher, everyone would benefit from a free market because there would be no government involvement in company decisions. This included persons from disadvantaged backgrounds.

But around this time, child labour started to pose a severe hazard. In fact, during the Industrial Revolution, children made up nearly 80% of the labour force. If accidents happened in manufacturing, they were simple to replace and quick to hire for employers. Due to their disadvantaged upbringing, several affluent factory owners offered food and shelter for kids in exchange for labour. Additionally, recruiting kids was less expensive than hiring adults. However, this circumstance puts kids at risk for factory mishaps. Children continued to work in these factories, generation after generation because there were no laws protecting them.

Numerous commodities, especially luxury goods, were only available to the privileged members of society due to the social and economic changes brought on by more incredible agricultural innovation, proto-industrial activity, and the expansion of international trade. However, when more people moved into cities, they had more access to luxury items, which eventually trickled down to the middle class. Therefore, the merchant wanted to exploit the market and the rising demand.

Due to this circumstance, regional goods were created to compete with imports from other nations. Due to increased technological advancement during this time, the manufacturing of ceramic goods improved. Josiah Wedgwood, in particular, fueled the eighteenth-century demand in England for porcelain goods, such as tableware and decorative items. His involvement and actions in the market for luxury goods helped others recognize the sector’s significance. Most individuals preferred to work for pay in factories due to improved agricultural innovations, which accelerated rural-urban migration. As a result, the need for excellent goods that set some people apart from the rest of society grew. Eating behaviours evolved for the middle class. For instance, introducing Chinese tea sparked the growth of teaware, tearooms, and tea breaks.

Sociological changes during the era

Industrialization profoundly impacted the social class structure, leading to significant societal changes.

With the rise of factories and mass production, a new social class, the industrial working class or the proletariat, emerged. This class consisted of manual labourers who worked in factories, mines, and other industrial settings. They often faced harsh working conditions, low wages, and long hours, forming the lowest stratum of the social class structure.

Industrialization also gave rise to a middle class, which comprised professionals, managers, skilled workers, and entrepreneurs. This class benefited from the expanding industrial economy and enjoyed a higher standard of living than the working class. They often held white-collar jobs and had greater social mobility.

As industrialization progressed, there was a shift from agrarian-based economies to industrial economies. This led to a decline in the agricultural class, as traditional farming methods were replaced by machinery and large-scale farming practices. Many individuals from rural areas migrated to cities in search of factory employment, contributing to the growth of the working class.

Another creation was in the form of significant wealth distribution disparities. The capitalist system, which accompanied industrialization, allowed small individuals to accumulate vast wealth by owning industries and businesses. This resulted in a widening wealth gap between the wealthy elite and the working class, leading to increased social inequality. However, industrialization also created opportunities for upward social mobility. Education became more accessible, and lower-class individuals could acquire skills and education to improve their social standing. The middle class, in particular, experienced upward mobility as individuals moved from lower-class backgrounds into professional and managerial positions. It challenged traditional social hierarchies based on birthright and land ownership. The influence of nobility and aristocracy declined as wealth and status became more closely tied to industrial and commercial success. Economic power and meritocracy began to replace inherited social status as the primary determinants of social standing.

The industrial working class often developed a sense of solidarity and recognized shared interests in improving their conditions. They organized strikes, protests, and collective actions to exert pressure on employers and governments. These movements aimed at immediate improvements and fostered the development of broader political ideologies, such as socialism and communism, which sought to address the underlying issues of inequality and class exploitation. Over time, societal and political pressure led to the introduction of social reforms and workers’ rights. Governments enacted legislation to protect workers, including establishing minimum wage laws, limitations on working hours, workplace safety regulations, and recognizing labour unions. These reforms helped improve the lives and working conditions of industrial workers.

It’s important to note that the impact of industrialization on the social class structure varied across countries and regions, depending on factors such as the pace of industrialization, political systems, and cultural contexts. Nevertheless, automation was central in reshaping many societies’ social classes and power dynamics.

The Industrial Revolution was a transformative period that positively and negatively impacted society. It brought about significant changes in production methods, transportation infrastructure, and living conditions. However, it also led to social issues like poverty, disease, and inequality. The emergence of the working class, the middle class’s growth, and the agricultural class’s decline were significant changes in the social class structure.

While industrialization initially led to increased inequality, it also created opportunities for upward social mobility and challenged traditional social hierarchies. Ultimately, the Industrial Revolution laid the foundation for modern society and set the stage for further technological advancements. Therefore, it is essential to understand the effects of industrialization on society to address current and future challenges effectively.

The post How industrialization shaped our society appeared first on International Finance.

Suparna Goswami Bhattacharya   

February 6, 2015: Back in 2013 when majority of Egyptians were busy revolting against the then president Mohammed Morsi, there was a parallel revolution going on in Egypt involving the young from the tech world, which gave birth to Cairo’s startup culture.

Today, with a bustling population of around 90 million, 50% of whom are below the age of 27 and tech savvy, Egypt is suddenly in the race to be the fastest growing entrepreneurial hub in the world. And it has a lot of factors going for it — internet penetration is around 45%, a fast growing ecommerce base (expected to grow by 36% by 2016 according to research conducted by Jumia, an Africa-based ecommerce retailer), and a young population, which is tech savvy. And, the best aspect of doing business in Cairo lies in the ravenous spirit of its entrepreneurs and the massive opportunity the country provides in terms of a huge market.

For many, the tough economic condition in Egypt has been a blessing in disguise.

“Egyptians would not have survived without their entrepreneurial spirit given the tough economic conditions and lack of employment opportunities,” says Hanan Abdel Meguid, a prominent entrepreneur and an active angel investor based in Cairo.

It all started five years ago when US President Barack Obama visited Cairo and pledged a new fund ($455 million) for the Middle East to support the growth of startup businesses. Egypt was the first recipient of the fund, which helped various organisations fund startup weekends, competitions, training and so on. However, this got accelerated by the revolution in 2011 when thousands took to the streets to protest against lack of freedom of speech, high level of corruption, rising unemployment and income gaps. The movement toppled the government and gave the youth hope in a way that never existed before.

The movement had a spillover effect, which saw the return of some Egyptian diaspora from across the globe who then set up investor groups, incubators and co-working spaces. Many venture capitalists showed renewed interest in the region and some started their own firms.

Investors are now investing big time in firms in the food sector, ecommerce and the payments sector. “With the extreme centralisation in our big cities and a lack of proper retail experiences, the need for ecommerce is very clear. This provides a great opportunity to Internet services firms. Hence, in terms of product and revenue, these firms have moved faster than the rest,” says Meguid.

As a result, Egypt, or rather Cairo, today is home to many successful startups. The year 2014 saw Shahiya.com, the largest cooking recipe site in the Middle East, being bought by Japan’s Cookpad for $13.5 million.

There are numerous other success stories as well. While some startups want to continue focusing on Egypt, there are some who want to take their product and services to other countries. Con O’Donnel, entrepreneur and investor in Egypt, says, “Those who want to focus on the global market develop a product or service and then test the same in Egypt. At the same time, there are many who are content with focusing just on Egypt.”

Besides ecommerce and food, technology in healthcare, education and energy are other sectors on which investors are betting big time. “Apart from technology, startups focusing on providing financial services to serve the unbanked and under-banked have a bright future. Also, given the engineering talent among Egyptian graduates, there are specific opportunities in semiconductor design, hardware products, analytics and security,” says Ahmed Alfi, CEO, Sawari Ventures, a venture capitalist firm. Alfi has invested millions of his own fortune in growing Egypt’s tech startup scene.

Egypt is now attracting startups from neighbouring countries as well. Many are relocating to Egypt to start their businesses. Many startups from neighbouring countries attended the RiseUp Summit in October 2014. “The summit drew investors from European capitals, Silicon Valley and from around the region. It also saw entrepreneurs from Morocco and Iraq. We are hoping for a much bigger summit this year,” remarks O’Donnel.

Yet, Egypt is still a long way from being the next Silicon Valley. The education system in the country is yet to cultivate an entrepreneurial spirit among students. The country also needs more investors who are ready to put in their money in a startup.

Though the government has announced big funding initiatives, it is not yet clear how they will run it. Their incubators and accelerators are poorly managed, and much of the funds they allocated made no impact. The government is still trying to work out the best way to grow entrepreneurship.

Though Egypt has started well on the startup front, it needs to follow up well to see the next Google or Facebook coming from the country.

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