The Cuban regime has opened the doors to the expansion of the private sector

Cuba has announced a substantial increase in private activity in various sectors, which implies a major reform in this socialist country where the state and its companies dominate the economy. The measure comes at a critical time for the island’s economy, which contracted by 11% last year due to the coronavirus pandemic, the strengthening of US sanctions and the delay in implementing the reforms approved ago. to drive its inefficient centralized cutting model.

In addition, its economy lost much-needed tourism dollars this year And the country can also try to work on trade liberalization with a new US administration in power, in the hope that the US will end its embargo on the island.

If the decision was announced several months ago as part of a package of measures to deal with the crisis, it was only approved by the Council of Ministers this week, according to a review published this Saturday by the Granma official journal.

Cuban Minister of Labor and Social Security Marta Elena Feito told the ministerial meeting that self-employed workers – known in Cuba as< travailleurs indépendants >> – must present a project and the procedures will take place through a one-stop shop, “which will make it possible to free up the productive forces in this sector”.

FROM 127 TO MORE THAN 2000 ACTIVITIES

For the moment, it has not been clarified which are the 124 prohibited activities, but the elimination of the list of authorized professions means that the private sector can enter the more than 2000 included in the national classifier of economic activities, a declared the minister.

It is to be expected that sectors such as health, education, telecommunications, energy or the press will remain among the restricted areas.All are strategic for the Cuban state for economic or politico-ideological reasons, and in some of them foreign investments are not allowed either.

The private sector employs 600,000 people and represents 13% of the working population, according to official data, although in practice the number is much higher. These 600,000 people hold a “self-employed” license, but in turn employ more workers in their company.

Cuban economists and the industry itself had spent years demanding the elimination of the list of permitted activities, seeing it as a drag on the country’s economy, and “self-employment” as the greatest potential source of loss. job creation.

Autonomy is also one of the areas hardest hit by the latest US sanctions and the pandemic. Much of it was dedicated to tourism and services, struck first by the new punitive measures in Washington and then completely paralyzed by the covid: among the most coveted licenses for years have been those of private restaurants (“paladar »), Room rental for tourists and transporters.

“This is good news. A step in the right direction which, unfortunately, has taken too long,” said economist Ricardo Torres. The specialist also hopes that this measure will be supplemented as soon as possible “by similar changes regarding the possibility of setting up private enterprises up to medium-sized (SMEs) and cooperatives “, with reference to the long-awaited company law, the approval of which is still pending.

“This is a huge and historic step. This implies a paradigm shift with regard to self-employment, which has always been subject to a list of activities that could be exercised, leaving everything that was not authorized illegal, “said Oniel Díaz, co-founder of the AUGE strategic council advises on the creation and management of entrepreneurial companies in Cuba.

For Díaz, the measure “promotes and creates better conditions for the constitution” of SMEs and cooperatives.

“If with a meager list of permitted activities with inflexible scope, a shortage of raw materials, flawed regulations and economic sanctions we were able to build businesses against all odds, this new scenario opens a path in which there is no will have no setback for us. play an increasingly important role in the national economy, ”he said.

ACCELERATED REFORMS

También el ministro cubano de Economía, Alejandro Gil, calificó la eliminación de la lista como “un paso muy important en función de ampliar las posibilidades de empleo en el trabajo por cuenta propia, para dar una respuesta oportuna y positiva a la implementación del ordenamiento monetario in the country”.

The move comes a month after a crisis-ridden Cuba launched its long-delayed currency and exchange rate unification.

It is a far-reaching economic reform that includes the elimination of the convertible peso CUC (parity with the dollar), a significant devaluation of the Cuban peso in the public sector, the increase in wages and prices, and the withdrawal of generalized state subsidies. .

Regarding the “command task”, this is how the Cuban government has called this process, the fear of inflation weighs however. So far, the dollar has already soared into the informal market to double its official rate of 24 pesos per dollar, as the shortage of food, medicine and basic items grows day by day.

With information from EFE and AFP

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The Cuban regime has allowed new activities for the private sector