Cuba opens up doors to most small business initiatives in drive to offset fiscal blow

by   |  VIEW 665

Cuba opens up doors to most small business initiatives in drive to offset fiscal blow

In what could be contemplated as an illustration of a mass-scale transmutation in Cuba’s state-dominated economy, Government of Cuba would allow small-scale private businesses in a majority of fields while erasing its limited list of private-sector activities in a bid to grapple with the pandemic’s fiscal fallouts on the tourism-dependent Caribbean island nation, a report from Cuba’s state-backed media published late on Saturday had unveiled.

In point of fact, latest major economic overhaul in the communist-run island country came forth as the Caribbean nation with a high human development index has been vying to vent out a way towards an economic recovery following a nearly 11 per cent contraction last year, while the measures would expand the country’s private-sector businesses from a prior 127 sectors to more than 2,000, the media report had quoted the country’s Labour Minister Marta Elena as saying.

Besides, the report from Cuba’s state-run media had also added that the Cuban Labour Minister Elena had approved the policy at a council of Ministers’ meeting last week, while she was quoted saying that there would be 124 exceptions in the latest policy change, nonetheless, the media report did not provide the details.

Cuba to open up economy to most small-scale businesses

In factuality, latest restructure in Cuban state-dominated economy that mostly depends on its neighbouring US-sanction hit ally Venezuela, finally came into being after years of lobbying from reform-minded Cuban economists who had long been calling on an expansion of small business sectors in a bid to hoist up the economy and to create more jobs.

Nonetheless, addressing to years of economic contraction due to stiffer US sanctions, a still-inflaming pandemic outbreak that led to a steep scarcity of goods with Cubans facing off endless lines to obtain basic items such as foods alongside a squeezed supply of fresh capitals to initiate small-scale businesses, a former Cuban Central Bank economist, Pavel Vidal, said following the announcement, “The self-employed are not going to have it easy in this new beginning due to the complex environment in which they will operate, with few dollars and inputs in the economy.

But with the ingenuity of the Cuban and the sophistication of the parallel market, they will be able to take off little by little”.