Cuba starts splashing in market economy with legalization of small businesses

Cuba's Economy Minister said last week that the communist-run country would allow competitions between state-backed and privatized entities, much as in the capitalist economies

by Sourav D
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Cuba starts splashing in market economy with legalization of small businesses

In what could be contemplated as an end of soviet-style economy in Cuba, one of the most prominent socialist nations among 24 around the globe, tens of thousands of small- alongside medium-sized Cuban businesses would be enabled to be incorporated over coming months, as a sweeping overhaul in the country’s financial system would likely to permit competition between independent and state-owned businesses for the first time since 1968, however, it remains to be seen whether the changes are momentary, suggest analysts.

Apart from independent corporate businesses, the revamped legislation would allow small- and medium-sized state firms to join market economy, a particular style enabling unrestricted competition between private and Government-owned businesses that was widely adopted by major European economies following a meet of their finance ministers shortly after the end of World War II, widely known as the meet of Britton woods.

Besides, the reform in effect would cement ways to decentralize the communist-run country’s economy while barring forced subsidization by the Government entities, Cuban economists said last week.

Cuba dips toe into market economy as pandemic pain lingers

However, latest radical reform in Cuban economy yielded by the new Cuban leader Miguel Diaz-Canel who had sworn to take the office last year, comes over the heels of a growing protest against poverty as the pandemic alongside stiffer US sanctions had wreaked havocs into the economy and stemmed a grievous shortage of foods, medicines alongside other basic goods.

Meanwhile, speaking in a televised presentation on Wednesday evening, Cuban Economy Minister Alejandro Gil was quoted saying that the state- and privately-owned businesses would be allowed to compete on a level-playing ground, much as in the capitalist economies adding, “It is a starting point for a new stage in the diversification of the economy and its development, in order to make the most of its potential”.

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