HAVANA (AP) — The Cuban Communist Party approved emergency economic measures It features unprecedented free-market measures aimed at opening up the island’s struggling economy following mounting pressure from the United States.
Although the full document has not been published, we present some of the proposals based on statements such as: Cuban President Miguel Diaz-Canel and other officials.
Decentralization of the national economy
This measure is expected to further decentralize Cuba’s state-run economy. Under the island’s current economic model, the government primarily decides what is produced, who produces it, how much goods are sold for, and how the country’s resources are allocated.
Unspecified changes in the foreign exchange market
Currently, only state institutions and banks can exchange currency, but many people do. informal market.
government downsizing
Legislation was introduced to reduce the number of ministries from 27 to 21 to increase efficiency.
independence of local government
The measures will give local governments more power to approve companies operating within their jurisdictions and control relationships with economic actors, including state-owned enterprises, cooperatives and private companies. Local governments will also be allowed to import and export goods and manage their own foreign exchange earnings. Cuba has 168 municipalities in 15 provinces.
autonomy of state-owned enterprises
Businesses will be allowed to design their own payroll systems, use and share profits with fewer restrictions, import and export goods, and partner with private companies and cooperatives.
The reform will also expand the scope of activities that state-owned enterprises are permitted to carry out. Cuba has approximately 2,000 state-owned enterprises.
Eliminating state intermediaries
The proposed changes would allow companies including: small businessgoods would be allowed to be imported and exported directly, without going through the state-run organizations that currently oversee the process and set fees.
The measure will also provide incentives for importing inputs and raw materials used in production.
Subsidies being phased out
Cuba’s post-revolutionary rationing system had long guaranteed access to basic goods at controlled and low prices. However, future reforms will phase out these subsidies and move food and other goods to market prices.
Rebuilding abandoned infrastructure
recent US sanctions Cuban conglomerate Gaesa We have been forced to operate historic hotel chains such as . Melia and Iberostar suspend contract with a Cuban counterpart. New measures include finding new ways to utilize the island’s largely abandoned infrastructure.
Díaz-Canel said the emergency plans and policy documents prepared by the Communist Party’s Central Committee were shaped by the experiences of China and Vietnam, two communist countries that introduced market-oriented economic reforms while maintaining one-party rule.
Growing US pressure
The announcement of new economic measures comes after months of mounting pressure from the United States. high level talks The two countries also include Raul Guillermo Rodríguez Castro, the grandson of former President Raul Castro.
The United States has for years restricted trade and travel to Cuba in an effort to press the Cuban government to release all political prisoners, end political and religious repression, and open the economy to U.S. private investment.
The Trump administration has stepped up that pressure in recent months, imposing a fuel embargo on the island and Raul Castro indicted In connection with the 1996 shooting down of two civilian planes flown by Miami defectors.
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