Cuba announces major private sector expansion
15 reported
Cuba’s Prime Minister Manuel Marrero announced a series of economic reforms on Thursday that significantly expand the role of private and foreign capital in the country. The measures include allowing private and foreign entities to purchase and sell fuel, creating private corporate banking, and permitting private business owners to own more than one company and hire more than 100 workers. The reforms also open agriculture and tourism to private businesses, allow tourism property sales on a case-by-case basis for Cubans resident in the country and abroad, and let foreign investors hire workers directly. Foreign investment is now permitted in Old Havana and other tourist spots, as well as in state telecom ETECSA data centers, mobile networks, and other digital infrastructure. The government is also seeking to transfer management of the country’s zoos and aquariums to private hands. According to the source, these changes come six decades after Cuba’s communist leaders forbade all private business and adopted a centrally planned economy model that the article describes as having ruined the country and caused a severe humanitarian crisis.
What’s reported
Prime Minister Manuel Marrero announced the reforms on Thursday.
Private and foreign capital can now purchase and sell fuel.
Private corporate banking is allowed.
Private business owners can own more than one company and hire more than 100 workers.
Private businesses are permitted in agriculture and tourism.
Tourism property sales are evaluated case-by-case for Cubans resident in the country and abroad.
Foreign investors can hire workers directly.
Foreign investment is allowed in Old Havana, other tourist spots, state telecom ETECSA data centers, mobile networks, and other digital infrastructure.
Surface rights for foreign investments can extend up to 99 years; leases up to 50 years.
Real estate development in tourism is permitted.
Farmland lease rights are available for an “indefinite period.”
Wholesale and retail trade by foreign entities has no limits.
State assets and state companies’ shares can be sold to the private sector and foreign companies.
The government seeks to transfer management of zoos and aquariums to private hands.
The reforms come six decades after Cuba’s communist leaders forbade all private business.
Key figures
Manuel Marrero, Prime Minister of Cuba
Sources: marginalrevolution.com
