Or is the technique to implement what was already permitted years in the past?

Photograph by Dorothea Oldani / Unsplash

By Omar Everleny  (Progreso Weekly)

HAVANA TIMES – One shouldn’t be pessimistic when the Cuban authorities approves a doc, a regulation, a plan, or a technique. Nevertheless, during the last 12 years a number of paperwork have been permitted with an acceptable logic for the event of the nation, and though it has been indicated that modifications mustn’t anticipate the Greek calends, the fact is that implementation has taken a very long time.

We now have learn that there will likely be complementarity between all of the financial actors in Cuban society: the socialist state enterprise, cooperatives on the whole, self-employed staff, micro, small and medium companies, and overseas funding. It’s one thing price contemplating. Nevertheless, because the approval of the financial tips of the sixth Social gathering Congress, virtually all of those actors have been now not being mentioned.


A couple of years again approval of latest cooperatives have been fully stopped because of various factors, and even at present the creation of any such firm, so obligatory for the enterprise cloth, has not been deployed with the mandatory power. New cooperatives associated to building, for instance, now want approval from the entities designated for that objective given the excessive de-capitalization of the nation’s actual property, together with housing, particularly in giant areas of Havana.

The identical occurred with self-employed staff — euphemisms nonetheless in existence — whose licenses have been paralyzed to assessment some features that, based on the state, have been affecting Cuban establishments.

Hopefully this time there will likely be no additional makes an attempt to cease these actors. And that the a lot introduced detrimental checklist doesn’t encompass a number of pages.

It could not be counterproductive for the native personal sector to be licensed to develop initiatives with overseas capital, on a small scale or in any other case, and that its contribution just isn’t essentially measured in capital however in innovation and information of the Cuban context.

The import or export potentialities by all these actors is a daring step, however one which had been demanded a very long time in the past given the financial disaster that the nation has been going by way of because of inner and exterior elements which are dangerous to the financial system. Amongst these we should point out the legal blockade of the US, the hostile results of COVID-19, which has stored the nation spending giant sums of cash for the acquisition of apparatus and medicines, but additionally inner inefficiency and the failure to adjust to objectives and plans.

Right here’s hoping small and miedium busnesses turn into a actuality

I anxiously anticipate that the proposal for the creation of micro, small and medium-sized enterprises won’t proceed to be postponed, which ought to be a measure amongst these just lately introduced by the president of the Fee for the Implementation of the Pointers, Marino Murillo. In different phrases, not solely will the monetary sphere be adjusted, however the counterpart of those modifications will likely be what the nation develops and provides, and lots of of them have to be produced by these MSMEs.

Cuba has gone by way of a number of levels within the improvement technique of overseas funding. From ‘complementary’ and never very important inside the Cuban financial system, to being thought-about a decisive hyperlink within the financial improvement of the nation. It has been said that Cuba wants greater than 2.5 billion a 12 months in direct overseas funding to attain progress charges in line with the present wants of the Cuban financial system.

Nevertheless, 12 months after 12 months we hear in regards to the low uptake of overseas funding, or the plans not achieved on this space, and the identical causes are virtually all the time repeated. The concrete factor is that it doesn’t change radically, nor are the expansion charges of overseas funding which are demanded obtained. At most, dedicated sources of $1 billion have been achieved in a single 12 months.

The dire want for funding capital

The Cuban financial system calls for funding, and overseas funding stands out as the probably present supply of attracting these sources within the medium time period. The disaster already described mustn’t permit itself the luxurious of dismissing, or not serving as they deserve, those that want to put money into Cuba.

The overseas funding approval course of have to be totally rethought in order that it may be efficiently relaunched. It isn’t doable to be so persuaded that because of subjective features deliberate investments haven’t been achieved and that there already exists an ideal process to attain them. Steady point out of the one-stop store just isn’t going to provide the mandatory outcomes for overseas funding, though it’s a essential step to hurry up approvals.

The 15 current measures to stimulate the Cuban State companies, along with a gaggle of others permitted a while in the past, are geared toward giving enterprise entities autonomy. However I’m wondering how true are intentions to grant the required autonomy, with tag-lines that also seem on a few of these companies.

Shouldn’t we research monopolistic operations in some financial actions within the absence of wholesome competitors that advantages everybody? Couldn’t there be a number of cellular phone firms within the nation, even beneath the identical state entity? In a world the place digital commerce guides the future of the inner commerce of the international locations, it’s important to have a qualitatively sturdy telecommunications technological infrastructure.

A single nationwide foreign money plus the US Greenback

What was just lately introduced highlights one thing distinctive, which is the circulation of a single nationwide foreign money. However in fact there will likely be a greenback / Cuban peso (CUP) alternate charge, because the transitory state of affairs exhibits us a partial dollarization because of the existence of shops in convertible currencies (MLC) that create house for trial and error, reforms and changes, a security web for trapeze artists, which lies within the existence of this community of shops to seize remittances of household support in these currencies, all that fulfill the wants of the lucky inhabitants with entry to that convertible foreign money, and on the identical time channel the foreign money income for the great of the CUP.

An apparent doubt for Cubans with out remittances is whether or not the state would promote some portions of MLC for CUP. We imagine that it might be prudent, however what occurs is that the state should prioritize the purchases of merchandise in MLC to ensure gross sales in that foreign money and that there are not any shortages of products in these shops. On the identical time they will channel a p.c for the restoration of the nationwide business.

There may be, as a part of the logic expressed by the management, the method of implementation of the nation’s financial reform. 4 measures can be carried out, which embrace leaving solely the CUP circulating, establishing a single alternate charge for all actors within the nation, a value improve and with it will increase in wages and pensions. Which leads us to a query: Will folks’s financial savings be affected? Is that this clearly a part of the collateral harm?

A security web?

These identical damages can’t be cushioned, because the nation is at present struggling a generalized scarcity of services, which stop planning for bills with part of the financial savings. For instance, when you had determined to rework your own home, or substitute components of the toilet or kitchen, you end up with provide restrictions for these enhancements. Clearly, the logic was the acquisition of meals in view of the nation’s monetary restrictions, the appropriate coverage, since it’s in regards to the survival of the inhabitants.

It is important for Cuba to encourage the arrival of remittances. It’s why we should create incentives for the placement of remittances in productive efforts, reasonably than in consumption. The desire to simply accept them have to be demonstrated; politically, the authorities ought to search for methods to bolster this, and it ought to be a part of the agenda of the postponed occasion of La Nación y su Emigración (The Nation and its Emigration).

Every thing introduced has been within the paperwork permitted by the 2 earlier Social gathering Congresses (2011 and 2016), and permitted within the completely different classes of the Cuban Parliament, and on the highest ranges of presidency, such because the Political Bureau, the Council of Ministers, and others. In different phrases, there’s consensus on methods to method this. Subsequently, what’s holding it up?

In conclusion, the roadmap has been introduced. It provides hope. Our want is that day zero for implementation is on the agenda policymakers frequently use and that they don’t anticipate a brand new agenda the next 12 months. There may be political capital: What else do they want?

Omar Everleny Pérez Villanueva is a Cuban economist.

Learn extra information and commentary on Cuba right here in Havana Occasions.

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