The president of Cuba, Miguel Diaz-Canelannounced this Friday by surprise a comprehensive package of reforms to liberalize the economy arguing that “these are times when we have to change.”
Díaz-Canel stated in statements to Cuban media broadcast on state television that these changes must respond to “the demands of current times”, in reference to the country’s crisis, and not so much to pressure from Washington for the island to undertake profound economic and political reforms.
“The country is not stopped. The country is facing this whole situation with intelligence. We cannot say everything so clearly because the enemy is lurking everything we do. Our response has to be that of the unit“added the president.
Tourism sector
Among the measures announced is the entry of “new actors” in the tourism sectorone of the country’s former economic engines, to “exploit” the island’s hotel park after the recent total or partial withdrawal of the main foreign companies on the island to avoid US sanctions.
Díaz-Canel also spoke of reforming the real estate sectorwhere he pointed out changes in management and the search for “new modalities” and “new actors”, without providing more details. The Cuban State has large companies rent of real estate.
He also spoke of increase the “autonomy” of state companies in matters of wagesinvestment of profits (benefits), import and export, association with other economic actors, design of business plans and access to the exchange market.
Liberalization will also affect the camposaid Díaz-Canel, who pointed out that agricultural producers will be allowed direct access to inputs, association with different actors, holding “real” accounts (with cash backing), participation in the exchange market and they will try to make their bureaucratic procedures “as light as possible.”
More dynamism
The Cuban president indicated that importers, state companies that necessarily mediate all foreign trade, will be eliminated so that this sector is “more dynamic.”
He stressed that the Government wants “incentivize” foreign direct investment and he highlighted at this point the role that Cubans residing abroad can play, who will have the same conditions as their compatriots on the island.
Regarding the private sector, he announced that more sectors of the economy will be opened to non-state actors.
He also referred to the reform of the State apparatus that had been advanced a few weeks ago and was finalized with a bill that foresees the reduction from 27 to 20 ministries with the aim of having a “more agile” structure and with “less bureaucracy.”
He also indicated that the reforms also seek to end the “contradictions” between central planning and the market and between centralization and decentralization.
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