Cuba Hits Wall in 2-Year Push to Expand the Private Sector
Nearly two years into the Cuban government’s economic overhaul aimed at slashing public payrolls and bolstering private enterprise, the reforms have slowed so much that many Cuban entrepreneurs and intellectuals are questioning the aging leadership’s ability — or will — to reshape one of the world’s last Communist systems and shift nearly half of the island’s output to private hands.
Those awaiting measures to create even more opportunity for private business got the opposite last week, when news spread of a little-advertised government decision to charge steep customs duties on the informal imports, from Miami and elsewhere, that are the lifeblood of many young businesses.
“This could have a huge impact,” said Emilio Morales, president of the Miami-based Havana Consulting Group, who said state-owned shops in Cuba were losing business to street vendors. “It shows the state isn’t ready to compete with the private sector.”
After the Cuban government began allowing people to open businesses in late 2010, nearly a quarter of a million of them have opted to work for themselves over the past 20 months, opening restaurants, snack bars and makeshift shops, driving taxis and fixing cellphones. Together with those who took advantage of an earlier experiment with privatization in the 1990s, about 387,000 Cubans, out of a population of about 11 million, are now self-employed; Cubans are also buying and selling homes and cars among themselves for the first time in 50 years.
full: http://www.nytimes.com/2012/07/17/world/americas/economists-question-cubas-commitment-to-privatizing-businesses.html?pagewanted=all
