Market economy emerging in post-Castro Cuba

Miami /
Nov.November 27, 2016 05:35 PM

Fidel Castro’s death probably will have little impact on the domestic Cuban economy and its invigoration by a new wave of small business owners and self-employed professionals.

Under Castro, who called business owners a “class of parasites,” the Cuban government abolished private property ownership and property exchanges and controlled all production and all employment.

But in 2011, significant reforms legalized small businesses and increased their presence in the Cuban economy.

Today under-stocked, government-run retail stores still attract long lines of under-served Cubans. But state-owned stores operate along with a new generation of small-scale entrepreneurs who sell such goods as fresh produce and such services as manicures and haircuts.

Castro’s younger brother Raul, 85, who succeeded him in 2008 as president of Cuba, has supported legal reforms that authorized self-employment in hundreds of professions and trade between small businesses and the state. In his pragmatic approach to the Cuban presidency, Raul Castro also has started to reduce taxes on entrepreneurs and has permitted private exchanges of homes and vehicles.

The reforms have encouraged a surge in the number of self-employed Cubans from 148,000 in 2009 to 500,000 in late 2015.

In the wake of his brother’s death, Raul Castro may expand the business-friendly reforms of the Cuban economy. And though he plans to step down as president in 2018, his handpicked successor, Miguel Diaz-Canel, probably will pursue similar economic policies. [The Daily Telegraph]Mike Seemuth


Related Articles

arrow_forward_ios
Alex Sapir and Bella Sapir (Credit: Mark Von Holden/WireImage via Getty Images, and ADRIEL REBOH/Patrick McMullan via Getty Images)

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
Donald Trump (Credit: Win McNamee/Getty Images)

Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations
Jeff Burns, Nick Rojo, The Bohemian Lake Worth

Affiliated Development’s Lake Worth Beach apartment project approved

Affiliated Development’s Lake Worth Beach apartment project approved
A rendering of the Intracoastal Mall and Gil Dezer

Dezer’s plans to remake Intracoastal Mall face opposition

Dezer’s plans to remake Intracoastal Mall face opposition
Alta Developers CEO Raimundo Onetto and Le Parc at Brickell rendering

Le Parc at Brickell condo association sues Alta Developers and partner for alleged construction defects

Le Parc at Brickell condo association sues Alta Developers and partner for alleged construction defects
Biscayne Beach

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work
AHS Residential Ernesto Lopes and AHS Residential Tamiami (Credit: AHS)

AHS Residential scores $33M construction loan for Kendall apartment complex

AHS Residential scores $33M construction loan for Kendall apartment complex
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...