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
The site and renderings of Premium Development’s nearby project. (Premium Development)
Multifamily developer buys piece of Little Havana assemblage
Multifamily developer buys piece of Little Havana assemblage
FECI's Kolleen Cobb with Countyline Corporate Park and the new sites at 4181 and 4241 West 108th Street (Google Maps)
FECI plans Countyline Corporate Park expansion with $33M construction loan
FECI plans Countyline Corporate Park expansion with $33M construction loan
Alliance Residential Company CEO Bruce Ward and 6595 Morikami Park Road (Google Maps)
Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
Prologis CEO Hamid Moghadam with project plans, an aerial view of Northwest 129th Avenue and 14th Street and the Dolphin Expressway in Miami-Dade County (Prologis, Getty, Google Maps)
Prologis plans to expand its Beacon Lakes business park in Miami-Dade
Prologis plans to expand its Beacon Lakes business park in Miami-Dade
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Ubiica's Alejandro Salazar (left) and Rodrigo Gana with an aerial of the project site (Eddy Davis)
Ubiica, Maven plan multifamily project in Coral Gables
Ubiica, Maven plan multifamily project in Coral Gables
Prestige Companies CEO Marty Caparros Jr. and COO Alexander Ruiz with (from top) 1201 Palm Avenue, 40 West 23 Street and 2290 Palm Avenue (Google Maps)
Prestige scores $21M construction loan for three Hialeah workforce housing complexes
Prestige scores $21M construction loan for three Hialeah workforce housing complexes
arrow_forward_ios

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

Loading...