MICROCAPITAL BRIEF: Cuba Leases 2,000 State Firms to Private Sector

According to Cuba’s Domestic Trade Ministry, a government body charged with implementing and monitoring domestic wholesale and retail commerce, 2,041 businesses have been leased to 5,479 former employees as part of Cuba’s economic reform plan to introduce non-state management in 47 economic activities. The shift to the private sector allows former employees to manage the businesses, provide resources, set prices, maintain and improve the facilities, and assume all rental and utility fees. The Cuban government reportedly has determined that this method has improved service, raised salaries and decreased absenteeism. Shopkeepers reportedly have said that the benefits are offset by issues including tax burden and the absence of a wholesale market, which forces sellers to buy goods at retail markets, resulting in higher prices.

By Jennifer Young, Research Associate

Sources and Additional Resources

Global Post Story, “Cuba: More Than 2,000 State Firms Shifted to Private Sector,”
http://www.globalpost.com/dispatch/news/agencia-efe/130429/cuba-more-2000-state-firms-shifted-private-sector

MicroCapital Story, “July 13, 2011, “MICROCAPITAL BRIEF: Cuba May Allow Microfinance as Part of Modernization of Economic System,”
https://www.microcapital.org/microcapital-brief-cuba-may-allow-microfinance-as-part-of-modernization-of-economic-system/

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