Cuba’s new small businesses are swiftly ‘dominating’ its economy.
Communist Cuba Recently Legalized Small Businesses, And They’re Already ‘Dominating’ the Country’s Economy
It truly is amazing what a little personal ambition can do for one’s position in life.
Cuba is just learning that lesson after 70 years of strict communist rule: In only two years, the country’s move to legalize small businesses has become a major boon to the island nation’s economy.
Despite its many decades of antagonism against capitalism, and with glorious leader Fidel Castro now moldering in his grave, the communist regime in Havana softened its rules on small businesses in 2021. Though they are still restricted, personally owned businesses are allowed.
And lo and behold, these newly approved small businesses have become a “lifeline” for Cuba’s forever-struggling economy, The Wall Street Journal reported Wednesday.
The country passed laws allowing Cubans to create small businesses with fewer than 100 employees, the report said. Since then, more than 8,000 small businesses have emerged covering all sorts of fields, including tourism, construction, computer programming, and grocers.
The change has been amazing. Cuba — a nation always suffering from shortages — is still struggling, but these small businesses are so successful that they already account for about half the nation’s much-needed food imports, according to the Journal.
And it isn’t just food imports.
“These businesses are now leading importers in a country that relies on imports of everything from fuel to most of its food. Cuba’s economy minister, Alejandro Gil Fernández, said in a report to Cuba’s Congress on the state of the economy that imports by private companies could top $1 billion this year,” the Journal reported.
“They are on track to provide more than half of Cuba’s food imports,” it said.
Aldo Álvarez, a Cuban lawyer turned importer based in Havana, told the Journal, “In the last two years, the private sector has been dominating commerce in Cuba to an unprecedented level. We not only have businesses, but we have the capacity to import.”
These small businesses also are beginning to reach out to counterparts in the U.S. to import much-needed supplies and products into Cuba.
Still, government officials say they won’t allow the country’s citizens to get too wealthy or become big landowners, and the nation’s single-party rule won’t change or be reformed.
Regardless, the lesson is profound. The businesses are making the lives of about one-third of Cubans better, the Journal reported.
“Privately owned restaurants, bakeries, beauty salons, and even gyms dot streets where before there were none,” it said.
Former Democratic Rep. Joe Garcia of Florida told the Journal, “Now there are little grocery stores every other block selling inexpensive things, food products. People complain that they’re expensive, but before there was nothing.”
The U.S. still has most of its sanctions in place against Cuba, but the country’s new tolerance for small businesses has made life better for many Cubans.
The communist country’s history of loosening its grip on the public only to start it back up all over again is not good. But right now the policy is working.
“We live with high levels of uncertainty,” Álvarez told the Journal. “It’s not the first time the Cuban state goes in one direction, only to reverse course and go in another one.”
When the policy was implemented, many Cubans assumed that only those with government ties would prosper. So far, however, that has not been fully the case. Many more have benefited than first imagined.
The effect has been wonderful for many. Capitalism has improved the lives of tens of thousands of Cubans.
Unfortunately, that might be reason enough for the communist government to end the experiment. After all, it fully proves that their trust in communism is disastrously misguided.
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The post Communist Cuba Recently Legalized Small Businesses, And They’re Already ‘Dominating’ the Country’s Economy appeared first on The Western Journal.
What role has the ability to import goods and supplies played in the success of small businesses in Cuba?
T anticipated, and small businesses are flourishing despite the government’s reservations.
One of the main reasons for the success of these small businesses is their ability to import goods and supplies from other countries, including the United States. This has helped alleviate some of the ongoing shortages in the country. But the government remains cautious and does not want its citizens to become too wealthy or gain too much influence.
While the progress made by these small businesses is commendable, it is important to note that Cuba’s single-party rule and strict communist ideology remain unchanged. The government is unlikely to implement any substantial reforms or allow for significant wealth accumulation among its citizens.
Nevertheless, the impact on the lives of Cubans is undeniable. Privately owned restaurants, bakeries, beauty salons, and gyms are now a common sight in the country, providing much-needed goods and services to the population. Former Democratic Rep. Joe Garcia of Florida noted that even though some complain about the prices, the availability of these products is a significant improvement from the past.
The United States still maintains most of its sanctions against Cuba, but the country’s newfound tolerance for small businesses has undoubtedly improved the lives of many Cubans. It remains to be seen whether the government will maintain this policy or revert to its previous restrictions.
As Cuban lawyer turned importer Aldo Álvarez aptly put it, living with uncertainty has become a way of life in Cuba. The government’s history of reversing policies and changing directions adds to this uncertainty. However, for now, the legalization of small businesses has brought about positive change.
In conclusion, Cuba’s decision to legalize small businesses has had a significant impact on the country’s struggling economy. These businesses have become a lifeline for the nation, accounting for a considerable portion of food imports and bringing much-needed goods and services to the people. While the government remains cautious and resistant to major reforms, the success of these small businesses demonstrates the power of personal ambition and entrepreneurship. It is a lesson that Cuba is learning after decades of strict communist rule, and one that may shape the country’s economic future.
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