Economy tanking, Cuba launches some long-delayed reforms

With its airports closed to commercial flights and its ecomy tanking, Cuba has launched first in a series of long-promised reforms meant to bolster country’s struggling private sector.

island’s thousands of restaurants, bed-and-breakfasts, auto mechanics and dozens of or s of private businesses have operated for years without ability to import, export or buy supplies in wholesale markets.While communist government began allowing widespre private enterprise a dece ago, it maintained a state mopoly on imports, exports and wholesale transactions.

As a result, country’s roughly 613,000 private business owners have been forced to compete for scarce goods in Cuba’s understocked retail outlets or buy on black market. That has limited private sector’s growth and me entrepreneurs a constant target of criminal investigation.

With essential tourism business cut off by vel coronavirus and government running desperately low on hard currency, government last month anunced that it would allow private restaurants to buy wholesale for first time. Ministers also anunced that private businesspeople could sign contracts to import and export goods through dozens of state-run companies with import/export licenses.

Within four days of its opening to private business, 213 restaurant owners signed up to buy beer, flour, yeast, shrimp, sugar, rum and cooking oil at a 20 percent discount off retail at Mercabal wholesale market in Havana, state media reported. A similar market has been opened to entrepreneurs in eastern city of Holguin, according to state media.

Government officials have t said how many import/export contracts have been signed.

Private business owners said y welcomed ir new wholesale access, although some said y were skeptical given Cuba’s long history of failing to follow through on ecomic reforms, or of periodically launching crackdowns on what it considers illicit or excessive private sector wealth.

“It’s a really good initiative,″ said Tony Baró, 51-year-old owner of a restaurant in Havana’s Vedo neighborhood who was signing up to purchase in market last week. “It’s t meeting all expectations yet, but we hope that it will in future.″

Along with limited wholesale, importing and exporting, government has promised to allow formation of small and mid-sized private business. Until w, only legal category of private work has been a license for self-employed people, even though in many cases self-employed are in fact owners of flourishing businesses with numerous employees.

government also said it would allow extensive business between private and state-run enterprises, allowing private business to buy and sell from state companies.

Many such measures have been discussed or approved for years, without government action, or wired over time.

“With se measures endure? Is it a temporary patch that y’ll undo later, as y’ve done before?” said Camilo Condis, a 34-year-old self-employed businessman.

Cuban government has been target of years of increased sanctions by Trump ministration, although shutdown of commercial flights under coronavirus has h a far more dramatic effect in less than five months. government has mand to maintain a low rate of infection but ecomy is estimated to drop 8% this year after years of near-zero growth.

’’This is positive,″ 59-year-old cafeteria owner Elba Zaldívar said outside Havana wholesale market. ″I think re are will be more products in future. ... In end, it’s Cuban people who win.”