By Lluís Muñoz Pandiella
Havana (EFE).- Cuba’s 176 economic and social reforms that allow private companies with over 100 employees, direct hiring, investment by Cubans abroad, the use of land for an indefinite period, and greater openness in trade and tourism, seem to be laying groundwork for the entry of the market economy into the island.
As of Thursday, Deputy Prime Minister and Minister of Foreign Trade Óscar Pérez-Oliva stated that the new regulations “could have an impact on the economy in the short term,” though he noted that their actual scope cannot be calculated due to “external pressure we cannot ignore.”
On Tuesday, Deputy Minister Carlos Luis Jorge Méndez stated in an interview reposted by the Ministry of Foreign Trade and Foreign Investment’s X account that the reforms are part of a serious and real process.
Economist Omar Everleny agreed with both officials, who, in an interview with EFE, stated that the new legal framework is excellent as it confirms that Cuba is moving toward a market economy; yet, he warned that «if sanctions are not eliminated or reduced, it will be difficult to implement it.»
Private enterprise
In Cuba, private companies with over 100 employees are now permitted, in addition to the micro, small, and medium-sized enterprises (MSMEs) that have existed since 2021.
Furthermore, companies can establish retail chains with a nationwide presence and form partnerships with foreign capital. Everleny emphasized that these alliances have not been mishandled by the United States.
Foreign companies and Cubans abroad can now hire workers directly, bypassing state-run employment agencies. They can reward their employees with payments in foreign currency.
Cubans living abroad, as well as foreign permanent residents, can also participate as partners in private Cuban companies, with the aim of attracting investment from the diaspora.
Everleny acknowledged that during a recent trip to Miami, he observed interest from many investors in reentering the Cuban market.
Land in usufruct
Property may be granted in usufruct for 99 years, with the possibility of renewal for the same period. Specifically, the state may grant land in usufruct to legal entities for an indefinite period.
Although the regulation is formulated in broad terms, it clarifies that the final conditions will be determined in the agreement with the state.
Everleny considers the established terms «quite long» because those who sign the agreement «won’t be around» to see what happens at the end of the usufruct period.
Although he believes there is a mix of different economic models, he acknowledged that aspects of the Vietnamese and Chinese models align with the proposals.
«Investors from China and Vietnam were the ones who left and later played an important role,» he added.
The Cuban economist claimed that Cuba has an advantage in that progress in social and health matters puts the country ahead of the challenges China and Vietnam faced when entering the market.
Challenges and outstanding issues
Everleny believes that all these regulations have «a little problem»: «Companies or banks aren’t going to step forward if they’re going to be sanctioned.»
Currently, importing is difficult because ships try to avoid being sanctioned. «If the US sanctions Cuba for supporting terrorism, no one will risk their fortune,» he stated.
At the same time, the nationalizations of the 1960s, following the triumph of the Revolution, remain unresolved.
«Many companies interested in returning have claims on the table that need to be resolved,» he said.
However, Everleny is still waiting for the banking issue and currency exchange offices to be approved in the Official Gazette. The coming months will be decisive.EFE
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