private property sales
The Canadian PressBy Paul Haven, The Associated Press | The Canadian Press
HAVANA - Cuba made official on Monday what had been rumoured for weeks:
It is legalizing the sale of real estate and cars and expanding the
ranks of private co-operatives that could serve as engines for the
sputtering economy, among other major changes.
But the Communist Party's newly released economic guidelines give few
specifics, meaning islanders will have to wait to see the fine print
when the strategy is eventually translated into law by Cuba's National
Assembly.
The economic overhaul aims to pull Cuba out of a deep fiscal morass by
enacting free-market reforms while preserving the Communist system
ushered in by Fidel Castro's 1959 revolution. It was approved
unanimously last month at a landmark Communist Party Congress, but the
final document was not released until Monday.
The 313-point guidelines say the state ought to "establish the buying
and selling of homes" for Cuban citizens. There is no mention of how the
system will work, what restrictions will be imposed or what taxes might
be levied — all crucial to judging the scope of the changes.
Previously, such details have been released once guidelines are enacted
into law and published in the official government gazette.
The framework also says Cubans should be encouraged to form
co-operatives which could function as mid-size companies with many
employees, a key requirement of any vibrant economy. Currently, such
entities only exist in the field of agriculture. The newly released
version of the guidelines allows such employee-owned businesses to
directly sell products to consumers or business owners, without the
state operating as an intermediary.
The co-operatives would also be free to decide how much each worker gets
paid — presumably in relation to their productivity and usefulness.
The guidelines also call for legalizing the sale of cars and other
vehicles. They make clear, however, that the state is not yet in a
position to sell most Cubans new cars through state-owned businesses.
Still, the change will be welcome by thousands of citizens hoping to
trade or upgrade their aging vehicles. Previously, only cars built
before the revolution could change hands, meaning thousands of
Soviet-made Ladas and Moscoviches, as well as tiny Polskis and other
cars used in the former Eastern bloc were frozen in the hands of their
owners.
Cubans got around the restrictions by "lending" cars to each other —
with black market brokers helping arrange what were essentially
unauthorized sales. Homes were also traded using underground brokers or
in complicated swaps involving many parties. Often, money would change
hands under the table, despite being illegal.
The guidelines also say the state will convert many public buildings
into residential property in an effort to ease severe housing shortages
that mean three and sometimes four generations of the same family are
squeezed into a few crumbling rooms. Even divorced couples often find it
hard to relocate because of the rigid property rules.
Since taking over from his brother in 2008, Cuban President Raul Castro
has championed a limited but significant shift to the free market. Last
year, he announced that Cubans would be allowed to go into business for
themselves in 178 approved enterprises, hire employees and rent out cars
and homes.
Castro has also promised to fire half a million unnecessary state
workers, and has warned his countrymen that the government can no longer
afford the deep subsidies it gives workers in return for wages that
average $20 a month.
Under Cuba's Marxist system, four in five Cubans work for the
government, and the state still controls virtually all means of production.
The guidelines published Monday say cuts in the subsidies will continue
so that eventually only those with the most need — such as children, the
sick and the elderly — receive benefits. Currently, all Cubans receive a
basic basket of goods through monthly ration books, as well as free
education and health care, and nearly free housing, utilities and
transportation.
The changes aim "to compensate needy people and not subsidize products
in general," according to the newly published guidelines.
Other guidelines make clear the government's desire to eliminate Cuba's
unusual dual currency system, legalize the sale of construction material
at unsubsidized prices, promote the fishing industry and link sugar
prices paid to Cuban producers with prices paid on international markets.
Associated Press writers Peter Orsi and Andrea Rodriguez contributed to
this report."
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