Cuba's capitalist road

Perspective: Cuba's capitalist road
Posted: November 14, 2011 - 12:14am
The Los Angeles Times

Since succeeding his brother Fidel as president in 2008, Raul Castro has
repeatedly promised to adopt market reforms intended to help save Cuba's
ailing economy.

And he has delivered, for the most part, slowly but steadily. The year
he took over, Castro made it easier for Cubans to buy cellphones. Last
year, the government agreed to increase the number of permits issued for
privately run barbershops, beauty salons, restaurants and other
businesses in the hopes of spurring grass-roots economic activity. At
the same time, it approved a plan to let foreign investors rent
state-owned land, a move intended to help boost international tourism.
And last month, a new law took effect legalizing the private sale of autos.

Still, unlike in Vietnam or China, where ideologues have made dramatic
concessions to economic reform, Cuba's leaders have been much less
aggressive about moving away from a state-dominated economy. At least
until last week.

Since Thursday, Cubans have been able to buy and sell their homes, and
even set their own prices, without government intervention. That's a sea
change in a country where, until recently, private ownership was
strictly forbidden and the accumulation of wealth considered a sin
against the revolution. Fidel Castro confiscated most land titles after
the 1959 revolution. Since then, Cuba's version of property rights has
amounted to little more than allowing citizens to occupy or swap homes.
Even bequeathing homes to relatives who did not live in them was prohibited.

The new law allowing the sale of property will not satisfy all critics,
especially those in Miami's exile community. That would require the
removal of the communist government. Certainly, much more than a
smattering of small businesses and a real estate market is needed to
improve life for most Cubans. Residents still rely on some government
help and employment to survive — something Raul Castro has admitted the
government can no longer afford. The Soviet subsidies that kept the
country afloat are long gone. Venezuelan President Hugo Chavez has
stepped in to fill the role of Cuba's sugar daddy, providing oil. And
remittances from Cubans abroad have helped sustain families still on the
island.

Surely the new law offers some hope. Owning private property offers a
path to prosperity for individual Cubans. China and Vietnam have given
Cuba a model to follow as it moves toward a mixed economy. Let's hope
Castro continues to follow it.

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