Cuba's New Law Lets in Foreign Capital, But Labor Must Be Contracted From the Government

Yoani Sanchez - Award-winning Cuban blogger



Cuba's New Law Lets in Foreign Capital, But Labor Must Be Contracted

From the Government

Updated: 04/17/2014 4:59 pm EDT



A gentleman with a beard and a shabby shirt reads the newspaper in a

Reina Street doorway. "These people are re-inventing the wheel..." I can

hear him say. The daily he has in his hands has a tabloid insert with

the new Foreign Investment Law, recently voted on in the National

Assembly. Unanimously approved, the controversial legislation comes at a

time when the Cuban economy is in desperate need of foreign capital.



The rush to get investment has not caused, however, greater flexibility

in areas such as contracting for personnel. The recently approved law

will maintain the state's monopoly as the employing company. Only

through this entity will a foreign business be able to contract for its

workers. People trusted by the government will continue to rise to the

top of the list it's time to get hired.



Thus, Raul Castro's government guarantees that the workforce of foreign

investors will be people the government trusts. If we understand that

economic autonomy is an indispensable requisite to achieving political

autonomy, we know very well that the General President is going to

assure that the best salaries are going to go to the pockets of the

proven faithful. In this way he maintains the ability to buy loyalty

with privileges, which has characterized the Cuban model.



However, ideological fidelity and working ability don't always go

hand-in-hand. New businesses with foreign capital will see their

performance hampered -- among other reasons -- by not having access to

the best available human capital. On this point it's clear that the

Foreign Investment Law can't jump beyond its own shadow. It continues to

be marked by the fear that individuals can make themselves independent

-- both with regard to wages and politics -- from the state.



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Source: Cuba's New Law Lets in Foreign Capital, But Labor Must Be

Contracted From the Government | Yoani Sanchez -

http://www.huffingtonpost.com/yoani-sanchez/cubas-new-law-lets-in-for_b_5169294.html