By: Daniel Nardini
Fidel Castro would be turning in his grave on this (wait a minute, he’s still alive, right?!). The Cuban Communist Party newspaper Granma reported that all Cuban citizens will be able to buy and sell cars and homes. Before this new law was enacted, Cubans could only “swap” homes (with permission from the government), and “swap” cars made after 1959 (again with permission from the Cuban government). To put it mildly it left people not only dirt poor but unable to start their own business, unable to earn profits, and unable to afford food and basics they might need.
Since the basic food system is being dismantled by the Cuban government, it makes sense that the Cuban government is now allowing privatization. And part of that privatization is to allow people to openly buy and sell property. The most important properties in Cuba are cars and houses. One slight condition—people can only sell and buy one home. This is still a limitation. However, they can buy and sell as many cars as they want. Before these new laws, Cubans could only buy and sell cars made before 1959. Hence why there are so many old 1950’s American-made cars in Cuba still running. This law will change that.
The reason for this happening is hardly surprising. What the Cuban government wants to see is the emergence of a business elite that can build up key industries, revive agriculture, and work with foreign investors. This can only happen if they start opening up the Communist-stunted economy. Making private property possible is a necessary step for the Cuban economy to revive and grow. From allowing ordinary citizens to own cell phones and computers to providing individuals with incentives to set up their own small businesses, the Communist Party of Cuba is gradually doing an about-face from what it had done for decades—blindly follow the out-dated Soviet system. It will even allow Cubans freedom of movement in and out of the country for those who can afford it. Cubans will be allowed passports to go wherever they please. This is equally important—Cuban business people who can travel in and out of Cuba can make investments around the world.
There is little doubt that the Communist Party of Cuba will retain supreme and total power. It will not allow any other political party onto the Cuban landscape. However, it is beginning to radically change the face of Cuba economically and to an extent socially. The question is how far will all of these reforms go?
Creeping Cuban Capitalism
By: Daniel Nardini
Fidel Castro would be turning in his grave on this (wait a minute, he’s still alive, right?!). The Cuban Communist Party newspaper Granma reported that all Cuban citizens will be able to buy and sell cars and homes. Before this new law was enacted, Cubans could only “swap” homes (with permission from the government), and “swap” cars made after 1959 (again with permission from the Cuban government). To put it mildly it left people not only dirt poor but unable to start their own business, unable to earn profits, and unable to afford food and basics they might need.
Since the basic food system is being dismantled by the Cuban government, it makes sense that the Cuban government is now allowing privatization. And part of that privatization is to allow people to openly buy and sell property. The most important properties in Cuba are cars and houses. One slight condition—people can only sell and buy one home. This is still a limitation. However, they can buy and sell as many cars as they want. Before these new laws, Cubans could only buy and sell cars made before 1959. Hence why there are so many old 1950’s American-made cars in Cuba still running. This law will change that.
The reason for this happening is hardly surprising. What the Cuban government wants to see is the emergence of a business elite that can build up key industries, revive agriculture, and work with foreign investors. This can only happen if they start opening up the Communist-stunted economy. Making private property possible is a necessary step for the Cuban economy to revive and grow. From allowing ordinary citizens to own cell phones and computers to providing individuals with incentives to set up their own small businesses, the Communist Party of Cuba is gradually doing an about-face from what it had done for decades—blindly follow the out-dated Soviet system. It will even allow Cubans freedom of movement in and out of the country for those who can afford it. Cubans will be allowed passports to go wherever they please. This is equally important—Cuban business people who can travel in and out of Cuba can make investments around the world.
There is little doubt that the Communist Party of Cuba will retain supreme and total power. It will not allow any other political party onto the Cuban landscape. However, it is beginning to radically change the face of Cuba economically and to an extent socially. The question is how far will all of these reforms go?