Granma, the official newspaper of the Communist Party of Cuba, recently published two positive articles about the island’s “non-state economic sector,” i.e., private enterprise.[1]
A Successful Non-Agricultural Cooperative
One article focused on the Non-Agricultural Cooperative (CNA) Illusión Salon in Havana, which has been in business for several decades, but last November became one of around 200 CNAs in the capitol city.
Since then the Salon’s appearance and condition have been improved, and it has gained many new customers from all over the city. Its president said, “The best thing is that we are no longer obliged to work with the resources they assign to us, but with supplies we are able to get hold of. Now we decide from whom and where we buy.”
Its accountant observed that before the change to CNA, the top earner would make about 500 Cuban pesos (CUP), while today the average is closer to 1,300 or 1,400 CUP. Workers were suddenly motivated, but they sometimes express irritation over the high tax rates, and we hope that this will change.”
At the end of each month, the salon tallies up its accounts, pays off any debts, deducts costs and utility payments, sets aside about 30% and then divides the remaining 70% among the employees in accordance with their work.
Training Courses for Cubans in Non-State Sector
The other article announced that the government was developing new training courses to assist citizens who would be joining the non-state sector.
The new courses will cover taxes, communication law, economics, marketing, e-commerce and Information Technology and Communications. Other possible new courses include production of organic fertilizer, vegetables and ornamental plants; agricultural law; and agricultural units of measurement. These new courses will join previously established ones for civil construction, urban and suburban agriculture, masonry and basic accounting and finance.
Conclusion
These are additional indicators of the Cuban regime’s recognition of the need to have private enterprise on the island and its promotion of that sector, both of which were highlighted in Raúl Castro’s report to the recent Party Congress as covered in a prior post. Maybe the new laws to create legal status for small and medium-sized businesses will not be as long delayed as another prior post suggested.
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[1] Gonzalez, A successful beauty cooperative, Granma (May 31, 2016); Guerrero, New training courses for workers in the non-state sector, Granma (May 31, 2016).
Comment: Another Positive Granma Article About Cuba’s Private Enterprise
The second International Cuban Industry Convention will take place June 20-24 in Havana’s Convention Center. With broad interest from Cuban entities, researchers and business people, the event is organized by Cuba’s Ministry of Industries (Mindus) in association with the United Nations Industrial Development Organization. It will focus on scientific-technical collaboration, strengthening technology, developing exportable product lines and consolidating nationally produced goods. [1]
Simultaneously Havana’s Pabexpo exposition center will host a trade and exhibition fair—CubaIndustria 2016–to promote Cuba’s Non-Agricultural Cooperatives (CAN), one part of its non-state economic sector, i.e., its private enterprise sector.
One of these cooperatives and a co-sponsor of the latter event is Varadero-based CAN Decorate, which specializes in advertising and graphic, industrial and interior design and which will launch at the event its “Gabi & Sofi” brand offering simple children’s products under the label “Varadero Original.” The development of this line of products is in response to demand for children’s products at Varadero, Cuba’s leading beach resort. This line of products will also be sold in stores in Havana, Matanzas, Cienfuegos, and the Hicacos Peninsula. Work is also underway to create 3D animation models of Gabi & Sofi and an animated series.
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[1] González, Cooperatives helping to revive Cuban industry, Granma (June 15, 2016), http://en.granma.cu/cuba/2016-06-15/cooperatives-helping-to-revive-cuban-industry.