More Details on New Cuban Regulations on Private Business

A prior post discussed Cuba’s new regulations for the self-employed sector (the private sector) of the economy. More details on these new regulations are provided by Nora Gámez Torres in the Miami Herald.[1]

She says that he new regulations limit a Cuban to owning only one private enterprise and impose higher taxes and more restrictions on many self-employment endeavors, including the arts. All of these measures are designed “to limit the accumulation of wealth by Cubans.”

As a result, a Cuban who runs a private restaurant (a paladar) will not be able to rent a room in his or her home. The Cuban Vice Minister for Labor and Social Security, Marta Elena Feitó Cabrera, explained that owning more than one business “is not the essence and the spirit of the TCP [self-employment], which consists of workers exercising their daily activities.”

The government also stated it would eliminate the tax exemption for businesses that have up to five employees and would instead impose a tax on a sliding scale that increases with each worker hired. It also ordered an increase in the required minimum monthly taxes of businesses in various categories. Economists, however,  have warned that more taxes on hiring employees could dramatically hamper the development of the private sector at a critical moment.

To increase state controls, each authorized activity will be under the supervision of a state ministry, in addition to the municipal and provincial government entities, which can intervene to set prices. The level of control reaches such extremes that the Official Gazette published a table with classifications on the quality of public restrooms and the leasing rates that would have to be paid by “public bathroom attendants,” one of the authorized self-employment categories. Some public bathrooms are leased by the state to individuals who then are responsible for upkeep and make their money by charging users a fee.

The new regulations also could have a significant impact on the cultural sector with the Ministry of Culture empowered to increase control over artists and musicians and impose more censorship in the country.

For example, there now are fines and forfeitures, as well as the possible loss of the self-employment license, to those who hire musicians to perform concerts in private bars and clubs as well as in state-owned venues without the authorization of the Ministry of Culture or the state agencies that provide legal representation to artists and musicians. Many artists in urban genres such as reggaeton and hip-hop, who have been critical of the Cuban government, do not hold state permits to perform in public. However, many usually perform in private businesses or in other venues. Painters or artists who sell their works without state authorization also could be penalized.

Even books are the target of new censorship: private persons, businesses and state enterprises may not sell books that have “contents that are harmful to ethical and cultural values.”

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[1]  Gámez, Cuba imposes more taxes and controls on private sector and increases censorship of the arts, Miami Herald (July 10, 2018).

Minnesota Orchestra Goes to Cuba This Week!

MN OrchestraAs discussed in a prior post, this February the Minnesota Orchestra announced that it would be playing two concerts in Havana, Cuba on May 15 and 16. At the invitation of the Cuban Ministry of Culture, Music Director Osmo Vänskä and the Orchestra will play Beethoven’s Choral Fantasy with the Cuban National Choir and Cuban pianist Frank Fernandez as well as Beethoven’s Symphony No. 3, Eroica. In addition, on the 15th they will play Beethoven’s “Egmont Overture,” and on the 16th Leonard Bernstein’s “Symphonic Dances” from West Side Story and Prokofiev’s “Romeo and Juliet.”

According to a recent article in Minnesota’s StarTribune newspaper, [1] this past January the Orchestra’s president, Kevin Smith, thought it would be great if the Orchestra could be the first U.S. ensemble to go to Cuba after the December 17th announcement of rapprochement between the U.S. and the island nation. Smith immediately called Minnesota’s U.S. Senator Amy Klobuchar and asked for help in pursing this idea. She, of course, said yes with this comment: “This trip is an example of the type of relationship we want to continue building between our people. Cubans are looking forward to more opportunities to interact with Americans.” [2]

Smith then asked the Orchestra’s musicians if they would give up a scheduled week of vacation in May in order to go to Cuba. They too said yes with enthusiasm. An Orchestra violinist, Aaron Janse, who was in a small advance group that went to Cuba in April, said, “We absolutely feel that we represent the state, the United States. We have a responsibility to be a bridge between the two countries. For us, as a community, to get this all together speaks volumes to where the Minnesota Orchestra is.”

Both concerts will be broadcast live by Minnesota Public Radio’s classical music stations (99.5 FM in the Twin Cities) on May 15 and 16 at 7:30 p.m. (CDT). Tune in.

The Orchestra also will visit a musical school and arts university and hold a joint rehearsal with a Cuban youth orchestra. The Minnesota Orchestra members will give small “Minnesota Orchestra” pins to people they meet. Presumably they will be wearing “Minnesota Twins” baseball caps as they travel around Havana. As former Minnesota Twins Cuban-American baseball player, Tony Oliva, has said, Cubans know about the Twins and their cap.

Accompanying the Orchestra on a chartered direct flight from the Twin Cities to Havana will be a group of board members and community supporters as “cultural ambassadors.” They will be led by board member, Marilyn Carlson Nelson, and her husband, Glen Nelson, who are paying for the trip. As a co-owner and former chairman of Carlson Companies, a global hotel company, Carlson Nelson is interested in business opportunities in Cuba for her company.

On a historical note, the Orchestra (then called the Minneapolis Symphony) in 1929 and 1930 performed in Havana, and one of its pieces on the first trip was Beethoven’s “Third Symphony,” which will be played again this weekend by the Orchestra. MPR News has a 1929 photograph of some of the Symphony members getting ready to board a ship in Havana after their first trip.

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[1] In addition to the StarTribune article, check out information about the trip on the Orchestra’s website and in a MPR News article.

[2] As discussed in prior posts, Senator Klobuchar is a strong advocate for U.S.-Cuba reconciliation. She is the author of the pending Senate bill to end the U.S. embargo of Cuba. She was a member of a U.S. Senate delegation that visited Cuba this February. She endorsed the formation of the U.S. Agricultural Coalition for Cuba that is being lead by Minnesota’s Cargill Incorporated.

Minnesota Orchestra To Go to Cuba

Minnesota continues to be a national leader in promoting our country’s reconciliation with Cuba. The latest participant in this campaign is the Minnesota Orchestra, which will play two concerts at Havana’s Teatro Nacional on Plaza de la Revolucion [1] on May 15 and 16.

Plaza de la Revolucion
Plaza de la Revolucion
Teatro Nacional
Teatro Nacional

At the invitation of the Cuban Ministry of Culture, Music Director Osmo Vänskä and the Orchestra will play Beethoven’s Choral Fantasy with the Cuban National Choir and Cuban pianist Frank Fernandez. The also will perform Beethoven’s Symphony No. 3, Eroica, and other numbers to be announced.

Minnesota Orchestra
Minnesota Orchestra
Osmo Vanska
Osmo Vanska
Frank Fernandez
Frank Fernandez

These concerts will be part of the 19th annual Cubadisco Festival, which also encompasses one of the most important recording competitions in Cuba. The focus this season is symphonic and choral music. The Orchestra also will participate in community engagement activities.

The Orchestra will be the first U.S. orchestra to visit the island nation since President Obama’s December 17th announcement of steps to re-establish diplomatic relations with Cuba.

The Orchestra’s Concertmaster Erin Keefe said, “We are humbled to be a part of the exciting process of reestablishing America’s cultural ties with the nation of Cuba. This tour represents a unique chance to bring two cultures together through music, and we could not be more grateful for the opportunity.”

Now I will solicit the Orchestra members to participate in Minnesotans for U.S.-Cuba Reconciliation.

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[1] The Plaza is the 31st largest public square in the world; it measures 72,000 square meters (774,936 square feet) and has been the site for crowds of 1 million for major speeches by Fidel Castro and for a mass celebrated by Pope John Paul II.