what innovations are waiting for the Cubans, broadcast on national television in more detail, said Deputy Prime Minister and Minister of economy Alejandro Gil Fernandez.
“the pandemic coronavirus we are in a very difficult situation. Four months we actually do not receive foreign exchange earnings from tourism. In this regard, we were forced to develop a strategy for economic recovery,” explained Gil Fernandez. According to the Vice Prime Minister, this strategy includes three phases. Moreover, the main principles of the economic life of the country remain the same. The economy of Cuba will retain its centralized planned character, the market will be governed by the authorities. But in the absence of tourists in the development of the economy, the authorities rely on domestic demand, as well as the business community, which will be given more freedom.
Speaking of domestic demand, the Deputy Prime Minister announced that will begin the work of the special foreign exchange shops where you can pay the local Bank card opened in foreign currency. Such an experiment, the authorities have already carried out about six months: currency in Cuba in the special state stores sell household appliances and auto parts, which are very popular among the local population. Now these stores will be added to the stores of food and household cleaning products.
in addition, the authorities decided to cancel the 10-percent duty on any transactions in US dollars. This step will allow thousands of Cuban families receive remittances from relatives living abroad, without losing a tenth part of the transferred amount.
Not surprisingly, one of the priorities of the new economic policy was named food production. We are talking about a whole range of measures such as the provision of private producers the right to import through state agencies required raw material. Allowed the creation of small enterprises, and both public and private. In addition, these firms will be able not only to import raw materials and then export finished products. Of course, using a special Supervisory state agencies that are to be developed.
the Reform on the Island is really overdue. Before the start of the pandemic, the economic situation in Cuba was not the best: on the background of continuous strengthening of the blockade by the US, the country is faced with disruptions in the supply of essential goods. Why are only long queues at all filling stations of the country sample by the end of 2019. Not much better was the situation with food, almost unpredictable lost one, then the other products. The amendments were introduced by the pandemic coronavirus. And although the Cuban authorities have successfully coped with the challenge, not allowing a large number of cases, and the health care system with honor passed that test, the economic situation on the Island only worsened. It is not surprising: one of the main sources of income for Cuba are tourism and tourists in Cuba, there’s already about four months. Question when the number of tourists will be restored, at least partially, also remains open.
In many ways, declared the highest leadership of the Republic of radical innovations appear, for example: “green light” to the business community, and foreign currency shops, and private import. But all these concessions are entered under strict state control. On the one hand it will allow the authorities to keep control, and on the other, the question arises as only some market mechanisms while maintaining total state control will really help the Cuban economy.
of Course, at once to solve all problems will not work, and made a step toward change was really needed. Now, this step primarily will depend on the ability of bureaucratic state machine of Cuba to adapt to the new reality. At least the nature of interventions suggests that the Island authorities acknowledge the existence of those pain points that hinder the development of the country, and intend to rectify this situation. Albeit with a pronounced Cuban accent and rhythm.
