Closed: “based on an analysis of our social purpose"

[El Presidente]

Many governments suck but the Cuban Government takes it to a whole new level. 

Cuba orders closure of fast-growing accounting cooperative

AUGUST 6TH, 2017

https://stluciatimes.com/2017/08/06/cuba-orders-closure-fast-growing-accounting-cooperative

(AP) — Cuban authorities have ordered the closure of one of the island’s fastest-growing cooperatives, days after announcing that they would stop issuing new permits for some private enterprise.

Scenius, which provides accounting and business consulting services, will have until Dec. 31 to completely liquidate, the cooperative’s founder and director Luis Duenas told The Associated Press on Saturday.

Duenas said the Ministry of Finances and Prices told him the decision to close Scenius was “based on an analysis of our social purpose, or of the activities that we have approved.”

Duenas called the decision an “error” that has no place in the policy of economic opening announced by Cuban officials.

On Tuesday, Cuba’s government said it would suspend the issuance of permits for a range of occupations and ventures, including restaurants and renting out rooms in private homes.

The suspension included the growing field of private teachers as well as street vendors of agricultural products, dressmakers and the relatively recent profession of real estate broker. The announcement did not say when the issuing of permits would resume and said that enterprises already in operation can continue.

President Raul Castro expanded an opening of the economy to private-sector employment in 200 categories of business in 2010. The government says nearly 570,000 people are employed in the enterprises, including hundreds of restaurants and guest houses. It later also legalized nonagricultural cooperatives.

Both recent moves have created fears that Cuba is putting the brakes on plans to reform its centrally planned economy, though officials say the country is not going back on its economic opening.

Duenas regretted that Scenius’ closing occurred days after the package of restrictions on independent work.

“There are many ways to do things, timing is very important, and the country is greatly affected by these things,” Duenas said.

Scenius began in January 2015 with two or three partners and in two years had more than 200. All its 70 clients are state-owned enterprises or business groups in agriculture, industry and communications.

According to official figures, there are more than 400 non-agricultural cooperatives in Cuba.

[NSXCIGAR]

Seems that Raul is determined to keep a very short leash on these "reforms". Unfortunately, it seems that these reforms were never intended to be permanent and will be dialed back whenever the state feels like it. Doesn't seem like Cuba is really interested in moving toward freedom or markets in any substantial way in the near future. 

I will say that regularly giving people some freedom and then constantly dialing it back is a good way to provoke hostility among the people. It's almost better from the state's point of view to just keep the people oppressed all the time lest they get a taste of freedom and feel resentful when it's yanked away. North Korea has figured that one out. 

[wabashcr]

On 8/7/2017 at 11:18 PM, NSXCIGAR said:

Seems that Raul is determined to keep a very short leash on these "reforms". Unfortunately, it seems that these reforms were never intended to be permanent and will be dialed back whenever the state feels like it. Doesn't seem like Cuba is really interested in moving toward freedom or markets in any substantial way in the near future. 

I will say that regularly giving people some freedom and then constantly dialing it back is a good way to provoke hostility among the people. It's almost better from the state's point of view to just keep the people oppressed all the time lest they get a taste of freedom and feel resentful when it's yanked away. North Korea has figured that one out. 

Everything I've read about Raul points to the notion that he's a pragmatist.  After he took over from Fidel, he recognized the need for reforms, but he had Fidel behind the scenes making sure nothing went too far.  I wonder how much of this tightening of the reins is Raul, and how much of it is pressure from remaining Fidel loyalists.  Raul is in his twilight years.  He doesn't have anything to fear from economic reform.  It could indeed be his legacy.

Obviously economic reforms will loosen the grip of the authoritarian government, which is of concern to those who will be left in charge once Raul either steps away or dies.  They don't know what a free Cuba would look like as it relates to the regime.  The status quo is all they've ever known.  So as long as this regime is in control, it's naive to expect any kind of progress without some regression.  But the net is still positive.  It's just going to take more time.  The boat keeps rocking, eventually there will be a tipping point.  We're just not there yet.

[OZCUBAN]

It's pernicious