Big Step Backward For Cuban Economy

[BTWheezy]

23 hours ago, PigFish said:

...other 

...communist 

...counties.

Fear societies, tyrannies. Typically, if not wholly linked to Marist ideology.

What is that cable company you guys all hate over there? Name me one guy they shot for bitching about the service or the bill.

The Pigster!

 

Piggy...to be fair, I wanted to shoot *myself* dealing with Comcast recently.

That said, amen on Marxist idealolgy. It just doesn’t work. 

[PigFish]

... wanted to shoot yourself over dealing with customer service I get. Getting shot over criticizing government, I don't!!! Cheers! -P

[oliverdst]

On 7/14/2018 at 4:58 AM, nino said:

A big step backwards for the Cuban economy :

"The new regulations make one thing abundantly clear: The Cuban government, state-owned enterprises and the ruling Cuban Communist Party do not want to risk major competition to their own interests—economic, commercial, and political—from a potentially capital-rich, diversified emerging private sector. Apparently, perceived interests in security and stability have overruled Cuba’s own declared economic development goals."

 

 

 

https://www.brookings.edu/blog/order-from-chaos/2018/07/13/cuba-moves-backwards-new-regulations-likely-to-impede-private-sector-growth/

 

Cuba moves backwards: New regulations likely to impede private sector growth

Richard E. Feinberg and Claudia Padrón Cueto Friday, July 13, 2018
In a leap backwards, the Cuban government has published a massive compendium of tough new regulations governing the island’s struggling private enterprises. The new regulations—the first major policy pronouncement during the administration of President Miguel Díaz-Canel—appear more focused on controlling and restricting the emerging private sector than on stimulating investment and job creation, more concerned with capping wealth accumulation than in poverty alleviation.

Many small businesses that cater to foreign visitors are already suffering from Trump-era restrictions and travel warnings that have decimated the U.S. tourist trade in Havana. But the new regulations are more a product of domestic Cuban politics than foreign pressures.

On a positive note, the Cuban government promises to renew the granting of licenses for many categories of private businesses by year-end, repealing the extended suspension announced last summer. But the new regulations greatly empower government rule-makers and intrusive inspectors, casting a gray cloud over the island’s business climate. Many existing businesses are likely to retrench if not close altogether.

The private sector grew dramatically in recent years, to include nearly 600,000 owners and employees by official figures, with many more enterprising Cubans working informally; in contrast, the state sector stagnated and further decapitalized. Indeed, many thriving private businesses began to compete successfully against state entities, notably in restaurants, bars and night clubs, guest houses, construction, and transportation. The healthy wages paid by profitable private firms often eclipsed the meager salaries paid to disgruntled government officials and factory workers.

The extensive, highly detailed regulations, which go into effect in December, read like “the revenge of the jealous bureaucrat.” Drawing on a multitude of ministries and operating at all levels—national, provincial, and municipal—interagency committees will now be empowered to authorize, inspect, and regularly report upon private businesses under their jurisdictions. The regulations are replete with astoundingly specific performance requirements and innumerable legal breaches that seem crafted to allow government officials wide discrimination to impose heavy fines (or extort bribes), suspend licenses, and even seize properties.

To cite but a few such regulations: Private restaurants and guest houses must cook food at a minimum of 70 degrees Celsius for the time required for each food; day care centers must allocate at least two square meters per child, have no more than six children per attendant, and be outfitted with pristine bathroom facilities described in exquisite detail (private schools and academies are strictly prohibited); and private taxi drivers must document that they are purchasing fuel at government gas stations, rather than buying on the black market. Further, local officials can deny new licenses based on “previous analyses,” even if the proposed business plan meets all the other specifications, and can fix prices “when conditions warrant.”

The regulations could help shield state enterprises from unwanted private competition. The very ministries that stand to lose market shares are in charge of approving licenses in their sector. For example, the ministry of tourism has the lead in judging licenses for private guest houses. Appeals are possible, but to administrative authorities, not to judicial courts.

Government agencies are also seeking to reassert control over the island’s vibrant artistic communities. The regulations prohibit artists from contracting directly with private restaurants and bars; rather they must be represented by public-sector entities that charge commissions up to 24 percent of revenues. Moreover, performers must not use “sexist, vulgar or obscene language,” which if enforced could imply the banning of popular hip-hop and reggaeton songs and videos.

Perhaps most telling are the restrictive rules squarely aimed at inhibiting private capital accumulation. In a sharp turn from past practice, Cubans will now only be allowed one license for one business, effectively outlawing franchising and diversification. Capacity at restaurants and bars is capped at 50 guests. Most biting, the new regulations establish an upward-sloping wage scale (whereby wages rise as more workers are hired); hiring more than 20 workers becomes prohibitively expensive (six times the average wage). Unlike in the past, employers will now have to pay taxes on the first five workers hired as well.

Many private businesses must also record their transactions (revenues and expenditures) in an account at a government financial institution and keep three months of prospective taxes on deposit. Intended to reduce underreporting of income, this measure will significantly raise the effective rates of taxation. Investors must also explain their sources of funds. In a country where political authority is unchecked, these financial impositions alone will discourage many potential entrepreneurs.

The Cuban authorities have repeatedly asserted their interest in attracting foreign investment, to compensate for weak domestic savings. However, foreign investors are likely to view these new regulations, even though they apply to domestically-owned firms, as indicative of an official wariness if not hostility toward private enterprise in general. Risk-averse foreign investors will also note that the Cuban government is quite capable of precipitously altering the rules of the game.

The new regulations are the first major policy initiative promulgated during the administration of President Miguel Díaz-Canel. Many of the resolutions were approved by the Council of State under Raúl Castro, prior to Díaz-Canel’s inauguration in April, but nevertheless were issued during his young tenure. Not a good sign for those hoping that Díaz-Canel, 58 years old and ostensibly representing a younger generation, might quickly place his own imprimatur over the extensive state apparatus.

The new regulations make one thing abundantly clear: The Cuban government, state-owned enterprises and the ruling Cuban Communist Party do not want to risk major competition to their own interests—economic, commercial, and political—from a potentially capital-rich, diversified emerging private sector. Apparently, perceived interests in security and stability have overruled Cuba’s own declared economic development goals.

Some changes. At the moment I don't have more details.

https://www.efe.com/efe/america/economia/cuba-suaviza-las-nuevas-normas-de-trabajo-autonomo-tras-el-descontento-en-sector/20000011-3834696#

Cuba suaviza las nuevas normas de trabajo autónomo tras el descontento en el sector

EFELa Habana6 dic. 2018

 

El Gobierno de Cuba anunció hoy cambios en las nuevas normas que regularán el trabajo por cuenta propia, después de que parte del sector manifestara su descontento por considerar excesivamente restrictivas algunas de las medidas.

La normativa, que entra en vigor este viernes, tenía previsto restringir a una sola el número de licencias que pueden ostentar los "cuentapropistas" o trabajadores autónomos y también limitaba a 50 asientos la capacidad de los boyantes restaurantes privados, los "paladares".

[oliverdst]

http://www.finanzas.com/noticias/empleo/20181206/cuba-suaviza-nuevas-normas-3958834_age.html

Cuba suaviza nuevas normas de trabajo autónomo tras descontento en el sector

06/12/2018 - 02:26Agencia EFE

Imprimir

 

El Gobierno de Cuba anunció hoy cambios en las nuevas normas que regularán el trabajo por cuenta propia, después de que parte del sector manifestara su descontento por considerar excesivamente restrictivas algunas de las medidas.

La normativa, que entra en vigor este viernes, tenía previsto restringir a una sola el número de licencias que pueden ostentar los "cuentapropistas" o trabajadores autónomos y también limitaba a 50 asientos la capacidad de los boyantes restaurantes privados, los "paladares".

Estas dos limitaciones, que figuraban entre las más polémicas, han sido eliminadas y finalmente no se aplicarán, informó hoy la ministra cubana de Trabajo y Seguridad Social, Margarita González, en un programa especial televisado por la cadena estatal.

Los trabajadores por cuenta propia, que hoy representan el 13 % de la fuerza laboral del país según la ministra, podrán de este modo contar con más de una licencia, lo que permitiría combinar como hasta ahora dos o más tipos de negocios en un mismo espacio, como cafetería y librería, o restaurante y bar.

La decisión de modificar esta norma "parte del principio de que no deben existir diferencias entre sector estatal y no estatal, y en el primero está permitido el pluriempleo", explicó González.

Sin embargo, precisó que la limitación inicial a una licencia se debió a que existían "distorsiones que tienen que ser rectificadas", y citó el caso de un trabajador que acumulaba siete permisos tan variopintos como el de productor-vendedor de calzado, productor-vendedor de piñatas, agente de telecomunicaciones y transportista.

En cuanto a la limitación de 50 asientos para restaurantes, había generado una fuerte preocupación entre los dueños de los populares "paladares", que en muchos casos han realizado fuertes inversiones para ampliar su negocio y mantienen a decenas de empleados a su cargo.

"Las capacidades van a estar en correspondencia del tamaño del local", adelantó la ministra, en respuesta a las preocupaciones expresadas por los hosteleros, principalmente a través de las redes sociales, en los últimos meses.

Con una población total de unos 11,1 millones de habitantes, Cuba cuenta al cierre de 2018 con 588.000 cuentapropistas, cifra que casi cuadruplica los 157.000 del año 2010 cuando se legalizó el trabajo por cuenta propia.

La titular de Trabajo recordó que el "reordenamiento" del trabajo por cuenta propia buscaba que el sector continuara su labor "con orden y disciplina", poniendo coto a ilegalidades como la existencia de trabajadores sin contrato, la evasión fiscal o el uso de productos de procedencia ilícita.

Admitió que los cambios anunciados en julio pasado y que ahora se modifican crearon "malestar y estados de opinión desfavorables", aunque adujo que se debió a una mala interpretación de la normativa.

La marcha atrás que ahora da el Gobierno en las medidas más polémicas se decidió después de mantener numerosas reuniones con cuentapropistas en los últimos meses para explicarles la normativa, arguyó la funcionaria, quien dijo que sus "criterios, ideas y experiencias" fueron evaluados "rigurosamente".

La ministra no especificó si habrá cambios en la nueva normativa para el sector del transporte, donde muchos trabajadores autónomos también han expresado un fuerte malestar y han amenazado con iniciar una protesta desde el mismo día 7 si se les aplican las restricciones.

Los transportistas denuncian que las disposiciones que entrarán en vigor el viernes limitarán su capacidad de elegir las rutas y clientes, negociar tarifas y expandir su negocio, además de imponerles mayores impuestos, por lo que temen que su actividad deje de ser rentable.

[MD Puffer]

On 7/15/2018 at 10:26 AM, Monterey said:

Cuba is the only country that we have an embargo against...

*Cough cough*

And North Korea.  And Syria.  And Sudan.  And Iran.

? 

[Hammer Smokin']

that reminds of the game "which of the following is not like the others"...