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Henry Colina

Henry Colina

Photo: Rolando Pujol.

The growing private sector in Cuba

One of the main changes being made by the Cuban government is opening up the self-employment sector as a way of decentralizing state activities. This is reflected in the “Economic and Social Policy Guidelines,” known as the “Lineamientos,” which are in effect the economic program of the reform process. The private sector, which was unstable in the Cuban economy until the 1990s and to a lesser degree until 2008-2009, began to be promoted in 2010 with the approval of 181 authorized activities. And in 2014, this number was increased to 201 (65 more than in 1995). This opening-up process is different from such developments in the past. Previously, the authorized self- employment categories were conceived as complements to state activity, which limited them. Today, many services are being provided that were not offered (or inadequately) by the state, while others are engaging in open (and sometimes unequal) competition with state companies. In addition, a large layer of the self-employed are workers employed by small businesses, which adds two more differences: the ability to exploit labor, and the appearance of a higher organizational form, equivalent to small private businesses (still without legal status). Most “popular” activities, in descending order: employee sales and elaboration...