Economic reforms in Cuba?

• Author: Kilne, Michael

Editor's Note: A long time analyst of Cuban affairs looks at the latest economic "reforms" in the island nation and finds that the measures come up short.--Ed.

The Cuban government, which has experimented unsuccessfully with minor reforms since the early 1990s, has apparently decided that a deeper overhaul is required to repair the island's failed economy. In an address to the National Assembly in August, Raul Castro admitted: "We have to erase forever the notion that Cuba is the only country in the world in which people can live without working." He further admitted that the decades old US embargo--"a crippling, punitive measure"--could no longer be blamed for all the island's woes.

The measures announced so far do not amount to real reform, but rather constitute an attempt at a controlled correction. The AP obtained a leaked 26-page internal Communist Party document, dated 24 August, which at first reading seems to envision a radically revamped economy, with a new tax code, legalized private cooperatives and a drastically smaller state payroll. The document details plans to lay off 500,000 superfluous government workers by March 2011, and to encourage those workers to shift to private enterprise. Firing a half million workers is indeed a significant step;. the number represents 10 percent of the total Cuban work force of 5.1 million, 85 percent of which is employed by the State. More telling, however, is that even with such huge layoffs, 74 percent of all Cuban workers will still be State employees after March 2011.

Although the plan does represent the largest shift to private enterprise since the early 1990s, there is nothing to suggest that the regime intends to promote a true free enterprise system, or relinquish control over the economy. The plan does little more than to encourage laid off workers to start "small businesses," or form cooperatives for farming, construction, taxi services, auto repairs, etc. On 24 September, Granma printed the entire list of 178 approved private activities, only seven of which are entirely new--including accountants, bathroom attendants, tutors and fruit vendors. The remaining 171 approved activities include such everyday jobs as bricklayer, garbage collector, automobile mechanic, hairdresser, etc.

The list also borders on ridiculous in its specificity, e.g., muleteer, pony rides for infants, clown, magician, floral wreath arranger, baby sitter, pilot of ferries crossing Havana's bay, etc. Absent is...