Havana Reshapes Informal Sector

Havana Reshapes Informal Sector

If private industry is the lifeblood of national output, then Cuba is moving out of intensive care. Maybe. Havana disclosed this week that it will legalize small- and medium-sized businesses. One major gain is that now-informal entities will eventually be able to import and export legally. The road ahead is littered with potholes. Hardliners, for instance, argue that the United States will use these reforms to upend the revolution. But the policy shift will at least mitigate tension between the state sector and self-employed workers. Still another benefit is that the law will quantify the Cuban economy more thoroughly. GDP estimates are dubious because of the expanding role of the informal sector.informal sector.

Learn more at The Associated Press.

© 2016 Cranganore Inc. All rights reserved.

Image shows street mural in Santa Clara, Cuba. Credit: Greta6 at Can Stock Photo Inc.