Text: Editorial Cuba Noticias 360
Photo: RL Hevia
This is not the first time that Cuban President Miguel Díaz-Canel Bermúdez has blamed the private sector for price increases in the contry, as if that was the only trigger, and ther was no burden with government mismanagement.
He did so now during his last visit to Holguin where he blamed small private businesses for this “insulting” rise in prices.
“Within the distortion of the economy, the thing that draws my attention the most as of the comments hear, and it was a topic that was discussed, is prices. I see the criticism about high prices more strongly.It’s just that prices can’t be the same as they were 5 or 6 years ago. But we cannot allow abusive prices and tortured prices,” said Díaz-Canel, who clearly did not address the structural roots of the crisis.
In his attack on the private sector, the president declared that “every time a group of non-state forms, the ones that sell at a high price, find out that there are verifications or that there is an exercise, they withdraw. That’s the first sign that they’re making up and we have to address it.”
During his visit, he claimed in his speech, always working “within the law”, without referring to the extreme conditions that small merchants face, in the face of a market without inputs, depending on irregular supply.
Without recognizing the limitations imposed by the government itself,the private sector continues to suffer more consequences. the most recent exmaple is resolution 56 of the Minister of Internal Trade, which gives the power to cancel the licenses for wholesale activity granted to micro-companies, small and medium-sized private companies and non-agricultural cooperatives.
What are the main structural issues affecting Cuba’s economy and private sector growth?
Interview: Analyzing Cuba’s Economic Challenges with expert Economist Dr. Maria González
Time.news Editor: Thank you for joining us today,Dr. González. There has been a lot of public discourse surrounding President Díaz-Canel’s recent comments regarding price increases in Cuba. He has placed heavy blame on the private sector. What are your thoughts on this perspective?
Dr. Maria González: Thank you for having me. President Díaz-Canel’s remarks reflect a common narrative where governments point fingers at the private sector during economic downturns. While its true that prices have risen substantially, attributing this solely to small private businesses overlooks the structural issues in the Cuban economy. There’s a disconnect between governmental policy and the realities faced by these businesses.
Time.news Editor: You mentioned structural issues. Could you elaborate on what these are and how they contribute to the economic challenges Cuba is facing?
Dr. Maria González: certainly. The Cuban economy suffers from several structural limitations, including a lack of input availability for small businesses and heavy regulation.As an example, the recent resolution 56, which empowers the government to cancel licenses for micro and small enterprises, exacerbates the already problematic environment.This creates a climate of fear and uncertainty, making it tough for private entrepreneurs to thrive.
Time.news Editor: In his speech, Díaz-canel suggested that private businesses often withdraw from the market when regulatory ‘verifications’ occur. How do you interpret this behavior from private sector operators?
Dr. Maria González: The withdrawal of private businesses during inspections indicates a significant concern about the regulatory environment. Many small business owners operate under extreme constraints; when faced with government scrutiny, it’s not surprising that they might limit their exposure to potential penalties or shutdowns. This withdrawal can also signal mistrust in the regulatory process, which adds to the overall economic instability.
Time.news Editor: Given these challenges, what practical advice would you offer to small business owners currently operating in Cuba?
Dr. Maria González: Small business owners should focus on building resilient models that can withstand regulatory pressures. This means diversifying their supply chains to reduce dependency on irregular supply sources. Additionally, forming networks with other business owners can provide mutual support and shared resources. Staying informed about policy changes and engaging in dialog with local authorities can also help in navigating this complex landscape.
Time.news Editor: The President’s comments frequently enough dismiss the harsh realities faced by private businesses.What implications dose this have for the future of the Cuban economy and its private sector?
Dr. Maria González: The ongoing blame on the private sector could discourage entrepreneurial efforts, stifle innovation, and lead to even more extreme economic hardship for families relying on small businesses. If the government fails to engage with these entrepreneurs and recognize their contributions to the economy, we may see a continued decline in economic performance and an increase in social unrest as people struggle to make ends meet.
Time.news Editor: lastly, how can the Cuban government improve its relationship with the private sector to foster a more productive economic environment?
Dr. Maria González: Transparency, dialogue, and collaborative policymaking are essential. The government needs to acknowledge the private sector as a valuable partner in economic development rather than an adversary. It should work towards creating policies that support business growth, simplify regulations, and ensure access to necessary inputs. A supportive environment can considerably improve both economic indicators and the quality of life for citizens.
Time.news Editor: Thank you, Dr. González, for sharing your insights on this crucial issue. Your expertise sheds light on the complexities of Cuba’s economic landscape and the challenges that lie ahead for its private sector.
Dr.Maria González: Thank you for bringing attention to these critical issues. It’s essential to keep the conversation going to find viable solutions for Cuba’s economy.