• Submitted by: manso
• Politics and Government
• 09 / 21 / 2010

---

Published September 20, 2010. HAVANA (Reuters) - The pace of economic reform is picking up in Communist Cuba with the announcement last week that 500,000 state jobs will be shifted to the private sector.

It was the most important policy move since President Raul Castro took over day-to-day governing from his ailing brother Fidel Castro in July, 2006. He assumed the presidency in 2008.

Castro signaled from early on that one of the world's last Soviet-style economies was due for an overhaul under his watch,but he has ruled out any switch to Western-style capitalism.

By October, 2006, the official media had started publishing criticism, taking aim at everything from the state monopoly on buying and selling food, to retail fraud and poor services.

In a closed-door session of parliament in December, 2006 Castro bluntly declared "we are tired of excuses," and demanded an end to "bureaucratic red tape".

What follows is a chronology of Raul Castro's most important reform-oriented measures and statements:

2007

July - In his first major speech, Castro calls "absurd" the state milk collection and distribution system and says farmers will deliver directly to local consumers where possible.

"To have more, we have to begin by producing more, with a sense of rationality and efficiency. To reach these goals, the necessary structural and conceptual changes will have to be introduced," he said.

August - Castro signs a law ordering all state companies to adopt a system of "perfecting" management. This was developed by the military when Castro was defense minister to improve performance using capitalist-style management techniques.

2008

February - In his formal inaugural address as Cuban president, Castro says: "We must make efforts to find the ways and means to remove any deterrent to productive forces. In many respects, local initiative can be effective and viable".

March - Computers, cell phones, DVD players and electric appliances go on sale for the public and bans on Cubans renting cars and staying in tourism hotels are lifted.

A sweeping reform of agriculture begins. This includes decentralization of decision-making, orders to state bureaucrats to stop favoring state farms over private farms,increases in state prices paid to farmers, leasing of fallowstate land and loosening of regulations on farmers selling directly to consumers instead of to the state.

August - A significant labor reform ties wages to individual productivity, not company performance, and caps on earnings are eliminated.

Government announces domestic freight transport and housing construction will be decentralized to the municipal level.

Despite economic devastation caused by hurricanes Gustav and Ike in August and September, and a liquidity crisis triggered by the global economic downturn, Castro says his reform program will move forward.

2009


Plans are unveiled to develop suburban farming around most cities and towns, using mainly private plots.

June - The Communist Party daily, Granma, begins publishing letters for and against small private business, elimination of some government subsidies and other reforms.

July - A statement issued after a meeting of the Communist Party Central Committee says that the search is on for"innovative formulas that will release productive potential."

August - National Assembly establishes office of the Comptroller General of the Republic. Castro says it will aim to improve "economic discipline" and crack down on corruption.

He calls for "elimination of free services and improper subsidies -- with the exception of those called for in the constitution (healthcare, education and social security)."

Santiago mountain dwellers are allowed to sell fruits and produce at roadside kiosks. Spreads to adjoining provinces.

September - Licenses are issued to food vendors in various cities, making them legal. Studies begin on switching some small retail services and manufacture to cooperatives.

October - Granma announces state work place lunchrooms will close in exchange for a daily stipend.

December - Economy Minister Marino Murillo tells parliament: "We have begun experiments ... to ease the burdenon the state of some services it provides."

2010

January - Municipal governments are ordered to draw up economic development plans that may include cooperatives and small business. A pilot project where taxi drivers lease cabs instead of receiving a state wage begins in Havana.

April - Barbershops and beauty salons with up to four chairs go over to a leasing system, the first time state retail establishments are handed over to employees since their nationalization in 1968. Rules for home construction and improvements are liberalized.

May - Murillo announces plans to "create in the majority of municipalities supply markets where farmers can acquire directly the necessary resources to produce, substituting the current system of assigning resources centrally."

June - Sale of construction materials to the population is liberalized. The government authorizes farm cooperatives to establish mini-industries to process produce.

August - New rules authorize Cubans with small garden plots to sell produce directly to consumers at roadside kiosks.

The state increases from 50 to 99 years the time foreign companies can lease land as part of tourism and leisure development projects, such as golf courses and marinas.

Stores open where farmers can purchase supplies in local currency without regulation.

September - The government announces the lay-off of more than 500,000 state workers and 250,000 new licenses for family businesses over six months. Some 200,000 of the state jobs will go over to leasing, cooperatives and other arrangements.

Regulations governing self-employment are significantly loosened and taxes tightened. The family businesses are authorized for the first time to hire labor and rent space. (Editing by Jeff Franks, Pascal Fletcher and Kieran Murray)

By Marc Frank

Source: http://www.foxbusiness.com/markets/2010/09/20/chronology-raul-castros-ro...