The Council of Ministers has approved six decree laws, which will be presented to the Council of State, updating legal provisions for micro, small, and medium-sized enterprises (MSMEs), self-employed workers, and private sector companies in Cuba. "Contrary to what the enemies of the Revolution claim, this is not a crusade against MSMEs or non-state management forms. These are policies approved at the Communist Party Congress," said Manuel Marrero regarding the new decrees.
The extraordinary meeting took place on July 12. The Cuban Prime Minister assured that the initial regulations had legal gaps that led to "distortions." He also acknowledged errors on the state counterpart's part when contracting services from the private sector. "It must be clear what role each actor plays in the country's economy, and the Constitution of the Republic makes it clear that the main actor is the socialist state enterprise," he emphasized.
The Council of Ministers also approved two other decrees, one of which modifies Decree 49 and specifies the activities that MSMEs are not authorized to carry out. The second decree is for creating a new Central State Administration body: the National Institute of Non-State Actors.
Since last week, the government has begun fining MSMEs for alleged violations of capped prices on six essential items. One of the sanctioned MSMEs is located in East Havana. The owner was selling oil at 1,200 pesos when the state-set price is 990 pesos per liter. He received a fine of 8,000 pesos under Decree 30, Article 7, Section B.
The government has involved the public in its battle against the private sector. Authorities have asked citizens to report any seller who does not adhere to the price caps and dares to violate the recently established norms via phone.
Understanding the New Cuban Decrees on Non-State Management
The following questions and answers provide more insights into the recent decrees approved by the Cuban government and their impact on non-state management and MSMEs.
What are the six decree laws approved by the Council of Ministers?
The six decree laws aim to update legal provisions for MSMEs, self-employed workers, and private sector companies in Cuba. Specific details of each decree were not disclosed in the meeting.
Why did the Cuban government find it necessary to update these regulations?
The government identified legal gaps in the initial regulations that led to distortions in the management and functioning of MSMEs and private sector activities. These updates aim to correct those issues.
What role does the Constitution of the Republic assign to state enterprises?
The Constitution of the Republic states that the primary actor in the Cuban economy is the socialist state enterprise, emphasizing its significant role over non-state entities.
How is the government enforcing the new decrees on price caps?
The government has started fining MSMEs for violations of the capped prices on essential items and has called on the public to report any non-compliant sellers via phone.