Showing posts with label Cuban Entrepreneurship. Show all posts
Showing posts with label Cuban Entrepreneurship. Show all posts

July 24, 2015

Political Report # 1061 How Cuba is using capitalism to save socialism By Tim Fernholz, Quartz


                         

             A row of classic convertibles for rent in central Havana. 
         Quartz/Tim Fernholz



By Tim Fernholz, Quartz

HAVANA, CUBA-If you are fantasizing about your first trip to Cuba, that fantasy presumably includes cruising down the Malecón, Havana’s seaside promenade, in an open-topped 1957 Chevrolet Bel-Air, with the tropical light playing over the decrepit buildings and the warm sea breeze tickling your scalp. Cigars are probably involved, and rum.
The rum and cigars are produced by state-managed Cuban enterprises. But who is maintaining the classic cars? In many cases, not the Cuban government, but self-employed entrepreneurs.

Allowing limited private enterprise within its socialist economy was how Cuba weathered the collapse of the Soviet Union while still under the US embargo. And now that Cuba-US relations are warming, that nascent private sector is proving a surprisingly fertile common ground for the two governments-albeit for rather different motives.
For Havana, liberalization holds the promise of an economy strong enough to protect the foundation of Cuban socialism-state-run health care, education, and social security programs. In Washington, US policymakers see looser rules around US travel and trade as a way to boost an independent Cuban middle-class isolated by the 50-year embargo.