Cuba is taking a significant step toward opening its economy to the free market after decades of state control. The comprehensive reform package approved by parliament on June 20 opens the country's strategic sectors such as energy, pharmaceuticals and ports to private investment.
According to Prime Minister Manuel Marrero's statement in parliament, 110 of the 176 measures have already been implemented. The remaining regulations are expected to come into force from September. The reforms are seen as part of the country's search for a way out of a deep economic crisis.
Sectors opened to private investment
The new package opens energy, pharmaceuticals, nursing homes, passenger and freight terminals, and port facilities to private investment. In addition, vehicle imports, renewable energy, and, under certain conditions, oil and mining activities will also be transferred to the private sector.
Prime Minister Marrero announced that more than 100 non-state actors have been authorized for the wholesale trade of fuel. It was also stated that the first foreign investment project for the import, distribution and marketing of fuel has been approved.
Strategic sectors will remain under state control
Despite the reforms, the Cuban government will continue to keep sectors such as health, education, telecommunications, security, defense and the tobacco industry under state control. These sectors are defined as strategic.
Changes in agriculture and housing
Parliament's agenda also includes new regulations on agriculture, housing and labor law. Agricultural land will remain state-owned, but the usage rights granted to farmers, cooperatives and private companies will be expanded.
In the housing sector, Cubans will be allowed to acquire a second home in cities. A mortgage system will also be introduced for the first time in the country.
According to officials, more than 15,000 small and medium-sized enterprises (SMEs) operating on the island employ more than a third of the active population. The reforms are also expected to contribute to the growth of these businesses.
