July 15, 2013

Cuba Continues Shift from State to Cooperative Ownership

Executive Director

In a rare move, the government of Cuba invited Western reporters, including Americans, to visit the island and report on economic reform: the launching of an experiment in free enterprise in the form of cooperatives. The law, which took effect on July 1, has, according to the government, led to 197 independent businesses, in retail food, construction, manufacturing, and transportation. The cooperatives include some new businesses but are primarily formerly state-owned companies that have been converted.
Reporting on the week-long press visit, CNBC reported that the government official in charge of reform, Marino Murillo Jorge, described the goal of the effort as creating "a sustainable socialist society," but noted that, "life has shown us that the government cannot occupy all of the economy." CNBC also reported that it was unable to find or interview members of any of the new cooperatives.