Taking a step forward, and still much to be done
HAVANA – Wednesday, December 5, 2018, may be remembered as one of those opportune days that proves that there is always time to change and do the right thing. In an unusual decision, especially because of the sensitivity of the issue, the Cuban authorities reversed some of the regulations related to Self-Employment Work (TCP) announced in July and that would take effect on the seventh of this month.
From the start, when some of the new policies were announced, there was a rash of discontent from many, including the academic sectors. It awoke an activism that prompted the attention of the authorities to the measures that were understood as legitimate concerns of those sectors.
Specifically, the possibility of performing more than one of the approved work activities has been maintained. Likewise, limiting to 50 chairs the maximum allowed in coffee shops, restaurants and bars has been scrapped. From now on, the limit will be determined by the capacity of the premises in question. Another highly sensitive issue, business bank accounts are still required, but with greater flexibility and depending on the business’s size and impact. Specifically, the minimum balance required was reduced and the amount of cash that can be retained for different uses without depositing in the bank has been increased.
This step taken by the Cuban government must be recognized as just, and must be considered proper, necessary and courageous in the current socioeconomic conditions of the country. The president himself deserves credit for publicly recognizing the harmful effects of those decisions, requiring his ministers to explain the changes in a public program, and giving real meaning to the much vaunted concept of “collective government” or of the people. The decision comes at a delicate economic moment. Cuba did not need another unnecessary blow that further undermines its battered economy, or destroy jobs when there are no resources or policies to create them in other sectors.
In the past I have divulged several analyses explaining in detail the weakness of the arguments made to justify the changes in the regulatory framework and the process followed in order to “perfect” the process. In this latest episode, both content and form suffered from an indefensible fragility.
The decision-making process that included the most minute of circumstances contained serious problems from the very beginning: a policy of “perfecting” self-employment that has not been shared with the public. In addition, the effects of those regulations would have contradicted the letter and spirit of the documents adopted at the request of the VII Congress of the Communist Party of Cuba in 2016, and several of the articles of the new Constitution project.
The credibility of what shaped them would have been seriously damaged. It seems an insurmountable contradiction to encourage foreign investment while placing all types of obstacles in the way of productive activity at home. If workers involved in social and government services are not taken into account, for example, there is no longer much difference between the non-state sector and the state business sector — they are less than 200,000 workers. A rational economic policy would assume this reality and try to find ways to give them fair consideration in the development of the country’s perspective.
Instead of collecting opinions of sectors directly involved after drafting the regulations, the consultation could be conducted during the preparation process. Moreover, one could think of going further by fully recognizing the stakeholders as legitimate interlocutors. The Cuban government would not be weakened during this process and therefore should not fear it. Quite the opposite. Cubans do not require approval to make demands of their government; it is their right as citizens.
Consultations with “experts” and “temporary work groups” are necessary, but they do not replace the broader dialogue. This situation acquires full meaning when it leads to modification of guidelines at the point of departure. Timely rectification is not a sign of weakness, the president has said. Why should it be? The Cuban government should know that the vast majority of citizens welcome initiatives of this type, and that this most recent step has the approval of a large proportion of the Cuban population.
It is worth noting, however, that complaints of tax evasion, and the purchase of stolen or ‘shady’ goods are common concerns anywhere in the world. Self-employment in Cuba is part of a larger system whose failures can not be assumed only by this sector. That said, we must not forget that the corrections only return us to a situation similar to that of August 2017. And a year and a half has passed and many projects have been postponed or permanently buried. Cuba does not have the time to wallow for 18 months in an unnecessary and counterproductive trap. The impression that it gives is one of improvisation and haste. The fact is that the challenges are so great that these blunders do not place us in a good position to deal with them. Hopefully, we will have learned our lessons.
Unfortunately, not all inconveniences met the same fate. Those in the transportation industry were not so lucky. Beyond endless and senseless explanations, the truth is that the dysfunctional public transport system in the capital is in one of its worst moments. It is surprising that, after 60 years, efforts are being made to alleviate tensions by mentioning the imminent incorporation of new vehicles to the fleet that serves Havana. How many different generations of buses have traveled the avenues of this city and country? Time and again it has been shown that much more than resources from who knows who are needed to straighten out this mess. What policies have left us with an old, inefficient fleet, that contaminates us and is uncomfortable? The truth is that the result leaves us with no effective alternative — either public or private.
Self-employment’s path forward could have been applied when reconsidering the approach to transportation. I believe it’s a missed opportunity. The moment was propitious, given the well-known malaise in other areas of our society. The president’s stand has been legitimized and backed. But much remains to be done.
The lack of a comprehensive vision and the resolve to leave behind stagnant notions are the biggest problems facing the Cuban government. They must do so to revitalize the country’s future that can be shared by the majorities, and where there is a reasonable chance of succeeding in the world of the 21st century.
