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realclearworld

Raul reforms his “reforms” to ensure the failure of private enterprise

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Upscale Castrogonian Shopping Mall for Private Entrepreneurs

The first of the year is a common date for new laws to go into effect.

In the USA, today brings Obamacare into existence.  In Connecticut, keeping snow on one's car roof will be against the law.  In Castrogonia, it's a new "reform" that prevents Cubans from competing with the Castro dynasty's  all-encompassing state-run monopoly.

This law exposes the fraudulent nature of Raul Castro's economic "reforms", but the mainstream media have not focused sufficiently on it.  Appropriately, a dissident Chinese news agency based in New York explains it all  sin pelos en la lengua (straightforwardly, very clearly).

From NTD (New Tang Dynasty News China)

How Dare You Compete With Our Monopoly!: Ban Prohibiting Sale Of Imported Garments Goes Into Effect In Castro Kingdom

Cuban entrepreneurs are struggling to meet a December 31 deadline to sell off their imported clothes as a reform established by the Cuban government banning the sale of imported goods at lower prices than those offered by the state, goes into effect on January 1.

Three years ago communist-run Cuba allowed retail services in the form of 200 individual activities from clowns, seamstresses, food vendors, taxis and the building trades, to small businesses such as restaurants, cafeterias, bed and breakfasts and home-based movie theatres.

The new regulations, announced in September, will put the brakes on these individually owned and run businesses.

Enterprising residents took advantage of some of the categories, for example seamstress and household supplies salesman, offered imported clothing and supplies in greater variety and at lower cost than the state.

Others bought out available supplies at state stores and resold them at higher prices, which is now also banned by the new regulations.

Some of the clothes sold here were often not available locally or were sold by the state at a minimum 240 percent markup.

At this small clothing market in Havana, individual business owner Luis Garcia, said the decision would create more unemployment.

"I hope the state takes this into consideration and that we continue selling because we are definitely about 400 thousand or so individual business workers today left without a job, about 80 percent of them."

Another clothes vendor, Yordany Diaz, said the future for the New Year looked bleak.

"Now we'll have to seen what we'll do. Find another job, do something because we can't be left without a job. We thought this was going to change and that they would give us licenses in foreign currency, that something was going to change but nothing did."

Vendor, Rafael Martinez, analysed ways of breaking the new set rules.

"I don't know in which way we could, maybe, place ourselves some other place, clandestine, I don't know in which way."

A year ago, the state dramatically increased customs duties on travellers with the apparent aim of protecting state-run stores from the growing flow of merchandise imported informally.

Currently, 78 percent of a labour force of 5 million works for the state and the remainder in the non-state sector mainly work in retail services and farming.

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