PINAR DEL RIO


support babalú


Your donations help fund
our continued operation

do you babalú?

what they’re saying


bestlatinosmall.jpg

quotes.gif

activism


ozt_bilingual


buclbanner

recommended reading





babalú features





recent comments


  • Rayarena: I think that your link is broken. I clicked on to your hyperlink of the recording of your interview, but I got one of those 404...

  • asombra: Fighting back tears, eh? Have they ever shed a tear for the victims of the regime Tokmakjian helped maintain for over 20 years?...

  • asombra: “There is something very sinister going on in Cuba.” No shit, Sherlock. Truly, there is no shame.

  • asombra: It’s very simple: Obama can’t or won’t do his job, and Gross helped put him in office.

  • asombra: I don’t know, Carlos. Philip IV had decent legs, but he was Louis’s uncle. Louis may have been better endowed, or...

search babalu

babalú archives

frequent topics


elsewhere on the net



realclearworld

CATO on Cuba’s ‘new’ foreign investment law: Less liberalizing, more regulations

The devil is in the details as they say. And in Cuba, the devil is always the Castro dictatorship.

Simon Lester at the CATO Institute:

http://3.bp.blogspot.com/_jezflJqR7go/TTJeneK29kI/AAAAAAAAAEg/zfaYytiJ-qw/s1600/cato-logo.gif

Liberalizing Investment in Cuba

I’m no Cuba expert, but I have followed the events of recent years with interest. It seems that there have been tentative steps towards liberalizing the Cuban economy, as well as slightly better economic relations between the United States and Cuba. I’m hopeful the long-term trend is towards Cuba becoming a free market democracy, with normal relations with the United States.

In the short-term, though, I’m frustrated by how the “liberalization” of foreign investment is being carried out there.

[...]

Welcoming new foreign investment is great. Here’s the problem, though: In order to liberalize investment, a government really doesn’t need to do anything fancy. It can just say, “foreign investment is permitted, and will be treated like domestic investment.” Very simple. Furthermore, lower tax rates and reduced regulatory burdens can help encourage such investment. Again, very simple.

In practice, though, governments make this process difficult and less liberalizing. Here, what Cuba seems to have done is offered special tax breaks for new foreign investments, and then subjected receipt of these tax advantages to certain hiring conditions. In effect, it introduces two distortions as part of the liberalization process: favoring new foreign investors over other investors through the tax code and then subjecting the favored investors to additional regulation. 

Read it all HERE.

Comments are closed.