Cuba to expand small business reform

Communist-ruled Cuba will expand its small business reforms in 2012 to allow people in a growing number of industries to operate as independent entrepreneurs, state media reported Monday.

Havana opened the door to private business nearly two years ago, beginning with hairdressers and expanding to tailors, watchmakers, cooks, plumbers and other independent professionals.

Despite excessive bureaucracy and a difficult transition for many on the island, the program was seen as a success. President Raul Castro expanded it in October 2010 and currently some 357,000 Cubans earn their living in the private sector.

Beginning January 1, the program will be broadened again to allow people currently working in carpentry, upholstery, metallurgy, photography, jewelry, shoe repair and electronics under state enterprises to go private.

"Gradually through the year, salaried employees of provincial (state) businesses in fields of personal, technical and home services will be integrated into the leased property system for independent workers," official newspaper Granma reported.

The Communist Party's paper said the measure will apply in six of Cuba's 15 provinces, including Havana, and "will be covering the rest of the country in a progressive manner."

It did not specify the number of workers involved in this new stage.

Castro launched the experimental reforms in April 2010, allowing employees of state-owned barbershops and beauty salons to become private workers, renting work space as well as paying taxes and social security contributions.

The moves aim to encourage more private enterprise while the regime slashes state jobs and tries to preserve its socialist principles in Cuba, where until recently every profession was tightly regulated by the government. AFP