Subscribe Login
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
  • Home
  • News
    • International News
  • Latest
  • Business
  • Cartoon
  • Games
  • Food Awards
  • Health
  • Entertainment
    • Bookends
  • Regional
  • Sports
    • Sports
    • World Cup
    • World Champs
    • Olympics
  • All Woman
  • Career & Education
  • Environment
  • Webinars
  • More
    • Football
    • Elections
    • Letters
    • Advertorial
    • Columns
    • Editorial
    • Supplements
  • Epaper
  • Classifieds
  • Design Week
Economy tanking, Cuba launches some long-delayed reforms
Customers enter through the back of Mercabal wholesale market, to load their merchandise in Havana, Cuba, Thursday, July 30, 2020.
COVID-19, Latest News, News
August 6, 2020

Economy tanking, Cuba launches some long-delayed reforms

HAVANA, Cuba (AP) — With its airports closed to commercial flights and its economy tanking, Cuba has launched the first in a series of long-promised reforms meant to bolster the country’s struggling private sector.

The island’s thousands of restaurants, bed-and-breakfasts, auto mechanics and dozens of other types of private businesses have operated for years without the ability to import, export or buy supplies in wholesale markets. While the communist government began allowing widespread private enterprise a decade ago, it maintained a state monopoly on imports, exports and wholesale transactions.

As a result, the country’s roughly 613,000 private business owners have been forced to compete for scarce goods in Cuba’s understocked retail outlets or buy on the black market. That has limited the private sector’s growth and made entrepreneurs a constant target of criminal investigation.

With the essential tourism business cut off by the novel coronavirus and the government running desperately low on hard currency, the government last month announced that it would allow private restaurants to buy wholesale for the first time. Ministers also announced that private businesspeople could sign contracts to import and export goods through dozens of state-run companies with import/export licenses.

Within four days of its opening to private business, 213 restaurant owners signed up to buy beer, flour, yeast, shrimp, sugar, rum and cooking oil at a 20 percent discount off retail at the Mercabal wholesale market in Havana, state media reported. A similar market has been opened to entrepreneurs in the eastern city of Holguin, according to state media.

Government officials have not said how many import/export contracts have been signed.

Private business owners said they welcomed their new wholesale access, although some said they were skeptical given Cuba’s long history of failing to follow through on economic reforms, or of periodically launching crackdowns on what it considers illicit or excessive private sector wealth.

“It’s a really good initiative,” said Tony Baró, the 51-year-old owner of a restaurant in Havana’s Vedado neighbourhood who was signing up to purchase in the market last week. “It’s not meeting all the expectations yet, but we hope that it will in the future.”

Along with limited wholesale, importing and exporting, the government has promised to allow the formation of small and mid-sized private business. Until now, the only legal category of private work has been a license for self-employed people, even though in many cases the self-employed are in fact owners of flourishing businesses with numerous employees.

The government also said it would allow extensive business between private and state-run enterprises, allowing private business to buy and sell from state companies.

Many such measures have been discussed or approved for years, without government action, or withered over time.

“With these measures endure? Is it a temporary patch that they’ll undo later, as they’ve done before?” said Camilo Condis, a 34-year-old self-employed businessman.

The Cuban government has been the target of years of increased sanctions by the Trump administration, although the shutdown of commercial flights under coronavirus has had a far more dramatic effect in less than five months. The government has managed to maintain a low rate of infection but the economy is estimated to drop 8% this year after years of near-zero growth.

”This is positive,” 59-year-old cafeteria owner Elba Zaldívar said outside the Havana wholesale market. ”I think there are will be more products in the future… In the end, it’s the Cuban people who win.”

{"website":"website"}{"jamaica-observer":"Jamaica Observer"}
img img
0 Comments · Make a comment

ALSO ON JAMAICA OBSERVER

Latest News, News
Market Bag: Food prices steady, egg supplies improving
January 23, 2026
ST CATHERINE, Jamaica — There is limited movement in food prices at the Linstead market this week as the cost of produce held largely steady compared ...
{"jamaica-observer":"Jamaica Observer"}
48-hour curfew imposed in sections of the St Mary extended
Latest News, News
48-hour curfew imposed in sections of the St Mary extended
January 23, 2026
KINGSTON, Jamaica — The curfew  imposed in sections of the St Mary policing division has been  extended for another 48 hours. The extension took effec...
{"jamaica-observer":"Jamaica Observer"}
Justice minister calls on JPs to play a more active role in land administration
Latest News, News
Justice minister calls on JPs to play a more active role in land administration
January 23, 2026
KINGSTON, Jamaica — Minister of Justice and Constitutional Affairs, Delroy Chuck, is encouraging justices of the peace (JPs) to play a strengthened ro...
{"jamaica-observer":"Jamaica Observer"}
Triple jumper Foreman sets world lead in South Carolina
Latest News, Sports
Triple jumper Foreman sets world lead in South Carolina
BY PAUL A REID Observer writer reidp@jamaicaobserver.com 
January 23, 2026
KINGSTON, Jamaica — Jamaica’s Shantae Foreman achieved a world and the National Collegiate Athletic Association (NCAA) leading 14.17m as she set a Cle...
{"jamaica-observer":"Jamaica Observer"}
Ardenne Prep/Extension stands firm on fee hike; parents accuse institution of ‘bullyism’
Latest News, News
Ardenne Prep/Extension stands firm on fee hike; parents accuse institution of ‘bullyism’
Vanassa McKenzie, Observer Online reporter, mckenziev@jamaicaobserver.com 
January 23, 2026
The board of Ardenne Preparatory and Extension High isn’t budging on its decision to increase fees for both schools effective this term, despite paren...
{"jamaica-observer":"Jamaica Observer"}
Safe Passage releases eight of nine marlin in 62nd Port Antonio tournament
Latest News, Sports
Safe Passage releases eight of nine marlin in 62nd Port Antonio tournament
January 23, 2026
PORTLAND, Jamaica — Safe Passage released five marlin on the second day of the 62nd Port Antonio International Blue Marlin Tournament at Ole Marina, b...
{"jamaica-observer":"Jamaica Observer"}
48-hour curfew extended in sections of Kingston East
Latest News, News
48-hour curfew extended in sections of Kingston East
January 23, 2026
KINGSTON, Jamaica — A 48-hour curfew has been extended in sections of the Kingston Eastern policing division. The curfew will continue from 6:00 pm on...
{"jamaica-observer":"Jamaica Observer"}
WATCH: Five-year-old injured in Greenvale, Manchester accident
Latest News, News
WATCH: Five-year-old injured in Greenvale, Manchester accident
January 23, 2026
MANCHESTER, Jamaica — A five-year-old girl has been admitted to hospital in serious condition after she was hit by a car in her community, Greenvale. ...
{"jamaica-observer":"Jamaica Observer"}
❮ ❯

Polls

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy

Recent Posts

Archives

Facebook
Twitter
Instagram
Tweets

Polls

Recent Posts

Archives

Logo Jamaica Observer
Breaking news from the premier Jamaican newspaper, the Jamaica Observer. Follow Jamaican news online for free and stay informed on what's happening in the Caribbean
Featured Tags
  • Editorial
  • Columns
  • Health
  • Auto
  • Business
  • Letters
  • Page2
  • Football
Categories
  • Business
  • Politics
  • Entertainment
  • Page2
  • Business
  • Politics
  • Entertainment
  • Page2
Ads
img
Jamaica Observer, © All Rights Reserved
  • Home
  • Contact Us
  • RSS Feeds
  • Feedback
  • Privacy Policy
  • Editorial Code of Conduct