The news spread like wildfire across Cuba on Saturday, February 6. The list of prohibited activities in the self-employed sector had finally been approved; a measure that was long-awaited not only because it was announced back in July 2020, but also because it means over 2,000 private sector occupations can now be legally exercised.
While before there was a list of 127 jobs “you can do,” now “what you are not allowed to do” is clear, be it totally or partially, in a reduced group of 124 activities. The reform is intended to facilitate the development of self-employment by eliminating restrictions on productive forces and permitting private domestic businesses with a broader profile.
However, sectors such as the press, health and defense will remain off-limits to the private sector, as they are considered strategic by the government; as well as activities expressly prohibited by law such as child labor, prostitution or hunting and fishing of prohibited or endangered species.
Minister of Economy, Alejandro Gil, stated on his Twitter account on February 6 that the governmental approval of the enhancement and expansion of self-employment constitutes an “important step for the growth of employment, in tune with the country’s monetary restructuring.” In this regard, Cuban economist, Ricardo Torres, told AFP that “it was necessary to accompany a step such as the monetary restructuring with measures to make job creation more flexible,” noting that the private sector can be “an important source of employment.”
Although the list will not be made public until all the corresponding legal norms are in force, more details on this process are already known, among which are the following:
- It is not only a matter of swapping permitted activities for prohibited activities, but the move is much broader and comprehensive, and includes the tax system and flexibility of the administrative mechanism for issuing licenses for self-employment, focused more towards projects than individual activities.
- The current total of permitted activities is maintained, and the restriction on exercising the activity of computer programmer is eliminated.
- The scope of the activity is determined on the basis of the work project presented by the interested party, which allows for the creation of service packages depending on the compatibility between activities and the creativity of the worker.
- The entire process will be carried out through a One-Stop Shop, in charge of providing information and advice; processing applications, suspensions, cancellations and permits; and making inquiries with the corresponding entities as appointed by the governing bodies in each territory, as a prior step to the approval of projects.
- Taxation will not increase, and recognition of the minimum non-taxable income is now applicable to all self-employed workers.
In view of this new possibility, “the private sector could function not only as a source of employment but also as a factor for the recovery of segments of the national economy that are in a deplorable state,” economist Pedro Monreal notes. He believes that this expansion of self-employment activities would be more significant “if it were a step in the formation of private SMEs, which would allow them to undertake the regeneration of depressed industries.”
Oniel Díaz, head of business consulting firm, AUGE, clearly defines the future of a sector, which even in the worst conditions has been able to advance and develop, noting: “The new scenario, where the possibilities have multiplied exponentially, opens a path in which there will be no impediment, so we can play an increasingly important role in the national economy along with the rest of its actors.” It is clear that private initiative, based on the necessary legal framework, is claiming a decisive role as a driver of growth and welfare for all.
