Cuba approves creation of private co-ops in non-farm sectors
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E-mail Xinhua, December 12, 2012
Cuba approved on Tuesday the creation of private cooperatives in non-agricultural sectors in an effort to liberalize the economy, official media reported.
With the approval, more than 200 private co-ops are expected to be established throughout the country in sectors such as transportation, raw material recycling, fishing, services, and production of construction materials, the Granma paper said.
"They will not be administratively subordinate to any state entity, although they should conform to the guidelines established by the governing bodies that oversee their activities," said the paper.
The government made the decision based on the success of private agricultural co-ops, it said.
Under the rules, three or more Cubans can create a cooperative, and they can do business with private citizens, other cooperatives or state companies.
Prices of the products and services of the new co-ops would be determined by the markets, except those regulated by the state.
The government would offer tax benefits to these co-ops to stimulate the creation of new co-ops, said Granma.
This is the first time in decades that Cuba allows worker-run non-agricultural cooperatives. Agricultural co-ops have been allowed since the 1990s.
The move was also the latest reform under President Raul Castro, who wanted to reduce the number of Cubans that rely on the cash-strapped government for their wages.
Currently, private sectors employ about 400,000 workers, and the authorities expect the figure to increase to 600,000 by the end of 2013. Endi
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