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The Economy of Cuba

Economic Reforms: Self-Employment and Private Enterprise

Since 2010, Cuba has allowed self-employment, and in 2021 it legalised small and medium private businesses.

Cautious opening.

2010 changes

Hundreds of thousands were allowed to work for themselves as taxi drivers, restaurant owners and guesthouse hosts.

Private firms

In 2021, small and medium enterprises were legalised.

Limits

Bureaucracy, lack of wholesale markets and restrictions on imports constrain them.

Impact

Private firms now supply some goods and services, but at high prices.

A paladar

A family runs a small restaurant in a converted home.

Assuming private business means a full market economy

The state still dominates.

Key takeaways
  • Self-employment was allowed from 2010.
  • SMEs were legalised in 2021.
  • Constraints persist.
  • The private sector is growing.
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