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Manuel Marrero Cruz Denies Crackdown on Private Businesses: "We Are Not Here to Shut Them Down"

Wednesday, July 17, 2024 by Michael Hernandez

Manuel Marrero Cruz, the Prime Minister of Cuba, denied any crackdown on private businesses and urged non-state actors to focus less on their profits and more on contributing to society.

Addressing members of the National Assembly, Marrero Cruz emphasized that the regime has no plans to eliminate private businesses: "We are not here to shut them down," he stated, according to a segment broadcast on the state-run Canal Caribe.

The former Tourism Minister explained, "What we want to ask everyone who opens a business is to contribute to society, which is part of this people." He further urged aspiring entrepreneurs to offer services at non-exploitative prices, stressing that one should not think solely about personal income but also about sharing.

Similar sentiments were echoed by the ruler Miguel Díaz-Canel, who this week announced a "reorganization" plan for both the private and state sectors due to the "irresponsible manner" in which some institutions operate. Díaz-Canel insisted that this is not a witch hunt against any specific management or ownership form; however, the official discourse has been targeting Micro, Small, and Medium Enterprises (Mipyme) for months, especially those importing finished products or failing to comply with price caps.

Indeed, the Council of Ministers approved six decree laws that will be presented to the Council of State, updating legal provisions for Mipymes, self-employed workers, and private sector companies.

"Contrary to what the enemies of the Revolution say, this is not a crusade against Mipymes or non-state management forms. These are policies approved at the Communist Party Congress," Marrero Cruz said regarding the new decrees.

However, the reality is starkly different. The regime has implemented price caps on six high-demand basic products through a resolution published in the Official Gazette of Cuba, imposing fines of up to 8,000 pesos for those who don't comply.

To put things in perspective, the Ministry of Finance and Prices issued 4,332 fines to private businesses for price violations between July 12 and 13, amounting to over 13 million pesos, according to the official newspaper Granma.

Authorities and inspectors from the said entity conducted 11,891 checks to ensure compliance with retail prices. In this vein, Vladimir Regueiro Ale, the head of the sector, stated that the inspections covered the entire country: The violation detection rate was 41.7%, totaling 4,954 violations, although 4,332 fines were imposed, amounting to over 13 million pesos.

In addition to the fines, 354 forced sales were carried out—187 in Havana—53 temporary suspensions of establishment operation authorizations, and 21 confiscations, mostly targeting those operating illegally, according to the mentioned media outlet.

FAQs about Cuban Government Policies on Private Businesses

To provide more clarity on the Cuban government's stance and actions regarding private businesses, here are some frequently asked questions and their answers:

Is the Cuban government shutting down private businesses?

No, according to Prime Minister Manuel Marrero Cruz, the government is not planning to shut down private businesses. Instead, they are urging these businesses to contribute more to society.

What are the new decrees approved by the Council of Ministers?

The Council of Ministers has approved six decree laws that update legal provisions for Micro, Small, and Medium Enterprises (Mipymes), self-employed workers, and private sector companies.

What penalties are being imposed for price violations?

The Ministry of Finance and Prices imposed 4,332 fines totaling over 13 million pesos for private businesses that violated price caps between July 12 and 13. Additional penalties include forced sales, temporary suspensions of operation authorizations, and confiscations.

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