Friday, April 08, 2011

U.S. group wants to help small enterprises in Cuba,

Posted on Thursday, 04.07.11
Cuban economy

U.S. group wants to help small enterprises in Cuba

Group: Helping entrepreneurs will help Cubans take control of their own
lives
By Juan O. Tamayo
jtamayo@elnuevoherald.com

Cuba's decision to allow more private economic activity is an
opportunity for the U.S. government and others to support the growth of
small and micro enterprises on the island, according to a report made
public Thursday.

"An orderly, market-oriented economic reform process is decidedly in the
best interests of Cuba, the United States and the region,'' said the
48-page report by the Cuba Study Group (CSG), led by centrist Miami
businessman Carlos Saladrigas.

The study argued that since U.S. sanctions are designed to deny
resources to the Cuban government, they should be eased to permit
increased support for the island's growing number of "self employed" —
like plumbers, barbers and wedding photographers.

But it added that it's primarily up to the Raul Castro government to
promote private enterprise and noted that the congress of the ruling
Communist Party that starts April 16 should do so by easing by easing
laws and regulations on the self-employed.

Facing an insolvent economy, Castro has announced he will to slash
public spending by laying off more than 1 million state workers and
opening the communist system's doors to more self-employment and other
forms of private economic activities.

More than 170,000 Cubans have received new "self employed" permits since
Castro's announcement, but economists say the new small and micro
businesses will need assistance if they are to survive.

The CSG report, unveiled during a telephone news conference from
Washington, recommended a series of steps to help the island's new
entrepreneurs and "empower Cubans to take control of their own lives."

The Cuban government does not have a lot of money to lend to the new
enterprises and lacks experience in micro-lending, the report notes, so
a $50 million fund for rotating micro-loans of up to $1,500 would help
finance the new enterprises.

Saladrigas said banks in New York and Europe are interested in the idea,
and Cuba's Catholic Church could play a role in the loan program.

A Web page could link Cuban entrepreneurs with U.S. experts in small
businesses and even Americans willing to make small loans, the report
added. Non-government organizations could partner with Cuban
universities to identify prospective businessmen and train them in basic
skills such as accounting.

The U.S. government could help by easing laws and regulations that
restrict U.S. financial transactions with Cuba as well as exports and
imports, and adopt policies that favor the success of the island's
private sector, according to the report.

The CSG noted that although the Obama administration has made it easier
to send remittances to Cuba, it could take further steps, such as
allowing U.S. residents to invest as partners in businesses in Cuba.

A CSG report in 2006 proposed establishing a $10 million fund for
micro-loans to small businesses in Cuba, and the next year proposed a
Cuba Enterprise Fund designed to help small- and medium-size businesses
on the island through equity investments, loans, technical assistance
and training.

Havana did not publicly reply to either proposal.

http://www.miamiherald.com/2011/04/07/2156058/cuban-business-group-calls-for.html

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