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The following article was published in our article directory on December 27, 2010.
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Article Category: Business
Author Name: Amanda xzh
Cuba in 2011 will be a tough year, but the country will be "Down to Earth" for economic reform, and then into a different country.
Passed in 2010, the Cuban revolution to a revolution in the past year say goodbye. "
While in 2011, "is certainly not the cozy year", the problem is not "using magic" to solve, but the "future state" will be "hopeful" because Cuba will be "down to earth," the face of difficulties.
In April next year by the total share reform plan approved by Congress, the "Compass" under the guidance of Cuban leader Raul Castro will give the plan inherited from the Soviet economic model.
The plan includes opening up to foreign investment in the next few years, cut more than 1 million state sector jobs, encourage the development of small and medium private enterprises to absorb laid-off workers of state-owned sector, eliminate some subsidies, corporate self-management and taxation.
Will face significant challenges in 2011. Future state will become a no egalitarian socialist state. Next year will also repeal the ban on unreasonable to avoid contributing to violence, corruption and impunity.
Cuba's government lifted the dollar remittances of the tax remitted to Cuba after the Cuban American remittances received after the exchange will be necessary to pay 10% of the cost. The original policy was to deal with the U.S. dollar exchange business to have the sanctions of international banks, 10% of the cost of the island led to an exchange transaction costs. New rules will make the Cuban government an annual loss of about 1 million, but in return is the annual direct Western Union from the United States exported nearly all remittances 1O million. Washington will also benefit from the measure, it remitted to Cuba against the U.S. dollar have greater control.
New rules started from Monday. Western Union in Cuba, according to the company's employees that the new regulations greatly increased since the amount of remittances.
For lack of foreign exchange reserves and is facing severe financial situation of the Cuban, the new regulations is of great significance. Over the past year led to the economic difficulties encountered by the Cuban government made the island of Cuba to freeze some of the investment decisions of entrepreneurs bank account. Compared with other countries, Cuba, the amount of remittances received annually is not large, but on the domestic economy play a crucial role. It is estimated that 50% of Cubans receive dollars every year remittances. George W. Bush administration in the United States, remittances to Cuba have been subjected to strict restrictions, but with the United States to re-open travel to Cuba and remittances in the Obama administration policies to encourage remittances under the impetus of Cuba received a substantial increase in dollar remittances.
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