Construction trades people to be allowed to form co-ops

Cuba Standard March 27,2013

The government will be allowing the creation of cooperatives for building maintenance and renovation, Cuba’s economic reform czar Marino Murillo announced in a speech  about domestic trade, according to official daily Granma.

In addition, the Domestic Trade Ministry will expand sales of much-needed construction supplies and create more wholesale channels, Vice President Murillo said March 27, without providing any details.

While the government announced last year it will support the creation of urban cooperatives, a body of regulations for the new cooperatives has yet to be published.

In order to be successful, the new cooperatives must be based on the free will and convenience of their members, function independently, be efficient, and offer quality products and services, said University of Havana economist Jesús Cruz at a workshop in the Havana headquarters of Cuba’s official union March 26.

Murillo’s announcement seems to open a window of opportunity for carpenters, electricians, plumbers and painters to get into business for themselves, albeit collectively. While the government allowed private businesses to engage in 178 activities two years ago, some construction trades are not included.

Demand for construction services is high, as Cuba is facing the deep and growing challenge of a neglected and crumbling housing stock. But so are obstacles. In 2012, construction supply sales through government-owned outlets — the only ones that offer the much-needed goods — were more than 20 percent below planned targets, Murillo said.

Last week, the government announced the creation of a wholesale company on the Isle of Youth, an apparent pilot project in the effort to channel affordable supplies to Cuba’s fast-growing private sector.

In Need of Repairs: One hopes that cooperative enterprise can help.

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