PRIVATE SELF-EMPLOYMENT UNDER REFORM SOCIALISM IN CUBA

Mario A. Gonzalez-Corzo and Orlando Justo, The City University of New York

The Journal of Private Enterprise 32(2), 2017, 45–82

Complete Article Here: 2017_Private Self-Employment under reform Socialism in Cuba Journal_of_Private_Enterprise, 32, 2.

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Abstract

The expansion of private self-employment is one of the main economic measures implemented by the Cuban government since 2010 to update its socialist economy under a unique brand of “reform socialism.” State policies (a “push factor”), as well as economic incentives and the desire for greater economic independence (“pull factors”) have contributed to the remarkable growth of self-employment in Cuba since 2010. While employment in the state sector has declined significantly (13 percent) since 2010, self-employment has grown by more than 187 percent, and its share of total employment has increased from 3 percent to close to 9 percent. Despite these advances, Cuba’s self-employed workers face significant obstacles that limit their growth and potential economic contributions. In addition to addressing these challenges and obstacles, ensuring the success of Cuba’s self-employment reforms requires re-conceptualizing the state’s attitude toward self-employed workers and their potential contributions to economic development and growth.

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