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Council of Ministers meets
• Policies to continue the updating
Cuba’s economic model approved
Leticia Martínez
Hernández & Yaima Puig Meneses
October 24, President Raúl Castro Ruz presided a
Council of Ministers meeting which approved several
new policies and measures to continue the updating
of the country’s economic model.
Among the issues analyzed were a portfolio of
projects being presented to potential foreign
investors; population aging; the functioning and
authority of enterprise branch units; outstanding
accounts receivable and payable; the state property
registry; as well as Santiago de Cuba’s urban zoning
plan.
PORTFOLIO OF FOREIGN INVESTMENT OPTIONS
Marino Murillo Jorge, head of the permanent
commission on policy development and implementation
and a Council vice president, presented the
portfolio, describing the document as “essential to
the process of attracting foreign capital,” adding
that its development was a key milestone on the
timeline established for implementation of the
country’s new foreign investment law.
He
reported that the upcoming Havana International
Trade Fair (FIHAV 2014) will have foreign investment
as it central theme, with a focus on clarifying the
new policy and regulatory framework.
The
portfolio approved during the meeting contains 246
projects the country would like to undertake with
the support of foreign investment, amounting to some
8.7 billion dollars. Decisive sectors of the economy
are represented, including food processing,
construction, the pharmaceutical and biotechnology
industries and renewable energy, among others,
according to Murillo, who added, “Projects are
located in all provinces, and the Isle of Youth
special municipality.”
He
said the portfolio is diverse and broad, including
projects for which feasibility studies have been
conducted, as well as guidelines for negotiations,
which should expedite the process of establishing
agreements.
Rodrigo Malmierca Díaz, minister of Foreign Trade
and Investment, emphasized the importance of
continuing to develop the portfolio, and add new
projects
DEMOGRAPHIC TRENDS REQUIRE ATTENTION
Another topic addressed during the meeting was the
issue of demographic trends which are creating
challenges, impacting the country’s social, economic
and family life.
Murillo Jorge, explained, “In the coming decades,
Cuba will experience a decrease in population
growth, with continuous aging, a lower birth rate
and an increase in deaths. If these trends are not
reversed, between 2025 and 2027, more people will
die than are born, with a resultant reduction in the
total population in all age groups, with the
exception of that comprising those 60 years of age
and over.”
He
recalled that among the factors which contribute to
population aging are “low birth rates, a greater
life expectancy, and emigration.”
He
emphasized that most decisive is low birth rate, a
result of multiple factors including the high level
of education attained by women and their extensive
participation in the workforce; housing limitations;
the high cost of providing for children; the lack of
support services available to families; and the
challenge of meeting the needs of aging relatives.
Murillo clarified that the policies adopted will not
have an immediate impact, but should do so in the
medium and long term, saying, “Their principal
objectives are to stimulate the birth rate, address
the needs of a growing elderly population, as well
as promoting full, efficient employment of those
able to work.” He additionally announced the
implementation of financial and pricing policies
which should support parenting and better meet the
needs of older adults.
INDUSTRIAL PROPERTY
Next, Leonardo Andollo Valdés, second in command on
the policy implementation commission, presented a
new Comprehensive Industrial Property Policy, which
was approved by the Council of Ministers.
He
explained that it is based on no.228 of the Economic
and Social Policy Guidelines approved in 2011 at the
6th Congress of the Communist Party of Cuba, which
calls for strengthening the country’s capacity to
explore prospects and safeguard Cuban-developed
technology, along with the country’s industrial
property protection policy, both within the country
and in external markets.
With
the continuing updating of Cuba’s economic model,
Andollo said, industrial property acquires new
dimensions and greater importance in expanding
exports; the replacement of imports with domestic
products management tool; procuring investment,
especially foreign investment; and the development
of state enterprises and other forms of economic
management.
He
indicated that a diagnostic studies conducted
identified several problems which will be addressed,
and concluded, “With the implementation of policy
proposed, we will be in a better position to promote
the country’s sustainable development.”
IMPROVEMENTS AT MINISTRY OF FINANCES AND PRICES
Andollo also reported on proposed changes at the
Ministry of Finances and Prices, specifically to its
Grupo Empresarial Caudal S.A., which provides
professional services to the financial sector,
especially insurance policies.
Improvements are directed toward resolving
difficulties and ensuring that a variety of quality
services are provided, including “insurance, asset
appraisals, audits, feasibility studies, advisement
fundamentally in economic and management activities,
with the goal of supporting the development of the
state enterprise sector and non-state forms of
management,” Andollo said, adding that the provision
of these services will also facilitate the
development of foreign investment in the country.
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