Cuba approves new laws to reform state companies

HAVANA, Dec. 13 (Xinhua) -- Cuba approved a new set of laws to promote an organized business system within state companies as part of its efforts to update the island's economic model, local media wrote on Wednesday.

A report published by official newspaper, Granma, detailed the new provisions which aim to provide more autonomy and economic independence to state conglomerates and small companies in order to eradicate bureaucracy and promote greater production.

The laws also aim to ensure the nation's state business system is constituted by adequate, well-organized and efficient entities.

These regulations are part of a gradual transformation process in the Cuban state business system which began in 2011 after the VI Congress of the Communist Party of Cuba (PCC).

Five years later, the VII Congress defined the need to continue advancing in business reforms, gradually granting entities new powers and authority.

According to these new laws, the country's business system is integrated by top business management organizations (OSDE), companies and base units.

"All this (is done) in order to improve its management and control, but without state intervention and in strict respect for its autonomy," added the text.

This gradual decentralization process increases the responsibility of state company officials in decisions about their companies.

Havana has reiterated that state enterprises and companies will continue to be the base of the national socialist economy but have to become more efficient.

Nonetheless, an emerging private sector with over half a million workers has emerged since 2011, providing goods and services in over 200 sectors. Enditem