Sunday, August 28, 2005

 

Government owned street meat

The Cuban government is now firmly entrenched in the state sandwich business. After more than a decade of privately run vendors peddling sandwiches, pizzas, milkshakes and other junk food outside busy public spots in Havana, it is all over. In late June, Fidel Castro's Communist government closed down all snack shacks and opened a series of state run service outlets.

As the June 25, 2003 Economist points out, this is the latest step in a determined campaign by Cuba's president to roll back the small economic reforms that were allowed in the early 1990's - at the urging of the Soviet Union. A lot has changed in the past decade. Castro has a new alliance with Venezuela where the oil is cheap and China were the loans are cheaper.

Cubans are (were) learning what even the Chinese have come to realize - private ownership is far better than state ownership at providing goods and most services. I hesitate to say that all state ownership is bad since public utilities still should remain in the hands of the public. It is only a matter of time before Communism becomes a thing of the past, however, in the case of Cuba it appears they will need to take a step or two back before leaping forward.

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