As Argentina tightens its grip, Cuba liberalizes

Title: "Freedom comes slowly to Cuba"..., and then:

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So much for freedom.
 
Sorry, the article opened for me a few hours not, not now. I am not an FT subscriber. It was about liberalization of economic policy in Cuba and government efforts to encourage entrepreneurship. Cuban-Americans are now investing in Cuba through their relatives in Cuba who are opening businesses. Raul Castro is moving away from strict state control. It's the opposite of what is happening in Argentina where the state is imposing more and more controls and restrictions. If Cuba is a model admired by Argentina and Venezuela, it is an increasingly more capitalist model.
 
Freedom of private enterprise does not equal capitalism. The latter is the system were the owner of the means of production (the capitalist) is the owner also of the benefits produced by workers (not him) using these means. A cooperative company (or a gigantic corporation, like Mondragon) is not a capitalist company.

Competition and free market can work in a non-capitalist environment.
 
With all my respect, I think that the comparision is naive.

Cuba has no busisness at all and now they can start opening them.

Argentina, instead, is copying the US. How? Law enforcing. I know, I know, this is Argentina, but something that the K are doing very well is to rebuilt the law enforcing structure that Menem destroyed.

The second thing they do well is to rule (in oposition to De la Rua who didn t rule at all). There is a huge crisis in the world and here we have a problem, there is a lot of money from the harvest that Argentines and foreign companys sent abroad, so there is an artificial lack of dollars in the local market. In June the money from the new harvest should come and some restrictions should moderate.

On the other hand, the K model is all about to develope the local market and industry. Why should somebody to produce something here when he can do it in China with slave labor force? The answer is simple, because the government doesn t allow them to import those items.

Even there is a common myth that the US has an open market related to imports, this is a missunderstanding. The government decides what do they allow to import and what items are restricted or forbidden. Try to export chicken or beef out of the Hilton quote. There are many items that are forbidden because they are produced in the US. That s what is called sovereignty.

Importing restictions in the UE are common too.

Regards
 
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