Council of Ministers of Cuba approves economic measures related to model update

The President of the Councils of State and Ministers, Army General Raúl Castro Ruz, chaired a meeting of the Council of Ministers in which several measures related to the updating of the Cuban economic model were adopted.

  Granma newspaper reports today that the topics discussed were the portfolio of opportunities for foreign investment; population aging; the functions and powers of the business units of base; accounts receivable and payable; state registration of property; and the General Urban Management Plan of the city of Santiago de Cuba.

  PORFOLIO OF OPPORTUNITIES FOR FOREIGN INVESTMENT

The vice president of the Council of Ministers Marino Murillo Jorge, introduced Portfolio Opportunities for Foreign Investment, which he explained forming "is an essential aspect in the process of attracting foreign capital" and its update is part of the implementation timetable of policy for foreign investment.

  As reported, specifically the International Fair of Havana will be held next month central theme will encourage foreign investment to promote the new policy and regulatory framework.

  The Portfolio adopted at this meeting, has developed 246 projects with foreign capital in the amount of 8710 million, and covers key areas such as food, construction, pharmaceutical and biotechnology industries, renewable energy, among others. "The project is located in all provinces and the special municipality of Isla de la Juventud," he said.

  He considered that the submitted portfolio is diverse and extensive, and the incorporation therein of projects with feasibility studies and negotiating guidelines will accelerate the realization of business.

  In this regard, Rodrigo Malmierca, Minister of Foreign Trade and Foreign Investment, reflected on the importance of continuity of this portfolio and continue enriching it with new projects.

  CARE POPULATION DYNAMICS

Another issue discussed at the meeting was related to the population dynamics of the country, one of the biggest challenges facing the nation for its impact on social, economic and family life.

  Jorge Murillo, head of the Permanent Commission for Implementation and Development, explained that "in the decades Cuba presented a tendency to decrease with continued population aging population, a decrease of births and deaths increased. This implies which, if not reversed these trends, at around 2025 to 2027, more people die than are born, with decreases in the total population and in all age groups except 60 years and more. "

  He outlined that among the aspects that impact the aging population are "low levels of fertility, increased life expectancy and the external migration balance."

  He emphasized that the determining factor is the low fertility, whose causes are multiple, including noted high levels of education, employment and social inclusion of women, limited access to housing, the high cost of childcare the lack of support services to families and seniors living with that also require attention.

  On the one passed in this session of the Cabinet policy, said he did not yield results immediately, but in the medium and long term. "Its main objectives are to encourage fertility, meeting the needs of the growing population of senior citizens, and promote efficient use and the majority of able-bodied people." Furthermore, it was revealed that apply tax and price policies that favor the birth and care of the elderly.

  INDUSTRIAL PROPERTY

Then Andollo Leonardo Valdes, deputy chief of the Standing Commission for Implementation and Development, presented the Comprehensive Policy of Industrial Property, which was approved by the Cabinet.

  He explained that it is based primarily on the implementation of Guideline 228 of the Economic and Social Policy of the Party and the Revolution, in which the need to "strengthen the capacity of exploration and technological surveillance and policy of protection of property is expressed industry in Cuba and in major international markets. "

  With the updating of the Cuban economic model he commented industrial property acquires new dimensions and greater importance as a management tool to export, import substitution, -particularly the foreign- investment and scientific and technological development for both state organizations to non-state forms of management.

  He noted that the diagnosis made several problems were identified, for which a set of measures to improve related to this matter were proposed. "With the implementation of the proposed policy will be better able to promote sustainable economic development," he said.

  BUSINESS IMPROVEMENT SYSTEM IN THE MINISTRY OF FINANCE AND PRICES

Andollo Valdes also discussed the proposals for improvement of enterprise system known as Em entrepre- Flow Group SA, dedicated to professionals in the financial services sector, particularly insurance.

  The development proposed is aimed at solving the problems that are presented today and allow for a organization stronger, "who provide insurance services, appraisals of assets, audits, feasibility studies and consultancy, mainly in economic activity and management, with the function of supporting the development of the business sector and non-state forms of management. "These capabilities are also designed to facilitate the development of foreign investment in the country.

  FUNCTIONS AND POWERS OF BUSINESS UNITS BASE

The Cabinet also approved new proposals related to the functions and powers of the Business Units Base (UEB), underpinned by the gradual rearrangement takes place in the bodies of the central state administration, which is creating conditions to separate government functions from business.

  During his presentation, said Jorge Murillo "in Cuban state enterprise system is recognized as the OSDE business figures, businesses and UEB. Thus, the concept that even though they have different definitions and functions, including ratifying there is a close working relationship. "

  Hence the members of the Cabinet approved "extend to the entire business system implementing the provisions of Decree 281, on concepts, functions and powers referred to OSDE companies and UEB, except with regard to business improvement process, incorporating the elements of the repealed legal standards necessary to maintain, as well as new powers have been granted to the enterprise system as a result of the implementation of the Guidelines. "

  In short, he said, BSU shall have the powers that correspond to their level and allow you to continue developing stably productions and services.

  FINANCIAL MANAGEMENT FOR ACTIVITY CPA non-sugar

The Minister of Economy and Planning corresponded also submit the proposed financial treatment for co- Coope Farming (CPA) engaged in non-sugar activities. He explained the goal is "to apply a similar approved the Basic Units of Cooperative Production (UBPCs), to solve your financial situation and place them on the same level financially treatment."

  Over 380 CPA faced economic and financial difficulties, with appreciable amounts of accumulated losses and debts due to the banks, the state budget and the business system, limiting its sustainability.

  Therefore, in order to keep them running and bring stability to continue its production activities efficiently, "a financial treatment to have the monetary resources needed as well as a set of additional measures to enable it to pay its debts was approved liquidate the accumulated losses and achieve adequate capitalization. "

  "With the implementation of this financial processing ensure productive projects planned increase in their programs of development until 2018," he said Jorge Murillo.

  ACCOUNTS RECEIVABLE AND PAYABLE

Then Lina Pedraza Rodriguez, Minister of Finance and Prices, presented a report on the status of accounts payable and receivable overdue, task that advances are recorded in general.

  As he said "the behavior of the economy during the first half of 2014 negatively influenced the downward trend that had emerged in the course of 2013".

  He explained that the main factors that have influenced these results is the lack of liquidity of companies, especially those which received over 160 adverse economic balances. He also stressed that "it is high concentration of debts due from or subordinate entities served by the same body, averaging 65%."

  As favorable factor highlighted the fact that "it has been able to significantly reduce the difference between the total accounts receivable and payable in the country." It is now the Ministry of Finance and Prices assure 'ensure that in the future these numbers will not increase again. They have also declined defaults producers.

  Finally, Pedraza Rodriguez said that "in the remainder of the year is expected a favorable change in the behavior of the accounts payable and receivable past due, which is supported by the adoption of a set of economic measures in the period, allowing achieve a level of stabilization and the performance of outstanding contracts and agreements. "

  PROPERTY REGISTRATION PLAN

Maria Esther Reus González, Minister of Justice, presented the report on the implementation of the plan of state property registration in the period January-August 2014 issue that in recent years has been recurrent in these meetings in order to evaluate their behavior .

  Generally mentioned that the comprehensive plan enrollment -in which both the Local Organs of People's Power and the agencies of the Central Government (OACE) and national-entities is 82.8% included.

  The Minister also warned of the importance of achieving these final months of balance in the presentation of records at the Land Registry as the limitations of personnel and equipment there are no permitted to respond to the disproportionate demand this can cause.

  Finally, he assessed that "beyond the numbers could be noted at the end of 2014, it is important to note that given the magnitude of the registered numbers, the effort to date has preserved and legally protect government property in a short period . This is taxed directly benefits the system and issues such as foreign investment, the location of vacant lots for housing construction and leasing of premises to non-state forms, among others. "

  FINANCIAL ALLOCATIONS TRADE OPERATIONS

The main economic damages caused by irregularities in the country's foreign trade during the first half of 2014 was also a topic of discussion at the meeting. According to Rodrigo Malmierca, head of Foreign Trade and Foreign Investment, the subject responds to the fulfillment of an agreement of the Council of Ministers adopted in order to maintain strict control over these facts in all organisms.

  "While we can not claim that all the irregularities that occur are detected, it has increased the control and care by the companies and organizations involved," she added.

  About said the main problems are linked to poor selection of suppliers; lengthy procurement processes; Improper handling of goods in the market; problems with transportation and planning; system failures of quality assurance; and technological indiscipline. "There are other affectations, more complex to detect, which occur due to irregularities in contracting and purchasing decision," he said Malmierca.

  In this regard, he said that "they have taken steps to address these deficiencies, primarily aimed at increasing staff training linked to the activity of foreign trade, improve the process of international recruitment;. And solve quality problems and logistical This has possible to reduce the costs incurred by vessels should stay, although there have been delays in exports as a result of poor planning and the operation of internal transportation. "

  He also explained that "have been incorporated into the analysis of economic effects, delays in removing air cargo, accounting for unforeseen expenses and show that in some cases it has been unnecessarily used this mode of transport more expensive than sea freight ".

  Finally, the Minister said: "We continue to work on perfecting the mechanisms in place to control these economic damage to the country and the adoption of appropriate measures to avoid and counteract them."

  GENERAL MANAGEMENT PLAN URBAN CITY OF SANTIAGO DE CUBA

The Cabinet also approved the General Urban Management Plan of the city of Santiago de Cuba. As explained Samuel Rodiles Planas, president of the Institute of Physical Planning (IPF), "The impact of Hurricane Sandy in this city brought a new look to your system given by deep changes in habitat, green areas, public spaces, services and technical infrastructure. "

  As stated general objectives: to match the destination and land use, better utilization and proper location of, considering the environmental implications; develop a balanced territorial infrastructure that improves the integration, performance and accessibility in line with economic, social and environmental development of the locality; protect and rehabilitate the built and cultural heritage, natural and public spaces, new buildings and integrated architecture as a whole; and eradicate precarious housing developments and achieve discipline and control in the urban planning of the city.

  Similarly, Rodiles Planas noted that for work performed fundamental aspects of the city were taken into account the fact that "more than 70% of its buildings are susceptible to damage from strong quakes and floods as a consequence of meteorological events extremes may affect multiple areas. "

  "The housing stock, with 116,881 homes, was very soon deteriorated Hurricane Sandy. In this sense, the strategy of housing development designed based on the progressive and comprehensively habitat of city transformation, housing and associated services. the priorities have you set the damages caused by this hurricane and works in rooming houses, neighborhoods and unhealthy spots, "he said.

  To carry out the implementation of the General Urban Management Plan defined three phases: short, medium and long term, spanning through 2025.

  Similarly, lifting violations in urban planning was developed, and the government has an integral In Plan to Counter illegalities that includes a system of periodic checkup by the highest authorities of the province and the IPF.

  Finally, Rodiles Planas said that "the implementation of the General Plan of Urban Planning of the City of Santiago de Cuba, will provide a qualitative and quantitative leap to their development."

  In this regard, Lazaro Exposito Canto, First Secretary of the Provincial Party Committee in Santiago de Cuba, recalled that two years after the cyclone this Plan is approved. Since then, the province has he given solution to 56% of the damage to the home and 83% of the damages in state facilities reported.

  He also said that faced with rigor illegal construction; the San Pedrito transformed; and is working hard on improving the image of Santiago de Cuba on the occasion of its 500th anniversary, on July 25, 2015.