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The Cuban government proposed this Thursday a significant decentralization of powers to municipalities, granting them the authority to export and import, acquire and retain foreign currency, manage foreign direct investment, and take on greater responsibilities in local economic, financial, and administrative planning.
The measure is part of a package of 176 economic and social transformations presented by Prime Minister Manuel Marrero Cruz during the Third Extraordinary Session of the National Assembly of People's Power (ANPP).
The proposals, grouped into 23 axes, aim to restructure the Cuban economic and social model amid the economic crisis the country is experiencing. Among them, Axis 5: Transformations in Municipal Autonomy includes the transfer of key competencies from the central level to local governments.
According to what Marrero Cruz stated, the municipalities would take on a decentralized approach to strategic planning, land and urban management, the management of food sovereignty and food and nutritional security, as well as community services.
The proposal also significantly expands the economic powers of the territories.
Municipalities would have the capacity to promote local economic development through the diversification of their productive fabric, incorporating both state and non-state actors, including Cubans residing both inside and outside the country.
They could also develop local production systems and take on responsibilities related to foreign trade.
Among the most significant measures is the possibility for municipalities to directly export and import, as well as to generate and retain foreign currencies to finance both current expenses and capital investments.
It also includes the authority to promote and manage foreign direct investment projects in their respective territories.
The decentralization process would also encompass the administrative and human resource management at the municipal level, as well as local budgetary, financial, and tax management, granting territorial authorities a broader decision-making scope over their resources and development policies.
The municipal transformations are complemented by other measures included in the document presented to the ANPP.
Among them, the ability for provincial governments and municipal administration councils to create, merge, dissolve, or liquidate local state-owned enterprises, as well as to carry out other organizational changes within the state business system, stands out.
Furthermore, in the agricultural sector, it is proposed to decentralize the use of the Agricultural Development Fund to municipalities, tailoring its application to the characteristics of each region and linking it to projects aimed at increasing food production.
During the parliamentary debate, several lawmakers supported the expansion of territorial powers, although they emphasized the need to strengthen the management capabilities of municipal governments to take on new responsibilities.
It was also warned about the risks associated with decentralization without adequate institutional preparation.
Marrero Cruz acknowledged that one of the challenges of the process will be precisely to transfer responsibilities to the municipalities without there being insufficient capacities to exercise them.
Nonetheless, he defended the proposals as part of a strategy aimed at reactivating the economy, correcting distortions, and advancing the modernization of the Cuban economic model.
According to the Government, the economic and social transformations will be carried out gradually and will require the modification or repeal of over a hundred existing legal provisions, in addition to the approval of new laws and decrees to support their implementation.
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