Cubans Set for Big Change: Right to Buy Homes [View All]

[flamingdem]

This will change Cuba very much and is a huge part of the unraveling of the embargo, imo.

And then there is the role of Cuban emigrants. While the plan seems to prohibit foreign ownership, Cuban-Americans could take advantage of Obama administration rules letting them send as much money as they like to relatives on the island, fueling purchases and giving them a stake in Cuba’s economic success. “That is politically an extremely powerful development,” Mr. Peters said, arguing that it could spur policy changes by both nations.

http://www.nytimes.com/2011/08/03/world/americas/03cuba.html?_r=1&pagewanted=all

excerpt:

But when Cuba legalizes buying and selling by the end of the year — as the government promised again this week — José and many others expect a cascade of changes: higher prices, mass relocation, property taxes and a flood of money from Cubans in the United States and around the world.

“There’s going to be huge demand,” said José, 36, who declined to give his last name, stepping away from the crowd and keeping an eye out for eavesdroppers. “It’s been prohibited for so long.”

Private property is the nucleus of capitalism, of course, so the plan to legitimize it here in a country of slogans like “socialism or death” strikes many Cubans as jaw-dropping. Indeed, most people expect onerous regulations and already, the plan outlined by the state media would suppress the market by limiting Cubans to one home or apartment and requiring full-time residency.

Yet even with some state control, experts say, property sales could transform Cuba more than any of the economic reforms announced by President Raúl Castro’s government, some of which were outlined in the National Assembly on Monday. Compared with the changes already passed (more self-employment and cell-phone ownership), or proposed (car sales and looser emigration rules), “nothing is as big as this,” said Philip Peters, an analyst with the Lexington Institute.

The opportunities for profits and loans would be far larger than what Cuba’s small businesses offer, experts say, potentially creating the disparities of wealth that have accompanied property ownership in places like Eastern Europe and China.

Havana in particular may be in for a move back in time, to when it was a more stratified city. “There will be a huge rearrangement,” said Mario Coyula, Havana’s director of urbanism and architecture in the 1970s and ’80s. “Gentrification will happen.”