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Caribbean & Central America - January 2011 (ISSN 1741-4458)

CUBA: Reality bites

On 4 January Cuba began the process of laying off a planned 25% of the public sector labour force, or some 1.3m workers, over the coming three years. Around half a million workers are to go in the next six months, with little in the way of state support for the vast majority. The Communist government of President Raúl Castro envisages the nascent private sector absorbing these workers - an ambitious and possibly unrealistic plan given the onerous bureaucracy and tax regime imposed on these new businesses.

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